Monday, March 19, 2012

OK, so what is Happening Now That the First Bill to Amend the Constitution has Passed?

A Very Nice Editorial in Newsday Concerning the Big Picture of Gaming in New York

Starting in 1821, every form of gambling was constitutionally banned in New York. But in 1939, the door opened a crack with an amendment allowing on-track gambling on horses. Bingo got the nod in 1957, and the lottery for education was approved in 1966. A 1976 amendment led to "Las Vegas nights" conducted by religious, charitable and nonprofit organizations the next year. After the 9/11 terrorist attacks, the legislature decided, without amending the constitution, that slot machines at existing race tracks, more Indian gambling and multistate lotteries were also allowed. That move was upheld by the State Court of Appeals in a 2005 decision many considered blind to the actual wording of the constitution.

Since gambling was legalized in Nevada in 1931, New York money has flowed to other states, but it wasn't until Atlantic City legalized casinos in 1976 that the demand for gambling really hit home. Now, Empire Staters looking for a wager can head to the Poconos of Pennsylvania or to Philadelphia. They can throw dice at the Indian casinos of Connecticut and turn cards in vacation spots across the Caribbean and throughout California and Nevada. But most New Yorkers live nowhere near the upstate casinos, and can't play a legal hand of blackjack or poker in their home state without driving for hours.

What is essential:

·        A state gambling commission that keeps the industry fair and clean and makes sure the revenue is maximized for the state, not special interests.

·        A dedicated stream of revenue that goes to prevent and treat gambling addiction.

·        A plan for Aqueduct, Belmont, the Catskills and the Shinnecock Indian Nation. Tough decisions lie ahead at Aqueduct, where racino operator Genting New York LLC proposes to build a 3.2-million-square-foot convention center and several thousand hotel rooms in exchange for an expansion of its racino and reduced payments to the state on thousands of new machines.

·        Down the road, Genting is determined to convert part of the racino into a full casino if it wins one of the seven licenses. Does the convention center deal make sense? Do we need to build such a large facility, and finance it by reducing the state's gambling cut? If so, how much?

·        And what of Belmont? If horse racing is to continue in the metropolitan area, Belmont Park, a neglected but lovely track with rich history and a Triple Crown race, is the place for it, but it will need support from the gambling at Aqueduct, or its own casino. And the surrounding community needs serious revitalization.

·        It's impossible to talk about Belmont without talking about the Shinnecock Indian Nation, which hopes to support itself with a casino at the Nassau track. Long denied their due by the state and nation, the Shinnecocks deserve a good deal, if not at Belmont then somewhere, and soon.

·        Then there is the Catskills. The moldering majesty of this mountain retreat could charm again with the right combination of gambling, accommodations and entertainment. A resort that entertains visitors for several days, instead of just a few hours at a machine, could really increase tourism and attract non-gamblers as well.

Casino gambling should be legalized in New York. It's about time. But it will take more than a few votes in Albany to make it a success. A major chapter of state law will need to be written and skillfully implemented; shrewd development deals must be struck, and our political leaders must make sure the ultimate winners are the taxpayers. Only then will we have hit the jackpot.


And The New York Times has a Very Good Article on Foxwood

The Article examines the largest casino in the Western Hemisphere and how it has gotten itself into similarly sized financial trouble. The interesting thing is that when you are in $2.3 Billion in Debt you cannot support, your creditors are much more realistic about the reorganization of that Debt.  Especially when it is an open question about enforcement and collection of a commercial debt from an Indian Tribe.  Likewise, it is an open question whether and Indian Tribe can file for Chapter 11. 


Leaders of the two largest Indian gaming casinos in New York state expressed doubts about the legislature’s passage of a state constitutional amendment to allow up to seven commercial casinos in the state.

Porter said the state is honor-bound to uphold the exclusivity provision in the Nation’s 2002 gaming compact with the state, which guarantees the Nation exclusive gaming rights in a 13-county area in western New York. The two parties are currently in a dispute over the government allowed and promoting slot machines at privates businesses and three state-run racinos located within the Nation’s exclusivity zone.


