A long-awaited — and long-delayed — financial effect research in the future of gambling in Ny State examined a number of opportunities across its 358 pages, with prospective mobile activities gambling drawing a lot of the present headlines.
But whenever it stumbled on prospective threats that may avoid making the most of casino that is new, a clear “enemy” emerged in the report. (the executive that is 30-page is right here.)
“The addition of a Meadowlands casino is the threat that is main competitive Downstate gaming,” according to the Spectrum Gaming Group report, which was initially commissioned by the New York State Gaming Commission in September 2019.
The report assumes the prospect of “one large casino” at the Meadowlands as one of its economic scenarios.
“In such an environment … it is important that the State’s gaming that is new think about just how certification, income tax prices, along with other laws will influence the power of Downstate video gaming to keep competitive with the next Meadowlands casino.”
This was at razor-sharp comparison to a casino that is potential East Windsor, Conn. — north of Hartford, near the Massachusetts state line — that Spectrum found would have only a impact that is negligible brand new York’s video gaming economy.
No time and energy to waste, report states
New York’s moratorium on licensing up to three gambling enterprises into the new york area expires in 2022, and there has been more talk in the statehouse in Albany of moving up the deadline than in waiting well beyond it.
That december eagerness to move forward is fiscally wise, the Spectrum report suggests.
“New Jersey could be first to market with a casino
that is metro-area” in line with the report. The state will expand casino
gaming beyond the confines of that municipality.
“Owners/operators/developers“Although voters soundly rejected the idea of expanding casino
gambling outside Atlantic City in 2016, it is widely believed that at some point associated with both the Meadowlands complex and Liberty National Golf Club in Jersey City are ongoing proponents of casinos at those locations. Being first to market would allow a casino
on the New Jersey side to develop player loyalty.”[in gross gaming revenue]The current scenario of four upstate casinos that are commercial from the Catskills on north — per circumstances legislation passed in 2013 leaves many residents of the latest York City and its particular suburbs searching somewhere else to gamble, whether in Atlantic City, Connecticut’s two tribal gambling enterprises, or a few gambling enterprises in eastern Pennsylvania.
“We Estimate approximately $681 million
from New York residents will be leaving the Downstate market in 2025 for gaming out of state (to Connecticut, New Jersey and Pennsylvania), assuming no noticeable changes to market supply. With the addition of these downstate that is new, we estimate the prospective recapture of 34 per cent to 53 per cent of the expenses.”
Six situations provided
Spectrum examined six situations for future ny casino
video gaming — three of those showing extensive expectation that is public the racinos at Yonkers and Aqueduct racetracks in Westchester County and Queens, respectively, will be approved to simply add live-dealer table games to their existing slots
parlors. Those scenarios are broken down by economic forecasts that count on the license that is third granted in Manhattan, Brooklyn, or Queens.
Other situations considered were the likelihood of constructing three brand new gambling enterprises from scratch, while leaving Yonkers and Aqueduct as is; having one casino
that is new and placing it in midtown Manhattan; and issuing no new licenses at all.
“In the three-casino
models, the combination with Manhattan appears to repatriate the least revenues, as a more significant portion of revenues for that location would be from non-New Yorkers (and alternatives in New Jersey and Pennsylvania are more proximate to Manhattan than to Brooklyn or Queens),” the report noted.
The cost of a Meadowlands casino to New York State’s tax that is annual is projected become $90 million to $130 million.[gross gaming revenue, or GGR]A Meadowlands casino’s effect on the income of brand new or properties that are augmented New York is projected to be as low as about 3% for the “Jake’s 58” slots parlor on Long Island and up to 12.5% for a Manhattan casino. The struggling Resorts World Catskills site — already having gone through a bankruptcy scare — would see an 8% further decline in its modest revenue, the report estimated.[negative]Another potential gambling site would be hit hard by a Meadowlands casino as well: an approved but slots that are not-yet-constructed in Orange County.
“A Meadowlands casino might have a impact that is significant the
that could be generated by an Orange County facility because it would be far more proximate than Orange County for patrons residing in northern New Jersey (with New Jersey otherwise accounting for potentially 33 percent to 36 percent of the Orange County GGR). … In general, we estimate the Meadowlands would have approximately a 20 percent
impact on Orange County GGR potential.”
What’s at stake for New York
The report’s authors address the magnitude of what likely is brewing in New York.
“The addition of a casino
that is commercial the latest York City area — either through issuing commercial licenses to at least one or both VLT facilities in the area or by approving a fresh home — would profoundly affect the video gaming landscape in ny, and perhaps through the entire country.
“Policymakers must make sure that whatever gets authorized into the nation’s biggest area that is metropolitan serve the interest of New Yorkers for decades to come. Whatever entities are granted the privilege of commercial casino
licensure in that market — whether they are existing VLT operators or new entrants — must rise to the challenge of developing projects that are iconic, that are sufficiently capitalized to capture and expand market that is multiple, and that advance general public policies that will assist the whole state.”
Assumptions by Spectrum included a widely talked about $500 million casino
that is one-time fee and a tax rate on slots
of 40% and on table games of 10%.
Based on those scenarios, Spectrum projects total casino gross gaming revenues — assuming Aqueduct and Yonkers are two of the three players — of about $1.3 billion annually. The projection varies little regardless of which of three boroughs would receive the license that is third
But the incremental gains could be fewer than half of that figure, since some casino
bucks would change bucks previously invested during the two racinos.
The Report utilized “a 21-person team for this project, eight of whom are based in New York,” with 157 interviews conducted and visits to 23 gaming facilities in the continuing state.
Crime and casinos( analysis that is*)Spectrum’s of fears about increased crime rates in communities with casinos concluded that many of the studies making such links have been methodologically flawed.
“The belated Brendan Byrne, who was simply governor of the latest Jersey into the 1970s and had been the governor that is first the United States to adopt legal casinos as a tool of social policy, provided the most insightful comments as to this phenomenon,” per the report.
“Prior to casinos, Atlantic City was one of the poorest communities in the United States. After gaming in Atlantic City commenced in 1978, Byrne was asked by reporters if crime had increased in Atlantic City since casinos opened.
“Byrne responded: ‘A year ago, there was nothing worth stealing in Atlantic City.’”
Something went incorrect.(*)We respect your privacy and simply take protecting it that is seriously(