good at gaming the system: from cash cow to cow chips

When it comes to gaming the political system for tax breaks and special perks, it’s hard to beat the gaming industry. In New York State, there are different rules and tax rates for its full-blown casinos, video-gaming racinos, and Indian casinos. Such factors help complicate the casino industry’s tax-gaming game, making for increased melodrama, campaign contributions, and lobbyist income.

Last week, the Times Union reported, in Harness tracks, racinos, feel the heat from casinos” (by Rick Karlin, June 18, 2017), that:

 Jeff Gural [note: major contributor to Gov. Cuomo and], majority owner of the troubled Vernon Downs harness track and video lottery game “racino” in Vernon, Oneida County, said he would have to close his doors this fall if he didn’t get a tax break.

And, today, the Schenectady Gazette published “2 harness track racinos look to state for relief“ (by John Cropley, June 19, 2017), and noted:

Two harness racing tracks that host electronic casino operations are looking to the state for help amid increased competition from the proliferation of casinos across upstate New York.

One piece of legislation would allow Saratoga Casino Hotel in Saratoga Springs to use 4 percent of its net win for capital improvements.

Another would increase the percentage of the net win retained by Vernon Downs Casino Hotel in Vernon, near Utica.. . .

Both bills have been approved by the state Senate but have been sitting in committee in the state Assembly. The 2017 legislative session is scheduled to end Wenesday.

In response to this year’s crop of Gaming Groveling and Gambits, the Times Union published a Sunday editorial, “No subsidies for the casinos” (premium online content).

The Issue:

Citing financial problems, an upstate gaming venue seeks a tax break.

The Stakes:

Taxpayers should not have to support cash cows that morph into albatrosses.

“Lets be clear what a tax cut means: A loss of revenue that other taxpayers have to make up. It will be what casino proponents insisted would never happen: state taxpayers subsidizing gaming halls that were supposed to be cash cows.”

The TU editorial concludes: “Certainly it’s fair to find equitable ways to spread the benefits so that hard-pressed local economies like Oneida County’s don’t suffer. What’s unfair is to ask taxpayers to continually cover venues for the bad bets they’re proving to be.”

No matter what happens in this Legislative session, I’m betting that billionaire Neil Bluhm’s Rush Street Gaming minions here at Schenectady’s Rivers Casino at Mohawk Harbor are already looking into ways to reduce their gaming and property taxes and gain advantages over their casino and racino competition. That is what they have always done at other casino venues, in good times and bad.  Best bets for Boo-Hooing from Rush Street:

  • using the failure to meet their revenue projections as the justification for seeking a reduction in the gaming tax revenue rate
  • pointing to lower gaming tax revenue rates at racinos and at other casinos (under Legislative compromises meant to aid locations in less populated or poorer areas) as “unfair” competitive advantages for their competitors
  • challenging property tax assessments whether or not they are having financial success

Unlike casino owners elsewhere, Rush Street has made no promise in Schenectady about putting off challenging property assessments. Here’s what the Worster Massachusetts VoteNoSlots group said a couple years ago about Rush Street and taxes:

At each of their four casinos, Rush Street Gaming has either fought to have its property assessment reduced, or threatened to reduce it:

  • As soon as Rush Street opened Riverwalk Casino in Vicksburg, Mississippi, it fought to have its property assessment reduced from $78 million to $30 million.
  • Almost as soon as they opened Rivers Casino in Pittsburgh, they began lobbying to have their property assessment HALVED, and have continued to do it every single year.
  • The city of Philadelphia also was involved in a legal dispute with Sugarhouse Casino over property tax.
  • If the state (of Illinois) approves a Chicago casino or slots at horse tracks, then Bluhm wants to be able to add more slot machines and pay lower tax rates in Des Plaines. “We absolutely need both,” Bluhm said when asked whether he would accept one without the other. “We couldn’t possibly survive. The numbers won’t work. If we just lower tax rates and couldn’t expand, we would be crushed.”

As we reported here when arguing against naming the primary road into Mohawk Harbor “Rush Street,” after failing in their campaign to achieve the 60% reduction in their property tax assessment they had sought in Vicksburg, Mississippi, Rush Street sold their Riverwalk Casino, in 2012, just four years after it opened.

But, Rush Street Gaming doesn’t have to be doing poorly to try to avoid taxes. As reported in some detail just last year at BetterGov.org, in “Rivers Casino’s Jackpot: $1 Million Property Tax Break” (by Chuck Newbauer & Sandy Bergo):

 The owners of the wildly successful Rivers Casino in Des Plaines have received more than $4 million in property tax cuts since opening nearly five years ago, by aggressively arguing that the property was worth tens of millions of dollars less than it cost to buy and build on.

Since 2012, Rivers has reported annual revenues of more than $400 million, after winnings, state records show. Its revenues are twice as large as any of the other nine Illinois casinos.

Despite their success, the Rivers owners claim the value of the casino and parking garage has declined, justifying tax relief. . . .

Tellingly, several successive reductions by the elected Cook County Review Board (from $104 M to $88 M each year) “is not enough” for Rivers Casino in Des Plaines: “The owners have gone to court seeking refunds of taxes paid in three previous years, arguing the assessments are still too high.” Rush Street’s primary owner Neil Bluhm is a well-known contributor and “bundler” in the Democratic Party. Although he did not donate to the Cook County’s elected Board members, his tax attorneys and appraisal firms have given substantial amounts.

The BetterGov.org article also makes a point similar to the Times Union Editors:

Whatever the case, the casino’s gain is their neighbors’ loss. Home owners and other property owners in Des Plaines and some surrounding communities have to pick up the slack to fund budgets for local schools, parks and other local government expenses to make up for the Rivers tax cuts.

Beyond property assessments, Rush Street Gaming is definitely not shy about efforts to change the rules in place when it received its casino license. For example, it has tried strenuously to fend off competition to its successful SugarHouse Casino from a second Philadelphia casino, although the State Legislature had for many years envisioned the second casino. First, it said the State Racing Commission could not re-issue the license after the first licensee failed to get necessary funding. That stalled the competition for years, before the argument was rejected by the State Supreme Court. “Pa. High Court Affirms Propriety of 2nd Philly Casino License” (Law360.ocm, by Alex Wolf). Nonetheless, SugarHouse’s lawyers have raised other issues in court, which have stalled the large South Philadelphia casino project even further. See  “Whatever happened with that South Philly casino?” (Billpenn.com, by Anna Orso, Jan. 6, 2017). Expectations are that SugarHouse and the other plaintiffs will lose again, but its Rush Street owners have “won” several years of added profits by operating as the only casino in that big town.

  . . click for cash cow cartoons & cow chips cartoons 
From Cash Cow to Cow Chips, Are they Too Important to Let Fail in Schenectady? Should Rivers Casino Schenectady start to seem more like a Cow Chip Factory than a Cash Cow, you can count on the local leaders who bet their reputations on the Mohawk Harbor casino to help in efforts at the State and local level to seek subsidies of various kinds to alleviate Mr. Bluhm’s suffering. It would be an amusing drama to watch, if it weren’t so important (and predictable). Stay tuned.

another nadir on the River (with updates & lowdowns)

(update: June 23, 2017): Rivers Casino in Schenectady set yet another new low for revenue generation in the week ending June 11, 2017, its 18th week in operation at Mohawk Harbor. Its net revenues were $2,062,162, down 23% from the prior week, and almost $100K below its previous low-point.

RiversRev23June2017

. . is our favorite Cash Cow becoming a Cow Chip factory? casinocowchips

. . and see, “psst: the casino cash cow has too many calves” (June 21, 2014)

Original Posting

 In its 15th week in operation, Rivers Casino at Mohawk Harbor in Schenectady set a stunning new low for overall net revenues at: $2,129,115, with slots income also the lowest to date, and poker table GRR under $100,000 [$99,503]. Here’s screen shot of its Report for the week ending May 21, 2017, which was posted late due to the Memorial Day weekend:

Meanwhile, at the Times Union, reporter Paul Nelson’s latest article is headlined “Poker winner nets $46k at Rivers Casino” (online May 29, 2017). I do not know whether that is a lot of money for a tournament that Rivers Casino General Manager Mary Cheeks says “attracted 1,095 players from seven states and Canada, exceeding expectations.” Ms. Cheeks is also quoted saying:

 “We had a fantastic turnout for the Capital Region Classic, and we heard a lot of positive feedback from players who have been looking for big poker tournaments in this area for years,”

Of course, this is the same Casino that keeps telling us how satisfied it is with revenues and attendance so far, despite averaging far below, and never yet meeting, the weekly average GRR it needs to make the lowered expectations it projected for its first year in operation.

. . use this short URL to share this post: tinyurl.com/RiversNadir

Rivers Casino hits a new low for revenues

 Schenectady’s Rivers Casino’s 12th week in operation generated its worst revenues figures so far: GRR $2,237,542. That was 11.6% lower than its prior worst week, which ended April 16. Slots dollars were the lowest yet. And, last week’s poker dollars were down from the prior week:

 

Despite revenues going down for the 8th time in 10 weeks, Rivers Casino’s Schenectady General Manager, Mary Cheeks, had this conversation with TU food columnist Steve Barnes:

 Q: How has Rivers performed in its first three months, and how does that compare to company projections?

A: I have no complaints. We’re still in ramp-up mode, so I’m fine with what we’re achieving so far, and we’re making changes as warranted.

Also:

Q: What do your demographics show about where Rivers patrons are coming from?

A: Primarily from the Capital Region, but surprisingly enough to me, as someone who’s been in this business for 27-plus years, is the large amount we have coming from beyond 120 miles. Since the casino’s hotel isn’t open yet, we’re assuming most of them are day-trippers, not lodgers.

Q: The casino operates 24 hours a day. Is there really enough business to warrant that?

A: Yes.

Q: For example, on average, how many patrons are on the gambling floor at 3 a.m. on a Monday or Tuesday?

A: I’d have to guess at least 300, but it’s not just for gambling. [restaurants and lounge also open]

  • Personal Note: Why am I not a journalist? I do not have the poker face to deal with statistics-free generalities or half-answers, much less the unanswered questions.

Also, have you wondered about the size of payouts at Rivers Casino Mohawk Harbor:

Q: What is the biggest largest payout at Rivers so far?

A.  It was $47,000 on a slot machine.

Q: What was the biggest at the Philadelphia and Pittsburgh casinos in the 5 years that you handled both of them?

A. In Pittsburgh, $150,000, ad $100,000 in Philadelphia.

Not In Our Park!

red check follow-up: Two resolutions passed by the City of Schenectady City Council on June 12, 2017, represent a compromise solution that we hope will sacrifice, at most, less than 0.1 acre of parkland at Riverside Park. See the posting “what the parkland alienation resolutions mean” (June 12, 2017), at suns along the Mohawk.

 Please Note (Monday, May 3, 2017): For a detailed summary of the May 2 informational meeting on the Project, see our post strong, thoughtful opposition to pump station in the park” (May 3, 2017).

Click this link to see the 25-page Presentation to the Stockade Association Board of the proposed North Ferry Pump Station Project, given on March 1, 2017, by architect Frank Gilmore and CHA’s lead engineer Mike Miller. And, click this link for treatment of the Pump Station in the May 2017 Stockade Spy.

Original Posting

   . . 

