Casinos in New York Cannot Realistically Offer Both Jobs and Revenue

The main problem New York's gambling industry is facing, according to Woinski, is that the industry has not yet figured out if they would like casinos to provide employment, or tax revenue.

2017-12-14

United States

Reading time 1:41 min

"There’s a very big problem in the industry, and that is, they seem to think that if you build a bigger casino, you will get all the customers. But when you talk about regional or convenience gambling, the majority of people will just go to the nearest slot machine or table, not the one in the nicest property," explains Woinski, in relation to what he perceives as a low-revenue trend for casinos in the US.

Amidst the poor revenue performance New York’s newest commercial casinos have shown, the opening of a fourth casino in 2018 is meeting increasing uncertainty. In 2013, voters approved an amendment to the state constitution to allow for full-scale casinos to be built in New York, in addition to existing racinos, which combine racetracks and video lottery games, and casinos on Native American land. However, all three of the new commercial casinos have failed to meet their projected revenues, while a fourth, that has cost USD 1.2 billion to build, is set to open in 2018.

In an interview with City & State, Alan Woinski, president of Gaming USA Corp., a New Jersey-based gambling consultancy group, provided insight on the future of the state’s casinos and racinos in an interview to City & State.

In the words of Woinski, only the closure of racetracks could lead to casinos meeting the revenue expectations the market has in New York. He mentions that the gaming industry has the erroneous belief that property does the trick whenever attracting customers is at stake. However, Woinski warns, "when you talk about regional or convenience gambling, the majority of people will just go to the nearest slot machine or table, not the one in the nicest property."

Woinski also mentions the billionaire investment entailed in the construction of the Resorts World Catskills, and mentions the resort as one of the factors that could further complicate New York's financial standing in case the venture fails. Another event that could thwarts New York's gaming community is the opening of a casino in Meadowlands in case the bill is passed by lawmakers in New Jersey.

The main problem New York's gambling industry is facing, according to Woinski, is that the industry has not yet figured out if they would like casinos to provide employment, or tax revenue. To Woinski, both are unattainable because 'someone else in the state is gonna get hurt'. Additionally, Woinski criticizes the role the state has taken in the decision of the casinos centric location, mentioning that placing them in such strategical locations has rendered the casinos' task of succeeding all the more overwhelming.