Genting pledges US$1bil in taxes to win US licence

KUALA LUMPUR: Genting Malaysia Bhd – which owns the Resorts World casino in New York City – says an expansion of its gambling offering there would lift its tax payments to the state to more than US$1bil annually.

The operator of 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$600mil in taxes last year, according to a spokesman for the casino giant.

Genting is pledging to continue paying the state about 67% of its slot machine revenue in taxes, an amount that includes administrative fees and other expenses.

The share paid for table games like blackjack would be lower, but enough to get the overall annual tax contributions over the US$1bil 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 Corp, Wynn Resorts Ltd 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.

Under New York’s casino law, winners of the licences will pay a onetime US$500mil 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% rate on electronic devices. — Bloomberg