New York casino owner Genting has said an expansion of its gambling offering would boost its annual tax contribution to more than $1Billion.
Genting Malaysia Bhd, which owns the Resorts World casino in Queens, is aiming for one of three new casino licenses available in New York City.
Last year, the casino giants paid more than $600Million in taxes. Genting has pledged to continue paying around two-thirds of its slot machine revenue in taxes, a figure which includes admin fees and other expenses.
For table games such as blackjack, the percentage would be much lower, but still enough to put overall tax contributions above $1bn for the year.
The New York Gaming Commission’s executive director informed the board recently that environmental and local approvals could delay any new licenses until 2025.
But many casino operators are hopeful of hearing a decision this year, with some hoping the legislature can speed up the process.
Numerous New York Casino Bidders
There are a multitude of potential bidders for these New York licenses. The Las Vegas Sands Corp., Wynn Resorts Ltd. and financier Steve Cohen are all in the running, with the latter partnered with Hard Rock International.
Both Genting, which operated next to the Aqueduct race track, and MGM Resorts International, are thought to be strong contenders. MGM run the Empire City Casino in Yonkers, with both operators possibly favored due to already having facilities nearby.
But these new licenses would pave the way for expanded offerings including roulette, blackjack and other table games.
New York casino law states license winners will pay a one-off fee of $500 million to the state. Bidders will be judged heavily on how much tax they are offering to pay.
Some of the nation’s highest casino tax rates are in New York, with an effective 55% rate on electronic devices. In Nevada, Genting’s Las Vegas resort pays just 6.8% in taxes.
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