Resorts World New York City is pursuing a legislative approach to address a conflict with state regulators regarding financial contributions to support the horse racing sector in New York. This disagreement could potentially cost the casino over $500 million in the next four years, as reported by News From the State.
The core of the issue lies in whether the payments meant to support racing are already encompassed within the casino's agreed tax obligations. Representatives from Resorts World NYC have highlighted their commercial license proposal, which included a 56% tax rate on slot machines that was said to cover racing support. Currently, these payments are estimated to exceed $150 million each year.
According to existing regulations, Resorts World NYC is obligated to fulfill these payments until the two newly licensed downstate casinos commence operations. However, Metropolitan Park in Queens and Bally’s Bronx are not anticipated to open before 2030.
In response, Resorts World NYC has introduced legislation that would enable the New York State Gaming Commission to directly allocate the racing support payments from the state’s commercial gaming revenue fund. This fund collects casino tax revenue, primarily designated for educational and transportation initiatives. The casino asserts that this proposal aims to clarify the payment process.
State Senator Joseph Addabbo, who leads the Senate Committee on Racing, Gaming and Wagering, commented that the ongoing dispute reflects differing interpretations of what the 56% tax rate was meant to cover. The New York State Gaming Commission has yet to provide any public commentary on the proposed payment structure.
This conflict arises shortly after Resorts World, which is owned by the Malaysian gaming conglomerate Genting, became the first full-scale commercial casino to launch in New York City. The establishment secured one of three downstate casino licenses awarded in December and began offering live table games in April.
Since Resorts World previously operated a video gambling venue at the Aqueduct Racetrack, it was able to quickly transition to a full casino with live gaming options. In contrast, Metropolitan Park and Bally’s will need to be constructed from scratch.
The original payments were set up to support New York’s horse racing industry following the introduction of video lottery terminals in the state. In 2023, lawmakers broadened the requirements to ensure that new downstate casinos would continue to provide funding at levels similar to those generated by gaming facilities in 2019, adjusted for inflation.
The dispute is occurring amid increasing worries about the competitiveness of Resorts World’s tax obligations compared to its future competitors. Under their licensing agreements, Bally’s is set to pay a 30% tax rate, while Metropolitan Park will only pay 25%, both of which are significantly lower than Resorts World’s 56% rate.
During the licensing process, Resorts World sought to lower its proposed tax rate, but state officials denied the request, arguing that any changes would compromise the integrity of the bidding process.