why are Ellis Medicine and MVP promoting Casino Gambling?

 Have you seen this ad, which has been appearing recently in the Schenectady Daily Gazette?

As you can see above, Rivers Casino is offering hour-long “Gaming Lessons” for those wanting to “Learn Table Games: Craps, Roulette, Blackjack, Poker.” That is, of course, not at all surprising. Nor, despite its motto “reinvent your life,” is it surprising that 50+Living, a Gazette subsidiary, is “presenting” the Gaming Lessons Program, and featuring it on their website. (The Gazette has been part of the Casino’s primary cheerleader squad since our City Council voted to approve the application of Rush Street Gaming and the Galesi Group for a gaming license in 2014.)

 What is both surprising and rather sad, however, are the other pillars of our community that have apparently joined the Casino’s harem: There are only two other Sponsors for the Gaming Lessons in addition to Rivers Casino: Ellis Medicine and MVP (f/k/a Mohawk Valley Physicians’ Health Plan). That’s right, Schenectady County’s two leading health care institutions are lending their reputations and stature, and their reach into the community through affiliated physicians and other practitioners, thousands of employees, and hundreds of thousands of patients/subscribers, to the promotion of gambling in Schenectady.

LessonsSponsors15SepPG-LessonsAdCollage  update (Sept. 15, 2017): The ad for Gaming Lessons in today’s Daily Gazette has removed the Ellis Medicine and MVP Health Care logos from the sponsors section of the ad. See the detailed update at the bottom of this posting.

 It seems fair to ask, “What ever are they thinking?!”. And, giving them the benefit of the doubt, what kind of pressure have MVP and Ellis received from the City, County and Metroplex to enhance the Casino’s status in our community, and perhaps bolster its flagging revenues? It seems unlikely to me that sponsoring gaming lessons is an initiative that originated within Ellis or MVP’s hierarchy or health care staff.

Organizing “Gaming Lessons” was not exactly the sort of education we had in mind during Problem Gambling Awareness Month, earlier this year, when we wrote at this site:

 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.

 . . click for Sara Foss’ Gazette column (Feb. 5, 2017)

For two years, I have been waiting for Schenectady’s public and private sectors to start making problem gambling prevention a serious priority, through educating the community (and not merely settling for feeble intervention efforts at the Casino itself). Given the explicit commitment of both Ellis and MVP to Mental, Emotional, and Behavioral (MEB) health promotion and MEB disorder prevention, sponsorship of Problem Gambling Prevention Education seemed like a likely path for both institutions. 

  • MEB [Mental, Emotional, and Behavioral] health disorders include but are not limited to: substance use disorders, mental illness, suicide, and problem gambling.

 Just last month, MVP appointed a new Vice President for Mental Health in order to “further MVP’s commitment to more holistically integrating behavioral health into traditional medical models and creating the best possible outcomes for MVP’s members with behavioral health diagnoses.”

 More specifically, in response to Schenectady County’s highest in the region male suicide rates (2nd highest for females), and highest in the region Emergency Department visits and hospitalizations for mental disease and disorder, Ellis has announced, as a cornerstone element of its Prevention Agenda, an “Ellis Implementation Strategy . . . with a simultaneous emphasis on suicide prevention and on broad support for Mental, Emotional, and Behavioral (MEB) health services.” See “New York State 2016 Community Health Needs Assessment and Improvement Plan and Community Service Plan for Schenectady County”, at 30. 

“A friend in need”- C.M.Coolidge.

 Furthermore, according to its Alliance for Better Health Care project workbook, Ellis Medicine also aims to “Participate in Mental, Emotional, and Behavioral (MEB) health promotion and MEB disorder prevention partnerships.” That includes efforts to “Support collaboration among leaders, professionals, and community members working in MEB health promotion to address substance abuse and other MEB disorders. Prominent sponsorship of Gaming Lessons may be a community partnership, but it does not appear likely to advance Ellis’ stated MEB goals. 

