Genting Malaysia is preparing for the issuance of the three commercial casino licenses in downstate New York. The company informed that its ongoing expansion of Resorts World New York City in Queens is in hope that the property will be able to receive one of the three downstate licenses. Thus, being transformed into a fully-fledged casino with live table games.
Previously, Genting Malaysia made some more changes and expansion to the Queens property, as it hired some additional staff members recently. It also increased the operating capacity, as well as the opening of the new Hyatt Regency-branded hotel at Resorts World New York City back in August 2021, located in close proximity of the JFK Airport.
Owner’s Statement
During the CGS-CIMB Research’s Malaysia Corporate Day, Genting Malaysia’s Senior Vice President of Finance and Corporate Affairs James Koh, and Assistant Manager of Corporate Affairs Audrey Ng provided some details on the casino’s expansion. They explained that the RFI process by the New York State Gaming Commission had concluded, and it preparing to submit a report to the New York State Governor and State Legislature by June 2022.
The corporation also predicts that the commission will start its Request for Application this year, through which it will be selecting the three winners of downstate casino licenses. This will be done 150 days ahead of the expiration of the moratorium on the issuance of three licenses which is scheduled to be lifted by the state of New York in early 2023.
Recently, the company has also been selected for a mobile sports betting operator in the state, as its 49%-owned subsidiary Empire Resorts won such a license as part of a consortium with Kambi Group. Through this, the corporation is hopeful that it would be able to increase its brand exposure across the state and in the country, despite the 51% tax rate for mobile sports betting operators.
Genting Malaysia is also developing a project named Resorts World Hudson Valley, which will be in Orange County, and is set to feature over 1,300 video gaming terminals. This property is expected to open in the second half of 2022. The group explained that the capital expenditure for the venue will not be that big and it will be around US$30 to US$40 million.
Receiving Local Backing
Last year, Resorts World New York City has officially received the local support of several Queens groups, organizations, and unions to be awarded one of the three downstate casino licenses. Local labor and business groups believe that the casino is the perfect candidate, as its transformation into a full-scale casino would bring more revenue to the region and more work to the region.
Support from Lawmakers
At the start of this year, New York lawmakers continued their push for the acceleration of issuance of the three commercial downstate licenses. Gary Pretlow and Joseph Addabbo have both backed the Queens casino and MGM Resorts’ Empire State Casino to be two of the three winners of such licenses. Their arguments are that the casinos are already offering gambling services, and it would be an easier transition.
Source: Hen, Seah “RWNYC expansion to prepare for potential downstate casino licences, says GenM”, TheEdgeMarkets, January 12, 2022
