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Ten Queens-area Democratic lawmakers are urging Gov. Kathy Hochul to intervene in a dispute that could raise Resorts World New York City’s slot tax burden from 56% to 72%.
In an Aug. 25 letter to New York State Gaming Commission Chair Brian O’Dwyer, the lawmakers asked the state to resolve the issue quickly and allow Resorts World to pay the 56% slot tax rate it offered as part of its bid for a full casino license. The dispute centers on whether a separate horse-racing funding requirement should be added on top of that rate.
State Sen. Joe Addabbo called the proposed combined rate too high, saying, “A 72% tax rate is excessively high.” He also said the governor’s office should step in because the Gaming Commission falls under Hochul’s authority.
What the tax dispute is about
Resorts World New York City, owned by Genting, opened in Jamaica, Queens, in 2011 as a slots parlor. This year, it received a state license to expand into live table games such as baccarat, blackjack, and craps.
As part of its push for a full casino license, Resorts World proposed a 56% tax rate on slot revenue. According to the Gaming Commission’s position described in the letter, that figure does not include the operator’s separate legal obligation to provide funding to the horse-racing industry. Adding that obligation would raise the total burden by another 16%, bringing the combined rate to 72%.
The additional payments would amount to about $150 million a year over a 15-year contract, according to the source report.
Why lawmakers say the decision matters
The lawmakers said the uncertainty threatens more than one operator’s finances. In their letter, they warned it could put “billions of dollars in private investment, thousands of jobs, local businesses, and the communities we represent” at risk.
They also tied the dispute to Resorts World’s planned $4 billion casino and entertainment expansion, which they said is expected to support union construction work, permanent jobs, and opportunities for local and minority contractors.
For New York readers, the immediate issue is not a change to consumer gambling rules, but whether the state will alter the financial framework attached to one of its biggest casino projects after bids were made.
What happens next
The lawmakers said a decision is expected soon, but the source report did not include a formal response from Hochul or the Gaming Commission.
Key unanswered questions include whether the 72% combined rate will be enforced, modified, or rejected, and how the horse-racing funding obligation will ultimately be calculated if Resorts World moves forward with its full casino plans.
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Source: As reported by yogonet.com.