. . above: [L] the West Lawn of Riverside Park; [R] a rendering (from March 1 Presentation to SA Board) of a proposed pump station to be located on the West Lawn. . . For many more photo images, please seethe at-risk West Lawn of Riverside Park. .

below: a scene from the Stockade Association Memorial Day Picnic on the West Lawn (1970s; from “The Stockade – A Past Reclaimed,” Stockade Association)

WestLawn-MemDayPicnic

This afternoon, April 27, 2017, I sent substantially the following email message to the Stockade Historic District Yahoo! Email group:

Thank you, John [Samatulski], for saying aloud and in print what has to be said, and saying it so well. [click here for John’s email to the Stockade Yahoo Group] 

These points need to be made about the Stockade Association Board’s failure to report in a timely manner to the SA membership and the neighborhood on the character of the proposed Pump Station Project:

  1.  screen-shot-2017-04-18-at-2-08-05-pm When presented months ago with the Renderings of the New Pump Station Project there was NO OTHER PROPER RESPONSE FOR THE BOARD of an Association chartered to protect and preserve the residential nature of the Stockade, than to say “NOT IN OUR PARK” and “NOT BLOCKING the VIEWS of and from Stockade properties”. 
    1. westlawnfromesplanade That is even more imperative when the Objectives stated in the SA Constitution and By-Laws include “Development and improvement of the riverfront area”; Protection of historic properties [including their economic value]; and the Promotion of safety and the “aesthetic and physical improvement of the neighborhood”. 
    2. And, because SA has taken upon itself, and is seen by the broader community as having, the role of “Representation before any City or County governmental agency or component on matters affecting the neighborhood”, its failure to strongly oppose a proposal allows the Applicant, and City Hall, including the Mayor, and the planning and historic districts commissions (and their staffs), as well as the Media, to say with emphasis, “Even the Stockade does not oppose this!” [They literally did that with the Casino.]
  2. It does not take an engineer to know that a new pump station is totally inappropriate in Riverside Park, a small gem of a Park, with very limited lawn space. 
  3. A pump station project, and probably any project, that greatly blocks the viewing of the Stockade from any public space, especially rare views of our backyards, lawns and gardens, is totally inappropriate.*/
  4. newpumpstationcollge Our job — as residents, owners, and lovers of the Stockade, as well as the Board and the entire Association — is to say “NO! NOT IN OUR PARK! FIND ANOTHER SOLUTION.” The job of the City and its experts is to find a solution that meets the wastewater requirements of the City and State, or prove beyond any reasonable doubt the the new Station must swallow up part of the Park and destroy the Stockade viewshed.
  5. Delay This! By not alerting the neighborhood of the project proposals that were presented months ago to the Advisory Committee and then the SA Board, the Board has played into the hands of the City, its lawyers, and the project proponents, who will surely use a purported lack of time for complying with its agreement with the State as an excuse for not finding a suitable alternative. The Board members’ job was not to wait around for fine-tuning or the eventual unveiling by the proponents, so that they could say that comments were addressed, and a shrub or two was added or window glare reduced. Their job was to sound the alert that the quality of life in the Stockade was being threatened.
  6. An SA officer or Board Member, or candidate for those positions, who does not agree with one or more of the points above should declare their disagreement and give reasons.

You can find photos of the endangered West Lawn of Riverside Park, and images of the Renderings, at “suns along the Mohawk”, at http://tinyurl.com/WLawn . 

  • On a personal note, I must say that it is a relief to have others raising, in public and forcefully, issues that I have been addressing, and more. We cannot hope to protect the Stockade by playing (silent and minor) partners to so-called Partners in Progress at City Hall. Advocates need to advocate avidly to achieve their goals, and to be respected by politicians. And, we need to use all the available means of communication, such as email and the Stockade Association website, to keep the Stockade neighborhood informed ofnimportant matters.

Thanks for taking the time to consider these points. Please plan to attend the public presentation by CHA of its Pump Station Project on May 2, I hope we can be told the location and time ASAP.  at 7 PM at St. George’s. 

David at Cucumber Alley

______________________________________________

*/ Any Board or Association member who is asked to review a project in or impacting the Stockade neighborhood should have on the tip of his or her tongue or fingers reference to The Dept. of Environmental Conservation’s policy statement on Visual Impact Assessment [available at http://tinyurl.com/VisImpactDEC]. The DEC Visual Impact Policy Statement, among other things, says that a formal visual impact assessment is needed, with at least a line-of-site survey, whenever any component of a project can be seen from an historic district, such as the Stockade, with adequate mitigation measures taken to prevent any significant visual impact on or from the District.  [The Visual Impact Policy should also be posted at the Stockade Association’s very underutilized website.]

Even The Galesi Group and Rush Street Gaming stated, in their Application to the Casino Location Board for the Schenectady casino license, that a Visual Resource Assessment (VRA) in accordance with the NYSDEC Visual Assessment Policy was needed to identify the potential impact of the proposed development scenario on the visual character of surrounding neighborhoods. [Because they ignored the 80’ pylon tower in their own VRA and stressed the low-rise nature of the casino complex, they said it would have no impact on the Stockade.]

red check What’s So Special About Riverside Park?

Riverside Park is only 6 acres of land, stretched along 1/3rd of a mile of riverbank. In thinking about the impact on the Park, I hope decision-makers will keep in mind three sources of praise and caution from outside the Stockade:

  •  On January 26, 1998, a Resolution of the Schenectady City Council resolved, that Riverside Park “is recognized as a unique component of the [Stockade Historic] District and best serves residents and visitors as a quiet place to view the natural beauty of the Mohawk River.”  In addition, the Resolution stated that “to change its special nature would deprive visitors and disadvantage the homeowners who are the caretakers in this Historic District of national importance.”
  • With its combination of urban waterfront beauty and relative tranquility, Riverside Park was praised by the editor of Architect Forum as “probably the finest thing of its kind in America.” (Dec. 1961) 
  • In addition, and not surprisingly, the Mohawk River Waterfront Revitalization Plan for Schenectady County (2010) has noted that even recreational changes to the Park have been controversial. Therefore, the Plan notes (at 71): “Identifying the appropriate intensity of recreational use along the river has been a sensitive issue in the area of the residential Stockade neighborhood. Riverside Park provides a walking trail from which neighborhood residents view the river. The most active use relating to the river is the occasional fisherman. Thus, the nature and location of the Park “inhibits any significant expansion of use other than to improve it as a scenic overlook and to improve pedestrian and bicyclist access and connection to adjoining areas.” As a result, the only recommended projects in the Plan for Riverside Park involve making improvements in the park’s “current amenities,” connecting it to East Front Street Park and the Union Boathouse, better accommodating bicyclists through path improvements, and creating an alternative Bike-Hike trail. [Nope, nothing about losing a major piece of the Park for a modern, industrial-like project.]

Riverside Park and the proposed Pump Station

  Please see “the at-risk West Lawn of Riverside Park” at our sister site, “suns along the Mohawk”. Who is protecting our Park and neighborhood? More discussion coming soon [update (April 27, 2017) seeNot In Our Park!”].

. . This image of a snowman sentinel on the West Lawn, as seen from the rear of 29 1/2 Front Street, is now randomly used above as our header, alternating with our primary Snowmen at the Gates image.

. . a view of the West Lawn, Sunday morning, April 23, 2017 . . 

Poker strategy stumbles along the Mohawk (with updates)

 . . Rivers Casino Poker Room

 Despite good media coverage and optimism for River Casino’s roll-out of daily Poker Tournaments last week (see Times Union & Gazette), Schenectady’s Mohawk Harbor Casino posted record-low weekly revenue numbers for the second week in a row, with generated dollars down for the 7th time in 8 weeks. Total GGR for the week ending April 16, 2017 was merely $2,532,004, down  5.2% from the prior week’s nadir. Indeed, its Poker Table GRR during its first week of daily tournaments went down 12.9% from the prior week. And, slots GRR tumbled another 9.7%. Meanwhile, Capital Region competitor, Saratoga Casino and Hotel saw a 6.0% drop from its prior week’s Net Win numbers.

  •  For more information and discussion about revenues at the Mohawk Harbor Casino, see our posting on April 7, 2017, which has relevant charts and links; short URL: http://tinyurl.com/RiversDown . (Image at head of this blurb is  detail from C. M. Coolidge’s “A Friend in Need”.)

update (April 22, 2017, 12 AM): See “Income falls at Rivers, Saratoga: Gross revenues from gaming off more than 5% in week’s stretch” (Times Union, by Eric Anderson, April 22, 2017), which noted:

For Rivers, it’s the lowest weekly revenue figure since its opening in early February, and it came despite a series of poker tournaments during the week.

The poker room has been popular among casino customers, officials have said.

Observers have suggested that extensive roadwork on Erie Boulevard outside the casino may have played a part in the decline. . . .

The casinos haven’t released attendance figures, so it’s not clear how the restaurant and other food outlets have performed.

follow-up (April 28, 2017): Finally some good news for Rivers Casino Schenectady and those counting on its revenue stream. For the week ending April 23, 2017, GGR were $2,866,673, up 11.6% from last week’s lowest-ever figures. See the Official Weekly Report. A screen shot of the April numbers is immediately below this blurb. The Net Win figures up the road at Saratoga Casino were up 3.9%.

RiversRevs28Apr2017

revenues last week worst yet at Rivers Casino in Schenectady

 Rivers Casino’s 9th week of operation generated its worst week of revenues yet at Mohawk Harbor in Schenectady.  Revenues were down for the 6th time in 7 weeks, registering at $2,669,892, a reduction of 7.86% from the prior week’s dismal numbers. Its closest geographic competitor, Saratoga Casino & Hotel, saw a much smaller reduction last week of 1.5%. Here is a composite of the reported numbers on the Racing Commission site:

RiversRevsTo09Apr2017

For more information and discussion about revenues at the Mohawk Harbor Casino, see our posting on April 7, 2017, which has relevant charts and links; short URL: http://tinyurl.com/RiversDown .

print “His Station” by Coolidge

 The Schenectady Casino started daily poker tournaments last Monday, April 10, 2017, in the hope of increasing revenues. [see Gazette coverage, and Times Union coverage of the poker strategy] Those results will not be public until next Friday, April 21, 2017.

A shorter URL to use to share this posting is http://tinyurl.com/RiversRevsDown .

. . for discussion of projected revenues, check out what do those Casino revenue figures mean? (

Nicholaus Block building demolished amidst dissembling and dismay

. . click on the above collage for a larger version . .

detail from Howard Ohlhous photo

  Admirers of the Nicholaus Block building and advocates for preservation of our City’s fine old buildings were instantly filled with dread Friday afternoon, April 7,2017, when the Schenectady Police Department announced the immediate closing of the blocks alongside the Building. We were told that an engineering firm monitoring the structure had concluded that the building posed an immediate threat to public safety and could collapse. Sadly, we were right to fear the worst: by late that evening demolition had began on the grand structure, a beloved relic of the City’s German immigrant culture. There will be much finger-pointing and wringing of hands in Schenectady over this tragic episode in our history of preservation failures. But, I will try to keep this posting a eulogy for a structure that was a wonderful piece of Schenectady history for almost two centuries.

  • You can read the explanations given by our civic leaders in “Schenectady’s Nicholaus Building reduced to a memory: Overnight demolition brings down two centuries of history” (Albany Times Union, by Robert Downen, April 8, 2017); and “Schenectady’s Nicholaus Building: What happened? The iconic building was erected in 1820″ (Schenectady Daily Gazette, by Daniel Fitzsimmons, April 7, 2017). Suffice to say that Metroplex Chairman Ray Gillen and both the Mayor and Corporation Counsel of Schenectady say that they did everything they could do to save the building, including having engineers draw up a plan to stabilize it and offering to buy it, with no response from the owners, Viroj and Malinee Chompupong. As of the posting of this piece, the Chompupongs have not commented on the course of events since he building shifted and was evacuated in April 2016.

My research last night uncovered two excellent histories of the Nicholaus Block Building, and I recommend your taking the time to read them, rather than having me grab a few quotes from their narratives:

  1. An extensive piece at MyUpStateNYPhotos, originally posting on March 18, 2016, and updated yesterday, April 8, 2017. In addition to the building’s history, it has a good description of the problems that began in April 2016 during excavation for the Electric City Apartments complex next door, and ended in the demolition. It also notes that Nicholaus building suffered a large explosion in 1975, and the recent widow Mary Nicholaus considered demolition, but decided to repair it and continue.
  2.  A weblog post at the Grems-Doolittle Library Blog of the Schenectady County Historical Society, Good Food Without Frills”: Nicholaus Restaurant in Schenectady (May 14, 2014, by Library Volunteer Ann Eignor), which has photographs of both the exterior and interior of the building (including its famous bar; see image to the right from the Larry Hart Collection), as well as the Nicholaus family and restaurant staff, and a menu with German Specials, plus Loppa, a macaw parrot that was a longtime mascot at the Bar and was stuffed upon its demise and later donated to the Historical Society.

