Casino Executive Summaries Lay It On Thick

In 1777 the British Army devised a plan to split the colonies and end the American War for Independence.  They split New England from the rest of the colonies by taking control of Albany, New York and the Hudson River.  The British efforts eventually ended at the Battle of Saratoga, but the Capital District is no less strategically located today.  At the crossroads of the Hudson and Mohawk Rivers, the Capital District is the gateway to the Mohawk Valley and the Adirondacks.  

So, what better place could there be for a casino!  This history lesson is brought to you by Saratoga Harness and Churchill Downs. It's the opening of the Executive Summary of their casino application; one of 17 such documents, one for each casino application, released on Tuesday by the New York Gaming Commission. I've read through just a few of them so far, but I think I get the idea.  They discuss actual casino gambling a lot less than they do about wholesome family fun, how many jobs they'll create, their grand but tasteful architectural plans, and how they will single-handedly lift long-suffering communities out of poverty.

But they all have their different style and points of emphasis; and each one I've read so far has included at least one notable point of attention (assuring that I will indeed get around to reading all of them before too long). Caesar's, hoping to build in partnership with David Flaum in Woodbury, notes that it has developed a "new style of destination casino," facing outward instead of being inward and "walled off," and promises that Caesars New York will "make use of natural light and sweeping views of nearby Bear Mountain." They also note that their Las Vegas casino has attracted entertainment names the likes of Britney Spears and Celine Dion (and note that Caesars is not amongst the ten developers who have signed an agreement with the Fairgame theater group).

Genting - whose Executive Proposal for their proposed Sterling Forest resort in Tuxedo has, for some reason, large sections redacted - sure doesn't beat around the bush when it comes to articulating their marketing strategy!  They note their proximity to NYC, where there are 11 million tourists annually, "including more than 540,000 Chinese." And, regarding the nearby Woodbury Commons retail outlet mall:

"40% of the sales revenue of Woodbury Commons comes from Asian tourists, who not only have a high propensity to shop but also enjoy full casino gaming.  The Resort can easily develop marketing programs to encourage these visitors to the Resort, adding more exciting experiences to their visits."  

You can't make this stuff up, folks. Well, you can.  But we don't have to. Perhaps, in their efforts to lure those "Chinese" who so enjoy casino gambling, Genting will include "a replica of the Great Wall, exhibits of terra-cotta warriors, and even live pandas" as they plan for their Resorts World Las Vegas.

In the Executive Summary for Jeff Gural's Tioga Downs racino, it is noted that "existing Video Lottery Terminals will be converted to traditional slot machines within 90 days."  That would effectively terminate any payments to the harness racing side based on gaming revenue, and lock in their revenues at 2013 levels, plus or minus an adjustment for CPI, thus shutting them out of all the growth that is promised.  And that is why the horsemen at Monticello are making their long and lonely stand.  It's something that horsemen at Yonkers and NYRA are going to have to deal with at some point, be it in the seven years that we're told that the downstate racinos have to wait; or, more likely, soon after casino gambling comes to the Meadowlands.

Back to the Saratoga Harness/Churchill summary (for their proposed Capital View resort in East Greenbush) - while most of the applicants used the full four pages allowed by the Gaming Commission, Saratoga and Churchill wrapped it all up in a succinct two.  They didn't even bother posturing about responsible gaming as the others did.  Didn't waste any time talking about generous charitable giving to their local community, as opposed to Jeff Gural and the Wilmotte Group (Traditions Glen Resort in Tyre).

But what it lacks in length is made up for with the usual nonsense (as well as at least one typo and some sloppy writing).  "Breathtaking views" of Albany, and "the easternmost of all the proposed casino sites" (Huh?). "Artfully designed to celebrate the familiar forms and images recalled by the Dutch heritage in which we are immersed, while revitalizing and reinterpreting those same images in an unexpectedly fresh and contemporary fashion that speaks to the optimism of our future."  (Do you think they write this stuff with a straight face? )  "The Baseball Hall of Fame, the Olympic Center at Lake Placid, the thrill of climbing Mount Marcy, the Erie Canal, Howe Caverns, one could go on endlessly about the attractions available in the Capital Region of New York and it is our intention to shamelessly promote our home and our state."  (Yeah.  I'm so sure they will.)

And then there's this:

Some may argue that the Capital District is doing well, and by some standards it is.  But one need look no further than the cities of Albany and Troy to see the heartbreaking poverty that a project such as our own can help to alleviate.  The City of Albany with a population 97,856 has 25.4 percent of its citizens living below the poverty line. The City of Troy with a population 50,129 has an unemployment rate of 7.4 percent and 25.9 percent of its citizens below the poverty line."

Bleak numbers to be sure, heartbreaking indeed.  What I also find to be heartbreaking is seeing the grim faces of the people sitting in a lonely trance at the slot machines at Aqueduct and the Saratoga harness track. That's the other side that you don't hear about in this sort of propaganda. It's heartbreaking to me that states like New York have come to depend so heavily on people gambling their money away in order to conduct their business, provide education and basic services to their population.  The pictures we see of young affluent-looking people smiling and laughing as they enjoy a hot night out on the town are a lie.

Of course these casinos will create jobs (even given the loss of jobs elsewhere as residents divert their spending to gambling) and generate revenue for the host communities.  It is with some mixed feelings that I've opposed their creation, given the utter desperation of the towns in the Catskills that have, for so, so long, seen them as a way out of decades of economic stagnation.  But these facilities cater to the most vulnerable and addicted amongst us, and do so heartlessly, nearly 24 hours a day, despite the lip service paid towards responsible gaming, ha. The 1,000 permanent jobs that Capital View promises to create could only make a dent in the kind of widespread heartbreak that they describe; and a small one at that in neighboring cities such as Troy.  Any general uplift of the region due to revenue that flows to the state is surely speculative.  It seems like nothing more than crass exploitation to tout the misery of the unemployed and impoverished in order to gain an advantage in what amounts to a billion dollar corporate sweepstakes.

Casino Bidders Pay ($11 Million) to Play

Here's the report by the NY Public Interest Research Group which details the $11 million spent, in 2012-13, by the players in the casino sweepstakes on lobbying and campaign donations .

   NYPIRG Casino Money

It's surely not a surprise that Genting, and other companies related to its CEO KT Lim, involved in three separate bids (two Orange County bids for Genting, and the Concord proposal by Empire/EPR), led the way, at $2.47 million for lobbying and nearly $1 million on campaign contributions.  In addition to those sums, Empire Resorts itself spent another $665,000 on lobbyists.  You can see the complete lists on pages 3 and 4 of the document above; the list of contribution recipients on page 5, and the lucky lobbyists on page 7.

The single largest recipient of casino companies’ donations was the New York Jobs Now Committee, a casino-backed PAC which lobbied in support of the passage of the statewide ballot referendum that legalized casino gambling last fall. The committee received $1.9 million over the two-year period. [Capitol NY]

Jeff Gural, bidding for the Region Five license at Tioga Downs, is second on the list of campaign contributors at just over $700,000, no doubt in an effort to get the referendum passed; he was the most visible of the racino owners actively involved in that effort. 

Note that, due to a rather gigantic loophole in the disclosure laws, these totals do not include lobbying in cities or towns with populations less than 50,000; only Schenectady amongst the prospective host locations has a population great than that.  So, all of the lobbying that went on to gain the necessary local approvals, of which we can be sure there was quite a bit, is not reported here. Nice.

The report notes that "many bidders spent through vaguely-named holdings" in an effort to mask their true origins.

Flaum Management [involved in the Caesars bid in Woodbury, and the Hard Rock effort in Rensselaer -ed.] contributed through companies such as 12225 Jefferson, LP; 1999 MT RB LLC; 2250 Brighton-Henrietta, LLC; Edgemere Development Inc.; Onondaga Galleries LLC; and The Hague Corporation

And NYPIRG most pointedly points out that there would have been no campaign contributions from bidding companies (and their vaguely-named holdings) if not for the last-minute removal from the casino-enabling law of a clause prohibiting such spending.

Despite being touted in a press release by Governor Cuomo and widely covered by the press in subsequent weeks, this provision was quietly removed soon before the final version of the bill was voted on. The first media report revealing this change was not revealed until 7:39 p.m. in the evening on the day the bill passed, several hours after the Assembly had voted on it. There was so little fanfare behind this decision that, according to one Assemblymember, many members of his house were completely unaware this had been removed before casting votes in favor.

