Del Lago Casino Fails to Meet Revenue Expectations

The Del Lago Casino in New York state, which had mentioned that it would generate an estimated $263 million in revenue in its application for the state’s first gaming license, has likely failed to meet its target.

 

According to the final revenue report published in August, the casino has only managed to generate about $88 million. With only the final quarter of 2017 left to cover, it seems next to impossible that the casino will be able to live up to its original estimate.

 

However, the Del Lago Casinos isn’t the only one to report low revenues. The other two state-licensed casinos, the Tioga Downs Casino and the Rivers Casino, have also failed to meet their original projections.

 

The State Gaming Commission, which receives reports on a weekly and monthly basis, told the media that the 3 casinos had projected a total revenue of $599 million by the end of the current year. However, according to the latest reports, they have generated a combined revenue of only $222 million.

 

Business is slow

 

Del Lago, Rivers, and Tioga Downs had opened their doors at the end of 2016. One of the criteria for licensing approval involved projected earnings. The criteria were set by the Gaming Commission after voters approved state-sanctioned gambling as part of a 2013 referendum for non-Indian gambling in the state.

 

The casinos are privately owned and operate outside of the locations where the Akwesasne Mohawk, the Oneida, and the Seneca tribes currently operate their respective casinos. The tribes control a total of 6 casinos together and will be developing another one in the Syracuse area.

 

The state is also home to around 6 horse racing tracks that also provide video slot machines. This includes the popular Finger Lake Gaming & Racetrack, located in Farmington.

 

Casino operators hopeful

 

Executive VP & GM for the Del Lago Casino, Jeff Babinski, told the media that he was confident about the direction in which the casino was headed, despite the low revenue. He called the setting up of the casino a success from several other aspects, referring to the creation of 1600 jobs and the support the casino provides to local businesses through the purchase of local meat, dairy, vegetables, and other supplies and services.

 

He added that the casino had spurned the growth of other smaller, new businesses in the state while also generating tourism revenue. Babinski added that he would continue to put his bets on the Del Lago casino because he felt it was too soon to give up.