our concerns continue as license granted for Schenectady Casino

The NY Gaming Commission granted licenses for three Upstate casinos yesterday: Rivers Casino at Mohawk Harbor in Schenectady, Lago Resort and Casino in Tyre, Seneca County, and Montreign Resort Casino in Thompson, Sullivan County. See “License for Schenectady casino, two others approved” (Albany Times Union, Capital Confidential, Rick Karlin, Dec., 21, 2015); “Schenectady, two others awarded casino licenses” (Schenectady Gazette, Haley Viccaro, Dec. 21., 2015); “NYS Gaming Commission grants Schenectady casino a license” (News 10, WTEN, Mary Wilson, Dec. 21, 2015).

For some, it may seem grinch-like for us to withhold praise for the Schenectady Casino and to fail to wish it the very best success. Nonetheless, while we do not begrudge people who needs jobs supporting the Casino, we fear that its negative impact on the lives of the residents of Schenectady and of the Casino’s frequent customers and their families far outweigh the shaky revenue benefits that may come from the project, and we cannot endorse the faulty public policy that uses gamblers’ money to offset local property taxes.

In a nutshell, because we believe Rivers Casino cannot be a great revenue success without draining much-needed dollars from the financially vulnerable members of our community and creating significant numbers of problem gamblers, we cannot hope that it is a rousing success. 

The many postings listed in the Right Margin of our Homepage  (and on our Issues page), and our September 2014 Statement in Opposition, explain our concerns, none of which have in any way been diminished by the actions or words of the McCarthy Administration or Rush Street Gaming.

Last year, when the Schenectady casino application was chosen by the Location Board, we stated:

We especially hope that local government and groups will work to

  • reduce the harm caused to families and the community by excessive gambling by persons without the financial ability to sustain significant losses
  • assure that various types of expected street crimes will not increase around the casino or overflow into neighboring communities
  • prevent environmental damage caused by increased traffic, light pollution, flooding hazards, threats to historic buildings, and lost enjoyment of riverfront resources
  • protect the Historic Stockade neighborhood from an increase in traffic that will almost surely reduce the quality of  life in the neighborhood, and threaten the integrity of its historic structures
  • ensure that the local entertainment and leisure business community is not harmed by the many competing elements that are part of the casino project or partnering with Rush Street Gaming
  • ensure that the casino operator cooperates with experts educators to keep problem gambling from infecting young potential gamblers

We members of Stop the Schenectady Casino and our allies in opposition to the casino hope to work in good faith with government and community leaders, along with the casino operator, to gain the most benefits for the community from Rivers Casino at Mohawk Harbor while producing a minimum of negative effects.  If the casino is indeed a reality, we need to turn our efforts from a short-term “fight” to try to stop a casino from being located in Schenectady into a longterm “mission” to make Schenectady the first city to avoid the social harm that comes with any urban casino.  That is a goal that both casino proponents and opponents can surely agree upon and unite their talents and resources to meet.

Here are three primary reasons for our continued concern that the problems and issues we have presented will not be adequately addressed by local government, and will need constant vigilance from those who want to protect Schenectady from casino-made problems:

  • Casino Town: Mayor Gary McCarthy and the various arms of City government have turned Schenectady into a Casino Town, where Rush Street and Galesi get whatever they ask for (and more) and are not pressed to make any commitments beyond the gambling revenue taxes Rush Street will be obligated to pay to the State, and various City and County fees and taxes. See, e.g., “Rush Street’s Giveaways” [to other cities], and “Planning Board hands Casino Gang a Blank Check“.
  • See No Evil. Both City Hall and our primary local newspaper, the Gazette [see, e.g., “Rigging the News“] refuse to acknowledge the likely negative impacts of the casino and therefore to call for necessary counter-measures and mitigation funds from Rush Street (such as the protocol for setting up a Problem Gambling Prevention, Outreach and Education Program in the Host Community Agreement signed by Lago with the Town of Tyre and Sullivan County; see our Lago Info page).
  • Shaky Revenues. We have been saying for a year and a half, long before Moody’s recent affirmation of the negative outlook, that the casino marketplace is over-saturated and that revenues are Unlikely to Come Close to the Rosy Estimates. (see this posting) In addition, Rush Street traditionally over-estimates likely revenues in its applications for casino licenses. If there is a revenue shortfall, and even Mayor McCarthy now suggests that part of the casino revenue stream to the city will be needed to cover any negative impacts of the casino, what will be left to bring down property taxes, the primary reason Schenectady residents have been willing to take a chance on having a casino in our community?

Finally, for now, we invite you to check out the interactive map presented by K. Hume yesterday in the Gazette Editor’s Notebook, K. Hume. It should give pause to casino boosters who believe the Rivers Casino will somehow attract big money gamblers, or even the comfortable middle class, from afar (or even from across the State), and that Schenectady’s casino will buck the reality that most regular urban casino customers come from within a 25-mile radius, with relatively few people staying overnight (see our opening post last year). The Gazette map allows you to compare Schenectady’s casino with its coming competitors in Tyre and Thompson County, presenting an image of the Lago and Montreign casino resorts and basic numbers (click on each for a larger image):

LagoFacts . . . MontreignFacts

above: Lago in Tyre, Sullivan County [L] and Montreign Resort Casino 

SchdyCasinoFacts

If you were going to take your significant other or family on a special casino jaunt or vacation, and were willing to go more than 25 miles, would you choose Lago or Montreign, which look like casino resorts and have far larger project investments, or would you be attracted by the design of Mohawk Harbor’s Rivers Casino in exotic Schenectady, which continues to look like a shopping mall? (See image on the right.) Neither our Mayor and Planning Commission, nor Metroplex, were willing to insist that Rush Street give Schenectady a casino complex as attractive as those it has proposed in many other communities. See “Why does Schenectady get Rush Street’s scraps?“.  Once the novelty of Schenectady’s casino is gone, who do you think will be losing their money at Mohawk Harbor?

follow-up (Feb. 7, 2017): The actual constructed casino is even less impressive than the rendition shown just above to the right. See http://tinyurl.com/CasinoChoices for comparisons to its Upstate casino competition and related musings.

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2 thoughts on “our concerns continue as license granted for Schenectady Casino

  1. You’re well versed on this casino matter, is there a certain percentage or dollar amount the state wants specifically targeted towards property tax reduction? I’ve sort of looked around, can’t really pinpoint it. I really don’t think we’ll be seeing anywhere what McCarthy is throwing out here. I’m thinking any tax cuts will be offset by some sort of fee increases and there’s plenty of those.

    • Hello, Nat1onalWheel. Thanks for wr1t1ng aga1n (sorry, my laptop keyboard w1ll not type the letters EYE or EWE
      nor a few other keys and 1 am not at home to f1x the problem). The State does not seem to have any standards for off-sett1ng property taxes w1th gambl1ng tax dollars. Each host can make 1ts own pol1cy. [1 need to stop, as 1t 1s too hard to compose g1ven the m1ss1ng letters.]

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