Vernon Downs set to close in stages later this year unless state offers tax breaks

VERNON, N.Y. — Mid-State Raceway, Inc., which does business as Vernon Downs Casino & Hotel, filed a notice with the state this week that it will close later this year unless the state grants $2 million in tax relief by restoring the previous agent commission fee the casino and racetrack received.

Workers United Upstate New York, the union representing Vernon Downs employees, is calling for the state to restore the previous 6.4 percent agent commission fee. That increased fee — which is the portion of net win paid to casino operators as compensation for running a gaming facility — was put in place by the New York State Gaming Commission after Vernon Downs’ annual slot revenue decreased from $40 million in 2015 to $28 million in 2017. Under the agreement, Vernon Downs would receive 6.4 percent of lottery net win if the organization maintained 90 percent of full-time equivalent workers as of 2016. According to the union’s press release, the commission later revoked that additional fee.

In the worker adjustment and retraining notification (WARN) filed this week with the state, Vernon Downs indicated it would close in stages with the casino, Champions Buffet, Ring Eyed Pete’s, and Triple 777 Cafe closing first on Aug. 7. The racetrack, Trackside Deli, and Miracle Mile would follow, closing on Sept. 18. The remaining operations, which includes the hotel, Mr. G’s Food & Spirits, and banquet facilities, would close Dec. 31.

The closings would cost 249 jobs, according to the notice.

The union is hosting a press conference Friday, May 12 at 11 a.m. at the casino, 4229 Stuhlman Rd., Vernon, to discuss the issue.

“I have been notified by my constituents of the possible closing of Vernon Downs in stages, if the legislative and executive branches can’t find a solution to supporting another tax-credit extender,” state Assemblywoman Marianne Buttenschon (D) said in a press statement. “I have worked endlessly with my colleagues in the legislature in the past and will continue to do so to assist Vernon Downs to remain open. My number one priority remains the employees and their families.”

The state’s WARN act requires certain businesses to provide early notice of closures and layoffs to give employees and their families as well as local leaders and the community time to plan for transition, seek new employment, and enter workforce-training programs with assistance from the state Department of Labor and local Workforce Development boards.