 At the time, Pat Bailey reported on the local CBS6 blog:

When asked about the removal of the language a representative from the Governor's office said all four leaders must agree on the terms of deals cut. I called the offices of each of the three leaders who regularly meet with Cuomo to hash out deals but I did not [receive] comment from anyone except from Speaker Sheldon Silver's office who told me "we were not opposed to the provision in the bill".

 Gee, can't imagine why a bunch of politicians would have that nasty little provision quietly removed!

 - The two remaining slots on the Gaming Facility Location Board have finally been filled, and - another big surprise here - they are reported to be "two more men with close political ties to Gov. Andrew Cuomo." [NYSNYS News]  Dennis Glazer is the husband of Westchester DA Janet DiFiore, whom Cuomo appointed to head the Joint Commission on Public Ethics in 2011 (she resigned a year later prior to running for re-election).  Kevin Law, like fellow Location Board member Stuart Rabinowitz, was appointed by Cuomo as co-chairman of the Long Island chapter of his Regional Economic Development Council.  Law, who at one time worked with top Cuomo aide Larry Schwartz, has periodically issued statements in support of Cuomo initiatives (and one in favor of the governor's working relationship with GOP Senator Dean Skelos).  And, most tellingly, Law had been prominently mentioned as a possible Cuomo running mate for his November re-election bid.

I don't believe that either man would fall in the same category of 'Cuomo crony' as prior appointees William Thompson or Paul Francis.  I detailed their history with the governor in this post.  But still, four of the five members have either worked with/for, or been appointed to a present post by, the reigning governor of New York.  So it would seem as if Cuomo surely has a friendly audience that will no doubt be receptive to his wishes.

Big Saturday at Belmont Promises to Bring More Big Days

Hope everyone had a great holiday weekend.  The Head Chef and I are still down at my mom's place in sweltering Florida, so we were not around for the Stars and Stripes event at Belmont on Saturday.  But I understand it was a spectacular weather day, and the crowd was announced as 11,118 (a bit less than what was reported in the press, but that's the number in NYRA's press release).  An experienced observer who was there noted that there was a T-shirt giveaway, and opined that spinners may have slightly inflated the crowd; he guessed closer to 10,000.   But, we quibble.  There were just 5,047 on hand for the Saturday after the 4th of July last year.  (Though, while the crowd more than doubled, the on-track wagering was up only 56%, indicating that there were a fair number of freeloaders partying out in the backyard.)  So, while Tom Pedulla noted in the NY Times that the crowd was "below expectations," I'd say it was far closer to being the "resounding success" touted by NYRA.

It was sure as heck more than I thought would be there.  In a recent post, I snarkily, and wrongly, dismissed the notion that a couple of million dollar purses and the presence of a less-than-inspiring cast of foreign horses would attract many more customers.  So, good job by NYRA there; including their issuing of free admission to those who bought a seat for the Belmont Stakes.

And the successful day - over $18 million in total wagering - will no doubt lead to more of the "big days."  'Oh, for joy,' says the guy who's not a real big fan of the big days with the plethora of graded stakes and who couldn't care less about foreign horses shipping in.  Personally, I believe NYRA should be concentrating on filling the void left by NYCOTB by working feverishly towards establishing attractive off-track wagering facilities throughout the city rather than striving for the occasional big attendance day on track.  But it's hard to argue with success, or with seeing the old plant hopping.  So Sr. VP of Racing Operations Martin Panza promised more of the same.

"There certainly are a lot more opportunities for people to do something. So for me it’s trying to narrow down big days and narrow down holidays and try to concentrate on those days, provide people with good experience at the track and hope that they will come back on a Wednesday, Thursday or Friday. It’s going to be a slow process, so to me it’s try to do big events, try to do it right and try to produce product on certain days because it’s hard. You’re limited with what you can do.”
.........
“Racing needs to reinvent itself,” Panza said. “People want to see a good product and they want to be entertained. That’s the way we can do it.” [NY Daily News]

In the abovelinkedto News article, Panza also had some comments on Belmont Stakes day.  He noted that 36,000 people came by train, and said that NYRA needed to work with the LIRR to transport them in a more orderly fashion.  He basically blamed the concession company for the food and drink problems; and those long delays getting out of the parking lot? "We need to work better with the local police departments to make sure the plans put in place stay in place for the day and how can we get people out of here better.”  Ah, so it was the cops' fault, should have known.

 - Interesting article in the Times Herald-Record about the ongoing "we're poorer than you" PR debate between Sullivan and Orange County in their bids to attract one or both of the casino licenses designated for that region. Sullivan County officials commissioned a report which concluded:

 Sullivan has the lowest percentage of high school and college graduates, lowest median income, highest unemployment rate and worst health out of six counties examined in the study, including Orange and Ulster.  “It is clear from this study that Sullivan County will circulate the most money the fastest, and have the biggest impact on New York State's economy.”

But Orange County supporters point to the bleak conditions in Newburgh, and furthermore:

The vastly bigger population in Orange means more poor and unemployed people, despite the county's higher incomes and lower unemployment rate.  In other words, Sullivan may be poorer by percentages, but more people need jobs in Orange.

State Department of Labor statistics for May showed that Orange had more than four times as many unemployed residents as Sullivan, and that the jobless total for the City of Newburgh and neighboring towns of Newburgh and New Windsor alone (2,500) was higher than that of all of Sullivan (2,200).

And, regarding those proposed sites in more affluent areas in the southern part of the  county, Orange supporters contend that their locations near NYC will translate into more revenue which will benefit areas throughout the neighboring areas.  The letter released last month by the Gaming Commission made clear that those benefits would "have to provide a considerably greater overall direct and residual economic benefit to the host municipality and surrounding region than a smaller project sited in a disadvantaged region."

This accompanying piece ranks the Catskills and Orange sites in approximate order of impoverishment, with the Concord, in Thompson (Catskills), being the worst - 34% of the 6,725 residents below the poverty line - and Tuxedo (Orange), the site of one of Genting's two proposals and the one, of all the bids, closest to NYC, the least worst (median income over $85,000 and a 30 minute drive from the nearest concentration of poverty).  So, good luck with that bid, Genting.

New NYRA Communications Chief Has Super Experience

I'm curious as to whether it was the first-ever decision for John Durso Jr. as NYRA's new Director of Communications and Media Relations to have the press release announcing his hiring sent out via email at 4:17 on a 4th of July which fell on a Friday to lead off a big summer holiday weekend.  There surely can't be more than one or two better times and days this year to put out a press release that you don't want anyone to see.  That would make sense from the perspective of John Durso, Jr.  He might not want to have to answer all those questions about how his prior job as Senior Director and Chief Spokesperson for NJ Transit would possibly make him qualified for this position.

Well, in the press release, Durso tells us that he is familiar with the sport. 

"As a native Long Islander who grew up with live racing at Belmont and the former Roosevelt Raceway, and as a longtime Capital District resident who spent numerous summers at Saratoga, the chance to join this world-renowned thoroughbred franchise is the thrill of a lifetime."

And, as it turns out, Durso is actually not without relevant experience for this job.  After all, his term at NJ Transit included the Super Bowl at the Meadowlands earlier this year, when a crush of fans attempting to get to and from the game via the railroad made for a mass transit nightmare. Sound familiar?  As opposed to the Belmont Stakes, after which most of the complaints concerned leaving the events, the biggest Super Bowl crush came as fans packed Secaucus Junction station to board trains, after passing through security, headed for the game.  It seems as if NJ Transit vastly underestimated the amount of fans who would be taking the train despite the urging of stadium and public officials to do so.  At least one writer, Star Ledger columnist Paul Mulshine, anticipated the crush.

In December, Clift accompanied me as I took a look at that rail link on a ride to the season’s final Giants game. It didn’t look good, and afterward I phoned NJ Transit spokesman John Durso Jr. and asked him how the agency would handle Super Bowl-sized crowds.

Durso insisted ridership would be only about 12,000, compared with about 8,000 for a regular game. NJ Transit officials stuck with that 12,000 figure, stating that at most it might reach 15,000. The real number turned out to exceed 30,000.

Oops.  It was widely reported that several people collapsed while waiting in sweltering, overcrowded conditions.

Witnesses reported seeing emergency medical workers pushed their way through the overheated crowd to treat the people at the station Sunday.
.........
As more trains arrived, police tried to thin the sweating, jostling crowd by spreading people across the platform.  Initial fan calls of “Seahawks” and “Broncos” gave way to angry shouts of “New Jersey, your Super Bowl sucks!” [WCBS News]

Durso and NJ Transit, however, steadfastly denied that anybody needed medical attention.  What's more, Durso "dismissed questions" as to what NJ Transit might have done better; and, in a rather impressive and brazen display of PR chutzpah, he emphasized that NJ Transit had set a new record “by safely and efficiently” transporting 32,900 customers by rail from MetLife Stadium to Secaucus Junction. [The Record]

I would guess that some people would disagree with that assessment.

