Genting to Pay NY 1 Billion in Taxes if Granted Casino License
Genting Malaysia Bhd, an owner of the Resorts World casino in New York City, expects that tax payments to the state could rise to $1 billion annually in case the property’s bid for one of the three casino licenses wins. According to Bloomberg, Genting has pledged to continue paying New York about 67% of its slot machine revenue in taxes inclusive of administrative fees and other expenses, with shares paid for table games to be lower.
A Queens-based casino operator paid more than $600 million in taxes and other levies in 2023. According to Genting, an expanded license could allow the casino, which is ready for gambling offering extension, to stay open 24 hours and offer more benefits to customers.
Under New York’s casino law, there is a license fee of $500 million to be paid by each of the three winning projects. The bidders make a number of arguments, including the promises to pay more in taxes to the state.
According to the American Gaming Association trade group, New York has some of the highest casino taxes in the USA, with an effective rate of 55%. For comparison, casinos in Nevada, where Genting operates a Las Vegas-based resort, reportedly pay 6.8%.
Meanwhile, a serious competition for the three licenses continues, with such bidders as Las Vegas Sands Corp, Wynn Resorts Ltd and Hard Rock International taking part in it. However many casino operators expected a decision this year, the executive director of New York’s Gaming Commission told the board last month that environmental and other local approvals may delay the awarding of licenses until the end of 2025.
If awarded a license, Genting has promised to invest $5 billion, adding 350,000 square feet of gaming space, a 7,000-seat arena and a 1,600-room hotel, among other amenities. The arena would hold a variety of events, but would be focused on concerts due to the partnership with a Queens born-and-raised rapper Nas.
In other news, Nevada gambling revenue remains high in February 2024.
