Bally’s, Hard Rock, And Resorts World Awarded New York Casino Licenses

The New York State Gaming Commission (NYSGC) voted Monday to award conditional casino licenses to Bally’s, Hard Rock Metropolitan Park, and Resorts World, completing a process that included many twists and turns over a span of several years.

The state agency awarded the maximum three downstate casino licenses available. Each license carried a minimum price tag of $500 million each to be paid before the end of the year, along with a $500 million minimum capital investment.

The term of each license was not disclosed for applicants during each vote taken, though a rule passed prior to those votes established license term lengths based on “total investment.” Each licensee will also be monitored by an independent third party for the first five years of their operations.

“Congratulations to all three who have been granted this conditional license,” said Chairman Brian O’Dwyer. “We look forward to seeing the jobs, economic development, infrastructure, and gaming revenue come to fruition.

“For myself, as a long-time lawyer for labor unions in this city, I am looking forward to the creation of hundreds, if not thousands, of good union jobs in Queens and in the Bronx,” Dwyer added. “You all have a difficult charge ahead of you, along with great responsibility. And you can be assured that this commission takes our responsibility in keeping your feet to the fire…”

Top-line summaries

The NYSGC’s selections run an interesting gamut. Queens-based Resorts World was an incumbent long expected to obtain one of the three downstate licenses as the top gaming revenue generator in the U.S. It aims to have the first phase of its casino gaming expansion plans operational as early as March and potentially completed before Hard Rock and Bally’s accept their first bets.

Hard Rock, which will build its casino adjacent to Citi Field where the New York Mets play, also situated in Queens, has a long track record of gaming excellence in various locations throughout the country. It projected to have its venue ready by 2030.

Bally’s, the longshot applicant that persevered through the process, now has three multibillion-dollar casino projects going on simultaneously with other venues currently under construction in Chicago and Las Vegas. Bally’s also expects to have its venue in the Bronx up and running by 2030.

In getting to this point, four applicants failed to advance past their respective Community Advisory Committees (CAC), including all three Manhattan-based proposals. Fellow incumbent MGM Yonkers stunned many in October by withdrawing its application after being voted forward by its CAC, citing potential lesser revenue returns than projected based on the term license length. Three other groups withdrew their proposals before the application deadline.

Hard Rock as part of sports and entertainment district

The $8.1 billion Metropolitan Park proposal, fronted by both Hard Rock and New York Mets owner Steve Cohen, will be part of a planned transformation of the 50 acres of asphalt surrounding Citi Field into a sports and entertainment district. Construction has already begun on a soccer-specific facility for Major League Soccer club New York City FC. The venue is also in close proximity to the USTA National Tennis Center, annual site of the U.S. Open.

“Since the day I bought the team, the community and Mets fans have made it clear to me that we can and should do better with the area around the ballpark,” Cohen said in a joint statement among Metropolitan Park’s principal founders. “Now, we are going to be able to deliver the sports and entertainment district that our fans have been asking for.” 

In its executive summary submitted to the New York Gaming Floor Location Board (GFLB), Hard Rock projected it would generate $3.9 billion in operator revenue in its third year of operation. Metropolitan Park officials project 23,000 union jobs when including construction and a total of $1.75 billion in community benefits and infrastructure improvements.

“Metropolitan Park will be a global destination for entertainment, food, and culture that reflects the energy and diversity of the World’s Borough,” said Jim Allen, chairman of Hard Rock International. “The Commission’s decision confirms the positive impact this project will have on New York City, the state, and the region, and we’re excited to build on our long record of delivering world-class entertainment experiences here in Queens.”

Key components of the proposal beyond gaming include creating 25 acres of parkland and a renovation of the New York City subway station stop on the 7 Line. There will also be a 5,650-seat, theater-style venue and a food hall that showcases Queens-based vendors.

Resorts World raring to go

Resorts World’s $5.5 billion expansion plans can be argued as the most bold in terms of gaming positions as it looks to have 10,800 positions when every phase of its expansion is operational at the Aqueduct Raceway grounds. In its executive summary submitted to the GFLB, Resorts World projected $3.3 billion in gaming revenue during its third year of operation.

“Resorts World New York City thanks the New York State Gaming Commission for today’s final approval,” said Robert DeSalvio, president of Genting Americas East. “We look forward to opening within months as New York City’s first full commercial casino.”

The scope of Resorts World’s ambitions include a projection of 5,000 permanent jobs and 5,000 unique construction jobs. It made a commitment in May to help produce 50,000 units of housing spread throughout the five boroughs as part of a $1.5 billion community investment. Half of those funds would come via a $25 million annual investment in tandem with Cirrus Workforce Housing.

Still to be sorted are Resorts World’s tax rate as it submitted proposed levies of 56% on slot revenue and 30% on table games. That was well above the GLFB’s baseline percentages of 25% and 10%, respectively. In its redline executive summary, Resorts World noted that “if other Downstate Licensees open with lower tax rates on slots or tables, RWNYC’s tax rate should also be lowered because all proposed sites are close together and the same tax rate should apply to maintain a level playing field and avoid cannibalization.”

Kim gets a happy homecoming with Bally’s Bronx

The $4 billion proposal to bring a casino to the Ferry Point section of the Bronx is vindication of sorts for both outgoing New York City Mayor Eric Adams and Bally’s Chairman Soo Kim. Adams twice rescued the project to make sure it would reach the CAC round, and Kim has shown a deft touch in keeping all three of Bally’s metropolitan casino ventures moving forward.

That included securing $1.1 billion in new term loans last week, which included a $500 million delayed term loan that is specifically earmarked to “pay or replenish liquidity” for this licensing process. Bally’s is also required to pay the Trump Corporation $115 million as part of the conditions for the $60 million lease it acquired for managing the golf course on the property in 2023.

“Bally’s is betting on the Bronx. Having grown up in the city, it’s an honor and privilege to be selected by the Gaming Commission to receive a license,” Kim said in a statement. “Our team has worked closely with community leaders, union partners, and local stakeholders to build a project that delivers real jobs, lasting economic benefits, and a world-class entertainment destination for the Bronx.

“We are grateful for the Board’s confidence and look forward to delivering our project to the community.”

Bally’s proposed a gaming floor with 4,000 positions, a 2,000-seat event center, and a 500-room hotel as part of its venue. It also has a community benefits package worth $765 million and expects to create 15,000 construction jobs. The 4,000 projected jobs for casino-related activities would make Bally’s the second-largest employer in the Bronx.