2013 Tax Revenue for New York Up 3 % While CT is Down 20 %

New York’s Racetrack Casinos Continue Strong Growth While Rest of Northeast Feels Effects of Saturation & Cannibalization

(Albany, NY) New York Gaming Association (NYGA) members continue to out-perform Connecticut, resulting in big gains for education and agriculture. For the first two months of 2013, NYGA’s racetrack casinos topped Connecticut’s destination resort casinos when comparing both gross gaming revenue and tax revenue generated for their respective states. In fact, the nine racetrack casinos that make up NYGA produced more slot revenue than the 14 full commercial casinos in Atlantic City and Connecticut combined, $197 million versus $69 million. NYGA’s racetrack casinos are on pace to generate approximately $820 million for education in the 2012-2013 fiscal year.

In January and February 2013, NYGA members produced gross gaming revenue of $294 million, up $8.7 million or 3 percent over the same period in 2012. By comparison, Connecticut’s casinos produced gross gaming revenue of just $171.7 million, a $34 million or 20 percent decline despite enjoying the advantage of live table games. New York’s racetrack casinos toppled both of Connecticut’s destination resort casinos – Foxwoods and Mohegan Sun – in terms of revenue generated through slot machines for the first time ever this past year. In addition to this historic achievement, New York has shown a steady increase in revenues while Connecticut has been on the decline for several consecutive months.

New York’s 67 percent effective tax rate is more than two-and-a-half times that of Connecticut’s 25 percent. As a result, during the first two months of 2013, NYGA members generated $197 million in tax revenue for New York, up $5.8 million or 3 percent over the same period the previous year, whereas Connecticut’s casinos produced just $42.9 million, a decline of $8.5 million or 20 percent. Of the $197 million in taxes NYGA members generated for the state, $136.5 million of that is dedicated to education, representing a $3.3 million, or 2.5 percent, increase over the same period in 2012.

“As these numbers coming out of Connecticut prove, the Northeast market is at, or very close to, its saturation point,” said NYGA President James D. Featherstonhaugh. “The fact that our members are maintaining healthy growth rates while our regional competitors continue to struggle is a testament to effective management and the successful public-private partnership we enjoy with the state.”

The relative strength of the New York model is further highlighted by comparing it to the Northeast region as a whole. Excluding New York, the other Northeast gaming states of Connecticut, New Jersey, Pennsylvania and Rhode Island, have collectively witnessed a decline of 13 percent over the first two months of 2013. In contrast, the New York market continues to grow. When including Native American casinos, is estimated to be approximately $2.7 billion, fast approaching the day when it will be second only to Nevada.

“We’re accustomed to doing things bigger and better in New York,” said Featherstonhaugh. “We’re on track to be the second biggest gaming market in the nation, and because we do gaming better, we’re generating more money for schools, horsemen, breeders and farmers.”

2 Month Tax Revenue NY vs. CT
State Jan-Feb 2013 Tax Revenue Tax Rate
New York 293,894,069 196,909,026 67%
Connecticut 171,672,394 42,918,099 25%
2 Month GGR Jan-Feb 2013
State 2 Month GGR Jan-Feb 2013 Difference % Change
New York 293,894,069 8,740,081 3%
Pennsylvania 384,189,810 -22,015,490 -5%
New Jersey 283,725,599 -57,216,174 -20%
Connecticut 171,672,394 -34,025,951 -20%
Rhode Island 80,181,660 -5,538,957 -7%

*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
*Rhode Island State Lottery Website http://www.rilot.com/financial.asp#video

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