 Certainly, the leaders of the Ellis and MVP organizations are aware of the issue of Problem Gambling, and especially its increased prevalence when an urban community gets its first casino, making repeat visits much easier, and social pressure to participate stronger, as casino gaming is promoted as a normal, glamorous, and even civic-spirited activity. [For a discussion of the issues and research, with links to many programs and resources, see our posting at http://tinyurl.com/ProbGambSchdy.] Rather than helping to combat problem gambling before it infects a gambler and family, by sponsoring training to familiarize and glamorize casino table games, MVP and Ellis seem to be casting an aura of good health upon Rivers Casino at Mohawk Harbor. What are they thinking?

  •    50+Living has a catchy tagline, “reinvent your life.” But, the meaning of that phrase seems compromised when its website has a large ad for the Gaming Lessons program at the top of every page, in its right margin, with a link to its registration form. We might even wonder just what that woman is wishing for when she blows the seeds off a dandelion. Retirement, aging, and loneliness can often amplify the risk of gambling becoming a problem that upsets the lives of many seniors and their families. Shouldn’t 50+Living use its forum to help its target audience avoid those risks? See, e.g., this Guide for Older Gamblers.

“Problem Gambling” means gambling behaviors that result in serious negative consequences to the gambler, and his or her family and friends, employer, or community. [See New York Council on Problem Gambling] In additional to its impact on the gambler herself or himself, problem gambling can especially affect the gambler’s family and friends. It can affect people in any age, racial, or economic group, but youth (kidsadolescents and college students) and senior citizens are thought to be particularly at-risk. [click on each topic link for a brochure prepared by the NYS Office of Alcoholism and Substance Abuse Services (OASAS)]

If Ellis Medicine, MVP, and 50+Living would truly like to help our community’s education regarding the existence of a full-service casino in our midst, they should take advantage of an impressive trove of materials already already in existence about preventing and treating problem gambling, and nurturing healthy attitudes and low-risk behaviors relating to gambling. For example:

  1.     Click the thumbnail on the left for a full-page pdf poster created for physicians and other health care providers by the National Council on Problem Gambling, suggesting three simple questions to ask a patient to help determine if there might be a gambling problem, with contact information for resources.
  2.  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 to assist in “having the conversation” with friends, employees, family, etc., about problem gambling. See and download the Have the Conversation Toolkit.
  3. Youth are thought to be particularly at risk of developing problem gambling disorders. And, Rush Streets seems particularly interested in attracting younger gamblers. See our posting,“what will the casino mean for Union College students?“; and a Union College handout on college students and gambling. Both MVP and Ellis should consider joining forces with the New York Council on Problem Gambling, with public school districts in the City and County, and with Union College to utilize existing materials aimed at adolescents and youth, or to create programs tailored to the Schenectady area and Capital District.
  4. And, click these links to find more problem gambling resources, on this website, “snowmen at the gates,” and on Facebook: NYCouncilonProblemGambling,  KnowTheOddsYouthDecideNY

If you feel that our community deserves more appropriate action by Ellis and MVP with regard to gambling education and partnerships with Rivers Casino, please let them know. You might ask whether they have better ways to spend their resources and lend their reputations.

To Contact Ellis Medicine, click here; to contact MVP, click here; and to contact 50+Living, click here.

. . share this post with this URL: http://tinyurl.com/EllisMVPGambling . .

Postscript By itself, the decision by the Foundation for Ellis Medicine to hold its 2017 Women’s Night Out celebration dinner at Rivers Casino & Resort may be harmless, even if the “Luck Be a Lady” slogan is a bit condescending. However, in conjunction with the Gaming Lessons project, this “premier networking environment” among Schenectady’s upper crust, seems like an unnecessary additional signal that the Rivers Casino is a glamorous and civic-minded part of our community.

deskdude Update (September 15, 2017): Around noon today, I sent the following email message to Capital Region Media members and others interested in the topic, relaying the good news that Ellis and MVP were no longer listed as Sponsors of the Gaming Lessons project at Rivers Casino.