Brown, director of the School of Communication and Media at Montclair State University, said that when he exited the stadium, he found himself standing in front of an enormous crowd with no clear plan and no one to direct them.  “People started screaming ‘Can somebody help us!” Brown said. “It was horrifying.”

Try as I may, I cannot find any statement from NJ Transit apologizing or expressing regret at the ordeal that some fans had to endure.  Given the lack of any comment of that sort from NYRA management following the Belmont, it would seem that Durso will fit right in.

So it looks like NYRA has its man.  (As in, man.  White man.  Chief Experience Officer Lynn LaRocca is the only woman to be hired as an executive since the now all-white male New NYRA board was appointed.) Of course, his above statement about the Super Bowl calls his press release quote into question.  After all, he only says that he grew up on Long Island where there was live racing at Belmont and Roosevelt, not that he actually went there; and that he spent summers at Saratoga.  He could be talking about going to see the Philadelphia Orchestra at SPAC for all we know.  In any event, his hiring comes about a month too late.  Had Durso been around during the Belmont, perhaps he would have told us of the safe and efficient experience provided by NYRA and the MTA, pointing out that nobody died.

Tide is Turned on Atlantic City Casinos

The prospect of a casino at the Meadowlands has gotten a big boost with the sudden support for the idea by the New Jersey Senate President Stephen Sweeney.

Sweeney’s revelation....is at odds with the South Jersey Democrat’s public statements in which he has adamantly defended a five-year moratorium, until early 2016, on any discussion of casino gambling in the state beyond Atlantic City. The motivation for that ban, developed in partnership with Governor Christie, was to give the struggling seaside resort a chance to get back on its feet.

But on Wednesday, Sweeney said there is a “very real possibility” that a statewide proposal on expanded gaming could be placed on the November 2015 ballot. [The Record]

This however does not mean that Sweeney and Christie are abandoning the beleaguered gaming city on the Jersey shore.  The idea is that a portion of the revenues would be earmarked for Atlantic City.

Former Atlantic City casino executive Steve Norton, with roots in the industry dating back to the dawn of gaming there in 1978, estimated that the state could collect $300 million to $350 million annually in taxes from a Meadowlands casino. Norton said that if half of that money went toward trying to revive Atlantic City, “it could turn the tide” of declining visitors.

Well, indeed, talk about turning the tide!  It used to be that Atlantic City casinos subsidized the purses at the Meadowlands until Christie put a halt to that when he wasn't busy illegally diverting Port Authority money to subsidize unrelated work on the Pulaski Skyway.  Now we're talking about the Meadowlands - albeit gaming other than horse racing - subsidizing Atlantic City.  The casinos there fought that purse subsidy tooth and nail, and now they're on the other side, how does that feel?

But, really?  Exactly how is such an influx of money going to save the struggling casino business there?  Are they going to build waterparks, dinosaur theaters, and scenic ponds?  Seems to me that the only answer to Atlantic City's woes would be to put all of the existing and future casinos and slots parlors in Pennsylvania and Delaware and New York out of business.  As if it is not already being hurt enough by all the existing competition in the area, a second casino in Philadelphia remains a possibility (Penn National withdrew their bid this week, citing the "ongoing gaming saturation in the mid-Atlantic region.")  And any casinos sited anywhere in the Catskills/Orange County region would be within easy reach of millions of New Jersey residents. 

Speaking of that gaming saturation in the mid-Atlantic region, slot machine revenue in Pennsylvania dropped 6% in June as compared to last year.

Overall gross slot machine revenue for the fiscal year has slipped 4.5 percent, according to figures released today by the Pennsylvania Gaming Control Board. [Philly .com]

 - This is the press release from Empire Resorts regarding the submission of their application to build, in partnership with EPR Properties, a $1 billion casino facility at the old Concord site.  However, as we mentioned the other day, that sum depends on where the other Region One casino ends up going.  As in, not in Orange County.  In the company's own words:

The size of the project, including the amount of capital necessary to complete it, will vary based upon the number and location of competitive licenses issued by New York State in our region.

The casino itself would be called the Montreign Resort Casino; and the entire site, including all the non-casino goodies, will be referred to as Adelaar.  The release also notes that this project already has SEQRA (State Environmental Quality Review Act) approval (which the East Greenbush project, for one, does not), "making this application a front runner that can rapidly deliver the jobs and economic opportunity the Town of Thompson and Sullivan County so richly deserve."

 - The Times Herald-Record reports of a "private, marathon session" between the Town of Woodbury and Caesars Entertainment (which is closing its Showboat casino in Atlantic City) that lead to a 23 page "Host Community Benefits Agreement" [pdf] with respect to the company's proposed casino in that Orange County town. The town board approved it on June 25, leading to a support resolution which passed 5-0 and allowed Caesars to submit its application five days later.   

Included are initial estimates by town officials of almost $1 million for police cars, a court renovation and other capital costs, and about $3 million a year for more police officers and other personnel. The annual expenses would rise by 3 percent each year.

Caesars has agreed to abide by whatever cost determinations the Planning Board makes. Town officials, on the other hand, are entitled to appeal those decisions through arbitration if they disagree.

Caesars, one of eight applicants competing for a casino license in Orange, Ulster and Sullivan counties, also has promised to give the Town of Woodbury $1 million a year for four years, to be spent however the town chooses to alleviate negative effects or for "the betterment" of the community. [Times Herald-Record, limited free access]

The town also scored hiring preferences and ongoing job training for its residents, a pledge to annually source $5 million worth of goods and services from local businesses (including snow removal, florists, and caterers), mitigate traffic problems, construct two all-weather playing fields, build a tree buffer between the casino and local residences (consistent with the requirements of SEQRA, not yet finalized for this project), and a commitment to promote "responsible gaming" (ha ha).  The latter includes keeping billboards at least 500 feet from schools (that's all?) and "airing the casino industry's first broadcast advertising campaign to promote responsible gaming to increase awareness of toll-free helpline numbers." 

So, this town seems to have done pretty well for themselves, both in getting money and, with the responsible gaming nonsense, trying to relieve some of their guilt as they're counting their money while residents become addicted gamblers.  It's an interesting look at just what kind of inducements these companies were willing to offer - and what the towns are able to extract/demand - in return for the local support resolution, required by the Gaming Commission, as the June 30 application deadline quickly approached.  I'd guess that other host agreements have similar goodies for the cities and towns.  In fact, if other companies have also pledged to air "the casino industry's first broadcast advertising campaign to promote responsible gaming" (the reason there haven't been any is probably because there is nothing responsible about casino gambling), it could prompt quite a frenzied race to the airwaves!

Fan Advisory Council "Piles on" NYRA Over Belmont Day

James Odato reports on the Capitol Confidential blog on the letter sent to NYRA by the NYS Racing Fan Advisory Council complaining about Belmont day.  For one thing, and once again, why is Odato writing about this on a blog otherwise almost exclusively devoted to state politics? Would he have reported on the letter if it was complimenting NYRA for doing a great job?  (Then again, would the Racing Fan Advisory Council - a group sorely in need of an acronym so let's call them RFAC - have written such a letter in the first place?)

The letter recounts all of the woes of that day, and says that they do so "not in an effort to 'pile on,'" though that's exactly how it comes across. However, NYRA has no one to blame but themselves for that; as bad as Belmont day was botched, they have similarly botched the aftermath by failing to have Chris Kay and/or other senior executives address it in a serious way.  It was left to poor Jon Forbes of the communications department to act as a "NYRA spokesman" and tell Odato that no, they didn't actually run out of food, it just took a really really long time to replenish some vendors out in the grandstand and backyard (and surely not in the VIP areas in the clubhouse).  Forbes also gives us some stats to suggest that they did in fact have more concessions open than in previous Triple Crown years, which raises the question of exactly how many more people than the announced attendance were actually there.

The RFAC then goes on to undermine their letter by citing this "key recommendation" from their 2012 Report (capital letter is theirs) as being amongst those that could have helped avoid many of the problems if only NYRA had listened to them:

The experience should be improved by lowering the prices of food, beverages and souvenirs, as opposed to raising prices for such items.

