Why No One Wins in NY's Gambling Industry

The slot machine at Resorts World Catskills in upstate New York and a slot machine at Resorts World New York City appear identical to players. But the one in the Catskills hands over 37% of its revenue in taxes while the one in the city pays 66%. And a different machine at that New York City venue pays yet another tax rate, 60%, because it’s assigned to neighboring Nassau County’s off-track betting corporation.

Welcome to the gaming industry in New York, where market forces run a distant second to politics, limiting the payoff to both casino companies and state coffers. And while boosting local economies is the argument that advocates always make for legalizing casino gambling, the rules in New York do their best to blunt the industry’s economic impact. While politics is inevitably a factor in regulated industries, insiders agree that New York stands out for hindering the success of its casinos.

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