Despite a lot of misgivings in New York over the absence of mobile wagering, sports betting is still looking like a winner for the state’s casinos.
The state’s regulatory framework, codified this summer, saw the first sportsbooks open in July. From that point through September, roughly five weeks into the college and pro football seasons, the commercial market generated nearly $3.5 million in revenue. That’s not counting the books at the Oneida Indian Nation’s three casinos, whose results aren’t made public. So the real total was more like $5 million and then some. At a win rate of 5 percent, the average for a Las Vegas book, we can conservatively peg total wagers at around $100 million.
With no internet betting—and with the Seneca and St. Regis Mohawk tribes yet to enter the fray at their four casinos—this is a pretty credible performance, even more impressive when you consider that absent the internet piece, it’s been achieved largely without benefit of a massive convenience market in New York City, which is a good two- to three-hour drive from the closest upstate casino.
New York City’s money, or most of it, is going instead to neighboring New Jersey, where a much shorter drive and a mobile phone gets you all the action you want. New Jersey, whose market was legalized last summer, is vying with Nevada for the nationwide revenue lead. This year, it averaged a little more than $21 million a month from 11 properties (nine casinos, two racetracks). It’s estimated that upwards of 80 percent of this is being won from people betting remotely.
“The real opportunity for the state, our guests and stakeholders is the opportunity to take bricks and mortar and allow for online sports betting to occur,” said Lance Young, executive vice president and general manager of del Lago Resort & Casino, which is located between Syracuse and Rochester in the touristy Finger Lakes region.
“Look at Pennsylvania and New Jersey, it’s 80-20,” noted John Collins, director of sports betting at Resorts World Catskills in Monticello. “It’s about being competitive with the other states.”
“Clearly, if New York State had mobile the market would be much, much larger in size,” said Justin Moore, general manager of Rivers Casino & Resort in Schenectady, the commercial market’s revenue leader in the early going with winnings of more than $1.6 million.
Young told GGB News del Lago would like to see remote betting “as soon as possible,” a sentiment his upstate competitors all share.
As it stands, the reality for the commercial casinos has been one of disappointment. All four overestimated the elasticity of the statewide market, which has grown saturated with choices for the gambling consumer𑁋19 full-scale casinos and racinos, 11 racetracks, something like 170 OTB locations and a state lottery. In the three years since they’ve opened, all four have fallen short of their initial revenue forecasts.
What matters now, obviously, is anything that gets people in the doors, and when it comes to the lure of sports betting, they’ve gone all out. All four have made sure they designed what Collins described as “very visible” attractions with extras like dedicated food and beverage outlets and in some cases dedicated live entertainment.
Resorts World’s Sportsbook 360, operated in partnership with UK-based online powerhouse Bet365, totals 6,000 square feet with seating for more than 100, three staffed betting windows and 14 kiosks available 24/7. The name derives from a 360-degree arc of 35 75-inch TV monitors surrounding a centrally located bar. Games also are displayed across a high-definition video wall measuring nine feet high and 16 feet across.
“Not only are we bringing in a new type of player we didn’t have before, but we’re giving our existing customers something new,” said Collins. “It really sets us apart from other regional resorts in the area.”
The book generated just under $450,000 in its first two months, 85 percent of it coming since the start of the football season. This was good for third in the commercial market ahead of the much smaller book at Tioga Downs Casino Resort near Binghamton on the Pennsylvania border, which recorded about $350,000. September’s result amounted to only about 2 percent of total gaming revenue for the month. On the positive side, its contribution was greater than the property’s 20-table poker room, which is one of the largest in the state.
“Probably now, we’re at 60 to 70 percent of where we expect to be,” Collins says. “Once college basketball arrives in full force, we believe we’ll be hitting 100 percent of our market share.”
