Subsidiaries of Genting Malaysia are among three applicants selected by New York’s Gaming Facility Location Board (GFLB) on Monday for a full commercial casino license in downtown New York.
The Board ultimately chose to approve all three remaining applicants with Genting New York and its Resorts World New York City joined by Bally’s Corp in the Bronx and the partnership between New York Mets owner Steve Cohen and Hard Rock International in Metropolitan Park.
In its selection document, the GFLB explained, “After a comprehensive review, the Board determined that awarding three licenses would best serve the State’s long-term economic, fiscal and community objectives. That determination was based solely on the criteria specified by the New York State Legislature.”
It added that projections show “both robust revenues and consistent year-over-year growth after the market stabilizes, demonstrating that the underserved demand for gaming in the downstate region can more than absorb the supply.”
Assuming licensing at each applicants’ proposed tax rates, incremental gaming tax revenue is projected to reach approximately US$1 billion annually by 2036, totaling around US$7 billion in incremental tax revenue from 2027 to 2036, plus US$1.5 billion in licensing fees.
Had the Board selected two applicants for a commercial casino license instead of three, projections suggest New York would receive US$1.1 billion to US$3.7 billion less incremental gaming tax revenue from 2027 to 2036.
In a note, Nomura analysts described the selection of Genting Malaysia as a positive development for the company. Resorts World New York City, currently an EGM-only property in Queens, is likely to be granted a 30-year license to operate as a full commercial casino with gaming tables because its bid included a higher US$600 million license fee proposal than the minimum US$500 million.
The analysts also noted that, while Genting proposed industry-leading tax rates of 56% on slots and 30% on tables, it had also proposed that if a nearby facility was granted a license at lower tax rates then Genting should also be granted a similarly lower tax rate to create a level playing field. The Hard Rock bid proposed tax rates of 25% on slots and 10% on tables.
Most importantly, the first phase of Resorts World New York City’s expansion, including the addition of gaming tables, is slated for a June 2026 opening – four years earlier than either Bally’s or Hard Rock which are developing from scratch. Some facilities could even be ready as early as March.
The GFLB did note, however that “each applicant’s proposed development timeline is ambitious. Resorts World New York City’s projected March 2026 opening may underestimate regulatory and construction complexities, and Bally’s Bronx and Hard Rock Metropolitan Park’s mid-2030 timelines may be optimistic given project scale and urban constraints. Continued and diligent oversight and coordination will be necessary to ensure timely delivery.”
Nomura added that Genting Malaysia’s US$7.5 billion capex figure was high, although US$2 billion of this is community investments over the whole 30-year term and another US$1 billion in capex has already been invested.
“While US$4.5 billion is also high, importantly, Genting Malaysia’s phased approach to development means that Phase 1, which includes 4,000 slots and 250 table games deployment by July 2026, should require a minimal incremental capex as it utilizes existing hotel space,” said analysts Tushar Mohata and Alpa Aggarwal.
“Overall, we think that Genting Malaysia’s phased development approach should better its capital management and help to mitigate risks, and there is a clear runway for generating revenues for the first few years before any competitive headwinds emerge from new greenfield casinos.”
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