Key Takeaways
- Three upcoming New York City casino properties are forecast to produce annual revenue ranging from $4.1 billion to $5.6 billion, according to CBRE analysis
- Gaming operations on casino floors are projected to account for approximately 70% of total revenue generation
- The three license holders are Genting, Bally’s, and Hard Rock International
- Genting’s existing Resorts World New York property provides a competitive advantage and may introduce live table gaming within the year
- Unlike Las Vegas establishments, NYC casinos will depend primarily on gaming revenue instead of hospitality and entertainment offerings
Three casino developments recently greenlit for New York City are expected to produce as much as $5.6 billion in yearly revenue, according to a fresh financial analysis. CBRE Institutional Research published the findings this week.
The $5.6 billion projection marks the optimistic end of CBRE’s forecast range. The firm’s middle-ground estimate lands at $4.7 billion annually, while the conservative scenario predicts $4.1 billion per year.
Should these projections prove accurate, the NYC casino trio would position themselves among America’s top-performing regional gaming venues.
Approximately 70% of incoming revenue is anticipated to originate from gaming operations, CBRE indicates. This means slot machines and table games will be the primary money makers, overshadowing contributions from lodging, dining facilities, and live entertainment.
The research suggests these properties will achieve operational maturity rapidly. CBRE’s timeline indicates the casinos could hit maximum revenue capacity in as little as three years following their launches.
License Holders and Market Position
Genting, Bally’s, and Hard Rock International secured the three available casino licenses for New York City. Each operator will construct and manage its own facility.
Genting enters the race with a substantial advantage. The company currently runs Resorts World New York in Queens, providing it with an established patron base and operational casino facilities.
Instead of launching a completely new venue, Genting is pouring billions into transforming its existing Queens location. The site benefits from proximity to two subway stations, ensuring strong accessibility.
CBRE anticipates Genting may roll out live table games before 2025 ends. This would provide a significant timing advantage over Bally’s and Hard Rock, which remain in preliminary planning and construction phases.
Genting has set 2031 as the target completion date for its full-scale integrated resort transformation.
A Different Model Than Vegas
Throughout the licensing process, officials frequently invoked comparisons to “Las Vegas-style casinos” when describing the coming developments. Industry analysts, however, say this comparison misses the mark.
Las Vegas Strip resorts generate the bulk of their income from hotel rooms, restaurants, nightclubs, and spectacular shows. Gaming operations contribute less than one-third of Strip revenue.
New York’s casino landscape will flip this formula. Gaming will constitute the overwhelming majority of revenue, with properties structured differently than their Nevada counterparts.
Industry observers don’t foresee downstate New York ever mirroring the Las Vegas entertainment-resort model.
This gaming-focused strategy does offer financial benefits. CBRE points out that casino floor operations deliver superior profit margins compared to hospitality services, dining operations, and entertainment programming.
The analysis also projects that table game revenue as a percentage of total gaming win at NYC’s three casinos will be among the nation’s highest.
CBRE’s development timeline shows Genting’s resort reaching completion in 2031, while Bally’s and Hard Rock will proceed with their own construction timetables over the next several years.
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