Resorts World, one of the three companies still in the running for a new New York City casino license, has asked the state to reconsider the tax rates put forward by the company. BonusFinder, an online casinos comparison site, reveals the latest.
It transpires that Resorts World, owned by Genting Group, has put forward tax rates considerably higher than the other two projects, and, according to one source, has requested that its own tax rates be reduced or that the Hard Rock and Bally’s bids have their tax rates increased.
New York City casino licenses
New York has three new licenses up for grabs. Initially, eight groups put forward bids during the early stages of the application process; but this list was initially whittled down to four proposals after local committees were given the ability to reject proposals before they reached the state board.
From there, MGM Resorts withdrew its bid, citing a change in licensing terms. That left three bids from: Bally’s, Hard Rock and Resorts World.
Unusually, as part of the bidding process, the state asked bidders to include license fees and taxes they would pay. The state set minimums but aimed to raise additional tax revenue by doing so.
Lawmakers hoped that the considerable appeal of opening a casino in one of the most prominent global cities would attract higher bids from the companies involved.
The three proposals couldn’t have been more disparate:
- Hard Rock proposed paying the minimum tax rates of 25% on slot machine revenue and 10% on table game revenue.
- Bally’s offered the same table game rate but an increased 30% on slot machines.
- Resorts World, which already owns and operates a casino in the city, bid considerably higher than the other two, promising 30% on table games and a massive 56% on slots.
Next steps
If the bids were to be accepted at their proposed rates, Resorts World would be paying more than double the amount of tax compared to Hard Rock, making profits more difficult to come by and leading to a less profitable casino.
In a bid to redress the balance, the Malaysian gaming giant has asked the state to either reduce their proposed tax rates or have the other two projects pay higher rates. None of Hard Rock, Bally’s, or the state itself has commented on the report.
In a statement, Resorts World said that the new licenses and the money they raised mean the state would: “benefit from new revenue for mass transit and public education. The tax rates we have presented, at 56% on slots and 30% on tables, reflect our sense of responsibility to our properties across New York State, the greater industry, and the public.”
In what has already been a long process, the next step in the tender war will see Gaming Facility Location Board members tour the proposed sites next week.
A final decision on the licenses is expected on December 1. With three licenses up for grabs, the state may elect to award licenses to all three groups, or any number of them.
