Resorts World NYC adds 1,400 slots, breaks ground on second expansion phase

Less than a year after securing a coveted downstate New York commercial casino licence, Resorts World NYC is wasting no time in its growth plans, as the casino significantly increased its slot count and broke ground on the next phase of its expansion plans this week.

On Tuesday, Resorts World announced it had added 1,400 more slots to its floor, bringing the new total to about 3,900. These machines were added to existing space on the property’s first floor, and this speed to market was a major selling point to state regulators in winning a licence. Resorts World transitioned from a VLT facility to a commercial casino in April — its two downstate competitors, Bally’s Bronx and Metropolitan Park, are single-phase builds set to open in 2030 at the earliest.

On Wednesday, the casino then hosted a groundbreaking for the second phase of its $5.5 billion overhaul, which is set to include:

• –A new 400-room Hyatt hotel tower and a 1,200-room Crockfords hotel
• –A 7,000-seat entertainment venue
• –A sports and media complex dedicated to NBA legend Kenny “The Jet” Smith
• –A new parking garage
• –A new “central plaza”

The final projections for the expanded property call for 6,000 slots, 800 tables and 2,000 rooms. That said, a state licensing board noted last year that the casino’s application only included renderings for 4,600 slots and 530 tables. 2029 is the target date for all the casino expansions and 2031 is when the project as a whole is expected to be completed.

“In less than 3 months after opening our doors as the first casino in New York City’s history, we are already moving towards a day when the city will have a first-of-its-kind integrated resort,” Lim Kok Thay, chairman of Resorts World parent Genting, said in a statement.

Racing tax issue resolved

With its downstate licence in tow, Resorts World is the first to bring both table games and Class III slots to the NYC region, and these monopolies will run for four years at least. This first-mover advantage is expensive, as Resorts World is paying the highest tax rates of the three downstate casinos: 56% on slots and 30% on tables, compared to 30%/10% for Bally’s Bronx and 25%/10% for Metropolitan Park.

Even with these outsized rates, Resorts World found itself in a significant tax dispute with the New York State Gaming Commission earlier this summer. Essentially, part of the three casinos’ tax revenue is earmarked to subsidise the state’s horse racing industry. The licencees were under the impression that those payments were included in their overall gaming taxes, whereas the NYSGC viewed the payments as a separate, additional cost.

Post-2030, those payments will be split among the three casinos, but until then Resorts World was technically obligated to shoulder them alone, to the tune of $150-plus million per year. This issue of interpretation were ultimately resolved in the casino’s favour on June 5, when a bill passed by the state legislature included language allowing the commission to distribute tax funds from the casinos directly to the New York Horse Racing Association.

In a statement, New York Governor Kathy Hochul acknowledged the “ongoing dispute” between Resorts World and the NYSGC and said the bill “is designed to ensure that the racing industry, which has long relied on similar funding, does not suffer adverse consequences”.

“With this issue resolved, we look forward to working in partnership with the state and continuing our standing as New York’s largest taxpayer,” Resorts World spokesman Stefan Friedman said in a statement.

Impressive early numbers

With the racing issue settled, Resorts World can go back to enjoying the spoils of being the only game in town. There have been 11 weeks of results posted since its commercial relaunch, and the numbers are impressive. The casino has posted total gross gaming revenue of $317 million during that span, which is on pace for well over $1.5 billion over a 12-month period.

Resorts World has posted an average slot win per unit per day of $1,214 — for comparison, Wynn Las Vegas, which is considered to be the pinnacle of the Las Vegas Strip, posted an average daily win per unit of $849 in Q1. Wynn has about 1,800 machines, compared to 2,500 for Resorts World under the previous figures and 3,900 as of now.

“I don’t think the industry’s ever seen that [slot win] number before,” Robert DeSalvio, president of Genting’s New York operations, said on this week’s GGB Podcast. He explained that the monthly slot revenues are already surpassing the casino’s highest-ever monthly VLT revenues, with significantly fewer machines.

With regard to the 30% table tax rate, DeSalvio conceded it was “a little bit high”. But he said Resorts World believes “that will come down” to match the other two casinos’ rates once they open. That too could be in dispute, as the NYSGC site does not differentiate the casino’s higher tax rates as being temporary or dependent on the others.

“The Gaming Facility Location Board recommended – and the Gaming Commission concurred – that applicants be considered and licensed based upon the tax rates each proposed,” the site reads.