New York City casino jackpot heads toward uncertainty
New York City eyes to better expand its entertainment offering to around 600k residents. However, there is a slight turbulence that the region needs to fix first. It is evident that development of any type comes with its own advantages and disadvantages. When it comes to an advancement in the casino segment, then there is a chance that the advantages are likely to be overlooked, for the negatives outweigh in terms of the social aspect.
The reason why New York City could not see the casino market flourish in the region is the high $500 million one-time license fee. Half of that portion will be dedicated to education, but the remaining may have little to no impact unless there is a flood of operators working. The potential revenue from online casinos could be a game-changer for the state’s economy, but it is uncertain what the future holds for those who rely on it for their livelihood.
Per an estimate put forward by Cohen, the former US diplomat, the projected downstate gaming brings not more than 2% of the budget for the city.
The contenders in the line look impressive but have a shallow structure within. For instance, MGM and Genting are making a move to establish themselves in New York City. What’s hidden is that the development record of MGM is spotty, while Genting tops if other players are non-existent in the market. However, there has to be a monopoly for Genting to make it to the top of the charts.
The presence of MGM in Macau attracts less praise than one can imagine. A lot of it is credited to the mediocre design on the outside. This followed a mistake of replicating the Cotai casino hub to have a questionable entrance placement.
Genting has received its share of criticisms. For instance, it attempted to bring crony capitalism inspired by Asia to Queens in 2012, that is eleven years ago. Widespread opposition was later seen when it was noted to be a backroom deal with the then-governor Andrew Cuomo despite the efforts being directed to build a convention center.
The only noteworthy progress Genting has made in recent times is marking its entry in the New York City region with Resorts World Catskills. Many call it a consolation prize since the brand has made it to the top of the private casino revenue table. Call it a downturn, but the brand has not been doing well since 2018.
There is a decline in revenue for the brand to fall short of 2018. The Pandemic and post-pandemic period is what one understands, but the fall since 2018 is indeed concerning. The mounting loss has pressured Lim Kok Thay, son of the founder, to sell a portion of his family’s stake in the property. This is expected to be acquired by shareholders via Genting Malaysia.
Assuming New York City does not show light on the casino industry, it is said that there are a few tangible benefits that the region could miss out on. This includes tax revenue for the government from the gaming sector, employment opportunities, and the development of infrastructure like hotels and malls. For now, it remains to be seen how New York City retains the bright spot in the US in the gaming sector.