What’s in a name? According to Will Shakespeare, “That which we call a rose by any other name would smell as sweet.” Some call it New York State Assembly Bill 8086. Others call it the New York Casino Gaming Amendment. Most call it Proposition One. The amendment to the state constitution will appear on the […]
What’s in a name? According to Will Shakespeare, “That which we call a rose by any other name would smell as sweet.”
Some call it New York State Assembly Bill 8086. Others call it the New York Casino Gaming Amendment. Most call it Proposition One. The amendment to the state constitution will appear on the Nov. 5 ballot. Voter approval is required before casino gambling can be authorized.
Stripping out the flowery language which will appear on the ballot, the amendment authorizes licensing four, table-gaming casinos in three upstate regions: Albany–Saratoga, the Catskills, and the eastern section of the Southern Tier. Seven years after the first upstate license is issued, three more casinos are slated for downstate. If the amendment passes, the licensing and supervision will be administered by the state gaming commission.
If the casinos are approved, the Empire State is anticipating a slug of tax revenue that will benefit not only the areas where the casinos are located but also the entire state. Ten percent of the tax dollars will be split between the host municipality and county. Another 10 percent will go to counties in the destination gaming-resort region. The remaining 80 percent is distributed statewide to be spent on education and property-tax relief.
To date, the public is split on the issue. Opponents point out that much of the gambling revenue is generated by a small percentage of the population addicted to the pastime. To counter the argument, the amendment includes a set-aside of tax revenues to fund remedial groups that deal with the problem. New York’s lieutenant governor says the fund is projected to receive $4.7 billion. Proponents of the amendment also point out that today gambling is readily available to all whether it’s online or in any of our neighboring states.
Opponents also point to Atlantic City to show that the benefits are limited to the immediate area around the casinos. The region served by The Business Journal will see only one casino located in the Southern Tier. The leading candidate for the license is Tioga Downs, located in Nichols. Anyone who has driven Route 17 past the racino knows there is no adjacent municipality to be negatively affected.
Some protest the traffic disturbance and attendant crime, but there is no evidence that this would be a problem in Nichols.
Proponents of the amendment point to an assortment of benefits. Statewide, they project the creation of 10,000 new, permanent jobs and $1.6 billion in construction spending. They also expect increased tourism, hundreds of millions of dollars in funding for education, and local and state tax relief. Finally, proponents note the entertainment options offered to local residents in the form of concerts, shows, restaurants, spas, and gaming.
Benefits to our region are more limited. Jeff Gural, the majority owner of American Racing and Entertainment, LLC., which owns both Vernon Downs and Tioga Downs, says his new casino would generate $25 million to $30 million annually in state taxes, require 300 new construction jobs, and create 175 to 200 new permanent positions. Gural points out that casino gambling is a labor-intensive business as is running the adjacent hotel, proposed spa, events venue, and restaurants.
It’s unclear how the public will vote on the issue. The Business Council has endorsed the amendment while the Conservative Party opposes it. The state comptroller hasn’t made up his mind on the issue, although he cautions that the deluge of anticipated tax revenue may be overstated. The amendment does not appear to be an issue in the New York City mayoral race, where many New York voters reside. In a non-presidential/congressional election year, voter turnout should be low, which may or may not augur well for passage of the casino gaming amendment. The proposition also appears on the back of the ballot, so it’s unclear whether voters will even turn over the ballot.
I hope Mr. Shakespeare isn’t offended, but whatever you call the amendment, it smells sweet to me. I vote yes.
Norman Poltenson is the publisher of The Central New York Business Journal. Contact him at npoltenson@cnybj.com