In New York and the local government’s decision to allow its four upstate commercial casinos to apply for a temporary reduction in their slot revenue tax rates has reportedly worked out well for the Rivers Casino and Resort Schenectady property.
According to a Sunday report from The Daily Gazette newspaper, the venue owned by Rush Street Gaming processed some $1.57 billion in slot handle for the twelve months to the end of March to bring in gross gaming revenues of $137 million. Despite this success and the five-year-old facility purportedly saw its associated tax rate drop by 15% to stand at 30% for an annual payment to the state of approximately $41.1 million.
Coronavirus comeback:
The newspaper reported that the administration of former New York Governor Andrew Cuomo through the New York State Gaming Commission permitted the jurisdiction’s four upstate commercial to petition for a reduction in their slot revenue tax rates from the beginning of the previous fiscal year. The Daily Gazette went on to note that this move was taken in response to the coronavirus pandemic and could run to as late as 2026 so as to give the quartet time to rebuild their payroll and workforce numbers.
Improving employment:
Debuted in February of 2017, Rivers Casino and Resort Schenectady reportedly employed some 1,050 people before the appearance of coronavirus and re-opened in September of 2020 following an over five-month pandemic-related shutdown with a workforce of 660. The Schenectady County facility purportedly currently has 880 workers and has begun advertising for individuals to fill several dozen open positions.
Reasonable reaction:
Tim Drehkoff serves as the Chief Executive Officer for Chicago-headquartered Rush Street Gaming and he reportedly told the newspaper that the tax reduction was fair owing to the circumstances of ‘the unprecedented coronavirus pandemic’. The experienced professional purportedly moreover disclosed that Rivers Casino and Resort Schenectady is regularly obliged to show the New York State Gaming Commission that it is rebuilding its payroll and meeting its workforce goals.
Drehkoff reportedly told The Daily Gazette…
“We’re pleased that the New York State Gaming Commission approved our request for a lower slot tax rate, especially given the economic and competitive challenges faced prior to and throughout. The new tax rate finally brought tax parity to the upstate casinos, albeit temporarily. The temporary tax reduction allowed us to maintain financial solvency, hire back furloughed team members and continue our contributions toward the economic revitalization of Schenectady.”
Attractive annuals:
Rivers Casino and Resort Schenectady reportedly chalked up an over 12.2% swell in its aggregated gross gaming revenues for the twelve months to the end of March when compared with the pre-pandemic 2019/20. As gaming table and sportsbetting receipts are taxed at a lower 10% rate, the resultant $187.5 million figure purportedly led the property to pay $46.1 million in gambling taxes to leave it with net proceeds of some $141.4 million.