Oh yeah, they'll do that.  Name me one other venue in any sport or any entertainment event of any kind that lowers their concession prices on a big day.  If you want people to take you seriously, then come up with serious suggestions.  Besides, the concession prices were hardly out of line the way things are these days, and exactly how would the problems of long lines and delayed supplies have been addressed if beer was a couple of bucks cheaper?

The letter also notes that "NYRA obviously spent significant funds to hire various entertainers, including LL Cool J, Dee Roscioli, Bernie Williams, and Frank Sinatra Jr., to provide brief performances," and suggests that the money could have been better spent otherwise.  For one thing, I highly doubt that they had to pay that group of B-listers (at best) enough for those brief performances to have made a real difference.  Furthermore, maybe if they had spent more money to bring top shelf entertainment (as was suggested would be the case when the whole silly BIG Belmont day idea was announced), and figured out some place for them to perform where people who hadn't spent a lot of money to sit in seats could have actually seen them, then maybe they would have been distracted and not as interested in eating or drinking.

In those ways, the letter belies the grand sense of self-importance with which the RFAC goes on to virtually demand that Kay and Chief Experience Officer Lynn LaRocca attend a forum to be held on an unspecified day at Saratoga.  Given the way that NYRA has responded to the outcry about Belmont day thus far, I wouldn't hold my breath if I was them.

 - It's the 4th of July weekend coming up, and what better way to celebrate the anniversary of the nation's independence than to hold a Stars and Stripes Festival (on the 5th) highlighted by two faux Grade 1 turf invitationals featuring a bunch of B-list foreign runners?  Not a Group 1 winner amongst them. Now that's $2.25 million that could have been better spent enhancing the fan experience on Belmont day.

Fairgame: Fair to Whom?

A coalition of upstate entertainment venues, calling itself Upstate Theaters for a Fairgame, has announced that it has reached agreements with 10 of the 17 casino applicants.  The group is attempting to mitigate any negative effect that the entertainment venues run by deep-pocketed casinos operators will have on their operations.  They include venues such as Saratoga Performing Arts Center (SPAC), Proctors in Schenectady (whose CEO, Philip Morris, is the chairperson of the group), the Times Union Center in Albany, and the Troy Savings Bank Music Hall.  A complete list is available on their website.  The group is asking for the following:

 - Limiting entertainment facilities to no larger than 1,000 seats for the life of the Casino

  -Matching Casino operators and Venues for partnership agreements ranging from sponsorships to booking
  -Guaranteeing there not be exclusivity for talent by date or distance
  -Paying annual fees to the Fairgame Fund to support impacted facilities in the region [reportedly .05% of gaming revenues]
  -Successful agreements will allow us individually to endorse applicants.

Well, the last one sounds more like a threat than a request, but there you go.  According to the Times-Union article, some of the agreements vary from this list of requests.

Now, not everyone thinks this is very fair to anyone other than the members of Fairgame.  David Giacalone, a retired lawyer living in Schenectady who has been active in opposing the proposed casino there, claims that Fairgame is in stark violation of antitrust laws.  He has written to Attorney General Eric Schneiderman to express his concerns:

Fair Game is taking advantage of the Casino Siting process, which includes criteria concerning the formation of partnerships with affected local entertainment venues.  Fair Game is using collective action among the largest theater venues in the State to pressure casino applicants — who are major potential competitors with such entertainment venues — into accepting a stringent, uniform set of restrictions and financial obligations in order to demonstrate Local Support in the Application process.  That pressure is greatly magnified by the very tight and imminent deadlines for all Applicants.

As seen in news articles such as the one that appeared in today’s Schenectady Gazette, Fair Game members not only seek to eliminate competition with casinos for top talent and productions, but also have agreed among themselves to a formula for dividing the revenues received from casinos.

 Giacalone writes a lot more about this on the Stop the Schenectady Casino website here.

By also reaching agreement with seven applicants in the two other Upstate regions that are eligible for casino licenses, the “FairGame” Coalition (Concert Cartel?) may end up achieving joint booking and venue-size limitations, and a revenue-sharing agreement with each of the 3 or 4 winning casinos.  That could mean the equivalent of territorial exclusivity, and joint booking and ticket pricing, for all/each of FairGame members, across all of the eastern portion of Upstate New York, through midState locations such as Utica and Syracuse, and apparently stretching to their members in the Western end of the State.

 No response from the AG office as of yet.

 - Moody's Investor Service has issued a grim outlook on the short-term future of casino gambling.

"The fact regional gaming revenues excluding Nevada remained flat, despite further improvement in the economy and additional regional casinos throughout the U.S., is a strong indication that U.S. consumers will continue to limit their spending to items more essential than gaming, even as the U.S. economy continues to improve," Moody's Senior Vice President Keith Foley said in the report.

U.S. gaming revenues (figured derived from state revenue reports) are estimated to decrease at a rate of 3 to 5 percent over the next 12 to 18 months, according to Moody's. This anticipated slide will cause overall industry earnings to decline by as much as 7.5 percent, the firm estimates. [Albany Times Union]

This is of course a national forecast, not a prediction of how the pending explosion of Northeast casinos (the exact size of which is pending the outcome of November's repeal referendum in Massachusetts) will effect business at those and existing casinos in the area.  You'd think that the national trend does not bode well for all of the new facilities.  But the 17 bidders for New York casinos, throwing around spending promises as they are, don't seem to be very concerned.

Casino Race Gets Full Field at Post Time

On deadline day, 17 bids for a casino in New York State were formally submitted to the New York Gaming Commission.

With unofficial results in, about 25,000 pounds of paper was delivered to the Schenectady loading dock of the New York Gaming Commission by the 4 p.m. deadline Monday. [Capitol Confidential]

That means that there were no surprise last-minute dropouts, which may come as a surprise to some. In the Exhibit B meeting notes submitted with the East Greenbush complaint, it was noted that 'Feathers' suspects "only 14 will follow through on June 30."  He suspected wrong.  "May drop out" was the notation for Howe Caverns, but that proposal is indeed in, and in a big way. 

The Howe Caverns project, according to people involved, calls for $330 million to $450 million in spending and would include a waterpark, a dinosaur theater and two hotels, a 254-room lodging house at the casino and a 250-room hotel at the waterpark side of the project. [Albany Times-Union]

OK, we've heard a lot of nonsense concerning the waterparks and other extra attractions planned for these facilities (in large part to soften and obscure the image of them actually being hardcore gambling parlors), but I'm pretty sure that this is the only proposal that includes a dinosaur theater.  Have a feeling that one may lay quite a big egg.  The Howe Caverns team has also engaged casino developer Michael Malik, who is associated with the Ilitch family of Detroit, who owns the Tigers and the Motor City Casino, and which hoped at one time to operate a casino in partnership with the Shinnecock tribe on Eastern Long Island.  In 2010, Malik had New York campaign contributions, including one to the IDC head Senator Jeff Klein, returned due to his being fined in California for illegally failing to report campaign contributions.  According to the Times Union article, Malik "would own the gambling hall." 

The developers are pledging to create a $1 million fund for workforce training and another $1 million fund to pay for tourism activities in the region and hope to market their project as an attraction in the neighborhood of Cooperstown's Baseball Hall of Fame.

Malik could probably score some Detroit Tigers caps for gamblers.  I mean, that seems like a natural doubleheader, doesn't it?  Take the family to see the Hall of Fame, and then a little gambling and waterpark fun.

Genting has two active bids in Orange County.  We've written some about the proposal for Tuxedo; the other one is proposed for Montgomery, NY, whose town board granted unanimous approval to the project last month.

One surprise was that Empire Resorts/EPR Properties announced that it has increased its investment in their proposed casino at the Concord to $1 billion, up from $750 million.  You can build a lot of waterparks and dinosaur theaters with that kind of money.  Here's a photo, from the Times Herald-Record, of Empire Resorts Executive VP Charlie Degliomini with the truck carrying their 280 boxes of documents.

The sign says: #MakingSullivanCountyProud. I'm so sure.

Empire would contribute $630 million for the casino with EPR chipping in the rest for a water-park hotel, adventure park and golf course—and gambling operations. "Empire has the advantage of committed financing in place, no matter the competitive environment," said Emanuel Pearlman, chairman of Empire. [Wall Street Journal]

Oops, no dinosaurs here, just an adventure park.  (Amongst other family fun.  Check out the home page of their website; the word 'casino' is mentioned exactly once amongst all those picturesque photos.)  Part of that committed financing, according to the Times Herald-Record, would come, not surprisingly, from the Genting-affiliated Kien Huat Realty.  However, there is a catch. 

