Legislation
US – New York voters approve casino expansion plan
By Phil - 8 November 2013
New York voters have approved a constitutional amendment to expand casino gambling throughout the state with as many as seven full-scale casinos earmarked for the upstate regions.
New York Governor Andrew Cuomo supported the proposal, along with 57 per cent of voters.
“The passage of Proposal One is a big win for local governments, school districts, and taxpayers across New York State,” he said. “This vote will keep hundreds of millions of dollars spent each year in neighboring states right here in New York, while increasing revenue for local schools, lowering property tax taxes, and bringing proper regulation to the industry. This vote builds on the landmark agreements we reached with Native American tribes this year, ending expensive court battles and unnecessary discord and restoring hundreds of millions of dollars to local governments. Since taking office, my administration has focused on reviving the state’s economy, and today’s vote will further pave the way for the creation of new jobs, construction, and increased tourism in communities across the state.”
The state of New York already has five upstate casinos run by Native American communities. The plan from the State Legislature is to initially permit only four new casinos in the Albany area, the Catskills-Hudson Valley region and part of the Southern Tier, a region along the northern border of Pennsylvania.
A panel appointed by the State Gaming Commission will award the new licences. The likelihood is that Yonkers Raceway and the Aqueduct in Queens, already two of the largest ‘racinos’ in the world will win the right to become full-scale casinos.
Racetracks at Tioga Downs and Saratoga Raceway are also in the running to become full-scale casinos.
The Cuomo-controlled state Gaming Commission is expected to welcome submissions from casino operators early next year with decisions announced later in the year.
Casinos wouldn’t be allowed in the city and its suburbs for at least seven years although after that time has lapsed a final project within the city has been earmarked. None of the new casinos would be located near the five gaming palaces operated by Indian tribes upstate.
Administration officials believe the new casinos would generate 6,700 construction jobs and 2,900 permanent jobs. They would generate US$420m in tax revenue much of which will be directed to education.
The list of operators who have lodged their interest in a New York state development includes Caesars Entertainment, Boyd Gaming, Empire City through its Concord Hotel project, Foxwoods, MGM, Mohegan Sun and Las Vegas Sands. Their involvement could be disastrous for Atlantic City.
Chad Mollman, a casino analyst for Morningstar, Atlantic City should be ‘very concerned.’
“New York City is the biggest feeder market in Atlantic City,” he explained. “There is a question in terms of the viability of Atlantic City in the long term.”
Resorts was the first legal casino on the East Coast when it opened in Atlantic City in 1978. A lot has changed since then.
Harold Vogel, the CEO of Vogel Capital Management, added: “Atlantic City’s time has come and gone. It was second after Nevada, and it was a special place in a small location. It had 10 good years when it was pretty unique, but then we got Indian casinos, and then gambling in Pennsylvania.”
