Finger Lakes Gaming and Racetrack has filed a lawsuit in Albany against the New York State Gaming Commission, the commission’s location siting board and the developers of Lago Resort & Casino in Tyre, one of three casino development sites recommended by commissioners. Finger Lakes officials said the proposed 5 million Lago, located 25 miles from the racetrack, would cannibalize revenues from them and surrounding businesses.
“By selecting Tyre, the Location Board is effectively allowing Peter to be robbed to pay Paul. Benefits are being redistributed from one community to another, rather than being maximized for the state as a whole, as specifically mandated by the legislature,” the lawsuit claimed.
In addition, the lawsuit said the siting board excluded casino applicants located between the Catskills and the New York City region, noting those applicants would steal revenue from existing facilities 60 or more miles away.
Lago spokesman Steven Greenberg said, “We look forward to building and operating a great resort that Tyre, Seneca County and New York State will be proud of and that creates thousands of jobs, increases tourism and helps grow the economy of the Finger Lakes region.”
The gaming board also recommended casino sites in Schenectady and the Catskills.
Meanwhile, much speculation has surrounded around what area of New York, if any, will receive the potential fourth casino bid in the state. Governor Andrew Cuomo, along with many others, has championed for the Southern Tier, while some have suggested the Catskills. In the Southern Tier, Binghamton Mayor Richard David has talked to entities regarding the viability of a casino in the city.
David declined to mention what companies they were, however, he said, “I do believe the City of Binghamton would be an attractive place for a casino.” Currently, only Tioga Downs has publicly expressed any interest for a bid in the Southern Tier. Baltimore-based The Cordish Companies is rumored to have a strong interest in Binghamton, but officials will not comment.
Cordish was part of a failed bid last year in New York, when a partnership with Penn National Gaming proposed a $570 million bid in Orange County. Representatives of failed bidders including Caesars, Genting, and Full House Resorts, among others, have no interest in the Southern Tier. Churchill Downs Inc. have declined to comment, citing their status as a publicly traded company as the reason.
Jeff Gural, owner of Tioga Downs, strongly feels the Southern Tier could not support both his racino and another casino 30 minutes away. There are 542,000 people living within an hour of Tioga Downs, which contains 802 video-lottery terminals. “I just don’t think the economics work,” Gural said.
Gural said he tried working with the Hard Rock in February on a bid at Tioga Downs. “They didn’t think the area was big enough to warrant the cost to rebuild it as a Hard Rock.” Gural hopes no other challenger comes in with a bid and is focused on revamping his proposal. “My focus is on our bid and improving it, so the people of the Southern Tier can get a casino license.”
