Dems push Hochul to block staggering 72% tax rate slapped on NYCs first full casino
Queens Democrats are pushing Gov.Kathy Hochul to block a plan that would force the Big Apple’s first full casino to pay a staggering 72% in taxes on its slot revenues.Local lawmakers sent a sharply worded letter on Aug.
25 in defense of Resorts World New York City to Brian O’Dwyer, the chairman of the New York State Gaming Commission handpicked by the Democratic governor.“A 72% tax rate is excessively high,” state Sen.Joe Addabbo, chairman of the Committee on Racing, Gaming and Wagering, told The Post.“The governor’s office has to step in and resolve this issue.
The Gaming Commission falls under the auspices of the governor.”The Jamaica casino, owned by Genting, opened as a slots parlor in 2011 before it netted a state license this year to also offer live table games such as baccarat, blackjack and craps.Resorts World officials proposed a 56% tax rate as it sought a full license — including subsidies to the horse racing industry.That’s the rate the casino is now dishing out to the Empire State.But the seven-member Gaming Commission — which includes five Hochul appointees — argued that the 56% tax rate does not include Resorts World’s separate obligation to pay mandated revenues to support the horse racing industry.This separate obligation would force Resorts World to remit another 16% — or 72% of its slots revenue — to the state and the subsidized racing industry.That’s an additional $150 million a year over the 15-year contract.
The 56% tax tax rate that RW pay is already among the highest, if not highest, in the country.New Jersey’s Atlantic City casinos, by comparison, pay a 9.25% state tax rate.Michigan’s tax rate is 19% on its Detroit casino and Ohio imposes a 33% tax rate.
The 10 lawmakers who signed the letter said the issue requires “immediate resolution” as a decision is expected by Friday.“The uncertainty now threatens not simply one company, but billions of dollars in private investment, thousands of jobs, loc...