The arrival of casinos in New York City, which proponents have touted as a net economic positive, would likely take a big bite out of existing casino business in the Catskills, about a two-hour drive from Manhattan, according to an independent report.
An analysis by New Hampshire-based Capacity Consulting for Sullivan County estimates Resorts World Catskills in Sullivan County could lose 26% of its gaming revenues from one new casino in New York City; 76% if three new casinos are built downstate; and potentially hundreds of job losses. The state gaming commission, which has received eight downstate proposals, is scheduled to award up to three licenses by the end of this year.
The analysis suggests that while much of the discussion in New York City surrounding downstate casinos has centered around the benefits to local communities, some negative economic consequences could extend well beyond the five boroughs, by diverting tourists who might otherwise have traveled to the Catskills.
“Resorts World Catskills currently plays a vital role in Sullivan County’s economy, generating hundreds of jobs, millions in wages and significant tax revenue,” the analysis reads. “However, the potential approval of new full-scale casinos in downstate New York presents a serious risk to the region.”
Marc Baez, the president of the Sullivan County Partnership for Economic Development, an area business group, said the analysis was concerning.
“If there’s going to be an impact on us, we should be made whole,” Baez said.
Stefan Friedman, a spokesperson for Resorts World, which is owned by the Malaysia-based Genting Group, said in a statement that the company was optimistic about its prospects, particularly if its Resorts World in Queens, one of the pending downstate casino proposals, secures one of the three downstate licenses.
In addition to the casinos in Queens and the Catskills, the company operates a casino in Newburgh Mall in the Hudson Valley.
“A downstate license for Resorts World New York City would simply supercharge steadily growing businesses in the Catskills and Hudson Valley,” Friedman said, adding that the company would “now fully utilize a range of cross-promotional tactics that the company has successfully employed across the globe to draw players for different experiences both upstate and down.”
Through March 2025, the casino generated more than $1 billion in net revenues, according to the report. During that period, which includes a five-month pandemic shutdown, it generated more than $300 million in taxes, 80% of which went to state coffers.
“RWC [Resorts World Catskills] is not just a casino, it’s an economic engine in Sullivan County. It’s the single largest tourism driver and a major employer,” the analysis stated, adding “new casinos could jeopardize that ecosystem.”
Resorts World Catskills has strongly courted customers in New York City. The company currently operates a daily charter bus service to the casino from a number of neighborhoods in the city, including Chinatown in Manhattan, Flushing in Queens, and Sunset Park in Brooklyn.
“These line runs reflect an ongoing effort to attract downstate visitors,” the report states. “The introduction of a new commercial casino within or closer to New York City would likely reduce the need for such travel - posing a direct threat to Resorts World Catskills’ existing customer base.”
The casino's opening has paralleled an economic turnaround for Sullivan County.
In 2017, the county had an unemployment rate of 5.1%, compared to a rate of 4.6% for the entire state. By 2024, the county’s unemployment rate had fallen to 3.6%, below the state’s 4.3% unemployment rate.
During that same period the labor force in Sullivan County grew from 31,800 to nearly 36,000 and room occupancy taxes quadrupled. The county would lose nearly 400 jobs if one new casino is built downstate, according to the analysis.
Baez said that since the casino’s 2018 opening, median household income in the county had risen from $48,000 to $69,000 and real wage estimates had increased from $15 an hour to $23 an hour.
He said the casino had also spurred the development of other nearby attractions and developments, such as the Kartrite Resort and Indoor Waterpark, “that wouldn’t otherwise have happened but for the investment of that casino here in Sullivan County.”
In anticipation of downstate casinos, a corporation created by the county said it would purchase $561 million in casino debt, which it argued would help put the casino on firmer financial footing, according to Bloomberg News, which first reported the development.
Soojin Ha, a lecturer at Cornell University who teaches classes on casino operations, said that while downstate casinos could make life “a little more challenging” for Sullivan County, it wasn’t inevitable that business would dry up entirely.
Some customers, she said, might appreciate the opportunity to take in the scenic beauty of the Catskills, or get away from the city for a few days.
“It’s all about strategic positioning,” Ha said.
Bennett Liebman, the government lawyer in residence at Albany Law School, voiced skepticism about the analysis, arguing that with the existing gaming taking place in Yonkers and at Resorts World New York City, in Jamaica, Queens, “they’re already facing significant competition.”
“It’s not likely they’ll be significantly affected by casinos in New York City,” Liebman said.
He added that Resorts World Catskills had been “a tremendous disappointment,” falling far short of revenue projections.
“Casino gambling isn’t that much of a tourist draw at all anymore,” Liebman said. “There are just so many of them across the country.”
