Casinos.co.uk: Casino News Archive
Wednesday 30th June 2004
New York racinos may be an endangered species
Wall Street analysts have been speculating about the future of racetrack video gaming in New York. The main factors believed to put the future of this industry under threat are the demands from the state for taking high portions of revenue gained, as well as continuing competition from other markets.
At a conference on June 23, officials from within the industry mooted an idea of changing revenue splits, with the racing industry gaining more, in an attempt to raise money for the operator’s-known as racinos- to raise money for more improved venues. The industry is feeling pressure to develop facilities in response to the expansion of casinos in New York.
Wall Street analysts have expressed doubt that the racinos will be able to achieve this increased revenue, and carry on with their planned improvements and expansion to compete against the Las-Vegas casinos. Currently the Video game parlours are allowed at eight New York tracks, and the governor of the state is suggesting allowing another eight.
Experts doubt however that the racinos will continue to exist, never mind prosper in an increasingly competitive market. Chairman of Christiansen Capital Advisors, Eugene Christiansen has commented that, 'The VLTs are underperforming…the racinos are getting the short end of the stick.” Jacques Cornet of CIBC World Markets commented that , “It’s a difficult market to invest in”, while William Bissett, vice president of Delaware North racino commented, 'It will be a real crapshoot whether we succeed or not…Is it a good investment? Right now, I'd say it's tenuous.'
Source:OnlineCasinoNews
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