Resorts World is sticking with its original tax rate proposal for a downstate casino license in New York despite reports of the gaming giant wanting to reconsider its terms.
The hospitality and gaming company reportedly wanted the New York State Gaming Facility Location Board to reconsider its casino license application that proposes the highest tax rate on slot machines and table games amongst bidders. Resorts World set the terms of its proposal and reportedly wanted to lower its tax rates, according to a report from Bloomberg. The company responded to the report by reiterating its commitment to New York’s gaming market and economy by keeping its original proposed tax rate on slot machines and tables games.
Resorts World’s proposal included a 56% tax rate on slot machines, one of the highest rates in the country, and a 30% rate on table games. Its also had a $600 million licensing fee, surpassing the state’s minimum $500 million fee for a downstate casino license.
“The downstate commercial casino process is a once-in-a-lifetime opportunity for the entire state to benefit from new revenue for mass transit and public education,” said a Resorts World spokesperson in a statement to SBC Americas. “We take pride in serving as the state’s largest taxpayer since 2011, having already sent nearly $5 billion to public education since our doors opened. The tax rates we have presented, at 56% on slots and 30% on tables, reflects our sense of responsibility to our properties across New York State, the greater industry and the public.”
Three bidders remain for downstate New York license
Resorts World is competing for a casino license with Bally’s Corporation and Hard Rock International, both of which came in with substantially lower bids . Bally’s proposed a 30% tax rate on slot machines, with table games at 10%. Hard Rock’s proposal called for a 25% tax rate on slots and 10% for table games.
Resorts World reportedly wanted New York’s gaming regulator to increase the tax rates for Bally’s and Hard Rock if it was unable to reduce the company’s original proposal. Resorts World, Bally’s and Hard Rock are competing for three licenses, with the Gaming Facility Location Board having the authority to awarded licenses to all, some or none of the three bidders. The board plans to award its downstate casino licenses on Dec. 1.
MGM Yonkers withdrew its application for a downstate casino license in October after it learned its proposal to beef up its existing property would only yield a 15-year license even though the maximum license term offered was 30 years. Since the operator planned on investing $1.8 billion in the property in addition to paying $500 million for the license, it did not feel that investment for only half the duration made financial sense.
It is unclear whether or not the proposed tax structure for Resorts World would be for a 30-year term on the license.
The company anticipated spending roughly $1.8 billion on facility improvements and licensing fees for a downstate casino license. MGM Yonkers withdrew its application while a proposal from Thor Equities, Saratoga Casino Holdings and Chickasaw Nation was rejected. A committee rejected the $3.4 billion plan for a casino in Coney Island.
Proposals from Rush Street Gaming, Mohegan and Caesars were also rejected. SBC Americas reached out to Resorts World for comment on the report of a potential change.
Resort World’s proposal expands existing operations
Resorts World proposed a $5.5 billion resort that would create roughly 24,000 jobs. The facility would add to its existing casino operations in Queens, providing visitors with access to more than 750 gaming tables and approximately 6,000 slot machines. Its active retail casino operations in Queens only include slot machine gaming with no table games.
Resorts World projects to generate roughly $5 billion in revenue for New York within four years of being awarded a downstate casino license.
