Queens Democrats are urging New York Gov. Kathy Hochul to intervene in a tax dispute that could push Resorts World New York City’s slot tax rate to 72%.
Ten local lawmakers sent a letter on Aug. 25 to Brian O’Dwyer, chairman of the New York State Gaming Commission, and a Hochul appointee, calling for the issue to be resolved, reports the New York Post.
“A 72% tax rate is excessively high,” said state Sen. Joe Addabbo, chairman of the Committee on Racing, Gaming, and Wagering. “The governor’s office has to step in and resolve this issue. The Gaming Commission falls under the auspices of the governor.”
Resorts World New York City, owned by Genting, opened as a slots parlor in Jamaica in 2011. It received a state license this year to expand its offerings to live table games, including baccarat, blackjack, and craps.
As part of its bid for a full casino license, Resorts World proposed a 56% tax rate on slot revenue, which included payments supporting the horse racing industry. The casino is currently paying that 56% rate to New York.
The seven-member Gaming Commission, which includes five Hochul appointees, argues that the 56% rate does not account for Resorts World’s separate obligation to provide mandated funding to the horse racing industry.
This additional obligation would amount to another 16% of slot revenue, bringing the combined rate to 72%. The extra payments would total about $150 million annually over the 15-year contract.
The 56% tax rate already paid by Resorts World is among the highest, if not the highest, in the US. By comparison, casinos in Atlantic City, New Jersey, pay a 9.25% state tax rate. Michigan imposes a 19% tax on Detroit casinos, while Ohio’s rate is 33%.
The lawmakers said the dispute requires “immediate resolution,” with a decision expected soon.
“The uncertainty now threatens not simply one company, but billions of dollars in private investment, thousands of jobs, local businesses, and the communities we represent,” the letter stated.
The letter was signed by Addabbo; Rep. Gregory Meeks, chairman of the Queens Democratic Party; state Sens. Leroy Comrie and James Sanders; Assembly members Alicia Hyndman, Stacey Pheffer Amato, and Kahleel Andersson; and City Council members Nantasha Williams, Ty Hankerson, and Selvena Brooks-Powers.
The lawmakers also warned that the tax dispute could affect Resorts World’s planned $4 billion casino and entertainment expansion. The project is expected to support union construction employment, thousands of permanent jobs, and opportunities for local and minority contractors.