The allure of the New York City casino market is clear, but the three winning bids already have significant challenges ahead in the Empire State.
Foundation Laid for New York City Casino Market
The groundwork for the New York City casino market was established last December when Resorts World New York City, Bally’s Bronx, and Hard Rock Metropolitan Park received full commercial licenses. Expectations soared, but about six months later, the realities of operating in New York may be becoming apparent.
Resorts World Leads the Way
Resorts World was the first to launch its casino expansion on April 28, gaining a four-year first-mover advantage while the other properties aim for 2030 openings. However, this exclusivity carries substantial pressure for immediate results.
Initial performance data from the first two weeks of operation revealed a decline in gross gaming revenue, dropping from $27.2 million in the first week to $26.7 million in the second. Despite an increase in slot handle by about $25 million, both slot GGR and win per unit per day showed downward trends.
Table Games Monopoly and Revenue Comparisons
As the sole NYC area casino featuring table games, Resorts World anticipates a profitable monopoly. Over its first 13 days, its table games hold percentage was approximately 13.75%. While GGR saw minimal growth despite an additional $3 million in handle, it remains lower than the 15% table hold reported by 54 casinos on the Las Vegas Strip.
Tax Rate Discrepancies
Two weeks of data offer limited insights into the market’s potential, yet Resorts World has embraced scrutiny by significantly out-bidding competitors during the licensing process. Resorts proposed tax rates of 56% on slots and 30% on tables, while Bally’s and Hard Rock suggested notably lower rates. However, it’s unclear what rates Resorts World is actually paying under its new license, with conflicting reports suggesting a tax rate of 63% on slots.
Project Delays for Metropolitan Park
Meanwhile, the $8 billion Metropolitan Park project in Queens is facing delays, as its construction timeline is reportedly months behind schedule. Initial foundation testing, originally set to commence in January, has yet to begin, pushing back the projected start of actual construction to a June 2030 opening, though no specific date has been confirmed by project representatives.
Bally’s Progress and Financials
Bally’s in the Bronx is still in the preliminary stages, with construction anticipated to start approximately eight to nine months post-license acquisition. The company has expressed excitement about the project, which is expected to open in June 2030 and feature a gaming floor, a luxury hotel, and a golf course. However, Bally’s reported a substantial net loss of $161 million for the last quarter, attributed to various pressures including potential closures and investments in other operations.
