Queens lawmakers urge Hochul to resolve Resorts World NYC tax dispute
The dispute could affect the casino’s planned $4bn expansion and future investment in Queens.
US.- Queens Democrats are calling on New York Governor Kathy Hochul to intervene in a dispute over the interpretation of Resorts World New York City’s tax obligations. Ten lawmakers sent a letter to New York State Gaming Commission Chairman Brian O’Dwyer a week ago on August 25 to oppose the regulator’s stance that the venue’s slot tax rate should be raised from 56 per cent to 72 per cent
State Senator Joe Addabbo, chairman of the Committee on Racing, Gaming, and Wagering, said the 72 per cent rate would be excessively high and argued that the governor’s office should step in to resolve the matter. The Gaming Commission operates under the state’s executive branch and includes five members appointed by Hochul.
Genting’s Resorts World NYC opened as a slots parlour in Jamaica in 2011 and received a full casino licence this year. As part of its application, the property proposed a 56 per cent tax on slot revenue. It says that this rate, which it currently pays, was to include funding for the state’s horse racing industry. However, the Gaming Commission maintains that the obligation to fund horse racing is separate and requires an additional payment of another 16 per cent of slot revenue, which would cost Resorts World around $150m annually over 15 years.
The lawmakers said Resorts World should pay the 56 per cent rate it proposed. They argued that the uncertainty threatens private investment, jobs and local businesses. They also warned that the dispute could affect Resorts World‘s planned $4bn casino and entertainment expansion, which is expected to generate construction and permanent jobs and opportunities for local and minority-owned contractors.
