Bally’s Bronx, Hard Rock Metropolitan Park and Resorts World NYC all move forward
After a comprehensive review, the New York Gaming Facility Location Board has determined that awarding three licenses would best serve the State’s long-term economic, fiscal, and community objectives.
The Board recommends Bally’s Corporation, Queens Future, Hard Rock Metropolitan Park and Genting New York, Resorts World New York City for commercial casino licensure consideration by the Commission.
The New York Gaming Facility Location Board said: “The Applicants that have been selected to apply to the Commission for a gaming facility license have an important charge at hand. As throughout this process, they are expected to act and perform with the utmost integrity, hold true to the commitments made to the community and be accountable to the State and its residents and taxpayers. The Commission has already begun the licensing review process and intends to move promptly to issue licenses so that construction can begin, jobs can be created, and revenues can be collected. The Board congratulates the successful Applicants and wishes them the best success in the Commission’s licensing process and on their proposed gaming facility developments.”
“The downstate gaming market is among the nation’s strongest, given the area’s dense population, high income levels, and tourism volume. The large local population bas residing within a two-hour drive of the proposed casino sites is expected to anchor long term visitation, supplemented by domestic and international tourism. Each proposal is positioned to compete for premium gaming customers through brand strength, amenities, and facility design.
“The Board’s consultants project that the total downstate casino market – comprised of these three casinos – could reach approximately $5.5bn in gross gaming revenue in 2033, the projected market stabilization year. The Applicants submitted various market revenue projections based on their internal analyses, illustrating significant differences in their estimated market size and contributions. These projections ranged from very conservative to highly optimistic. The Board consultants’ projection falls in between the estimates provided by Applicants in their respective Supplemental Return Date Materials.”
“The forecast of the total market Bally’s Bronx submitted was well below the consultants’ projection, Hard Rock Metropolitan Park’s forecast of the total market was closely aligned with the projection, while Resorts World New York City’s projected revenue significantly exceeded the consultants’ estimate, primarily due to assumptions related to tourism and high-end play.
“The Board’s consultants took a generally cautious approach, reflected in their projections. This conservative perspective was intended to ensure responsible budgeting and long-term revenue forecasting by the State. Importantly, the 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 and stability in the existing gaming facility landscape,4 incremental gaming tax revenue is projected to reach approximately $1 billion annually by 2036, totaling approximately $7bn in incremental tax revenue from 2027 to 2036, plus $1.5 billion in licensing fees. If the Board selected two applicants for a commercial casino license instead of three, the Board consultants project the State would receive $1.1bn to $3.7bn less incremental gaming tax revenue from 2027 to 2036. Additionally, a failure to award all three licenses would result in $500 million less in license revenue.
It added: “Bally’s Bronx is projected to serve clientele from the upstate and tri-state areas within two hours of the proposed facility and will offer a different experience from the other Applicants’ facilities given the integration of the gaming facility and the golf course. That differentiation, combined with the strength of the New York market, convinced the Board that the Bally’s proposal was a strong complement to the other proposed facilities, and would bring significant tax revenues to New York State and City. Bally’s ambitious goals about hiring local residents, procuring products and services from local Bronx merchants, and hiring and developing a diverse workforce, combined with its commitment to improving the traffic and transportation infrastructure, as well as Ferry Point Park; its commitment of a Community Benefit Fund; and its efforts to make the facility sustainable and energy and water efficient were all significant factors in the Board’s decision to recommend Bally’s for commercial casino licensure consideration by the Commission.”
In terms of Hard Rock Metropilitan Park, it explained: “HRMP has proposed an ambitious entertainment destination that promises to bring many thousands of well-paying construction and permanent jobs to Queens. It has committed to working with the Queens community to recruit and train local residents to fill the majority of those jobs. The project will transform an area already rich in entertainment options into a more coherent and accessible destination for people wanting to attend sporting events, enjoy local food and beverage options, linger in an inviting outdoor park, and take in the events or gamble at the casino. The project also provides job opportunities and access to world class amenities to the residents of the housing already built and planned nearby. HRMP’s planned efforts to hire local residents, procure products and services from local Queens merchants, and develop a diverse workforce while prioritizing hiring the unemployed or underemployed all were important to the Board’s decision.
