Highlights from a recent report by the New York State Comptroller’s Office:
In October 2011, Resorts World New York City Casino (Resorts) opened adjacent to Aqueduct Racetrack. According to NYRA’s Franchise Agreement (Agreement), a percentage of Resorts’ Video Lottery Terminal (VLT) revenue is directed to NYRA for enhanced purses, operational support, and capital expenditures. The Agreement directs that NYRA receive VLT funding until 2033 unless the franchise is terminated before that time. However, the FOB stressed the need for NYRA to develop a plan to become profitable without reliance on VLT subsidies.
NYRA’s overall financial condition, as a result of VLT revenue subsidies, is sound. However, NYRA’s traditional racing operations (which exclude the VLT revenues) have generated multimillion dollar annual deficits. Excluding VLT revenues, NYRA would have generated cumulative operating losses of $109.3 million from 2010 through 2014 (or an average annual loss of about $22 million). Moreover, NYRA has not developed a sufficient plan to make operations profitable without VLT subsidies.
Translation: VLT subsidies make NYRA – which in addition to Aqueduct, includes more prestigious Saratoga and Belmont – profitable. Without them, Thoroughbred racing in NY is failing. (Cheap Finger Lakes also stays in the black through racino cash; all seven harness tracks, too. In fact, I hold that sans racinos, those eight would have been shuttered by now.) Failing – at a clip of about $22 million/year.
End the corporate welfare, NY. And if Horseracing can no longer subsist on its product alone – and it clearly cannot – let it go the way of myriad other American industries that time passed by. As a further incentive, the Empire State will no longer be in the business of sanctioning equine cruelty/killing. Imagine that.
(Previous post on NY’s racinos – “Feeding at the Slots Trough”)