A state audit says upstate New York’s four commercial casinos have been able to avoid paying a collective $13 million in fees because the state Gaming Commission failed to bill them.
The state is supposed to collect fees from all gambling operations to cover the cost of maintaining a regulatory presence at their facilities. Everyone is paying up𑁋contributing to a combined $145 million collected over the last three years𑁋except Rivers Resort & Casino in Schenectady, Tioga Downs Casino Resort near Binghamton, Resorts World Catskills near Monticello and del Lago Casino & Resort in the Finger Lakes.
“The costs to regulate casinos in New York state are supposed to be shouldered by the casinos themselves, but the state Gaming Commission has let some of them slide on this responsibility,” said state Comptroller Thomas DiNapoli. “That has unfairly shifted expenses to taxpayers.”
The Gaming Commission responded by denying any fault and said the money will ultimately be collected. The problem was the state didn’t have regulations in place initially to collect the money, an oversight that has since been corrected, it said.
“The commission appropriately waited for the conclusion of the regulatory process which established rules and methodologies for regulatory fee assessment before issuing its invoices,” said a spokesman.
DiNapoli disputes that. “The commission should bill all casinos for oversight costs in a timely manner and come up with a plan to handle disputes with casinos over these charges as soon as possible,” he said.
Moreover, the audit said, the state has missed out on interest that would have otherwise been earned from the collection of the money.
“Failure to collect all gaming revenues due to the state decreases the amount available for additional school aid and real property tax relief and prevents interest that could have been earned or saved on accurately calculated revenues and promptly received payments.”
Tioga Downs owner Jeff Gural said he expects to the issue to be resolved soon.
“We have a good working relationship with the Gaming Commission and look forward to resolving this issue to the satisfaction of both parties.”
The audit also knocked the commission for not getting all the revenue verification documents available from the three Indian tribes with casinos𑁋the Senecas, Oneidas and Saint Regis Mohawks𑁋to better determine how much revenue they are bringing in and how much they owe the state.
The commission denies this as well, contending that it has multiple oversight measures in place.
“However, should the risk assessment indicate that these are insufficient, the commission will determine what additional steps may be necessary to confirm revenues and exclusivity payment calculations and implement same,” it said.
The Senecas’ bill has soared to more than $250 million, the result of a legal battle with the state over its revenue-sharing obligation. The tribe halted the payments three years ago, saying the obligation is no longer in force. New York says it is, and the state has won a ruling to that effect in binding arbitration and in a subsequent federal court ruling. To date, the money has yet to be paid.
