Casino operator Resorts World New York City is looking for a legislative solution to a dispute with New York state regulators over payments to support the state's horse racing industry.
Key Takeaways
- Resorts World NYC is in dispute with state regulators over racing payments.
- The casino argues the payments are included within its agreed 56% tax rate.
- The disagreement could cost Resorts World NYC more than $500 million.
The disagreement is based on whether racing support payments are part of the casino's agreed tax obligation. The payments are currently valued at more than $150 million annually.
Under current law, Resorts World NYC would be responsible for making the full payments until two other recently licensed downstate casinos, Metropolitan Park in Queens and Bally's Bronx, start operations, not expected before 2030. The cost could therefore amount to $500 million over the next four years.
In response, the casino has proposed legislation that would allow the New York State Gaming Commission to make 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.
Resorts World NYC has stated that the proposal is intended to clarify the payment mechanism rather than reduce its financial obligations. Company representatives have pointed to its commercial casino license bid, which proposed a 56% slot machine tax rate that was “inclusive of racing support.”
State Senator Joseph Addabbo, who chairs the Senate Committee on Racing, Gaming and Wagering, said the dispute stems from different interpretations of what the 56% rate was intended to cover. So far, the New York State Gaming Commission has not publicly commented on the proposed payment plan.
The issue comes just weeks after Resorts World became the first full-scale commercial casino to open in New York City. The property, owned by Malaysian gaming group Genting, won one of three downstate casino licenses awarded in December and began operating live table games in April.
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Resorts World records first $1 million jackpot winner
That launch was quickly followed by a significant player win. Last month, Resorts World NYC announced its first jackpot winner to receive more than $1 million from a single payout.
According to the casino, a New York City resident won $1,009,357.41 while playing the Aristocrat Million Dollar Dragon Link progressive slot machine during the early hours of May 14.
The jackpot was triggered during a bonus feature that awarded the game's grand prize. The winner, who requested anonymity, works in Manhattan, according to the casino. The payout occurred slightly more than two weeks after the property's launch as a commercial casino, marking the first seven-figure jackpot awarded at the venue since opening.
“This is a monumental moment not only for one incredibly lucky New Yorker, but for Resorts World New York City and the entire state,” said Genting Americas East President Robert DeSalvio.
“Jackpots like this create excitement for our players while also reinforcing the positive economic impact gaming has on New York City and New York State. When our guests win big, New York wins big.”
