New York governor pushes for four upstate casinos

The bill is expected to authorize four major upstate resort casinos. It is expected to see more revisions before it is released publicly as early as Monday. It could be voted on in the coming week, before the 2013 legislative session is scheduled to end.

A copy of the revised bill obtained Saturday by The Associated Press includes a provision that would authorize video slot machine centers in New York City's outer boroughs and as many as three or four places upstate. The bill provides for the video slot casinos with up to 5,000 machines at each center.

Hours after refusing to discuss the bill, Governor Andrew Cuomo confirmed his proposal through a spokeswoman. "If the casino referendum fails, we will propose offering more high-end (video slot machines) to combat the loss of revenue to neighboring states and secure new funding for our schools," said Cuomo spokeswoman Melissa DeRosa.

Cuomo's spokeswoman confirmed that the governor's proposal would subject current video slot machine centers including the one operated by the Genting company at Aqueduct race track and others represented by the New York Gaming Association. She said some video slots centers aren't required by the state to provide revenue to local communities and that that's unacceptable. "No racino was granted a lifetime monopoly," she said in a statement Saturday night.

Originally, Cuomo pushed for three casinos, but he has since upped the ante to four, to boost the long distressed economy.  If the bill is approved, the new casinos will be protected from downstate competition for the first five years of operation. It’s unclear where the casinos will be built, but the areas are limited to the Catskills tribe land located in Hudson Valley, the southern tier and the capital region. Cuomo is confident the Catskills tribe’s weak economy will benefit and grow from the casino revenue.

Cuomo has said that getting public approval for a constitutional amendment to allow Las Vegas-type casinos would be difficult. Gambling opponents and competing gambling entities are expected to mount TV ad blitzes.

Senator John Bonacic and Assemblywoman Aileen Gunther stand alongside Cuomo, however Bonacic wants five casinos. “I am hopeful the governor can consider authorizing five casinos upstate now. I fear if he does not, it will leave it too open-ended, allowing casino naysayers and those who play to NIMBYism more fodder to oppose to the referendum,” Bonacic said.

The measure also serves as incentive for the New York Gaming Association to support Cuomo's casino bill, or at least not to fight it. NYGA represents racetracks with racinos, the name for casinos that offer video slot machines and video table games. Those are games that were created to avoid the constitutional ban on gambling off Indian land. The new provision would open competition for more video slots centers to gambling operators beyond the race track operators.

However, the New York Gaming Association is not on board. They represent the slot parlors and fear it would put the parlors out of business. The slot parlors generate approximately us$ 1 billion each year in gaming tax revenue for education. To compensate for the impending loss, Cuomo has proposed a 25 % tax rate on the full-scale casinos.

NYGA had told the AP last week that it opposes Cuomo's casino proposal because it wouldn't provide a fair chance for racetrack racino operators to compete for a Las Vegas type casino. Members of NYGA and the operators of a lucrative racino at Aqueduct race track could be wealthy opponents to the casino referendum.

Five years later, more could be authorized in areas including the New York City area, outside Manhattan. The referendum would authorize a total of seven Las Vegas-type casinos. Whether the legislature chooses to adopt three, four or five casinos, it will need the Governor’s signature. Then it is up to the voters in November.