Bally’s discusses proposed gaming tax charges and native funding as MGM unexpectedly drops on line casino bid – Bronx Times

With Yonkers’ MGM “racino” enlargement now off the table for a on line casino license, Bally’s has expressed confidence that its tax construction and monetary backing will deliver an financial growth to the borough — whereas downplaying the profit to President Donald Trump, whose Trump Organization will obtain $115 million if the challenge is accepted by the state. 

Bally’s is now one in all simply three remaining bids lately accepted by their respective Community Advisory Committees (CACs) to proceed by way of the state approval course of. 

The different two, each in Queens, are Resorts World NYC in South Ozone Park, which might broaden its present “racino,” and Metropolitan Park, which might remodel a part of a Citi Field car parking zone right into a hotel-casino advanced and public park. The winners are anticipated to be chosen by the tip of the yr. 

In a statement issued Oct. 14, MGM stated it dropped out as a result of its $2.3 billion plan to broaden its present facility was not financially viable. 

It blamed “the newly defined competitive landscape” of remaining bids and a change in state regulation that will probably make it eligible for less than a 15-year on line casino license, not a 30-year license as anticipated.

With one other competitor out, Soo Kim, chairman of Bally’s company, is standing agency behind his bid to construct a brand-new on line casino, resort and leisure advanced in Ferry Point Park and emphasizing its capability to deliver long-term financial profit to the Bronx. 

The firm has a “fantastic balance sheet with more than $1 billion of cash and available credit facilities ready to commit to the project,” Kim stated in an announcement to the Bronx Times. 

He additionally pointed to his firm’s $765 million deliberate funding in Bronx faculties, parks, infrastructure, nonprofits, jobs and extra, as financial and enterprise improvement is the most heavily weighted factor in state license choices.

“When combined with readily available project financing and our Community Investment Program, Bally’s is ready and willing to bet on the Bronx,” he stated. 

The firm additionally shared its proposed gaming income tax charges solely with the Bronx Times, providing a glimpse into what a Bally’s on line casino would herald in comparison with the 2 Queens bids.

Bally’s shared that it submitted to the state tax fee of 30% on slot machines and 10% on desk video games — considerably larger than the required minimum of 25% on slot machines and 10% on desk video games.

Bally’s tax plans characterize a center floor between Metropolitan Park, which proposed the minimal charges, and Resorts World, which proposed 56% for slot machines and 30% for desk video games, as reported by The Real Deal. Each firm awarded a license should additionally pay a $500 million price to the state.

Bally’s stated its gaming tax charges would “strike the right balance — strong, dependable revenue for New York and the Bronx, while keeping the project competitive and sustainable for decades to come to support our Community Benefit Fund and associated commitments in perpetuity,” stated Christopher Jewett, senior vp of company improvement, in an announcement emailed to the Bronx Times.

“This framework is built around good union jobs, local procurement, and lasting neighborhood investment and it reflects our commitment to transparency and accountability as the state evaluates the remaining bids,” Jewett stated.   

While there isn’t a assure the state will award all three doable licenses for the New York City space, the percentages for Bally’s has solely elevated with MGM out of the image. 

But some, together with Yonkers Mayor Mike Spano, questioned MGM’s actual cause for dropping out. 

In an Oct. 14 Instagram post, Spano stated the choice “defies all logic” and referred to as for Gov. Kathy Hochul to analyze whether or not or not President Donald Trump interfered within the deal.

The proposed Bally’s on line casino can be partially located on the golf course it bought from the Trump Organization in 2023. If Bally’s is awarded a license, the corporate should pay $115 million to the Trump Organization, as reported by The New York Times in April. 

“It’s no secret that the big winner from [MGM’s] reversal will be Bally’s proposal for a casino at the former Trump Links in Whitestone,” Spano stated on Instagram. “It’s also no secret that Bally’s has a deal with Donald Trump that they will pay him an additional $115 million if they can open a casino there.”

“People need to be assured that there is no linkage between MGM’s decision and the massive financial benefit to Donald Trump,” he added. 

However, Bally’s Chair Soo Kim has downplayed the profit to Trump if the on line casino is accepted.

Following the CAC vote on Sept. 29, Kim described the $115 million cost as “essentially a deferred purchase price” as a result of Trump knew the land worth would enhance if additional developed. Under the acquisition settlement, Bally’s would pay Trump if — and provided that — a on line casino challenge is accepted. 

“The value that he’s receiving is ultimately a very small piece of the value of this project,” Kim stated. 

Meanwhile, Bally’s has additionally tried to woo Bronx locals, some who stay uncertain that the challenge’s advantages will outweigh its drawbacks. 

While the challenge has acquired widespread assist from borough officers, together with the Bronx borough president, Bronx metropolis council members and East Bronx representatives within the State Assembly and Senate, it has acquired robust opposition from the speedy Throggs Neck neighborhood and its Republican council rep, Kristy Marmorato. 

Despite Bally’s promised investments, many East Bronx residents stay unconvinced that Bally’s can mitigate will increase in crime, visitors and air pollution that might outcome if the on line casino is constructed. At the Sept. 10 CAC listening to, Marmorato testified that Bally’s would “fundamentally alter life in our neighborhood as we know it” and stated the corporate desires “gamblers, not neighbors.” 

For Bally’s, Metropolitan Park and Resorts World, who’ve now submitted all required data to the state, the approaching months shall be largely a ready sport.

The Gaming Facility Location Board is anticipated to advocate as much as three winners by Dec. 1, after which the Gaming Commission will grant licenses by Dec. 31. 

Reach Emily Swanson at [email protected] or (646) 717-0015. For extra protection, subscribe to our newsletter and observe us on Twitter, Facebook and Instagram!