A nearly 800-page report was released into the probe of New York’s casino bidding selection process from last December. Legal ties between the winning bidders and the Gaming Facility Location Board had many crying foul, but chairman Kevin Law said, “We really did the best job we could do.”
The board has also decided to look into a potential fourth casino bid, but will reject all the proposals if they turn out to be mediocre. The board also stated a casino in the struggling Catskills would be the best choice.
Orange County had plans with established gaming companies Genting and Caesars, which on the surface sounds like a boon to the company and their overall chances of obtaining a license. However, it was determined that due to Genting running the Aqueduct Racetrack and Caesars volatile financial situation, their bids would not be the best choice.
The Mohegan Sun also had a bid, which was for a casino in Sullivan County, but was rejected due to some concerns the company would simply drive customers to its Connecticut property, which has been struggling recently themselves. In addition, their proposal was too small according to the board, compared to the Montreign Resort Casino, which eventually won out.
Tioga Downs’ massive expansion plan was also rejected. Tioga Downs owner Jeff Gural said he has already put $100 million into the property, and was upset that was not taken into consideration for his bid. The Lago, on the other hand, was granted a license due to a proposed $425 million capital investment and superior financial plans.
“There’s no question that what I thought was my strongest argument turned out to be my biggest weakness,” said Gural, referencing the property’s improvements. Gural has recently asked the board to come by Tioga Downs and check out the property themselves.
Proximity to New York City was also a factor, as the board hopes to capitalize on the 50 million annual tourists to the area. Another consideration was the “potential cannibalization” of current gaming facilities, which has crippled the casinos in Connecticut and Atlantic City. This eventually led to the board rejecting a fourth bid.
The state will receive $150 million in license fees, nearly a third of all slot revenue, and 10 percent of table games revenue. “You know how much money it cost the state? Zero, nada, niente,” Governor Andrew Cuomo said. “Which makes me very happy.”
