Fewer than two months on from the successful rollout of Resorts World New York City's phased multi-year launch, the operator is at odds with the state over a $500M duty. BonusFinder, an online casinos comparison website, reveals all.
Central to this disagreement are payments benefitting the horse racing industry, which Resorts World and fellow licensed operators - Hard Rock at Metropolitan Park and Bally's - agreed to jointly shoulder.
However, with Hard Rock and Bally's expected to open no sooner than 2030, the New York State Gaming Commission is effectively forcing Resorts World to bear the full cost of these payments, totaling over $150M annually.
Resorts World steadfastly disagrees with suggestions that it is solely responsible for what are known as "racing support" grants. As reported by New York Focus, four anonymous sources claim that the Genting-owned operator believes its racing contributions are included in and fulfilled by its tax obligations, rather than being a separate charge.
Operator proposes legislation to mitigate impact of payments
As things stand, Resorts World contends that the current payment mechanism will see the company pay an extra $150M on top of existing taxes each year until 2030, when Bally's and Hard Rock will donate their respective racing shares.
In a bid to dampen the blow of an additional $500M burden over the next four years, Resorts World has presented new legislation that would change where its horse racing contributions are pulled from.
Under proposed legislation, horse racing commitments would be taken "directly from the commercial gaming revenue fund." Until now, that pot had comprised funds dedicated to the casino's education and transport obligations. The bill also assures that Resorts World will return to the NYSGC's standard payment framework once additional operators enter the fray.
One source noted that the gambling operator is not attempting to curb its financial pledges, but is instead presenting a technical change to modify how these transactions may be processed.
Stefan Friedman, a Resorts World spokesperson, outlined that the company plans to "strictly abide by the payments we agreed to in our bid for winning a commercial license."
Friedman, who works alongside Resorts World via consulting firm Actum, used the operator's longstanding state commitments of $7.5B as evidence for unwavering compliance: $4.5B to education, $2.5B to horse racing interests and $500M to the Metropolitan Transportation Authority.
According to Friedman, Resorts World has already taken money from its existing tax rate to submit weekly payments to the New York Racing Association since its April launch. As such, this latest maneuver marks a continuation of an ongoing policy and not a sudden course change.
But, importantly, those transactions are separate from the multi-party horse racing commitments. What's more pressing is this: the intricacies of the agreement between Resorts World and the NYSGC pertaining to racing funding are widely misunderstood - even by the entities involved.
Uncertainty surrounds horse racing funding agreement
Before being granted a state casino license, on 15 December, 2025, each of Resorts World, Bally's and Hard Rock presented independent tax rate proposals, specifying precise fund allocation. The NYSGC outlined that successful bidders would only pay what they had proposed, therefore precluding tax hikes in the future.
In its application, Resorts World suggested a 56% annual tax rate due to be "inclusive of racing support."
Although the Malaysian-headquartered operator may have been under the assumption that the Commission would agree to those terms, the official NYSGC website declares that all taxable income is to be attributed to state transport and education portals. There exists no indication that racing support is to stem from any such revenue.
Moreover, there is a belief within Resorts World that its own tax rate is unnecessarily excessive compared to its competitors. In November 2025, the company sought to create a "standardized" tax rate for all land-based commercial casinos - with Bally's (25%) and Hard Rock (30%) paying significantly less in annual fees for video slot terminals. That particular motion failed to gather headway.
Around the same time, Resorts World evaluated the possibility of lowering its $600M licensing fee; the floor cost for New York City operators stands at $500M, and transcending this minimum charge was originally viewed as a potential boon for the firm's application. Ultimately, it transpired that Resorts World had merely tied itself to expensive monetary obligations.
The move to reshape horse racing support payments continues a pattern seen throughout Resorts World's tenure in New York City, both as a licensing candidate and full-fledged venue.
New York lawmakers opposing Resorts World's legislation
Resorts World had hoped that its revised horse racing taxing provision would be included in the FY2027 budget ahead of its official signing by Governor Kathy Hochul in May.
Despite indications that some lawmakers understood and sympathized with Resorts World's budget request, Gov. Hochul's final budget draft made no mention of the casino's legislation. The NYSGC is eager to maintain the status quo, repeatedly shooting down ideas from operators seeking to modify previously agreed rules.
Resorts World itself is quite familiar with the Gaming Commission's stringent attachment to rule preservation; the regulatory authority has said that attempts to amend taxation and licensing requirements would "undermine" what has been a faithful process.
Senator: "There is an issue" with tax rate
As Resorts World and the NYSGC continue to strive for an agreement over this $500m quarrel regarding payment structures, one senator has publicly acknowledged a transparent problem with current rulesets.
Senator Joseph Addabbo - a vehement online casino gaming advocate in New York - stated that "there is an issue" with the existing law:
"It's a matter of interpretation," explained the Senate Committee on Racing, Gaming and Wagering Chair. He continued, touching on clear communication issues: "That's part of the problem, to get people at a table to decipher, what is the meaning of the 56% (tax rate)?"
For Resorts World, the meaning is clear: the 56% tax rate applies to education, transport and horse racing. On the other side of the coin, the NYSGC believes the 56% rate only accounts for education funding and metropolitan transport charges.
And, with neither Bally's or Hard Rock yet commenting on their own racing support schemes, this matter must be resolved by New York City's sole retail commercial casino and its regulator.
