New York passes stopgap bill to protect racetrack subsidies
New York's stopgap keeps casino tax money flowing to racetrack purses, but the bigger fight over Resorts World's $150 million subsidy is still unresolved.
New York racing got a one-year bridge on June 5, and that matters immediately for purses, field sizes and the horsemen depending on steady checks to keep the state’s product viable. The legislation keeps subsidy money moving to Thoroughbred racing entities through the New York State Gaming Commission, a temporary fix that buys time for Belmont Park, Saratoga Race Course and Aqueduct as Aqueduct is set to shut down June 28.
The bill does not settle the real fight. The question is whether Resorts World New York City must pay the $150 million racing subsidy on top of its 56% tax rate, as the Gaming Commission has argued, or whether racing support was already built into that tax burden, as Resorts World says. For now, the casino will send its tax payments to the commission, which will distribute the money to racing entities. The arrangement sunsets in one year.
That matters because the money was never a side issue for New York racing. The subsidy was created when the state introduced video lottery terminals to help sustain the industry, and lawmakers expanded the requirement in 2023 so future downstate casinos would keep contributing at roughly 2019 levels, adjusted for inflation. Resorts World, owned by Genting, became the first full-scale commercial casino to open in New York City after winning one of three downstate licenses in December 2025 and opening live table games in April 2026. The dispute now hanging over that operation could affect more than $500 million in payments over the next four years.
Gov. Kathy Hochul backed the stopgap because the racing industry cannot afford a break in funding while the broader issue remains unsettled. Resorts World welcomed the change, saying it was grateful the Legislature allowed the Gaming Commission to directly distribute funds. The New York Racing Association, which runs Belmont, Saratoga and Aqueduct, declined to comment.
The stakes are sharpened by what is coming next. Resorts World’s 56% rate is far above the expected downstate rates for Bally’s Bronx at 30% and Metropolitan Park in Queens at 25%, and neither of those projects is expected to open before 2030. Albany Law School professor Bennett Liebman has said it is hard to build a multibillion-dollar casino without knowing whether racing support is already embedded in the tax structure, while State Sen. Joseph Addabbo said the dispute shows how differently the 56% rate can be read. For New York racing, the one-year fix keeps the lights on. The unresolved question is whether that money stays a protected pipeline or becomes another casualty of the next casino fight.
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