But that $1 billion figure would be considerably less if there's an Orange County casino. That reflects the much-publicized concerns of Sullivan and Ulster projects that an Orange casino would slash their business because of its proximity to New York City. [Times Herald-Record, limited free access per month]

Other developers piled on with the extra enticements.  Mohegan Sun and Louis Cappelli, proposing a casino on another part of the Concord property, promises to renovate the old Grossinger's resort and golf course, and to redevelop three acres in downtown Monticello.  Cordish/Penn National would start a program to "attract new or existing out-of-state manufacturing, computer science, and research businesses to the Hudson Valley-Catskills Region."  Caesars would invest $10 million in the community, including "two all-weather turf fields."  It goes on and on.  As if these companies could really genuinely care one iota about these communities or about anything other than their bottom line.

East Greenbush Town Board Casino Meetings Notes Provide Insight

Here is the "lengthy petition," as appropriately described by the Albany Times-Union, filed by the Save East Greenbush group against the Town Board, the Gaming Commission, and those planning/hoping to construct a casino there.

  Save EG vs state Petition

For those of you who don't actually plan on reading through the 65 pages, meaning just about everyone (we're down in Florida where it's really hot and I have some time on my hands), the complaint basically boils down to two items:

 - The Special Meeting during which the Town Board adopted the resolution supporting the casino was held in violation of the Open Meetings Law, which states that "it is essential to the maintenance of a democratic society that the public business be performed in an open and public manner and that the citizens of this state be fully aware of and be able to observe the performance of public officials and attend and listen to the deliberations and decisions that go into the making of public policy."

Whew, well that makes just about every decision coming out of the room in Albany, where the three or four white men ultimately determine matters pertaining to budget and law, illegal!  But in this case, the petitioners contend that the room in which the meeting was held was simply too small, causing some 80 people to be turned away.  They point out that two prior meetings were held in schools that had plenty of room, implying that there was a sinister purpose to this particular meeting being held in a room with limited space.  And that the town scheduled it there "despite having been put on notice numerous times that the facility was clearly inadequate."

 - The Town adopted the resolution in favor of the casino without an environmental review having been conducted. That is in "blatant" violation, the complaint contends, of the State Environmental Quality Review Act (SEQRA), which specifically states that its "basic purpose" is to "incorporate the consideration of environmental factors into the existing planning, review, and decision-making processes....at the earliest possible time."  With the emphasis on the italicized phrase, which is repeated throughout.  The complaint cites specific instances of activity - meetings and resolutions - to demonstrate that the earliest possible time is long past, and that the resolution is therefore invalid. "The only way to accomplish the stated intent of SEQRA is to assure that the potential environmental, social , and economic impacts of a proposed action are completed and reviewed prior to any significant authorization being granted for a specific proposal."  And yes, the previously mentioned nearby girls scouts camp is specified as a potential social impact.

There you have it, in a nutshell.

The real entertainment value of this document however comes in Exhibit B, a collection of handwritten notes by a Town Board member about various meetings amongst themselves and with members of the development team.  They are included in the petition to make the point that crucial deliberations and discussions regarding the casino bid took place behind closed doors  and out of the public view - "..in these private meetings formulated and designed a plan for marketing, gaining support and the development of the Casino Site" - thereby bolstering their case that the process was in violation of the Open Meetings Law.  Sprinkled throughout the notes are references to "Feathers," or "JF;" so town officials were in direct contact with James Featherstonhaugh himself, the former NYGA president leading the bids for Saratoga Raceway and Casino.

The notes provide an interesting look into just what was on the minds of the town officials working in favor of the casino.  And what was mostly on their minds was selling the idea to the public, press, and politicians, downplaying any negatives, and publicizing the $5.7 million in host fees that the Town stands to earn (though at one point, someone wonders just where that number came from).  Here are a few highlights:

On April 23, it's noted that Feathers called legislators including State Senators Roy McDonald (to whose campaign Feathers, NYGA, and Saratoga harness all contributed in 2012) and Kathleen Marchione, and Assemblyman Steven McLaughlin.  A note about a power point presentation to the town refers to "Morgan Hook-PR" from the prominent lobbying firm SKDKnickerbocker, noting that the PR team will "take the heat." Emphasized with a star is a notation to "DO just one" of these - "any more continues to promote 'negative' side more than anything."  Discussing a mailer about to go out, reporters are singled out: Rex Smith of the Troy Record is "good;" Jordan [Carleo-Evangelist] of the Times-Union is a "good guy," and [Chris] Churchill of that paper is an "advocate."

On May 5, it's noted that their Facebook page received 108 likes, as certain members of the Business Alliance are considered to speak in support of the casino at the next public meeting.

On May 9, Feathers believes that revenue estimates "are low/conservative, has potential to be more." And he met with school Superintendent Nagel [sic, Angela Nagle].  There's a note about a jobs quota for local employees.

Feathers goes over the negatives - "a lot of what ppl worry abt are myths."  Crime - "Non-threat in casino - high security." (Of course, that doesn't address crime in surrounding areas.)  Addicted gamblers - "Biggest type of addict is sports gamblers."  (Take that, you sports gamblers!) Traffic - "Bigger concern for Feathers, heavy traffic deters return guests."  (Of course, no concern about the effect on the community, only on casino business.)

As time goes on, the notes do reflect some concern about SEQRA, and the question of what happens if there's a lawsuit.  The Board seems to think that the clock on SEQRA does not start until the $50 million licensing fee is submitted. "Article 78 doesn't say stop unless they get an injunction, but that process is expensive and difficult to do."  Obviously, the Save East Greenbush group is giving that a shot.

There are also minutes from a Town Board meeting in which three members speak out in favor of the project, albeit with some reservations - one member concedes that he voted against the referendum.  Another cites a quote by Charles Kettering: "The world hates change, yet it is the only thing that has brought progress."  That's funny, because I also saw that exact quote cited the other day by Aereo CEO Chet Kanojia in response to his company's crushing loss in the Supreme Court.  Save East Greenbush is hoping that their Town Board suffers a similar judicial setback.

We Love a (Casino) Parade!

Everyone loves a parade, and a parade there will be, in Amsterdam, NY on July 1.  No, it is not an early Independence Day celebration.  But, rather, it's in support of a casino there.  That's right.  Don't know if there will be a float in the form of a giant roulette wheel.  But there you go.

"The more we can get out the message that we are a community that overwhelmingly supports this will help us in the long run as we move along in the application process," Montgomery County Executive Matthew Ossenfort said. [The Recorder, strictly subscription only, not even a few free articles a month, but I cleverly took a screenshot in the split second it appeared on screen before being blocked.  Ha ha.]

Now, as you may recall, the Gaming Commission rejected the county's request, on behalf of the developers, for a deferral of part of the license fee, and for extra time to submit the application.  However, the developers are apparently prepared to forge on.

“I think the biggest single factor in them moving forward was community support,” Ossenfort said about the developers, Toronto-based Clairvest and British Columbia-based Great Canadian.
..............
The parade goers will be able walk along with custom cars, motorcycles and chamber of commerce members and get free tickets to the privately owned Amsterdam Mohawks baseball team. [Capitol Confidential]

Oh man.

One of their competitors for the Region Two license has a bit of a legal inconvenience to deal with now.

The anti-casino group called Save East Greenbush said it sued on Thursday to block progress on the proposed casino planned by the leaders of Saratoga Casino and Raceway and Churchill Downs.

The petition contends that the resolution was adopted at a public meeting held in violation of the state Open Meetings Law; that it was adopted without having undergone any environmental review as required under the the State Environmental Quality Review Act; and was arbitrary and capricious, an abuse of discretion, and an error of law. [Capitol Confidential]

The group also accuses Saratoga harness, Churchill Downs, and the Town Board of East Greenbush of having met privately and, it contends, inappropriately with a Gaming Commission attorney.

Any contact with Mr. Brad Fischer is an illegal ex parte communication that should mandate immediate dismissal of any application submitted to the Respondent state Gaming Commission.”

Well now.  This anti-casino group called Save East Greenbush is apparently not one to fuck with.  The breadth and assertive conviction of their accusations - an error of law! - suggests a confident swagger.  They have a professional-grade website, on which they helpfully point out exactly where this casino would be located.

I think that's one of the first rules in the Casino Developer's Guide to Politics - never build a CASINO right next to a Girl Scout Camp Is-Sho-Da!

Of course, the casino-to-possibly-be is having none of this lawsuit.

