Power Cap

Power cap- existential handicapping

16 January 2010

Indians Look To Scalp Racino Revenue




Looks like Mohegan Sun Casino has launched a new marketing campaign in the New York area. With Mohegan Sun slots revenue down over 9% it was time for Mohegan Sun to take some action. Could it be that the success of Empire City casino at Yonkers raceway was beginning to affect their slots revenue? Of course it was. Empire City is located in one of the most wealthy counties in the country; this county is less than two hours from Mohegan Sun and is surely the core area of their market.

The ads which were heard on Westchester's WFAS radio were dismissive of the concept of the racino. Gamblers were urged to go to a "real" casino and not a "racino". The actor in the spot touted Mohegan's real "slots" while mocking Empire City's "video lottery terminals" as not real action. The actors went on to tout Mohegan's full service casino featuring a slew of table games and live poker. The heart of the advertisement was that anyone with a Empire City players club card would receive $100 in slot action if they signed up for a new Mohegan players club card. It looks like Mohegan means business and is looking to re-claim some of it's lost New York business. Mohegan CEO Mitchell Etess admits to poaching Empire City's market
“We realize that Empire City is driving lots of revenue, and there’s no doubt they have created new gamers,” Etess said. “We created this promotion to give them incentive for people who may have begun to enjoy Empire City and are not customers of Mohegan Sun to give them an incentive to drive up and see our property. We’re confident once they get up here they would be inclined to visit us again.”


In an earlier piece in the local press titled "Mohegan sees profits nosedive" Etess admitted that Empire City was affecting Mohegan revenue while being dismissive of the delayed Aqueduct project:

Etess also said the Empire City casino in Yonkers, N. Y., had an impact on revenues.

But Mohegan Sun is planning an aggressive marketing campaign to go after Empire City players card holders. There has been no word yet on the status of the Aqueduct casino project in New York, which Mohegan Sun hopes to operate, but Etess downplayed the impact should the contract go to another operator.

“There is already convenience gaming in Yonkers,” he said, so Empire City would feel the impact of Aqueduct more than Mohegan Sun.





With New York racino operations having a drastic effect on Indian Casino operations in Connecticut would it be hard to imagine that casino interests in Connecticut and New Jersey are the primary forces blocking the Aqueduct racino? The Aqueduct racino is well into it's ninth calender of delays. On it's own nine years of delays are noteworthy, but the manner of hearings, false NYRA scandals and multiple selection processes have rendered the situation a complete farce. It is too bad the local investigative journalists have dropped the ball on this topic. Who are the fixers blocking the Aqueduct construction? How much is being kicked back to whom to keep this project on hold? It seems that blocking the Aqueduct racino has been a cash cow for the local politicians behind the scenes; a golden goose that they have been very reluctant to surrender. Thus the farce continues as casino business nosedives elsewhere.

4 comments:

vic p said...

PC
The Aqueduct racino situation is truly sad.Hard to even hope for a
resolution at this point.
Anyway,been waiting for some sharp inner dirt analysis.
That you've given noting in weeks,speaks volumes.Best of luck.

The_Knight_Sky said...

Power Cap wrote:

Who are the fixers blocking the Aqueduct construction? How much is being kicked back to whom to keep this project on hold?

___________

It has become quite obvious someone is benefiting by obstructing the construction of a racino at Aqueduct. But who?

Can we get John Stossell on this assignment?

How long can Aqueduct hang on in its current dilapidated state before it starts creaking and crumbling?

Wait that started about 5 years ago. Absurd. :(

Power Cap said...

Any further investigation into the Aqueduct situation may be dangerous to ones health.

The holiday break was a nice respite from the never ending entries, results and payoffs. Perhaps I took too much advantage as I never really got back into the swing of things. The racing has been okay at the Big-A, but I have been very selective lately.

Power Cap said...

NYRA is really getting punished by the state for compromising the politicians kickback rackets. Just a few weeks ago NYRA exposed(read between the lines of the no Belmont stakes press release) how politicans have been getting backdoor payments to continue blocking the Aqueduct racino on behalf of Indian gaming and Atlantic City interests. This racino is more profitable for the local politicians unbuilt rather than completed thus it will remain in limbo like at has been for almost a decade.

Magically after exposing the state the politicians strike back with a shakedown from DiNapoli, then some two bit state Assemblyman wanted to look at records, now the environmental cops are in on it too punishing NYRA for speaking out against state corruption. The state has made clear that if NYRA messes with the politicians kickback rackets they will pay.