nyga annualreport2015 final interactive

8/18/2019 NYGA AnnualReport2015 Final Interactive

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N E W Y O R K G

A M I N G A S S O C I A

T I O N

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0 1 5 A N N U A L

R E P O R T


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TABLE OF CONTENTSMESSAGE FROM THE PRESIDENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

OUR 9 MEMBERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

FINGER LAKES GAMING & RACETRACK $3 BILLION IMPACT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

HAMBURG GAMING AT BUFFALO RACEWAY 27,000 TOTAL JOBS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

RESORTS WORLD CASINO NEW YORK CITY $888 MILLION FOR EDUCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12EMPIRE CITY CASINO AT YONKERS RACEWAY $218 MILLION IN RACING SUPPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

BATAVIA DOWNS $27 MILLION FOR BREEDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

TIOGA DOWNS CASINO 5,100 DIRECT EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

SARATOGA CASINO AND RACEWAY $39 MILLION IN CAPITAL INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

MONTICELLO CASINO & RACEWAY $77 MILLION IN AID FOR STATE AND LOCAL GOVERNMENTS . . . . . . . . . . . . . . . . . . . . . . . . 22

VERNON DOWNS CASINO & HOTEL $2 MILLION IN CHARITABLE GIVING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2015 DISTRIBUTION OF GROSS GAMING REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

STATEWIDE ECONOMIC IMPACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

EDUCATION REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

IMPACT ON CAPITAL INVESTMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

TAXES PAID BY NYGA MEMBERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

IMPACT ON STATE AND LOCAL REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

ECONOMIC IMPACT OF RACING AND BREEDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

PROMOTING RESPONSIBLE GAMING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

NEW YORK GAMING ASSOCIATION: 2015 ANNUAL REPORT 3

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Welcome to the New York Gaming Association’s (NYGA) 2015 Annual Report. Our

nine member facilities, located in every region of the state, have a $3 billion economic

impact, support 27,000 jobs and provide critical and substantial support for our

schools, local governments, racing and breeding industries, construction industry and

charitable organizations.

This past year marked several notable milestones for New York state’s gaming industry.

Despite saturation concerns, our members’ facilities continue to outperform our competitors

in the Northeast regional market. 2015 witnessed major groundbreakings for NYGA

members including two new hotels at Batavia Downs Gaming as well as Saratoga Casino and

Raceway. Empire Resort’s Montreign Resort Casino project was granted a gaming license

from the New York Gaming Facility Location Board. Tioga Downs was recommended for a

license, but it is awaiting the final approvals before being granted a license. And for the first

time ever, NYGA members’ revenue in support of our schools exceeded $888 million.

We hope this report helps bring to light the many positive impacts NYGA members have

on the economic health and well-being of our host communities. As we enter 2016, we look

forward to continuing our successful partnership with the state.

James Featherstonhaugh

President, New York Gaming Association

MESSAGE FROM THE PRESIDENTBOARD OF DIRECTORS

Michael Speller

Timothy Rooney, Jr.

Daniel Gerrity

Rajat Shah

Brian Hansberry

Charles Degliomini

Jeffrey Gural

Thomas Osiecki

Michael Kane

OFFICERS

James Featherstonhaugh, President

Timothy Rooney, Jr., Vice President

Rajat Shah, Secretary

Ryan Eller, Treasurer

Michael Wilton, Executive Director

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Resorts World Casino New York City is owned by the Genting Group, the world’s largest

destination casino resort operator. The Genting Group has a combined market capitalization

of $40 billion and employs more than 50,000 people worldwide at locations including

Singapore, London and, soon, Las Vegas. Located at the historic Aqueduct Racetrack,

Resorts World Casino New York City opened in October 2011 and now boasts more than

5,000 slot and table game machines.

Yonkers Raceway was founded in 1899, with famous thoroughbreds including Seabiscuit

gracing the track over the years. The fabled Rooney family acquired Yonkers Raceway in

1972 and opened Empire City Casino in October 2006, adding to their East Coast gaming

operations. The facility now offers 5,300 slot and table game machines, live entertainment

and trackside dining.

Owned by Nichols, NY-based American Racing and Entertainment, LLC, and located inthe heart of the Southern Tier, Tioga Downs Casino offers live entertainment and dining in

addition to gaming. The track first opened in the 1970s and reopened in 2006. Since Tioga

Downs Casino opened its doors in July 2006, it has grown to include more than 800 slot

and table game machines.

Vernon Downs Casino & Hotel, also owned by American Racing and Entertainment, LLC,

opened in October 2006 and now has 760 slot and table game machines. Set in idyllic

farm country, the hotel’s 150 suites feature trackside rooms with stunning views. A recentfacilities expansion resulted in the creation of a 15,000-square-foot banquet room that

includes an outdoor rooftop terrace overlooking the racetrack and surrounding countryside.

