Resorts World NYC Fights Over Racing Payments

Dr. Annelies De Vos · 2026-06-03

Resorts World New York City just opened the city's first full-scale casino back in April. But already, it's in a heated dispute with state regulators. The fight is about money -- specifically, payments meant to support New York's horse-racing industry. And the outcome could affect the whole state's gambling landscape. ### The Core Disagreement At the heart of this is a simple question: Are the racing support payments, which are worth more than $150 million each year, already included in the casino's existing 55% slot machine tax rate? Or do they have to be paid on top of that? Resorts World says the payments should be part of that tax rate. State regulators say no -- they want the casino to pay extra. That's a huge difference. For a casino that's still finding its footing, an extra $150 million a year is a lot of pressure. ### Why This Matters Now Timing is everything here. Resorts World is currently the only full-scale casino operating in downstate New York. That gives it a unique position -- but also makes it a target. The state is counting on casino tax revenue to fund education, infrastructure, and yes, horse racing. Horse racing in New York is a big deal. It's not just about the sport -- it's about jobs, tourism, and tradition. The racing industry has been struggling for years, and these payments are seen as a lifeline. But forcing a new casino to shoulder that burden alone could hurt its ability to compete. ### What's at Stake If Resorts World loses this fight, it could set a precedent for other casinos that open later. The state plans to award three more downstate casino licenses in the next few years. If the first one has to pay extra, the others might too. On the flip side, if Resorts World wins, the racing industry might lose a key source of funding. That could mean fewer races, less money for breeders, and potential job losses. ### A Broader Look at Casino Taxes Casino taxes are always a hot topic. In New York, slot machines are taxed at a rate of around 55% -- one of the highest in the country. For comparison, Nevada taxes slot revenue at about 7%. Even Pennsylvania, which has a high tax rate, is around 35%. Here's a quick look at how New York compares: - Nevada: 7% slot tax - Pennsylvania: 35% slot tax - New York: 55% slot tax That high rate already makes it tough for casinos to turn a profit. Adding another $150 million on top could be a real problem. ### What Happens Next Resorts World is now asking state lawmakers for help. They want a legislative fix that clarifies whether the racing payments are included in the tax rate or not. That's a smart move -- it takes the decision out of the hands of regulators and puts it with elected officials. Lawmakers have a tough choice. They could side with the casino and risk hurting the racing industry. Or they could side with the regulators and risk making New York less attractive for future casino investors. Either way, this dispute is far from over. And it's a story worth watching for anyone interested in the future of gambling in the United States. ### Final Thoughts This isn't just a legal squabble. It's a test of how New York balances its goals: supporting a struggling industry, funding public services, and creating a healthy casino market. The decision could shape the state's gambling landscape for years to come. For now, Resorts World is fighting hard. And with $150 million on the line, you can see why.