TLDR
- CBRE projects three new NYC casinos could generate between $4.1 billion and $5.6 billion in annual revenue
- About 70% of revenue is expected to come directly from gaming activities on the casino floors
- Genting, Bally’s, and Hard Rock International hold the three NYC casino licenses
- Genting’s Resorts World New York has a first-mover advantage and could offer live table games later this year
- NYC casinos will operate differently from Las Vegas, relying heavily on gaming rather than hotels and entertainment
New York City is gearing up for a major expansion of its gambling industry. A new financial report from CBRE Institutional Research lays out what the three newly approved casino licenses could mean for the city’s bottom line.
The research firm projects that the three casinos could generate as much as $5.6 billion in annual revenue. That figure represents the best-case scenario in the report.
CBRE also offered a base case projection of $4.7 billion per year. Even the most pessimistic estimate still puts the number at $4.1 billion annually.
If those numbers hold up, the three New York City venues would rank among the highest-grossing regional casinos in the United States.
The report found that roughly 70% of the projected revenue would come from gaming activities. That means the casino floors themselves will be the main money makers, not hotels or restaurants.
CBRE expects the new properties to ramp up operations quickly. Researchers say the venues could reach full earning potential within just three years.
That fast timeline is partly due to existing competition in the area. Empire City Casino in Yonkers already operates nearby, which means the local gambling market has some existing demand.
Three Operators, One Clear Leader
Three companies hold the New York City casino licenses. They are Genting, Bally’s, and Hard Rock International.
Genting has a clear head start over the other two. The company already runs Resorts World New York in Queens.
Because of that, Genting does not have to build from scratch. Instead, it is investing billions to upgrade and expand its existing location.
Resorts World New York sits in a busy part of the city and is close to two subway stops. It already has a customer base and working casino infrastructure in place.
CBRE believes Genting could begin offering live table games at some point later this year. That would give the company a lead over Bally’s and Hard Rock, which are still in earlier stages.
The full conversion of Resorts World into a large integrated resort is scheduled for completion in 2031.
NYC Casinos Won’t Look Like Las Vegas
During the bidding process, politicians often used the phrase “Las Vegas-style casino.” But experts say these new properties will operate very differently from the resorts on the Las Vegas Strip.
In Las Vegas, less than one-third of property revenue comes from gaming. The rest comes from hotels, restaurants, and entertainment.
New York’s casinos will be the opposite. Gaming will dominate the revenue mix, and that is not expected to change.
Analysts say the Downstate New York region is unlikely to ever resemble the classic Vegas model. The business structure is simply different.
Because gaming is more profitable than hotel stays or dining, the New York properties are expected to have very high margins.
CBRE’s report also noted that table game penetration at all three New York casinos is expected to rank among the highest in the country.