A Gazette article from 2014 gives a quick summary of the building’s history. It has the now-ironic headline Schenectady’s iconic structures remain amid era of change: One of the city’s best features is its diverse stock of buildings, old and new, crumbling and stately” (by Bethany Bump, Sept. 7, 2014). The youthful Ms. Bump tells us:

Nicholaus Block (266-268 State St.): Modern day Schenectadians know the brick building at the corner of Erie Boulevard and State Street as the home of Thai Thai Bistro (and before that, Bangkok Bistro). One of the few remaining buildings from the Erie Canal-era, it features bay windows and an ornamental roof engraved with fleurs-de-lis.

The Nicholaus Hotel opened here in 1901. It housed the German-themed Nicholaus Restaurant until 1975 and then Maurice’s Readi-Foods until 2004. A good part of the building was actually built in the late 1820s, soon after the Erie Canal came through, and was used for many years as a saloon.

 

coming soon, without the Nicholaus Block gracenote

The editor of this website moved to Schenectady in the apparently pre-modern year of 1988, and my first residence in Schenectady was on the block across the street from the Nicholaus Building, at Barney Square. That was the era of the popular luncheon spot Maurice’s Readi-Foods. I immediately admired the style of the old building, as I walked to my first local job, at Family Court. Since then, I have admired the beautiful bar and marveled at the Hofbrau-Haus murals that still graced the main dining room of the two subsequent Thai restaurants. I’ve continued to admire the building over the years, and am happy to say that I walked past it almost daily in the past month, on a new strolling-exercise regime. I am going to miss the Nicholaus Building, and surely will be mumbling about the bland modern building that will soon dominate that block.

 . . click this image to see County Tax Records for the Nicholaus Building; Note: The lot size is 34 ‘ by 114’; it was assessed at 2016 for $315,200. A short link for the above Tax Info is http://tinyurl.com/NicholausTax

The Nicholaus Building holds far more “personal” memories for the residents of Schenectady than most of our other lost structures. I hope its demise will inspire sharing those stories (for example, by leaving a comment to this webposting). Whether it will cause the populace to be more vigilant and more vocal about our desire to preserve the dwindling stock of fine old buildings is another matter. Will Mssrs. Gillen, McCarthy, Gardner, and other decision-makers who act as if all development is good development, and all developers civic-minded heroes, get our message? We need to raise our voices much higher.

. . as if it were never there . . 

Postscript: I originally planned to keep this posting eulogistically upbeat, but the Snowmen At the Gates part of my brain has to gnash its teeth a bit. Yesterday, I wrote at the Gazette website in a Comment:

The fate of the Nicholaus building represents the further loss of our trust in the leaders of our City and Metroplex. After so many half-truths, so much deception, and so many promises of preservation not kept, we never know if we can trust the information and excuses we are given for their actions and inaction. We keep hearing about a Renaissance in Downtown Schenectady, but it often feels like the Dark Ages.

Last week, our leaders held a party to congratulate themselves for bringing the Casino to Schenectady, giving themselves far too much credit, in my opinion. They also boasted about spending two years orchestrating a free shuttle from Downtown to the Casino, at taxpayer expense. Perhaps Metroplex and City Hall should have spent a bit more time trying to save the Nicholaus Building.  They might have, for example, pried some money from Rush Street Gaming, which has voluntarily given millions to other cities for community projects, to use to fix the Nicholaus stability issue. Or, a Metroplex loan or grant for the Nicholaus might have been offered, as such architecture is also a draw for downtown.

Now, we hear the City “will be seeking to recover the $168,000 cost of the demolition from the Chompupongs.” I’m scared to speculate on what will replace the Nicholaus Building in that wedge at the corner of Erie Blvd. and State Street. Perhaps, we will have a little bit of lovely green space, to compensate a bit for all of the green grounds originally promised for Mohawk Harbor, but now covered with parking lots and crowded structures.  If it is eventually replaced by another building, I hope we will not get yet another less-than-mediocre façade slapped at too-little-expense on an unremarkable structure. Is that too much to ask? In Schenectady, perhaps it is.

See Sara Foss’s opinion column, “The Nicholaus Building could have been saved: Sometimes buildings fall into disrepair … but that’s not what happened here” (Daily Gazette, April 11, 2017). “How it will all play out is anyone’s guess, but if you ask me there’s plenty of blame to go around. The big losers are the residents of Schenectady, who lost a valuable piece of history last week and still don’t know exactly why.” And, see: “Need answers in Nicholaus demolition: Serious questions remain about building’s destruction” (Daily Gazette, April 17, 2017), an OpEd piece by Gloria Kishton, chair of the Schenectady Heritage Foundation. Ms. Kiston wrote:

After the building was damaged, it was appropriate for Metroplex to hire a well-regarded engineering firm to provide plans for stabilizing the building.

But, they should also have paid for the repair work. Highbridge/Prime is receiving a $1.2 million Empire State Development grant through Gov. Andrew Cuomo’s Regional Economic Council.

These funds should have been used to repair the building.

It was outrageous and unjust to expect the owners to pay for repairing damage others caused, and to recoup the expense through insurance or litigation.

Adding insult to injury, the city of Schenectady intends to hand them the bill for the “emergency” demolition!

Now that the pesky Nicholaus Building is gone, Highbridge/Prime will proceed full speed ahead with its development.

. . share this post with this short URLhttp://tinyurl.com/NicholausGone

For More Downtown Dismay, see:

 . . Nicholaus what?

record decline at Rivers Casino Schenectady

 

For the fifth time in six weeks, week-to-week net revenues at Rivers Casino in Schenectady declined last week. [see the composite Report to the right; and the Official Weekly Report.] The 19.8% fall in revenues, down to $2,897,721, was the largest to date at the Casino, which opened February 8. While Rivers Schenectady saw a significant decline, revenues at nearby Saratoga Casino edged up 1.8% to a Net Win of $2,858,905. (Compare the figures reported March 31, 2017 by the Times Union’s Eric Anderson, here; and click here for our prior revenue coverage)

  •  Rivers also reported its Revenue Tax distributions for February 2017, showing that Schenectady County and the City of Schenectady each received $191,991 as their home community share of revenues paid to the State. The average daily GRR for the opening weeks in February were, however, significantly higher than the daily average since then. Nonetheless, the payment of $191,991 for the 22-day partial month of February would result in an annualized total of $3,185,305. When selling the Schenectady Casino to the Racing Commission and the public, Rush Street (and Mayor Gary McCarthy) projected payment of $4.1 million each (22% more) to the City and the County once revenues stabilized.

. . share this post with this short URLhttp://tinyurl.com/RiversDown

update (Saturday, April 8, 2017): The Schenectady Gazette covered revenue and tax distribution for February and march in an article in today’s paper, “Rivers Casino revenues up in March, still behind projectionsFigures from first full month of operation reported” (Brett Samuels, April 8, 2017). As I wrote in a Comment left at the online webpage for the story (which also suggests other issues needing coverage):

deskdudeThe real news is not that — OMG!! — revenues for a 31-day month were higher than for a 20-day month, but that revenues have been down five of the past six weeks. In fact, the decline last week was 19.8%, while Saratoga Casino had about a 2% increase.

The Gazette article does give a nice summary of the projection shortfall issue (while also suggesting reasons revenues might rise as the year progresses):

If the current pace of just over $200,000 per month continues, the city and county would take in about $2.3 million for 2017, falling well short of Rush Street Gaming’s projections submitted in its 2014 application with the Gaming Commission. . .

That economic impact analysis, which included five-year projections for gaming revenues, estimated the low-end gaming revenue for the city and county would be about $3.3 million each for the city and county.

In preparing its 2017 budget, Schenectady County used the low-end revenue estimate, $3.3 million, and pro-rated it to a March opening. That would leave the county expecting about $2.75 million in casino revenue this year.

why the 21-year-old rule at Rivers Casino?

 A number of people have left comments in the media this week, after learning that Rivers Casino at Mohawk Harbor was fined for allowing an underaged person — someone not yet 21 — to gamble. They wondered why the age for gambling at the casino isn’t 18, like at racinos and Indian casinos in the State. See “Underage gambler caught — but only after he won $1,300 on slot machinesSchenectady casino fined for letting him on the gambling floor” (Albany Times Union, by Paul Nelson, March 24, 2017); “State fines Rivers Casino $6k for underage-gambler” (Schenectady Daily Gazette, by Steven Cook, March 23, 2017). 

Here is the Comment I left at the Gazette explaining the legal situation and speculating on reasons:

 You’re right to be a little confused. Although the general age to gamble in New York State is 18, the Upstate New Gaming and Economic Development Act of 2013 added an exception for the commercial “destination” casinos approved by that statute. [click for the text of the Act] You must be 21 to gamble at any new facility licensed under the Act (Schenectady, Seneca Falls/Tyre, Tioga, and Monticello). Here’s the provision:

“§1332. Age for gaming participation 1. No person under the age at which a person is authorized to purchase and consume alcoholic beverages shall enter, or wager in, a licensed casino; provided, however, that such a person may enter a casino facility by way of passage to another room . . . “

Any winnings by a person prohibited under the above section must be forfeited and put into the State’s gaming revenues fund. Those under 21 are still allowed in other parts of the casino facility (restaurants, entertainment events, etc.), but not the actual “casino” rooms where the gambling is allowed.

“Racino” locations and Indian reservations may continue to allow 18 year-olds to gamble. Such facilities either send them into special under-21 areas or give them wristbands indicating they are under 21, so they won’t be served alcohol. Attempts by lawmakers and others to raise the gambling age at the racinos have gone nowhere in the State Legislature.

Like many laws that seem illogical, the 21-age limit was probably a political concession to get the Constitutional Amendment and the 2013 Act passed. My guess is that the existing racino locations (which do not have live table games) pressed hard to have this advantage over the new commercial casinos; it might also have been a way to get the votes of others who were anti-gambling in general.

 Many people are concerned that the younger you are when introduced to casino gambling the more likely it is that you will develop a gambling problem. The mixture of alcohol and gambling is even more worrisome. See our posting “what will the casino mean for Union College students?“, which discusses such issues, and our particular concern over Rush Street Gaming’s practice of targeting younger gamblers. And see “Rush Street takes aim at adolescents” (Sept. 9, 2014).

Note that the Pennsylvania Gaming Control Board has had to fine Rush Street’s Philadelphia casino, SugarHouse, numerous times for allowing underage gamblers and persons on the self-exclusion list to gamble. See details at our 2016 problem gambling post http://tinyurl.com/ProbGambSchdy

Rivers revenues down 4th straight week (with updates)

 Schenectady’s Rivers Casino at Mohawk Harbor faced its first major snow storm last week. The storm virtually closed the City down on Tuesday, March 14, but roads were serviceable the next day, with the nearby Stockade neighborhood (especially Front Street, which borders the casino complex) enjoying its quickest snow removal experience in memory. It is no surprise that Gross Gaming Revenues at Rivers Schenectady declined from the prior week’s record low figures, making it four straight weeks of falling GGR. In fact, the 1% reduction was less severe than I had expected, with $2,757,738 generated. The image at the head of this paragraph shows the weekly totals since Rivers opened in Schenectady on February 8.

The distribution of the revenues looks interesting to this non-expert observer:

  • slots revenues were down 17.6%, falling to $1,571,972
  • table game revenues were up 44.6%, soaring to $1,060,418

Did grandma decide to stay home, while the high-rollers were snowed in at Mohawk Harbor overnight the day of the storm?

