New York State's legislature has passed legislation enabling the state gaming commission to distribute funds directly to the horse racing industry — a move that Resorts World New York City called the culmination of commitments it made throughout the competitive casino licensing process.
Stefan Friedman, a spokesman for Resorts World NYC, credited the legislative action as fulfilling a framework the Queens-based venue consistently proposed. "We are grateful that the Legislature made the necessary changes allowing for the state gaming commission to directly distribute funds to the horse racing industry," Friedman said in a statement issued June 5, 2026.
At the center of the arrangement is Resorts World NYC's tax structure: a 56 percent inclusive tax rate on slot revenue earmarked for the MTA, the State Education Fund, and the horse racing industry, alongside a separate 30 percent tax rate on table games that further supports the MTA and education. Friedman noted the property is already delivering more funding to each of those entities than any other private enterprise in New York State history — a claim the operator says was embedded in every financial model and testimony submitted during the bidding process.
For hospitality operators watching New York's evolving gaming landscape, the mechanics matter. Properties competing for patrons in the New York metro area — from destination entertainment venues to hotel-casino hybrids — will be sizing up how racing-tied hospitality assets benefit from a steadier, state-administered funding pipeline. Racetracks with dining, events, and premium hospitality operations depend heavily on the health of purse funds and capital investment, both of which are influenced by how gaming tax dollars flow. Our restaurant and hospitality industry coverage has tracked how gaming-adjacent venues increasingly blur the line between wagering destination and full-service food-and-beverage experience.
The broader context is New York's ongoing effort to formalize its commercial casino expansion beyond the existing video lottery terminal facilities. Resorts World NYC, currently operating as a VLT-based gaming hall at Aqueduct Racetrack, is among the frontrunners for one of three full commercial casino licenses the state is expected to award. The direct-payment mechanism for horse racing could reduce friction in how those downstream revenue allocations function once a full gaming license is in place.
Food & Beverage Magazine has covered how integrated resort developments — anchored by gaming but driven by dining and entertainment programming — are reshaping hospitality investment priorities across the Northeast. Operators in that corridor should monitor whether the new distribution structure accelerates capital spending at racing and gaming venues, creating fresh demand for food and beverage programming at these properties.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
