Vernon slots in trouble
January 03, 2007
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Vernon Downs owner Jeff Gural has said the racetrack is losing $500,000 a month and will need a state subsidy from New York State if it is going to be able to survive. Gural was quoted in Wednesday’s Syracuse Post Standard that unless a tax change is made to increase the 30-percent rate the racetrack retains from slot revenue, Vernon won’t be able to compete with nearby Turning Stone Resort and Casino—which pays no taxes to the state.
Vernon must also pay 60 percent of the casino revenues to the New York State Lottery, with another approximate 10 percent going to purses and breeding.
\"We can\'t succeed where basically we\'re being taxed at 70 percent of our revenues and our competition is being taxed at zero percent,\" Gural told the newspaper. \"I don\'t think we can make it the way it\'s structured.\"
According to the story, revenues at Vernon Downs are averaging consistently lower numbers than the projected $1 million a week. According to Gural, last week’s total revenues were about $690,000.
Vernon must also pay 60 percent of the casino revenues to the New York State Lottery, with another approximate 10 percent going to purses and breeding.
\"We can\'t succeed where basically we\'re being taxed at 70 percent of our revenues and our competition is being taxed at zero percent,\" Gural told the newspaper. \"I don\'t think we can make it the way it\'s structured.\"
According to the story, revenues at Vernon Downs are averaging consistently lower numbers than the projected $1 million a week. According to Gural, last week’s total revenues were about $690,000.