New York Dems Want Gov. Hochul to Nix “Excessive” 72% Casino Tax Rate

New York Democrats are calling on Gov. Kathy Hochul (D) to block an eye-watering 72 percent tax proposal on the Big Apple’s first full-fledged retail casino.

Resorts World New York City, which received one of three downstate casino operator’s licenses, is the only property that is already open for business. It already agreed to pay a high percentage of its revenue in taxes, although a state gaming body has argued that still isn’t enough.

Democrats in the Queens area surrounding the casino responded by calling on Hochul, who initiated the casino licensing process several years ago.

Queens NYC casino facing hefty taxes

10 local lawmakers penned a letter on Aug. 25 to Brian O’Dwyer, chairman of the New York State Gaming Commission and a Hochul appointee. The letter implored the Commission to walk back the 72 percent rate, according to the New York Post.

“A 72 percent tax rate is excessively high,” said state Sen. Joe Addabbo, chairman of the Committee on Racing, Gaming, and Wagering. “The governor’s office has to step in and resolve this issue. The Gaming Commission falls under the auspices of the governor.”

Genting-owned  Resorts World NYC opened in Jamaica Queens as a slot machine den in 2011. It operated as a racino until it received the necessary licensing and approval to expand to a complete retail casino, outfitted with live-dealer table games, blackjack, poker, and more. 

Resorts World proposed a 56 percent tax rate on slot revenue when it submitted its license application to the state. That is easily among the highest rates in the entire country.

However, the Gaming Commission, which includes five Hochul appointees, contested that figure did not account for the casino’s separate obligation to pay a portion of its revenue to fund the horse racing industry. The missing amount would add up to 16 percent, hence the 72 percent total tax requirement.

Room for compromise?

An additional 16 percent in tax supplements would result in an estimated $150 million annually over 10 years. That means the casino would face an estimated tax bill of more than half a billion every year.

For comparison, casinos in nearby Atlantic City, New Jersey, are only required to pay 9.25 percent of their revenue to the state. Atlantic City does not have the same population and allure as New York City, but those conditions are still much more favorable.

“The uncertainty now threatens not simply one company, but billions of dollars in private investment, thousands of jobs, local businesses, and the communities we represent,” the Democrats’ letter read.

The letter also not-so-subtly accused state officials of digging for money and failing to act with integrity by honoring the 56 percent proposal they accepted when Resorts World NYC was given its operator’s license. 

“Applicants must be held to the financial, employment, investment, and community commitments they make to New York,” it read. “At the same time, the State should administer those commitments according to the framework upon which they were offered and evaluated.”

Resorts World is expected to undergo a $4 billion expansion project that will utilize union construction labor and create thousands of permanent jobs. However, that could be in jeopardy if the tax issue isn’t resolved.