• Times Union staff photo by John Carl D'Annibale: Bank of new progressive VLT's, at Racino Tuesday January 24, 2006. One of these machinesrecently payed out $195,700.00, the biggest single payout of any VLT in New York State. FOR CROWE STORY Photo: John Carl D'Annibale / Albany Times Union

Photo: John Carl D'Annibale
Times Union staff photo by John Carl D'Annibale: Bank of new progressive VLT's, at Racino Tuesday January 24, 2006. One of these machinesrecently payed out $195,700.00, the biggest single payout of any VLT in New York State. FOR CROWE STORY
Albany
With 1,000 new video lottery terminals coming to the Resorts World racino at Aqueduct in Queens, supporters of thoroughbred racing are worried that the new devices could eventually detract from the money that the VLT parlor gives to the state's race tracks.
That's because profits from the new VLTs, which would be on top of the 5,525 machines already at Resorts World, wouldn't add to the 16 percent of revenue that now goes to the New York Racing Association to support horse racing purses, operations and capital improvements at its tracks, including Saratoga Race Course.
And with the new machines in the same location, the take from the existing units could be diluted, said participants at a Monday meeting of the state Franchise Oversight Board, which oversees racing, as well as the VLT racinos.
"Dilution ... is a concern," Resorts World President Ryan Eller said when Oversight Board member James Towne asked about the impact of the new VLTs on the money the racino sends to NYRA.
Towne, from Saratoga, asked Eller if it required a "leap of faith" to be sure the new machines, along with an ambitious expansion plan at Resorts World, would overcome the dilution of revenue.
"That is correct," said Eller.
The new machines will officially be part of Nassau County's Off Track Betting operation, and the profits will go to the Long Island county.
In finalizing the 2016-17 state budget, state lawmakers and Gov. Andrew Cuomo allowed for the county's OTB lottery terminals to go in Resorts World, even though it's located in Queens County. The financially ailing Nassau OTB had been trying to find a place for a VLT parlor in the county, but had met opposition from communities there.
Monday's brief back-and-forth between Towne and Eller came amid a number of developments for Resorts World and NYRA.
Eller told the Oversight Board that Resorts World is planning to build a 400-room hotel and convention center and open it by April 2019. The project would need a green light from the state board. 
The expansion is planned as New Jersey residents will vote in November on whether to establish new full-service casinos north of Atlantic City. One would go in the Meadowlands, just 22 miles from Resorts World.
Gaming industry experts believe a substantial number of Resorts World VLT players would be drawn to the wider variety of gambling options at the Meadowlands.
The discussion also comes as horsemen and supporters of Saratoga are increasingly on edge about how much money they'll get from Resorts World. That can amount to as much as $60 million annually.
The VLT money from the Aqueduct parlor is guaranteed to stay at 2013 levels, indexed to inflation. But track supporters worry it may be hard to increase that funding going forward. 
Also on Monday, the Oversight Board agreed to permit Resorts World to refinance $450 million in loans and revolving credit, which could help fund the hotel and convention center.
It wasn't clear what NYRA thinks about Resorts World's expansion plan. Even though Resorts World leases the use of the Aqueduct track and racino area from NYRA, Eller said, "We haven't talked to them about this yet."
rkarlin@timesunion.com • 518-454-5758 • @RickKarlinTU