Assert Casino in Orange County Would Cannibalize Existing Operations, Defeat Intent of Gaming Law
YONKERS, NY – Assemblymember Shelley Mayer (D-Yonkers) was joined by fellow elected state office holders and members of The Business Council of Westchester on October 8, 2014, to implore the New York State Gaming Commission to reject any license for a casino in Orange County.
Assemblywoman Shelley Mayer, D -Yonkers, implored the New York State Gaming Commission to reject any license for a casino in Orange County.
Lawmakers in Westchester, among many lawmakers throughout the state, as well as The Business Council of Westchester expressed dire and passionate concern over the potential of building a casino or granting any gaming license for Orange County – a short distance from the existing facilities in Yonkers and New York City, and other possible casinos in Sullivan and Ulster counties. Concerned leaders gathered on Wednesday at Empire City Casino in Yonkers to express their opposition and called on the Gaming Commission to reject, outright bids for an Orange County casino as it was not the intended regional target of the gaming legislation.
Assemblymember Mayer were joined by Assemblyman J. Gary Pretlow (D-Mount Vernon) and Chair of the Assembly Racing and Wagering Committee, Senate Democratic Conference Leader Andrea Stewart-Cousins (D-Yonkers), Sen. George Latimer, (D-Rye), Assemblyman Tom Abinanti (D-Greenburgh), Sen. Ruth Hassell-Thompson (D-Mount Vernon), and Assemblyman Michael Benedetto (D-Bronx), along with other members of the New York State Legislature.
“Building any gaming facility so close to ones that already exist is a losing bet for New York. Empire City Casino is a proven job-creator and revenue generator – it employs 1,400 people including many from southern Westchester and The Bronx, and generates roughly $350 million every year for New York State,” said John Ravitz, executive vice president and COO of The Business Council of Westchester. “Allowing a developer to get a gaming license so close to Yonkers would essentially cannibalize an already successful business.”
The Business Council supports Empire City’s eventual goal of getting a full gaming license in seven years as it has invested millions in its existing operations and has plans to expand in the future, but maintains that Empire City must first be protected from the potential of new casinos too close to its market, Ravitz added.
“I stand with my colleagues and The Business Council of Westchester in opposing the siting of a casino in Orange County.
It is contrary to the original intent of the legislation, as well as spirit of the Constitutional Amendment,” said Assemblyman J. Gary Pretlow. “Empire City Casino at Yonkers Raceway has been a tremendous partner in Yonkers and across the state, providing needed jobs, significant educational funding and tax revenues. We should not undermine its contribution to our community and our state by siting a casino within 30 minutes of the Raceway.”
“Empire City Casino at Yonkers Raceway is a critical contributor to the economic health of our county and our state. It would be a serious mistake for the state to allow a casino to be operated so close to Yonkers that it would jeopardize the good paying jobs and economic contribution that Empire City provides,” said Assemblymember Shelley Mayer. “We stand together to urge the Gaming Facility Location Board to reject any casino in Orange County, and to remain true to the legislative intent of the authorizing bill, which was to benefit the struggling upstate communities of the Catskills.”
The State Legislature in 2012 and 2013 approved legalized gambling in New York State. Those consecutive votes were followed by a public referendum in November 2013 to amend the state Constitution to allow as many as seven full-scale casinos as part of a plan to create jobs in economically distressed areas of upstate New York. While state law doesn’t preclude construction of a casino in Orange County, lawmakers say the original intent of the legislation was to bring such destinations to upstate New York, particularly the Albany area, the Catskills-Hudson Valley region and the Southern Tier, which borders Pennsylvania. A decision from the Gaming Commission is expected soon.
The Rooney Family, owners of Empire City Casino, has been part of the community for more than 40 years. They have invested nearly $450 million in their facility, which currently employs 1,400 people – including 450 people from The Bronx – represented by 14 unions, and annually generates $300 million for New York State education plus millions more for local government, area businesses, and the racing and agricultural industries.
Also joining Assemblymember Mayer and The Business Council at Wednesday’s event, were R.J. Puma, McLean Avenue Merchants Association; James Landy, Hudson Valley Bank; Kevin Cacace, Yonkers Chambers of Commerce; Loraine Palais, Lincoln Park Taxpayers; Patty Marlow, Yonkers Rotary Club; Jeanne Bloom, Westchester Food Bank/Coalition for the Hungry & Homeless and Lenny Caro, Bronx Chamber of Commerce.
Last month Senator John Bonacic, chairman of the Senate Racing, Wagering and Gaming Committee, wrote a four-page letter to state gaming regulators expressing concern over allowing a casino in Orange County on the grounds that it would hurt downstate “racinos” with video-lottery terminals, such as Empire City Casino in Yonkers and Aqueduct in Queens, and crush prospects for Catskills region.