“HRMP’s significant investments in improving the traffic and transit infrastructure and facilities, making the area safer for pedestrians and bikers, providing a large and inviting multi-use outdoor space, contributing to local social services and a community impact fund, and its commitment to make the facility sustainable, resilient, and energy – and water – efficient also were significant factors in the Board’s decision to recommend HRMP for commercial casino licensure consideration by the Commission. Finally, HRMP’s huge capital investments, experience in building and operating well-regarded facilities, expected revenue, and tax payments to the State and City were critical factors weighing in favor of our recommendation.”
Resorts World’s $3.3 bn investment would transition the current video lottery terminal facility into a full-service casino, and expand the project with a new Crockford’s hotel, additional parking facilities and a multi-purpose arena.
The Board said: “The Board was disappointed that only one per cent of the investment is projected to benefit firms in Queens – that extremely low rate should be improved. The Board has concerns that the project’s financing plan relies heavily on future operating cash flow and future debt financing to fund a substantial portion of development costs. Resorts World currently has $925 million in committed debt financing, contingent upon the issuance of a casino license, to fund the license fee and initial capital expenditures, but intends to raise additional debt and rely on future operating cash flow to complete the project.”
“Resorts World is leveraging several advantages it brings as a result of the existing Video Lottery gaming facility. It can convert its facility to a casino quickly and thus provide tax revenue to the state and local governments as early as 2026, at least three years before the other Applicants will be able to begin operations. That speed-to market, and the fact that Resorts World offered to pay the highest tax rate of the Applicants, were determinative factors in the Board’s decision to recommend Resorts World to the Commission for consideration of a license. The Board is concerned that the Applicant has indicated an intention to seek to have the tax rate lowered to that offered by other Applicants. The integrity of the bidding process requires that the bidder must be committed to its bid, and the Board urges the Commission and elected officials at the state and local level to resist any back-tracking on the tax rate contained in the bid, relied upon by the Board, and undoubtedly a factor in the Community Advisory Committee’s decision to approve the application.”
“The Board considered the Applicant’s commitments to creating quality jobs; recruiting, training, and developing a diverse workforce; improving the transit and traffic infrastructure on the casino’s campus; and building more open and park space into its campus all to be satisfactory. The Board urges Resorts World to be more aggressive and concrete about local hiring and benefits for local businesses. While its speed-to market is a significant advantage, the Board is concerned that opening the casino while major construction is underway could compromise the quality of the experience for visitors and urges the Commission to use the license agreement to ensure acceptable quality.”
Carlo A. Scissura, Esq., President and CEO of the New York Building Congress, said: “The New York Building Congress congratulates Bally’s Bronx, Queens Future – Hard Rock Metropolitan Park, and Resorts World New York City on being recommended for approval by the New York Gaming Facility Location Board. These casino developments represent major, once-in-a-generation investments in New York’s future, creating thousands of good-paying, union jobs, generating billions in economic activity, and delivering new revenue streams that will support essential public services across our city and state.
“Each of the winning proposals has demonstrated a strong commitment to building world-class facilities, strengthening surrounding communities, and driving long-term economic development. Today’s recommendations mark a milestone more than a decade in the making, and we commend the state for its careful review and commitment to a fair and transparent process.
“We are excited to see our members help bring these transformative projects to life if approved by the Gaming Commission later this month. Congratulations to the winning teams — we look forward to working together to build a stronger, more vibrant, and more prosperous New York.”
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Bally’s Bronx, Hard Rock Metropolitan Park and Resorts World NYC all move forward After a comprehensive review, the New York Gaming Facility Location Board has determined that awarding three licenses would best serve the State’s long-term economic, fiscal, and community objectives. The Board recommends Bally’s Corporation, Queens Future, Hard Rock Metropolitan Park and Genting New…
The post New York Gaming Facility Location Board green lights the three winning NYC casino bids for licensure consideration appeared first on G3 Newswire.