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Decision means Resorts World won’t have to pay extra horse racing fund on top of its 56 per cent tax rate
The New York legislature has approved a bill that means the state gaming commission will directly distribute funds to the horse racing industry.
Resorts World New York City Casino and the New York State Gaming Commission have been at loggerheads over how $150m in subsidies should be paid. The commission had taken the position that the subsidy is to be paid directly by Resorts World on top of its 56 per cent tax rate. Resorts World believed the racing subsidy should be part of what the casino pays in total taxes.
New York Governor Kathy Hochul said: “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.”
Stefan Friedman, a spokesman for Resorts World New York City, said: “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. Resorts World NYC was consistent throughout the bidding process – in all submissions, financial modeling and testimony – that our inclusive tax rate of 56 percent on slots would go towards the MTA, the State Education fund and the horse-racing industry, in addition to the 30 percent 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.”
