\n Posted on: October 15, 2025, 08:24h.\u00a0\n <\/p>\n
\n Last updated on: October 15, 2025, 08:24h.\n <\/p>\n
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- MGM departure raises worries about returns on Resorts World New York<\/strong><\/li>\n
- Operator Genting already dealing with tepid performance at other North American gaming venues<\/strong><\/li>\n
- Genting New York proposal includes some of industry\u2019s highest tax rates<\/strong><\/li>\n<\/ul>\n
MGM Resorts International (NYSE: MGM) rocked the gaming world Tuesday, announcing it\u2019s bowing out of the New York City casino race and that\u2019s raising concerns about the financial outlook for Resorts World New York in Queens.<\/p>\n
![\"Resorts](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2025\/01\/2024-02-23_Hero-Shot-with-Key-sm-1-858x572.jpg\")
A rendering of Resorts World New York City should it receive one of the three downstate New York casino licenses. Following MGM\u2019s departure from the competition, there are concerns about RWNY\u2019s proposal. (Image: Resorts World New York City)<\/figcaption><\/figure>\n Like MGM\u2019s Empire City Casino<\/a> in Yonkers was, the Genting-operated slots-only establishment is widely viewed as one of the frontrunners to land one of the three downstate permits. Still, analysts wonder if MGM\u2019s departure from the competition signals that New York City-area casino licenses aren\u2019t all they\u2019re cracked up to be. They argue it\u2019s a consideration Genting can\u2019t overlook because the Malaysian company already owns a collection of scuffling North American properties.<\/p>\n
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Given that some of Genting Malaysia\u2019s Resorts World assets like Resorts World Catskills, Resorts World Bahamas and Resorts World Las Vegas also have sub-par returns, one might also question the economics of a multi-billion dollar potential Resorts World NYC expansion,\u201d observes Nomura analyst Tushar Mohata.<\/p>\n<\/blockquote>\n
Genting has said that if it\u2019s granted one of the three downstate permits, it will invest $5.5 billion<\/a> in converting its Queens property to a Las Vegas-style casino, not including $2 billion in community perks. That\u2019s significantly more than the company spent to build Resorts World Las Vegas.<\/p>\n
Genting Agreeing to \u2018Aggressive\u2019 Terms<\/h2>\n
Among the reasons cited by MGM in its decision to withdraw from the New York competition were potentially unfavorable economics and a licensing term that was slashed to 15 years from 30.<\/p>\n
\nThat was licensing term was based on expectations of winning bidders shelling out $500 million<\/a> for the permits. On that basis, Nomura calls Genting\u2019s bid aggressive because it adds 20% to figure while proposing some of the highest tax rates in the US casino industry.<\/p>\n<\/div>\n
Genting\u2019s supplemental bid \u201crevealed aggressive terms, including a US$600 million license fee (versus the minimum requirement of US$500 million) and industry-leading tax rates of 56% on slots and 30% on tables. These rates significantly exceed those proposed by the other candidates,\u201d adds Nomura\u2019s Mohata.<\/strong><\/p>\n
In essence, Genting is volunteering to pay a higher licensing fee and elevated taxes<\/a> despite not being prodded by New York regulators and as MGM questions the economic viability of such expenditures given the intensity of competition in New York.<\/p>\n
Genting Has Geographic Considerations, Too<\/h2>\n
MGM also noted the geographic element in the New York casino competition and that\u2019s relevant to Genting because the proposed $8 billion Metropolitan Park<\/a> bid led by New York Mets owner Steve Cohen and Hard Rock International would be located just 10 miles away from Resorts World New York.<\/p>\n
Metropolitan Park is one of three remaining bids and is considered a near lock to win one of the licenses. Mohata said that venue, if it comes to life, could cannibalize Resorts World New York.<\/strong><\/p>\n
\u201cThe full project return on invested capital impact will not be clear for several years given the staged nature of the capital deployment,\u201d concludes the analyst. \u201cGenting Malaysia\u2019s phased development approach should better its capital management and help to mitigate risks.\u201d<\/p>\n<\/div>\n
- Operator Genting already dealing with tepid performance at other North American gaming venues<\/strong><\/li>\n