Upstate racinos would lose territory with casino picks

None of those facilities is closer to Lago’s site than Finger Lakes Gaming & Racetrack, an Ontario County racino just 27 miles west.

“To be honest, it didn’t make logical economic sense when they picked it,” said Chris Riegle, president and general manager of Finger Lakes Gaming. “The cannibalization factor is so strong. In the end, the state, it’s not going to be any further ahead.”

The state’s racino operators say the selection of Lago creates an unlevel playing field, as the USD 425 million project will be subject to lower tax rates and will feature amenities which not all gambling halls are permitted to build. Also threatened by the selection is upstate New York horse racing, where purses are already dependent on a racino’s revenue stream.

Gaming Facility Location Board Chairman Kevin Law said the Tyre proposal had superior financial projections, far exceeding the two Southern Tier bidders — Tioga Downs, in Nichols, and Traditions, in the town of Union.

“We just thought it had the best chance for success in that region,” Law told reporters Dec. 17 following the selection.

In a Dec. 26 letter, Gov. Andrew Cuomo urged the state Gaming Commission and the location board to reopen bidding for a casino in the “true Southern Tier.” The commission has yet to publicly respond to the request. The board chose three projects throughout the state, though the casino legislation gave it the power to recommend up to four.

The board did not recommend a casino for Orange County, where six projects, including those by gambling giants like Genting and Caesars, were proposed.