. . you can find the weekly Rivers Casino revenue stats, usually refreshed on Friday morning, here: http://tinyurl.com/RiversSchdyRevs

. . see what do those Casino revenue figures mean? (

newspaper update (Monday, March 27, 2017): As of 1 PM today, the Gazette continues to avoid mentioning this streak of weekly revenue declines. Thankfully, the Times Union did report the revenue picture today, in “Area casinos had another down week” (by Eric Anderson, online on March 27, 2017). The TU notes that Saratoga Casino saw its third weekly decline, and “Rivers reported its fourth consecutive weekly decline”, noting “The most recent figures likely were depressed by a massive snowstorm that struck the Capital Region March 14.” TU also explained that even Rivers Casino’s best week so far does not meet the weekly average it would need to make their “stabilized” 2019 revenues projection. 

  • RiversSchdyRevs31Mar2017 update (March 31, 2017): For the week ending March 26, 2017, Schenectady’s Rivers Casino had its first increase in revenues in over a month. The total GRR, $3,613, 222, was the best take for the Casino since its first full week, with a 31% increase over the prior week’s dismal GRR, which was the Casino’s lowest ever. As you can see from the composite below of the Rivers Casino Total Gross Gaming Revenues Report, there were significant increases in slots (16%) and table games (57%!), with poker revenues up almost 9%.

RiversCasinoRevs31Mar2017

As expected, the Schenectady Gazette never reported that Rivers Casino had four straight weeks of GRR decline, but I’m betting this increase will be up soon at their website and in Saturday’s hardcopy newspaper.


LadyBug14Mar2017 p.s.
“Walkable Schenectady”?  Our Mayor likes to brag about our “walkable City”, as do the gents at Metroplex. A week after the mid-March snow storm ended, many crosswalks in downtown Schenectady were clogged at the curb with snow, and many sidewalks in downtown Schenectady were left unshoveled. The snow had stopped Wednesday morning, but on Saturday evening, March 18, I made the mistake of trying to walk from my Stockade home up Front Street, to Mohawk Harbor and then up Erie Blvd. I spent a lot of time precariously switching from sidewalk to street.

 Front St. at N. Church. . DSCF2601

I was particularly surprised at how difficult it was to be on foot near the Casino.

DSCF2589 . . [L] this is what confronted you on foot at the intersection of Front Street and Rush Street, if you wanted to head toward Erie Boulevard.

DSCF2595 . . DSCF2597 . . Once at the rotary at Rush St. and Erie Blvd., you had some snow climbing to do to get to the Nott St. side of the rotary, with an unshovelled sidewalk once across the street.

DSCF2599-001 . . [L] Most daunting was trying to head south on Erie Boulevard on foot. Once past the overhead walkway, virtually all of the sidewalk had the full 19 inches of snow, all the way to Stewart’s, at Green Street. If a business had shoveled at its driveway, the curb at the intersection and crosswalk was piled even higher. I was left to walking at sunset on the side of a very busy road, with fast traffic and lots of puddles. Not pedestrian-friendly, Mr. Mayor. Not a good introduction to visitors on the ease of getting from Mohawk Harbor to our much-touted downtown Renaissance.

another big drop in Casino revenues

 The numbers are out for the fourth full week (ending March 12, 2017) of revenues generated at Rivers Casino at Mohawk Harbor in Schenectady: just under $2.8 million; the worst week yet; and no snow storm to blame.

  • a 21% drop from the first full week
  • 9.9% less than last week’s numbers, which were down 11% from the prior week, and were never reported by the Gazette

  • The weekly average needs to be $4.3M to reach the $223 million annual gaming revenue number so often repeated by Mayor McCarthy, which is the projection for the “stabilized” 2019. So far, the four full weeks have averaged about $3.2 million, which won’t even generate the significantly lower first-year projections of the Casino and County.

  • Today’s Gazette tells us there are changes coming to Rivers Casino due to patron requests and frustrations. Changes in works at Rivers Casino, including poker tournaments: Some customers have expressed frustration”, by Brett Samuels, March 17, 2017). It would have been a nice place to mention the slide in revenues, rather than: “[I]t has continued to net at least $3 million per week in gaming revenue and pulled in $10.8 million in its first month from slots and table games after payouts.”

On St. Patrick’s day, we must ask our good boyo Mayor Gary McCarthy if anyone but leprechauns believes in magic pots of gold?

 . . from Hallmark

10 P.M. Update: The Times Union has covered the newest revenue figures, in the online article “Revenues drop again at Rivers Casino in Schenectady” (Eric Anderson, March 17, 2017). The piece gives some context for the numbers:

So far, the casino hasn’t reached the $4.28 million weekly average figure that was projected in an economic impact study by New Orleans-based The Innovation Group.

But that figure was for 2019, and by then the casino hotel should be open and construction at the neighboring Mohawk Harbors completed.

It’s also not clear whether bus tours to the casino have yet started. That also can be a lucrative source of revenues.

. . find the weekly Rivers Casino revenue stats here: http://tinyurl.com/RiversSchdyRevs

. . and, see our post: “what do those Casino revenue figures mean” (March 5, 2017)

a wicked concert cartel?

 An article in today’s Schenectady Daily Gazette suggests that fears we expressed and explained in 2014, here and there, were warranted as to the likely anticompetitive and anti-consumer nature of the so-called Fair Game Theater Coalition. See “Rivers Casino, Proctors team up for entertainment: ‘In no way, shape or form do I feel like we’re competitors” (Daily Gazette, by Brett Samuels, A1, March 8, 2017). The article highlights the lack of rivalry and the depth of cooperation between Proctors and Rivers Casino, and the importance of the Upstate Theatre Coalition for a Fair Game in nurturing this chummy state of affairs between entities that clearly are two of the most prominent members of the live-entertainment and leisure activity market in Schenectady and the Capital Region.

Ironically, Proctors CEO Philip Morris seems to be bragging about the very kinds of restrictions that we warned about back in 2014, when we said:

feelin’ blue

 “[T]he “Fair Game” Coalition (a/k/a The Concert Cartel) may end up achieving joint booking and venue-size limitations, and a revenue-sharing agreement with each of the 3 or 4 winning casinos.  That could mean the equivalent of territorial exclusivity, and joint booking and ticket pricing, for all/each of FairGame members, across all of the eastern portion of Upstate New York, through midState locations such as Utica and Syracuse, and apparently stretching to their members in the Western end of the State.”

On the one hand, Proctors CEO Philip Morris asserts in the Gazette article that Proctors and Rivers Casino are not competitors (a contention that would clearly by rejected by objective economists and antitrust experts); on the other hand, he makes it clear that the Fair Game theater coalition is protecting its members from casino competition across Upstate New York. According to the Gazette:

Without the Fair Game agreement, Morris said, he likely wouldn’t be feeling quite as optimistic about the relationship between the two entertainment entities moving forward.

slicingthepie “It set the stage for a collaboration that probably was critical for any next step,” Morris said. “I think if there was no Fair Game, we probably wouldn’t be doing the booking, and we might be in competitive mode.”

Casino applicants were encouraged under the Act authorizing new commercial casinos to enter into arrangements with local entertainment venues, demonstrating that the local casino “actively supports the mission and the operation of the impacted entertainment venues.” [§1320(3)(2)(D)]. The members of the Fair Game coalition were expected to help their members and the applicants gather necessary information that would facilitate such agreements. Coalition members were not given the freedom to eliminate competition among themselves, nor to prevent competition from all casinos within a large (seemingly unlimited) region. Consumers will surely lose out, with fewer choices and higher prices.

trust-buster needed

In 2014, I asked the New York Attorney General’s Antitrust Bureau to take a look at the operation of Fair Game. Although they replied to me that a preliminary investigation was being undertaken, no further communications were received from the AG suggesting that Fair Game raised antitrust concerns. In 2017, the casinos are in operation in Tyre (near Syracuse), Tioga Downs (near Binghamton), and Schenectady. The AG can now see in more detail and in action the restrictions adopted by Fair Game’s group of the largest Upstate entertainment venues and by each of the new casinos. I hope the Antitrust Bureau will therefore take a close look this time. Restrictions that unnecessarily limit competition between and among the theater-arena venues and the new casinos should be barred, allowing consumers the broadest array of entertainment and location options, and hopefully the best value for their entertainment dollars.

The creation of the Fair Game theater coalition, with its potential to limit competition from casinos and other major venues, transformed Proctors CEO from a strong opponent of having a casino in town, to a fervent casino supporter. Does any one believe this cooperation will result in more entertainment choices and lower ticket prices (beyond token gimmicks and give-aways) for the people of our community? Moreover, will lesser-known entertainment venues and options benefit, or just lose market share to the Big Guys in Town? Did our Legislature really mean to greatly reduce competition across the state between and among casinos and major entertainment venues, when it tried to reassure theaters like Proctors that they would not be run out of business if a casino came to town?

. . share this post with a shorter URL: http://tinyurl.com/WickedCartel

what do those Casino revenue figures mean?

OPEN LETTER to the SCHENECTADY GAZETTE and Other Capital Region Media

. . and see March 10 update below . .

. . and “another big drop in Casino revenues” (March 17, 2017)

Dear Schenectady Gazette and Local Media editors and reporters:

ch6casinorev We need some context, please, when you give us weekly (and soon, monthly) numbers about the gaming revenue generated at Rivers Casino at Mohawk Harbor. [E.g., Gazette, TU, WRGB-Ch6News] Gaming revenue numbers are virtually meaningless without background information, such as typical patterns for casino opening revenues, and this Casino’s own projections for annual revenues. This is especially true because Rush Street Gaming will be paying its gaming taxes based totally on the net gaming revenue figures. That is unlike other casinos where minimum annual local contributions have been promised (including Rivers Casino in Pittsburgh, which has consistently fallen short of its projections, and used the shortfall as a reason to request reduced real estate assessment).

  •  images-7Reportage on the second week’s Casino revenue is a prime example of numbers without context. Neither the Casino’s projected revenue nor industry expectations or patterns in the opening weeks of a casino were mentioned. Moreover, the Gazette headline touted, “Report: Rivers Casino sees revenue boost” (Feb. 27, 2017), with the article stating that there was a 24% increase in gross gaming revenue ($33.8 million) and a 16% boost in net revenue ($3.5 million) for the first full week of operation. While it mentioned the snowstorm in Schenectady during the first week, there was no indication of how many days were counted in the first week’s numbers, which included a “soft” by-invitation opening day before the official opening. Nor was there any discussion of the significance of a 16% increase for a full 7-day week, which has 14.28% more days than a 6-day week, and 29.5% more days than a 5-day week. Instead, a prepared statement by casino officials is quoted: “We are pleased with the performance of Rivers Casino & Resort Schenectady during our first full week of operation.”

The Gazette and Mayor Gary McCarthy have consistently used the number of $223 million dollars in annual net gaming revenues for the Schenectady Casino, with a resulting payment of $4.1 million annually each to the City and to the County. $223 million is, on average over a 52-week year, about $4.3 million per week. So far, Rivers Casino Schenectady has posted net gaming revenue of of $3.55M and $3.47M for its first two full weeks of operation, after an opening short week of $3M. 

abacusThe average revenues for Rivers Casino’s first two full weeks, $3.51M, would result in annual net gaming revenues of $183M dollars upon which to calculate its State gaming tax bill. That is 18% lower than the $223M projection, and would mean a significant shortfall for local tax coffers.

 How well do casinos usually do during their opening weeks? I’ve been hoping the Gazette would tell us.


sleuth Last night, I spent about 30 minutes Googling casino opening revenues, and looking at the first two examples that came up, I discovered that the new mega-casino project MGM National Harbor, located on the Potomac River in the D.C. suburbs of Maryland, generated about $49M in gaming revenues in its first month (January 2017). Maryland’s racing commission hired two consultants to project annual revenues for National Harbor. One predicted $512M and the other predicted $575M. Annualized, National Harbor’s first month revenues are about $576 million dollars, which is on track to meet even the higher projection.

plungegraphsmY

trends?

 Similarly, in July 2015, Plainridge Park Casino near Boston generated $18.1 million in its first month of operation. Plainridge predicted an annual gaming revenue of $200 million. Annualized, $18.1M would total $217.2M, a nice 8% increase over the $200M projection. (see MassLive, Aug. 15, 2015) Note, however, that early success does not necessarily mean a casino will continue to generate comparable numbers.  Plainridge Park fell far short of its projections for the entire year.

