I would have hardly bet against this one: a new “independent study” released today by the New York Gaming Association says the legalization of casino gambling would generate big bucks for the state.
According to the study, major investments planned by the nine racinos already in existence would generate more than $3.3 billion in economic output, including wages, salaries and the purchases of goods and salaries while also creating more than 17,000 construction-related jobs.
The study, done by Appleseed, finds that full-scale casino gambling at the nine racinos would generate an additional $317 million in state revenues.
“As this report clearly illustrates, the authorization of live table games will allow our members to create more jobs, provide additional revenue for our state, and to help local governments,” NYGA President James Featherstonhaugh says.
The full report follows:
Major investments planned by the nine racetracks that constitute the New York Gaming Association (NYGA) would generate more than $3.3 billion in economic output, which includes wages, salaries and the purchase of goods and services, for New York State and create more than 17,000 construction-related jobs if a constitutional amendment was passed to allow for live table games, according to an economic impact analysis conducted by an independent firm. When the planned expansion is completed, enhanced gaming would increase the State’s annual economic output by $976 million, and generate an additional 8,200 jobs statewide.
The analysis, conducted by Appleseed, a New York City firm that specializes in providing economic and social research analysis, also estimates that in its first full year of operation, enhanced gaming would generate an additional $317 million in State revenues, including approximately $300 million in annual payments to New York’s public education which is equivalent to the salaries of more than 4,300 teachers. In addition, the projected private investment by NYGA of $1.8 billion in construction would generate nearly $81 million in New York State income, sales and business taxes and more than $36.4 million in local income, sales and business taxes.
The report finds that the proposed amendment would result in an increase in direct employment at the nine racetrack casinos of approximately 5,780 permanent full and part-time jobs. Based on current salaries and wages (escalated at 2.5 percent annually through 2014), annual salaries and wages for these additional jobs would total approximately $210 million. The addition of live table games would result in approximately 8,200 direct, indirect and induced jobs.
“New York Gaming Association members have a solid record of creating jobs and bolstering their regional economies,” James Featherstonhaugh, President of New York Gaming Association said. “As this report clearly illustrates, the authorization of live table games will allow our members to create more jobs, provide additional revenue for our state, and to help local governments. Just as important, our support for agriculture, breeding and the racing industry will increase tremendously.”
The addition of live table games in the nine racetrack casinos would also increase the purchases of goods and services in New York State. When the improved facilities are fully operational, annual spending by New York Gaming Association members on goods and services bought from New York companies would increase by $152.5 million, directly supporting over 575 full-time equivalent jobs in those companies, with wages and salaries of nearly $53 million.
The study estimates that subsidies provided to the racing and breeding industries would increase by approximately $26.3 million annually and directly support over 460 jobs in horse racing and breeding with wages over $13 million. Combining direct, indirect and induced impacts, the projected increase in racing and breeding subsidies would support nearly $53 million in economic output and over 640 jobs in New York State with wages and salaries of almost $24 million.
The nine Racetrack Casinos comprising the New York Gaming Association include:
· Batavia Downs Casino
· Empire City Casino at Yonkers Raceway
· Empire Resorts at Monticello Casino & Raceway
· Finger Lakes Casino & Racetrack
· Hamburg Casino at the Fairgrounds (Buffalo Raceway)
· Resorts World Casino New York at Aqueduct Racetrack
· Saratoga Casino & Raceway
· Tioga Downs Casino
· Vernon Downs Casino & Hotel
Earlier this month, NYGA released the first part one of this economic analysis which outlined the positive economic impact gaming has had on the local economy.
According to estimates from the analysis, in 2011 New York Gaming Association members accounted for 17,400 jobs with 5,431 of those jobs representing direct employment by the nine racetrack casinos. Wages and salaries for those 17,400 jobs totaled more than $855 million including $141.3 million from those employed directly by NYGA members. NYGA members supported 4,724 jobs for the racing and breeding industry.
Additional findings from the report show that, on an annualized basis, New York Gaming Association members in 2011:
· Contributed $1.06 billion in State revenues, of which over $830.5 million went towards education in New York State. This is the equivalent of paying the salaries of more than 11,900 elementary and secondary school teachers throughout New York State; and
· Accounted directly and indirectly for $73 million in revenues for local municipalities.