New commercial casinos in New York produce less than stellar revenues, far under what was originally projected.
New gaming venues seem to be popping up on a regular basis around the United States. When a new casino has been approved for construction or even during the planning phases, proposals are created to see just how much a new venue can bring in as far as revenues are concerned based on the location, estimated traffic, games on offer, etc. The projected revenues are of course an estimate and it is not common for a venue to bring in as much as was originally projected. New gaming venues hope to at least be successful so they can earn revenues for themselves as well as be of benefit to the community.
Three new commercial casinos that have launched in New York were expected to bring in a certain amount of money once launched. It seems the casinos have actually seen weak earnings and gross receipts are off by around 40%.
A Look at Earnings
So far, the state has been able to earn just over $50 million from the three gaming venues, based on information provided by gambling industry officials during a meeting this past week at the Saratoga racetrack. How much revenue was actually expected from the venues for the year has not been revealed.
Officials have stated they are being patient after experiencing the shortfall and are trying to highlight the positives such as the spending on construction that has benefited the local areas as well as the state along with job creation. New York State Gaming Commission Director Robert Williams pointed out that the full amenities are also not open yet. One could expect that these amenities will be able to bring in additional funds.
Owner of Tioga Downs Casino Jeff Gural produced projected taxes to the state for the first year of operations of the casino to be at $32 million when he was campaigning to obtain one of the casino licenses on offer. So far, the property has only provided just over $13 million in taxes. This is far short of the projections but a new hotel is opening on site in November which should help to provide additional revenues.
During the annual meeting of gaming industry officials, Gural stated that he thinks the market is saturated and there is a lot of work to do in order to get revenues where they need to be. Looking at other venue totals, the revenues earned are also far below what was expected. The Rivers Casino & Resort opened this past February with operator Rush Street Gaming having seen revenues reach just over the $56 million mark through the month of June. The venue has projected that it will bring in $223 million a year by 2019. The venue has a long way to go to reach this price point and only a short time to do it in order to meet projections.
Also opening in February was the del Lago Resort & Casino located near Rochester in Tyre. This venue was able to bring in more than the Rivers Resort, with $63.1 million for five months. But this is still short of the $263 million in annual revenues the venue projected they would bring in for the first year.
A fourth casino, Resorts World, should be opening by early next year. Adding a fourth new venue in the mix may only cause further harm to the revenues coming in as players will have another place to visit. It will be interesting to see how the casino fare for the remainder of the year and if the fourth casino will hinder the venues in any way, maybe providing oversaturation of the market.