Gov. Andrew M. Cuomo said he has no idea where up to seven new casinos should be located in the state, but that he hopes for a "regional distribution" of gambling development deals that would include betting halls, hotels and entertainment venues.


The state's ailing race tracks, however, have been lobbying hard to have them at tracks that already feature video lottery terminals.

“I am cautiously optimistic,” said Jeff Gural, owner of Vernon Downs in Vernon. “I think this is a good first step.”

State Sen. Joseph Griffo, R-Rome, has been pushing for the expansion of gaming at the tracks, but he said he wants to know what the public will do in the referendum.


However, Governor Cuomo has ruled out Manhattan for the location of a casion.

“We want to create destination locations that are not just casinos,” Cuomo told reporters Thursday.

“Hotels, entertainment, etc., large physical plants, creation of hundreds of jobs — and that’s not Manhattan,” continued Cuomo, noting that influential Assembly Speaker Sheldon Silver opposes casinos on the island.


And it appears that Mayor Bloomburg is not the supporter the Governor expected.

Mayor Michael Bloomberg said casinos almost never help the areas in which they are located, and suggested instead a Singapore model for legal gambling. He seemed to be drawing a distinction with Governor Andrew Cuomo's plan for "legitimate" casinos in New York.

"Personally, I’ve never thought that gambling’s a great idea," said the mayor. "I’ve said that for the last ten years. But I’ve also said, if it’s gonna exist, we should share in the revenues. So, I don’t know how that’s gonna play out."

The mayor went on to say that if every surrounding state is going to legalize gambling, New York might as well get a piece of the action, but he drew a distinction between how the U.S. does gambling and how it's done in Singapore, a place he has been in the past and is planning to visit soon.

"I went to Singapore I don’t know, maybe ten years ago ... and they use gambling to not help a particular area but as part of an overall economic plan to get wealthy people to come and bring their monies with them. And so they care about entertaining those people as well as having a financial sector to service their needs and cultural institutions."


The Wall Street Journal has raised issues concerning the Bankruptcy Filing of the Western Mohicans of New York.  Such concern should be limited to tribes which have land populations and recognition.


HORSES

The New York Thoroughbred Horsemen's Association, New York Racing Association and New York Thoroughbred Breeders Inc. are teaming up to create a program called TAKE2 which will sponsor thoroughbred-only divisions for hunters and jumpers at local horse shows in Saratoga Springs, home of the historic Saratoga Race Course and the National Museum of Racing and Hall of Fame. New Jersey horsemen are also sponsoring shows at a show in the Garden State.


Eighteen horses have broken down at Aqueduct since Nov. 30 as racing brass struggles to explain why

Aquaduct has suffered an inordinately high number of breakdowns in the last 3-1/2 months on the inner track, including another one Saturday when the 3-year-old filly Deferred Risk broke down at the 1/16th pole, her right front leg giving way just before the finish line. It was the ninth death in the last 16 racing days.


Two days after receiving a letter from Gov. Cuomo’s office expressing concern over the number of horse fatalities this year at Aqueduct, New York Racing Association president Charles Hayward said NYRA is taking steps to address the potential cause of what he acknowledged is “a big issue,” while also moving ahead on the governor’s request that NYRA form and fund an independent investigation into the breakdowns.
http://www.nypost.com/p/sports/horse_racing/nyra_president_takes_steps_to_solve_WDdIQ9NuXrhuVsPvg9TdBJ#ixzz1pZjblcCa

Thursday, March 15, 2012

NYS SENATE AND ASSEMBLY PASS CONSTITUIONAL AMENDMENT TO AUTHORIZE CASINO GAMBLING

THE FIRST STEP HASE BEEN TAKEN

NYS SENATE AND ASSEMBLY PASS CONSTITUIONAL AMENDMENT TO AUTHORIZE CASINO GAMBLING

New York state lawmakers have agreed to legalize public casinos and will amend the state constitution to allow seven new casinos to operate, lawmakers said on Wednesday.

"We will deal with where, when and how next year in legislation," said Assembly Speaker Sheldon Silver in Albany.



