- Of the four planned new casinos in New York, three have so far opened
- But reports are that they are underperforming significantly, and missing revenue targets for the first year
In February 2017, the third of New York State’s four new casinos opened its doors to punters. And while these casinos were set for success, it has been reported that their annual gambling revenues are much lower than expected.
More specifically, one of the new establishment’s gross revenue is lower than expected by around 40% – but perhaps this is, as executive director of the New York State Gaming Commission Robert Williams reportedly pointed out, down to the fact that not all of the casinos’ amenities are fully open to the public yet.
The finer figures
In the few months that these three casinos have been open, they have generated over $50 million for the state of New York. Officials that made this announcement on Wednesday did not go into detail about the tax revenue expectation from these casinos for the rest of the year.
Some New York officials have noted this shortcoming with a degree of patience and understanding, seeking to make aware the fact that the money spent on the development and construction of these casinos – as well as that spent on job creation and employee training – had gone above budget.
It is reported by Reuters that Jeff Gural – who owns the Tioga Downs Casino in Nichols, NY – campaigned for a casino license to operate believing that taxes paid to the state of New York for the first year would be around $32 million.
But at this point, the figure is at just $13.3 million. Gural does allegedly hope, though, that the opening of a new hotel later on this year will increase that figure somewhat.
However, it is suggested by some that this shortfall is something that all markets experience near the beginning.
Casino by casino
Rush Street Gaming’s Rivers Casino & Resort in Schenectady, NY – which opened its doors in February of this year – has so far reached $56.8 million. Its annual revenue projection by 2019 is $223 million.
And meanwhile, the del Lago Resort & Casino in Tyre, NY – which also opened in February – has generated $63.1 million in its first few months of operation, marking a miss of around 42% of its annual projected revenue of $263 million.
New York’s fourth and final casino to open will be Resorts World, launching in March 2018 in the Catskill Mountains in Thompson, NY.
The state of New York itself will take a set percentage of the slot and table game revenue of each of the four new casinos. In the case of Rivers Casino & Resort, this cut is 45% of slot machine and 10% of table game revenue.
Furthermore, approximately 80% of all collected taxes from these casinos will be put toward education and property tax relief while a further 10% will be given to so called “host municipalities,” and the remaining 10% will go to each casinos’ nearby counties.
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