A 10-year record growth period for tourism in New York ended in 2020, when visitors to New York itself dropped by 67%. The economic impact of tourism, on the other hand, dropped by 75%, which caused some concerns. Casinos have also experienced the slow burn of declining foot traffic across the state, with many wondering how this will impact the economy, especially in upstate New York.
The gambling industry in New York generates billions of dollars of revenue every year. Sports betting, lotteries, and land-based casinos drive the figures, but a single-digit change to the casino revenue can impact the economy beyond the gaming floor. Hotels, restaurants, event venues, and local taxes experience a major shift, but understanding the impact provides businesses with new opportunities to start increasing foot traffic again
Factors That Contributed to the Decline
Many factors contributed to the decline in foot traffic in New York’s casinos. One reason for the change is the rising popularity and convenience of online casinos that offer the best real money games. These sites have thousands of slots, with innovative features and high return-to-player ratios that attract users. The welcome, reload, cashback, and tournament bonuses appeal to New Yorkers and visitors who want quick games during a busy commute or between meetings.
While online gambling isn’t legal in New York, these casinos are licensed in places like Curaçao, Malta, and Gibraltar, offering users fast and secure access through smartphones. The wide game selections, convenience, and modern payment methods certainly entice users. This allows them to enjoy a 5-minute reel spin from home or a coffee shop rather than driving to the local casino, which feels more like a weekend getaway or extravagant experience at resort-style venues. Accessibility and convenience have certainly contributed to the decline.
How the Upstate Economy Feels the Effects
Casinos are much more than simple gambling venues. They’re major parts of the economy, supporting bars, gas stations, restaurants, and other nearby entertainment hubs. The secondary businesses also feel the impact of declining foot traffic. Someone who skips the drive to the upstate casino has also skipped drinks at a Schenectady bar, dinner at a Syracuse steakhouse, and possibly a hotel stay in Verona.
The tourism and gambling markets are intertwined, and both are important cogs in the economic machine. Many still consider New York the global economic capital, but upstate New York is experiencing a crippling decline in tourism and casino traffic. Tax revenues also reflect the challenge, which matters because the state’s local and public funding projects rely on revenue to support infrastructure, community programs, and education.
Table games and slot machines make less money when fewer people show up in person. They can’t produce the same revenues for public budgets. There isn’t a crisis-level shortfall right now, but the steady decline has raised long-term concerns and questions for casino-linked tourism.
Convenience Matters More Than Tradition
Upstate New York casinos designed their business models around destination experiences. For example, a trip to Turning Stone would include dining, shows, and spa treatments. That model worked beautifully for years because the experience justified the travel. However, generations are changing, and locals and tourists value convenience more than tradition.
Many forms of entertainment are available immediately, whether through smartphone apps, streaming services, or even digitally broadcast theater. This doesn’t mean the end of the traditional casino era, but it highlights the biggest reason for declining traffic, even when casinos already offer new slot banks, live poker rooms, and entertainment headline acts.
The declining traffic is a trend seen in many other industries. Movie theaters were hit hard when streaming services became everyday entertainment sources, and shopping malls experienced a drastic change when e-commerce exploded. Casinos are experiencing their own transition version, which will change how traffic numbers look on weekdays.
A Drastic Change to Local Identities and Jobs
Employment is a factor to consider as casinos have thousands of Central and Upstate New York locals working as dealers, chefs, security, and hotel staff. Recent downstate casino license bids promised 3700-5000 jobs per site. Staffing requirements adjust when traffic declines, which happens subtly at first. Employees get fewer shifts and less overtime. Even modest pullbacks can impact small towns where most of the locals rely on the jobs.
There’s also a cultural change as casinos like del Lago and Turning Stone have become part of the Upstate identity, attracting visitors from various areas across the Northeast. Lower traffic numbers make it more challenging for small towns to make themselves visible as tourist destinations and a place worth visiting.
How Casinos Can Turn the Tables
Casinos have an edge as they still hold unique advantages like live entertainment, concerts, sporting events, and festivals. Land-based casinos can attract more visitors through full-fledged experiences that online platforms can’t match. Some experiences are better rooted in physical presence, including craft beer festivals, comedy shows, and marquee boxing matches.
Casinos should look into expanding their local business partnerships to create packages that combine more unique tourism elements with gaming. For example, they could offer a weekend deal that includes ski trips, wine trails, or cultural attraction visits, making the casino weave itself into the fabric of Upstate life. Casino venues that become a broader part of the region’s identity will feel compelling enough for locals and tourists to take the drive. There are many other growth strategies local casinos can use to improve visibility and traffic.
Meanwhile, local casinos embracing technology to complement, not compete, will flourish. Traditional New York casinos can develop apps for smartphones, introducing booking systems for restaurants and live events. They can close the convenience gap even before the state legalizes online gambling by offering other convenient services on smartphones, which will bring the traffic back to enjoy the casino floor.