 Shouldn’t the Gazette help its readers (and our Pollyanna-like political and business leaders) understand how Rivers Casino is doing compared to its projections, and historic revenue numbers for similar casinos? If Schenectady’s “Newspaper of Record” does not do that, I hope other media members less attached to Rivers Casino (and City Hall, Galesi Group, and Metroplex) will do some investigation, or at least basic research.

 In contrast to the Gazette Tilt we have pointed out frequently at this website (recently, as to likely incidents of crime), the Albany Times Union has taken the lead over the past couple of years on many topics relating to the casino and Mohawk Harbor, Schenectady’s City Hall, PILOTS, etc. I hope it will continue to play that journalistic role, and perhaps spark some responsible journalism and competitive motivation from the Gazette and other media outlets.

. . share this post with this short URLhttp://tinyurl.com/CasinoOpenRevs

  • P.S. What about attendance numbers? How is Rivers Casino doing compared to its projection of 7500 weekday and 10,000 weekend visitors? In July 2014, the TU editorial board was a bit skeptical of those numbers. Follow-up would be nice, as patterns emerge with more moderate weather.

newspaper update (March 10, 2017): This evening, the Gazette posted an article online titled “How Rivers Casino’s 1st month revenues compare to projections“, by Brett Samuels, with a comparison of Rivers Casino’s February revenues and tax payments, covering 20 days, with its first-year projections.  After noting that “the city of Schenectady and Schenectady county received $191,991 each,” for the first twenty days, the article points out that:

“[I]f the city and county each received $275,000 per month in gaming revenue for the next 10 months, it would total about $2.9 million in gaming revenue each for all of 2017, falling short of the casino’s own initial projections.”

. . . “In preparing its 2017 budget, Schenectady County used the low-end revenue estimate, $3.3 million, and pro-rated it to a March opening. That would leave the county expecting about $2.75 million in casino revenue this year.”

The article also points out that “There are a few factors still at play that could influence casino revenues the rest of the year,” and says that the opening of the casino’s luxury hotel, and completion of luxury apartments, and office and retail space this summer will draw more people to the site. [We continue to wonder just who wants a luxury apartment abutting a homely and hectic casino site.]

Here is a screenshot we put together from the Rivers Casino revenues document at the NYS Racing Commission, showing its revenues through its third full week,ending March 5, 2017. Its third full week showed a 10%+  net gaming revenue decline.

RiversCasino05Mar2017Revs

  • Late each Friday afternoon, you should be able to see the latest figures from the prior week, on the Racing Commission site, at this link: http://tinyurl.com/RiversSchdyRevs.

plungegraphsm follow-up (March 12, 2017, 3 PM): As of this point in time, the Gazette has not reported the significant drop in gambling revenue at Rivers Casino in its third full week of operation, which is mentioned immediately above and shown in the screenshot. The Gazette did report on the weekly revenue reports to the Racing Commission each of the past three weeks. Friday evening at about 8 PM, the Times Union posted the numbers, in a brief staff report headlined “Double-digit revenue decline at casino, racino” (March 10, 2017), saying “Rivers gross gaming revenue fell nearly 11 percent to $3,094,804 in the week ending March 5 from $3,472,354 a week earlier. At Saratoga, the net win fell nearly 14 percent to $2,845,411 in the week ending March 4 from $3,302,242 the week before.”

a good start for Problem Gambling Awareness Month 2017

npgam_logo_h_cmyk_arrow-colorcorrected-v2 

  • update: The first community forum presentation on problem gambling of the NYS Responsible Play Partnership will be held Wednesday, March 22, 2017, at Elston Hall, at Schenectady County Community College, at 5 PM. It is free and open to the public. Please be there to show your support for not only more problem gambling treatment resources, but also for education and outreach resources to help deter problem gambling from ever getting to the stage where professional intervention is needed.

One year ago, we posted “Will problem gambling awareness month inspire action?” (March 2, 2016), posing the question: What are our public health officials and other local political and community leaders doing to combat problem gambling?

That 2016 Awareness Month post argued that:

[O]nly organized programs specifically focused on problem gambling prevention, education, and treatment, with ongoing outreach activities, can hope to address the effects that a casino in Schenectady is likely to have on our community. With Rivers Casino at Mohawk Harbor now scheduled to open in a year, such programs are needed ASAP and must especially target vulnerable groups, such as aging adults, low-income residents, and youth. [To see the full post, with its discussion, links, etc., click this short URL: http://tinyurl.com/ProbGambSchdy]

Education-Prevention Trumps Treatment. Our hope was that community education and prevention activities might be in operation prior to the Casino’s opening, in order to help inoculate the population of Schenectady against the anticipated tsunami of publicity for the Rivers Casino at Mohawk Harbor, with its resulting Casino Fever.  As expected, in addition to the Casino’s own advertising and promotions, publicity for the Casino has included government and media cheerleading, as casino “gaming” is promoted as a normal, glamorous, and even civic-spirited activity. Our goal was, and is, not to urge the general public to avoid or boycott the Casino, but instead to help create an informed attitude toward casino gambling that places it into the low-risk category of casual entertainment and recreation, rather than an acceptable high-risk habit leading down the path of problem, disordered, or pathological gambling.  Unfortunately, in the past year, our local government leaders have not stepped forward to put Problem Gambling Awareness [“PGA”] programs into place in time to inoculate our community from casino fever.

nyrpplogoNonetheless, rather than point fingers or speculate on motives, I am happy to say there has been important activity at the State level that promises to bring significant PGA information to Schenectady, as well as other New York communities “hosting” casino, racino and similar “gaming” facilities. Those activities were announced in an email sent on February 28, 2017, by New York’s Responsible Play Partnership [formed in 2013], recognizing March as Problem Gambling Awareness Month. The text of the email can be found at the bottom of this posting. [See “What state’s doing to help you gamble responsiblyNew Yorkers can now ban themselves from facilities” (Schenectady Daily Gazette, by Brett Samuels, March 1, 2017)] The full text of the email can be found at the end of this posting.

probgam-pg2016-1920x1080-banners_nat_final . .  click on this thumbnail for the full Awareness Month poster:

The opening paragraphs of the NYRPP announcement, states:

New York’s Responsible Play Partnership (RPP) – consisting of the New York State Gaming Commission, the New York State Office on Alcohol and Substance Abuse Services (OASAS) and the New York Council on Problem Gambling – today announced a series of initiatives in recognition of March as National Problem Gambling Awareness Month.

The Commission also launched its statewide self-exclusion program … [which] allows problem gamblers to ban themselves from all casinos operating in New York State

The RPP’s plans for March include visiting newly opened casinos to review the operators’ efforts to promote responsible gaming practices, followed by public meetings in the communities hosting the casinos to educate the public on the resources available for those who need help.

hopeline-text-square-purple-300x300 The RPP will also foster awareness through a focused social media campaign, conversation-driving signage at all gaming facilities across the State and development of a new public service announcement reminding New Yorkers that the OASAS HOPELINE (1-877-8HOPE-NY/TEXT HOPENY) exists to address all forms of addiction – including gambling. Finally, for the first time ever, the New York Lottery will feature responsible gaming messaging as part of its daily televised drawings.

  • Dates, times and locations for the public meetings will be announced in the near future. The Gazette reported, “A meeting is expected to be held in Schenectady in late March, though official details have not yet been announced.” We will list the information about the Schenectady meeting(s) when available.
  • LagoLogoB&W According to the Gazette, “Mary Cheeks, general manager at Schenectady’s Rivers Casino & Resort, previously said the business’ policies to promote responsible gaming include employee education and training, self-exclusion policies and listing the state’s addiction help hotline on advertisements and social media posts.” We believe that Rivers Casino, like del Lago in Tyre (which is paying for their County to hire two problem gambling counselors, or for treatment and one for prevention), should do much more to help the community learn about problem gambling. The Racing Commission has noted that fees and tax revenues (such as the annual fee on each slot machine) should not be counted as the casino fulfilling its obligation to mitigate such issues in its host community.

Statewide Self-Exclusion. RPP’s Awareness Month email (text below) stresses the new statewide nature of its Self-exclusion program, noting it is “the broadest self-exclusion program in the nation”, and stating:

The statewide policy closes a decades-old regulatory loophole in New York that made it possible for video lottery and casino patrons to voluntarily ban themselves from one gaming property only to continue playing at a neighboring facility unabated.

crimescene-casino The wisdom of a statewide ban is not obvious, and this site will delve further into the notion of a gambler being forced to self-exclude from every facility in the state. Will such a ban discourage many persons from entering the self-exclusion program, which in fact subjects the signer to criminal charges for entering the forbidden facilities regulated by the Racing Commission?  For a large portion of at-risk gamblers, it is proximity that creates their biggest danger. Why wouldn’t a geographic ban within a reasonable radius of the signer’s primary casino be effective? Why make it impossible for the signer, for example, to vacation with family or friends anywhere in the State and spend one evening at a casino? Would’t signing become an embarrassing stigma?

probgam-pgam2017toolkitlogoHave the Conversation.  A very important part of RPP’s Problem Gambling Awareness Month program for 2017 is its request that every New Yorker have a problem gambling conversation with at least one person in March. We will have much more to say on the Have the Conversation project, but for now please note that the New York Problem Gambling Council has put together a very useful Toolkit, with helpful one-page Action Sheets for Youth, Parents, Senior Citizen Caregivers, School Personnel, and School Administrators.  Click on the Toolkit logo to the right of this paragraph, or go to http://tinyurl.com/HTCtoolkit, to see and download the Have the Conversation Toolkit.

After a year of disappointment over the lack of public programs in Schenectady County relating to prevention, education and treatment for Problem Gambling, I am looking forward to see the RPP’s programs in action and resources in wide circulation.

. . share this posting with this short URL: http://tinyurl.com/2017PGAMschdy

The email message explaining NY Responsible Play Partnership’s efforts this month to increase Problem Gambling Awareness is immediately below.

Continue reading

prostitutes help open Rivers Casino (as expected)

casinowalkers

expected by Rush Street?

 Schenectady Mayor Gary McCarthy disparaged Casino “naysayers” the day our Rivers Casino opened last week, proclaiming an accomplishment that will surely be the core of his legacy. In reality, though, the naysayers the past couple of years have actually been the most vocal supporters of the Casino. In all their public statements, Casino Cheerleaders have been in denial of any negative effects likely to result from the coming of gaming to CaSinectady. An influx of crimes, such as prostitution, was simply not a worry for the Mayor.

rushstreetoncrimech6 Furthermore, Rush Street Gaming continues to issue statements claiming that crime has gone down in other cities were it operates casinos. And, local media continues to offer no rebuttal or cross-examination of such statements. See, for example, the screenshot to the left of a printed statement given by Rush Street to CBSNews6 reporter Hubert Wiggins, in a segment called “Questions asked about new casino’s impact on safety” (Jan. 23, 2017). The segment downplayed any safety problems, and never bothered to ask casino opponents in Schenectady for input, although we have researched and written about the crime issue for almost three years.

Nonetheless, see our posting “City Hall Is Wrong about Crime Going Down in Phila. and Pitts. Casinos” (Oct. 9, 2015), which notes that the Philadelphia casino crime study noted by Rush Street did not cover prostitution or DUI. It was no surprise to us naysayers, therefore, that an alleged “sexual tryst plan” was involved in an arrest the first weekend of Rivers Casino, at its premier restaurant, Duke’s Steakhouse. See Paul Nelson’s Times Union article, Alleged sex tryst plan leads to Schenectady casino arrests: Police say fight stemmed from sexual suggestion,” which was posted online Wednesday evening, February 15, 2017.  To our pleasant surprise, the Gazette also reported on the arrests, and a few others, in its Friday edition, “Argument over group sex leads to arrests at casino: Among a half-dozen charged since last week’s opening” (Steven Cook, Feb. 18, 2017).

