In 2019, New York State passed legislation that allowed a VLT facility to operate in Orange County for the first time, recognizing the obvious impact the new Resorts World Hudson Valley would have on existing harness racing operations and VLT facilities. The legislation set out three very specific conditions that would need to be met in order for Resorts World Hudson Valley to open and operate in Orange County:
1) The first was the requirement that 8.75% of the VLT net profits at Resorts World Hudson Valley be paid to the horse breeders at Monticello Raceway and that 1.25% of the net profits at Resorts World Hudson Valley be paid to the trotting breeders’ fund. These payments are made in accordance with the Act.
2) Second, a mitigation agreement had to be entered into with MGM Yonkers. The agreement was required by law because MGM Yonkers’ VLT revenues were likely to be cannibalized by the Orange County facility. This condition was also met, and the mitigation agreement entered into provides for MGM Yonkers to receive significant quarterly payments from Resorts World Hudson Valley.
3) The third condition was that Resorts World Hudson Valley would reimburse the Yonkers horse breeders for any reduction in their premiums compared to the amount received in 2018, the year before the Act was enacted. In addition, the payment to be paid to the Yonkers horse breeders would also reflect an inflation adjustment based on the Consumer Price Index (CPI) to ensure that the premiums paid to the Yonkers horse breeders are truly comparable to what they received in 2018. Importantly, the payment to be paid to the Yonkers horse breeders is completely separate from the 8.75% and 1.25%, respectively, that the Act requires to be paid to the Monticello horse breeders and breeders (as stated above, the Monticello horse breeders and breeders have received and will continue to receive the payments to which they are entitled).
Unfortunately, this third condition has not been met since Resorts World Hudson Valley opened in late December 2022. Since the Orange County property’s first full year of operation ends on December 31, 2023, the measurable year is 2023, and Yonkers purses have declined as expected, requiring Resorts World Hudson Valley to make the required payments to Yonkers riders to maintain purses at 2018 inflation-adjusted levels.
The SOA has made numerous demands for payment to Resorts World Hudson Valley since April 2024, but did not receive a response until late July, even though the SOA’s attorneys, Meyer, Suozzi, English & Klein, PC, of Garden City, New York, had already prepared a lawsuit to collect the amounts due.
Resorts World Hudson Valley is subject to the obligations set out in the relevant laws, which it has accepted as a condition of its operations. Like all parties operating these alternative gaming facilities, Resorts World Hudson Valley has reaped the tremendous benefits of operating the facility. In fact, Resorts World Hudson Valley was reported to have generated approximately $1 billion in gross gaming revenue in calendar year 2023. However, the payments required by law – to all affected parties – are simply a cost of doing business, costs that Resorts World Hudson Valley was fully aware of even before it began operations.
From the New York Standardbred Owners Association
