The New York State Legislature is expected to pass a bill on Thursday containing language that would temporarily protect roughly $150 million in subsidies to the state’s Thoroughbred industry while a dispute between the state and its largest casino operator is ironed out. The bill would direct the New York State Gaming Commission to make regular payments to the various Thoroughbred entities in the state that receive subsidies from Resorts World Casinos for one year. The payments would come out of the taxes that Resorts World currently remits to the state from its casino operations. The dispute revolves around whether the casino company’s new agreement with the state on its tax obligations includes the payments to the racing industry. Resorts World is maintaining that the payments should come out of money generated by the 56 percent tax rate it offered the state as part of its winning bid last year to convert its video-lottery facility adjacent to Aqueduct into a full-blown casino. The state is arguing that Resorts World must make the payments on top of its tax obligations. :: Access the most trusted data and information in horse racing! DRF Past Performances and Picks are available now. Last year, the New York State Gaming Commission granted three companies highly coveted downstate casino licenses after a multi-year bidding process. Resorts World was one of the winning bidders. The license allowed the company to offer a full slate of casino games at the facility, rather than being restricted to video-lottery terminals. The new casino opened in April. Thoroughbred racing interests, including the New York Racing Association, horsemen, and breeders, have received payments from the Aqueduct facility since it opened in 2008. In 2019, the legislature passed a bill that guaranteed a floor for the payments from Resorts World at a “hold-harmless” level based on the subsidies generated that year. New York racing officials who spoke on the condition of anonymity said on Thursday morning that they do not believe the subsidies are ultimately threatened by the dispute. The officials said they did not want to speak for attribution because the racing industry is not a direct party to the negotiations between the state and Resorts World. Stefan Friedman, a spokesperson for Resorts World, said on Thursday morning that the company believes the racing payments should come out of its tax bill. “We will continue to build on our partnership with New York by strictly abiding by the payments we agreed to in our winning bid for a commercial license,” Friedman said. Although officials for the Gov. Kathy Hochul’s office did not immediately respond to requests for comment, a gubernatorial spokesperson issued a statement on Wednesday saying that the governor’s office supports the legislation. The state legislature is expected to adjourn on Thursday unless the current session is extended. “Given the ongoing dispute between the [gambling commission] and Resorts World regarding racing support payments, this legislation is designed to ensure that the racing industry – which has long relied on similar funding – does not suffer adverse consequences,” Hochul's spokesperson, Sean Butler, said in the statement.  The New York Racing Association declined to comment on Thursday.  The language in the legislation would allow the gambling commission to issue the payments to the Thoroughbred industry from Resorts World’s tax obligations for one year. The payments are used to prop up purses at NYRA’s tracks, distribute awards to breeders, and generate revenue for NYRA – including payments on bonds that were issued by the state to completely rebuild Belmont Park. During the bidding process last year, Resorts World, a Malaysian gambling conglomerate, said that its bid was worth $7.5 billion to the state, including an upfront payment of $500 million to the Metropolitan Transit Authority, expected renovations to its existing casino, and anticipated tax payments. :: Want to learn more about handicapping and wagering? Check out DRF's Handicapping 101 and Wagering 101 pages.