The Bill provides that only SEVEN (7) Casinos will be authorized. 

This is the Bill in Full:

http://open.nysenate.gov/legislation/bill/S6734-2011


Here’s a press release, with happy quotes:

 “Governor Andrew M. Cuomo, Senate Majority Leader Dean Skelos, and Assembly Speaker Sheldon Silver today announced a landmark agreement to begin the process of amending the state constitution to allow casino gaming in New York. Legalized casinos have the potential to create thousands of good-paying jobs while keeping the tourism and revenue that accompany gaming here in New York State.”



New York gambling tribes mistrusftul of Cuomo’s amendment push

the two largest tribal gaming nations in New York, the Senecas and Oneidas, say they have been shut out of the discussion about the future of gambling in New York. Neither nation says the Governor has said or done anything so far to allay fears that they could—once again—be on the losing end of state policy.

This feeling of historical betrayal and mistrust hasn’t been tempered by the Cuomo administration’s push to legalize gambling.

 “It’s disturbing because it does not indicate any willingness to adhere to the agreement that the legislature had approved, and on which we’ve been relying for these last ten years, and he’s really said nothing about it,” Porter said.

Wednesday, March 14, 2012

Updates on the News

NEW YORK

Casino gambling New York state is beginning to see its support erode.

A Siena Research Institute poll released recently, shows that people are split on legalizing non-Indian reservation casinos, with neither side getting 50 percent support. This represents a decline from last month's poll, when 52 percent of New Yorkers were in favor of the idea and 44 percent were not.

“A constitutional amendment to legalize non-Indian casinos in New York divides voters virtually down the middle. However, this is not an issue that divides voters by region, party or ideology. In fact, voters of every region, party and ideology are nearly evenly divided,” Siena pollster Steve Greenberg said in a statement. “Gender and age are more predictive of voters‟ positions, with men more supportive than women and young voters more supportive than older voters.

This issue has been asked by Siena since January; support then was 53 percent of the voters.


Racino gambling is a big money and job generator in the Empire State.

New York’s nine racetrack casinos raked in about $1.96 billion in economic activity last year, created more than 17,400 jobs and provided $830.5 million to the state education fund, according to a new 16-page study commissioned by the New York Gaming Association. The report also said the racinos provided $179.8 million for the state’s horse racing industry and horse breeders.

Resorts World Casino New York City, which opened in October at Aqueduct racetrack to huge crowds, had earned a total of $139.9 million as of January, according to the latest monthly revenue report. About 44 percent of the earnings, or $61.5 million, has gone to the state education fund.


The Genesee County Legislature voted on February 22nd, 2012 to support Batavia Downs and eight other racinos in their quest for enhanced casino gambling, which would add table games to the video lottery terminals now in use.


If Gov. Cuomo’s new legislation authorizing enhanced gaming is approved, Finger Lakes owners have plans to pour approximately $80 million into new facilities, which include a brand new multi-story hotel and expanded gaming space for live table games and slots.


The addition of live table games to Vernon Downs Casino and Hotel would significantly increase the casino's impact on the economy of Oneida County, with planned investments of nearly $10 million initially generating nearly 100 construction-related jobs, and expanded operations generating nearly $13 million annually in county-wide economic output and more than 154 new, local jobs.


In the works is the addition of a luxury hotel and convention center at Tioga Downs Casino that he said will make the harness racing and electronic gaming center in Nichols, Tioga County, more of a tourist destination.

Live table games -- poker, blackjack, craps, roulette -- with real dealers would make Tioga Downs a full-fledged casino that would attract more players and would mean construction of an even larger hotel, said Gural, chairman of American Racing and Entertainment, operator of Tioga Downs.


The Wawarsing Town Board is squarely behind developing casino gambling in the soon-to-be revived Nevele Hotel.

The town board Thursday night voted to support the state legislation that would allow casino gaming in New York. The local board added that it supports casino gaming in Ulster County and that any such facility should be located in Wawarsing.


The Western Mohegan Tribe and Nation has once again wiggled out from an apparent dead end to their casino dreams.

