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Queens Democrats are pressing Gov. Kathy Hochul to intervene in a dispute over the tax burden on Resorts World New York City. They argue the city’s first full casino could face an effective 72% tax on slot revenue.
In an Aug. 25 letter to New York State Gaming Commission Chairman Brian O’Dwyer, 10 lawmakers said the issue needs an immediate resolution. They believe it can cause potential harm to
“billions of dollars in private investment, thousands of jobs, local businesses, and the communities.”
State Sen. Joe Addabbo called the proposed burden excessive. He said,
“a 72% tax rate is excessively high.”
Why the Tax Rate Is Disputed
Resorts World New York City, operated by Genting, began as a slots parlor in 2011. The property recently obtained a state license to offer live table games.
According to the source report, Resorts World proposed a 56% tax rate while seeking a full casino license. The New York State Gaming Commission said that 56% figure did not include additional obligations to support the horse racing industry. Those obligations pushed the total liability to 72%.
The arrangement requires Resorts World to pay $150 million annually, depending on slot-machine revenue.
A commission spokesperson, Lee Park, said the agency determined the 56% tax was appropriate based on the license application. A representative for Hochul’s office said casino tax rates have never included racing support payments.
How New York Compares With Michigan and Nearby States
The disputed New York tax burden stands out compared with other casino markets in the U.S.
New York’s effective 72% rate is much higher than 19% for Michigan casinos, 9.25% for New Jersey casinos, and 33% for Ohio casinos.
That gap is part of the argument from Queens lawmakers. They say the tax structure could limit investment. Resorts World is separately planning a $4 billion expansion.
Resorts World spokesperson Stefan Friedman said discussions with the state are ongoing and productive.
What Remains Unresolved
Hochul and state regulators have yet to decide the fate of the disputed tax structure. It is also still unclear when a final resolution will come.
Lawmakers continue to push for quick action. Meanwhile, Resorts World is in the discussion phase with the state.
Source: As reported by nypost.com.