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Gazette covers half-year Casino revenues

Today’s Schenectady Daily Gazette has an informative article headlined “A look at Rivers Casino’s gaming numbers 6 months after opening” (by Brett Samuels, August 21, 2017). It includes a “look at how much Rivers Casino has paid out to local municipalities in state gaming tax through July.” For Casino Realists like myself, here’s the core of the article:

 If business continues at its current pace, the city and county would each get a little more than $2 million in gaming money at year’s end. As has been the case from the start, the casino appears poised to fall well short of what was expected by each government entity.

In budgeting for 2017, the city and county both used the low-end projection from the casino’s application and pro-rated it to a March opening. That leaves each government expecting about $2.75 million in gaming revenue for 2017. Gaming revenue is expected to stabilize by 2019.

 Of course, we need to ask: “Stabilize” at what level? And, we might also ask what Schenectady County spokesman Joe McQueen means when he says that “thanks to the infusion of casino money, . .the county is now expecting to see about $855,000 in annual savings.” Is this figure based on some sort of “netting out” of revenues received due to added expenses and reduced receipts from other sources, such as sales or property taxes because of the Casino’s Substitution Effect?

  • As we wrote here more than three years ago, research by the successful citizens’ group “No Downtown Casino” in Hamilton, Ontario, Canada, led them to conclude in their Position Statement

    Greater negative financial impact on nearby businesses – the good numbers go down.

    Studies show that property values near a casino decrease by 10% or more once the casino opens. Part of the reason for that is because the casino never closes. It operates 24/7. Commercial buildings, apartment buildings, condominiums, etc. decrease in value which means over time they pay lower property taxes. Research also shows that 60% of businesses that existed before the casino opens, go out of business within 2 years of the casino opening. Lost jobs. Lost taxes. Failed entrepreneurs. Empty storefronts.

It may be too early for such effects to be apparent in Schenectady, but we need to be vigilant when speaking about how much the Casino has enhanced our tax coffers.

first lap of the Casino Horse Race

Rivers Casino in Schenectady is doing a lot of advertising in Saratoga to try to capture prospective gamblers arriving in the area for the Saratoga racing season. Nonetheless, its take for the first week of the Saratoga meet is one of its worst yet, adding up to only $2,563,000, down 7% from the mediocre prior week. (Saratoga Racing and Hotel had a modest increase for the first week of racing season.) With its relative paucity of charm, and cultural and retail offerings (and virtually no clothing stores, art galleries, or museums of note), and even with the opening of casino’s The Landing hotel, it is difficult to see how Schenectady can compete for business from outsiders attracted to Saratoga Springs and its ambiance, especially after they see actually experience the Schenectady that Dave Buicko calls a “Destination”.

casinodesignactual As I have asked before, with an unattractive casino exterior, and more attractive casino/racino competitors, who will choose Schenectady (more than once)? This is perhaps more of the Snowman Effect that we at this weblog have feared. Having failed to demand a quality product from Rush Street Gaming worth the designation as a tourist destination, and failed to make Erie Boulevard the least bit appealing as an introductory entryway to Schenectady, newcomers used to real cities with real Renaissance downtowns, can only be let down by what they find in Schenectady.

  • crimescene-casinoWe are, of course, wondering when the Gazette will cover a story posted at the Times Union website on Friday, August 4, 2017: “Schenectady County had N.Y.’s highest crime rate in 2016” (by Emily Masters).” Schenectady County Sheriff Dom Dagostino told the TU, “We are a stopping point for the drug trade (from) downstate,”  and the Sheriff added “that Schenectady, Albany and Rensselaer counties serve as a distribution hub for the rest of upstate New York. The other two counties’ crime rates came in as No. 5 and 12, respectively, out of 62 counties statewide.”
    • Meanwhile, Schenectady Police Chief Eric Clifford “wondered if Schenectady’s geography tipped the scales.” Sorry, Chief, I do not think the Governor’s plans to move some Stockade properties out of the Mohawk floodplain can expand to move the whole City off of upstate New York’s Drug Trade Highway.
  • Speaking of a comparison with Saratoga, “Saratoga County, which also borders Schenectady, ranked No. 50. Compared to its northern neighbor, Schenectady County is more diverse, less affluent and [more] densely populated.”
  • update (August 8, 2017): This afternoon, the Gazette posted online the article “Schenectady County had the highest crime rate in the State in ’16,” by Steven Cook. The article looks at various ways to look at the numbers.