  • cbs6wigginscrime

    Hubert Wiggins, WRGB

     Media competition is a good thing, and we need more of it. Let’s hope that the Albany Times Union continues to cover aspects of Schenectady news that are often avoided by the Gazette, which too often seems to see itself as a “friend” and “partner” of local business and government leaders first, and a servant of the public with the responsibilities of a newspaper of record, second.  See our posting rigging the news: the Gazette and the Schenectady Casino” (Dec. 16, 2014). The Gazette’s media partner CBSNews6 also needs to be willing to step up and treat the Casino like any other member of the business community, especially because it is also the recipient of so much government largesse.

  • CasinoCrimeWTEN03Mar2017 Crime Follow-up: News10 (WTEN] had a segment on Rivers Casino crime on March 3, 2017, that raises more questions than it answers. [opening screenshot at the left of this paragraph] According to the piece, by reporter Ayla Ferrone, SPD Sgt. Matt Dearing says that since the casino opened there have been 136 calls but only about 40 of those have been legitimate. Ferrone opines that “Even though the number of times they’ve responded here sounds high, it’s actually pretty normal,” and notes “Sgt. Matt Dearing . . . says anytime there is a major development within any city, crime is sure to increase.”
    • Dearing is quoted as to the 40 “legitimate“ calls, saying they were “Accidents, larcenies from vehicles potentially, unruly customers, and medical calls.”
    • We are also told by Sgt. Dearing that “We do have officers that are dedicated there during certain times to deal with any issue that potentially may arise.”
    • My QQ, in addition to wanting a better breakdown of the types of crimes:
       1) where were the accidents (inside the casino compound or at the rotary?), and how severe? 2) was DUI or DWAI involved? 3) where were the larcenies? 4) were the figures only for calls specifically to Rivers Casino or Mohawk Harbor, as opposed to its vicinity, which includes residential neighborhoods? 5) Is News10 or Sgt. Dearing saying, in effect, “Crime did go up, but you’d expect it would, so the increase is normal”? 6) How did crime stats for the entire City during the relative period compare with prior years? Were these crimes in addition to what we would have expected without the casino, or were they displaced from other parts of the City due to the lure of the Casino?

Back to the So-Called Aborted Tryst. Note that the couple from Massachusetts arrested early last Sunday morning at the Casino insists that there was never a sexual arrangement or talk of sex. See “Mass. couple offers their account of casino fightNo sex arrangement was made, they say” (Gazette, Steven Cook, Feb. 18, 2017; and “Woman disputes police account of casino encounter for group sex”, Times Union, by Paul Nelson, Feb. 22, 207). The couple says that a young woman approached them at the bar at Duke’s and gave them a card about modeling.  They were then “bum-rushed” by at least two women, and perhaps another person, as they were leaving the restaurant. The 21-year old woman from Troy who was arrested after throwing a glass in the bar, apparently gave a false phone number to the police.

crimescene-casino The Massachusetts couple is hoping to get surveillance video to show what actually happened. Either way, it seems clear that there was some sort of organized prostitution activity inside the Casino on its first weekend of business, rather than merely one “working girl” hoping for a payday. That may indeed be the type of local business activity most likely to expand thanks to the opening of Rivers Casino. Let’s see if the Schenectady Police Department, State Police, and the Casino’s private security find a solution to this not-unanticipated problem. Of course, the potential for meeting attractive and available sex partners at the Casino might draw a certain kind of customer who otherwise wouldn’t bother heading over to Mohawk Harbor. (See a detail from Rush Street’s third rendition of the Casino entrance at the top of this posting, which shows pedestrians who are clearly not representative of the Casino’s real customers.) 

casinocrimelogo follow-up (Feb. 20, 2017): Times Union columnist Chris Churchill can’t quite figure out the meaning of the Alleged Tryst Arrest. (see “Romping and rolling at the Schenectady casino“, Feb. 21, 2017). Indeed this Tryst episode might not be as important in the long run as the issue of Rivers Casino being able and willing to adequately police entry to its gaming areas by underage persons, a problem that apparently led to another arrest noted in the Gazette’s first tryst arrest article. In our piece last March on Problem Gambling, we said:

[N]ote the Pennsylvania Gaming Control Board press release of May 23, 2012, announcing that SugarHouse [owned by Rush Street under the corporate name HSP Gaming, L.P.] was fined $70,000 “for seven instances where underage individuals [ranging in age from 17 to 20] engaged in gaming.”

The proximity from Union College’s largest dormitory (two blocks) and its entire campus (four blocks), as well as SCCC (a prime partner with the casino, it seems), makes the underage gambling issue more important here than it probably is at most casinos.  In 2015, Trump’s Taj Casino in Atlanta issued a public statement against a college putting a campus next door:

“The facts are that our company does not think having a college next door to the Taj is good for our company. Having kids under 21 who will attempt to gain entry to the casino and engage in activities reserved for those only 21 and older would create numerous problems we do not want, and could damage the Taj’s ability to attract customers and regain its financial health. You do not see a college on the Las Vegas strip. “

casino-PropsHopsRules See our posting “What will the casino mean for Union College students” for related topics, including Rush Street targeting young gamblers, with tactics like dumbing down table games. Click on the thumbnail to the left for a glimpse at its Props & Hops promotion at SugarHouse, which simplifies craps. (See SugarHouse Press Release, April 30, 2014; and “Sugarhouse Develops a New, Simplified Craps Game For Younger Players“, CBS6 Philadelphia, May 1, 2014; SugarHouse Props & Hops Brochure.)

. . use this short URL to share this post: http://tinyurl.com/SchdyCasinoPros

where did this unattractive Schenectady casino design come from?

 

casinodesignactual

Despite weeks of fawning coverage and cheerleading by local broadcast, internet, and print media, I have yet to hear or read any praise for the exterior design of Rivers Casino at Mohawk Harbor in Schenectady. Nor any questions on why it looks so different from the design we thought we were getting in July 2015. And, unless you count this website, no one in the media has attempted as of yet to put a name to the “style” of the façade presented by Rivers Casino to the world, which is very likely to become the new image of Schenectady, and which for my money doesn’t meet the aesthetic standards of a Sonic Drive-in.

. . share this post with this short URL: http://tinyurl.com/homelycasino

How did we get this sad result? Casino owner and developer Rush Street Gaming presented three renditions showing a front view of its proposed casino from a perspective similar to the actual casino shown above:

casino-renderresort . . 1st version

CasinoSign-4Jun2015 . . 2nd version

riversrender3 . . 3rd version

The public and media made it clear when the second version was unveiled in early June 2015 that they cared very much about the design of the Schenectady casino and disliked the retro-brick-factory look of the 2nd design. Despite this interest, Rush Street’s next attempt, released on July 9, 2015, presented only two details of a modern design meant to point to Schenectady’s future — the above partial view of the front entryway and a view of the rear.  The disappointed reaction of the Gazette‘s editorial staff was titled “Casino design is better, but public needs to see more” (Sunday Gazette, p. D2, July 12, 2015; no longer online). The editorial began, “You have to give them credit. It’s better than the last version. But is it enough?” The conclusion was a loud “no”:

The drawings released Thursday show little of the building other than the entrance and one shot from the river. They also don’t show the perspective of the pylon sign in comparison to the new structure.

It might seem nit-picky to want to see more. But as we’ve said before, we’re all going to have to live with this thing for a few decades, and we want to make sure it’s going to look like what they say it’s going to look like.

If the public is going to offer intelligent comments to the Planning Commission, they need to see more of the new design so they have a more complete perspective. In the 10 days leading up to next Wednesday’s Planning Commission meeting, we urge casino developers to post more renderings of the new redesign online and share them with the community. . . .

The more information the people have about the project, the more transparency government affords them, the more likely it is that they will accept it.

That should be the goal of the developers, and most importantly, the city’s government.

Despite that sensible plea, Rush Street offered no further rendering for the public or the Planning Commission, and the Commission irresponsibly failed to demand more. The next view of the proposed 3rd design was merely a small group of Power Point sketches projected on a screen at the special Site Plan Meeting of the Commission, on July 22, 2015. I photographed the colorized sketch below of the 300-foot-long front of the Casino structure from the back of the room with a small camera (thus the lack of focus):

casinodesign3sp

The public never got to see more prior to or after the Special Site Plan Meeting. A visit to the Planning Office on July 24, 2015 revealed there were no hardcopies of the Power Point presentation submitted for the Commissioners to review prior to or at the Meeting, nor for the public to see.  (See our posting, “casino site plan approved” (July 23, 2015)

This screen shot and text from the Gazette articleSchenectady casino design gets green light” on July 22, 2015, shows what they and we had believed would be the final design:

designgreenlightgaz14apr2016 “The façade of the casino has shifted from an industrial look with brown bricks to a more contemporary look with white-gray coloring and metal panels.

“Chicago casino operator Rush Street Gaming went back to the drawing board after being hit with negative comments from the public about the initial [second] design plan. Several of the commissioners said they like the new design better than previous renderings released to the public. Klai Juba Wald Architects of Las Vegas designed the casino.”

As the Gazette opinion editor stated on July 12, 2015, “we want to make sure it’s going to look like what they say it’s going to look like”. Well, obviously, thanks to the back-bending Snowmen on the Planning Commission, we got something else. The City’s chief planner, Christine Primiano, wrote an email three days ago, assuring me that “yes all changes to the July 2015 design were approved during the April 13th, 2016 review. It was for amended site plan review and final sign approval.”

casinosignagecover The approval was, indeed, done in the guise of the Commission approving the final signage plan for the Casino, which was primarily publicized for no longer including an 80′ pylon structure and reducing the overall signage on the casino and its hotel. There was no mention of the drastically altered entryway wall, which jettisons the 3rd design’s “more contemporary look with white-gray coloring and metal panels.” In actuality, the large LCD screens that were going to be placed on the pylon sign, were basically affixed to the entry façade of the Schenectady casino. And, no, there were no renderings of the Casino’s new look.

casinoentrysignage-mar2016 Thus, in April 2016, the only image the Commissioners were shown of the portion of the Casino’s front entryway that had been presented as its 3rd design and approved in July 2015 was the sketch shown to the right of this paragraph. It comprised about a quarter of page six of a 7-page document titled Signage and Wayfaring Program. [Click here to see the entire page.] And, neither the Planning Commission staff nor the Chair of the Commission demanded a fuller depiction, which they clearly had the authority to do prior to putting the matter on the Commission’s agenda. Because the Planning Commission does not post submitted documents along with its online Agenda notice to the public, and Rush Street did not share its submission with the public or media, others would have seen that minimalist sketch only if they made a trip to the Planning Office and asked to view the file, or if they somehow knew they could request that the document be emailed to them.

screen-shot-2017-02-09-at-10-00-49-am As so often has happened while witnessing the multi-stage, multi-year process of Casino approval at Schenectady’s City Hall, I’m left wondering if I’m watching Fools or Knaves (or both) going through the motions of enforcing the City’s laws. For sure, they seem like Snowmen, blind, mute, toothless, disarmed, and heat-averse.  Who can say if the Planning Office and Commission were fooled by this bait-and-switch? I would hate to think our officials are so incompetent or naive. The public and media certainly cannot be faulted for their ignorance of the nature of the pig inside the casino’s design poke. Indeed, even today (February 9, 2017), with the Rivers Casino already open, The Galesi Group’s Mohawk Harbor website continues to show the July 2015 3rd design entryway as the first slide on its “Play-Here” page touting the Rivers Casino portion of Mohawk Harbor. Here’s a screenshot taken this morning:

mohharbplayhereimage

  • Likewise, Galesi Group used the 3rd design in the ad it took out welcoming Rivers Casino, in the Gazette’s January 31, 2017 advertising supplement, The Road to Rivers. click to view.

The words of the Gazette editorial of June 7, 2015, written in response to the retro-factory style 2nd design, are still highly relevant when thinking about the undesigned, styleless reality of our real-life Rivers Casino:

Rethink the new Rivers casino design

. . . Maybe we’re supposed to be grateful for any design at all. Certainly, anything they build will look better than the existing giant empty lot, for decades littered with piles of construction debris, steel girders and weed-covered clumps of dirt.

