Yonkers Raceway horsemen are seeking $13.4 million from Monticello Raceway Management, owned by Empire Resorts, for allegedly violating a New York State tax law. The Standardbred Owners Association of NY (SOANY) filed a complaint in Westchester Supreme Court against Monticello’s Resorts World Hudson Valley Casino in Newburgh on July 30. The complaint argues that Monticello is obligated to compensate Yonkers harness racing drivers, trainers, and owners for the lost business at Yonkers Raceway and nearby Empire City Casino.
The complaint alleges that Resorts World’s presence causes a decrease in gambling revenue at Empire City Casino, which subsequently leads to a reduction in the amount paid to the Yonkers Raceway horsemen. Specifically, the complaint focuses on the portion of horse race bets or purse disbursed to the competitors. When Resorts World was granted a license for video lottery gaming in Newburgh, New York State imposed a condition to prevent the potential cannibalization of gamblers from Yonkers Raceway and Empire City Casino, located 43 miles away.
Under this condition, Monticello is required to “account for the difference between the Yonkers Raceway purse in 2018 and now, plus inflation.” Despite generating over $1 billion in wagering revenue in its first year of operation in 2023, Resorts World’s presence led to a decrease in the purse at Yonkers Raceway to $50.8 million in 2023, down by over $2.1 million from 2018. Taking into account an $11.3 million purse adjustment for inflation, SOANY calculated that Monticello owes $13.4 million to the horsemen.
The dispute between Yonkers Raceway horsemen and Monticello highlights the financial impact of new gambling establishments on existing venues and the need for regulatory oversight to ensure fair compensation for all parties involved. As the legal battle unfolds in court, the outcome will have significant implications for the horse racing industry in New York State and beyond.