News Summary
The small family-run businesses in New York City’s amusement and music industry are facing severe challenges, with numbers dropping from 300 to just 50. Regulatory hurdles and competition from illegal markets are pushing these historic enterprises to the brink. Stakeholders are calling for government support similar to that given to other sectors, as the industry’s future hangs in the balance.
New York City – The decline of small family businesses, particularly in the amusement and music industry, has become a pressing concern for operators in New York State. With only 50 operators left in an industry that saw around 300 businesses in 1975, stakeholders are calling for government action to address the challenges they face. The dwindling numbers reflect a broader trend affecting many small enterprises throughout the state.
Many family-run businesses within the amusement and music sector have found it increasingly difficult to stay afloat, as policies enacted by the New York State government have created a hostile environment for their operations. This decline not only impacts the businesses themselves but also the hundreds of people who depend on them for their livelihoods.
The shift in production of amusement equipment is another factor contributing to the industry’s troubles. Equipment that once was manufactured in the United States is now primarily imported from countries such as China, South Korea, and Taiwan. This change has affected local job opportunities and has resulted in significant economic implications for the industry.
Historically, jukeboxes and amusement machines were staples in diners, coffee shops, and pizzerias, contributing to the vibrant atmosphere of these establishments. However, government regulations have made it financially unfeasible for these venues to maintain such equipment. Consequently, the core business of amusement has increasingly relied on bars, clubs, and entertainment centers, which have traditionally provided financial assistance to struggling venue owners.
The regulatory climate in New York is perceived as excessively demanding, placing a heavy burden on amusement and music operators. Critics argue that the government is not only over-regulating their industry but also providing unfair advantages to competitors, particularly in the tobacco and cannabis markets. The cigarette machine segment, a once-thriving portion of the amusement industry, has taken significant hits due to heavy restrictions on tobacco sales. These limitations have reportedly cost the state approximately $1 billion each year in lost tax revenue due to increased illegal sales.
In contrast to the tobacco market, state funds have been allocated to support cannabis operations. This decision raises concerns, especially given the state’s lenience towards illegal cannabis outlets, which further complicates the competitive landscape for legal businesses. Operators in the amusement industry are now forced to compete with not just other entertainment avenues, but also the New York State Lottery and gambling options like casino gaming, online gambling, and sports betting. These alternatives present lucrative opportunities that overshadow traditional amusement and music offerings.
The state has also invested billions in supporting horse racing and Off-Track Betting, even though these ventures have their own sets of challenges. Such financial support raises questions about fairness as amusement and music operators continue to struggle without similar assistance.
The accumulating pressures from regulatory challenges and competition from both legal and illegal markets threaten the survival of the amusement and music operators in New York. With declining participation in the industry and a significant lack of support, the future looks bleak for many family-run businesses that have stood the test of time.
In light of these challenges, there is a growing appeal among stakeholders for New York State officials to provide equal financial assistance, tax benefits, and business accommodations for the amusement and music sector, much like the support afforded to other industries. Ensuring that this vital sector receives attention and assistance could be key to its continued survival and contribution to the local economy.
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- CBS News: Astoria Bartunek Hardware Celebrates 100 Years
- Wikipedia: Family Business
- My Wabash Valley: Sullivan Dairy Queen – A 51-Year Family Business
- Google Search: Family business challenges
- Stupid Dope: Family-Owned Marijuana Brand Blowing Up
- Google Scholar: Economic impact of family businesses
- Post Bulletin: New Family Will Serve Ice Cream at Iconic Dairy Queen
- Encyclopedia Britannica: Small Business Economy
- CBS News Video: Family-Owned Hardware Store Celebrates 100 Years
- Google News: Impact of government regulations on business
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
