Rivals Ready Onslaught to Sway Casino Debate
By CHARLES V. BAGLI
A vacuum cleaner roars. Then comes a woman’s voice. “You hear that?” she asks. “It’s the sound of money and jobs being sucked right out of our state, with New Yorkers going to Connecticut and Atlantic City for casino gaming.”
The 60-second radio commercial is part of a $240,000 ad campaign that is now running in western New York in support of Gov. Andrew M. Cuomo’s proposal to legalize full-scale casino gambling. It is an opening salvo in what is expected to be an onslaught of television and radio commercials, billboards and newspaper ads connected to the debate over allowing table games, in addition to slot machines, at casinos in New York.
The battle is already being waged not so much between pro- and anti-gambling forces as among rival factions favoring full-scale casinos. They include the state’s slot machine operators, Las Vegas gambling companies, three Native American tribes and a Malaysian conglomerate.
They are arguing over the number of casino licenses, where the casinos would be permitted and whether to lower the relatively high tax rate on gambling in New York.
The rival groups are planning to spend tens of millions of dollars to win public and political support as the governor’s proposal wends its way through the Legislature and, if it is approved in two sessions, a public referendum.
Genting Berhad, the Malaysian conglomerate, has hired some of Albany’s most prominent lobbyists to press its case. Genting recently opened an $830 million slot machine parlor at Aqueduct racetrack in Queens. It also wants to build a $4 billion convention center there, and to block new casinos in New York City.
The radio commercial with the vacuum cleaner noise is sponsored by the New York Gaming Association, which was formed last year to lobby for legalization, restricted to racetracks.
“The stakes are very high,” said William R. Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno. “New York would arguably be the best prize North America could offer for a casino resort because of the absence of a significant full-service casino and the concentration of population.”
Up to now, full-scale gambling in New York has been confined to Indian casinos primarily in relatively remote locations and slot machine parlors at the state’s racetracks. But the prospect of a Las Vegas-style casino resort in the New York City region has captivated major gambling companies.
Last month, Mr. Cuomo proposed amending the State Constitution to allow full-scale casinos, not just slot parlors or Indian casinos.
Since gambling already exists in various forms in New York and in surrounding states, the governor argued that it made sense to regulate and capitalize on it so “we can do gaming right.”
His aides said he was keenly interested in the kind of casino resorts found in Las Vegas that offer hotel rooms, restaurants, high-end stores, gambling and, potentially, billions of dollars in tax revenue.
Past efforts to legalize casino gambling in New York came up against formidable opposition from religious groups and stalwart opponents in the Legislature, like Senator Frank Padavan, a Queens Republican. But Mr. Padavan is out of office now, and criticism of Mr. Cuomo’s proposal has been muted in the face of support from business groups like the Partnership for New York City, the Committee to Save New York, and the Business Council of New York State.
David Blankenhorn, president of the Institute for American Values, an advocacy group that opposes casinos, in Manhattan, said he was concerned about the absence of a vigorous opposition. “This is not the way government should treat citizens,” Mr. Blankenhorn said. “It’s an ethical issue about fleecing unwary, vulnerable people in order to pay for government.”
The various gambling interests are expected to carry out vigorous advertising, lobbying and grass-roots campaigns in large part because of the way that Mr. Cuomo is seeking to expand gambling.
He has submitted a bill to the Legislature that would amend the State Constitution by inserting only eight words into it, to make casinos legal. A constitutional amendment, however short it is, must be approved by two separately elected Legislatures and then by voters.
Cuomo aides said they believed that details concerning legalization — like the number of casinos that would be allowed and the tax rate on casino winnings — did not belong in the Constitution. They indicated that they would rather postpone that fractious debate so their proposal could gain momentum.
Most experts said Mr. Cuomo would limit the number of casino licenses, much as Massachusetts did. Lawmakers there recently authorized three casino resorts, and Las Vegas gambling companies will compete for the licenses.
But the New York Gaming Association has submitted its own bill to allow legalization but to limit it to casino gambling at racetracks, said James D. Featherstonhaugh, a lobbyist who owns a stake in a racetrack casino in Saratoga Springs.
The association is facing off against the tribes and Las Vegas gambling companies like Wynn Resorts, the Las Vegas Sands Corporation and Boyd Gaming, which want the chance to build a casino resort in New York City.
They have suggested that they will spend millions opposing legalization if they believe that casinos will be confined to racetracks. “We’re the biggest operator-developer in this industry,” said Ron Reese, a spokesman for Las Vegas Sands. “Under the right scenario, New York is an intriguing opportunity.”
