Existing operators nervous about competition
Hundreds of New Yorkers turned out last month during three days of public hearings on new casinos planned for the Empire State. A number of current racino operators also voiced their concern about the impact of new competition on their properties.
A total of 16 development teams are vying for the right to build Class III casinos upstate. Their plans range from a family-oriented complex at a natural cavern in Schoharie County to Catskills resorts based at former grand hotels to a billion-dollar megaresort in Tuxedo, Orange County.
The hearings were held in the Capital Region, Catskills/Hudson Valley and Eastern Southern Tier, all of which are eligible for licenses; it has long been believed that the Catskills will get two licenses to help return the area to its Borscht Belt vitality.
The casino selection board will choose the four winners this month, based on a formula that scores 70 percent for economic activity and business development; 20 percent for local impact; and 10 percent for employment.
As the developers talk up the potential of their projects to revitalize struggling communities, some existing operators are worried that Class III casinos could mean the end of their own businesses. If Genting Americas is granted a license to build its proposed $1.5 billion casino in Tuxedo, it would be a “death knell” for Empire City Casino at Yonkers Raceway, Chief Financial Officer Wayne Smith told the Lower Hudson Journal News last week.
Empire City spokeswoman Taryn Duffy continued the offensive, saying any Orange County casino “would be a poison pill for any economic development in the Catskills.”
“It puts at risk not only the revenues that are generated by one of the most successful casinos in the state but also would ultimately mean layoffs as well,” she said.
“It’s not rocket science,” said Jeffrey Gural, owner of the Tioga Downs and Vernon Downs racinos. “There’s only so many customers.” Gural applied to expand Tioga Downs in the Southern Tier into a full casino with table games, and said he would be “shocked” if he does not win a license.
According to the Auburn Citizen, the proposed Lago Resort & Casino in Seneca County has also created concern among supporters of the Oneida Nation’s Turning Stone Casino in Verona.
The Utica Observer-Dispatch reports that Oneida County Executive Anthony Picente has launched a campaign to fight Rochester developer Wilmorite’s plans to build the $425 million Lago casino resort in Tyre, Seneca County, because of its proximity to Turning Stone.
That prompted a caustic statement from Robert Hayssen, of the Seneca County Board of Supervisors. “My friends in Oneida County have apparently been drinking heavy doses of Turning Stone Kool-Aid,” Hayssen said in a statement.
“They claim the proposed casino in Seneca County would cause irreparable harm to current economic development in Oneida County, costing thousands of area residents their livelihoods,” Hayssen continued. “With all due respect to County Executive Picente, really? You can’t be serious.”
Tribal spokesman Joel Barkin released a statement saying, “Any expansion of gaming shouldn’t interfere with successful gaming development that communities in this state are already realizing.”
The arguments are likely to continue until the selection committee announce the chosen licensees; that announcement is expected sometime this month.
Board leader Kevin Law has said the committee may or may not exercise its right to award four licenses. “The decision could be made to do less than four,” Law recently told Gannett News.
