{"id":5942,"date":"2025-10-17T03:17:09","date_gmt":"2025-10-17T03:17:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/5942\/"},"modified":"2025-10-17T03:17:09","modified_gmt":"2025-10-17T03:17:09","slug":"ballys-discusses-proposed-gaming-tax-rates-and-local-investment-as-mgm-unexpectedly-drops-casino-bid-bronx-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/5942\/","title":{"rendered":"Bally\u2019s discusses proposed gaming tax rates and local investment as MGM unexpectedly drops casino bid \u2013 Bronx Times"},"content":{"rendered":"

With Yonkers\u2019 MGM \u201cracino\u201d expansion now off the table<\/a> for a casino license, Bally\u2019s has expressed confidence that its tax structure and financial backing will bring an economic boom to the borough \u2014 while downplaying the benefit to President Donald Trump, whose Trump Organization will receive $115 million if the project is approved by the state.\u00a0<\/p>\n

Bally\u2019s is now one of just three remaining bids recently approved<\/a> by their respective Community Advisory Committees (CACs) to proceed through the state approval process.\u00a0<\/p>\n

The other two, both in Queens, are Resorts World NYC<\/a> in South Ozone Park, which would expand its existing \u201cracino,\u201d and Metropolitan Park<\/a>, which would transform part of a Citi Field parking lot into a hotel-casino complex and public park. The winners are expected to be chosen by the end of the year.\u00a0<\/p>\n

In a statement<\/a> issued Oct. 14, MGM said it dropped out because its $2.3 billion plan to expand its current facility was no longer financially viable.\u00a0<\/p>\n

It blamed \u201cthe newly defined competitive landscape\u201d of remaining bids and a change in state law that would likely make it eligible for only a 15-year casino license, not a 30-year license as expected.<\/p>\n

With another competitor out, Soo Kim, chairman of Bally\u2019s corporation, is standing firm behind his bid to build a brand-new casino, hotel and entertainment complex in Ferry Point Park and emphasizing its ability to bring long-term economic benefit to the Bronx.\u00a0<\/p>\n

The company has a \u201cfantastic balance sheet with more than $1 billion of cash and available credit facilities ready to commit to the project,\u201d Kim said in a statement to the Bronx Times.\u00a0<\/p>\n

He also pointed to his company\u2019s $765 million<\/a> planned investment in Bronx schools, parks, infrastructure, nonprofits, jobs and more, as economic and business development is the most heavily weighted factor<\/a> in state license decisions.<\/p>\n

\u201cWhen combined with readily available project financing and our Community Investment Program, Bally\u2019s is ready and willing to bet on the Bronx,\u201d he said.\u00a0<\/p>\n

The company also shared its proposed gaming revenue tax rates exclusively with the Bronx Times, offering a glimpse into what a Bally\u2019s casino would bring in compared to the two Queens bids.<\/p>\n

Bally\u2019s shared that it submitted to the state tax rate of 30% on slot machines and 10% on table games \u2014 somewhat higher than the required minimum<\/a> of 25% on slot machines and 10% on table games.<\/p>\n

Bally\u2019s tax plans represent a middle ground between Metropolitan Park, which proposed the minimum rates, and Resorts World, which proposed 56% for slot machines and 30% for table games, as reported by The Real Deal<\/a>. Each company awarded a license must also pay a $500 million fee to the state.<\/p>\n

Bally\u2019s said its gaming tax rates would \u201cstrike the right balance \u2014 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,\u201d said Christopher Jewett, senior vice president of corporate development, in a statement emailed to the Bronx Times.<\/p>\n

\u201cThis 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,\u201d Jewett said.\u00a0\u00a0\u00a0<\/p>\n

While there is no guarantee the state will award all three possible licenses for the New York City area, the odds for Bally\u2019s has only increased with MGM out of the picture.\u00a0<\/p>\n

But some, including Yonkers Mayor Mike Spano, questioned MGM\u2019s real reason for dropping out.\u00a0\n<\/p>\n

In an Oct. 14 Instagram post<\/a>, Spano said the decision \u201cdefies all logic\u201d and called for Gov. Kathy Hochul to investigate whether or not President Donald Trump interfered in the deal.<\/p>\n

The proposed Bally\u2019s casino would be partially situated on the golf course it purchased<\/a> from the Trump Organization in 2023. If Bally\u2019s is awarded a license, the company must pay $115 million to the Trump Organization, as reported by The New York Times<\/a> in April.\u00a0<\/p>\n

\u201cIt\u2019s no secret that the big winner from [MGM\u2019s] reversal will be Bally\u2019s proposal for a casino at the former Trump Links in Whitestone,\u201d Spano said on Instagram. \u201cIt\u2019s also no secret that Bally\u2019s has a deal with Donald Trump that they will pay him an additional $115 million if they can open a casino there.\u201d<\/p>\n

\u201cPeople need to be assured that there is no linkage between MGM\u2019s decision and the massive financial benefit to Donald Trump,\u201d he added.\u00a0\n<\/p>\n

However, Bally\u2019s Chair Soo Kim has downplayed the benefit to Trump if the casino is approved.\n<\/p>\n

Following the CAC vote on Sept. 29, Kim described the $115 million payment as \u201cessentially a deferred purchase price\u201d because Trump knew the land value would increase if further developed. Under the purchase agreement, Bally\u2019s would pay Trump if \u2014 and only if \u2014 a casino project is approved.\u00a0<\/p>\n

\u201cThe value that he\u2019s receiving is ultimately a very small piece of the value of this project,\u201d Kim said.\u00a0\n<\/p>\n

Meanwhile, Bally\u2019s has also tried to woo Bronx locals, some who remain doubtful that the project\u2019s benefits will outweigh its drawbacks.\u00a0\n<\/p>\n

While the project has received widespread support from borough officials, including the Bronx borough president, Bronx city council members and East Bronx representatives in the State Assembly and Senate, it has received strong opposition from the immediate Throggs Neck neighborhood and its Republican council rep, Kristy Marmorato.\u00a0<\/p>\n

Despite Bally\u2019s promised investments, many East Bronx residents remain unconvinced that Bally\u2019s can mitigate increases in crime, traffic and pollution that could result if the casino is built.\u00a0At the Sept. 10 CAC hearing, Marmorato testified<\/a> that Bally\u2019s would \u201cfundamentally alter life in our neighborhood as we know it\u201d and said the company wants \u201cgamblers, not neighbors.\u201d\u00a0<\/p>\n

For Bally\u2019s, Metropolitan Park and Resorts World, who have now submitted all required information to the state, the coming months will be largely a waiting game.<\/p>\n

The Gaming Facility Location Board is expected to recommend up to three winners by Dec. 1, after which the Gaming Commission will grant licenses by Dec. 31.\u00a0<\/p>\n

Reach Emily Swanson at\u00a0eswanson@schnepsmedia.com<\/a>\u00a0or\u00a0(646) 717-0015. For more coverage, subscribe to our\u00a0newsletter<\/a>\u00a0and follow us on\u00a0Twitter<\/a>,\u00a0Facebook<\/a>\u00a0and\u00a0Instagram<\/a>!<\/p>\n

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