Queens Democrats Urge Hochul to Prevent 72 Percent Tax Rate at Resorts World New York City
TL;DR — Queens Democrats urged Gov. Kathy Hochul to cap Resorts World New York City’s slot tax at 56% instead of allowing a 72% combined rate that includes separate horse racing funding. The Aug. 25 letter warns of risks to billions in investment and thousands of jobs. A decision is expected soon.
SCCG Take — Clear separation of tax components at approval prevents later disputes that chill expansion capital. Regulators and operators must align commitments before licenses issue to protect project momentum.
Queens Democrats have sent a letter urging New York Gov. Kathy Hochul to intervene in a tax dispute that could impose a 72% slot tax rate on Resorts World New York City. Ten local lawmakers addressed the matter in an Aug. 25 letter to Brian O’Dwyer, chairman of the New York State Gaming Commission. They described the potential rate as excessively high and called for immediate resolution to protect investment and jobs.
The dispute arises from differing interpretations of Resorts World’s obligations. The casino, owned by Genting, opened as a slots parlor in Jamaica in 2011. It secured a state license this year to add live table games including baccarat, blackjack and craps.
Tax Calculation at Issue
As part of its bid for a full casino license, Resorts World proposed a 56% tax rate on slot revenue that included support for the horse racing industry. The facility currently pays that rate. The seven-member Gaming Commission, which includes five Hochul appointees, contends the 56% does not cover a separate mandated funding obligation to horse racing. That requirement adds 16% of slot revenue, producing a combined 72% rate.
The additional payments would total about $150 million annually over the 15-year contract. The existing 56% rate ranks among the highest in the US. Casinos in Atlantic City pay 9.25%, Michigan imposes 19% on Detroit properties, and Ohio applies 33%.
Economic Risks and Calls for Clarity
State Sen. Joe Addabbo, chairman of the Committee on Racing, Gaming, and Wagering, said the governor’s office must step in because the Gaming Commission falls under its auspices. The letter warned that uncertainty threatens billions of dollars in private investment, thousands of jobs, local businesses and the communities represented. Signatories included Rep. Gregory Meeks, chairman of the Queens Democratic Party, along with state Sens. Leroy Comrie and James Sanders, several assembly members and city council members.
The lawmakers stated that Resorts World should pay the offered 56% slot gaming tax while the state maintains full horse racing support under existing law. They stressed accountability on both sides. The dispute could affect the planned $4 billion casino and entertainment expansion expected to create union construction jobs, permanent employment and opportunities for local and minority contractors. As reported by the New York Post, the group sought resolution before a decision expected soon.
Reporting: Yogonet International
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Ambiguous tax terms at licensing threaten billions in New York casino investment and prove regulators need ironclad agreements upfront.
We've guided operators through every major US licensing process, and this dispute shows what happens when tax obligations aren't nailed down before the license prints. A 72% combined rate would be untenable anywhere, let alone in competitive New York. Clarity at approval protects capital and momentum — lessons every regulator and licensee must learn.
- Resorts World faces potential 72% slot tax vs. agreed 56% after separate horse racing funding added
- $150M annually at stake over 15 years; existing 56% already among highest in US
- Queens Democrats warn unclear tax terms threaten billions in investment, thousands of jobs
SCCG angle: SCCG works with regulators and operators across every US market to structure tax, licensing, and funding agreements before approval — preventing exactly this kind of dispute. Our regulatory advisory team helps clients secure clear commitments that protect capital deployment and avoid post-license surprises.
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