CBRE Report: NYC’s Three New Casinos Could Generate $5.6 Billion Annually

Key Takeaways

• Annual revenue from NYC’s three licensed casinos is projected to reach between $4.1 billion and $5.6 billion
• Gaming operations on casino floors are expected to contribute approximately 70% of total earnings
• The three license holders are Genting, Bally’s, and Hard Rock International
• Genting’s existing Resorts World New York facility positions it ahead of competitors, with live table games potentially launching this year
• The NYC casino model will diverge significantly from Las Vegas, emphasizing gaming over hospitality and entertainment

The landscape of New York City’s gambling sector is about to undergo a dramatic transformation. Fresh financial analysis from CBRE Institutional Research reveals the potential economic impact of three recently authorized casino operations in the city.

According to CBRE’s optimistic forecast, these three gaming establishments could pull in up to $5.6 billion each year. This represents the upper limit of the firm’s projections.

The research also includes a moderate estimate of $4.7 billion in annual earnings. Even under the most conservative scenario, the projected figure remains substantial at $4.1 billion per year.

Should these estimates prove accurate, New York City’s casino venues would secure positions among America’s top-performing regional gaming facilities.

The analysis indicates that approximately 70% of anticipated earnings will stem from gambling operations. This means the actual gaming floor activities will serve as the primary revenue engine, overshadowing contributions from lodging or dining establishments.

CBRE anticipates these new facilities will scale up operations at a rapid pace. The research suggests venues could achieve maximum revenue capacity in as little as three years.

This accelerated trajectory is partially attributed to pre-existing market competition. The Empire City Casino in Yonkers has been operating in the vicinity, indicating established consumer demand for gambling services in the region.

License Holders: One Operator Holds a Significant Edge

The New York City casino licenses have been awarded to three entities: Genting, Bally’s, and Hard Rock International.

Genting enters this expansion with a considerable advantage compared to its rivals. The operator currently manages Resorts World New York, located in Queens.

This pre-existing presence eliminates the need for ground-up construction. Rather than starting fresh, Genting is committing billions toward enhancing and enlarging its current property.

Resorts World New York occupies a strategic location in a high-traffic area with convenient access to two subway stations. The facility benefits from an established patron base and operational gaming systems already in place.

CBRE’s analysis suggests Genting may introduce live table games sometime during the current year. This development would provide the company with a competitive edge over Bally’s and Hard Rock, both of which remain in preliminary development phases.

The comprehensive transformation of Resorts World into a fully integrated resort complex is slated for completion by 2031.

The NYC Casino Model Differs Dramatically from Vegas

Throughout the licensing application period, government officials frequently referenced “Las Vegas-style casino” developments. However, industry analysts emphasize these upcoming facilities will function quite differently from Las Vegas Strip properties.

At Las Vegas casinos, gaming activities account for less than one-third of total property income. The majority derives from hotel accommodations, food service, and live entertainment offerings.

New York’s casino operations will follow an inverse model. Gaming revenue will constitute the dominant income source, and this pattern is projected to persist.

Industry experts believe the Downstate New York market will never truly mirror the traditional Vegas approach. The fundamental business architecture differs too substantially.

Since gaming activities yield higher profit margins than hotel bookings or restaurant operations, the New York facilities are forecast to achieve exceptionally strong profitability ratios.

CBRE’s research additionally highlighted that table game concentration at all three New York casino properties is projected to be among the nation’s highest percentages.