Resorts World New York is allegedly requesting that state authorities reevaluate its promise to pay greater taxes in the event that it is granted one of three downstate casino licenses.
Bloomberg reports, citing unnamed sources with knowledge of the situation, that the Genting-run, slots-only venue in Queens is ready to ask state regulators to either raise the tax rates imposed on other winners of the downstate casino permits or reduce the levies that would be imposed on that venue.
Genting recently offered what some analysts described as "aggressive" terms, offering to pay a larger licensing fee and additional taxes, possibly in an effort to win over New York regulators. In addition to taxes of 56% and 30% on slots and table games, respectively, the business recently proposed a $600 million permitting charge, which is more than the $500 million mandated by the state. These would be among the highest gaming levies in the United States.
The gaming industry was taken aback last month when MGM Resorts International (NYSE: MGM) decided to withdraw from the New York City casino competition, leaving just three bids for three licenses.Similar to Resorts World, it was generally accepted that MGM's Empire City Casino in Yonkers would almost certainly be granted a permit.
Bally's (Bronx), Resorts World New York, and the $8 billion Metropolitan Park project in Queens make up the current group of candidates. Although Genting has stated that it is prepared to make greater investments in the community and generate more employment than its rivals, it is unclear why the Malaysian business wants the state to reevaluate their tax plan.
According to the company, Resorts World New York would pay $18.8 billion in taxes in its first ten years as a Las Vegas-style casino, with gross gaming revenue (GGR) possibly approaching $4 billion annually, potentially quadrupling the high mark anticipated of Metropolitan Park, which would have a casino run by Hard Rock International.
Resorts World New York has made additional substantial financial commitments, like as a pledge to invest $5.5 billion in venue conversion, in addition to the higher taxes, the outcome of which is now unknown. An additional $2 billion in community benefits is not included in that amount.
The Queens casino might give New York's Mass Transit Authority (MTA) $2.5 billion over four years, according to an estimate released earlier this month. This is significantly more than the $1.8 billion the MTA was anticipating from the downstate gaming establishments.
The winners of the three bids are anticipated to be announced by the New York Gaming Facility Location Board as early as December 1. Since the board is not required to grant all three permits, there is some conjecture that it will not.
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