The four non-Native American casinos in New York that were licensed a while back, have yet to bring in the big bucks the state thought they would.
Thomas DiNapoli, the state Comptroller, released a report last week. His team looked into how these casinos – del Lago Resort, Rivers Casino, Resorts World Catskills, and Tioga Downs Casino – were doing from 2017 to 2022. And the results weren’t exactly what the lawmakers had hoped for.
The pandemic made things tough for New York gambling sites. They had to close for six months in 2020 and had limits on how many people could come in until June 2021. But by 2022, all four casinos made more money than they did before the pandemic. But not as much as anticipated.
What Did the Comptroller’s Office Find?
The Office of the State Comptroller (OSC) did a deep dive, and it turns out that while they pulled in $176 million in gaming tax revenue for local areas, only the three smaller towns that actually have the casinos got any real financial benefits.
Back in 2020, DiNapoli found out that these casinos were only bringing in around half to 60% of their projected figures. Tioga Downs in the Southern Tier stood as the sole exception. But as mentioned, the pandemic did play a role.
DiNapoli summed it up bluntly: casinos are no “jackpot solution”. He stated, “Don’t expect casinos to magically solve all your local financial woes. Sure, they bring in some tax money, but it really varies for different communities.”
The report also included several additional bits of information. In 2022, new state rules meant that local areas got less money from sports bets and games like slots and digital tables. And Broome County, which didn’t even have a casino, walked away with the most gaming tax revenue – $4 million!
How Did We Get Here?
In 2013, people in New York voted to allow up to seven new casinos in the state. By 2016, four of those casino licenses were given to places in the upstate area. The group in charge planned to wait seven years before giving out licenses for the other three casinos closer to the city.
Now, in 2023, they’re asking for people to apply for these licenses. Because of this, the OSC is checking how the first four casinos affected the money local governments received.
There Is Some Good News
But it’s not all bad news. Three towns in New York actually got a financial boost thanks to casino gaming. Nichols, Tyre, and Thompson saw gaming tax revenues making up anywhere from 30% to 60% of their total revenue.
DiNapoli said this helped them significantly decrease property taxes. So, at least there’s a silver lining for some.
What’s Next for New York State Casinos?
The comptroller’s report says local areas need to be realistic about how much money they think they’ll get from casinos. For places that will have new casinos soon, it’s important they have a good plan for how to use that extra money.
And a bill to cut Tioga Downs’ Slot and ETG tax rate to 30% is awaiting approval from Gov. Kathy Hochul.
The report didn’t look at problems like gambling addiction or how having a casino might change a community. But the comptroller plans to talk about those things in another report later on, and Bookmakers Review will continue to follow the developments.
Calculators