OUR 9 MEMBERS

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Batavia Downs is the oldest lighted harness track in North America, opening in 1940. Owned and operated

by Western Regional Off Track Betting Corporation, Batavia Downs opened its gaming facility doors in May

2005 and offers more than 785 gaming machines to choose from. The facility also includes three great

restaurants for patrons.

Managed by Delaware North Companies, Hamburg Gaming at Buffalo Raceway traces its origins as a harness

racing track to 1942. Located on the Erie County Fairgrounds, it opened in March 2004 and has 940 video

gaming machines. Buffalo Raceway became a harness racing fixture with the start of the 1960s and was

considered one of the top ten tracks in America. The New York Sires Stakes, a series of statewide races for

two- and three-year-old New York-bred horses, made their debut at the raceway in 1961. This stakes series

remains a part of the current raceway program.

Monticello Casino & Raceway is owned by Empire Resorts, a publicly traded gaming and entertainmentcompany. The track has hosted harness racing since 1958, and the casino opened its doors in June 2004.

The facility boasts more than 1,100 slots and has already hosted more than 5.5 million visitors. In January

2013, the town of Thompson approved a multiphase development plan that would see Monticello Casino &

Raceway move to the famed Concord Resort site in the Catskills.

Saratoga Casino and Raceway traces its history back to 1941, when the first harness racing program was

run. In January 2004, Saratoga Casino and Raceway became the first of NYGA’s members to open its doors

and now boasts more than 1,800 slot and table game machines. The company owns and operates a casinoin Colorado and a racetrack in Kentucky. Recently, Saratoga formed a partnership with Churchill Downs

Incorporated.

Finger Lakes Gaming & Racetrack is owned by Delaware North Companies, a Buffalo, NY-based global leader

in hospitality and food service. Owned by the Jacobs family, Delaware North is one of the largest privately

owned corporations in America with more than $2 billion in annual revenue and 55,000 employees. Delaware

North operates gaming and racing facilities in six other states across the country. Opened in February 2004,

the facility has nearly 1,550 video gaming machines.



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$3 BILLION IMPACTNYGA’s facilities have a combined annual economic impactof $3 billion.

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– Steve George,

Business Representative,

Rochester Regional Workers United

“The good-paying jobs with generous benefits that Finger

Lakes Racetrack provides has a ripple effect on our local

economy, ensuring a brighter future for all our families.”

OPENED 2004, RACING 1962

493EMPLOYEES

$175 MILLIONECONOMIC IMPACT

$60 MILLIONEDUCATION FUNDING



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27,000 TOTAL JOBSNYGA facilities’ economic activity supports more than 27,000 jobs.

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GAMING OPENED 2004, RACETRACK 1942

273EMPLOYEES



– John Philip Tarantino, Jr., President,

Tarantino Foods, LLC

“ As a small, local, family-owned business, our partnership

with Hamburg Gaming allows us to provide jobs for our

employees and to continue to grow our business.”



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$888 MILLION

FOR EDUCATION In 2015, NYGA members generated more than $888 million for education,bringing the total since 2004 to nearly $6.4 billion.

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OPENED 2011

1,100EMPLOYEES

$1.2 BILLIONECONOMIC IMPACT


– Billy Easton,

Executive Director, Alliance for

Quality Education

“ New York state has a constitutional obligation to educate

every child. New York’s gaming revenues provide an

important portion of the funds our schools need.”



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$218 MILLION

IN RACING SUPPORTNYGA members have generated $1.5 billion in support of New York’s Standardbred andThoroughbred racing industries, including nearly $218 million in 2015.

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CASINO OPENED 2006, RACEWAY 1972

1,204EMPLOYEES



Joe Faraldo,

President, Standardbred Owners of

New York

“ New York’s racing, horse breeding and agriculture industries

have experienced a renaissance as a result of the state’s racing-

based VLT initiative and the SOA’s partnerships with Empire City/

Yonkers Raceway —on innovative programs such as international

simulcasting. In order to keep our industry generating thousandsof jobs and positive economic impacts, we must continue to

support and invest in New York state racing.”



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$27 MILLION FOR

BREEDINGSince 2004, NYGA members have generated over $174 million in support of the breeding industryand agricultural related businesses such as family farms, feed producers and veterinarians.

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OPENED 2005, RACING 1940

253EMPLOYEES



– Dan Phillips,

Genesee Valley Farm

“ Revenue generated by Batavia Downs provides critical

support for breeding. This funding helps farms and

breeders maintain their operations and provide horsesto the racing industry.”



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More than 5,100 employees, composed of union and management professionals,are directly employed by NYGA member facilities.

