A provision in Resorts World New York City’s application to the state for a commercial gaming license seeks to ensure that the proposed Ozone Park development would pay the same tax rate as other downstate casinos once competitors come online, appearing to contradict earlier reports that it had petitioned the state to lower its tax rates after submitting the application.
Resorts World, one of three bids proposals vying for a downstate gaming license, proposed tax rates of 56% on slot machines and 30% on table games when it submitted a supplemental application to the state in October.
Those rates far exceed the state-mandated minimums of 25% for slot ,machines and 10% for table games, with rival bids at Metropolitan Park in Flushing and Bally’s in the Bronx proposing tax rates of 10% on table games. Metropolitan Park has proposed a tax rate of 25% on slot machines, with Bally’s proposing a rate of 30%.
The New York State Gaming Facility Location Board approved all three bids last week in the second-to-last hurdle in the years-long race to obtain a downstate license, with the Gaming Commission set to make a final decision before the end of the year.
A number of reports published in gaming publications last month stated that Resorts World is now urging the state to reconsider its proposed tax rates either by raising the rates for Bally’s and Metropolitan Park or by lowering its tax rates to match those of both developments.
However, in a statement issued to SBC Americas last month, the company denied asking the state to lower its tax rate after submitting its official application.
In its supplemental application to the state submitted in October, Resorts World stipulated that its tax rates should be lowered only if other casinos open with lower tax rates. The company stated at the time that introducing a standardized tax rate for the three casinos would ensure a “level playing field” and avoid any of the developments from being cannibalized.
“If other Downstate Licensees open with lower tax rates on slots or tables, RWNYC’s tax rate should also be lowered because all proposed sites are close together and the same tax rate should apply to maintain a level playing field and avoid cannibalization,” Resorts World said in its supplemental application submitted two months ago.
Resorts World has also indicated that it has no issues paying tax rates of 56% and 30% until the two projects come online.
Resorts World, which already operates a racino with slot machines but no table games, has announced that it will open its casino operations by March 2026 if it is awarded a license by state later this month. Both Metropolitan Park and Bally’s have announced that they anticipate to come online by 2030.
A provision in the Resorts World application viewed by QNS stipulates that the company should pay the same tax rate as both Metropolitan Park and Bally’s when both companies open their doors.
Tom Grech, president and CEO of the Queens Chamber of Commerce, praised Resorts World for being an “incredible partner” in Queens and added that the development would generate billions of dollars in tax revenue for the borough.
“Resorts World has always been an incredible partner to all of Queens,” Grech said. “We are beyond excited for their new casino coming on line and the billions of dollars in tax revenue that will build on their status as the state’s No. 1 taxpayer.”
All four upstate casinos pay a standardized rate of 10% on table games, while an amendment to state laws in 2021 allowed upstate casinos to petition the Gaming Commission to lower their tax rates on slot machines to 30% if they could prove financial hardship. All four upstate casinos currently pay rates of 30% on slot machines.
