The mayor of Yonkers says a casino in Orange County would cannibalize a large part of the existing casino gambling market rather than expand it. The losers would be the Catskills, Yonkers and the state.

 
How much does it cost to buy a constitutional amendment in New York state?

Genting, which is the world's biggest gambling corporation, is pricing it at $450 million. That's how much the company is offering the state to trash the intent of the casino gambling amendment passed by the voters last year and instead approve a plan that will fatten Genting's profits at the expense of the rest of the state's economy.

Genting is just one of three casino operators seeking approval from the state's Casino Siting Board to open in Orange County. But it's over-the-top offer of a $450 million licensing fee, which is $380 million more than the state is requiring, is the best example of what casino operators will do to build a casino where they want it rather than where the state's economy needs it.

Does anyone remember the language of last year's casino amendment and the multimillion-dollar ad campaign to sell it to the voters? If you do, then you recall the language that said it would revitalize upstate with jobs and help schools with profits from the new casinos.

Orange County, with an unemployment rate of less than 6 percent (compared to the state's overall 6.6 percent rate) and in the top third of personal income of the state's 62 counties, is hardly distressed.

 But that is exactly why Genting is willing to pay $450 million to convince the state to ignore the intent of last year's constitutional amendment.

Michael Levoff, and Christian Goode, VP of Genting Americas, talk about Sterling Forest Resort, a casino plan in Tuxedo vying for a state license. (video by Albert Conte) Albert Conte/The Journal News

It's much more profitable to open a casino in a wealthy area where people have plenty of money to spend rather than in an upstate county that is economically stressed. It's much more profitable to tap into the New York City day-tripper market rather than have to count on overnight visitors.

Yet Genting's gain would be everyone else's loss. The City of Yonkers receives $20 million a year for schools from the existing Empire City casino and racetrack. Schools statewide get about $116 million a year from Empire City.

That will change for the worse if a casino opens in nearby Orange County. Empire City already experienced a 10 percent drop in revenue when Genting opened its giant casino at Aqueduct Racetrack a few years ago. If another casino opens in Orange County, just 35 miles from Yonkers, there will be another, probably larger, drop in revenues and aid for schools.

The chance to revive the Catskills, which was a main reason to expand gambling, will also disappear.

In fact, several potential casino operators for the Catskills have said they will withdraw their plans if a casino opens next door in Orange.

The bottom line is that a casino in Orange will cannibalize a large part of the existing casino gambling market rather than expand it. The losers will be the Catskills and Yonkers as well as the state of New York, which will accept a $450 million one-shot fee in return for giving up long-term economic growth.

There will be one winner if Genting gets an Orange County license — Genting. The world's biggest gambling company would now own the two largest casinos within driving distance of New York City, and would have the only one with the highly profitable table games.

How much does it cost to buy a constitutional amendment? Let's hope the state of New York isn't selling one.

The writer is mayor of the City of Yonkers.

THE ISSUE

In November, New Yorkers passed Proposition 1, a constitutional amendment that allows full-scale casino gaming.

Now, the state Gaming Facility Location Board is considering 16 proposals throughout the state, with plans to issue up to four licenses within three regions of the state. The largest proposal is Genting America's $1.5 billion Sterling Forest Resort in Tuxedo, Orange County. Genting also has proposed a casino plan for Montgomery.

The Gaming Facility Location Board is expected to make licensing decisions this month.




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