Tracks Want More Slot Machine Revenue

With rates less than expected at racetracks across the state, the request for those tracks to get a bigger share of the profits in order to survive could not come at a worse time. In fact, it is precisely those tracks that are not currently surviving on their own that are making it tough for the state to continue subsidizing all of the things that they currently use that money for.

Meanwhile, the state is trying to come to a decision regarding who will be running the state’s thoroughbred racetracks, especially since whoever takes it over must be able to not only run the track, but be able to handle the inevitable slot machines that will follow.

Some tracks like Yonkers have had extremely low years, despite its proximity to New York City. Their video lottery terminals have not been producing as much revenue, and thus the harness tracks will likely get even less this year than before. Experts say that it has a lot to do with the fact that they are located so near to larger full blown casinos such as those in upstate New York, Connecticut, Atlantic City, NJ, and now Pennsylvania as well.

The state says that they expect to get somewhere in the vicinity of $482 million from the terminals, which is a little more than $100 million of a difference. Their projections for this year were $586 million, and that just isn’t going to happen now for them.

Some of the harness tracks say that they are going to have to close their doors if the state does not give them more money. They say that they cannot survive on the amount of revenue sharing that they are currently receiving, and are losing close to $1 million a month. They say that layoffs are inevitable for them, as they cannot afford to keep a full staff on board with the amount of revenue they are getting.
 

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