Hard Rock Touts Metropolitan Park As World-Class Destination

Hard Rock at long last announced its presence in the downstate New York casino licensing process, saying its $8 billion Metropolitan Park proposal in tandem with New York Mets owner Steve Cohen is “New York’s best site for gaming” in its executive summary submitted to the state’s Gaming Facility Location Board (GFLB).

Hard Rock had been content to stay in the background while Cohen and his team led by his chief of staff, Michael “Sully” Sullivan, led the process of gathering public support for the Queens-based project adjacent to Citi Field in Flushing. That strategy proved successful as local residents largely backed the project at both Community Advisory Committee (CAC) public hearings after an extensive, multi-year outreach in the community.

The CAC unanimously advanced the Metropolitan Park application as one of four finalists for as many as three $500 million licenses. The field was since reduced to three after MGM shockingly withdrew its proposal for a full casino license at Empire City on Tuesday.

Metropolitan Park is now competing with fellow Queens-based applicant Resorts World and Bally’s, which is proposing to build a casino in the Ferry Point section of the Bronx.

Hard Rock’s time to shine

A global brand that is also a casino gaming powerhouse in the United States, Hard Rock expressed confidence its casino will be able to deliver substantial revenue through 5,000 slots, 375 table games, and 30 poker tables spanning more than 286,000 square feet of gaming space. It also plans to offer an 18,000-square-foot retail sportsbook.

Hard Rock Metropolitan Park expects to generate $33.5 billion in tax revenue over the course of its 30-year license, according to projections by industry advisor GGHM. This includes $850 million in tax receipts from a projected $3.9 billion in operator revenue in the “high scenario” of its third year of operations in 2031.

The high scenario as presented to applicants by the GFLB is one in which Hard Rock Metropolitan Park would be the only licensee in operation.

Hard Rock opted to maintain the board’s base tax rates of 25% on slot revenue and 10% for all other sources of gaming. Resorts World submitted a bold rework to tax slots at 56% and table games at 30%, while Bally’s redacted its proposed tax rates in its submission.

The bigger picture

Hard Rock Metropolitan Park’s executive summary also focused on a $1.75 billion investment in infrastructure, highlighted by 25 acres of new park space, a revitalization of the New York City Subway 7 line stop, and a “Taste of Queens” food hall that would be open year-round.

The $8 billion proposal, the largest among the three remaining applicants, projects to create 17,100 direct construction jobs and more than 6,000 permanent jobs when the casino venue is opened. A separate group, BJH Advisors LLC, predicts a total of 42,100 direct, indirect, and induced jobs created, and full-time positions at the property would have an annual average compensation of $140,000 when including tips and benefits.

Hard Rock added that its project would be shovel-ready upon receiving a license from the GFLB. It began revealing details of its action plan as early as May should it be awarded one of the licenses. It said construction would begin in January if the license were awarded Dec. 1, as the current timeline suggests.

Hochul nixes MGM withdrawal probe

New York Gov. Kathy Hochul shot down Yonkers Mayor Mike Spano’s calls to open an investigation into MGM’s withdrawal from the casino process. Spano blasted its decision to drop the bid Tuesday, calling it “a betrayal to the people of Yonkers and Westchester County.” He added MGM’s withdrawal benefited Bally’s and President Trump after the Trump Organization included a clause that would require Bally’s to pay it $115 million if it obtains a full casino license after acquiring the lease for the golf course in 2023.

Hochul, speaking at a press conference Wednesday, said there was no indication of any misconduct that would warrant an investigation.

“I would also say I share the mayor’s disappointment that this did not continue, but I at this time am not aware of any reason to launch an investigation,” Hochul said, according to Spectrum News. “I have no evidence to suspect that there’s any wrongdoing in this decision-making. I think MGM knows, you know, they made their own probably financial decision based on what their needs are.”