But we weren’t promised just anything. We were promised a spectacle. And this design is a fizzled firework. . . .

Perception equals reality. What is the perception we want people to have of our new casino and retail center and hotel and townhouse complex? And how will that perception ultimately affect the bottom line? How enthusiastic are people going to be driving great distances to a facility that looks like a relic from the WPA? What reality will we get in return for this abrupt change in design concept?

As we emphasized in our posting,“why does Schenectady get Rush Street’s scraps?” (June 19, 2015), Rush Street Gaming clearly knows how to produce an attractive, even spectacular, design. We got much less, it seems, because our Mayor and zoning/planners officials failed to demand a quality design. How will our homely casino exterior affect its bottom line, and thus the tax revenues generated by it? We will have to wait and see. Our posting last month, “casino choices in upstate New York: who will choose Schenectady?” is not optimistic that we can successfully attract people from outside a very small geographic area, given the many other casinos that actually try to look like a tourist destination.

How did we get stuck with this unattractive casino in Schenectady? The reader can decide for herself or himself how or why it happened. We believe City officials more interested in pleasing or appeasing the developer and casino owner, and their button-man, Mayor McCarthy, failed to do their jobs, and have diminished themselves and our City.

  • For more Rush Street bait-n-switch, click here, concerning the giant pylon sign.
  • tunelson2016signplan In addition, see “Casino sign plan to be submitted to the city in ’16” (Albany Times Union, December 13, 2015), where TU reporter Paul Nelson states that sometime next year Rush Street will submit “a more comprehensive look at the design of the 80-foot pylon or gateway sign that will welcome visitors” to the casino, “as part of a larger package dealing with all the signage on the 60-acre Erie Boulevard site.” Nelson notes that:

“Mike Levin, a consultant with Rush Street Gaming, said last week that design plans will focus on colors and lettering of the pylon sign that some critics have complained is too garish.”

Their response to worries about the pylon colors and garishness was, it now seems, to move those elements to the façade of the casino building itself. Just another thumb in the eye of the Planning Commission, City of Schenectady, and its residents.

afterthought (February 10, 2017) – xpresscash08feb2017a

The collage below shows the three blocks of Erie Boulevard leading to the Schenectady Casino coming from the north (I-890, or State Street/Rte.5). Click on it for a larger version:

riverscasino-erieapproach . . The much-touted Renaissance of Downtown Schenectady has not exactly reached Erie Blvd. near the Casino. .

 

 

the Gazette takes problem gambling more seriously

After long silence on the topic, I am pleased to say that the Schenectady Gazette has devoted significant space to the issue of casino-related problem gambling this week, in preparation for today’s Grand Opening of Rivers Casino at Mohawk Harbor. Here are excerpts from three articles:

sfoss In her opinion piece “More resources needed for problem gambling: Lack of services in Schenectady seems like serious omission” (Feb. 5, 2017), Gazette columnist Sara Foss raised important issues for our community. 

  • “There’s years of documentation and research showing that within 50 miles of a casino you see dramatic rises in problem gambling,” explained Philip Rainer, who serves as chief clinical officer at Capital Counseling, the non-profit agency that runs for the Center for Problem Gambling.

    Rainer and Hill are certain the Capital Region will see an uptick in gambling addiction due to the new casino. They are also certain that resisting the urge to gamble there will be a challenge for their clients, who have been talking about Rivers Casino & Resort for months.

  • Given the fact that a casino is about to open in our own backyard, the lack of gambling services in Schenectady seems like a serious omission.

    nycpgjaimecostello “Ease of access increases problems,” Jaime Costello, director of prevention, training and special programs for NYCPG, said. “More programs are definitely needed. It would help if gambling services were available in every community.”

  • It would be nice to think that Hill, Rainer and other experts in problem gambling are wrong – that the casino won’t lead to an increase in problem gambling and other social ills. But I suspect that they’re right, and that within the year we’ll have a better understanding of the casino’s downsides.

    One of those downsides is sure to be an increase in problem gambling, and we need more resources for the people who can’t control themselves when they step onto the gaming floor.

An article dated February 7, 2017 reports on a Siena College poll with findings on the attitudes of Capital Region residents toward the Rivers Casino. (“Poll: Residents have mixed feelings on casino impacts“, by Brett Samuels, Daily Gazette.) Polling was conducted Jan. 8-11, and the poll has a margin of error of 4 percentage points. The poll found that over 50 percent of people plan to visit the casino. Click here for the Siena College Research Institute Press Release. As for problem gambling:

While many see the casino as a positive economically, 55 percent believe the new casinos will cause increases in problem gambling and crime. The majority of respondents said problem gambling is a disease, but only 11 percent said they are aware of treatment services in their area.

 “The survey results support our view that both raising awareness of problem gambling and providing resources for problem gamblers and their families is crucial as new casinos open,” Jim Maney, executive director of the New York Council on Problem Gambling, said in a statement.

Also, in “Concerns over Rivers Casino persist for some ahead of opening day” (by Brett Samuels, Feb. 5, 2017), the discussion also focuses on the likelihood of an increase in problem gambling (which Rush Street has denied will happen here), including extended remarks by Jim Maney, Executive Director of the New York Council on Problem Gambling:

Aside from city finances, there’s the matter of personal finances. The most recent federal study on gambling shows problem gambling roughly doubles within a 50-mile radius of a new casino. Experts consider proximity and opportunity the biggest contributors to a gambling habit.   

 

Prior to Rivers, the nearest full casino to Schenectady was Turning Stone Resort and Casino, located almost 100 miles west in the town of Verona, although there is also the racino in Saratoga Springs, which has numerous gambling options, though not as many as either Turning Stone or Rivers.

nycpgjimmaney “If someone had to go to Turning Stone but could only go once a week because it was too far, now you can go every day. You can go after work, you can go between errands,” said Jim Maney, executive director of the New York Council on Problem Gambling.

 

The biggest warning signs of a possible addiction include making more frequent trips to a casino and betting higher amounts, or lying about the frequency of those visits, Maney said.

 

Consequences of problem gambling can surface in different ways, he said. For some, it might be reflected in unpaid bills or a dependency on social services. For others, it might lead to stress and additional doctor’s visits.

 

While problem gambling affects a small percentage of the population, Maney said it’s an issue that can affect an entire family if bills go unpaid and money dries up. The best way to seek treatment is to call the state’s help line, he said.

pgposterdetail For much more on the need for problem gambling education and prevention programs in our community, see our posting last March, during Problem Gambling Awareness month. Of course, we need action — real programs backed with committed resources — not just words. Let’s see who comes forward to make it happen.

.

update: The first community forum presentation on problem gambling of the NYS Responsible Play Partnership will be held Wednesday, March 22, 2017, at Elston Hall, at Schenectady County Community College, at 5 PM. It is free and open to the public. Please be there to show your support for not only more problem gambling treatment resources, but also for education and outreach resources to help deter problem gambling from ever getting to the stage where professional intervention is needed.

casino choices in Upstate New York: who will choose Schenectady?

The Snowmen Effect #1: This posting is the first in our new The Snowmen Effect category, in which we will point out how inadequate protection of the public interest has resulted in a less attractive, less safe, less successful, and/or less responsible Rivers Casino in Schenectady. Here, we discuss the lackluster design of Rivers Casino, due to the failure of our snowmen-like leaders to demand better.

share this post with the short URL: http://tinyurl.com/CasinoChoices

upstatenycasinomap If you lived more than 40 or 50 miles from Schenectady, would you choose Schenectady’s Rivers Casino at Mohawk Harbor, with its touted $320 million investment by Rush Street Gaming, over the half dozen other casino choices in upstate New York? More than once? (Click on the Upstate NY Casino Map to the right for a larger version; Google Map.)

How will residents of cities like Watertown, Kingston, Binghamton, or Rochester, choose between the casino options available in Upstate New York? Each of the casinos has ample “gaming” options, and similar guest incentive programs, with sufficient dining and hotel accommodations, and entertainment, along with fairly comparable weather. How important will the visual appeal of the casino complex be (architectural design, lighting and landscaping, physical setting)?

riverscasino13jan . . entrance, Rivers Casino at Mohawk Harbor, Schenectady

riverscasinodesignsThe main entrance of Schenectady’s Rivers Casino can be seen above (Click on the image for a larger version). As detailed in this posting, the final rendition submitted to the public of the casino entrance, in July 2015, looked quite different. Click on the thumbnail image to the right to compare. [note (Feb. 5, 2017): The Galesi Group is still using the July 2015 image in its promotion of Mohawk Harbor, as in the Gazette‘s January 31, 2017 advertising supplement, The Road to Rivers. click to view.]

Here are images of the front façade or casino entrance for each of the three other new Upstate  NY “commercial” casinos granted licenses by the NYS Racing Commission (click on each for a larger image):

. . del Lago  dellagocasino  . .

above: rendering of the casino portion of Del Lago, Waterloo-Tyre NY, opens 01Feb2017;  below: [L] a rendering of the Tioga Downs Casino, Nichols NY, opened 2Dec2016, plus a photo of the Tioga Downs entrance; [R] a rendering of the Montreign Casino, Monticello, opening March 2018

tiogacasinofront . . Tioga Downs Casino  . . tiogaentrancetwc

Montreign Casino . . montreignentrance

There are quite a few choices besides our Rivers Casino (click on the link for each casino in the list below to learn more about its outside appearance, indoor ambiance, and amenities):

  • dellagocasinoimagesThe $440 million Del Lago Casino in Waterloo-Tyre NY (Sullivan County) opens February 1, 2017, a week before the Rivers Casino; click here for a recent article about it, and click on the collage at the head of this sentence for views of del Lago.

update (Feb. 1, 2017): Del Lago opened today at 10:30 AM. On Syracuse.com, the website of the Syracuse Post-Standard, you can find a “first look” video shot two days ago. Here is a photo taken on January 30 for Syracuse.com by Dennis Nett, showing that the final result is faithful to the original rendition:

dellagocasino30jan2017

  • tiogacasinocollage Tioga Downs Casino, in Nichols NY, has been revamped (with a $122 million capital investment) and is already opened (since December 2016) in the Southern Tier, with a “country-fair themed” experience; click the collage to the right for more images of Tioga.
  • saratogacasino [on left] The upgraded Saratoga Casino and Raceway [FAQs], which is about 22 miles up Rt. 50 from Schenectady, is located in a proven tourist town that offers good taste, upscale shopping, and history; it is still a “racino”, but has over 1700 slot machines and electronic table games;
  • montreigncasinovThe Montreign Casino at Monticello (image on right), scheduled to open early next year, with a much larger budget [$1.3 billion when the complex is completed] than Rivers Casino in Schenectady, and the vision of renewing the Catskills as a top-level tourist destination, with a four-star hotel (and a less pricey one being built in its expansive entertainment center); and, of course,
  • turning-stone-casino The Oneida National tribal casino-resort Turning Stone at Verona, NY, is 24-years old and doing $20 million in upgrades to compete with del Lago; and
  • FallsViewFallsview Casino in Niagara Falls, ON Canada, opened in 2004 as a $1 billion investment. It is owned by the Government of Ontario, and managed by a consortium that includes a company owned by Neil Bluhm, the original developer of Fallsview, and the primary owner of Rush Street Gaming. [image on the right]

In an Appendix at the bottom of this posting, I have compiled the distances of the various casinos from Albany, Binghamton, Buffalo, Ithaca, Kingston, Rochester, Syracuse, Watertown, and Utica. Here are the distance figures for Syracuse:

  • from Syracuse NY
  • to Del Lago: 43 miles
  • to Turning Stone: 89 miles
  • to Tioga Downs: 104 miles
  • to Rivers Casino/Schenectady 156 miles
  • to Monticello/Montreign: 164 miles
  • to Fallsview Casino, Niagara Falls, Canada: 165 miles
  • to Saratoga Casino: 187 miles
casinoscomparecollage

three new upstate choices: at Schenectady, Waterloo/Tyre & Monticello (click to enlarge)

Taste is, of course, very subjective, and I do not expect universal agreement on which casino design is “better,” more attractive, classier, “more tasteful,” most likely to sway potential customers, etc. As a longtime resident of the Schenectady Stockade historic district, a photographer, and sometime haiga-haiku poet, I am especially drawn to things that are visually attractive in a low-key, classical way, but also at times to visually striking scenes. As I have said often over the past two years (e.g., here and there), for my money, Schenectady’s Rivers Casino looks like a flashy-tacky version of a 20th Century shopping mall’s cineplex wing. (Others have pointed out that Schenectady actually has a far more attractive cineplex downtown; and better looking gas stations, too.) It looks like a humdrum regional (maybe even local) attraction; boxes next to or on top of boxes. For me, the competing casinos seem visually much more “attractive” (able to attract).

riverscasino-erieapproach

a look at Erie Blvd.

