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Resorts World New York City is pushing state officials to treat required racing support payments as part of its proposed 56% casino tax rate, a dispute that could affect both its $3.3 billion Queens expansion and future state revenue.
According to New York Focus, Resorts World argues the payments should be deducted from its tax bill. Gov. Kathy Hochul’s administration says the payments are separate from casino taxes. If the disagreement is not resolved, the company could challenge the state by a Sept. 4 deadline.
Fight centers on whether racing support is included in the tax rate
Resorts World says its application described a “tax rate of 56 percent, inclusive of racing support.” The state, however, says it never approved that language.
Hochul spokesperson Gordon Tepper told the outlet, “By law, tax rates do not, and have never, included racing support payments.”
The difference is significant. Resorts World says that if racing support must be paid on top of the tax rate, its effective slot tax rate would rise to 72%. The company has said that could jeopardize financing for its planned expansion in Jamaica, Queens.
State Sen. Joe Addabbo told New York Focus the concern is tied to lenders, adding that “if 56 percent turns into 72 percent,” banks would likely see that as a problem.
What is at stake for the Queens expansion and New York revenue
Resorts World opened in April as the first full-scale downstate casino. Its proposed expansion would include a 2,000-room hotel, an arena, 6,000 slot machines, and 800 gaming tables, with 5,000 permanent jobs expected by 2029.
The tax dispute also matters for public funding. A state-commissioned report projected Resorts World would pay about $2 billion each in MTA and education taxes from 2027 to 2036, based on the 56% tax rate. New York Focus reported that well over $500 million is at stake while Resorts World remains responsible for racing support payments before the other two downstate casinos open.
Queens lawmakers, including Congressman Gregory Meeks and nine other local lawmakers, asked the Gaming Commission to clarify that the 56% rate includes racing support. The legislature previously postponed the issue for a year while horseracing payments continue.
What New York readers should watch next
The immediate question is whether Resorts World files a legal challenge by Sept. 4. Beyond that, readers should watch for any clarification from the Gaming Commission or the legislature on how racing support payments will be treated, because that decision could shape the economics of one of New York City’s largest casino projects.
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Source: As reported by nysfocus.com.
