Record Slot Growth at New York Gaming Facilities in 1st Quarter

NY Racetrack Casinos Again Outperform All Regional Competitors

New York’s racetrack casinos – bolstered by strong growth in slot machine revenue for the first quarter of 2013 – widened their lead as the top performing gaming facilities in the Northeast, according to new industry figures.

“The numbers don’t deceive,” said James D. Featherstonhaugh, President of the New York Gaming Association (NYGA.) “New York’s racetrack casinos are outpacing other states in performance and return on investment.”

NYGA members saw its gross gaming revenues climb more than 5 percent ($23 million) in the first quarter of 2013. The strong growth was driven by a record-setting March — with revenues up more than 8% percent over the same period a year earlier.

Competing states all saw significant revenue losses during the first quarter of 2013: New Jersey’s Atlantic City casinos declined 14 percent ($75 million); Connecticut facilities declined 11 percent ($37 million); and Pennsylvania declined 4 percent ($25 million.)

New York facilities also significantly outpaced facilities in competitor states in tax revenue generation for education, racing and breeding support, and video lottery operations. Over the first three months of 2013, NYGA members generated nearly $317 million in tax revenues, a $15 million or 5% increase compared to the first quarter of 2012. This includes $220 million for education, a $9 million or 4.4 percent increase compared to the first quarter of 2012.

By comparison, Connecticut, Pennsylvania and New Jersey had tax revenue losses of $9 million, $8 million and nearly $7 million respectively.

With an effective tax rate of 67 percent — one of the highest in the nation — New York generates nearly as much tax revenue as the other three states combined.

NYGA’s nine racetrack casinos have passed New Jersey’s casinos in total revenue, and with the state’s Native American slot machine revenues added, New York is now firmly in the lead as the largest gaming market in the Northeast.

“New York has an extremely successful gaming model,” said Featherstonhaugh. “Right now, the New York market is strong, stable and has the right mix.”

Q1 2013 Gross Gaming Revenue
State Jan-Mar 2013 Jan-Mar 2012 Difference % Change
New York 472,902,295 449,744,891 23,157,404 5%
Pennsylvania 613,525,181 639,352,779 (25,827,598) -4%
New Jersey 456,631,703 532,247,087 (75,615,384) -14%
Connecticut 279,979,074 317,631,133 (37,652,059) -11%
Q1 2013 Tax Revenue
State Jan-Mar 2013 Jan-Mar 2012 Difference % Change
New York 316,844,538 301,329,077 15,515,461 5%
Pennsylvania 208,598,562 217,379,945 (8,781,383) -4%
New Jersey 42,238,433 49,232,856 (6,994,423) -14%
Connecticut 70,324,769 79,407,784 (9,083,015) -11%

Q1 2013 NYS Education

2013 2012 Difference % Change
220,062,017 210,816,282 9,245,735 4.4%

*New York State Gaming Commission Website http://www.gaming.ny.gov/gaming/
*Connecticut Department of Consumer Protection http://www.ct.gov/dcp/cwp/view.asp?a=4107&q=482876 *New Jersey Casino Control Commission Website http://www.state.nj.us/casinos/financia/

*Pennsylvania Gaming Control Board Website http://gamingcontrolboard.pa.gov/?p=216

NYGA’s nine racetrack casinos employ 6,000 New Yorkers, have generated $3.8 billion for education, $170 million for local governments and $839 million in support for the racing industry including family farms, horsemen, breeders and other contributors to the state’s rural economy who preserve open space. For more information visit www.newyorkgaming.org.