Tioga Downs finished 2014 with some positive news, as their net win increased 2 percent from the previous December’s .31 million, up to .39 million. However, that number proved to be too little, too late, as the year saw a drop of over 6 percent. 2013 brought in a net win of .6 million, while 2014 provided a less impressive .9 million net win.
Jeff Gural, owner of Tioga Downs, cited the calm weather in December, the racino’s inaugural Winterfest, and a new parking garage as reasons for the increase in business. He said, “I’d be surprised if 2015 isn’t better than 2014.”
It wasn’t just Tioga Downs that felt the blow, as the other nine New York racinos saw their net win decrease on the year 1.6 percent, from $1.92 billion in 2013 to $1.89 billion in 2014. If you were to remove the two downstate racinos, Resorts World Casino in Queens, and Empire City Casino at Yonkers Raceway, the 2014 net win totaled $552.8 million, down from the 2013 figure of $580.5 million, or 4.8 percent.
Although the upstate racinos have been struggling as of late, that didn’t stop the Gaming Facility Location Board from granting three commercial casino licenses in the area in December. Chairman Kevin Law said the board will also “entertain” Governor Andrew Cuomo’s request for a fourth license, which was requested for the Southern Tier.
The license for Lago Resort and Casino in Tyre has ruffled the feathers of upstate casinos, specifically Finger Lakes Gaming and Racetrack, which operates out of Ontario County just 27 miles west of Tyre. Finger Lakes Gaming reported a total net win of roughly $124.4 million in 2014, which was down 5.4 percent from the $131.5 million figure of 2013.
The competition from a mega resort is projected to cripple revenue figures for racinos, and for Finger Lakes Gaming, the number being tossed around is a decrease of 21 percent once 2017 rolls around. That will mark the first expected full year of operations for Lago. Officials from Finger Lakes, however, are expected the number to be closer to 50 percent.
Lago is also set to be a minor competitor to Tioga Downs’ sister, Vernon Downs Casino and Hotel, in Oneida County. Much like Tioga Downs, Vernon Downs saw a year-over-year increase in December for net win. Unfortunately, they were on the same side regarding yearly net win, which dipped 5.7 percent from $44 million in 2013 to $41.5 million in 2014.
In the Capital region, Rivers Casino and Resort will be built a mere half hour away from Saratoga Casino and Raceway. Saratoga reported a net win of $830,000 less in 2014 compared to 2013.
The only two racinos which saw increases in net win for 2014 were Resorts World and Batavia Downs, which is situated about halfway between Buffalo and Rochester. Resorts World saw a massive increase of nearly $23 million, while Batavia Downs gained an additional $2.5 million on the year.
Michael Kane, president and CEO of Western Regional Off-Track Betting Corp., which owns Batavia Downs, points to a recent $27 million redevelopment for the increase. “We’ve been fortunate,” he said. “Our marketing guys have done very well. And then the construction unquestionably has helped.”
One revenue killer for the region was the famous snowstorm, which even forced the Buffalo Bills to move their game against the New York Jets to Detroit. For the week ending November 22, Batavia Downs recorded a net win of $537,000, which was a 28 percent drop from the previous year.
That loss, however, was nowhere near what Hamburg Gaming got dealt. The net win of $243,000 was a 79 percent nosedive from the same week in 2013. The year on a whole was nothing to write home about for Hamburg, as the net win of $64 million was a near 17 percent drop from the $77 million figure of 2013.
