How New York Casino Licenses are Shaping the Future for Genting and MGM
How NY Casino Licenses Could Bode Well for Genting and MGM
Recent communications from the New York Gaming Facility Location Board (NYGFLB) have opened the door to optimism for Genting and MGM Resorts International as they eye the three upcoming downstate casino licenses. This announcement could indicate a competitive edge for these established venues.
Notably, Genting’s Resorts World New York in Queens and MGM’s Empire City Casino in Yonkers are currently operational as slot-only facilities paired with racetracks. Their established presence in the gaming market makes them strong contenders to secure two out of the three downstate permits, leaving competing bids with a high hill to climb.
Effective Market Entry Strategy
In its latest round of responses to bidders, the NYGFLB highlighted that while “speed to market” is essential, it is just one of various considerations in the awarding process. This implies that state officials are keen on getting these gaming venues operational soon after licenses are distributed.
With bids expected to be submitted to the board by June 2025, the overall decision on license allocations will rest with the New York State Gaming Commission (NYSGC), which will have the final authority over approvals.
Capital Commitments by Genting and MGM
Both Genting and MGM have made substantial promises regarding capital investments essential for operations. The NYGFLB mandates that all applicants demonstrate a minimum investment of $500 million before commercial gaming can commence. Genting has pledged $5 billion for transforming its Queens venue into a full-scale Las Vegas-style casino, while MGM’s proposed enhancements at Empire City are expected to generate significant economic activity and job opportunities.
Projected Economic Impact
Though currently operating without table games, both properties stand out as some of the highest-grossing regional casinos in the U.S. If permitted to introduce traditional casino gaming, the surge in revenue is anticipated to lead to a boost in tax receipts for the state as well.
Tax Framework for New Casinos
Recent clarifications provided by the NYGFLB also gave potential operators an overview of the tax responsibilities they can expect. A 25% tax on gross gaming revenue (GGR) from slot machines and a 10% tax on table games will be effective when the new venues open.
Additionally, a one-time application fee of $1 million will be required from each applicant. Groups applying together can decide which member will undertake this fee. Beyond that, all selected entities will also be subject to a $500 million licensing fee, a figure that regulators might adjust based on gaming market dynamics.
Conclusion
The latest developments from the NYGFLB position Genting and MGM favorably in the highly competitive landscape for New York’s downstate casino licenses. Their existing operational status and commitment to significant investments may likely place them ahead in securing the permits, further influencing the state’s gaming economy.
