Forcing a separate payment on top of the existing tax would effectively equate to an overall tax of 76 per cent
Resorts World New York City, New York City’s first fully-fledged casino, is fighting hard to persuade New York Governor Kathy Hochul to include a tax it has to pay to the horse racing industry in its overall tax.
The operator says that if the payment for the horse racing industry isn’t taken from the 56 per cent tax it currently pays to the state, it would effectively pay a 72 per cent tax. The matter is expected to end in court.
Resorts World New York City is locked in discussions over whether it needs to pay the $150m a year to the state’s horseracing industry on top of its existing tax. Resorts World has even put forward that it could be forced to axe expansion plans at its Queens venue if forced to pay the higher rate.
Resorts World’s lawyers have said that the language in its casino application stating it will pay a ‘tax rate of 56 per cent, inclusive of racing support’ although New York officials claim they didn’t agree to those actual words..
“By law, tax rates do not, and have never, included racing support payments,” Hochul spokesperson Gordon Tepper said in a statement to New York Focus. “The State’s priority is to generate substantial tax revenue for public education and mass transit, ensure continued support for the racing industry, and deliver the investment, jobs and economic benefits Resorts World promised for Southeast Queens & New York State.”
Resorts World spokesperson Stefan Friedman said: “We are having constructive conversations with the state and are hopeful about continuing to build on our successful partnership.”
The other two New York City casinos have been able to agree to a much lower tax rate than Resort World’s 56 per cent. Bally’s Bronx will pay 30 per cent and Metropolitan Park will pay 25 per cent, respectively. Resorts World, owned by the Malaysian conglomerate Genting, says it w. (State officials say the other two casinos will make the payments separately, and they have raised no public objections.)
Queens State Senator Joe Addabbo said: “Based on what they tell me, the jeopardy comes with the lenders. If 56 per cent turns into 72 per cent, I think any rational person would see that as a problem, let alone a bank.”
Forcing a separate payment on top of the existing tax would effectively equate to an overall tax of 76 per cent Resorts World New York City, New York City’s first fully-fledged casino, is fighting hard to persuade New York Governor Kathy Hochul to include a tax it has to pay to the horse racing industry