A casino to be built in New York City by a subsidiary of the Malaysian conglomerate Genting could contribute to a further decline in Atlantic City’s casino revenues says Union Gaming Research.
Genting New York LLC has received approval to build a casino stocked with more than 4,500 video lottery terminals at Aqueduct Racetrack in the NYC borough of Queens, only 120 miles from Atlantic City.
According to the New York Racing Association, the operator of equestrian events at Aqueduct, Genting thinks it could generate US$650 million in gross gaming revenues annually from its casino licence, which will run for 30 years.
Genting has already paid New York State a permit fee of US$380 million–26% more than the state’s standard non-refundable gaming licence says Union Gaming Research.
Genting will spend a further US$1.3 billion to build the property, which will be known as Resorts World New York, adds the research house. Union Gaming points out however that the project could be delayed by litigation from other unsuccessful bidders for the Aqueduct site.
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