Del Lago Casino is getting rid of 300 slot machines
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ALBANY - There's a sure bet among New York's upstate casinos: cut their number of slot machines.
Del Lago Resort & Casino on Monday became the third of the four upstate casinos to gain state approval to lower its inventory of slot machines on its gaming floor.
The state Gaming Commission approved the Finger Lakes casino's request to reduce its number of slot machines by 15 percent, saying it can use the extra space for sports betting when that is allowed in New York.
"Del Lago Resort & Casino looks forward to working with our DraftKings partner to offer sports gaming for our customers," casino spokesman Steven Greenberg said.
"In order to accomplish that, we are seeking to reduce to 1,650 slots and 66 table games. Once construction is complete we will likely increase again.”
The Gaming Commission said at its meeting Monday that del Lago made the request last month "to remove underperforming slot and table game assets and to maximize the efficiency of asset utilization and patron opportunity."
The casino's request
Del Lago, the $400 million facility that opened more than two years ago, was required by state regulations to have at least 1,950 slot machines, 84 table games and 10 poker tables.
The Gaming Commission said its review found that reducing the number to 1,650 slots and 80 total table games, including 14 poker games, would not adversely impact state revenue or result in a reduction in employment at the casino.
"Staff found that the capital investment made exceeded that which was required, that slot utilization data illustrated an overabundance of slot assets exposed for play," Rob Williams, the agency's acting executive director, said at the meeting.
The Tyre, Seneca County, casino indicated last month that it would seek a reduction in the number of slot machines after Resorts World Catskills in Sullivan County and Tioga Downs in the Southern Tier were given approval to do so.
The decrease for Resorts World, the largest of the four upstate casinos, was the most sought: It was allowed to shed 26 percent of its machines, down to 1,600 slots.
Tioga Downs was approved to go from 942 slots to 892 slots.
If del Lago didn't make the change, it would have the most slot machines of the four upstate casinos that were approved starting in 2014.
Rivers Casino in Schenectady has 1,150 slot machines, and it has indicated it has no plans to reduce it.
Why fewer slots?
Del Lago has struggled financially since it opened in February 2017 and has failed to meet revenue projections.
The four upstate casinos all offered rosy financial estimates to the state to win the gambling licenses, but they have all fallen short of their goals.
So with fewer slot machines, it means they can lower costs and increase their win per day per machine, an industry standard to gauge revenue based on how much is bet compared to the number of slot machines.
Casinos want to be at least above $200 a day per machine, but del Lago averaged about $162 per machine this year, while Tioga Downs was close to $200 a day and Resorts World was the lowest at $122 per machine.
To boost its fortunes, Resorts World's parent company, Empire Resorts, last week at nearby Monticello Raceway.
The four upstate casinos are hoping they will get a boost soon from sports betting onsite.
The Gaming Commission has been finalizing the regulations.