 

another sneaky pylon ploy?

WHAT? Mohawk Harbor (Maxon Alco Holdings) is asking the Schenectady Planning Commission for permission to put up a 32′ by 14′ pylon (including an LED screen atop it 12′ by 6′ in size), and to construct a “monument sign” 40′ wide and 10′ high. WHERE? One on each side of the entryway of Mohawk Harbor, on Mohawk Harbor Way, at its intersection with Erie Boulevard. WHEN? On the Planning Commission Agenda, August 16, 2017, August 16, 2017, at 6:30 PM, in Room 110, City Hall, 105 Jay Street, Schenectady, NY 12305.

For Issues and Analysis, please see: “update on the proposed Mohawk Harbor signs” (Aug. 11, 2017)

 I spent the past few days trying to get a look at Mohawk Harbor’s new application to the City of Schenectady Planning Commission to put a pylon sign structure and a so-called monument sign at the Mohawk Harbor Way entrance from Erie Boulevard into Mohawk Harbor. Maxon Alco Holdings, which is part of the Galesi Group of companies, is the official owner of the land at Mohawk Harbor.  I started looking when I saw this agenda item on the Planning Commission’s Agenda for August 16, 2017:

B. MAXON ALCO HOLDINGS LLC requests a Special Use Permit and sign approval pursuant to Section 264-61 I and 264-89 D of a proposal to install a pylon style sign with an electronic message board at the entrance to Mohawk Harbor, tax parcel # 39.49-2-1.2 located in a “C-3” Waterfront Mixed Use District.

 Items are not supposed to be placed on the Commission agenda until staff determines that the application is complete. Therefore, I expected it to be easy to take a look at the Pylon Application. After being told for a couple days that, “of course” they had the submission since the item is on the Agend, but it could not be found, I learned today that the submission did not arrive until today, Friday, August 4. The applications — one for a “monument sign” and one for a pylon sign — were actually dated yesterday, August 3, including the technical drawings. And, in fact, late in the afternoon, a corrected replacement sketch of the pylon sign was submitted by Saxton SignCorp and Mohawk Harbor’s representative Paul Fallotti. The top portion of the pylon sign sketch was changed from an LED screen showing the casino floor to a screen merely saying “Mohawk Harbor.” (See image to the right of this paragraph.) I do not know if or how often the “branding sign” will vary its message or how animated its images will be.  The signage below the LED screen on the proposed pylon are panels with the names of business at MH and they will be lit. The LED screen will change message, advertising events and businesses within the MH complex.

  •  update (Aug. 11, 2017): Christine Primiano gave me some helpful information this morning about the applications and likely timing and process. See “update on the proposed Mohawk Harbor signs.” The Commission or its staff apparently concur with the arguments below about the need for variances due to the excessive size of the signs, and there will be no approval or denial of the applications at the August meeting. The Board of Zoning Appeals is expected to have needed variance requests on its October agenda.

Principal City Planner Christine Primiano, who would surely have explained the situation to me and others seeking to see the submission sooner if she were not on a much-needed vacation, wrote to submission seekers this afternoon, after being contacted by her staff. Christine explained that she had posted the Agenda before leaving on vacation rather than waiting until today, to get it up in a timely manner. However, Maxon Holding had not yet submitted its application, but promised to do so by Monday July 31, in her absence. Unfortunately, the Applicant took until today to finally submit an application (which I personally consider to be inadequate, for reasons given below). Christine does not plan to review it until back on Monday, August 7, and I hope she enjoys the weekend.

 . . . proposed pylon at entrance to Mohawk Harbor at Erie Blvd. and Mohawk Harbor Way. Dimensions: 32′ H and 14′ wide, with an LED screen 12′ wide by 6′ high. Click for the pylon portion of the Aug. 3, 2017 Application.

