Operatornieuws
US – Struggling del Lago asks for tax breaks and a fair marketplace
By Phil - 28 maart 2018
Having only been open for just over a year, the US$440m del Lago Resort & Casino in the Finger Lakes in Upstate New York is hoping to secure a better tax rate to ease its struggling revenues.
It has accused one of competitors the Seneca Nation of Indians in western New York of not paying its taxes and reinvesting that cash on marketing incentives to take players from del Lago saying this was ‘a blatantly unfair competitive disadvantage.’
Tom Wilmot, the main Owner of the casino, said the property needed ‘some help’ adding that whilst it was ‘paying the bills’ the venture would not be ‘sustainable’ long term.
Casino spokesman Steven Greenberg explained that the Seneca Nation ceased making tax contributions to New York state and to the local governments last year. allowing it to reinvest $50m into additional promotions and incentives in the Rochester area, to take customers from del Lago. He has asked for ‘a fair, competitive market place.’
Del Lago pays 37 per cent to the state on its slots and 10 per cent on its table games whilst the Oneidas are taxed at 27 per cent of the slot revenue but nothing on the table games revenue.
The Senecas slammed del Lago’s claims, saying they had ‘unrealistic expectations’ when they applied for their gaming license.
The property fell $100m short of its estimated first year of earnings and was downgraded by Moody’s in January from ‘stable to ‘negative.’
Moody's Keith Foley zei: “Ondanks het feit dat del Lago Resort Casino op tijd en binnen het budget is geopend en de totale gaming-inkomsten in het primaire marktgebied substantieel is gegroeid, ligt de omzetgroei van het pand ruim onder de verwachtingen van Moody's. Zonder een substantiële verbetering van de omzet zal del Lago niet in staat zijn een prestatieniveau te bereiken dat de bestaande schuldkapitaalstructuur kan ondersteunen.”
Del Lago is op 1 februari 2017 geopend met bijna 2,000 speelautomaten en 100 tafelspellen. De eigenaren hadden voor het eerste jaar een gamingomzet van 250 miljoen dollar voorspeld.
It generated around $147m in revenue in its first year around 44 per cent below expectations.
