Of course, it was not a bailout, but money they had coming from New York State in the exchange for turning over the deeds to their three racetrack properties, the terms for which spelled out clearly in the franchise agreement of 2008.
Meanwhile, Saratoga Gaming & Raceway, a.k.a. “the harness track,” a highly successful venue since VLTs transformed the property into a regional and destination attraction, is facing a threat from without, the construction of a full-scale casino in the Berkshires of Western Massachusetts.
Saratoga Springs is located about 40 minutes to the north by car via Northway Route 87 from the state capital; the Berkshires are a little farther in another direction but is easily accessible via I-90 East from Albany.
The larger issue is that while Saratoga has close to 1,800 VLTs, Massachusetts would offer a full complement of table games.
"I'll see your big apple and raise you two oranges."
The highly successful Connecticut-based Mohegan Sun is mindful of a threat to its own operations, electing to get into Massachusetts gaming on the ground floor by building a casino near Springfield, one of three slated for the Bay State.
While there was some discussion at to when New York State might establish full-scale casino operations, there wasn’t a lot of confidence expressed at this week’s New York Gaming Summit that it would happen anytime soon.
New York legislators have not even written statutes permitting electronic table games, saying that since existing laws do not expressly forbid it, operators could proceed as they wish. However, gaming operators have been reticent to invest in any project on the basis of tacit approval.
An expansion of full scale gaming can’t happen until an amendment is written into the state constitution, a long, arduous and multi-layered process. So, until a Constitutional Convention is called, that won’t happen anytime soon, either.
At present, Senator Charles Schumer and State Attorney General Andrew Cuomo, the odds-on favorite to be New York’s next Governor, seem to favor expanded gaming.
Schumer has publicly made comments in support of casinos for the Catskills region while Cuomo, in a 237-page position paper, stated that he wants a comprehensive review of how all gaming in the state is conducted.
While New York needs to collect vast revenue to close its enormous budget gap by any means necessary, the audience at the recent New York Gaming Summit were told not to have confidence that expanded gaming would happen in the near future.
While full scale casino operations are perceived to be a relatively harmless way to collect badly needed revenue without burdening all of the state’s citizenry, Gaming Summit attendees were warned that economics wasn’t the only consideration with respect to expansion.
James Featherstonhaugh, a high powered, corporate litigator and partner in the Albany Law firm of Featherstonhaugh, Wiley and Clyne, LLP, was instrumental in the adoption of the state’s racino legislation and is part owner of Saratoga Gaming & Raceway.
At Tuesday’s conference, Featherstonhaugh counseled that competition among gaming operators was fierce, and that policy issues and morality were also considerations. In other words, politics would decide whether or not expanded gaming would happen in New York.
“I think there are going to be some major changes in the way gaming is looked at,” Featherstonhaugh said during the Politics and the Law segment. "The next governor wants to make a comprehensive review of gaming as a whole, including possibly a constitutional convention that could lead to full-scale casinos.”
While New York dithers about what it wants to do, Pennsylvania will introduce full table games next month and voters in Maine will decide on casinos via referendum this November.
But for New York, and especially Saratoga Gaming & Raceway, the threat is more menacing. When Massachusetts comes on line, it will be able to offer not only a full compliment of gaming but can spend more on its customers via player rewards programs.
Why? Because the tax rate in Massachusetts for a full-scale casino is 25 percent compared to New York’s 50 percent rate on video lottery terminals. In the long run, which state would be in the best position to succeed?
25 Jun 2010 at 03:26 am | #
New York has no choice and must keep up with its neighboring states in regards to full scale casinos, lower tax rate and player rewards programs. BUT with a casino at every doorstep what price will be paid to society especially our youth. That’s why it’s called gambling!
25 Jun 2010 at 04:22 am | #
Fappiano,
That argument is way, way older than I am and, of course, it has validity. The problem is that there’s no way to stop it. People, young and old, will gamble. Like anything else in life, it’s a question of degree, just as alcohol is.
When it comes to enticing young people, I don’t remember any hue and cry when poker became a “sports” event on TV. Now almost every final table has a large percentage of young adults. To repeat; young ADULTS.
As old as this argument is, its kissing cousin is that you can’t legislate morality. And I think the Prohibition proved how well that worked.
If those in government and right wingnuts are so concerned about gambling being too pervasive and too tempting, their first course of action should be to close down state lotteries everywhere, that not only prey on those who can least afford it but is everywhere in every neighborhood, right there next to the candy and the magazines. Not to mention that the odds against winning are tantamount to robbery, flat-out.
At least when it comes to casinos and racetracks, it takes effort to get there and is nowhere near as pervasive. Gambling today is as close as the nearest laptop.
Thanks for the input. Good sidebar.
JP
25 Jun 2010 at 09:58 am | #
All valid points Preech, It seems a shame that racino’s are now needed to keep horse racing afloat. There is no skill involved with one armed bandits, roulette and lotteries with the odds stacked against you. Card games can give you an edge with skill, but without good cards can do you little good. Horse racing on the other hand offers a handicapping puzzle that intrigues the mind and allows odds to work in you favor when utilzing breeding, speed figures, trainer and jockey percentages etc. gained with experience. Of course there is luck with trips and sudden wakeup form. You can also make alot from little and enjoy the day outdoors. I guess today more people enjoy gaming without much thought process needed.
25 Jun 2010 at 10:09 am | #
...As we reap the fruits of the dumbing down of America.
25 Jun 2010 at 10:45 am | #
LMAO .... If only takeout can get reduced and consistent larger fields(only 5 in tomorrows grI Mother Goose)in our lifetime the fruit would be sweeter!