New York Gov. Andrew Cuomo has sent shockwaves to private casino owners following his resounding rejection of the bailout request of the Del Lago Resort and Casino in Seneca County earlier this month.
Cuomo told reporters that the reason he declined the bailout proposal of the renowned Del Lago Resort and Casino was that the abrupt decrease in revenue of the casino is a private concern. The casino failed to reach the tax set by the state.
It was previously reported that the Del Lago Casino and Resort, which is owned by Wilmorite and Peninsula Pacific, did not make its 27 percent tax grade in its first year.
It was anticipated that the del Lago Casino and Resort would bring in gaming tax that would range between $59 million and $76 million during its year. However, unfortunately, the multimillion-dollar casino was only able to pay $43.29 million in gaming taxes.
Three More Casinos joined Del Lago
In addition to the Del Lago Casino and Resort, other commercial casinos in the state that are currently bending over backward after missing their respective tax targets include Rivers Casino and Resort, Tioga Downs, and Resorts World Catskills.
Owned by the New York-based gambling company, Empire Resorts, the highly recognized Resorts World Catskills officially opened to the public in February 2018 and was supposed to be in the upper echelon of the gambling industry in New York State.
However, the billion-dollar casino failed to make an impact. Its revenue immediately nosedived in just the first week of its operation, according to data collected by the Gaming Board of the New York State government.
Tioga Downs, on the other hand, fell 25 percent short of its tax target because it only paid the state $23 million in gaming taxes. It was presumed the company would pay between $31 million to $38 million to the state.
Another establishment includes the 24-hour gambling establishment at Rivers Casino and Resort, which is located in Schenectady.
Rivers was supposed to bring about at least $69 million in gaming taxes over the course of a year. However, the lack of revenue only allowed the company to hand over $45.94 million to state and local governments, which is more than $20 million short of the projected estimate.
Among the four previously mentioned casinos, Rivers took the biggest hit. It failed to accumulate its tax target by 33 percent.
What’s Next?
Following the state’s rejection of bailout proposals, gambling experts close to the situation believe that authorizing online gambling would help solve the problem and allow the private casinos to make up for their losses.
Although it is legal to gamble in physical casinos in New York, there have been no laws passed in the state that allow the public to take part in online gambling.
Things Might Take A Huge Turn in June
Following the failed attempt to allow online gambling last year, New York Assemblyman J. Gary Pretlow D-Mount Vernon) is giving his Bill A 5250 another chance in the Assembly Racing and Wagering Committee.
Assemblyman Clyde Vanel (D-Queens Village) revealed to Online Poker Report that Bill A 5250, which would allow online poker in the state, has a lot of support and has a total of 13 co-sponsors.
Vanel added that it will soon rise to as many as 70 in the next few weeks.
To be able to proceed to the next stage, the bill should at least get 76 signatures from co-sponsors in June.
Earlier this year, the S 3898 bill, which legalizes online poker, moved to the Senate’s Racing, Gaming, and Wagering Committee following a 10-1 vote.
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