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Pie in the Sky Projections? New York’s Gambling Revenue Slower than Expected, but Growing
In 2013, New York voters approved a measure that amended the state constitution to permit Las Vegas-style casinos. Previously, gambling was restricted to race tracks and tribal casinos. Ever since this legislation was inked into state law, casinos have projected revenue estimates.
Until recently, these projections have been less than what the actual revenue numbers proved to be true. However, recently these pie in the sky projections have gravitated towards becoming more accurate. In fact, within the first few months of 2019, New York betting revenue has set new records. These numbers will likely change in the near future to include sports betting. As reported, the New York State Gaming Commission approved a form of sports betting for upstate casinos.
YTD Commercial Gaming Revenue- $323,654,329
July 2019
| Casino | Slot Revenue | Table Game Revenue | Poker Revenue | Total |
|---|---|---|---|---|
June 2019
| Casino | Slot Revenue | Table Game Revenue | Poker Revenue | Total |
|---|---|---|---|---|
May 2019
| Casino | Slot Revenue | Table Game Revenue | Poker Revenue | Total |
|---|---|---|---|---|
April 2019
| Casino | Slot Revenue | Table Game Revenue | Poker Revenue | Total |
|---|---|---|---|---|
March 2019
| Casino | Slot Revenue | Table Game Revenue | Poker Revenue | Total |
|---|---|---|---|---|
February 2019
| Casino | Slot Revenue | Table Game Revenue | Poker Revenue | Total |
|---|---|---|---|---|
January 2019
| Casino | Slot Revenue | Table Game Revenue | Poker Revenue | Total Revenue |
|---|---|---|---|---|
Lofty Expectations?
When casinos began applying for licenses with the New York Gaming Commission, they had to post estimated revenues. For the first three years, many of the facilities were proving to have vastly underestimated these numbers. A vast majority of these projections were over 50-percent off the mark.
Many thought the eagerness of these gambling facilities purposefully inflated estimates to gain access to casino player’s pocket books. However, the operations themselves quickly pointed to the stat sheet. Even though numbers were below original projections, revenue was still climbing.
While early revenue projections were low, the money being funneled into the New York State Treasury was growing steadily. One problem was insisting that the individual casino revenue estimates somehow reflected poorly on the 2013 amendment to permit the growth of such operations. The latest numbers certainly reflect a vastly different picture.
New Year Brings New Hope for New York Betting Revenue
As the calendar flipped to 2019, most state betting revenue numbers still reflected the same picture. While projections seemed to consistently be less than projected, the revenue was still growing.
Tioga Downs Casino is one classic example. After peaking at a high mark for gross credits played in April 2018, numbers bounced up and down for the next 11 months. However, this past March total gross revenue from gaming credits jumped over $17 million in a 30-day period.
This was the largest increase between any two months in the last three years. Some are drawing a connection with a growing push to legalize sports betting as proof of public sentiment for all forms of gambling in the Empire State.
To further support this theory, all we have to do is look at one other New York casino. The Rivers Casino and Resort experienced the same boom in business in March. They set their own benchmark for revenue from total game credits, topping February by $25 million.
