ALBANY – An upstate harness racing track said it will not open as planned later this month because of increased competition from casinos in the area.
Vernon Downs in central New York was set to start its harness racing season April 21, but the opening is being delayed because of “significant financial losses” due to the addition of new casinos in the region, said the track‘s owner Jeff Gural.
Vernon Downs is one of eight racetracks in New York with video-lottery terminals, and Gural also owns Tioga Downs in the Southern Tier that switched to a full-scale casino in December.
“It is extremely unfortunate, but we have no other choice than to postpone the opening day of racing at Vernon Downs,” Gural said in a statement. “The property loses money on racing, so opening racing now only makes a bad situation worse.”
Gural said Vernon Downs would reopen if it gets a better tax rate from the state as it faces increased competition from casino expansions by the Oneidas, the American Indian tribe that owns the sprawling Turning Stone Casino and Resort nearby, as well as the Yellow Brick Road Casino closer to Syracuse.
The Oneidas are also planning
Meanwhile, to the west, the del Lago Casino in the Finger Lakes opened in February. When the third Oneidas casino opens next year, there will be 10 gambling sites between Albany and Batavia.
With 767 video-lottery terminals, Vernon Downs has long battled against Turning Stone, which is just 6 miles away.
But the additional competition has taken an increasing toll on the racetrack, which is looking to start its 64th season of harness racing.
The track‘s revenue
Gural said the track, which has about 300 jobs, has been losing about $150,000 a month since November.
Gural‘s announcement comes after a new tax deal for the track wasn‘t included in the state budget, which was approved Sunday.
“Lowering the tax rate is a way that New York can ensure that properties like Vernon Downs that do not have table games can remain competitive and continue to be an asset within the community,” he said.
There was no immediate comment from the state Gaming Commission on Gural‘s decision.
Vernon Downs isn‘t the only track seeking a better deal from the state.
Batavia Downs because of the increased competition in western New York, and Finger Lakes Racing & Gaming got a new tax deal last year because of neighboring del Lago.