ALBANY, N.Y. (AP) — New York is gearing up to take
applications for four new upstate casinos at a time when some gambling
operations in the region are in a slump.
A state siting board is
scheduled to seek casino applications in March, four months after voters
approved a state constitutional amendment to allow Las Vegas-style
casinos beyond Indian land.
A number of gambling operations in New
York and neighboring states has reported lower revenues since the vote
amid the harsh winter. But applicants seem unfazed, saying that, over
the long term, their casinos could tap into gambling dollars now going
to other states.
"You can’t look at a 90-day window. There could
be a million reasons you get these short-term ups or downs," said Thomas
Wilmot Sr., chairman of Rochester-based developer Wilmorite, citing
state figures. "But if you look at the last five years, it’s been a very
steady increase in play."
Wilmot wants to build a $350 million
Wilmot Casino & Resort complex just off the Thruway in the Finger
Lakes region, saying it could lure millions more to the area.
The
casinos would debut in a state that already has five Indian casinos and
nine racinos with slot-like video lottery terminals. Casinos also are
operating in three neighboring states, and Massachusetts is in the
process of siting casinos.
Some of those casinos have felt the
pinch of more regional competition, including the debut in 2011 of
highly lucrative Resorts World Casino, a racino in the New York City
borough of Queens. Atlantic City’s casino revenue fell below $3 billion
last year for the first time in 22 years.
In New York, statewide
racino net revenue has been down the past two months compared to a year
earlier. Resorts World, which accounts for more than 40 percent of the
statewide net revenue, has bucked that trend.
Still, more than a
half-dozen potential casino operators have expressed interest in putting
up the $1 million casino application this year. Those who plan on
applying say there is room for more gambling upstate.
The
operators of the Traditions at the Glen resort propose spending $150
million to expand with a casino, even though they are roughly 90 minutes
north of Pennsylvania’s Mohegan Sun at Pocono Downs, 90 minutes south
of The Oneida’s Turning Stone casino and 30 minutes east of Tioga Downs
Casino, which is also expected to vie for a full casino license.
"A
casino at Traditions would help keep a lot of that revenue from leaving
Binghamton. I think it would also help draw a lot across state lines,"
said Traditions’ Peter Walsh.
Casinos in the Southern Tier could
have a tougher time flourishing because of Mohegan, said John Sabini,
former chairman of New York’s Racing and Wagering Board. But he believes
there is a market in upstate New York.
"We just have to be aware
of the fact that we were late to the game and that the likelihood is
that our facilities won’t be jammed with out-of-state tourists," said
Sabini, now a consultant. "But rather, we’re playing defense and keeping
New York money in New York."
Gov. Andrew Cuomo’s administration
projects the four casinos to be located in the Catskills, the Capital
Region and Southern Tier/Finger Lakes regions will bring in $312.7
million annually for schools, property tax relief and local governments.
They
will be competing for at least some gambling dollars now going to New
York’s racinos. The racinos in Monticello, Saratoga Springs and Tioga
County can apply to become full casinos based on their locations. But
there are worries racinos left to compete with Las Vegas-style casinos
with slots and table games could face a difficult road.
"There’s a
point where you’re going to reach saturation, if you haven’t already
gotten there," said Gary Greenberg, minority owner of Vernon Downs
Casino & Hotel in central New York.
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