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Queens Democrats are pressing Gov. Kathy Hochul to step into a casino tax dispute. Lawmakers say the proposed levy would claim 72% of slot revenue at Resorts World New York City, the city’s first full casino.
In an Aug. 25 letter to New York State Gaming Commission chairman Brian O’Dwyer, 10 lawmakers argued the rate is too high and needs an immediate fix. They said it could damage investment, jobs, and nearby businesses.
State Sen. Joe Addabbo called the proposed burden “excessively high.”
Why the Tax Dispute Emerged
Resorts World New York City, operated by Genting, began as a slots parlor in 2011. The property recently obtained a state license allowing live table games.
The Gaming Commission said Resorts World proposed a 56% tax rate while seeking a full license. The commission approved that figure based on the license application. But the agency said 56% did not include separate obligations to support the horse-racing industry.
The commission said those additional obligations raise the total liability to 72%. The arrangement requires Resorts World to pay $150 million annually, depending on slot-machine revenue.
A representative for Hochul’s office said casino tax rates have never included racing support payments.
How It Compares With Nearby Casino Markets
The New York dispute stands out for other American casino markets. The tax rates cited in the report are much lower in several other states:
- 9.25% for New Jersey AC Casinos
- 19% for Michigan Casinos
- 33% for Ohio Casinos
That comparison could matter in the regional casino market with Resorts World’s $4 billion expansion plan. Lawmakers said the issue should be resolved quickly because of the potential effect on future investment and employment.
Resorts World spokesperson Stefan Friedman said discussions with the state are ongoing and productive.
Hochul has yet to act. It is also unclear whether the 72% burden will be changed, adopted, or rejected.
Source: As reported by nypost.com.
