Will New Casinos Create a Crowded Gaming Industry in NY?
With multiple gaming venues opening in New York State, will the gambling industry become too crowded?
When a state in the US considers casino gaming, a great deal of consideration is involved. One of the key points to be reviewed is the location. Casinos need to be located in high traffic areas but also be spread out from other gaming venues. It is not smart to have casinos too close together, especially multiple gaming venues as this can cause saturation of the market. In New York State, several gaming venues are popping up this year and in the future which has many experts wondering if there will be saturation due to a crowded industry.
New Gaming Venues
The del Lago Resort & Casino opened last week in the state and this week, the Rivers Casino & Resort will open. Both of these gaming venues are part of the gambling legislation created in the state which will see four venues offered overall. The Tioga Downs was the first to open after adding casino games to the existing racino. With these three gaming venues to be in operation by this week, will the Montreign Resort Casino stand a chance when it opens in 2018?
New Yorkers are ready for casino gaming and there is a large enough population in the state that oversaturation should not occur. Gamblers have waited for years to be able to access casino games and these four venues will be the first time that commercial gaming has been offered on a grand scale. The del Lago still has aspects that have yet to open and like the Rivers Casino, will offer additional entertainment aside from gaming which will help to bring in a variety of consumers.
Gaming venues in New York as well as across the United States have found that it is best to add in additional amenities to appeal to a broader audience. From theaters and entertainment spaces to hotels and convention space, casino resorts have a plethora of options to not only bring in more revenues but to appeal to everyone, both locals and tourists.
Affecting Other States
Other states such as Pennsylvania and Connecticut will have to consider how the new casinos of New York will affect their gaming industries. One company in particular has interests in both states and could face issues with their casino venues. The Mohegan Tribal Gaming Authority operates the Mohegan Sun Pocono in Pennsylvania and the Foxwoods Resort Casino in Connecticut. The gaming venues of New York are within a short drive of these venues.
The short distance could affect a visitors choice as to if they will visit the Mohegan properties or the new venues in New York. According to a recent quarterly earnings call, the tribe is not so worried yet. Speaking with investors, the Chief Executive of the Mohegan Tribal Gaming Authority, Bobby Soper, stated that the competition of New York will have little impact on the Pocono venue. According to Soper, upstate New York has been assessed and it is a very little part of the overall market and they do not think that the venues will have an impact on the Pocono property.
The Mohegan Tribe is more concerned now over a new casino coming to Connecticut, the MGM Springfield venue which has a price tag of $950 million for construction. The Mohegan and Mashantucket Pequot tribes own and operate the Foxwoods and Mohegan Sun venues and are trying to extend their reach into the Hartford area, which would help to combat the competition from the Springfield facility. However, the tribes would have to see commercial gaming legalized in the state before they would be able to move forward with casino plans.