The three downstate New York City casino licenses are already paying off as the Metropolitan Transportation Authority has cashed in on $1.5 billion.
Bally’s Bronx and Hard Rock’s Metropolitan Park have submitted a $500 million for the up-front licensing fee. Resorts World New York City has until Jan. 15 to do so.
The New York State Gaming Commission awarded the above operators with licenses last month. All three projects are expected to cost billions once finished.
How and why the MTA benefits from casinos
During the COVID-19 pandemic, ridership and revenue plummeted for the MTA. Governor Kathy Hochul planned ahead to have casino licensing fees benefit the MTA.
The MTA raised the subway fare from $2.90 to $3 earlier this week. It could have been higher without the casino revenue. A spokesperson from Gov. Hochel told the NY Post:
“Transit riders are hitting the jackpot thanks to the historic funding Governor Hochul secured to rescue the MTA from its post-pandemic fiscal cliff.
“With these investments, millions of riders have better service, record levels of safety, and faster commutes.”
The revenue from casino licenses is going to continue to roll in for the MTA. The MTA Financial Plan is budgeting for the following figures over the next three years:
- 2027: $500 million
- 2028: $600 million
- 2029: $200 million
The money could reduce future hikes and help pay labor costs. Danny Pearlstein, spokesman for the NYC Riders Alliance, added to the NY Post:
“This is money going to good use. It benefits everybody.”
Plans for licenses holders
Bally’s, Hard Rock and Resorts World have huge plans for the city that will cost billions of dollars to make, as well as generating billions of dollars.
Bally’s plans on housing 3,500 gaming machines and 250 table games with dining, entertainment and an event center holding 2,000 people.
Hard Rock has its sights set on an $8.1 billion project that includes 5,000 gaming machines and more than 400 table games (including 30 poker tables), plus an 18,000-square-foot sportsbook. Estimates have the casino generating nearly $4 billion in revenue in its third operating year.
Resorts World is a $5.5 billion project with 6,000 gaming machines and 800 table games. It will also include a 7,000-seat entertainment venue and a 2,000-room hotel.
These three properties are sure to financially benefit New York. The MTA is already seeing the effects.
