Gambling sales in the state of New York in 2014 experienced its first decline in years, prompting concern that the state’s decision to award three casino licenses could end up becoming a bad investment.
According to data provided by the State Lottery, gambling sales in the Empire State totalled $9 billion in 2014, a 2% decline from the $9.03 billion the state received in 2013.
The decline in sales affected a handful of industries, including the lottery and the state’s race track casinos. Traditional lottery games, which accounts for a majority of gambling sales in the state, dipped 2.2% to $7.2 billion in 2014. Betting sales from multi-state big jackpot games Powerball and Mega Millions, plummeted 43.5% and 11.8%, respectively.
Sales from lotteries, which has lost a lot of steam since its robust years of generating close to $500 million in sales per year, sunk to under $86 million in 2014, a 16.8% drop from the $103.4 million in sales it earned in 2013.
New York’s gambling sales in 2014 dropped for the first time in years, potentially signaling a saturated market just as three new upstate casinos are in development.
The only redeeming form of lottery for the state has been scratch-off instant games, but even its $3.7 billion in sales in 2014 only represented an increase of less than 1% from its 2013 numbers.
As far as the state’s nine racetrack casinos are concerned, the unsettling thought of less and less people coming and betting in these places became a reality when only two of the nine casinos posted improved revenues in 2014 compared to 2013.