A partner with American Racing and Entertainment says the Oneida Nation’s monopoly on regional gaming is driving down revenues at Vernon Downs.
Gary Greenberg and his family has had an interest in Vernon Downs for some 50 years, and says the racino is struggling after the Oneida Nation opened a second gaming operation and added slots at several convenience stores.
Greenberg says the tribe’s gaming expansion has had a significant impact on the racino’s revenues, which are likely to be lowest among the nine racinos in New York. The racino posted a small increase in wagering, but a slight decrease in house win from June 2014, $3.4 million, to June 2015, $3.2 million.
Greenberg says the racino is the only one in the state that posted two straight years of declining revenues.
Despite Greenberg’s reticence, American Racing and Entertainment CEO Jeff Gural says Vernon Downs has a “secure” future, and revenues from American Racing’s Tioga Downs is more than making up for any declining revenues at Vernon Downs.
Vernon Downs in Verona is located just 4 miles from the Oneida Nation’s Turning Stone Resort and 22 miles from a smaller casino the tribe opened last year.
In Schenectady, work continues on the Rivers Casino & Resort, which recently hosted a special ceremony celebrating the placement of the casino’s last steel beam.
Developers hope to have the $330 million casino completed and opened within a year. The casino is to feature slots, table games, a banquet facility and steakhouse, day spa, lounge, and a 163-room hotel.
While casino development continues in New York, the Rockefeller Institute recently cautioned casino developments generally look promising early on, but gradually suffer declining revenues over time.
The institute in a new report says there is no evidence to suggest casino gaming generates enough revenues to offset costs over the long term.
The report indicates New York gaming revenues declined last year, from $3.195 billion in 2014 to $3.182 billion last year. It says too much competition from regional casinos makes it too difficult for more casinos to have a positive impact on New York’s economy.
