A new report states that the upcoming New York City casinos could bring in as much as $5.6 billion in revenue every year.
The New York Gaming Commission approved three new casino licenses in the New York City area. CBRE Institutional Research said that those three properties could be some of the busiest casinos in the country.
The study noted that the area was “ripe for new supply,” and Genting’s Resorts World New York City had the inside track for early growth. The report expected the Queens property to outperform other properties because the current racetrack and gaming facility. Thus, it could transition to a full-scale casino faster than the other two projects.
Along with Resorts World, the state granted licenses to Bally’s plan at Ferry Point in the Bronx and Mets owner Steve Cohen’s proposal for a casino adjacent to Citi Field in Queens.
The Big Apple Competes With The Las Vegas Strip
Genting is expected to invest $5 billion into Resorts World. The company expects a transition from its current racino to a full-scale casino by 2031. The property is expected to have table games operational by the middle of this year.
CBRE believes the casino market should reach maturity in 2031, when all three casinos are finished. The revenue could make the Big Apple the second-largest gaming market behind the Las Vegas Strip.
“The proposed gaming floors are massive, with some of the largest table footprints, if not the largest, seen in regional gaming with over 200, 400, and 500 planned at Bally’s Bronx, [Hard Rock] and RWNYC, respectively,” analysts Colin Mansfield and Connor Parks said in the report.
Mansfield and Parks offered a range of annual revenue from $4.1 billion to $5.6 billion for the three casinos. However, they believe there is potential for those numbers to be higher than that.
Unlike Las Vegas, Mansfield and Parks forecast 72% of the revenue to come from the gambling floor. In Sin City, a much larger percentage of revenue comes from lodging and entertainment options.
“This contrasts with Las Vegas, where gaming accounts for less than one-third of Strip property revenue,” the report said. “We do not expect Downstate New York to resemble the Vegas model – these will remain gaming-dominated properties, especially given the higher margins associated with gaming versus hotel or ancillary spending.”
Despite the rosy projections, New York City may have another competitor in the near future. New Jersey legislators are now considering adding casinos to the northern and central parts of the state to help preserve the state’s gaming industry.