"This is a silly and meritless lawsuit and we are confident we will ultimately prevail in this matter." [Albany Business Review]

Back to Region Five, the Southern Tier, Thomas Wilmot Sr., hoping to build a casino way up north of the Finger Lakes in Tyre, announced details of his facility, including some architectural changes in response to community input.  It will not, as previously be reported, be named after him; but rather, it will be called Lago Resort and Casino.

“In renaming our project Lago Resort & Casino, we have adopted the Italian word for lake to highlight the magnificent Finger Lakes region and the outstanding vineyards and wineries encompassing the area,” Wilmot said. [Central NY Business Journal]

These casinos are apparently all about water - waterparks, lakes, tranquil ponds and flowing streams (linked just so you don't think I'm making this stuff up).













Yeah, that about captures what this place will be like, I'm sure.  This proposal is loaded with the usual superfluous unnecessities that casino developers include in order to make them seem less like casinos.

The casino-resort complex will feature a performance theater called the Vine, and a “regional platform” for area vendors, wineries and breweries, called Flavor New York. The updated design adds a new restaurant, a spa and a pool. [Capital Tonight]

You see, again with the water!!

Monday is the deadline for the applications, and the last chance for any of the faint-hearted to get their money back.  Michael DeMasi reports for Albany Business Review that 17 applications are expected.  It's gonna be heavy, man.

By one rough estimate, those applications could generate as much as 25,000 pounds of document
.........
Plans for the $640 million [Nevele] resort casino filled more than 10,000 pages stuffed into 240 binders that will be shipped to Schenectady in a U-Haul truck, according to The Times Herald-Record.

Massachusetts Repeal Vote Has Implications for NY

The Massachusetts Supreme Court has ruled that a measure to repeal the state's casino law may appear on the ballot in November. The decision overrules Attorney General Martha Coakley, who had decreed that the measure could not appear because a repeal would amount to "an illegal 'taking' of contract rights from casino applicants." (I wrote more about her ruling earlier in the year in this post.)  It is, of course, not the first time Ms. Coakley has lost, and quite possibly not the last, as she plans to run for governor.

The casino repeal campaign this summer and fall is expected to draw significant national interest — and money.
......
For passionate casino opponents across the United States, the Massachusetts repeal referendum presents a tantalizing opportunity to defeat an industry that has steamrolled opposition for years, spreading into 39 states.

“This is a very historic ballot question,” said Les Bernal, director of the national anticasino group, Stop Predatory Gambling, in a recent interview. “It will be the first time in modern history for a citizen-led effort to repeal government sponsorship of casinos” to be decided by voters. [Boston Globe]

It would appear that in this instance, the anti-casino forces will have access to money, though it seems doubtful that they can match the deep pockets of the interested casino giants; both those who have already been granted licenses (MGM, in Springfield, and Penn National at the Plainridge harness track, a slots-only facility on which they have already begun construction), and those who are still competing with each other for the Boston area license (Mohegan Sun at Suffolk Downs, and Wynn Resorts in Everett).

A repeal would of course presumably have positive effects for New York casinos located not far away. Just an hour and 15 minutes would separate the Springfield casino from the one proposed by our friends at Saratoga harness and Churchill Downs for East Greenbush.  In fact, as Capitol Confidential notes, those folks "have touted their site as a way to stop bettors from leaving New York for Springfield."

I don't know if the mechanism exists for citizen casino opponents in New York State to similarly orchestrate a repeal vote; you know how they're all so democratic up there in New England.  But it would surely be interesting to see the nature and result of such a campaign here, now that things are not developing the way some assumed they would; and with those who may now be unexpectedly facing the prospect of a casino in their town more attuned to the issues and the arguments against.  And it would be especially interesting to see how such a vote would go if the ballot language was neutral, rather than the farcical Advocacy Language that the governor's office helped to sneak through (literally, as the language was not released publicly until after the deadline to challenge it had passed.  I wrote quite extensively about the issue last year.)  In fact, it may have been interesting to see how the vote would have gone last November if the language was fair, given the results of some polls which posed the question each way.

Well, at least the lesson of the ballot language episode has not gone unheeded.  A referendum on the ballot this November will concern a new "independent" redistricting committee which will actually be controlled by the legislature.  It is the product of a 2012 agreement between Cuomo and the legislature; specifically with the Republican-controlled Senate who pushed for the arrangement after reneging on their written promises to Ed Koch, when they were in the minority, to support a truly independent redistricting process.  Cuomo had previously pledged to oppose anything but, but it became one of the concessions he made to the GOP.

Of course, when it comes to redistricting, Republicans are no worse than Democrats, as demonstrated by this diagram of the district of State Senator Jeff Klein (kind of a Democrat, though perhaps an actual Democratic-to-be).

Anyway, back to my point - Blair Horner of the NYPIRG assures us that he'll be looking out for the release of the ballot language for the referendum by the Board of Elections.

Harking back to what they said was language that was rigged to evoke a “yes” vote on casinos and which came so late as to obviate a legal challenge, Horner and others will watching that closely, which could mean some interesting news later this summer. [Capitol Confidential]

So perhaps we won't get fooled again.  At least when it comes to referendum ballot language.

 - The city of Albany is not getting a casino; at least within the city limits.  There may be one right nearby however, and the city's Common Council is seeing what they can get squeeze out of the developers in East Greenbush, Rensselaer, and Schenectady.

City approval isn't needed for any project not within its borders.

But the support of the largest city in the region would likely be coveted by developers making their cases to the state. And there was talk, McLaughlin and other lawmakers acknowledged, that the council could convene Thursday evening to consider a resolution backing the proposed Hard Rock-branded casino and hotel on the Rensselaer waterfront, a pending resolution opposing all casino development in the region or some other option that has yet to publicly emerge. [Albany Times Union]

Well, guess you can't blame them; everyone wants a piece of the pie, and it's surely likely that Albany itself will be affected in some way by a nearby facility.  In Massachusetts, applicants are required to complete formal "surrounding community" agreements with their neighbors; so Albany officials seem to be taking a page out of that playbook.  The Times Union reports that there is a draft memorandum of understanding for the casinos that deals with money for creating jobs, enhancing public transportation, and promoting tourism.  

 The draft reviewed by the Times Union leaves the proposed dollar amounts for each commitment blank. It also asks developers to participate in a "player's card" program that would offer discounts at county-based businesses.

 Like I'm so sure that casino gamblers in East Greenbush will be making their way to the Crossgates Mall to shop.

 = Jeff Gural and Brian Sears have made peace.  As in, Gural has relented after the criticism of his ridiculous and selfish ban and will allow Sears to drive at his racetracks.  That's so sweet.

A Casino Discrepancy

Here's a column that appeared over the weekend in the upstate Times Herald-Record (registration may be required for limited free access), blasting Governor Cuomo for allowing Orange County to get into the casino-bidding game.  The writer, Barry Lewis, tells Cuomo that "we're all wondering how you can do this to us."

You even came up to Bethel Woods to collect your winnings. Gave us your "game-changer" victory speech. Said that these casino-vacation destinations will spur economic growth, attract business and tourism, supply thousands of jobs and provide tax relief and funding for education anywhere in the state. Said it right to our face.

But instead of acting like the honest Las Vegas dealer that you promised was in our future, you played us like suckers in a three-card monte game.

Lewis is referring to a visit the governor made to Bethel Woods on the day after Election Day, on which voters approved the casino referendum.  Just for emphasis, let's repeat that this was the very day after the election - a victory celebration; a triumphant appearance by the man who would save the Catskills.  The lede in the story reporting the visit in the local Sullivan County Democrat read, understandably:

He didn’t have to say it.

Merely by his presence at Bethel Woods’ Event Gallery Wednesday, NYS Governor Andrew Cuomo confirmed that Sullivan County is at the top of a very short list.

In this photo which accompanied the piece, Sullivan County Democratic Committee Chairman Darryl Kaplan greets the great man by kissing his hand.

“This is a game-changer,” [Cuomo] went on. “I think it is going to fundamentally change the economy of the Catskills.”

Cuomo, of course, cast that as a positive impact, noting this may prompt New York City’s 50 million annual tourists to also pay a visit just two hours upstate.  “It means we finally have a magnet to attract tourists in New York City north[ward],” he explained.
........
What about those jaded residents who’ve heard the “casinos are coming” mantra so many times, they’ve developed an automatic “show me” response?

“We’re going to show you this time,” he promised.