5,100 DIRECT

EMPLOYEES

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CASINO OPENED 2006, RACING 1970S

452EMPLOYEES



– Alison Meyer, Tioga Downs

Marketing Promotions and

Entertainment Coordinator

“ I grew up just down the road and, upon graduating,

was lucky enough to get an internship at Tioga Downs.

Through a series of promotions, I’m now the marketing

promotions and entertainment coordinator. At Tioga

Downs Casino, I have been given the chance to grow asa professional and live in the area that I call home.”



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Since building their original facilities, NYGA members have made capital improvementsthat exceed $1.5 billion.

$39 MILLION IN CAPITAL

INVESTMENTS

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CASINO OPENED 2004, RACEWAY 1941

561EMPLOYEES



– Jeff Stark, President,

Greater Capital Region Building and

Construction Trades

“Construction on Saratoga Casino and Raceway’s new

multimillion-dollar hotel is helping local construction

workers provide for their families now while paving the

way for long-term jobs down the road.”



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$77 MILLION IN AID FOR S

AND LOCAL GOVERNMENTState and local governments have generated over $304 millionfrom NYGA members since 2007.

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CASINO OPENED 2004, RACING 1958

ATE271

EMPLOYEES



– William J. Rieber, Jr.,

Supervisor, Town of Thompson

“The significant and much-needed tax revenue and aid

that Monticello Casino & Raceway generates helps fund

a broad range of services for the town of Thompson.

This reliable revenue stream also allows us to maintain

a balanced budget, meet the tax cap and afford some

property tax relief for our hardworking taxpayers.”



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$2 MILLION IN

CHARITABLE GIVINGA broad range of organizations and causes have received more than $9 million incharitable contributions from NYGA members since 2012.

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CASINO OPENED 2006, RACING 1953

486EMPLOYEES



– Kathleen Stress,

Executive Director, Food Bank

of Central New York

“Vernon Downs’ generous, recurring contributions

to our food bank have helped feed hundreds of

local families in need.”



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2015 DISTRIBUTION OF GROSS GAMING REVENUE

LOTTERY ADMIN & GAMING$195,096,390

CAPITAL INVESTMENT

$182,113,343

EDUCATION CONTRIBUTION

$888,374,609

RACING & BREEDING

$244,969,743

OPERATIONS

$440,409,802

9%

45%

10%13%

23%

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STATEWIDE ECONOMIC IMPACT

Jobs Wages Output*

NYGA Member

Operations

Direct employment 5,093 $180,469.4 $180,469.4

Purchasing and construction 1,052 $80,449.3 $201,153.3

Indirect and induced effects 1,877 $116,365.2 $315,111.2

Subtotal 8,022 $377,283.9 $696,733.9

State Lottery Division

Contracts

Direct impact 315 $15,490.0 $43,869.6

Indirect and induced effects 185 $12,584.8 $33,891.3

Subtotal 500 $28,074.8 $77,760.9

Support for Racing

and Breeding

Direct impact 3,540 $247,564.9 $244,969.7


Subtotal 5,198 $346,844.6 $488,282.3

Revenue for Education Direct impact 7,638 $775,710.7 $888,374.6


Subtotal 11,087 $974,088 $1,429,083.7

Out-of-State-Visitor

Spending

Direct impact 1,267 $46,126.2 $107,437.3

Indirect and induced effects 439 $28,182.7 $75,164.9

Subtotal 1,706 $74,308.9 $182,602.2

Total 26,514 $1,800,600.1 $2,874,463.0

Total EconomicImpact of NYGAMembers inNew York State,CY 2015(jobs in FTEs; wagesand output in $000s)

*Output includes wages,salaries and benefits, andthe purchase of goods andservices.



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EDUCATION REVENUE

Revenue for Education,CY 2004-CY 2015(in millions)

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IMPACT ON CAPITAL INVESTMENT

Jobs Wages Output*

Construction

Spending

Direct impact 176 $13,973.7 $31,688.4

Indirect and induced impact 113 $7,253.7 $19,521.6

Total 289 $21,227.4 $51,210.0

Direct Impact Indirect/Induced Total

State and Local

Taxes

Income tax $663.2 $344.3 $1,007.5

Sales tax $1,199.2 $167.3 $1,366.5

Total $1,862.4 $511.6 $2,374.0

Economic Impactof ConstructionSpending atRacetrack GamingFacilities,CY 2015 (jobs in FTEs;wages and output in

$000s)

*Output includes wages,salaries and benefits, andthe purchase of goods andservices.



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NYGA members pay an effective tax rate of approximately 68% on gaming revenue.

