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Resorts World New York City is seeking a legislative route to resolve a dispute with state regulators over payments to support New York’s horse racing industry, with the disagreement potentially costing the casino more than $500 million over the next four years, according to News From the State.
The issue centers on whether the racing support payments are already included in Resorts World NYC’s agreed tax obligation. Company representatives have pointed to the casino’s commercial license bid, which proposed a 56% slot machine tax rate that was “inclusive of racing support.” The payments are currently valued at more than $150 million annually.
Under current law, Resorts World NYC would be required to make the full payments until the two other recently licensed downstate casinos begin operations. Metropolitan Park in Queens and Bally’s Bronx are not expected to open before 2030.
Resorts World NYC has proposed legislation that would allow the New York State Gaming Commission to make the racing support payments directly from the state’s commercial gaming revenue fund, which receives casino tax revenue and is primarily allocated to education and transportation projects. The company has said the proposal is intended to clarify the payment mechanism.
State Senator Joseph Addabbo, who chairs the Senate Committee on Racing, Gaming and Wagering, said the dispute shows different interpretations of what the 56% rate was intended to cover. The New York State Gaming Commission has not publicly commented on the proposed payment plan.
The dispute comes shortly after Resorts World, owned by Malaysian gaming group Genting, became the first full-scale commercial casino to open in New York City. The property won one of three downstate casino licenses awarded in December and began operating live table games in April.
Since Resorts World already operated a video gambling facility at the Aqueduct Racetrack site, it was able to quickly open a full-fledged casino with live table games. Metropolitan Park and Bally’s have to be built from the ground up.
The payments were originally established to help sustain New York’s horse racing industry when video lottery terminals were introduced in the state. In 2023, lawmakers expanded the requirement to ensure that future downstate casinos would continue providing funding at levels comparable to those generated by gaming facilities in 2019, adjusted for inflation.
The dispute comes against the backdrop of growing concern over the competitiveness of Resorts World’s tax burden compared to its future rivals. Under the terms of their successful bids, Bally’s will pay a 30% tax rate and Metropolitan Park just 25%, both significantly lower than Resorts World’s 56%.
The company then sought a reduction in its proposed tax rate during the licensing process, but state officials rejected the request, arguing that any adjustment would undermine the integrity of the bidding process.