New York casinos are benefiting from the combination of a jump in gross revenue and a lower tax bill, thanks to the state’s decision to grant requested tax cuts to mitigate losses due to the Covid-19 pandemic.
According to a report in Schenectady’s Daily Gazette, all four commercial casinos in New York saw substantial increases in revenue, and three of the four saw their tax bills lowered. The result is that cities like Schenectady are receiving bigger payments than before the reductions, because of the overall health of the industry.
The state lowered the slot tax for Rivers Casino and Resort Schenectady, which had been the highest in the state, from 45 percent to 30 percent in 2021. The casino generated $137 million in slot win.
The state keeps 80 percent of the slot tax, and distributes the other 20 percent to the local communities. According to information obtained by the Daily Gazette under a Freedom of Information request, the portion of revenues distributed to Schenectady last year was larger than payments before the tax cut.
“We’re pleased that the (New York State Gaming Commission) approved our request for a lower slot tax rate, especially given economic and competitive challenges faced prior to, and throughout, the unprecedented Cobif-19 pandemic,” Tim Drehkoff, CEO of Rivers parent Rush Street Gaming, told the newspaper.
“The new tax rate finally brought tax parity to the upstate casinos, albeit temporarily; Rivers, for no reason, had been required to pay the highest slot tax rate of all the casinos in the state. The temporary tax reduction allowed us to maintain financial solvency, hire back furloughed team members, and continue our contributions toward the economic revitalization of Schenectady.”
The four commercial casinos were allowed to petition the Gaming Commission for a tax cut effective at the start of the state’s 2021-2022 tax year and continuing as far as 2026.
