Casinos.co.uk: Casino News Archive
Monday 2nd July 2007
Racinos popularity winning through in US
While declining revenues have jeopardised the horse racing industry in some parts of the US, a new breed of racing casino has meant that the state may have brought track money indoors.
Over 35 racetrack casinos, dubbed 'racinos' have opened up in the US since 1992, with five states having new venues in the past three years.
According the American Gaming Association, last year, racinos raked in $3.6 billion of punters' money, which represented a 16 per cent increase from 2005. Some states have so far banned the introduction of racetrack slot machines as casinos in New York and Pennsylvania have already seen a drop in takings after racinos came into being.
The treasury in New Jersey, however, may look to racinos as a way to revive the horse racing industry, which is currently flagging.
Dennis Dowd, of the New Jersey Sports and Exposition Authority, says that "there is no future" for horse racing in New Jersey if racetrack slot machines are not introduced. "That's a cold statement, but it's an accurate statement," he told MNBC.
However New Jersey casinos have been subsidising the racing industry to the tune of $80 million over four years, in the agreement that race tracks would not pursue slots. Across the US, the amount spent gambling at race tracks dropped to $1.7 billion last year, a decline of around 40 per cent in the past decade, according to the Jockey Club. New Jersey suffered considerably, with daily attendance at Meadowlands, the US's premier race track falling to just 4,000 in 2006.
Pennsylvania's four racinos have enjoyed over $300 million in revenue in only the first six months of state-permitted slot machine gambling and Delaware having improved its formerly struggling racing industry since slots were installed in race tracks in 1995. A report will now be published in the summer to consider whether supporting racinos in New Jersey could brighten the racing industry's future.
Source:Direct News
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