NYGA CONTINUES HOT-HAND FOR EDUCATION WHILE NEW JERSEY CRAPS OUT
2013 Tax Revenue for New York Up 3 % While NJ is Down 20 %
(Albany, NY) New York State is topping New Jersey’s Atlantic City casinos in gross gaming revenue, a huge win for New York’s education and affirmation for the state’s existing gaming policies. While the nine racetrack casinos of the New York Gaming Association has been topping New Jersey for months when comparing tax revenue, the most recent figures released by the Garden State show a continued erosion of tax revenue, while New York continues to gain momentum.
In January and February 2013, NYGA’s nine racetrack casinos produced gross gaming revenue of $294 million, up $8.7 million or 3 percent over the same period in 2012. By comparison, New Jersey’s 12 Atlantic City casinos produced gross gaming revenue of just $284 million, a $57 million or 20 percent decline despite enjoying the competitive advantage of offering live table games.
The relative strengths of each state’s regulatory model is drawn in even starker contrast when tax revenues are stacked up. New York’s 67 percent effective tax rate dwarfs New Jersey’s 9.25. Comparing the first two months of 2013 to the same period in 2012, NYGA members generated $197 million in tax revenue for New York up $5.8 million or 3 percent. New Jersey’s casinos produced just $26 million, a decline of $5.2 million or 20 percent.
Whereas tax revenue from New Jersey’s slot machines is deposited in a general fund, a fixed percentage of revenue from New York’s is dedicated to education. During the two-month period of January and February 2013, NYGA members contributed $136.5 million to education, a $3.3 million or 2.5 percent increase over the same period in 2012.
“Despite our higher tax rate and significantly narrower profit margins, the New York model is thriving,” said NYGA President James D. Featherstonhaugh. “67 cents of every dollar we generate supports education, the racing and breeding industry, and lottery operations. The result is a positive impact on real people, from inner-city students to upstate family-farmers.”
While Atlantic City has seen more than six straight years of declining revenue, at a whopping $2.7 billion, the New York gaming market, including Native American casinos, is on track to surpass other Northeast states and become second only to Nevada. New York’s growth is in stark contrast to other states that are experiencing the effects of saturation. For example, Pennsylvania is underperforming by as much as 50 percent of what casino operators estimated, and both Connecticut and Delaware are experiencing canablization.
“Even as more states add new casinos that compete for limited gaming dollars, NYGA members continue to beat the odds,” said Featherstonhaugh. “And because of our successful public-private partnership with New York State, when our members beat the odds, it’s taxpayers that win.”
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