The New York legislature passed a bill June 5 that preserves gaming revenues paid to horse racetracks without addressing whether the Resorts World New York City Casino is directly responsible for those payments going forward, according to multiple reports.
The casino and the New York State Gaming Commission have been at odds over how $150 million in subsidies are paid. The commission has taken the position that the subsidy is to be paid directly by Resorts World on top of its 56% tax rate. Resorts World says the racing subsidy should be part of what the casino pays in total taxes.
Prior to the legislation being passed, the casinos were responsible for sending subsidy money directly to the racetracks. Under the new legislation, Resorts World will for one year send all the taxes it pays to the Gaming Commission, which will, in turn, distribute it to the Thoroughbred racing entities in the state, according to report from CDC Gaming.
CDC Gaming published the following statement from New York Gov. Kathy Hochul in support of the legislation: "Given the ongoing dispute between the Gaming Commission and Resorts World regarding racing support payments, this legislation is designed to ensure that the racing industry, which has long relied on similar funding, does not suffer adverse consequences."
Resorts World also supported the legislation.
"We are grateful that the Legislature made the necessary changes allowing for the state gaming commission to directly distribute funds to the horse racing industry," said Stefan Friedman, a spokesperson for Resorts World New York City Casino, which is adjacent to Aqueduct Racetrack.
"Resorts World NYC was consistent throughout the bidding process—in all submissions, financial modeling, and testimony—that our inclusive tax rate of 56% on slots would go towards the MTA (Metropolitan Transit Authority), the state education fund, and the horse racing industry, in addition to the 30% tax rate on tables that further funds the MTA and education. We are also already delivering on our promise that at those rates, each entity will receive more funding from us than from any other private enterprise in New York's history.
"With this issue resolved, we look forward to working in partnership with the state and continuing our standing as New York's largest taxpayer," he continued.
Executives with the New York Racing Association declined to comment. NYRA operates Belmont Park, Saratoga Race Course, and Aqueduct, which is scheduled to shut down June 28.
Resorts World New York City Casino was awarded one of three full-casino licenses for downstate New York. The tax rates cited by Friedman were offered in exchange for the license to upgrade from video lottery games to a full casino. These rates are projected to produce $1.7 billion in tax revenue by 2031.
