A group of Queens Democrats is calling on New York Gov. Kathy Hochul to resolve a regulatory dispute that could raise Resorts World New York City's slot tax rate to 72 percent, putting the casino's expansion and local jobs at risk
Queens lawmakers are urging New York Gov. Kathy Hochul to intervene in a regulatory standoff that could push Resorts World New York City's slot machine tax rate to 72 percent. The dispute centers on how the state calculates the casino's obligations to both the state and the horse racing industry, with local officials warning that the outcome could impact billions in investment and thousands of jobs in Queens.
Regulatory Dispute Over Slot Tax Rate
On August 25, ten Queens Democratic legislators sent a letter to Brian O’Dwyer, chair of the New York State Gaming Commission, and to Gov. Hochul, asking for immediate action to resolve the tax issue. The lawmakers argue that a 72 percent tax rate on slot revenue is unsustainable for Resorts World New York City, which is owned by Genting. The casino currently pays a 56 percent tax rate on slot revenue, one of the highest in the country, but the Gaming Commission contends that Resorts World must also make separate payments to support the horse racing industry, effectively raising the total rate to 72 percent.
Casino Expansion and Financial Stakes
Resorts World New York City, which opened in Jamaica, Queens in 2011 as a slots-only facility, was granted a state license in 2026 to expand into live table games such as baccarat, blackjack, and craps. As part of its bid for a full casino license, Resorts World proposed maintaining the 56 percent slot tax rate, which already includes payments earmarked for horse racing. However, the Gaming Commission, which has a majority of Hochul appointees, maintains that the casino's separate statutory obligation to the racing industry should be added on top of the 56 percent, resulting in a combined 72 percent rate. This additional 16 percent would amount to roughly $150 million per year over the 15-year license term.
Comparison With Other Casino Markets
The proposed 72 percent effective tax rate would be among the highest for any U.S. casino. For comparison, Atlantic City casinos pay a 9.25 percent state tax on slot revenue, while Detroit casinos in Michigan pay 19 percent, and Ohio casinos pay 33 percent. The lawmakers' letter warns that the uncertainty over the final tax rate threatens not only Resorts World's planned $4 billion casino and entertainment expansion, but also union construction jobs, permanent casino employment, and opportunities for local and minority contractors in Queens.
Lawmakers Seek Clarity and Accountability
The group of lawmakers, including state Sen. Joe Addabbo, Rep. Gregory Meeks, state Sens. Leroy Comrie and James Sanders, Assembly members Alicia Hyndman, Stacey Pheffer Amato, Kahleel Andersson, and City Council members Nantasha Williams, Ty Hankerson, and Selvena Brooks-Powers, is calling for the state to honor the 56 percent slot tax rate offered by Resorts World while ensuring continued support for the horse racing industry. They also emphasize that both casino applicants and the state should be held accountable to the commitments made during the licensing process. The dispute remains unresolved, with a decision expected soon from the governor's office or the Gaming Commission.
In the context of U.S. casino regulation, the slot tax rate refers to the percentage of gross slot machine revenue that a casino must pay to the state or other designated beneficiaries. High tax rates can significantly affect a casino's profitability and its ability to invest in expansion, jobs, and community programs. The way these rates are calculated—and whether additional obligations are counted separately or included—can have major consequences for both operators and the local economy.
