Odds On Racing - Harness Racing

Tioga & Vernon May Close

December 8, 2007

Once again, Jeff Gural is threatening to close his Tioga Downs and Vernon Downs harness tracks. He claims the tracks are losing $1 million a month. “The economics just don't work," he says.

With VLT revenues at the state's racinos disappointing almost across the board, the tracks that host them are suffering. The owners of Monticello Raceway in the Catskills, meanwhile, are contemplating layoffs and going to a seasonal schedule.

Even Yonkers Raceway, the state's largest video-lottery-terminal parlor, has failed to meet expectations, despite its proximity to New York City, analysts said.

“In some areas, especially Yonkers, the win per-day per-machine is much lower than anyone could have anticipated,” said Bennett Liebman, head of the Racing and Wagering Law Program at Albany Law School. “It's just a major disappointment.”

Since April, the revenue per machine per day in New York has averaged $168 a day, according to the state Lottery. Saratoga has averaged $234 a day per machine since April, while Finger Lakes, the state's only privately owned thoroughbred track, is at $224; Yonkers is at $209. Trailing the pack is Monticello at $121.

Track officials said it is difficult to compete with other states such as Pennsylvania, which let tracks keep a larger percentage of revenue and thus can woo gamblers with more amenities and giveaways.