Thursday, July 13, 2000 | 9:20 a.m.
The casino and racetrack has lost more than $2.9 million dollars since it opened in July 1999, said general manager Byron Campbell. Seventeen investors put up $8.4 million to get the casino up and running.
"The return on investment isn't there," Campbell told the Legislature's revenue stabilization and tax policy committee Wednesday. "What they've gotten out of it is nothing."
Racing Commission Chairman Billy Blackburn told the committee that the state's other three racetracks and casinos - the Albuquerque Downs, Sunland Park and Ruidoso Downs - were thriving despite predictions that they might founder.
"Thirty-two million dollars has been created as a result of gaming revenues," Blackburn said. "Despite my comments several years ago, I think the racing industry is flourishing."
Campbell said that the reasons SunRay is unable to make a profit include a small population base, restricted operating hours and an inability to provide the slot machines customers want.
"Our customers tell us on a daily basis that they are tired of playing the same games," Campbell said.
State law allows racetracks to have up to 300 slot machines if they hold races four days a week with nine races a day during certain times of the year.
The state also requires that all four racetracks and casinos be connected to a central gaming system so it can track data effectively.
The state implemented the system in order to audit machines immediately and avoid potential for tampering with data. Campbell said this system is not compatible with the modern games that are in demand.
With competition from nearby Indian casinos that are not required to be on a central system, Campbell said SunRay cannot keep up.
"It's not a problem with how well the (central system) works, the manufacturers of the other games we need are unwilling to get their systems to work with ours," he said. "We need to reinvest in our slot pool and we can't do it."
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