Democrats from Queens are urging Governor Kathy Hochul to take action regarding a tax conflict that could raise the slot tax rate for Resorts World New York City to a staggering 72%.
On August 25, ten local legislators sent a letter to Brian O’Dwyer, the chairman of the New York State Gaming Commission, who was appointed by Hochul, requesting a swift resolution to the matter, as reported by the New York Post.
State Senator Joe Addabbo, who chairs the Committee on Racing, Gaming, and Wagering, stated, “A 72% tax rate is excessively high. The governor’s office must intervene to address this issue, as the Gaming Commission operates under her authority.”
Resorts World New York City, which is owned by Genting, began operations as a slot machine venue in Jamaica in 2011. Earlier this year, it secured a state license to broaden its offerings to include live table games such as baccarat, blackjack, and craps.
In its application for a full casino license, Resorts World proposed a 56% tax rate on slot revenues, which included contributions to support the horse racing sector. Currently, the casino is adhering to this 56% rate.
However, the Gaming Commission, comprised of seven members including five appointed by Hochul, contends that this 56% rate does not take into account Resorts World’s additional obligation to fund the horse racing industry, which would add another 16% to the slot revenue, raising the total to 72%. This extra funding could reach approximately $150 million each year over the 15-year agreement.
The 56% rate already paid by Resorts World is among the highest in the nation. In contrast, casinos in Atlantic City, New Jersey, face a state tax of 9.25%, while Michigan imposes a 19% tax on Detroit casinos, and Ohio’s rate stands at 33%.
The local lawmakers emphasized that this dispute needs “immediate resolution,” with a decision anticipated shortly.
According to the letter, “The uncertainty now jeopardizes not just one company but billions in private investments, thousands of jobs, local businesses, and the communities we represent.”
The legislators urged Resorts World to continue paying the 56% slot gaming tax rate it initially proposed while ensuring full support for the horse racing industry as mandated by state law.
Furthermore, they asserted that accountability should extend to both casino applicants and the state. “Applicants must be held accountable for their financial, employment, investment, and community commitments made to New York,” the letter stated. “Simultaneously, the state should uphold these commitments according to the framework on which they were based and evaluated.”
The letter was signed by Addabbo, Rep. Gregory Meeks, chairman of the Queens Democratic Party, state Senators Leroy Comrie and James Sanders, Assembly members Alicia Hyndman, Stacey Pheffer Amato, and Kahleel Andersson, along with City Council members Nantasha Williams, Ty Hankerson, and Selvena Brooks-Powers.
Additionally, the lawmakers cautioned that the tax dispute could hinder Resorts World’s ambitious $4 billion casino and entertainment expansion, a project expected to generate union construction jobs, thousands of permanent positions, and opportunities for local and minority contractors.