Lawmakers Push Back On Resorts World NYC Tax Rate
Ten Queens Democratic lawmakers have signed a letter urging New York State Gaming Commission Chairman Brian O'Dwyer to cut the effective tax rate Resorts World New York City says it owes the state, arguing the real figure runs well above the 56% the operator bid to win its downstate casino license.
The letter, sent August 25, 2026, and reported by the New York Post, asks Gov. Kathy Hochul's office to step in, warning that the dispute threatens the scale of Resorts World's planned expansion in Jamaica, Queens, part of the wider online casino and land-based market the state regulates.
A Dispute Over What Counts As Tax
Genting's Resorts World bid a 56% tax rate on slot-machine gross gaming revenue to win one of New York's three downstate casino licenses.
The Gaming Commission says the casino also owes a separate 16% of slot revenue toward the state's horse racing industry under its licence conditions, a mandated payment that pushes the real total to 72%. Resorts World's own reading is that its 56% bid was meant to cover all taxes and fees combined.
"The Gaming Commission determined that Resorts World would pay a 56% tax rate on slot-machine gross gaming revenue, just as Resorts World proposed to pay in seeking the license,"
Gaming Commission spokesperson Lee Park told the New York Post. "By law, this gaming-revenue tax is separate and apart from their other required statutory obligations, which are not taxes."
Lawmakers Warn Of Knock-On Costs
The letter's signatories include Rep. Gregory Meeks, who also chairs the Queens Democratic Party, and State Sen. Joe Addabbo, chairman of the New York Senate Committee on Racing, Gaming and Wagering.
They argue the combined obligation, which Resorts World says could total more than $500 million before Bally's Bronx and Metropolitan Park open around 2030, puts billions in private investment and thousands of jobs at risk.
"The uncertainty now threatens not simply one company, but billions of dollars in private investment, thousands of jobs, local businesses, and the communities we represent," the letter states, adding that Resorts World should pay the 56% rate it offered while the racing industry continues to receive its full statutory support.
What It Means For New York's Casino Market
New York's downstate casino licensing process was one of the most competitive in recent U.S. gaming history, with operators bidding aggressively on tax rates to win one of just three licences.
Resorts World's 56% bid was already among the highest effective tax rates offered by any commercial casino in the country, so a dispute over whether that number can climb further, to 72% once racing-support payments are added, cuts to the heart of how sustainable those winning bids actually are once a casino is up and running rather than still competing on paper.
How this plays out matters beyond Resorts World. New York's other two downstate licensees, Bally's Bronx and MGM's Metropolitan Park, are watching closely, since any change to how the state calculates a casino's real tax burden would likely apply to their own licences too.
For now the Gaming Commission's position stands, and the dispute is headed toward further negotiation, or potentially litigation, rather than a quick resolution.
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