GENM 4715 GENTING MALAYSIA BERHAD tipped to win full casino licence in New York
KUALA LUMPUR (April 13): Genting Malaysia Bhd and MGM Resorts are seen as strong favourites to win full casino licences in New York after Governor Kathy Hochul reached a budget deal with senate leaders over the weekend to fast-track casino legislation.
Macau-based Inside Asian Gaming (IAG), a publication devoted to provide the latest information on gaming industry developments in Asia on Tuesday (April 12) reported that under the deal, New York can issue licences for up to three downstate casinos, depending on the attractiveness of bids, with the New York State Gaming Facility Location Board now expected to run a competitive process similar to the upstate casino selection process conducted several years ago.
It said the legislation sets a minimum licence fee of US$500 million but gives the New York State Gaming Commission the option to accept higher bids.
Slot and table tax minimums are set at 25% and 10% respectively but could also be increased as part of the bidding process.
Citing CBRE Equity Research analyst John DeCree, it said that the existing electronic table game (ETG)-only casinos — Genting Malaysia’s Resorts World New York City (RWNYC) and MGM’s Empire City — held a natural advantage due to likely concerns over community support and economic development.
“Demonstrating evidence of local support and zoning approval is required for all applicants.
“This could be the most challenging part of the process, which is one of the reasons we believe Empire City and RWNYC are front runners for two of the three licences,” said DeCree.
DeCree also noted that economic activity and business development, including maximising revenues received by the state and localities, are the primary criteria for awarding licences.
“This is another key reason we view Empire City and RWNYC as likely winners.
“In addition, capital investment and job creation are key factors. The remaining criteria include mitigating the potential impact on host communities, workforce enhancement, sustainability and diversity,” he said.
IAG said DeCree estimated the total addressable market in New York at US$4.8 billion in gross gaming revenue, estimating that MGM’s Empire City could generate US$1.28 billion in gaming revenue and US$1.45 billion in total revenue annually.