In December, Genting, Bally’s Corp and Hard Rock International became intertwined when all three secured downstate New York casino licences, which have the potential to propel the three operators to new heights in the US market.
Genting’s Resorts World NYC made the first big splash by opening the first phase of its casino expansion last week, and while Bally’s and Hard Rock have multiple years to go on their New York projects, both companies recently hit significant construction milestones in Chicago and Las Vegas, respectively.
For Resorts World, the ability to utilise existing, unused space was key to launching just five months after licensure. The former video lottery facility will have a multi-year head start in New York with Bally’s and Hard Rock projecting single-phase 2030 openings, if timelines hold.
Resorts World will continue to expand during that time, but will also pay higher tax rates for that monopoly window. The casino pays 63% on slot revenue and 30% on tables, which will fall to 25% and 10%, the rates established for the other two winners, once they’re up and running. Despite the steep taxes, the opportunity is significant – CBRE estimates the downstate market could generate up to $5.6 billion annually post-2031 when all three are operational.
At the launch party on 28 April, Genting’s executive chairman Lim Kok Thay threw the ceremonial first dice roll. Alongside him was renowned musician and NYC native Nas, who served as the face of the casino’s licence bid. Notably, Nas’ contemporary and former rival Jay-Z was the sponsor of Caesars Times Square, which was denied in the committee phase.
“This is just the beginning. So this is about to expand and do things that everyone’s going to be excited about. So Queens is where it’s at,” Nas told CNBC.
Hard Rock tops off Strip guitar tower
Hard Rock’s $8 billion Metropolitan Park development surrounding Citi Field (also in Queens) is the priciest and grandest of the New York licencees. In the interim, the company is making progress on its Las Vegas Strip resort at the site of the former Mirage.
A topping-off ceremony was held on 2 May for its famous guitar-shaped hotel tower, which will include 650 suites upon completion and add a new dimension to the city skyline. Hard Rock purchased the Mirage for $1 billion from MGM in late 2022 and the renovations are expected to cost between $4 billion and $5 billion.
“This event is in honour of our construction partners at PENTA and McCarthy and the thousands of hardworking men and women on our construction team,” said Hard Rock Chairman Jim Allen, per CDC Gaming.
Similar to Resorts World in New York, Hard Rock is incentivised to launch as quickly as possible on the Strip. Originally, the company hoped to keep sections of the casino open to help offset costs, but that was eventually deemed unfeasible and the property closed in July 2024. Hard Rock’s current target to re-launch the property and its 3,000-plus rooms is late 2027.
That is significant in that it could be the last new Strip development for several years. The two most recent Strip openings – Fontainebleau and Resorts World Las Vegas – struggled with construction delays and rising costs, and both are sill finding their footing post-launch. Hard Rock is moving swiftly on the Strip and, given economic and geopolitical uncertainty, any new competing developments could be far away.
Bally’s looks to secure Chicago casino extension
With Hard Rock to the west and Resorts World to the east, Bally’s is closing in on its $1.8 billion midwest flagship casino in Chicago. A topping-off ceremony for the property was held 30 April with a litany of officials in attendance, including Bally’s Chairman Soo Kim and Chicago Mayor Brandon Johnson.
“This is a game changer. There’s nothing like this in the Chicagoland area,” Kim told the Chicago Sun-Times. “There’s nothing like this for a long ways.”
Winning the Windy City’s sole casino licence was a major milestone for Bally’s, but development has been fraught with challenges. Construction has been delayed multiple times, including for design changes, debris overflow and unapproved contractors with suspected Mob ties. The operator also scrambled to secure more than $900 million in financing from Gaming and Leisure Properties.
Now, Bally’s is at the mercy of state officials. The company is facing a 9 September deadline to open the permanent property, as its temporary casino that opened on 9 September 2023 can only operate for three years. That deadline will not be met; Kim confirmed so last week, projecting a Q1 2027 opening instead.
In order to keep its temporary casino open until the permanent casino’s launch, Bally’s needs an extension, in the form of HB 4437. While the bill would grant Bally’s up to 18 more months to operate its temporary casino, the clock is ticking. Illinois’ legislative session is set to adjourn on 31 May and the bill has sat with the House Rules Committee since 27 March. The committee has no scheduled meetings as of writing.
“We’re not concerned,” Kim told the Sun-Times. “I think everyone knows it makes sense to do, so we’re confident that we’ll have good outcomes in Springfield.”
Jess Marquez
Jess has covered the global gaming industry since 2022. A native of Reno, Nevada, he’d like to note that it’s Ne-va-da, not Ne-VAH-da.
Original article: https://igamingbusiness.com/casino-games/nyc-casino-winners-make-progress-other-projects/
