Resorts World Requests Tax Plan Revision in Competitive New York Casino Licensing

Resorts World is urging New York authorities to revisit the tax structure planned for the highly anticipated downstate casino licenses. The request has stirred a debate regarding the fees operators should pay to enter the lucrative New York gaming market. Insiders suggest that Resorts World feels its current tax commitments put it at a notable disadvantage compared to its remaining rivals.

Confusion Over New York’s Changing Tax Framework

Located in Queens and owned by Malaysia’s Genting Group, Resorts World’s proposal surprised analysts when it voluntarily accepted the highest tax rates among the contenders. Their offer includes a 56% tax on slot machine revenue and 30% on table games, among the steepest in the U.S. market. By contrast, Hard Rock’s proposal, linked to Mets owner Steve Cohen for a nearby project, opts for a 25% tax rate, while Bally’s request for its Bronx casino targets a 30% tax.

Sources close to Resorts World’s strategy report that the company plans to argue that the disparity between its tax obligations and those of its competitors is too large. They may propose the state either lower their own tax rates or increase the rates for others. This marks a strategic shift for Genting, which had initially highlighted its steep offer as proof of commitment and faith in the success of a major resort at the Aqueduct site.

New York gaming regulators are finalizing their financial review after a decade-long process. The state aims to leverage the licenses to secure long-term revenue streams amid ongoing budgetary challenges and potential tax reforms.

Unique Tax Bidding Raises Questions as New York Reviews Casino Applications

Governor Kathy Hochul is considering financial strategies to manage possible budget gaps, drawing increased scrutiny to the revenue projections submitted by casino bidders.

Currently, three bidders remain after local approval panels eliminated several early contenders — a distinctive preliminary filter before state-level evaluations. The withdrawal of MGM last month left exactly as many bidders as available licenses, although it’s not guaranteed all will be awarded.

Experts note that allowing bidders to self-select tax rates is an unusual practice aimed at maximizing state revenue. However, some industry observers warn that excessively high tax rates could limit operators’ ability to invest in casino amenities and incentives, which are vital for maintaining a competitive edge.

As the Gaming Facility Location Board inspects proposed sites and prepares to make its decisions by early December, lawmakers express a desire for stable tax policies. They emphasize the necessity for financial arrangements that do not require subsequent adjustments, ensuring new casinos do not return seeking tax relief shortly after opening.