Genting pledges US$1 billion in taxes to win New York casino licence

THE owner of the Resorts World casino in New York City said an expansion of its gambling offering there would lift its tax payments to the state to more than US$1 billion annually.

Genting Malaysia, which operates the resort in Queens, is seeking one of the three new casino licences officials are considering for the New York City area. The property paid more than US$600 million in taxes last year, according to a spokesperson for the casino giant.

Genting is pledging to continue paying the state about 67 per cent of its slot machine revenue in taxes, an amount that includes administrative fees and other expenses. The share paid for table games such as blackjack would be lower, but enough to get the overall annual tax contributions over the US$1 billion mark.

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 the licences into late 2025. Many casino operators expected a decision this year, and some think the legislature can accelerate the process.

Potential bidders include Las Vegas Sands, Wynn Resorts and financier Steve Cohen, who has partnered with Hard Rock International.

Genting, which operates next to the Aqueduct race track, and MGM Resorts International, which runs the Empire City Casino in Yonkers, are considered strong contenders because they already have facilities there. The new licences would allow them to expand their offerings, including blackjack, roulette and other table games.

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Under New York’s casino law, winners of the licences will pay a one-time US$500 million fee to the state. Bidders are expected to compete based in part on how much they are willing to pay in taxes.

New York has some of the country’s highest casino taxes with an effective 55 per cent rate on electronic devices, according to the American Gaming Association trade group. Casinos in Nevada – where Genting has a Las Vegas resort – pay 6.8 per cent. BLOOMBERG