New York Commission Reinterprets Tax Terms on Genting’s Resorts World License
TL;DR — New York authorities intend to apply a 72% tax rate to Genting Resorts World by adding a 16% horse racing levy to the agreed 56% rate, threatening the $7.5B resort and 10,000 jobs. Senator Addabbo and ten Queens Democrats urge Governor Hochul to intervene as the Commission reports to her. The governor’s office states tax rates have never included racing payments.
SCCG Take — Post-award tax reinterpretations like this undermine bidder confidence and raise execution risk for large casino projects. Clear, binding terms at license award are essential to protect investment in regulated expansions.
New York state authorities are set to impose a 72 percent tax rate on slot revenues at Genting Resorts World Casino in Jamaica, Queens. The rate combines the 56 percent levy the operator agreed to upon winning one of three casino resort licenses with a separate 16 percent payment earmarked for the horse racing industry, per the New York State Gaming Commission’s position.
The Genting Group secured its license on December 15 last year following a competitive bidding process. Its planned US$7.5 billion integrated resort on 73 acres is slated for completion in 2030 and is projected to become the largest of its kind in the United States, with a large casino floor, 2,000 hotel rooms, entertainment areas, restaurants, a community park, and approximately 10,000 construction and permanent jobs.
State Senator Joe Addabbo, chair of the state senate Committee on Racing, Gaming and Wagering, has called the effective rate “excessively high.” He urged Governor Kathy Hochul to intervene directly, noting that the Gaming Commission falls under the governor’s auspices.
Lawmaker Concerns and Project Stakes
Ten Democratic lawmakers from Queens, including Rep. Gregory Meeks, sent a letter to Governor Hochul warning that the uncertainty “threatens not simply one company, but billions of dollars in private investment, thousands of jobs, local businesses, and the communities we represent.” They highlighted that the casino already carries one of the highest tax burdens in the country, exceeding New Jersey’s 9.25 percent, Michigan’s 19 percent, and Ohio’s 33 percent.
A spokesperson for Governor Hochul told the New York Post that by law tax rates “do not, and have never, included racing support payments.” The administration’s stated priorities include revenue for public education and mass transit, continued support for the racing industry, and delivery of the investment and jobs Resorts World promised for Southeast Queens.
A highly placed Resorts World source confirmed the parties are engaged in constructive conversations with state officials, as first reported by iGaming Future.
Where the Resolution Lies
How Governor Hochul’s office ultimately rules will set the precedent for whether license terms remain stable after award or remain subject to later additive levies that alter project economics. Operators watching New York’s market expansion will weigh this outcome heavily before committing further capital.
Reporting: iGaming Future
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Post-award tax changes kill trust and capital — if New York shifts terms after bids close, it poisons every future deal.
We built 545 partnerships because terms matter. When a regulator reinterprets a 56% tax as 72% after award, it doesn't just hit one operator — it freezes capital across every US expansion conversation. SCCG sits in rooms where operators decide which markets get the next billion. Regulatory certainty is the currency.
- NY Gaming Commission now claims 16% horse racing levy stacks atop agreed 56% slot tax — Genting facing 72% total
- Senator Addabbo and 10 Queens Democrats urge Governor Hochul to intervene; $7.5B resort and 10,000 jobs at stake
- Governor's office says racing payments were never part of tax rate — legal ambiguity threatens investor confidence statewide
SCCG angle: SCCG works both sides: we help operators stress-test regulatory risk before billion-dollar commitments, and we advise jurisdictions on frameworks that attract — not repel — institutional capital. When tax language gets murky, we connect clients to the legal, lobbying, and finance experts who clarify terms before ground breaks, not after.
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