Rivers Sportsbook, operated by Rush Street Interactive, a division of Rivers parent Rush Street Gaming, benefits from its location within the only casino of the four situated in a major downtown area. Moore termed it “a very robust offering to the entire locals market”. It covers 5,000 square feet with six staffed betting windows and 14 kiosks, 22 86-inch TVs and a video wall that measures 53 feet across. There is table seating for 80 and another five private booths, each with its own TVs and seating for up to six.
It’s benefited from some savvy marketing too. The website offers downloadable guides—“SB Basics,” they’re called—with instructions for the novice on moneyline, over/under and point-spread betting, together with a list of FAQs. Last Saturday, the casino hosted a first-of-its-kind Sports Betting Expo at the Rivers Events Center. It was free to the public and featured tutorials and seminars, along with appearances by a number of sports media personalities and current and former pro players, plus a Madden 20 NFL eSports tournament.
“I think sports betting is just barely getting started, and the future looks really good,” Moore said. “We see it continuing to grow. We know not everyone has come down to see it. Not everyone has felt the action of placing a wager on a game. It really adds excitement to the entire experience.”
DraftKings Sportsbook at del Lago, operated in partnership with the DFS giant, had the commercial market’s second-best September with $837,000 in revenue, more than $1 million in total over its first two months.
Young told GGB News he’s “thrilled” with the strong start of what he terms a “highly desirable and much anticipated addition” to the property.
“The excitement level has been very high, especially during NFL and college football games. New York state is one of the richest sports cultures and eager fan bases in the country.”
It’s a big book—6,000 square feet—and features 1,000 square feet of video screens, 16 single-bay TVs and a scrolling ticker displaying scores, stats, injury news and other player information in real time. There are five betting windows and 23 self-service kiosks, a full-service restaurant and a bar with more than 30 beers on tap.
Young said it’s been standing-room only during football games. At times, there’s a wait list 100 names deep. “We’ve already seen the benefits,” he said. “We’ve seen many new guests from all over the state. We’ve seen an increase at our table games, increases in food and beverage, and we’ve seen an added excitement brought to our casino atmosphere.”
New Jersey’s books posted $445 million in sports wagers in September, a record for the state. New York, with four fewer locations, no web betting and no way to directly access its greatest agglomeration of bettors probably did at least 10 percent of that. Through the first nine months of the year, the tax haul for Trenton has totaled $23 million. So it’s not like the powers that be in Albany don’t know what they’re missing.
But as with most things in New York, it’s complicated. A legalization bill likely would pass in the state Senate, but Governor Andrew Cuomo says he believes a constitutional amendment is necessary, and he hasn’t moved off that position as of yet. Given the governor’s caution, the leadership in the assembly, which historically has been less gaming-friendly anyway, appears reluctant to get on board. Moving into cyberspace also has to be weighed in terms of how it would affect the zones of gaming exclusivity that were carved out for the Indian tribes in their compacts with the state.
It’s likely all these issues, and more, are factoring into a comprehensive sports betting study being conducted by the state Gaming Commission. It was hoped their report would be ready by the end of the year and possibly provide much-needed ammunition for the pro-internet forces going into the new legislature. But it’s been pushed back to next spring, which lands it in the middle of the annual wrangling over the state budget. The cloud of uncertainty that hangs over the remote betting landscape probably isn’t dispersing anytime soon.
Casinos everywhere are practiced at staying out of political discussions, at least publicly. In New York, if all they have right now is bricks-and-mortar, the focus has to be on making the most of it. They’ve spent the money, and though it’s early days, the rewards have not been insignificant.
“While we are disappointed that the deadline (for the study) has been pushed back, we respect the Gaming Commission’s decision,” said del Lago’s Lance Young. “This is an important time for state leaders, gaming industry partners and taxpayers as we look toward a future that provides parity and creates opportunities that benefit all.”
An admirably diplomatic turn of phrase, the operative words, “parity” and “opportunities,” being clear references to the remote betting issue.
Collins is optimistic. But then what else can he be? “It will happen eventually,” he said. “I think it’s just a matter of ironing out the details.”
