Field includes big guns and little guys
Contenders for New York State’s coveted first four casino licenses ponied up $1 million each in nonrefundable fees last Wednesday, just to throw their hats in the ring. Applicants include several of the world’s biggest casino owners, a clutch of local developers, and an unlikely team of rivals-turned-partners, Penn National Gaming and the Cordish Companies. A total of 22 groups are now in the running.
Last fall voters approved a sweeping gaming expansion that will bring four commercial casinos upstate, to be followed in seven years by three additional casinos elsewhere in the state. The first four will be located in the Catskill Mountains, the Southern Tier, and the Capital region, which includes Albany and Saratoga. The concepts range from Vegas-style casinos an hour from New York City to contemporary casinos built on the sites of once-thriving Borscht Belt resorts. There’s even a casino proposed for Schoharie County, where the main attraction is a cave.
Las Vegas-based Caesars Entertainment has proposed a $750 million casino complex at the Woodbury Commons shopping mall, 50 miles north of Midtown Manhattan. “The site is ideally suited for the development of a resort casino given its proximity to transportation and other attractions,” Caesars CEO Gary Loveman said in a statement.
Its desirable location and easy access to the massive New York City population base ordinarily might make that site desirable. But Governor Andrew Cuomo has explicitly directed gaming regulators to site the first four casinos in areas that need economic redevelopment. So a location close to New York City may face some pushback.
Saratoga Casino and Raceway, which had hoped to expand its existing operations at the historic track, has backed away from that plan in light of public opposition. The company is now looking at alternate locations, the Associated Press reports: in Newburgh, about 60 miles north of New York City, and in East Greenebush, across the Hudson River from Albany.
Genting Group, which operates the Resorts World Casino at Aqueduct Racetrack in Queens, says it has paid the application fee but has not yet chosen a location. The Malaysian company, which is also building a megaresort in Las Vegas and has invested heavily in South Florida, said it is considering “multiple potential sites” in the Catskills and the Hudson Valley.
In the Southern Tier, Traditions at the Glen resort and conference center wants to build a $150 million casino. Tioga Downs Casino and racetrack in Nichols has pledged to take over operations of the Tioga Country Club and golf course in Nichols if it wins a casino license. And the Wilmorite real estate development firm has pitched its plan for a $350 million casino and resort in the Town of Tyre. “We are full speed ahead and we are definitely in it to win it,” said Chairman Thomas Wilmot Sr.
Emil Galasso, president of the development firm behind the casino proposal in Schoharie County, says the region, which has one of the state’s highest unemployment rates, is in dire need of an economic shot in the arm. To those who may wonder at the wisdom of pairing an underground cave with a casino, Galasso says Howe Caverns is “a built-in attraction, with pre-approved plans for future development such as a hotel and water park.”
A surprise entry in the casino stakes is a partnership of the Cordish Companies and Penn National Gaming Inc., which have battled over casino licenses in several other jurisdictions. The companies have joined forces to consider potential sites in the Albany and Hudson Valley areas, reports the Albany Business Review. The casino would carry Cordish’s famous “Live!” brand and be owned and managed by a 50-50 joint venture of the two companies, the Review reported. The partners also are looking to build a $750 million resort on 120 acres in the village of South Blooming Grove in Orange County.
Flaum Management Company of Rochester has proposed a development to be built on 60 acres near Thruway Exit 23. The company has not yet announced its operating partner there. Speaking recently before a crowd in Albany, David Flaum said he wants to “revitalize” the state capital with the “E-23” project. But some are skeptical about his intentions. According to the Albany Legislative Gazette, Flaum is said to be working on four other casino projects. Assemblywoman Patricia Fahy said she is concerned that Flaum is “just hedging his bets here.”
At the public meeting, Albany resident Joanne Farrell accused Flaum of wanting to build a casino to line his “own pockets.”
“He is working for his own interests,” Farrell said in Flaum’s presence. “He is not concerned with creating jobs or helping the communities.” At that, Flaum offered Farrell a job on his team. “I’d like to hire you as a consultant to help us with some of the issues you are so keenly aware of,” he said. The ploy backfired; Farrell refused and continued to scold Flaum, the Gazette reported.
The Catskills region, which could get two of the four licenses, has attracted a number of contenders. Developer Michael Treanor has proposed a casino on the site of the former Nevele resort in Ellenville. It is the only project proposed for Ulster County. “We’re right on the border between upstate and downstate,” Treanor said. “It’s the perfect location.”
Ulster County Executive Michael Hein said the project, expected to bring more than 1,500 construction jobs and more than 4,000 permanent jobs, could “end unemployment in Ellenville and Wawarsing in our lifetime. It’s astounding.”
Empire Resorts’ planned casino resort would include a 391-room hotel, a conference center, and a 70,000 square foot casino. Empire spokesman Charles Degliomini said the project, which has been in the planning stages for years, could get up and running soon, and “is going to drive tourism from downstate to upstate.”
Muss Development and Foxwoods Resort Casino are also eying the Catskills, and planned to submit its $1 million application by the April 23 deadline.
State gaming regulators will award the licenses this fall.
NEW YORK CASINO APPLICANTS
Catskills:
• Caesars Entertainment (Orange County)
• Concord Kiamesha LLC and Mohegan Gaming New York LLC (Sullivan County)
• The Cordish Companies (Orange County)
• Empire Resorts (Sullivan County)
• Greenetrack, Inc. (Orange County)
• Foxwoods (Sullivan County)
• Nevele (Ulster County)
• The Genting Group (Orange County)
• Saratoga Casino and Raceway (Orange County)
• Trading Cove New York LLC (Sullivan County)
Southern Tier:
• Tioga Downs Racetrack (Tioga County)
• Traditions Resort & Casino (Broome County)
• Wilmorite Inc. (Seneca County)
Albany-Saratoga:
•Capital Region Gaming (Albany County)
• Saratoga Casino and Raceway (Rensselaer County)
• Howe Caves Development (Schoharie County)
• Pinnacle Entertainment (Rensselaer County)
• Cordish (not released)
Haven’t announced location:
• Rolling Hills Entertainment
• NYS Funding/Och-Ziff Real Estate
• Hudson Valley Gaming, LLC
• Clairvest