Steve Wynn, the gambling impresario, is making a second bid to build a casino resort in New York. “He’s going to be back in New York, and maybe someday he’ll have a casino in Times Square,” said a lawyer for Mr. Wynn, Barry Slotnick.
The Seneca Nation of Indians, as well as the Oneidas and the St. Regis Mohawks, operate casinos in western New York. They are opposed to new casinos that would violate the geographic exclusivity zones granted under their compacts with the state. They are less worried about casinos in New York City.
The Senecas, who are running two 60-second radio ads in western New York, contend that Mr. Cuomo’s proposal to legalize full-scale casino gambling could derail the tribe’s three casinos, near Niagara Falls, which have brought jobs and revenue to the state.
In its negotiations with the Cuomo administration, Genting Berhad appeared to have gotten an advantage over its rivals, Wynn Resorts and Las Vegas Sands.
When Mr. Cuomo announced his goal to legalize full-scale casino gambling, he outlined Genting’s proposal to build a $4 billion convention center at Aqueduct, with 3,000 hotel rooms and additional slot machines.
Mr. Cuomo insisted that the project was unrelated to legalization of full-scale casino gambling and would cost taxpayers nothing.
But Genting wants an exclusionary zone of about 25 miles that would bar any new casinos in Manhattan or in Nassau County, where the Shinnecock Indian tribe has considered building a Las Vegas-style casino.
“The state has provided exclusivity to other projects,” said Christian Goode, one of Genting’s top executives in the United States. “It’s a logical path. We don’t want to cannibalize our own market.”
Genting also wants a lower tax rate. “We only retain about 30 percent of gaming revenues,” at Aqueduct, Mr. Goode added.
Wynn Resorts, Las Vegas Sands and other gambling companies are opposing any attempt to block them from competing for a license in New York City.
“My understanding is that no one has promised anyone exclusivity,” Mr. Slotnick, the lawyer for Mr. Wynn, said. Take the Steve Wynn -Barry Slotnick reading, writing and public service challenge:
1. NY PML Sec 105 violates the rights of New York Bettors secured by NY Const. Art. 1, Sec. 3? Yes or No.
In considering the advertisements, hype, political and lobbying contributions, and actions of these guys and their casinos, ask why they have not helped the bettors and taxpayers of New York by ridding us of NY PML Sec 105?
Perhaps they want to see your OTB, public benefit corporations, dead or bankrupt?
Barry Slotnick 212-687-5000
Steve Wynn 1-888-320-7123
Dear Attorney General Eric Schneiderman:
The Bettors of the State of New York and the employees of the remaining OTBs, public benefit corporations, have no standing to ask for your Opinion to the following simple questions with seemingly obvious answers::
1. Will the Attorney General defend the constitutionality of NY PML Sec 105?
2. Does NY PML Sec 105 apply to Nassau OTB?
3. Does NY PML Sec 105 violate the rights of New York Bettors secured by NY Const. Art. 1, Sec. 3?
4. Is NY PML Sec 105 vague, indefinite and/or overly broad as the term "Easter Sunday" does not define one and only one Sunday in all years (see eg Gregorian and Julian Calendars)?
I hope that you will sua sponte issue an Opinion as to the above so that bettors may bet, workers may work or not as they wish, and the State and its subdivisions make money. There are tracks running all across the United States every day of the year that bettors want to bet. Track calendars may be found at eg www.ntra.com. The OTBs also sell New York Lottery tickets which are drawn every day of the year. The OTBs also cash non IRS Lottery tickets in cash for any sum, a convenience for many Lotto Players.
It is critical in these current time that the OTBs are open when customers want to bet. I believe that your Opinion will belatedly validate the actions of New York City OTB taken on the advice of its Counsel in 2003.
Sincerely yours,
January 5, 2012
Open On 1st Palm Sunday, Otb Rakes In $2m - New York Daily News
articles.nydailynews.com/.../18220335_1_racing-and-wagering-boar...
Open On 1st Palm Sunday, Otb Rakes In $2m. BY JERRY BOSSERT DAILY NEWS SPORTS WRITER. Monday, April 14, 2003. New York City Off-Track Betting ...
§ 105. Supplementary regulatory powers of the board. Notwithstanding
any inconsistent provision of law, the board through its rules and
regulations or in allotting dates for racing or in licensing race
meetings at which pari-mutuel betting is permitted shall be empowered
to: (i) permit racing at which pari-mutuel betting is conducted on any
or all dates from the first day of January through the thirty-first day
of December, inclusive of Sundays but exclusive of December twenty-fifth
and Palm Sunday and Easter Sunday; and (ii) fix minimum and maximume
charges for admission at any race meeting.
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