The New York State Gaming Commission announced the results of a new study that analyzed the economic, demographic, and commercial factors impacting the gaming industry in the state. The study, conducted by Spectrum Gaming Group, found that besides the growth in the gaming sector achieved between 2015 and 2020, the gaming industry holds potential to continue growing.
New York State Gaming Commission Reveals Gaming Market Study Results
The New York State Gaming Commission announced on Tuesday that a new study analyzing the state-regulated gaming industry was completed. The report was conducted by Spectrum Gaming Group. The company analyzed the economic, demographic, and commercial factors that are impacting the gaming industry in the state.
“This report provides a valuable tool for the Commission and policy makers to use as discussions continue on the future of the gaming industry in New York,”Brad Maione, spokesman for the New York State Gaming Commission
In a statement, Brad Maione, a spokesman for the Gaming Commission outlined that the report provides valuable data that can be used in discussions regarding the future of the gaming industry in the state both by the Commission and policymakers. Furthermore, Mr. Maione stressed that the paper can assist with making fiscal decisions.
The Gaming Industry in the State Has Potential for Growth
The study acknowledged the inevitable impact of the COVID-19 pandemic on the industry. Based on analysis, Spectrum determined that slowly, the industry will return to pre-COVID-19 levels in 2023.
Focusing on the potential for growth in gross gaming revenue, the study found that that Downstate counties have greater potential for growth. The study estimated that GGR has the potential to grow from $970 million to $4.49 billion for New York City. Furthermore, Spectrum found that Long Island has a potential for growth in GGR from $606 million to $1.13 billion.
The study determined that the potential for the GGR growth in New York City can be captured by creating new gaming venues. On the other hand, the Metro-North region potential can be completed with the help of the approved Orange County video-lottery venue as well as expanding of the gaming facilities Downstate. The study did acknowledge that such gaming expansion may impact negatively existing gaming facilities.
Another topic included in the study was the mobile sports betting. According to Spectrum, the revenue would stabilize in about 3 to 5 years after the launch of mobile sports betting in New York. If the tax rate is set at 10% for both retail and mobile sports betting, an estimated $72 million to $104 million is expected to be generated in tax revenue for the state.
Gaming Sector Growth Creates New Work Places
The new study found that between 2015 and 2020, the growth of the gaming sector in the state has been significant. In 2015, there were some 12,000 people employed by casinos and video-lottery gaming facilities. However, this number grew to 15,700 jobs in 2020. Furthermore, according to the study, from that total, some 3,400 people are employed at the four Upstate commercial properties that are expanding their operations.
According to the researchers from Spectrum, in the entire sector, there are approximately 32,000 people employed. Although the upstate expansion accounted for 17% growth of the total employment, in the period 2015-2020 it accounted for 75% of the growth in the sector.