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.

update on the proposed Mohawk Harbor signs

This is a set of Updates to our post on August 4, 2017, “another sneaky pylon ploy“, on the proposed Mohawk Harbor pylon-style sign (14′ W by 32′ H, with an LED screen on top, 12′ W by 6′ H) and monument sign (40′ W by 10′ H), which are on the Schenectady Planning Commission agenda for August 16, 2017. In the Aug. 4th post, I argue that the signs are too large to be allowed in the C-3 district, because they are not casino-facility-related, and must comply with the normal regulations of Article IX of our Zoning Code. . .

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

  Click here for an 8-page set of Comments submitted on August 16, 2017, to the Planning Commission by David Giacalone regarding the Mohawk Harbor signs. It starts with the following summary:

 SUMMARY: First, the proposed signs are far larger than permitted for non-casino signs in the C-3 zone, and area variances must be obtained.  On the merits, the placement of a large LED screen so close to a busy intersection and complicated roadway system is particularly worrisome from a safety perspective [from driver distraction and confusion, and glare], and the use of a shopping-center/strip-mall type pylon is contrary to the stated upscale aspirations of the developer and the goals of the City’s Waterfront zoning provisions. It cheapens the image of the Harbor Area, lessens the quality of life of residents in the vicinity, and reduces the attraction of adjacent property for higher use.

Commission Meeting Follow-up (Aug. 17, 2017): Important points, in addition to delaying making a decision until next month:

  • As expected, the Commission declared itself the Lead Agency for purposes of SEQRA environmental review and adopted a negative impact statement.  Interested Federal and State agencies, and the public may comment — e.g., statements about the impact of the signs on traffic safety, and nearby residents — over the next 30 days. In addition, the Commission correctly demanded detailed renderings showing the appearance, exact location, and orientation to the roadways, of the signs.
  •  Despite the statement to me by the Principal Planner earlier this week, Mohawk Harbor did not reduce the size of its proposed signs in deference to the need to seek a variance for each, which State law says must be the minimum increase required to meet the valid needs of the applicant. More worrisome, no Commission member spoke of the need for a variance, nor reminded Mohawk Harbor that only casino facility signs were exempted from the Zoning Code’s Article IX restrictions on the size of signs.
  • Paul Fallati of the Galesi Group stated that one reason for such a large monument sign was to help screen out the sight of STS Steel.
  • Commissioner Bradley Lewis correctly pointed out that the proposed large pylon does not actually have the name Mohawk Harbor prominently displayed, so as to alert drivers they are approaching the development.
  • CrosstownPlazaSign-Aug2017

    Crosstown Plaza pylon

    David Giacalone [proprietor of this website] stated that variances were needed, and that a large pylon with signs for 22 tenants would make upscale Mohawk Harbor look like any old shopping mall. [image to the right is Crosstown Plaza’s sign; with $480 million to spend, I am pretty sure the Lupe family would have developed a very tasteful plaza at Crosstown.] Giacalone reminded the Commission that they need to consider the safety elements of having a large LED screen, plus the lighted tenant signs, just a few feet from a busy road.

    • To my argument that the miSci sign on Nott Terrace is adequate as a branding sign at 12′ W by 10′ H (see discussion and images below), Mr. Fallati said the traffic is much faster on Erie Blvd. so drivers could not see 22 little signs on such a small structure. See “Decision on Mohawk Harbor signs put on hold” (Gazette, by Brett Samuels, Aug. 17, 2017). He apparently missed my argument that we do not need to have a cluster of tenant signs at all, and that 22 tenant signs would not be very informative no matter how large the pylon is — i.e., the Crosstown Plaza pylon is 14′ W and 50′ H (grandfathered in at that height) and passing traffic surely does not become well-informed about the tenants..

