New York’s Vernon Downs Racetrack and Casino escaped closure last week when the state Legislature approved a tax relief bill. The casino, which is about 40 miles east of Syracuse, will now be able to keep its doors open.
As a condition, Vernon Downs will be required to detail the use of funds resulting from tax adjustment and a plan explaining how the casino will rebuild its economic infrastructure.
“This legislation will allow Vernon Downs to survive as they work to meet their employee threshold,” said Assemblywoman Marianne Buttenschon, co-sponsor of the bill, in a statement.
The casino was faced with closure because of a law stating they had to retain at least 90 percent of full-time equivalent employees that were there in 2016.
The casino, which is owned by American Racing and Entertainment, said that it was not possible to maintain those employment levels because of the economic hit it took during the Covid-19 pandemic.
The resort, which includes a harness racetrack, filed a Worker Adjustment and Retraining Notification (WARN), which is required by the state’s Department of Labor, to notify officials that the business was in danger of shutting down.
The WARN “helps ensure advance notice in cases of plant closings and mass layoffs,” according to the provisions in the act. Approximately 249 employees were at risk of losing their jobs.
Vernon Downs indicated that the slot machines would be shut down in August, followed by the racetrack in September. All of the operations were to cease by December 31.
Now with the new legislation, the racino has been spared. The condition of at least 90 percent of full-time equivalent employees was waived in the bill. Vernon Downs will also see a subsidy to help them become profitable.
“Across New York State, we are facing challenges maintaining acceptable workforce levels. That is why I worked with the leadership of the New York State Assembly, my legislative colleagues, unions, and the owner of Vernon Downs to craft this legislation which provides job security to the hard-working individuals of Vernon Downs,” Buttenschon said in the statement.
