Moody's downgrades U.S. gambling industry as New York gears up to build four upstate casinos
Moody's Investors Service downgraded its outlook for the U.S. gaming industry the same day New York regulators received 17 applications to build up to four casinos upstate.
Keith Foley, senior vice president of the ratings agency, said the industry outlook changed from "stable" to "negative" because of recent results.
Revenue fell in April and May in 15 out of 18 jurisdictions that released results despite an improving economy and new regional casinos across the country. Moody's had anticipated small gains.
The declines -- 1.8 percent in April and 0.8 percent in May -- followed an 18-month period of flat revenues. The only exception was the Las Vegas Strip, which continues to perform relatively well.
Total revenue on the strip for the 12 months that ended April 30 was $6.4 billion.
Given the trends elsewhere, Foley said there is "a strong indication that U.S. consumers will continue to limit their spending to items more essential than gaming, even as the U.S. economy continues to improve."
Moody’s now estimates revenues reported by state gaming authorities will decline by 3 percent to 5 percent over the next 12 to 18 months, translating into an overall earnings decline of 4.5 percent to 7.5 percent before interest and taxes.
What does that mean for the revenue projections of the four new upstate New York casinos? The state Budget Division estimates the new casinos, along with an expansion of video lottery terminals on Long Island, will generate $430 million annually in new state and local tax revenue.
A request for comment sent to Gov. Andrew Cuomo's press office was referred to the state Gaming Commission. The commission's spokesman, Lee Park, issued this statement:
In another sign of the gambling's recent struggles, the nine horse tracks in New York with slot machine parlors have been in a seven-month slump, said Gary Greenberg, minority owner of Vernon Downs Casino & Hotel near Syracuse and close observer of the industry.
IF, and that would be a big IF Schenectady got it, well GUARANTEED ABANDONED BUILDING in 15 years time!
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
IF, and that would be a big IF Schenectady got it, well GUARANTEED ABANDONED BUILDING in 15 years time! Then plex will issue $ to retrofit the building for another use. It would only figure the city would get in on this venture after the gambling train has left the station.
This casino would be the last hurrah for Schenectady. Milk the poor of their last remaining dollar$, the casino starts to degrade in the quality of customer... becomes ghetto ... Out of business along with the city. Local developers see this as the last money grab ... Sorry to say but it is obvious this will happen.
This may have already been mentioned in this or another thread, there are several large casinos located in Atlantic City that are closing due to lack of business revenues. One is the Showboat. Can't recall the name of the other, but definitely at least two.
Galesi and his company have spread $169,300 to various state and local political campaigns since 2000, including $6,000 to Gov. Andrew Cuomo.
PROOF POSITIVE!!!!!!!!!!! I am right! KICKBACKS from the billionaire Galesi in return for the city making poor homeowner pay the property and school taxes of billionaire Galesi!!!!!!!!!!!!!!!!!!!!!
So, DV, what have YOU got to say about this?????? Are you, the ALLEGED Catholic, STILL cheering for your city buddy dems for taking from the poor and giving to Galesi.
Well, DV, answer? What's the matter, cat got your tongue? What's the matter, too embarrassed to admit you are wrong and so you are too chicken to reply?
Well???????
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
We all notice that DV has REFUSED to post on this thread because it proves him wrong in his claim that a casino would be wonderful for the city, it proves him WRONG that the city is in a renaissance!!!!!!!!
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
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