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The competition between major U.S. gaming companies for the three downstate casino licenses in New York is set to be intense, as several operators unveil their plans for integrated resorts in a city whose residents may be focused more on high-end amenities than slot machines or table games.
As a result, company executives have focused more on the overall resort potential of the New York market instead of just their gambling offerings when discussing the an ongoing licensing process during first-quarter earnings calls.
MGM Resorts International CEO Bill Hornbuckle did not even mention casino gaming on Monday (May 1) when telling analysts that MGM's pursuit of a license is going extremely well.
“On the development front, we’re working through the RFA [request for applications] process in New York,” Hornbuckle said. “We plan to submit our official application in the summer and hope to receive a response by the first half of next year.”
Hornbuckle said MGM expects a total spend in New York to be approximately $2bn inclusive of the industry record $500m licensing fee.
The New York Gaming Facility Location Board in January also established a $500m minimum capital investment in any New York City metro area casino-resort project.
Caesars Entertainment CEO Tom Reeg on Tuesday (May 2) avoided questions about New York during the company’s hour-long conference call. However, he did say should “we win New York”, there would be a potential land deal with VICI Properties, a real-estate investment trust (REIT) focused on the casino industry.
Caesars in October announced a partnership with SL Green Realty Corp. to bring a resort to Times Square, while a month earlier Wynn Resorts announced a partnership with Related Companies to seek a gaming license to build a project for Western Yards at Hudson Yards.
Hornbuckle also mentioned MGM’s partnership with landlord VICI Properties. He indicated there could be another deal with the REIT in New York.
“I think there is some flexibility,” he said.
Hornbuckle said he could not speak for VICI but as MGM plans for the New York project and how the company would finance it, “doing a sale-leaseback with VICI at some point certainly could make a lot of sense for us.”
Las Vegas Sands, Hard Rock International and Bally’s Corporation have also expressed an interest in being licensed to build an integrated resort in New York.
Hard Rock CEO Jim Allen told attendees on April 20 at East Coast Gaming Congress in Atlantic City that New York was a unique opportunity, and the company was participating in the licensing process even though it had put more than a half-billion dollars into Atlantic City to rebuild the Trump Taj Mahal.
New York gaming regulators will decide which companies receive the three casino licenses for the downstate region, but analysts believe two licenses will go to MGM and Genting, which already operate casino facilities in the area.
Genting operates a slot machine-only video lottery Resorts World New York casino in Queens adjacent to Aqueduct Racetrack, while MGM operates Empire City Casino, another video lottery facility in Yonkers.
“Should we win a license in New York, our plan is for extensive property improvements such as a new 5,000 seat theater, new food and beverage outlets, covered parking, and an increase overall to the casino floor space,” Hornbuckle said.
Hornbuckle said he would share more specifics as the application submission process continues.
For its part, Las Vegas Sands hopes to restart its U.S. operations on Long Island at the former home of the four-time National Hockey League Stanley Cup champions New York Islanders. The company has proposed an integrated resort on the site of the former Nassau Veterans Memorial Coliseum.
Rob Goldstein, chairman and CEO of Las Vegas Sands, said New York is a work in progress and the company was waiting for a response from the state government.
“We don’t know when for a fact, let’s begin there,” Goldstein said of the timing of the licensing process during a first-quarter earnings conference call on April 19. “We’ve been told it could be early first quarter 2024. But again, we have no definitive date at this time.”
Las Vegas Sands, which closed the $6.25bn sale of its Las Vegas Venetian and Palazzo casino-resorts in February 2022, has not put a price tag on its plans for New York, although reports have indicated the project could cost up to $4bn. Goldstein said Las Vegas Sands has close to 80 acres to build its integrated resort.
“We do believe we have a compelling bid,” Goldstein said. “The project is in sync with our historical approach to development. It’s large scale with enormous non-gaming amenities, hotel convention space, entertainment … very much in the Sands spirit; the way a hotel should be designed as a real resort, a real destination.”
Goldstein said he believes Las Vegas Sands has a very compelling bid and hopes the “market sees it that way.”
