New York lawmakers are stepping into an ongoing dispute between state gaming regulators and New York City’s newest casino, Resorts World, but not to settle the disagreement itself. Instead, they are focusing on shielding the state’s horse racing industry from any financial fallout while the issue remains unresolved, and the governor agrees.
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Passing the Buck
The current conflict centers on Resorts World, which became the first newly licensed downstate casino to begin operations in April. The casino and the New York State Gaming Commission disagree over whether Resorts World must contribute more than $150 million annually to support horse racing in addition to paying its standard tax obligations.
In response, leaders in both the State Senate and Assembly introduced legislation on Monday aimed at protecting racetracks from losing funding during the dispute. The bill does not decide who is ultimately responsible for making the payments, highlighting the complex legislative challenges that often arise in major online sports betting states.
The proposal is included within a larger funding package. Under its provisions, the Gaming Commission would be allowed to transfer tax revenue collected from a New York City casino directly to the nonprofit New York Racing Association (NYRA), which operates the state’s three largest racetracks. Existing law places that responsibility on casino operators. The arrangement would take effect immediately but expire after one year.
Governor Kathy Hochul, who controls the Gaming Commission, signaled her support for the legislative measure, as stated by her spokesperson, Sean Butler.
“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,” Butler said in a statement.
However, lawmakers did not include a separate provision sought by Resorts World. The casino had advocated for a requirement that the Gaming Commission make the racing payments directly from the state’s casino tax revenue fund until another New York City casino opens.
Yet, the other two downstate casinos are not expected to open for several years, with the first scheduled for 2030. Until then, Resorts World currently bears the entire cost of the payments, which would eventually be shared once other casinos begin operating.
As a result, uncertainty remains over who would cover any funding gap that could exceed $150 million during the next year. The legislation also leaves unresolved the central legal question: whether racing support payments should be counted as part of Resorts World’s overall 56% tax rate or paid separately, as the Gaming Commission argues.
No Resolution in Sight
According to sources familiar with the matter, state officials have been concerned that the dispute could threaten financial support for horse racing, an industry that continues to receive significant public assistance despite long-term declines. Resorts World has maintained that it has continued making weekly racing-related payments since opening.
The temporary measure effectively postpones a final decision for another year. If Resorts World’s interpretation ultimately prevails, the state could receive less tax revenue than anticipated for public schools and the Metropolitan Transportation Authority. So far, the Gaming Commission has not indicated whether it plans to pursue enforcement action to settle the matter.
The issue has also attracted significant lobbying activity. Resorts World’s parent company, Genting, has retained seven lobbying firms in Albany this year, including Patrick B. Jenkins & Associates, Bolton-St. Johns, and Cordo & Company.
With the legislative session scheduled to conclude this week, lawmakers must approve the bill by Thursday unless they extend their work in Albany.
The dispute represents another chapter in New York’s lengthy effort to expand casino gambling in New York City. That process traces back to a 2013 statewide referendum promoted by former Governor Andrew Cuomo as a strategy for economic development, a move that also highlighted the growing need for accessible gambling help and resources as the state’s gaming landscape continues to evolve.
