Not only did New York's racinos post big numbers for the first month of 2013, but they bucked the the trend in neighboring states by actually showing year-to-year improvement from 2012.
NYGA's nine racetrack casino locations had gross gaming revenues of $147 million in January, up eight percent over the prior year. By comparison, slot machine revenues were down one percent in Pennsylvania and 16 percent in New Jersey – despite both states having the advantage of full-fledged casinos with table games.
“While other Northeast gaming states continue to struggle, New York’s model is thriving, allowing us to generate ever-growing revenue for education and support for the racing and breeding industry,” said NYGA President James D. Featherstonhaugh. “New York’s current gaming model is an obvious win for taxpayers and the envy of our neighboring states.”
Even with a tax rate of 67 percent, New York’s racetrack casinos are outperforming both gaming facilities in New Jersey and Pennsylvania; states that enjoy more favorable tax rates of just 9.25 percent and 55 percent respectively.
The NYGA feels that "not only are New York’s current racetrack casinos a better business model compared with other states, but they are also generating significantly more state tax revenue." New York’s racetrack casinos generated more tax revenue – $99 million – for the state in one month, than all 12 Atlantic City casinos did for New Jersey in a six-month period, just $92 million.
“Our members’ performance is a testament to the world-class management of their facilities and our incredibly successful public-private partnership with the state. But the real winners are the school kids, taxpayers, and racing industry workers who benefit from the revenue we generate,” said Featherstonhaugh.
In January 2013, NYGA members generated more than $68 million for education and are on pace to deliver a whopping $830 million for New York schools this fiscal year. At an average salary of $67,991, that would fund the salaries of more than 12,200 teachers.
With New Jersey's casinos struggling, Standardbred Breeders and Owners Association of New Jersey President Tom Luchento issued a letter to the Asbury Park Press on Monday suggesting the state "look at gambling in New Jersey with a clear eye" stating his case for expanded gaming at racetracks.
In Luchento's letter he refers to an Asbury Park Press editorial of Feb. 15 (“Stop playing bad hand in A.C.”), stating "the struggles of Revel and other casinos in Atlantic City, which have lost gambling dollars to casinos and racinos in Pennsylvania, Delaware and New York, have made it clear that the state has put its bet on the wrong horse."
Luchento would like to see New Jersey follow New York's model and offer expanded gaming at the Meadowlands Racetrack.
"Given the latest decision by the state to permit Atlantic City’s casinos to serve as a hub for statewide Internet gaming without benefit of a referendum, there would seem to be no legal obstacle to expanding slots and table games outside of Atlantic City’s borders."