New York Gov. Andrew Cuomo gave further details on June 5 regarding his proposed casino expansion plans for the state. In addition to having the first three new casinos be located in upstate regions, Cuomo proposed that successful developers pay an upfront franchise fee of $50 million to the state, according to a report in the Blood-Horse.
One new proposal causing concern in the racing industry is the governor's planned tax rate on the new casinos – just 25% of gross gaming revenues – a lower rate than what the state's racetrack-based casino operators pay.
The administration defended the lower tax rate, saying the high capital expenditures and number of jobs the new facilities could create place “significant requirements on the casinos that make up for the tax rate.”
The bill still needs pass the Legislature, before it would then need to be approved by voters in a statewide referendum that Cuomo hopes will occur this November.
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