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Racinos Defied 2008's Declining Gaming Trend
by Ryan Conley
Date Posted: 5/20/2009 4:42:13 PM
Last Updated: 5/21/2009 1:08:40 PM
Even though overall United States casino revenues dropped for the first time this decade, domestic racinos registered double-digit percentage growth in 2008, according to a report issued May 18 by the American Gaming Association.
Year-over-year revenues at racinos -- or casinos based at Thoroughbred, Harness, Quarter Horse, and/or Greyhound tracks -- grew 17.2% to $6.19 billion last year, and more than tripling 2002, when $2 billion in revenues were recorded. Overall U.S. casino revenues fell 4.7% to $32.5 billion, the first such decline since the trade organization began tracking such trends in 1999, according to the report, which is titled "State of the States 2009: The AGA Survey of Casino Entertainment."
The AGA report called racinos the primary method of gaming expansion, noting revenue growth was realized in 9 of 11 states where such entities operated in 2007 and 2008. Here is a ranking by gross revenues (Indiana launched racinos in 2008):
| RACINO REVENUE 2007-2008 |
|
|
|
| State |
2008 revenues |
2007 revenues |
Change |
| Pennsylvania |
$1.6 |
billion |
$1.1 |
billion |
50.3% |
| West Virginia |
$951.2 |
million |
$932.2 |
million |
2.0% |
| New York |
$947.3 |
million |
$828.2 |
million |
14.4% |
| Delaware |
$586.9 |
million |
$612.4 |
million |
-4.2% |
| Iowa |
$466.9 |
million |
$455.2 |
million |
2.6% |
| Rhode Island |
$407.5 |
million |
$448.3 |
million |
-9.1% |
| Louisiana |
$395.4 |
million |
$369.4 |
million |
7.0% |
| New Mexico |
$258.1 |
million |
$244.8 |
million |
5.4% |
| Florida |
$228.9 |
million |
$202.3 |
million |
13.1% |
| Indiana |
$205.2 |
million |
- |
|
- |
| Oklahoma |
$92.5 |
million |
$78.7 |
million |
17.5% |
| Maine |
$50.5 |
million |
$43.3 |
million |
16.8% |
Yonkers, N.Y. was the top-ranked racino market by 2008 revenues with $486.46 million, according to data provided to the AGA by The Innovation Group. Charles Town, W. Va., where Penn National Gaming’s Charles Town Races & Slots is located, was second with $454.01 million. Other leading markets included Bensalem, Pa., where Philadelphia Park Casino & Racetrack is located; Wilmington, Del., where Delaware Park Horse Racing & Slots is located; Chester, W. Va., where Mountaineer Casino, Racetrack & Restaurant is located; and Broward County, Fla., where Gulfstream Park Racing & Casino is located.
| TOP INDIVIDUAL MARKETS in 2008 |
|
| Yonkers, N.Y. |
$486.46 |
million |
| Charles Town, W.Va. |
$454.01 |
million |
| Providence, R.I. |
$407.50 |
million |
| Bensalem, Pa. |
$345.50 |
million |
| Dover/Harrington, Del. |
$335.63 |
million |
| Chester, Pa. |
$328.44 |
million |
| Delaware Park/Wilmington, Del. |
$253.29 |
million |
| Chester, W.Va. |
$251.21 |
million |
| Meadow Lands, Pa. |
$244.05 |
million |
| Broward County, Fla. |
$230.21 |
million |
At the end of 2008, there were 44 racinos located in 12 states, and tax contributions rose 16.6% to $2.59 billion. A total of 29,051 employees worked at racinos, an increase of 6.6% over 2007.
The nation in 2008 had a total of 1,606 casinos, slot parlors, and other gambling halls such as card rooms operating in 37 states where such gaming is legal. The number of casino jobs fell 1%, to more than 357,000, while total tax revenue was basically flat at $5.7 billion.
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