The Gaming Facility Location Board of New York recently met for a casino conference in Albany in which all contenders for casino contracts in the Hudson Valley/Catskills area were required to attend. In November, lawmakers approved the development of seven casinos.
While the board fielded questions from casino developers, the board did not have a time set aside for public comment. Residents from the proposed casino site areas—Orange, Ulster and Sullivan counties—were also in attendance.
The three counties have attracted at least 10 bidders. Orange County Attorney Langdon Chapman touted Orange as the casino site that would most benefit the state. Sullivan County property owner, Tony Scandariato said Liberty was the obvious site.
“Orange County is trying to steal the show,” he said. His stance for a casino in Liberty rests on revitalization. “Liberty wants it and needs it more than anybody.”
Others, who spend their summers in Sullivan County’s former Concord resort near Monticello or Nevele resort, do not want a casino and are gathering signatures to block any proposed gaming facilities. State gaming officials will not decide the locale of the casinos until fall.
But that hasn’t stopped Orange County officials from voting 20-1 in favor of a casino or two, or casino operators, such as Genting America, from launching a new public relations spin. The angle has Genting America supporting competitors because together, all casinos meet the different income brackets of their gaming clientele, according to Genting. It proposed a casino for Tuxedo with “forest gardens” and an adventure world with festivals to go along with the state’s annual Renaissance Faire, held on the site.
Supporting other casinos is also a tool for Saratoga Casino and Raceway as it vies for a gaming facility in Newburgh. If Newburgh were to receive the facility, travelers would have plenty of options for gaming.
“We won’t be cutting off the Catskills from New York City and we can also work with them,” Saratoga Casino spokesperson, Rita Cox, said.
The pro-casino vote by Orange County lawmakers is based on whether individual municipalities want to host casinos and doesn’t give into tax breaks for casinos. Instead, lawmakers are requesting funding for Orange County government programs, improvements to infrastructure and for the State University of New York.
Unlike its neighbors, Orange County isn’t suffering economically with the exception of a few towns like Tuxedo, however, a casino in the county would produce high-end revenue and cover the pricey taxes on gross earnings, which could be 37 percent on the low end for slots and 10 percent of the tables.
Such earnings could attract state officials to Orange County, which is less than an hour north of New York City. Tuxedo Town Supervisor Mike Rost said his budget is short $1 million. He’s keeping his options open. Genting has teased Rost with a proposal to build a casino at the Tuxedo Ridge Ski Center and renovate the existing center.
“We’ve got to get some business in Tuxedo,” he said. “We are a small town. This is a big deal for people.” Tuxedo’s rural environment would clash with a casino, some say.
Five of 22 bidders have their sights set on the county. Officials from outside the county are surprised Orange has received that much attention. Woodbury is slated to present a Caesars Entertainment proposal to the public this month, but Tim Rooney of Yonkers Raceway and Empire City casino said a casino on the way to Monticello deters people from driving up north to the Catskills, thereby defeating the economic purpose of the casino referendum.
And the mayor of Yonkers believes a casino within 50 miles of the raceway would force it to close. The facility currently offers video lottery, a prelude to its application for a gambling license. In addition, Empire City suffered when Resorts World Casino opened in 2011. The New York City casino had a video gaming center and racked up $13.9 billion credits to Empire City’s $7.3 million after an 11 percent drop, however, Empire City’s employment rate shot up after 200 people went to work and revenue has once again leveled out. That might be due to the raceway’s $50 million expansion and the $405,003 it sunk into lobbyists in 2012.
Competition to revive the Hudson Valley/Catskills north of Orange County area is also heavy. Eleven bidders, including Caesars Entertainment, have expressed their interest. Among the initial bidders are the Foxwoods Resort operators in Connecticut, who have targeted Liberty, a developer for a $450 million facility to revamp Ellenville, and Grossinger family member Mitchell Etess for a casino by Monticello. Etess heads the Mohegan Tribal Gaming Authority.
Additional depressed areas haven’t been headlined by gaming giants like Caesars, but are competing for a license through local people. For example, small business owner Emil Galasso thinks everyone should have a fair shake. Galasso envisions a boutique-style casino resort near his attraction, Howe Caverns to compensate for the area’s high unemployment rate. The resort would include a waterpark, RV camping and a large Dinosaur exhibit.
The struggle for capital between star headliners and local businesses will most likely stick small business owners with locations no one else wants, Galasso said.
“This is a business that needs capital and that’s where the smaller operations miss out,” Galasso said about casino gaming.
The 22 bidders are using their political and financial pull to gain the coveted licenses. During January and February, bidders and the New York Gaming Association spent $400,000 hiring lobbyists, who have been tied to Gov. Andrew Cuomo for decades.
Before that, $6 million was pumped into baiting lawmakers to pass the measure for new casinos. And applicants have paid $1 million just to enter the bidding process. Bids are due June 30.
Cuomo and other state officials received donations directly from bidders or their entities. Cuomo scooped up $55,000 and his Republican rival Rob Astorino took in $43,500 last year for his re-election campaign as a county executive.
The governor is a staunch supporter of casinos because he views the facilities as economic stabilizers for upstate New York, which is expected to rake in $200 million for licenses alone. Premium fees for casinos closer to New York City will be the state’s icing. Cuomo has promised the licenses will be issued in a timely manner minus government interference.
Gaming industry analyst, Alan Woinski said the state has been aggressive where potential casinos are concerned.
“They obviously want to get this done,” he said.
Meanwhile, Cuomo is keeping the process, overseen by an independent selection board, quiet. Attorney Mylan L. Denerstein reminded Cuomo’s staff in a letter not to leak selection details to bidders and potential bidders, lobbyists or protesters to avoid risking a conflict of interest. The stakes extend to Attorney Patrick Brown, a former member Cuomo’s father’s administration and Alfonso D’Amato, a former state senator. Brown is on Wilmot’s legal team. D’Amato is a leading fundraiser for Cuomo.
The pool of possible conflicts may have been the reason limited liability companies were formed prior to April 23, the deadline for the $1 million bid entry fee.
In the next step of the process, the gaming board was expected to release the required amount of investment each region will need to support a casino. Bidders in the Catskills say the amount will fall between $600 million and $750 million.
Meanwhile, a judge was expected to hear oral arguments May 7 on whether the town of Tyre, N.Y., changed a zoning law to accommodate a casino, now under protest from at least two anti-gaming groups. Casino-Free Tyre is suing the town board and its developer through its attorney, Mario Fratto, who said the zoning law was made without input from the public.
There are several applicants for a casino in the Southern Tier/Finger Lakes Region, including Thomas Wilmot, who is facing opposition from Tyre residents and Stop Predatory Gambling. The national activist organization is headed by Les Bernal. He addressed a group of local protesters on Wilmot’s proposed casino site. Stop Predatory Gambling contends governments should not sponsor casinos.
“So before any debate was really had on if a casino was good, if it’s bad, the economic impacts or anything else, this law was passed which basically already made the decision for the town,” says Fratto. Wilmot’s legal party called for a dismissal.
“You have a state government standing up and encouraging citizens to lose their money on something they are guaranteed to lose,” Bernal said. “It’s a rigged game. They’re putting this stuff on Main Street.”
“The evidence is overwhelming that this is a failed public policy,” Bernal told the protesters about the casino.
