US – Voters to rule on four casino future in New York
November will be decision time for the future of gaming in New York with voters being given the power to rule on whether four, Las Vegas style, commercial casinos are built in the state.
New York Governor Andrew Cuomo, a Democrat, has recently signed the necessary legislation called “The Upstate New York Gaming Economic Development Act of 2013,” and approved its passage through the legislature in less than two months.
Initially Governor Cuomo had opted for three casinos but eventually he increased this to four with their locations yet to be finalised.
The comprehensive, new law, pending approval of a referendum, aims to boost tourism and economic development in communities across the region. Under the casino gaming plan outlined in the new law, all localities in the state will share in increased education aid, or lower property taxes, no matter where the casinos are located.
“Our focus has been to bring jobs and boost local economies in Upstate New York, where decades of decline have taken their toll in our communities,” Governor Cuomo said. “This new law will bring the state one step closer to establishing world-class destination gaming resorts that will attract tourists to Upstate New York and support thousands of good paying jobs as well as new revenue for local businesses. For too many years, gaming revenue has left New York for our neighbouring states. Today, we are putting New York State in a position to have those dollars spent here in our communities, which will benefit our local economies and tourism industries, as well as support education and property tax relief.”
Senator John Bonacic added: “Casino gaming surrounds us in other States. By legalising it in New York we can create thousands of jobs and allow for billions of dollars in investment. Gaming can substantially improve the Catskills economy. Governor Cuomo has brought is to the brink of success here. Anyone who wants more money for education and more jobs should vote for the gaming referendum this November.”
Assembly Member Gary Pretlow commented: “I commend Governor Cuomo for signing this new law that will bring New York State a step closer to bringing casinos to the Catskills, the Southern Tier and the Capital Region. These destination resorts would mean good news for the local communities, the local economies, and the people of our state. Gaming has the potential to create new jobs for New Yorkers and bring downstate residents and tourists to the attractions of Upstate, and this exciting new law will bring put us in a position to make casino gaming an economic driver here in New York State.”
The new law authorises four upstate destination gaming resorts to enhance tourism development. Destination gaming resorts will be selected competitively based on the economic development impact of the resort. Destination gaming resorts are authorized in three regions of the state: the Hudson Valley–Catskill area, the Capital District-Saratoga area, and the Central-Southern Tier. One region may have up to two casinos if determined by the state siting board. No destination gaming resorts can be authorized in Westchester, Rockland, Putnam, New York City, or Long Island. There will be a seven-year exclusivity period during which no further destination gaming resorts will be licensed by the State.
The tax rate on slot machines will be equal to the tax rate of existing video lottery gaming facilities within each region which currently ranges from 37 per cent to 45 per cent depending on the region. The tax rate on table games will be 10 per cent.
Significantly, there will be no destination gaming resorts in regions with tribal exclusivity agreements. The state already has about 10 tribal casinos.
The new law will also allow Nassau and Suffolk OTB to establish one video lottery gaming facility each at an OTB site with a maximum of 1,000 machines at each site. In the event that the gaming referendum does not pass, the Gaming Commission is authorized to competitively site up to four video lottery gaming facilities, one per region, in the Capital District, Central-Southern Tier, Catskills, and Nassau County, based on revenue generation and economic development criteria. Additional video lottery gaming facilities in New York will secure new funding for educational assistance.
Full-scale, commercial Las Vegas-style casinos are very different to what the state currently offers.
However the decision to keep casinos out of New York City has been criticised by MGM CEO Jim Murren who described the ruling as ‘tortured.’
