The foundation of the New York City casino market was laid last December when Resorts World New York City, Bally’s Bronx and Hard Rock Metropolitan Park were granted full commercial licences. Forecasts and expectations were stratospheric, but about six months later, the difficulties of operating in the Big Apple may be setting in.
Resorts World was the first to open its doors to the downstate market by launching the first phase of its casino expansion 28 April. Its first-mover advantage will last four full years, as the other properties are projecting 2030 openings if timelines hold. But that exclusivity brings immense pressure to perform right away.
Two weeks of performance data have been published for Resorts World, although its first week was six days instead of seven. Despite the extra day, the casino’s gross gaming revenue declined week-over-week from $27.2 million in week one to $26.7 million in week two. Slot handle was approximately $25 million higher in the second week but its slot GGR and win per unit per day both declined.
Resorts World is the only NYC-area casino with table games, which is expected to be a lucrative monopoly. Through its first 13 days, Resorts World’s table games hold percentage was about 13.75%; GGR increased nominally despite an additional $3 million in handle the second week.
For comparison, the 54 casinos on the Las Vegas Strip posted a table hold percentage of 15% for the month of March, including 20% for baccarat. Analysts have predicted that NYC could become the second-biggest US casino market behind the Strip post-2030.
Discrepancy about Resort World tax rates?
Two weeks is hardly representative of what the market may become, but Resorts World welcomed the heightened scrutiny by significantly out-bidding its competitors.
In the bidding process, Resorts World pitched tax rates of 56% on slot revenue and 30% on tables. Comparatively, Bally’s pitched rates of 30% and 10% and Metropolitan Park pitched 25% and 10%. In addition to the higher taxes, its proposed licence fee of $600 million was $100 million higher than the $500 million minimum, which is what it ultimately paid.
iGB has been unable to verify what tax rates Resorts World is paying under the new commercial licence. The new licence document available online does not mention tax rates. Resorts World told CNBC in April it was paying 63% on slots, and that report cited a request in the casino’s bid proposal that the higher rates be lowered to match the other two properties once they open.
New York’s Gaming Facility Location Board, the body tasked with reviewing the proposals for the New York State Gaming Commission, did not accept that condition for lowering the rates. Instead, the board recommended that Resorts World be held to “the tax rates it bid, not on the lower rates it now would like to apply”. Its analysis and subsequent recommendation for licensure were based on those higher rates.
The NYSGC did not respond to requests for clarification on whether it accepted that request from Resorts World or what the finalised rates are for the three casinos.
Met Park facing delays but backing is solid
Elsewhere in Queens, it looks as though the $8 billion Metropolitan Park has already run into snags. According to a report from the Queens Eagle, the project is months behind schedule based on the construction timeline submitted to regulators during bidding.
Foundation testing, also known as test piling, was slated to begin on 1 January but has yet to commence. As a result, the actual construction that was supposed to start on 1 April is also delayed. The timeline projects a June 2030 opening, but that month was not mentioned by project spokesman Karl Rickett.
“As one of the largest, multi-year construction projects in the city, the team has completed significant pre-construction work and is on track to open in 2030,” Rickett told the Eagle. “Throughout this process we have kept the Queens community and Mets fans at the centre of every decision to minimise impact every step of the way.”
Rickett did not explain the delays for the project, which is the most ambitious of the three licensees in terms of scope and price. The GFLB called the project’s timeline “optimistic” in its selection, given “project scale and urban constraints”. However, developers Hard Rock International have a “strong development track record” and “robust co-owner financial support”, the board added.
This last point is in reference to Steve Cohen, Mets owner and co-owner of Metropolitan Park. Cohen is one of the richest men in the US and therefore provides ample means to finance any hiccups in the development process. Hard Rock is no slouch itself, and is moving along nicely with its resort on the Las Vegas Strip. That said, delays to its soon-to-be New York flagship would be unfavourable for a single-phase opening, especially as Resorts World matures.
Bally’s ‘thrilled to move forward’ in New York
In the Bronx, Bally’s is also still doing preliminary work, though its timeline materials are mostly redacted. The only estimates that are publicly available say that “construction will commence approximately eight to nine months after” receiving the licence, which would be August or September. Its opening target is June 2030, the same as Metropolitan Park.
In the company’s Q1 results published this week, Bally’s CEO Robeson Reeves said his team is “thrilled to move forward with Bally’s Bronx”. During the quarter, Bally’s paid its $500 million licence fee and the $115 million kicker to the Trump Organization.
That fee was stipulated in the site’s purchase agreement between the two sides in 2023 in the event that the bid won a licence. In some respects, the boon to Trump was viewed as a controversial aspect of the project.
“Expected to open by 2030, Bally’s Bronx will be a world-class destination delivering broad community benefits,” Reeves said. “The three-million-square-foot facility will feature a premier gaming floor, a luxury 500-room hotel, a 2,000-seat event centre and an 18-hole golf course.”
Bally’s quarterly results
Bally’s revenue from its casino and resort segment increased 8% year-over-year to $380 million in Q1, while adjusted EBITDAR for the division saw a 1% bump to $96 million. Recent acquisitions of Intralot and Queen Casino and Entertainment spurred Bally’s to big group revenue and EBITDAR gains, but the company posted a net loss of $161 million for the quarter with losses of $2.69 per share.
Analysts projected a net loss of $1.15 per share. The loss widened considerably from the year-ago quarter when Bally’s reported a net loss of $51 million.
In addition to New York, there are several developments pressuring Bally’s finances. These include the potential closure of its temporary Chicago casino, its investment into Australian operator Star Entertainment and its potential purchase of UK bookmaker Evoke.
During Q1, Bally’s repaid a $1.47 billion term loan due in 2028, but also entered into a new $1.1 billion facility due 2031.
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/property-development/new-york-casino-roundup-may-2026/