Oh, he's shown them all right! He's shown them that he can stand idly by while developers scramble to build as close to NYC as they are technically allowed to under the law; thus imperiling the hopes for (the perceived) economic relief from casinos that Catskills residents have awaited for decades.  Sullivan County, which once hoped to get both facilities for the region, is down to hoping for one.  (There are two remaining Sullivan County bids, but both are proposed for The Concord.)  And at least one other Catskills aspirant has expressed concerns about their ability to obtain financing due to the threat of an Orange County casino.

As we've said, the governor could have put the kibosh on Orange with a simple pronouncement, public or private, when the idea first started to percolate.  But he has remained silent.  The columnist Barry Lewis speculates that perhaps the governor was disingenuous from the very start, pointing out that, "amazingly," casino companies have, in mere weeks, been able come up with elaborate plans for Orange County casinos.  I'm not so sure I buy that conspiracy theory; after all, what does it really take? Come up with a sketch of a building, make some stuff up about water fountains and other amenities, throw in some numbers, mark up some traffic maps, and viola!  I mean, seriously, take a look at Genting's Power Point presentation to the town board of Tuxedo; this thing could have been thrown together in a week.

But maybe I'm being naive.  Who knows what the governor was thinking, or not thinking, when he took his Catskills victory lap?  It seems clear though that somebody at some point showed him the bottom line of the possible economic benefits, to the state, of a casino (or two) closer to NYC. Because his silence surely makes him complicit in the whole idea.  The letter from the Gaming Commission affirming Sullivan County's prospects last week only goes so far, and hardly eliminates Orange County from the running.  That guy who was kissing Cuomo's hand is likely thinking that the governor can kiss his butt at this point.

 - We've yet to mention the competition in the "other" region, the Eastern Southern Tier.  That's where Jeff Gural hopes to secure a license for his Tioga Downs racetrack and racino.  According to the narrative that I've been espousing here all along - that the governor and the NYGA concluded a back room deal whereby the latter would support (or at least not actively oppose) the referendum - Tioga Down's license is in the bag, and the two other declared contenders are wasting their time.  Out of all the NYGA members, Gural was the most active in supporting the measure. He has said: “I probably shouldn’t say this, but I’d really be surprised if we don’t get the license."  So would I.

One of the other applicants is Traditions at the Glen - an existing resort in Johnson City, outside of Binghamton about a half hour east of Tioga (located in Nichols, NY). They have come out and said that they would like to work with Gural and Tioga should they secure the license.  But Gural is having none of that.

"We don't see any kind of partnership down the road at all with Traditions, and I think that our chances of getting the license are pretty excellent," said Gural.
................
"Truthfully, I think if (Traditions owner Bill Walsh) won the bid, he would go broke," said Gural. "I told him that. I don't think that there are enough customers for both of us." [WBNG]

The other Region Three Five proposal is in Tyre, NY, which is way up to the north around Seneca Falls, more than a couple of hours from the other two. The developer is Thomas Wilmot, a Rochester businessman, who would name the resort after himself.  Tyre is the site of the only actual physical violence related to the casino debate that I've read about thus far.

Lynn Barbuto, an active member of the Casino Free Tyre coalition and spokesperson for the town’s Amish community, was taken to Geneva General Hospital over what attendees and law enforcement officials called a “chair discrepancy.”

Casino opponents said Barbuto — who left the emergency room Thursday night — got into a scuffle with Karen Thomson, the wife of Town Board Member Thomas Thomson.

Board members said Barbuto was told she couldn’t sit in a certain chair because it was reserved for town officials. When Barbuto refused, board members said, Karen Thomson tried to get the chair back, causing Barbuto to slip out of the chair and fall.

Seneca County Sheriff Jack Stenberg said there was no indication that Barbuto was pushed, pulled or shoved from the chair. The office’s investigation has determined that no criminal act took place. “It was a disagreement of who should be able to sit in a chair,” he said. [Press Connects]

So things are pretty feisty up there!

Jeff Gural is having a disagreement over who should be able to drive horses at the Meadowlands.  We know that he has banned drivers over accusations of drugs and other improprieties.  However, he has banned the top driver Brian Sears from the Meadowlands, simply because Sears declined Gural's request to come drive there last month when two other drivers were out due to injury.  In a rambling statement, Gural twice refers to a "difference over the standards that we choose to apply at the Meadowlands," when it's clear that this is just a case of petty revenge.

Well, it's long been a racetrack's prerogative to ban certain individuals from its grounds in the name of private property.  However, I read a private posting by an attorney (who represents harness horsemen groups) who pointed out that the Meadowlands is, in fact, state-owned property that is being leased by Gural.  And that the horsemen are licensed by the state, giving them the right to enter that property.  So, this attorney contends that Gural lacks the authority to ban those individuals, and that he is violating Sears' right to due process.....especially considering that there are no rules violations involved.  Whether Sears resorts to legal action - there's been no indication that he plans to do so - remains to be seen.  However, Gural's action here is nothing short of bizarre, and his explanation borders on being incoherent.

Responsible Gaming

The New York State Senate passed a last-minute measure that will permit the state's racinos to stay open until 6AM instead of the current 4AM.  The Assembly had passed it the day before, and it now goes to Governor Cuomo for signature. 

The bill was pushed by a number of VLT parlors, but sources say Genting New York, which operates the Aqueduct casino facility, was among those most interested in its passage. [Bloodhorse]

The bill also increases free-play allowances that racinos can extend to their customers, and while I don't really know nor care exactly what that means, I presume it's just another way to get people to sit in front of the slots machines like zombies and piss away more of their money. 

"This bill is needed to provide incentives for individuals to visit the video lottery gaming facilities in order for these facilities to enhance revenues and attendance," states a memo accompanying the legislation.

Well, whatever.  But let me ask you this:  What happened to the thing we've always heard from NYGA about how they promote "responsible gaming?" 

New York Gaming Association (NYGA) members are deeply invested in their communities and care about their patrons.

Right. I'm so sure. 

NYGA is committed to promoting responsible gaming and is a proud member of the National Council on Problem Gambling.  In addition, NYGA works closely with the New York Council on Problem Gambling on the creation of “Best Practices” analysis of existing policies, practices and procedures.

I'd like somebody to explain to me how allowing and encouraging its patrons to stay and gamble until six o'clock in the morning can in any way qualify as responsible gaming?  (As if 4AM wasn't bad enough.)  Or as a "Best Practice" for dealing with problem gamblers?  And while we're told that the upstate racinos are having a tough year, Genting is thriving at the Big A, so what motive other than pure greed would motivate them to be the main driver behind this bill?  Concern for their fellow NYGA members?  Like Yonkers, who they're trying to drive out of business with a Tuxedo casino less than 40 miles away?  I suppose they wanted to get some return for all the money they've donated to the politicians responsible for passing this, and to the governor who will no doubt go along and sign it.

Just goes to show you how full of it all of these companies are when they talk about responsible gaming and caring about the community and family attractions and bucolic ponds and water parks and entertainment and any perk not having to do with gambling.  It's all an attempt to put a smiling benevolent face on what is nothing but a cold-blooded enterprise with no other goal but to plop people in front of a machine or a table and part them from their money.  And people actually fall for this crap.  I'd guess that some of those extra goodies won't even get built.  Like....remember this?

The grand fountain on the left that was supposed to greet visitors to Resorts World at Aqueduct?  What ever happened to that?  If I lived in Tuxedo, I'd take the promise of these fountains with a grain of salt!

And I'd probably be skeptical of all of the goodies that Genting says will accompany their proposed Sterling Forest Resort.  Like the redesign of the Sterling Forest gardens to be designed by a nationally-renowned team of landscape artists, and the New York Ice and Snow Festival, and the "adventureworld" at the ski center and the year-round family fun and excitement it will provide, and the first class ski center.

But at least I wouldn't have to be wary of a promise to uphold the standards of 'responsible gaming.'  There's not a single mention of it on the entire Sterling Forest website.  I guess they forgot to include that particular lie.

 - As one might have expected, the Gaming Commission rejected the appeal by Montgomery County, on behalf of the developer interested in building there, to defer part of the licensing fee and grant a 60-day extension to submit the application.

My City is Poorer Than Yours!

Not to be outdone by Sullivan County, the city of Newburgh wants everyone to know just how shitty things are there. 

