NEW YORK (BLOOMBERG) -- Hedge fund billionaire Steve Cohen, Genting Group and Bally’s Corp. each won formal approval to open casinos in New York, marking the first time in the city’s modern history that full-scale gambling parlors will operate legally inside the five boroughs.
The decision Monday by the New York State Gaming Commission culminated a decade-long process to allow as many as three new casinos to be built in the city and its surrounding suburbs. That sets the stage for two projects in Queens and one in the Bronx.
State officials earlier this month announced initial approval of licenses for Cohen, Genting and Bally’s after determining that awarding all three would serve the state’s long-term financial interests. After the initial nod from the commission’s facility location panel Dec. 1, the full board further evaluated each proposed casino to determine applicants’ “security, fitness and background” before deciding to award the licenses.
The approval of the Bally’s casino is conditioned on the appointment of an outside monitor to oversee the process, the commission said.
Gaming revenue from the three casinos could reach $5.5 billion by 2033, and would generate $7 billion in tax revenue for the state between 2027 and 2036, state officials have estimated.
The state also anticipates receiving $1.5 billion in licensing fees and an additional $5.9 billion from other taxes derived from the projects. That extra revenue would be a boon to New York state’s budget as it manages rising costs for health care, education and infrastructure improvements.
Genting is planning to expand its existing Resorts World casino next to the Aqueduct racetrack in Queens, while Bally’s plans to open a new $2.3 billion gaming facility at the site of a Bronx golf course previously operated by President Donald Trump’s company. Cohen, who bought the New York Mets in 2020, is proposing to build an $8 billion casino and entertainment complex called Metropolitan Park on a parking lot adjacent to Queens’ Citi Field, where the baseball team plays.
Genting’s Resorts World has pitched investing $7.5 billion to build on its existing site, with plans to create a new 1,600-room hotel and an arena and open more than 30 restaurants and bars. The company, part of Malaysia’s Genting Group, proposed the highest tax among the three winning bids, offering the state a 56% levy on slot machines for the project.
State regulators will set the final tax rates, with the possibility that different operators pay different rates.
After final approval, Genting says it plans to have hundreds of table games available by the end of March 2026.
Bally’s proposed a $4 billion resort with a hotel and event center at a company-run golf course in the Bronx, and is projecting $1 billion a year in gambling revenue when the resort opens in 2030. It will create 15,000 union jobs during construction and employ almost 4,000 people once operational, according to application documents. The property would generate $200 million annually in gaming-related taxes, Bally’s has said.
Trump Payout
The successful Bally’s bid will benefit the Trump Organization, the company managed by the president’s sons, which once operated the golf course. The Trump company will receive a $115 million contingency payout from Bally’s as part of the gaming operators’ deal to take over the lease on the Bronx site, according to testimony made public in a civil trial involving the president. Bally’s proposed a 30% tax on slot machines and 10% on table games.
Cohen is partnering with Hard Rock International and the Seminole Tribe of Florida on his Metropolitan Park bid, which would include a live entertainment venue, multiple restaurants, shops, a hotel and a convention center in addition to the casino.
The project, slated to be completed in 2030, is expected to create 17,000 construction jobs and 6,000 permanent jobs. By its third year in operation, the complex is expected to make $3.9 billion in revenue, generating more than than $850 million in taxes, according to an application document. Cohen offered to pay a tax rate of 25% on revenue from slot machines and 10% for table games like blackjack and roulette.
Cohen, the founder of Point72 Asset Management, has a net worth north of $17 billion, according to the Bloomberg Billionaires Index. His previous hedge fund, SAC Capital Advisors, pleaded guilty in 2014 to securities fraud and paid a record $1.8 billion in fines. Although Cohen wasn’t charged personally, he was barred by the Securities and Exchange Commission from trading outside money for two years.
More stories like this are available on bloomberg.com.