Indeed, many people who are inclined to be kinder than I in their assessment of our Casino’s visual appeal, probably would come to the same conclusion. That’s without contrasting the eyesores greeting visitors on the way to and from Mohawk Harbor along Erie Boulevard (see collage to the right) with the physical setting in the vicinity of Montreign, del Lago, Saratoga, Tioga, etc.

In June of 2015, when there was still plenty of time to get Schenectady’s casino design “right”, or at least adequate as a true tourist destination, we raised many questions in a posting titled “why does Schenectady get Rush Street’s scraps?“:

MinorLeagueSchdy

Rush Street designs

  It seems obvious that a “destination resort casino” should be designed to look and feel exciting and extraordinary.  The Gazette editorial board thinks so, and so [purportedly] does our Planning Commission.  Why, then, has Rush Street Gaming handed us two three minor league designs, just boxes on boxes, and a casino complex easily relegated to the realm of humdrum regional facilities? It is not because Rush Street does not know how to put a little sparkle or class in a casino design [click on collage to the right, and read the full posting].


Our first guess as to why Rush Street does not try very hard for Schenectady is that it has had our “leaders” fawning over it ever since the first rumor of a casino was in the air early last year.  This morning’s Schenectady Gazette suggests another reason: As with the earlier zoning amendments, the normal Planning Commission process has been aborted (hijacked?), with the skids greased by the Mayor to make sure Galesi and Rush Street never have to wait very long to get their wish list fulfilled, and with public input stifled whenever possible. . .

For discussion and details on the Planning Commission’s many acts of omission in reviewing momentous changes to the City’s Waterfront Zoning provisions (listed here) and casino design requirements, see “Schenectady’s waterfront zoning: a rubber-stamp in a Company Town” (Jan. 29, 2015; short URL: http://tinyurl.com/CasinoTown). And, see “McCarthy only wants snowmen on his planning commission” (Feb. 09, 2016, which in part stated:

Yesterday [in another February 8th disaster for our City], Schenectady Mayor Gary McCarthy made public his decision not to re-appoint to the Planning Commission its newly-chosen chair, Matthew Cuevas, ending Cuevas’ service after more than two decades. Clearly, the Mayor is not interested in keeping a Planning Commissioner, especially one with the powers of the Chair, who is actively interested in enforcing the zoning laws, fulfilling their promise to protect the interests of all residents of Schenectady, and not merely those of the Mayor’s favorite few applicants and their proposals. . . .

update (March 16, 2016): Our sheep-herding Mayor continues his deterrent-minded culling of the flock on his volunteer regulatory boards. Of course, he is not culling out the weak, he is removing the independent members who refuse to act like sheep. See Faces changing on Schenectady planning board (Times Union, by Paul Nelson, March 15, 2016; subscription req’d). The Mayor has failed to renew the appointment of Planning Commissioner Thomas Carey, who was the only member to vote No last year on the Site Plan review of the Casino compound plans. . . .

[Similarly,] Speaking about the Mayor’s failure to re-appoint herself and fellow Historic Commission member Frank Donegan, [former Chair] Marilyn Sassi told TU reporter Paul Nelson:

“We believed it’s because we spoke out against several projects the mayor is in favor of and he’s just eliminating anybody that doesn’t agree with him,” said Sassi . . “Right now, I’m relieved because I don’t want to have any part of a rubber stamp board, I want to be free to be able to express my feelings and concerns.”

flexibleharbor Another reason for the humdrum design was suggested to me by an outgoing City Council member, and raised by others: If the Schenectady Casino fails, the owner of the land, The Galesi Group, wants the buildings left on the site to be easily converted into almost any new use — from big box store to light industrial use, to small shops or offices, etc. The last thing Mr. Galesi wants on his land if the Rivers Casino fails is a building that “looks like a casino”.  Under this scenario, Rivers Casino is so iffy a project, that we got a casino compound that could be walked away from without too much of a mess for its landlord — a second-rate design in case Plan B is needed in the not too distant future.

GEsignBlDice Rather than acting as if “Schenectady” were the Mohawk language equivalent to “Second-rate-City”, or submissively resigning itself to the status of a mendicant Casino-run Company Town, there were many ways that a vigilant City Council and Planning Commission (or Metroplex), could have ensured that the City of Schenectady got a quality design for its casino, as a true tourist destination. First, of course, they could have used the tremendous leverage they possessed as the host City. Rush Street Gaming needed City Council approval of its application to the Racing Commission for a casino license. Rush Street also desired major changes to our zoning laws to develop its casino without restrictions meant to protect the community. Other cities, as is the universal practice in the industry, take advantage of this leverage to provide benefits for the residents and community. Asking for a quality casino design — which would benefit the casino owner as well as the City — would have been more than appropriate.

Next, our political and business leaders could have simply orchestrated public pressure to achieve an improved design, as when the universally disliked “factory-retro look” was rejected by the community. The very minor tweaks to that plan that resulted in our current design should also have been strongly rejected.

More fundamental and direct, however, was using the Site Planning process to require that the casino design live up to the expectations, and certainly not detract from, such things as the upscale image that The Galesi Group had been creating for its mixed-use Mohawk Harbor development, and the Metroplex ongoing renewal of downtown, along with capitalizing on (and preserving) the appeal of the historic Stockade Historic District, a gem merely one-half mile down Front Street.

According to a February 2015 Gazette article, “Schenectady City Council mulls zoning for Mohawk Harbor: Riggi wants city to reiterate Planning Commission’s authority”, even Corporation Council Carl Falotico confirmed the Planning Commission’s site plan authority:

“Falotico stressed that the commission has the ability to evaluate the aesthetic visual impact of the project even if the plans satisfy zoning requirements.”

 

What a site plan accomplishes “The purpose of site plan regulations is to ensure that the development of individual parcels of land do not have an adverse impact on adjacent properties or the surrounding neighborhood. Such regulations also ensure that the parcel’s development fits properly into the community and conforms to its planning objectives. The development of individual parcels must conform to the provisions of local zoning which contain use and dimensional requirements for site development. Zoning, however, does not contain specifications regulating the details of a site’s development that protect, for example, the design of vehicular access to the site, the provision of needed landscape features, the location of parking areas, and the architectural features of buildings. Site plan specifications go beyond those of zoning, and protect adjacent areas and the community’s residents from flooding and erosion, traffic congestion and accidents, unsightly design, noise pollution, and the erosion of neighborhood character. This is their distinct purpose.”

Conclusion: Schenectady deserves a spectacular design for its casino. From the start, Rush Street’s competitors understood a destination casino must look special, while our applicant seemed to be willing to settle for a very modest “regional” casino look, and the City Hall yes-persons failed to ask for something better. Local business leaders were quite surprised to learn at a recent meeting with casino management that the primary geographic market targeted by Rivers Casino was only a 60-mile radius. Sadly, that fits in with the casino design they have given us.

The result will surely be far less revenue, and trickle-down tourist dollars, than the City and County assumed when they readily caved in to the Casino Gangs’ every demand and proposal. The Upstate, and soon Massachusetts, rivals of Rivers Casino at Mohawk Harbor must be pleased. Our community will now have to rely on local residents spending undue amounts of their disposable (as well as indispensable) income to keep Rivers Casino successful enough for Rush Street to want to stay. That is not exactly the future Schenectady deserves; unless, we deserve the leaders we elect and the future they create.

APPENDIX – Distances from various cities to the casinos

Continue reading

Schenectady’s infamous February 8th

feb8infamy8x10

. . click on the image above for a larger version (formatted for 10″x8″); for other sizes, click on the thumbnails below. You may download them for noncommercial use and free distribution . .  

feb8infamy4x6we [for 4″x6″] . . feb8infamy5x7 [for 5″x7″]

As James Kirby pointed out in a Letter to the Editor of the Gazette (December 4, 2016), the February 8 opening of the Rivers Casino coincides with the date of the Schenectady Massacre in 1690. Here is my Dec. 6 comment to that Letter at the Gazette website, amplifying on the irony:

Re: Massacre and Casino: Sadly, the timing of the casino opening has much more irony than merely coinciding with the date of the Schenectady Massacre. The website name “Stop the Schenectady Casino” was changed to “Snowmen at the Gates,” to symbolize that inviting in the Casino and capitulating to its proponents is part of a long history of Schenectady’s leaders not fulfilling their duty to protect the City and its people.

The marauders from Canada decided to attack Schenectady rather than Albany on the night of February 8, 1690 because (1) there were no sentinels on guard at the main gates of the Village, but snowmen standing in their stead, and (2) the gates were left open by citizens who refused to remove snow blocking the closing of the gates, in defiance of an order given to the mostly Dutch settlers by their hated English commander Captain John Sander Glen to close the gates. As explained more fully at the posting, “Have we learned the lessons of the 1690 Massacre?”, http://tinyurl.com/MassacreLessons :

snowmencameoBW-004 Our website name “Snowmen at the Gates” refers to the legendary snowmen “standing guard” in a blizzard, on February 8, 1690, outside the open north gate of the sturdy stockade fence that was built to protect the little village of Schenectady. Although messages had been received from the larger outpost at Albany warning that a war party was on the way that evening, the appointed sentries apparently decided to leave their posts to have a tankard or two at the nearby Douwe Aukes tavern. That dereliction of duty allowed a band of 114 French soldiers and 96 Sault and Algonquin Indians to enter the stockade, burn down the village, and massacre, kidnap, or scare away its residents.

casinotownlogo We who watched every element of our cheerleading City and County government [along with the Gazette] cave in to every demand of the Casino Gang (with only Mr. Riggi and Ms. Porterfield in opposition on the City Council), and ignore all warnings and research concerning the likely negative effects of a casino and ways to mitigate them, do not believe the lessons have been learned from the 1690 Massacre. Our Mayor, Metroplex Chair, and County Legislature prefer to have harmless, voiceless and blind Snowmen sitting on our boards and councils, turning over the keys of the City and the decision-making machinery to the Casino Gang.

Perhaps we shouldn’t have expected the folks from Chicago’s Rush Street Gaming to recall the date of the Schenectady Massacre. But, didn’t anybody at City Hall or Metroplex Central see that date and point out the public relations problems it entails? Or, is this a new notion of civic honesty about the casino and its impact on Schenectady?

Last year, I left a comment much like the following paragraph at the Gazette website concerning an editorial about review of future Casino requests:

Our leaders and servants at City Hall need to be watchdogs protecting the public, not cheerleaders repeating the casino’s claims, or weaponless and mute Snowmen guarding the gates of our City, like on the night of the 1690 Massacre. Our leaders must take their time, use common sense, ask probing questions, and require full submissions about the factual basis of an Applicants’ claims, and deadline assertions, especially on projects as big and important as Mohawk Harbor and its Casino.

And, they must actually listen to the warnings and suggestions of community members who want what is best for our City, not simply the best for their financial and political futures.

Will the City, County and business leaders who are taking so much credit for bringing Rivers Casino to Schenectady, and did virtually nothing to mitigate or prevent its likely negative effects, melt like snowmen under the spotlight and heated questions that they can expect when things start to go wrong? Or, will they take responsibility, come up with meaningful solutions, and ensure that we are much more than a company town (a Casino Town)?