"Of all the communities facing economic struggle in the Catskill/Hudson Valley region, none face as daunting a challenge as Newburgh. With a population of 28,866, the City has a poverty rate of 27.9%, and struggles with chronic unemployment and high crime unrivaled in the region," Mayor Judy Kennedy and Newburgh supervisor Gil Piaquadio said in a letter to the state Gaming Facility Location Board.
.............
"We would like to officially invite the Gaming Facility Location Board to a tour of the City of Newburgh, so that it can fully understand the kind of poverty our residents have been struggling with for decades," the mayor's letter reads.  [Journal News]

That's a pretty grim picture, and a staggering rate of poverty.  It's so bad that one would think that a casino would only help so much (if, in fact, at all).  Seems an effective response to Sullivan County's poverty appeal and to the Gaming Commission's letter that affirmed the law's intent to aid struggling communities.

Casino supporters in the Catskills of course contend that any casino in Orange County will ruin the prospects for a facility in their region.  Not to mention that we've, thus far, seen one developer withdraw because they couldn't get financing because of the threat.  However, Saratoga Raceway & Casino, who is behind the proposed Newburgh facility, contend that this is not the case; that its imaginatively-named Hudson Valley Casino & Resort is the only Orange County casino that can "co-exist with a potential casino in the Catskills."  Complimenting, Not Competing With a Catskill Region Casino.  They claim that since Newburgh is located north of the turn-off for Route 17, the highway that heads northwest from the NYS Thruway towards the Catskills, they won't hurt business there.

That seems like kind of a silly argument.  Closer is closer, regardless of what the route is.  Newburgh is some 24 minutes closer to downtown Manhattan than is the Concord, according to Google Maps; and that's not considering traffic on Route 17, which was always a major issue back in the day when people actually used to go to the Catskills, and could be one again if people flock to casinos to gamble like we're told they will.  Not that it's that big of a time difference; but it is a difference, and if someone in NYC wishes to go to the closest casino, then they'll book a place at the closest casino.  I suppose it's up to the potential lenders and developers in the Catskills to decide for themselves whether or not the claim is true.  In any event, it's a clever ploy by the folks from Saratoga harness (also involved, of course, in the East Greenbush proposal, that one in partnership with Churchill Downs).

 - An interesting situation involving Montgomery County, located northwest of Albany and hoping to compete with developers there for the license in Region Two.  Officials from that county met with a Gaming Commission official in a bid to give the developer who's interested in building in Amsterdam, off Exit 27 of the Thruway (where I used to drive from Union College to watch Rangers games on cable TV) (that was a really long time ago) a lower license fee and more time. 

Matt Ossenfort, the county executive, said he was optimistic at the end of the meeting. He gave the commission several documents and an argument for concessions that include a $25 million cut in the licensing fee for a Montgomery County casino and a 60-day extension for Clairvest and Great Canadian Gaming to complete an application for a casino license........

The county leaders said they represent a region so distressed that the Salvation Army is closing its office and food pantry. [Capitol Confidential]

In a letter to the Gaming Commission which is embedded in the link above, the county cites the widespread support for a casino in the surrounding communities.  "We are not aware of any organization or group in Montgomery County, the town of Florida, or the city of Amsterdam that is opposed to a casino development in the county." Don't think I didn't do a Google search for 'No Amsterdam Casino' and 'No Casino at Exit 27.'  I guess they don't have many tree-huggers in Montgomery County. 

Then they go into their own tale of economic woe.  The poverty rate there is 19.2%.  Not in the same ballpark as Newburgh but, according to the letter, it's "almost 29% above the state average."  There's more, and it's pretty bleak.  Median household income 25.75% below the state average; 31% of children under 18 under the poverty line; an unemployment rate of 7% that's 40% higher than the average rate for the 52 upstate counties (sounds like a bit of spin on that last one).

Montgomery's appeal for a lower licensing fee is based on its contention that the fee pricing structure for Region Two is unfair as compared to the other two regions, in which there are different fees for different areas within the regions.

 

The same argument is made with respect to the minimum capital investment.  The letter goes on to claim that this inequality makes the venture unattractive to potential developers. 

On the announcement of the minimum spend on May 12, [the developers] met again with the local leadership and advised that the economic model of a higher tax rate, a higher license fee and a higher minimum spend in Montgomery County than that in similar Counties in Regions one and five and the same requirements as a potential development in Albany was not supportable.  They advised that without a modification to the economics to those offered to other similar counties in Regions one and five, they would be unable to proceed.

So, the county is asking for a deferral of $25 million of the $50 million license fee (to be recouped by a tax on revenues above a certain level); and a 60 day extension of the June 30 deadline to submit an application.  After all, the letter appeals, 60 days is a drop in the bucket relative to a "20-30 year economic impact decision."  It seems they have a fair point, and I think one can sympathize with their situation. But good luck with that. I'm sure that the Gaming Commission knows that if it makes one exception, it's going to be dealing with a myriad of requests for others.  I'd be pretty surprised if they grant the request.

 - Back in Tuxedo, the consultants hired by the city to assess the Genting proposal addressed an audience of 100 residents on Wednesday, and provided a positive report regarding the Host Agreement they are negotiating with Genting. 

This would include at a minimum $50 million in capital support for town projects, payment of 50 percent of school taxes, $3.5 million in guaranteed real estate taxes and about $7.4 million in gaming tax collection, they said.

"This development has a net positive impact on the town," said Chuck Bedsole, managing director at Alvarez & Marsal. "It has the potential of enhancing the quality of life of the residents. It ensures the long term stability of the town." [Journal News]

Odds May Be Against Genting's Orange County Casino

Here's an interesting article from a local paper on Genting's efforts to construct a casino in Tuxedo, which, as we've noted, is a bit more than 40 miles from the Empire State Building.  As the town works towards finalizing an acceptable Host Agreement, it seems as if Genting has a long way to go in order to obtain all of the local approvals that it needs.  (In fact, I believe it's the case that none of the Orange County bidders have finalized that part of the process as of yet.)  One key issue is the construction of a dedicated exit (15B) off the New York Thruway to facilitate traffic flow to the facility. 

Part of Genting’s proposal involves contributing some $25 million dollars toward completing the NY Thruway Exit 15B just north of Tuxedo that would help funnel traffic to the resort.

The construction of Exit 15B may involve the acquisition of state park land, which would make that portion of the project extremely difficult as it would necessitate approval by the Palisades Interstate Park Commission. Town Councilman Gary Phelps expressed at a recent town meeting that if the Rt. 15B exit doesn’t happen, the overall project doesn’t happen. [Sloatsburg Village]

There's a potential deal breaker right there.  Sentiment towards the idea seems to be mixed, at very best.  The article reports that 180 out of 262 emails received in response to a request for public comment were against the idea.  And the list of organizations opposed to it includes the kind of names that riles those on the side of the political spectrum that gets irked by those damn "tree-huggers." 

Regional groups who are mounting opposition to the development include NY/NJ Trail Conference, the Highlands Coalition, Sterling Forest Partnership, and the Appalachian Mountain Club, according to Geoff Welch of the Sterling Forest Partnership.

A transcript of a public meeting held on June 9 shows a contentious debate with a healthy dose of skepticism towards Genting.  It's particularly interesting though to read what exactly concerns those who spoke up at the meeting.  While a couple of people mentioned crime, there seems to be more concern about a potential decline in property values.  And instead of talking about the number jobs that could be created (in fact, the words 'jobs' and 'employment' do not appear a single time in the entire discussion), one woman "worries about the need for lower income housing to house the custodians, chambermaids and dishwashers at the casino." 

She wonders where such housing will be available and fears that single family housing might be turned into multi-family housing.

Well, this hardly sounds like comments from a community that desperately needs a casino (or at least thinks it does) because it is in dire financial straits, such as those prospective sites in Sullivan County and other areas in the Catskills.  So, if you take at face value the letter by the Gaming Commission's Robert Williams the other day, in which he affirmed that the intent of the law is to "provide maximum benefit to the State through bringing economic benefit to municipalities that have been economically disadvantaged," and to "create jobs, reduce unemployment in disadvantaged areas of the State," then Genting's proposed casino surely doesn't seem to fit the bill.

Besides and as we've said, a casino in Tuxedo would sit less than 40 miles away from the racino at Yonkers, and I just don't see the state putting that facility, part of the NYGA with whom the governor no doubt negotiated back room deals in order to gain their support for the referendum, at that kind of competitive disadvantage.  (Yes, Genting is a member of NYGA too, but they already have their jackpot at the Big A and would not be hurt by this project being rejected.)  So, while Genting may very well have successfully run some interference for its related Empire entity and its proposal for the Concord by contributing to a couple of Catskills bidders dropping out, I just don't see their Sterling Forest Resort coming to pass.