“The impact of casino proposals in the southern part of this region will be felt by nearby video lottery facilities. It is my personal belief if a casino is located in the southern portion of this region, the revenues currently generated by video lottery facilities at Yonkers and Aqueduct would diminish,” Bonacic, whose district includes Orange County, wrote in the Sept. 18 letter. “Proposals in the Catskills are significantly further along, if not finished with their reviews and approvals for construction of their projects, as opposed to projects through the southern part of the region which have only begun the process.
Here’s what other lawmakers are saying:
“Empire City Casino is a vital resource to New York State and the City of Yonkers. It employs over 1,400 local residents, provides hundreds of millions of dollars in revenue to the State, contributes over $19 million a year to the Yonkers schools and supports countless local organizations,” said Democratic Conference Leader Andrea Stewart-Cousins. “I am opposed to any casino proposal that would seriously impede Empire City’s success in the future.”
“Empire City is a tremendous economic asset to Yonkers and the region around it as a job creator and direct contributor of nearly $300 million per year just for education,” said State Sen. George Latimer, “It’s important that the business community and the elected officials of the area come together to oppose any action that would reduce that benefit to Yonkers, Westchester and the region around Empire City. When Empire City succeeds and creates jobs and helps fund our schools, the City of Yonkers will ultimately place much less of a burden on local taxpayers.”
“Sullivan and Ulster Counties are where these casinos belong to aid in their economic redevelopment,” said Assemblyman Mike Benedetto. “That was the intent of the legislature. To do otherwise would be to ignore our intent and do severe harm to Empire City and all those employed at the Yonkers racino.”
“I strongly oppose siting a casino in Orange County because it would undoubtedly cost the jobs of people working at Yonkers Raceway, many of whom are Bronxites, including my own constituents,” said Assemblyman Jeffrey Dinowitz (D-Bronx). “It makes absolutely no sense to locate a casino so close to New York City. It is essential that the decision-making process not only take into account any potential benefits of locating a casino in a community but give equal weight to the negative impacts it would have on other communities.”
“I oppose placing a casino in Orange County. Instead of promoting economic development in distressed communities, an Orange County casino will drain revenues from Yonkers and further deteriorate the Catskills. Westchester will see a loss of jobs, reduced revenues and less education funding,” said Assemblyman Tom Abinanti, D-Greenburgh/Mt. Pleasant.
“The intent of the Casino Legislation was to spur development and bring jobs to economically depressed areas in upstate New York. Authorizing a casino in Orange County would contradict the very reasons that the bill was drafted and passed. A casino in Orange County would compete with the nearby Empire City Casino which would cost, not create, jobs in the area. As per the intent of the bill, Orange County should only be involved in revenue sharing of newly constructed upstate casinos,” said Assemblyman Andrew Garbarino, Ranking Republican Member, Racing and Wagering Committee.
“Shifting gambling revenues from one portion of New York State to another is not economic development, which is why developing this casino in Orange County is not in the best interest of New Yorkers,” said Assemblyman David Buchwald (D-Mount Kisco).
In Crain’s New York Business’ September 29-October5, 2014th edition, Lisa Fickenscher’s article, “Aqueduct Racino’s Growth Slows”, notes “Empire City in Yonkers, which had previously been the highest grossing racino in the state, took a big hit when its Queens rival, [the 36-month–old racino at Acqueduct Raceway in Queens enjoyed a run of record-breaking revenue and double-digit annual growth]. In response, [Empire City Casino] completed a $50 million renovation and expansion, adding slot machines, restaurants, bars and entertainment. A spokeswoman said the casino’s revenue declines are moderating.”
Fickenscher continues, “Empire City’s net wins were down by $2.5 % to $47.7 million, from August 2013 to August 2014, the most recent data available Gaming Commission. ‘[Our] projections indicated a potential revenue loss of one-third when Resorts World opened,’ said Ryan Murphy, Empire City’s vice president of marketing. ‘Our largest monthly decline was less than half that amount.’”
A decision over whether Orange County will be approved for or denied to build a casino will be decided in about a month’s timeframe.
Comments 4
Keep the rooney’s envelope coming to uncle nick for protecting empire city’s money maker, all to help nys while YO has to take loans from andrew-the-arrogant.
Did any of them voice these concerns to King Andrew when he set this up?? As for Pretlow you are right he can’t stand Yonkers. He feels Yonkers should get nothing from the raceway anyhow.
nicky and all his friends thank you again.
Why is gary pretlow there, he detests empire and yonkers. By the way, the 300 million would not go away, it would just be generated in a different county/town. Ah, free enterprise, isn’t so free,is it? Well, the Hasidic community has given their nod for a casino in orange county, so you cant stop it now. Not one of the public officials up in orange or the state has the courage or decency to oppose or morality to turn down one of their paper bags stuffed with goodies.