Readers of this weblog might recall that its proprietor has not been pleased over the past couple years with the handling of the casino pylon issue at Mohawk Harbor by the Galesi Group and the Casino Gang at Rush Street, nor by the Planning Commission and City Council. So, I started out a bit doubtful when I heard of a new pylon submission, having predicted in March 2016 that we had not seen the end of the zombie pylon at Mohawk Harbor. But, the tardy submission of the application materials is not the real problem here, as I see it, except that it continues to show that Galesi Group seems to get special treatment by the Planning Office. Why the “rush” again? There is no “deadline” of any sort any different than that facing any business wanting to put up new signage. More important, it seems yet again clear that the Galesi Group/Maxon Alco Holding does not give sufficient respect to the responsibilities of the Planning Office and the rights of the public.

Sched1SignReg The more substantive issue raised by the application for a pylon sign and a monument sign (click for that application) is symbolized by the last-minute correction to the LED screen at the top of the pylon: This is not a casino-related set of signage applications. Therefore, although it is within the C-3 Waterfront Mixed-Use District, it does not benefit from the exemption to Article IX of the Schenectady zoning code (Chapter 264), which sets forth signage regulations for all (non-casino) Schenectady businesses, including specifications for allowed signage in the various zoning districts, in §264-61(K), Schedule I. Click on the thumbnail image at the left of this paragraph to see Schedule I.

 In 2015, Galesi Group and Rush Street Gaming, led by Galesi CEO David Buicko, pressured City Hall to eviscerate its Waterfront C-3 zoning. A major component of the nearly-felonious amendments (which stole the public’s guarantee of access to and enjoyment of the riverbank) was the granting of signage amounts, including the height of pylon signs, far greater than the original C-3 limits, and the exclusion of “a casino gaming facility and ancillary uses” from application of Article IX’s signage regulation.  Here’s the actual wording (as seen also in the Code section printed above), with emphases added:

C-3 Waterfront Mixed-Use District (as amended 2/2015)

http://www.ecode360.com/documents/SC0901/source/LF957479.pdf

H. Supplemental C- 3 Regulations.

 Notwithstanding anything contained within this Zoning Chapter to the contrary, Article IX – Signs shall not be applicable to a casino gaming facility and ancillary uses. 

1) Maximum allowable signage shall be 19,000 square feet for a casino gaming facility and its ancillary facilities, attached hotel, parking garage and pylon signs. Signage for a casino gaming facility and related uses within the C- 3 District shall be reviewed and approved by the Planning Commission as part of the Site Plan Approval process. Multi – sided pylon signs shall be permitted, with a height not to exceed 80 feet. Square footage for a multi -sided pylon sign shall be the square footage of its single largest side. Signage on any one side of a pylon sign may not exceed 70% of the face of the pylon sign, on that same side. 

This means that even in the C-3 zoning district, non-casino-related signs must comply with the requirements, definitions, and restrictions of Article IX, including the specifications in Schedule I. Mohawk Harbor signage has limits similar to businesses throughout the City that do not happen to be in the Favored Casino Business. This detail from Schedule I shows the most relevant portion:

ScheduleI-detail

That means, for example, that the following definitions apply to the Mohawk Harbor signage applications now before the Planning Commission:

Schenectady Code §264-60 Definitions http://www.ecode360.com/8692182#8692226

FREESTANDING SIGN — A self-supporting sign standing alone on its own foundation.

MONUMENT SIGN — A freestanding sign attached to a brick, stone, or masonry wall or structure that forms a supporting base for the sign display.

PYLON SIGN — A sign that has a base that is a minimum of three feet wide and a maximum of five feet wide. At no time can the message portion exceed eight feet wide.

SHOPPING CENTER — A group of three or more retail and commercial units on a single site, constructed and managed as a total entity, sharing a common on-site parking area.

[Editor’s note: “Pylon signs” and “monument sign” are considered “Freestanding Signs” in the sign industry (examples here and there) and fit into the definition of that term in the Schenectady Code.]