 

ORIGINAL POSTING:

Schenectady’s Principal Planner, Christine Primiano, gave me some helpful information this morning (Aug. 11, 2017), with a quick reply to a few questions about the Mohawk Harbor signs and process. She wrote that “The signage below the LED screen [on the proposed pylon] are panels with the business names and they will be lit. The LED screen will change message, advertising events and businesses within the MH complex.” Individual products or sales will not be advertised on the screen. In addition, Ms. Primiano wrote that “The [monument sign] is intended to name the complex and provide some visual screening of the STS Steel site, however, they are already talking about making it smaller because there are size and setback issues.”  Christine also wrote that:

  • On 8/16 the Planning Commission will declare Lead Agency for the SEQR review which starts a 30 day window for interested parties (i.e., Mohawk Towpath Scenic Byway) and involved agencies (NYSDOT and Sch’dy BZA) to comment on the proposal. 

  • The Planning Commission will not take any other action on 8/16 other than to give their feedback on the design. 

  • It’s anticipated that on 9/20 the Planning Commission will take action to either issue denial or conditional approval of the proposal. If they issue approval, it must be conditioned upon approvals by NYSDOT and Sch’dy BZA.
  • 10/4 Board of Zoning Appeals to review the area variances needed to allow the signs.

DSCF3299  . . DSCF3294

. . above: proposed locations on either side of Mohawk Harbor Way at Erie Boulevard for the proposed monument sign [L] and pylon sign with LED screen atop. Click on each  image for a larger version. Click here (for the Monument Sign) and here (for the pylon sign) to see the two Special Use Permit applications.

  MHMonumentSketchDetail . . . MHpylonsketchAug2017  For additional details, please see our Pylon Ploy posting about the two MH signage applications, including the submitted sketch images of the Pylon and Monument signs, and legal discussion of the need for variances due to the excessive height and square footage. The Planning Commission staff appears to agree that variances will be needed unless there are significant reductions, and is therefore contemplating referring the final proposals (relating to allowable dimensions) to the Board of Zoning Appeals for variance review, with possible action by BZA in October.

ISSUES AND ANALYSIS

Here is the Schedule I list of signage regulations in the various districts. Mohawk Harbor is, of course, in the C-3 Waterfront Mixed Use district, and Schedule I and all Article IX provision on Signs apply to the applications before the Commission, because they are not covered by the 2015 Amendments, which exemption granted to casino-facility-related signage.

Sched1SignReg

.

SIZE & STYLE: Given the City of Schenectady’s goals for its mixed-used waterfront district, how much leeway should Mohawk Harbor’s owners have when it comes to the size and design of its freestanding roadside signs?

Here’s how Mohawk Harbor describes itself on the homepage of its website:

Mohawk Harbor is a 60 acre master planned community that integrates luxury living, high-tech offices, restaurants and retail along one mile of the Mohawk River. When complete, Mohawk Harbor will consist of over 1 million sf including 206 apartments, 50 condominiums, 15 townhouses, 2 hotels, 100,000 square feet of harborside retail/dining, 74,025 SF of Class A Office space, and  one of New York State’s 1st licensed casinos, Rivers Casino & Resort.

And, River House, the residential element of the project, is said to offer, “a new style of living in the Capital Region with its a one-of-a-kind, resort-style residences. ” And,

 Situated along the new “Mohawk Harbor”, the Riverhouse provides a unique urban lifestyle that is one-of-a-kind in Upstate New York. Featuring 206 waterfront apartments that overlook the Harbor, it provides the perfect balance of serenity and vitality with its scenic river and mountain views in combination with the vibrant energy of downtown Schenectady

THE PYLON STRUCTURE and SIGNAGE

MHpylonrequest . . . close to River House and future homes

MHpylonsketchAug2017 Given its stated aspirations and pretensions, it is difficult to understand why Maxon Alco Holdings LLC would want to put what is basically a “shopping center” pylon on Erie Boulevard as its branding sign, with twenty-two internally lighted tenant signs shown in the sketch submitted to the Planning Commission. The following collage (click on it for a larger version) asks: If Mohawk Harbor is an upscale, mixed-use “neighborhood”, why does it need a mall-style pylon with tenant signs and large LED screens?

