In order to reach the $1 billion per year mark promised to Boston, Suffolk Downs would have to generate the most gambling revenue of any casino in the country, possibly the Western Hemisphere, according to a Boston Globe report.
Caesars casino at Suffolk downs would have to average $400 to $500 in gambling revenue from the 4,000 to 5,000 proposed slots to reach the city’s expectations.
The Boston Globe reports that Resorts Wold in New York City made $696 million on slots in the fiscal year, which ended last march. The “US slot king” averaged $382 per day on about 5,000 slot machines, $300 million less than what Caesar’s has promised to generate for Boston — a city four times smaller than New York City.
Connecticut and Rhode Island casinos generate about $275 per pay in slot revenue, the Boston Globe reports.
Calculations by a UNLV expert suggest a Boston casino would make $600 million to $700 million annually in gaming revenue.
Foxwoods Resorts Casino generated an estimated $800 million last fiscal year in total gaming revenue; Mohegan Sun’s revenue was just over $900 million. Foxwoods is three times the size of the proposed Suffolk Downs casino. And Mohegan Sun claims to be the largest casino in the hemisphere based on gross gambling revenue, the report said.
A consultant hired by Boston believes that Suffolk Downs gambling revenue will fall short of Foxwoods and Mohegan Sun because it is a smaller property.
Boston, Caesars, and Suffolk Downs, however, stand by the $1 billion estimate, the Globe reports.
Since Suffolk Downs would be the only casino in the city, one analyst told the Globe, $1 billion is not impossible.
Boston is promised $32 million a year, plus an “escalating” share of gambling profits once $810 million in gross gambling revenue is met, by Suffolk Downs under the city’s current deal, according to the Globe.
Boston would receive $52 million annually, if the resort reaches it $1 billion mark.
Revere would be guaranteed a minimum $9 million per year payment, worth $15 million if the Suffolk Downs casino raises $1 billion.
A good comparison for the Suffolk Downs proposal is Maryland Live! casino, 15 miles outside of Baltimore, a casino consultant told the Globe. Maryland Live! is projected to make $640 million this year, but that number could grow as it matures, the consultant said.
The same consultant estimated that a Boston casino could make $600 million to $800 million in gaming revenue in a fiscal year.
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