The gaming income generated by simply three New York Metropolis-area casinos may rival or surpass ranges seen on the Las Vegas Strip.
Occasions Sq. in New York Metropolis. A Gentle & Marvel government says New York casinos may rival the Las Vegas Strip when it comes to income. (Picture: NY Eater)
That’s the take of Howard Glaser, international head of presidency affairs at Gentle & Marvel. Glaser’s view on the matter is extremely related, as a result of he beforehand served as senior coverage advisor to Gov. Andrew Cuomo (D-NY), main the hassle to legalize conventional on line casino gaming within the downstate area.
The numbers are eye-popping when it comes to the potential income,” Glaser stated in a latest CNBC interview. “A examine New York State itself did stated $8 billion a yr in potential on line casino income from three casinos. To provide you some perspective, the Las Vegas Strip produced $8 billion in on line casino income final yr.”
That’s possible a reference to gross gaming income (GGR), as Nevada casinos, in combination, have been averaging north of $1 billion in month-to-month income for a while. The broader determine in Las Vegas and throughout Nevada usually contains nongaming objects, comparable to meals and beverage, lodge rooms, and exhibits, along with gaming income.
New York Casinos Have Clear Benefits
With New York Metropolis broadly considered as one of many final nice, untapped on line casino markets on the earth, gaming firms are spending hundreds of thousands of {dollars} merely to have an opportunity on the three licenses regulators there may award in some unspecified time in the future subsequent yr.
It’s a contest that’s drawn trade behemoths, together with Caesars Leisure, Las Vegas Sands, and Wynn Resorts, amongst others. There’s long-held hypothesis that MGM Resorts Worldwide’s Empire Metropolis racino in Yonkers and Resorts World New York in Queens shall be grandfathered two of the permits, that means the opposite firms are basically vying for a single allow. Nonetheless, policymakers and regulators haven’t publicly confirmed that these two venues have a leg up on the competitors.
Whereas the battle for the three downstate on line casino licenses has been prolonged and can finally show costly for the operators concerned, the maths confirms the winners are more likely to profit mightily.
“How is it attainable that three New York casinos equal the entire Las Vegas Strip?,” Glaser famous to CNBC. “It’s 23 million folks stay right here, 50 million folks go to. On line casino executives wish to be into this market.”
New York Has On line casino Operators in Robust Spot
New York Metropolis is undoubtedly engaging to on line casino operators, however the state has gaming firms in a troublesome spot. Not solely are roughly a dozen corporations vying for the three permits, however with the state needing income as residents flee to different states, it’s rumored that what was as soon as a $500 million license charge may now be $1 billion or extra.
As Glaser advised CNBC, $1 billion feels like some huge cash upfront — and it’s — however over 20 years, the three operators that win the permits could possibly be divvying up near $200 billion in income.
The $1 billion allow charge doesn’t embrace operators’ building prices, that means pitches comparable to Las Vegas Sands’ plan for a Nassau County on line casino lodge and Laborious Rock Worldwide’s pitch for a gaming venue close to Citi Subject in Queens may value as a lot as $6 billion and $8 billion, respectively.
Sands CEO Rob Goldstein and Laborious Rock CEO Jim Allen advised CNBC that at these worth factors, it will be almost unimaginable for the initiatives to show enough earnings if casinos aren’t concerned.
