Generally speaking, New York State lawmakers tend to adopt a rather conservative stance when it comes to gambling expansion. It was in 2013 when the state approved the last expansion of its gambling industry and it will likely take quite some time before any more such measures are introduced.
Prior to 2013, only New York-based tribes were allowed to operate casinos within the state’s borders. However, a Gov. Andrew Cuomo-backed constitutional amendment provided for the construction of up to four Upstate commercial casinos. Thus, the state laid the foundation for the creation of what is estimated to be a $325-million commercial casino industry.
New York’s path toward creating a commercial casino market was a thorny one and involved the selection of the right number of venues to be built, the right locations where these to be built, and by whom to be built. It took more than three years before the state saw its first Las Vegas-style commercial casino open doors.
Tioga Downs Casino in Nichols was launched in early December. Now, three months after the ribbon of that first venue was cut, Upstate New York features three casinos. The New York State Gaming Commission has been publishing weekly financial reports to make it possible for the public to track the development of the state’s casino industry. Results shows that New York’s three commercial properties have generated the total amount of $39.6 million in gross gaming revenue in the period between December 4, 2016 and February 26, 2017. It is also important to note that with very few exceptions, weekly revenue has been on the rise since Tioga Downs Casino welcomed its first patrons.
And here is a more detailed breakdown of the financial data provided by the Gaming Commission about each of the three properties.
Tioga Downs Casino
Tioga Downs owner, New York real estate developer Jeff Gural, bid for a commercial casino license twice. His first attempt was unsuccessful, as the specially appointed Gaming Facility Location Board recommended the construction of three Upstate casinos in late 2014; his project was not among the recommended. Board members had a change of mind in 2015 and eventually approved the transformation of the former Tioga Downs Racetrack into a full-scale casino.
Although the last to be approved, Tioga Downs was the first to be launched. The property’s ribbon was cut in the first week of December. The casino was launched with 461 slot machines, 23 table games, and 12 poker tables. The property raked in a total of $827,539 during its first days of operation. The Gaming Commission’s report shows that it has generated $16.4 million in revenue since launch.
The week to February 26, 2017 was Tioga Downs’ best in terms of revenue. The casino reported the amount of $1.6 million for the period.
Slot machines have established themselves as the most popular offering with players. Revenue from those amounted to $13.8 million in the period from launch to February 26, 2017.
Revenue from table games has been on the rise over the past five weeks. That particular type of offering has contributed the amount of $2.2 million since the casino was launched.
Poker has performed relatively poorly in comparison to the other gaming services offered at Tioga Downs. However, it too has been on the rise over the past month. Poker tables have generated $352,376 in gross revenue since the property opened its premises for patrons.
del Lago Resort & Casino
The state’s second commercial casino opened on February 1. The venue reported gross gaming revenue of $13.1 million for the first four weeks of operation. Since launched, it has been featuring 2,001 slot machines, 77 table games, and 12 poker tables.
Slot machines generated $10.4 million over the reported four weeks to February 26, 2017. Revenue from table games amounted to $2.5 million. Poker tables raked in $252,325.
The week to February 26, 2017 was the casino’s most profitable one. del Lago’s casino options generated $3.7 million during the seven days in question. The venue was off to a very good start during its first week of operation, but saw its revenue decline over the next two weeks. Revenue statistics improved significantly in the fourth week, as already mentioned.
Rivers Casino & Resort Schenectady
The casino opened doors to players on February 8 with 1,150 slot machines, 67 table games, and 15 poker tables. It raked in a total of $10.1 million during its first three weeks of operation. Revenue from slot machines accounted for most of the bulk. The devices generated $7.4 million. Revenue from table games amounted to $2.2 million. Poker tables contributed $440,899 in revenue during the three weeks to February 26, 2017.
Revenue from slot machines increased in the second week of operation when compared to the casino’s first week. However, a slight drop was reported in the third week. Table games saw a stable growth during the three weeks to February 26, 2017. Revenue from poker tables also increased on a weekly basis, although in a more moderate manner.
The week ended February 19, 2017 was River Casino’s best in terms of revenue generated. As seen in the Gaming Commission’s report, the property raked in $3.5 million during that particular week.
Conclusion
The opening of commercial casinos has generally been welcomed due to the creation of new jobs and of new revenue sources for state coffers and for host municipalities. However, concerns have been raised about the potential saturation of the Upstate New York gambling market. That part of the state has been home to racinos for quite some time now and it is believed that the new Las Vegas-style casinos would harm their business.
As explained above, the new gambling venues have been performing well since their launch. However, it is yet to be seen whether the upward revenue trend will be maintained and whether the region will be able to sustain the high concentration of gambling facilities. Some predict that stronger businesses will cannibalize weaker ones. Others believe that the new casinos will gradually establish themselves as gambling hubs for their respective municipalities without harming older venues.
