Resorts World New York City Asking Regulators to Rework Casino Tax Rates

^{Resorts World NYC, shown beside its neighboring Hyatt Regency hotel, is seeking reworked tax rates in their efforts to gain one of the three New York City casino licenses. (Photo: @resortsworldnyc on Instagram)}

Resorts World New York City, one of the three remaining contenders for a downstate casino license, is preparing to ask state regulators to rework the proposed tax rates for all competitors ahead of licenses being awarded, according to a report by Bloomberg. 

Resorts World NYC has been one of the top contenders among the three bidders remaining in the New York casino license race for the three available licenses. Bloomberg cited a person familiar with the discussions who said that the Queens-based racino wants the state to either lower its own proposed tax rates or raise the rates in the other two competing bids. 

Resorts World Offered Substantial Taxes in Proposal

In its bid to convert from a racino to a full-scale casino, Resorts World offered to pay a 56% tax rate on slots revenue, as well as a 30% tax rate on table games. The company also said it would pay a $600 million license fee, exceeding the state’s $500 million requirement.

By contrast, the Bally’s Bronx bid is offering a 30% tax on its slot machines along with 10% tax on table game revenue. And the Metropolitan Park submitted by New York Mets owner Steve Cohen and Hard Rock Entertainment offers to pay 25% of slots revenue and 10% on table games, the minimum amounts allowed in the New York process.

Resorts World had framed its willingness to pay a higher tax rate as a commitment to civic duty.

“[The casino approval process] is a once-in-a-lifetime opportunity for the entire state to benefit from new revenue for mass transit and public education,” Resorts World said in a statement. “The tax rates we have presented…reflect our sense of responsibility to our properties across New York State, the greater industry, and the public.”

Lack of Competition Changes Stakes in the Competition

Initially, the tax rates proposed by each bidder were expected to play a major role in determining who the New York State Gaming Facility Location Board (GFLB) would award the three available licenses to before the New York State Gaming Commission finalized those decisions by the end of 2025. When the contest for the three licenses looked competitive, offering more in taxes was one way in which a proposal could stand out from the crowd.

But with MGM’s Empire City Casino in Yonkers dropping out of the race last month, the race is no longer truly competitive. While there’s no guarantee all three licenses will be approved, there’s far less incentive for any company to offer a substantially higher tax rate than other applicants.

The GFLB has told bidders that the final tax rates will be set by state regulators, which means that different facilities could pay different rates based on what they offered. However, some New York officials have said that they hope all license holders will be treated equitably.

“We need sustainable businesses,” New York State Senator Joseph Addabbo (D-Queens) who also serves as the chair of the Senate Racing, Gaming, and Wagering Committee, said via Bloomberg. “I don’t want a business to come back and say they need a reduction. I think the decision board has its work to do.”