TAXES PAID BY NYGA MEMBERS

GrossGaming

RevenueEducation

Contribution

LotteryAdmin and

Gaming

Support forRacing and

Breeding

TotalMandated

ContributionEffectiveTax Rate

Resorts World $831,223 $365,738 $83,122 $132,996 $581,856 70%

Empire City $558,288 $282,227 $55,829 $55,829 $393,884 71%

Saratoga $160,919 $77,569 $16,092 $16,092 $109,753 68%

Finger Lakes $127,357 $59,905 $12,736 $12,736 $85,376 67%

Monticello $59,326 $23,137 $5,933 $5,933 $35,003 59%

Hamburg $65,227 $22,858 $6,523 $6,523 $35,903 55%

Tioga Downs $57,008 $21,722 $5,701 $5,701 $33,124 58%

Vernon Downs $39,060 $13,671 $3,906 $3,906 $21,483 55%

Batavia Downs $52,557 $21,548 $5,256 $5,256 $32,060 61%

Total $1,950,965 $888,375 $195,098 $244,972 $1,328,442 68%

Effective NYS Tax Rates(mandated payments as apercent of gross gamingrevenues) by NYGA Member,CY 2015 (in $000s)

New York and NeighboringStates Tax Rates

Jurisdiction Table Tax Slot Tax

New York Tribal 0% 25%

Connecticut Tribal 0% 25%

New Jersey 9% 9%

New York Commercial 10% 37-45%

Pennsylvania 14% 55%Massachusetts Resort Casino 25% 25%

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IMPACT ON STATE AND LOCAL REVENUES

Direct Impact Indirect/Induced Total

STATE Education revenue $888,374.6 – $888,374.6

Lottery administration

& gaming operations

$195,096.4 – $195,096.4

State income tax $9,208.2 $22,153.5 $31,361.7

State sales tax $4,276.9 $6,265.0 $10,541.9

State corporate tax $1,152.4 $2,383.7 $3,536.1

Pari-mutuel tax $2,776.2 – $2,776.2

Unemployment insurance taxes $1,774.1 – $1,774.1

Subtotal $1,102,658.8 $30,802.2 $1,133,461.0

LOCAL Aid to municipalities $29,331.2 – $29,331.2

Local income tax $1,799.3 $3,375.2 $5,174.5

Local sales tax $4,293.2 $6,087.3 $10,380.5

Real property tax $20,360.9 – $20,360.9

Water/sewer fees $1,375.3 – $1,375.3

Other local taxes, fees & payments

to municipalities

$614.9 $1,039.7 $1,654.6

Subtotal $57,774.8 $10,502.2 $68,277.0

Total $1,160,443.7 $41,304.4 $1,201,738.1

Economic Impact ofRacetrack GamingFacilities on Stateand Local Revenues,CY 2015



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RACING AND BREEDING SUPPORT

Support for Racing and Breeding Jobs Wages Output*

Direct impact 3,540 $247,564.9 $244,969.7

Indirect and induced impact 1,658 $99,279.7 $243,312.6

Total 5,198 $346,844.6 $488,282.3

*Output includes wages, salaries and benefits, and t he purchase of goods and services.

% Distribution 2015 Support

Standardbred purses 8.75% $86,833.7

Standardbred breeding fund 1.25% $12,404.8

Finger Lakes thoroughbred purses 8.75% $11,143.7

Thoroughbred breeding fund 1.25% $1,592.0

NYRA thoroughbred purses 7.50% $62,341.7

Thoroughbred breeding fund 1.50% $12,468.3

NYRA operations fund 3.00% $24,936.7

NYRA capital expenditure fund 4.00% $33,248.9

Subtotal, purses $160,319.1

Subtotal, breeding $26,465.1

Subtotal, NYRA operations and capital expenditures $58,185.6

Total Racing and Breeding Support $244,969.8

Economic Impact ofRacing and Breeding,CY 2015 (jobs in FTEs; wagesand output in $000s)

Percent Distribution ofTotal Support to Racing/Breeding/NYRA,CY 2015 (in $000s)

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History of Racingand Breeding Support,CY 2004-CY 2015(in millions)



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The New York Gaming Association is a member of the National Council on Problem Gambling. In

addition, NYGA has worked with the NY Council on Problem Gambling to establish industry-wide

programs and standards to address problem gambling and enhance programs already in place that

provide referral information to resources in New York state for problem gamblers, including the state’s

24-hour hotline. Each facility has its own voluntary self-exclusion programs that are open to anyone who

feels it is necessary. Further assistance is available from the Office of Alcoholism and Substance AbuseServices, which can be reached at 1-877-8-HOPENY or by visiting www.oasas.ny.gov.

The association and its members are active and committed to working with the state and other service

providers to ensure that assistance for problem gamblers is readily available to any and all individuals

who require it.

For more information about problem gambling and the resources

available to help, please visit KnowTheOdds.org.

PROMOTING RESPONSIBLE GAMING

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If you or someone you know has

a gambling problem, call

1-877-8-HOPENY


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New York Gaming Association99 Pine Street, Suite 210

Albany, New York 12207

(518) 436-1122

www.newyorkgaming.org

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