Bally’s Stays The Course In Summary For New York Casino License

Bally’s executive summary submitted to the New York State Gaming Commission’s Gaming Facility Location Board (GFLB) as part of its supplemental materials package touted its $4 billion proposed casino for Ferry Point in the Bronx as a transformational venue for the borough.

Bally’s is one of three remaining finalists for as many as three downstate casino licenses that could be awarded, along with Resorts World and Hard Rock Metropolitan Park. Bally’s was a longshot among the original eight applicants, but the Community Advisory Committee (CAC) advanced its application forward by a 5-1 vote as Bronx residents came out in support of the venue, which had backing by both New York City Mayor Eric Adams and state-level politicians.

Much of its executive summary submitted Tuesday was a review of the end products of Bally’s negotiations with the CAC, highlighted by a community benefits package with a current net value of $765 million and the projection of 15,000 union-based construction jobs and 4,000 permanent positions. Bally’s also outlined its plans for growth over the first 10 years of the casino’s existence, leaning on the company’s previous success in Rhode Island, where it faces similar types of competition for gaming dollars.

Revenue projections do not appear to be different

Unlike Resorts World, which laid out its revenue projections via a study from Spectrum Gaming in its executive summary, Bally’s did not disclose those details. Its consultants, Victor Strategies and Klas Robinson, estimated an annual economic impact of $1.5 billion for the Bronx and $1.9 billion for the state of New York. It also projects the facility to deliver $370 million in annual state and local tax revenue while driving over $200 million in annual in-state purchases of goods and services.

Bally’s redacted its proposed tax rates for slot and table games revenue, though the GFLB set those base rates at 25% and 10%, respectively. Bally’s did retain its overall gross gaming revenue projection of more than $1 billion annually at full maturity, but the projected tax revenue via gaming was also redacted. In its redline summary submitted, a figure of $200 million was previously estimated for annual direct gaming tax revenue.

Bally’s pointed to its job creation as a place where it looks to gain traction. It estimates the 15,000 construction jobs will have a payroll of $379 million with average wages of $55 per hour. The 4,000 permanent jobs for the casino would make Bally’s the second-largest private employer in The Bronx, with the average annual earnings reaching $96,200 and a median wage of $62,400.

The total compensation package when including benefits is estimated to be $80,000, which Bally’s claims is nearly 40% higher than the current average salary in the borough. It also expects to have more than 75% of its workforce from “the minority community and Bronx residents.”

Rhode Island lessons applied

Formerly known as Twin Rivers, Bally’s noted the “success of our business has been built in some of the most competitive, tax and labor-intensive gaming markets in the world” by focusing on what it calls “capital deployment” and “operational excellence.” It pointed out its Rhode Island properties regularly compete for business against Connecticut-based Foxwoods and Mohegan Sun, and Massachusetts-based venue Encore Harbor.

In detailing its 10-year vision, Bally’s said the first three years would be marked by heavy investment in marketing, promotions, and player outreach to develop a database of 2.5 million players in the New York City area. Bally’s would emphasize developing brand awareness and the components of its integrated resort, most notably the Jack Nicklaus Signature golf course and 500-room hotel that would be part of the property.

The middle years would see the focus begin to shift toward strengthening existing relationships with guests as well as community outreach through workforce initiatives, local sourcing, and an ongoing presence for “area events and cultural activities.” Bally’s Community Rewards programs would also be part of the growth that creates a “powerful dynamic where customers who have earned points at other Bally’s properties across the country can browse our online marketplace and discover exciting Bronx businesses where they can redeem their rewards, providing a direct incentive for visitation to the borough.”