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Resorts World New York City’s newly launched table games produced lower-than-expected gross gaming revenue in their first 6 days of operation, according to a Sunday research note from Maybank. The property’s slots, however, delivered a strong result over the same period, helping balance out the softer debut for the new tables.
Maybank analyst Samuel Yin Shao Yang said the casino’s 242 new gaming tables generated $4.9 million in gross gaming revenue between April 28 and May 3. That worked out to around $3,400 per table per day, which fell below the bank’s estimate of $7,500 per table per day. The analyst said the shortfall was partly linked to a low win rate of 14%.
Table Games Debut
The research note suggested that the table games would have performed better under a more normal win rate. Maybank estimated that, if adjusted to a 20% win rate, the new tables would have generated around $6.9 million in gross gaming revenue, or roughly $4,759 per table per day. That still would have been below the bank’s original expectation, but notably stronger than the actual result recorded during the first week.
Resorts World New York City, owned by Genting Malaysia Bhd, became the first casino to offer table games in New York City, starting from April 28. However, despite the fact that this was an essential step for the company, statistics show that the new segment has failed to satisfy the expectations of Maybank. According to Yin, perhaps, the excitement associated with the opening of table games diverted attention from tables to slot machines.
The note pointed to the launch week as an initial test period for the property’s expanded gaming mix. In any case, the introduction of table games should be considered as the first step towards becoming a leader in the gambling industry of New York City.
Slot Revenue Surge
In contrast to the table games result, slot machine gross gaming revenue rose sharply. For the week ended May 3, slot machine GGR at the property reached $23.5 million. Maybank had estimated roughly $19.5 million for the comparable week a year earlier, making the latest performance a strong year-on-year increase.
The strong slot result suggests that the launch of table games did not immediately draw play away from the property’s existing machines. Instead, the analyst said the attention surrounding the table games opening may have encouraged more gamblers to remain on the slot floor. That dynamic helped the property post a more balanced overall result for the week, even if the new tables themselves underperformed.
The research note also pointed to Resorts World Catskills, which Maybank said appeared more resilient than expected. Its total gross gaming revenue declined 11.1% year-on-year to $3.3 million. That comparison added another data point in the bank’s broader view of Genting Malaysia’s casino operations.
Longer-Term Buildout
Maybank maintained its BUY call on Genting Malaysia and said it remains early days for the New York City operation. The bank’s view suggests that the first week of table games should be read as a starting point rather than a final measure of the property’s potential.
The development of Resort World New York City will be gradual, and it will continue until 2030. The future expansion projects include the provision of additional gaming tables, slot machines, rooms, a conference center, and an arena. Hence, the introduction of table games is just one phase of a greater expansion strategy that Resort World New York City is going through.
Source: Asia Gaming Brief
