NY VLT's

[asudevil]

This is the latest report from a leading gaming analyst:

The New York Lottery reported March gaming revenues of $164.6mm, a y/y increase of 56.4%. The growth in March revenues was driven by the opening of Resorts World New York (October 2011), which is now operating at full capacity with approximately 4,992 VLTs. On a same-store basis (ex-RWNY), New York December revenues increased 0.4% to $105.6mm. On a property basis, seven of the eight racetrack casinos (ex-RWNY) reported strong double digit increases for the month. New York’s largest racetrack casino, Empire City at Yonkers Raceway, reported a 10.2% decline in March to $52.4mm. New York’s newest property, Resorts World New York generated $59.0mm in March gaming revenues with an average of 4,992 VLTs.
View: Since the opening of Phase II, RWNY has been averaging $360 in VLT win/day and YTD has averaged $403 in VLT win/day. In our opinion, the early success of Resorts World New York is not surprising as the property draws significant convenience customers from the NY tri-state area. In addition, Aqueduct is only 5 miles from the JFK airport and is well positioned to capture tourists. We believe that the VLT win/day at RWNY should increase in the next few months as the remaining VLT supply is absorbed by the market. In addition, the other racetrack casinos in the state are benefitting from extended hours of operation (19 hours currently and up from 16 hours), the approval of Free Play credits by the state (March 2011) and the addition of e-tables, as well as the incremental content on VLTs (i.e. Wheel of Fortune). Furthermore, New York racinos are hoping to amend the New York State Constitution to permit the addition of live table games and traditional slot machines at the existing nine racetrack casinos.