Two casino developers withdraw applications for New York license

Two of the 21 entities that paid a $1 million mandatory fee have withdrawn from New York's casino application process in time to get a full refund, state officials said yesterday. The two entities that asked for a refund are: PNK Development 33 by Pinnacle Entertainment and Rolling Hills Entertainment by Baker Botts. The New York Gaming Facility Location Board announced the application withdrawals yesterday.

Pinnacle Entertainment pursued a deal for a proposed casino near Thruway Exit 23 in Albany but the development team ultimately selected another operator, Global Gaming, that is affiliated with the Chickasaw Nation, an Indian tribe in Oklahoma.

“We spoke to more than half a dozen potential operators including Pinnacle, and each of thembrought a lot of positives to the table," said a spokesman for developer Flaum Management Co. "At the end of the day, we felt very strongly that Global Gaming’s experience in operating successful casino resorts gave us the best chance to submit a winning application and making E23 a reality.”

Officials at Pinnacle Entertainment, a casino operator in Las Vegas, were not immediately available for comment. Lee Charles, a principal of Baker Botts, an international law firm with an office in New York City, also wasn't available. It's unclear which upstate New York sites were being pursued by Baker Botts. Applicants were not required to divulge a location when they paid the US$ 1 million fee.

Four licenses will be awarded this fall in three upstate regions, including the Capital Region. Applications are due June 30. Any firms that withdraw from the process at this point will only get a portion of the US$ 1 million returned. The state will deduct any costs for background investigations.

Besides Albany, casino operators and developers are teaming up to pursue projects in East Greenbush in Rensselaer County and in Schenectady along the Mohawk River. Other proposals may surface before the application deadline.