The 255-acre Tamarack resort owned by the tribe had been scheduled for an Ulster County sheriff’s sale Thursday due to unpaid legal bills.

But a Chapter 11 bankruptcy filing Friday by the Western Mohegans and their investor – Illinois-based BGA LLC – forced the sale’s cancellation.


Average daily purses will increase about 44 percent at Belmont’s 56-date spring meet and 39 percent at its 40-date Saratoga summer meet, the New York Racing Association announced Wednesday.

Thanks in large part to the slots operation that is finally up and running at Aqueduct, average daily purses, including stakes, will go from approximately $430,000 to $620,000 per day at Belmont and from approximately $670,000 to $930,000 at Saratoga.

Stakes purses will increase $1.9 million to $9.05 million at Belmont and $2.85 million to $13.35 million at Saratoga. Those numbers reflect an increase of about 27 percent for both meets over last year.



One of the impediments to the Buffalo Creek Casino in downtown Buffalo has been dismissed.

 Two lawsuits were filed against the casino, one directly against the Seneca Nation and another that would impact the Nation depending on the ruling. On Tuesday, Judge William Skretny dismissed the case against the Seneca Nation.



MASSACHUSETTS

Taunton Mayor Thomas Hoye Jr. and the chairman of the Mashpee Wampanoag tribe today promised that “thousands of jobs’’ and an economic rebirth of the city will flow from the construction of a destination resort casino in Taunton.

In a joint statement released today, Hoye and Tribal Chairman Cedric Cromwell said the site chosen for the casino is at the intersections of Routes 24 and 140, which is also the exit near the Silver City Galleria Mall. The tribe has obtained an option to purchase a parcel of land.


Taunton Mayor Thomas Hoye told the News Service on March 14th, that he expects the City Council to schedule a referendum on the Mashpee Wampanoag tribe’s proposal to build a casino in that city for the first or second Saturday in June.


While Massachusetts may add a few thousand relatively low paying casino jobs, it will come at the cost of widespread economic pain across tightly-knit New England, triggering thousands of job losses in neighboring states with significantly higher unemployment rates, industry observers warn.

The Bay State, which has one of the nation’s lowest jobless rates at 6.8 percent, could gain anywhere from 10,000 to 15,000 jobs as it moves ahead with plans for three casinos and a slot hall, according to various estimates.

 But that growth will be offset by the loss of jobs in both Connecticut, where unemployment is at 8.4 percent, and Rhode Island, where the misery index stands at 10.5 percent.

 Massachusetts gamblers make up as much as 30 percent of the market for Connecticut casinos and Rhode Island’s Twin River slot complex, notes Clyde Barrow, director of the Center for Policy Analysis at the University of Massachusetts Dartmouth.


NEW JERSEY

State officials are close to finishing a deal to lease Monmouth Park to the New Jersey Thoroughbred Horsemen's Association, which would take over operations at the racetrack on May 1, the New Jersey Sports and Exposition Authority said Monday.

Similar to the lease with Gural, the horsemen group will pay $1 in annual rent for the first five years, said Ralph J. Marra Jr., NJSEA's senior vice president for legal and governmental affairs. The structure is designed to help the operators absorb losses during the initial period of the lease, before annual rent increases to $250,000 and then $500,000.




INDIAN GAMING

An improved economy and lower unemployment rates boosted revenue at American Indian gaming casinos in 2010, helping them rebound from their first ever drop in revenue a year earlier, a report said.

The 1% increase in gambling revenue generated by 448 American Indian facilities in 2010 marks a rebound from the 1% decline in revenue in 2009, according to a study released Tuesday by Alan Meister, an economist with Arlington, Va.-based Nathan Associates Inc.


In fact, Indian gaming actually outperformed the commercial casinos sector as well as the card room market.

The report's author, Dr Alan Meister, explained: "While Indian gaming grew slightly on a nationwide basis in 2010, the performance of Indian gaming varied widely across gaming facilities, tribes and states.

"It grew in 19 of 28 states, yet in only 49 per cent of all Indian gaming facilities."