Legislators in New York punted today on whether Resorts World New York City owes the state $150 million per year in horse-racing subsidies. Resorts World was quick to praise the lawmakers.
The bill, which passed on June 5, sidesteps the state Gaming Commission, which has been deadlocked with Resorts World. As reported by New York Focus, the bill “would not determine who ultimately owes the money, but is meant to protect racetracks against any potential loss of funding.”
Prior to the new legislation, casinos were responsible for sending subsidy money directly to horse tracks. Under the bill, taxes paid by New York City casinos will be forwarded from the New York State Gaming Commission to the New York Racing Association, a nonprofit that runs the Empire State’s three largest racing ovals. The law sunsets in a year.
Gov. Kathy Hochul blessed the legislature’s solution, saying, “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.”
Bennett Liebman, a professor of government at Albany Law School, complained to New York Focus, “This whole episode makes little substantive sense. How do you plan to build a $5.5 billion casino without knowing for certain whether millions of dollars in required racing-support payments are included in your tax payments?”
However, Resorts World spokesman Stefan Friedman was upbeat. “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 toward 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,” Friedman continued. “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.”
The Resorts World representative concluded, “With this issue resolved, we look forward to working in partnership with the state and continuing our standing as New York’s largest taxpayer.”
