The Economic Impact of Casinos in New York: A Comprehensive Analysis
Casinos have become a major part of New York’s economy, offering more than just gambling. They have developed into entertainment hubs that stimulate regional economies and offer various advantages to the surrounding towns. Substantial economic activity in the state has been fueled by commercial casinos since they were legalized in 2013.
With more than 34 casinos, the gaming industry in New York has produced billions of dollars in earnings, thousands of employment, and a sizable contribution to municipal and state tax receipts.
Job Creation and Local Employment
One of the primary benefits of casinos in New York is job creation. Casinos have provided thousands of jobs, both directly within the casinos and indirectly through related businesses. For example, the casino industry in New York supports over 69,000 jobs. These jobs range from casino staff to hospitality, entertainment, and maintenance positions. The presence of casinos has also led to increased demand for local services, boosting employment in areas like transportation and food services.
Betting promotions, such as the Golden Nugget Casino Bonus Code, significantly attract more players to online and physical casinos. These promotions encourage increased betting activity, generating additional revenue and supporting job creation. As more people engage in betting, the demand for related services and products rises, further boosting local businesses and creating a positive economic ripple effect. The increased economic activity supports a wide range of jobs, from those directly related to the casinos to those in ancillary services that benefit from the increased traffic and spending.
Revenue Generation
Casinos contribute significantly to state and local revenues through taxes and licensing fees. From 2017 to 2022, New York’s four licensed casinos generated $176 million in gaming tax revenue for local governments. The revenue is essential for funding public services such as education and infrastructure. However, the economic benefits are not evenly distributed.
The uneven distribution of economic benefits is partly due to the varying scales of dependence on casino revenues. Smaller towns with fewer revenue sources benefit more proportionally from the influx of casino taxes. Larger cities and counties with more diverse economies see less impact from casino revenues.
Expanding casinos to downstate areas, including New York City, could significantly boost state revenues. Adding downstate casinos could generate $1.5 billion in upfront revenue and between $471 million to $842 million annually in tax revenues. The expansion is expected to create up to 60,000 permanent jobs and stimulate local economies through construction and operational activities.
Tourism and Entertainment
New York’s entertainment venues have seen an extreme metamorphosis, moving from their previous image as gambling-only hangouts to becoming diverse tourism and recreation centers. Due to this shift, the state’s tourist industry has experienced tremendous growth, attracting a varied clientele and strengthening the local economy.
The development of entertainment venues has made a wider variety of attractions possible. These locations now provide opulent spa treatments, fine dining, and live entertainment. This diversity makes the venues more appealing to a larger group of people, including families and non-gamers.
Seneca Niagara Resort & Casino and Resorts World Catskills, for example, are excellent examples of entertainment venues that have broadened their services to include comedy performances, concerts, fine dining, and wellness centers in addition to gaming.
Impact on Property Taxes
The impact of gaming revenue on property taxes in New York varies significantly between smaller towns and larger cities. Gaming revenue is a substantial part of their total revenue in towns like Nichols, Tire, and Thompson, often constituting between 30% and 60%.
The significant contribution has allowed these towns to reduce property taxes considerably. These areas benefit greatly from gaming revenue, enabling them to cut property taxes and alleviate the financial burden on residents.
Conversely, in larger cities such as Schenectady and the surrounding counties, gaming taxes contribute much less, typically making up just 1% to 3% of their total revenue. The minimal contribution has a less pronounced impact on reducing property taxes. The disparity is due to these cities’ larger overall budgets, where the influx of gaming revenue is diluted by other significant sources of income.
Moreover, the pandemic significantly impacted gaming revenue, with a six-month shutdown in 2020 followed by capacity restrictions. Although gross gaming revenues exceeded pre-pandemic levels in 2022, changes in state gaming laws allowing venues to keep a larger share of their revenue reduced the actual tax contributions. The adjustment resulted in a combined reduction of $41.9 million in expected tax collections, including $8.4 million that would have gone to local governments.
Conclusion
The economic impact of casinos in New York has been substantial, providing increased employment, significant tax revenues, and growth in local retail sales. Adding three new casino licenses is expected to further enhance these benefits. Employment in land-based casinos is projected to grow from 7,897 jobs in 2023 to 13,475 by 2029, marking a 70.6% increase driven primarily by the new casinos.
These new casinos will create thousands of jobs and significantly boost state and local tax revenues, supporting essential public services. Additionally, the increased foot traffic and tourism associated with these casinos will spur local retail sales, benefiting many local businesses.
