VLTs in NY Shutting Down

Tioga and Vernon Downs are considering closing down, due to high costs, taxes owed to the State, and tough competition. These racinos are the first to formally announce the possible closure at the end of the year, and as highly speculated Yonkers Racino may follow in suit.

The NY State Senate, passed a measure to reduce these racinos' tax obligation to the state by 10%. In other words, 10% less will be going to help education funding, because the racinos need more money for marketing.

Even though it does make some sense, especially since there is competition with Native American, Pennsylvania, Atlantic City, and other NY State racinos, that marketing might be useful. Though, we should ask ourselves how successful are those NY Lottery TV and radio commercials?

With competition already very high, many in the NY State Senate wish to add even more racinos in New York. Common sense tells us, if competition is heavy and racinos are being forced to close; that adding more racinos is not a suitable solution.

Proponents for VLTs argue that New York earned $273 million dollars from VLTs, from 2006-2007. Which when it gets divided, Elmont UFSD receives a check of about $500,000. Yes, it is better than nothing, but in terms of tax relief its contribution is nil. But what many proponents of VLTs would not mention is, how much money is gambled on VLTs.

In 2006-2007, $6.4 billion dollars were spent on VLTs. With only 4.2% of it, actually going to education. 91.9% goes to credit won, or simpler terms prize winnings. With numbers like these, it is no surprise that racinos are losing money. Again, notice where the NY Senate plans to fix this...not the credit win aspect, but the education funding.

During the same time, the NY State Lottery, received a total of $6.6 billion dollars. This figure just marginally higher than that of the VLTs figure. However, 31.2% and $2 billion dollars actually goes to funding education. There is a huge difference between $273 million and $2 billion.

Distribution of VLT funds in NY is broken. New York is still very young in terms of VLTs, and its implications.

New Brunswick, Canada has had VLTs since 1989, the first province to obtain them. Today, they are downsizing and reducing the numbers and locations of VLTs. An idea, that originally thought would bring in revenue for tax relief, instead brought much grief. Close to 5% of the population became addicted gamblers due to VLTs. 56% of the popular knows someone close to them who is an addicted gambler. The population has grown intensively wary about the moral implications on their society, and the effects of it on their children, who many look at VLTs as entertainment and culture high-life. Today, 70% of the population there oppose having them in their community.

Let us hope that the same mistake will not happen in New York. Let is start in Elmont: where morality and our concerns for our children's future must and should come first.