Resorts World NYC Expands with Additional Slots and Hotel Development

Resorts World New York City is advancing its ambitious expansion plans after obtaining a downstate New York commercial casino license. In a significant step forward, the casino has added 1,400 new slot machines, raising the total to approximately 3,900. This rapid expansion was part of their strategic plan to gain favor with state regulators. Following its transformation from a video lottery terminal (VLT) venue to a full-fledged commercial casino in April, Resorts World is progressing swiftly compared to its competitors, Bally's Bronx and Metropolitan Park, which are expected to open no earlier than 2030.

Second Phase of Expansion Underway

On Wednesday, Resorts World NYC held a groundbreaking ceremony for the second phase of its $5.5 billion expansion. This phase is set to include a 400-room Hyatt hotel tower and a 1,200-room Crockfords hotel, alongside a 7,000-seat entertainment venue. Additionally, plans feature a sports and media complex devoted to NBA legend Kenny "The Jet" Smith, a parking garage, and a new central plaza. The final aim is to host 6,000 slots and 800 table games, though the application presented to the licensing board projected 4,600 slots and 530 tables. The full expansion is expected to be completed by 2031.

Resolving Tax Disputes

Resorts World NYC enjoys a monopoly, offering both table games and Class III slots in the New York City area for at least four years. However, this comes with a heavy tax cost: a 56% rate on slots and 30% on tables, which is higher than those of its competitors. Recently, the New York State Gaming Commission (NYSGC) and Resorts World resolved a significant tax dispute. The NYSGC had expected Resorts World to cover payments to support the state's horse racing industry independently until 2030. A bill passed on June 5 allowed these payments to be distributed directly by the commission, easing the financial burden on Resorts World.

Promising Financial Performance

Since relaunching 11 weeks ago, Resorts World NYC has reported gross gaming revenues of $317 million, projecting an annual figure surpassing $1.5 billion. The casino's slot machines have achieved an average daily win per unit of $1,214, outperforming even Wynn Las Vegas’s $849 daily win. With 3,900 machines now operational, this impressive performance showcases the casino's potential in the competitive New York market.

Tax Rate Discrepancies Under Discussion

While the current 30% tax rate on tables remains a point of contention, Robert DeSalvio, President of Genting’s New York operations, anticipates it might align with lower rates once the other two casinos commence operations. However, the NYSGC has indicated that tax rates were a deciding factor in licensing approvals.

With the tax dispute settled, Resorts World looks forward to maintaining its status as New York's largest taxpayer, as affirmed by spokesperson Stefan Friedman.

Future Developments

Resorts World's pioneering approach in New York’s gaming industry underscores its strategic vision. As the casino advances in its multifaceted expansion, it is set to redefine the local gaming landscape.