If plans to approve casinos upstate in New York go ahead, then we will be almost certain to see Canadian casinos failing as a direct result of the increased competition. It seems as though profits are already falling at a large amount of the casinos, particularly around the border area, with a drop in profits over the last decade from a huge $800 million to a barely noticeable $100 million.
There are many factors that can be blamed for this change: the rising popularity of casino slots online is certainly one of them, as players can enjoy a much more rewarding form of play on the internet without having to trek their way out to one of the closest land based casinos every time that they are in the mood for a few games. The dollar getting weaker has certainly not helped matters, and neither has the fact that the border has become more restrictive since the September 11 terrorist attacks, meaning that it is not as easy for American players to cross over and start playing. If the addition of more competition in the form of further land based casinos goes ahead, these venues could be in real trouble – on both sides of the border, as they all leech into and cannibalise one another’s profits.
“We’re getting beaten up on all sides,” said Jim Diodati, the mayor of Niagara Falls in Ontario, just over the border from New York. “Any negative effect on the casinos sends a negative message to the businesses that set up on the periphery of the casinos in Niagara Falls. They’re woven into the fabric of the tourism community — the hotels, restaurants are all tied together.”
However, the state government in New York are considering adding as many as seven casinos upstate on Indian land, adding to those which are already operated by the Oneida, Seneca, and Mohawk tribes. “The analysis and history shows that upstate New York presents a good market for casinos, including the Western New York region, and that taking advantage of this opportunity will help us bring much-needed jobs upstate,” the spokesman for the Governor of New York, Matt Wing, said.