shoppingmallsigns-002

Of course, such things are a matter of taste, but in my experience, it seems that the most “tasteful” shopping plazas and galleries, and mixed-use developments (such as Wisconsin Place, in Chevy Chase, MD, a couple blocks from District of Columbia’s northwest border) do not place tall tenant signs, much less huge LED screens, along their entrances. A kiosk inside the complex is far more palatable.

miSciPylon How large does an effective Branding Sign have to be, especially for a destination-establishment that constantly receives boatloads of free media exposure, for the entire complex and for each new “tenant” business? MiSci, the Schenectady Museum of Innovation and Science, gets far less publicity, but its branding pylon sign on Nott Terrace seems to do the job well, at 12′ W and 10′ H, with an LED screen about 9′ W and 3.5′ tall. See the image at the right. The following collage shows what a Mohawk Harbor sign of the same size might look like at miSci’s Nott Terrace location, and what it would be like at the 32′ by 14′ dimensions requested the the Applicant, including a 12′ by 6′ LED screen. [click on the collage for a larger version]

miSci-MH-signs2

Similar questions need to be asked about the appropriate size of the monument sign at the entryway to Mohawk Harbor. Just a block to the east, on Nott Street, the Golub Corporation has its headquarters, for its Price Chopper and Market 32 chains of supermarkets, in a building developed and owned by the Galesi Group. As you the see in the next collage, it does rather well making itself known to passersby with a freestanding branding sign no larger than 8′ H by 18′ W.

golub-MHsigns2

The desire of Mssrs. Galesi and Buicko to block the view of STS Steel is silly and inappropriate, and the Planning Commission and Board of Zoning Appeals should say so, especially given the brazenly excessive application for a monument sign that would be 40′ W and 10′ tall. For many of us, the STS Steel factory and complex is at least as attractive as most of Mohawk Harbor (especially its boringly ugly Rivers Casino neighbor), and symbolizes much of what was best in Schenectady’s history and desired for its future. The Planning Commission cannot simply trust the taste and good intentions of the Applicant. It must do its job, along with BZA, to assure that the size and design of Mohawk Harbor is consistent with the goals of the C-3 district, and the best interests of our entire community. That includes people who will soon be living at Mohawk Harbor or across the Boulevard in new homes, and those investors the City hopes to entice to take a chance on new businesses across from Mohawk Harbor.

One final thought: We are well past the time when the Galesi Group or Rush Street Gaming can be allowed to rush applications past our City officials and boards with exaggerated deadline claims. The Planning Commission, and then the Board of Zoning Appeals, must demand detailed descriptions and renderings of the proposed signs, especially the pylon that will be tall, very close to Erie Boulevard, and topped by a frequently-changing, high-intensity, LED screen. Crucially needed is a precise description and depiction of the location of the pylon and its orientation to the road and to residences in Mohawk Harbor. [Please see our discussion of safety issues relating to the use of electronic message displays along urban roadways at tinyurl.com/electronicdisplayfactors.] 

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

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

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)

what do those Casino revenue figures mean?

OPEN LETTER to the SCHENECTADY GAZETTE and Other Capital Region Media

. . and see March 10 update below . .

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

Dear Schenectady Gazette and Local Media editors and reporters:

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

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

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

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

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


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

plungegraphsmY

trends?

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

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

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

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

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

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

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

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

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

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

RiversCasino05Mar2017Revs

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

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

a good start for Problem Gambling Awareness Month 2017

npgam_logo_h_cmyk_arrow-colorcorrected-v2 

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

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

That 2016 Awareness Month post argued that:

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

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

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

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

The opening paragraphs of the NYRPP announcement, states:

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

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

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

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

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

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

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

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

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

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

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

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

Continue reading

the Gazette takes problem gambling more seriously

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

 

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

 

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

 

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

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

.

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

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

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

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

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

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

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

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

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

. . del Lago  dellagocasino  . .

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

tiogacasinofront . . Tioga Downs Casino  . . tiogaentrancetwc

Montreign Casino . . montreignentrance

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

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

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

dellagocasino30jan2017

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

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

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

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

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

riverscasino-erieapproach

a look at Erie Blvd.

