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Catskills Casino Deal Challenged By Racino Operators

Posted on January 15th, 2011

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In today’s slowly recovering economy, businessmen need to do whatever they can to adopt to new economic situations, or else they would find themselves in deep trouble. Competition amongst corporations are so close that companies would not think twice about killing any other business that threatens their existence. Such is the case of major racino operators in New York, who are now asking Governor Andrew Coumo and the legislative body to sever deals made by then Governor David Paterson with Mohican Indians to build a casino in Catskills. Six racino operators comprised by Buffalo Trotting Association, Empire City/Yonkers Raceway, Fingerlakes Racing Association, Saratoga Gaming and Raceway, Empire Resorts Inc., and Resorts World New York, sent a letter to the new governor saying that the proposed Indian operated casino could very well cause them to lose their businesses. The letter further states that a potential loss of $400 million would be suffered by the State of New York should the haphazard deal continue.

The then outgoing governor has made quite a stir among the gambling sector when he ignored all odds and went on to sign the land settlement and compact, days before leaving office. The racinos are now calling for the current administration to withdraw the compact as it “poses significant, negative budgetary impacts for New York State that should be carefully re-evaluated.” The group also put it in writing that they hold the belief that the Catskills Indian Casino would prove lethal to Monticello Racino located only 10 minutes away from the casino site. The letter also appeals to the Department on Interior (DOI) of New York to ” stop the clock” on the 45 day waiting period while it studies the economic impacts that the casino would bring.

According to President of StockBridge-Munsee Band of Mohican Indians, Kimberly Vele, they trust that the New York State would honor the compact.t She further stated that they have entered into the agreement in good faith, hence there really should be no reason for the state to go back on its word. She also said in her statement that the racinos and the Indian casinos were born out of the same law—it would therefore be unfair to allow one and ban the other. She further notes that their casino, will be the single largest construction Sullivan County has ever seen. The project which will take 7 years to construct, will provide the job poor region with 1,166 jobs. She also said that the state will reap a total of $925.9 million in revenues from their casino.

Governor Coumo however, seems not to have any idea what everything is about. When asked about the racinos letter, his response was simply, “I don’t know anything about it.” The Governor, however, promised to respond to it after he gets his hands on it. The letter, signed by Mr. Featherstohaugh, Secretary of Saratoga Gaming and Raceway, further notes that the State of New York will lose $407 million in overall revenues, $51 million will be lost for the horse racing industry support, another $40 million in lottery administration fee and $188 million in state education funding, also a total of 900 employees would be badly affected. To all these figures, Vele has an answer; she said that the counties in the region would likely benefit from the $715.6 million revenue that Catskills would generate, also, another $186 million per year could be generated from economic activity just from constructing the resort. Jobs would also never be an issue again in the region as 4,900 full time on site jobs are to be expected, along with the 1,820 indirect full time jobs. As Vele has already said in her statement, “The Stockbridge-Munsee is entirely committed to providing Sullivan County and New York State with this long-awaited job-producer and economic engine.”

While the debate between the operators of racinos in the state and the operators of the proposed casino heats up, in the end, the Department of Interior will still have the sole authority to decide on the issue. Industry analysts, supporters for both sides and residents of the state can only wait as the situation develops.