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NYS Exposed: Del Lago gaming revenue falls below expectations

January 06, 2019 11:55 PM

Last January, the investment analyst Moody's said without a substantial improvement in revenue, Del Lago would not be able to support its debt structure.  

New10NBC broke down the latest numbers from the state gaming commission to see if the casino had done enough to change the outlook.

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Del Lago casino and resort in Waterloo opened to much fanfare in early 2017, but the casino never came close to early projections.

Expecting more than $260 million in gaming revenue, the actual number was just shy of $150 million.

The General Manager at Del Lago Casino and Resort, Mark Julieno said, "I think, you know, it's not going to happen overnight, but we'll get there eventually."

News10NBC requested to speak with Del Lago management this week, the request was denied. Even a response via email wasn't provided.

So instead, News10NBC took the latest revenue numbers to someone who analyzes the gaming industry.

Colin Mansfield at Fitch Ratings says over the last 12 months, the casino's gaming revenue went up about 3 percent compared to its first 12 months.

He admits, he doesn't have food, hotel or entertainment numbers, but for casino's like Del Lago he did see a slightly larger increase in the fall after the new general manager came aboard, averaging a million dollars a month in added revenue.

However, it's not likely that increase will change Moody's mind, but how much more of a turnaround is possible?

One dramatic change could be the legalization of sports betting in New York.

Legalized federally last year, it's expected to be given the green light in New York during this year's legislative session.

Del Lago has already partnered with Draft Kings to operate sports betting at the casino.

Credits

Brett Davidsen

Copyright 2019 - WHEC-TV, LLC A Hubbard Broadcasting Company

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