Revenue from the New York Lottery and its nine racetracks with video lottery terminals (VLTs) has declined in 2020 by 19% when compared to the previous year’s figures, according to data obtained by the USA Today Network New York through a Freedom of Information request.
The closure of racinos from March through September due to the COVID-19 pandemic contributed to the revenue drop said the report. Traditional lottery games, such as Powerball, Mega Millions and Quick Draw, also saw revenue fall.
Total revenue from the lottery games and racinos fell to $8.2bn in 2020 (2019: $10.1bn), the first time in recent history that the lottery had a demonstrable loss. The Empire State’s four upstate casinos, which were also closed much of the year, declined 58% in gross gaming revenue.
The nearly $2bn drop in revenue adds to the state’s fiscal troubles, as the money is used to help fund education.
New York has a $15bn budget gap over the next two years, but most of that will be covered by $12.6bn in federal aid to the state through the latest stimulus package approved by Congress this week.
Brad Maione, a spokesman for the state Gaming Commission, told USA Today: “The global pandemic disrupted businesses in every sector of the economy, including casinos where lottery sales are made.
“While these casinos were closed for a period to keep New Yorkers safe, they are now open, and we expect lottery sales to come back as the economy rebounds overall. The Gaming Commission will continue to work with its partners to help keep customers safe.”
The state expects its games and facilities to rebound, projecting a 9.6% increase or $216m from last year, especially as casinos reopen with expanded hours and more people are vaccinated.
The largest percentage decrease among lottery games was Quick Draw, the keno-like game present in bars that were also closed during portions of the pandemic and still have capacity limits. The game’s revenue fell by 25% in 2020 to $561m, down $185m compared to the previous year (2019: $746m).
The biggest money drop came in sales of instant lottery games, which generate the most money for the state with sales of $4bn a year. However, in 2020, sales dropped by 5%, or by $206m (2019: $4.2bn).
The dip in revenue, particularly for the racetracks with VLTs and the private casinos, comes as the Northeast gaming market becomes more saturated. The nine racetracks with VLTs had a drop in revenue of $1.2bn, down 56%. The four upstate casinos, which started to open from 2017, struggled in their first years but began to show positive signs in the months before the pandemic.
Now they’ll be hoping to bounce back to pre-pandemic numbers over the next year or so, and the potential gambling expansion in the state could help.
All sites are looking to add mobile sports betting, which Governor Andrew Cuomo has embraced since neighbouring New Jersey leads the nation in the market.
As for downstate racinos, Empire City in Yonkers and Resorts World in Queens are awaiting approval to become full-scale casinos with live table games. Gambling companies are also pushing for a new casino in New York City, potentially in Manhattan.
