Number of casino developers expected to decline in New York

The state has received 22 application fees of USD 1 million each from developers and casino operators hoping to obtain one of four casino licenses to be awarded this year, the state Gaming Facility Location Board announced last week.But there are a number of variables that will likely bring the total number of applicants down significantly before the licenses are handed out.

The US$1 million fee, which is reserved for investigating the applicants and their proposals, is fully refundable until the state board announces the minimum total investment required for a license, which is expected to come in early May.

Even after that, any portion of the fee that hasn't been spent by the state if an applicant withdraws before the licenses are awarded may be refunded. "I think (the fee) is a door opener, a placeholder for some people," said John Sabini, the former chairman of the state Racing and Wagering Board. "Obviously, there are some real contenders in here and some who are more interested in horse trading or jockeying."

Of the 22 application fees, 18 are from developers or casino operators who have laid out their intentions for one or more casinos or have at least signaled which region of the state they intend to pursue. The four licenses being awarded this year are reserved for the Southern Tier, the Albany area and a Catskills-centric region that stretches south to Orange County.

Of the remaining four, two were submitted by groups with generic names — Hudson Valley Gaming and Capital Region Gaming — which makes it difficult to assess who is behind them. A receptionist at the office of John Donnelly, the New Jersey-based attorney associated with the two groups, said Friday he is currently on vacation and couldn't be reached.

Two other groups who submitted a fee — Och-Ziff Real Estate and Rolling Hills Entertainment - have declined to reveal their intentions. The state has declined comment on the list of applicants, but is hosting a mandatory applicant conference on Wednesday near the Capitol.

The uncertainty surrounding some of the applicants and the fact that some developers are still looking to partner with casino operators leaves the potential for deal-making open, which could further cut down the total number seeking a license, according to Sabini.

A casino developer wants to build a US$670 million gaming and entertainment resort in the Town of Newburgh near where Interstate 84 crosses the Thruway.

The Hudson Valley Casino and Resort is proposed by Saratoga Casino and Raceway, a company based in Saratoga Springs and which hasa facility there.

It's one of several bids targeting the counties of Orange, Ulster and Sullivan. The state plans to approve one facility for the mid-Hudson-Catskills region. No proposals have surfaced for Dutchess County.

Rochester-area commercial developer Wilmorite is one of three companies looking to build a casino in the Southern Tier region. James Wilmot, the company's chief operating officer, said the developer has yet to partner with an operator, but has been negotiating with several.

"We have financial commitments, but none from operators at this point," Wilmot said. "We already have commitments from banks for all of the debt, so we feel very confident we are capable of doing this and we are exploring our options, but we have not committed with anybody at this point."

Another Rochester-area developer, David Flaum, came to an agreement this week with casino giant Caesars Entertainment for a proposed facility near Woodbury Commons in Orange County, 50 miles north of New York City.

But Flaum is also pursuing a US$350 million casino in the city of Albany, and Flaum Management wasn't specifically attached to any of those who submitted a fee.A spokesman for Flaum confirmed a casino operator had submitted a fee for the Albany project, but declined to say which one, citing a non-disclosure agreement.

The next step for those pursuing a license is the mandatory applicant conference on Wednesday. Each group that submitted a fee is required to send a representative.

From there, a formal proposal is due June 30. The Gaming Facility Location Board has signaled it intends to announce its decisions in the fall.

Here are the entities that submitted a US$1 million casino application fee in New York:

1. Caesars Entertainment

2. Capital Region Gaming

3. Concord Kiamesha and Mohegan Gaming New York by DelBelloDonnellan Weingarten Wise &Wiederkehr - Catskills

4. CRCR Enterprises, by TheCordish Companies

5. Empire Resorts

6. Florida Acquisition Corp by Clairvest

7. Greenetrack

8. Grossinger Development Corporation

9. Howe Caves Development 

10. Hudson Valley Gaming

11. Nevele-R by Nevele Resort, Casino & Spa

12. NYS Funding by Och-Ziff Real Estate

13. OCCR Enterprises by TheCordish Companies

14. PNK Development 33 by Pinnacle Entertainment

15. Rolling Hills Entertainment by Baker Botts

16. RW Orange County by Cleary Gottlieb Steen & Hamilton (Genting Group)

17. Saratoga Harness Racing (I)

18. Saratoga Harness Racing (II)

19. Tioga Downs Racetrack 

20. Trading Cove New York

21. Traditions Resort & Casino

22. Wilmot Casino & Resort by Wilmorite