Therefore, a non-casino pylon sign may have a base with a maximum width of five feet and its message portion may not be more than 8 feet wide. The requested special use permit for a 32′ by 14′ pylon structure, with its LED screen of 12′ by 6′, must therefore be rejected by this Commission, as inconsistent with the zoning code. An “area variance” is needed before a special use permit may be granted. Under NYS GCT Law §81-b, an Area Variance is “the authorization by the zoning board of appeals for the use of land in a manner which is not allowed by the dimensional or physical requirements of the applicable zoning regulations.” For the factors to be considered before granting an area variance, see the quotes and discussion at the foot of this posting.*

  • red check It is the Zoning Board of Appeals, not the Planning Commission, which is authorized to hear a request for an area variance. This same Area Variance requirement also applies to the Monument Sign application. Click here to see the Area Variance Application form at Schenectady’s Zoning Board of Appeals.

  . . . proposed “monument sign” for the entryway to Mohawk Harbor Way; click to see the Application.

As for the Monument Sign proposed by Maxon Alco Holdings, at 40′ W and 10′ H, it exceeds the 7′ maximum for a freestanding sign in the C-3 district, and with its great width, also greatly exceeds the maximum square footage permitted in Schedule I. As such, the application belongs before the Zoning Board of Appeals, not the Planning Commission.

As always, I hope the Planning Commission and the Planning Office will step up and enforce the Schenectady Zoning Code in a manner that preserves public safety, aesthetics, and the general public interest.  A casino may be a special kind of business that arguably needs extra hoopla and lights and action, or City Hall might have felt two years ago that it must do everything asked of it by the Mohawk Harbor/Casino Gang. But, there is nothing about condos, office buildings and regular retail and bars that calls for allowing signs multiples larger than other businesses are permitted.

Nor should the Commission ignore the public safety aspects of placing an often-changing LED screen in a place where it can be a distraction or cause glare for drivers or residents. The special findings required before an electric message sign is permitted everywhere else in the City, therefore, must also be applied to the current application:

§264-61(I)(2). A special use permit must be approved upon a showing by the applicant at a public hearing of the City Planning Commission that the proposed electronic message board shall not substantially impact upon the nature and character of the surrounding neighborhood, upon traffic conditions and any other matters affecting the health, safety and general welfare of the public.

For a discussion of “Variables for evaluating the safety of electronic message displays along urban roadways” see my posting at  tinyurl.com/electronicdisplayfactors

We will keep you apprised as the applications proceed in the Planning Commission, or perhaps Board of Zoning Appeals, process. For example, see “update on the proposed Mohawk Harbor signs” (August 11, 2017).

_______________________________________________

*Factors for Granting an Area Variance, per NYS GCT Law §81-b:

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new high (big rush) at Rivers Casino

 Lucky Coincidence? Just as the Schenectady Gazette ran an editorial urging that we “Give it more time for revenue from Rivers Casino” (July 17, 2017), Schenectady’s Casino was ending its best week ever for Gross Gambling Revenue. The week ending July 16, 2017, its 23rd week in business at Mohawk Harbor, saw GGR of $3,882,454. That is the best week since its first full week in business back in February.

  • Oddly, although the take last week was up 36.8% from a relatively good prior week, both Slots GGR and Poker Table GGR were down. All of the impressive increase came from Table Games, which had a GGR of $2,039,456. It was the first time Table Game gross gambling revenue was over two million dollars. Did a party of high-rollers (maybe the Bluhm Clan in town for the Casino’s Hotel opening) show up last week to let the good times roll?
  • Or, did Billy Fuccillo show up to throw a huuuge party at the craps tables?

Whatever the reason, after giving space to the many poor GGR weeks at Rivers Casino at Mohawk Harbor, I thought we should spotlight today it oddly good news. I’m not sure, however, if even six more months of weeks like Week 23 would meet Rush Street’s happy projections or even the County’s sober first-year hopes.

 follow-up (Aug. 6, 2017): See “first lap of the Casino Horse Race.”

 

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.

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

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

 Jeff Gural, 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. [note: Mr. Gural is a major contributor to Gov. Cuomo.]

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):

RiversDPCasinoWindfall

Rivers Des Plaines

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.

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? (

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.

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

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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.)

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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.

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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.