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

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

MinorLeagueSchdy

Rush Street designs

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


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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

APPENDIX – Distances from various cities to the casinos

Continue reading

Schenectady’s infamous February 8th

feb8infamy8x10

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

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

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

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

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

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

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

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

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

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

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

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

Rivers Casino will open February 8, 2017

casinosignalot

The Rivers Casino at Mohawk Harbor, in Schenectady, announced today that it will open for business on February 8, 2017, a Wednesday. See Gazette article, dated Nov. 16, 2016) The Gazette tells us:

The grand opening date was revealed at an event outside the casino, which is located on the Mohawk Harbor site along Erie Boulevard. Casino executives and local leaders popped champagne and celebrated the announcement as a milestone for the region.

The most recent estimate for the opening had been for March. The del Lago Resort Casino in Tyre, Seneca County, New York, has announced a February 1, 2017 opening. (By the way, earlier this month, del Lago made a $100,000 donation to promote workforce diversity) The Tioga Downs Casino, in Nichols NY, which has expanded from its racino status, opened as a full casino on December 2, 2016; the Montreign Casino, at Monticello NY, is expected to open in March 2018.

Two thoughts after viewing the Casino today from Erie Boulevard and Front Street:

  1. img_2604 The Casino compound still looks more like the cineplex end of a 1990’s shopping mall than an international or national tourist destination. (see photo on the right) [follow-up (Jan. 19, 2017): See “casino choices in Upstate New York: who will choose Schenectady?“, which compares casino designs among the competing casinos.]
  2. As we pointed out often at this website and in submissions to the Planning Commission and City Council, Rush Street and Galesi were clearly misleading our community when they insisted that the Casino could not be seen from Erie Boulevard, because the STS Steel building was in the way. (see, e.g. our posting “phony pylon excuse“) The invisibility of the Casino and its rooftop signage from Erie was the excuse given for the demand that Rush Street be able to erect an 80′ x 39′ pylon sign structure. City Council and the Planning staff and Commission never challenged that bold claim, and changed the Zoning Code to accommodate such a monster pylon (which Rush Street has never promised not to build). If they were willing to deceive on something so easily shown to be untrue, what other misleading claims has the Casino Gang made? Revenue projections? Traffic flow?

 img_2605

. . . above and below: Rivers Casino viewed from Erie Boulevard . ..

img_2598

follow-up: We felt a strong need to comment on the fact that February 8 is the anniversary of the Schenectady Massacre of 1690. See our posting “Schenectady’s infamous February 8th“.

beware the Zombie Pylon (with updates)

pylonpoke

The Zombie Casino Pylon-in-a-Poke

Despite the Schenectady Gazette‘s misleading headline this afternoon, “Pylon sign plan killed at Mohawk Harbor” (March 23, 2016, by Haley Viccaro), there is no way Rush Street will do without a giant “branding sign” or give up the monster LCD screen at its Schenectady Casino. Reporter Viccaro did at least point out that the casino could in the future seek to have a pylon. In fact, they still have plenty of square footage to use, given City Hall’s overgenerous 19,000 sq. ft. signage limit.

 

 Here’s my Comment at the online Gazette article:
 .
The pylon sign plan has not been “killed”, it has been postponed, and your headline does the public a disservice. Rush Street has certainly not promised there will be no huge pylon or giant LCD screen. It is more likely that the Planning office or commissioners are not satisfied with the latest version of the pylon and Rush Street is not willing to postpone approval of the rest of its signage.
.
There is no way Rush Street will have a casino that does not have a giant “branding sign” saying Rivers Casino at Mohawk Harbor, and they are well under the generous signage allowance granted by City Hall. On the bright side, this delay will remove any excuse Rush Street and the Planning Commission might try to use for failing to do a thorough Visual Impact Assessment of the pylon sign, with line-of-sight and computer analysis of its impact on nearby residents (such as Fusco’s Erie Blvd. apartments, East Front Street, Goose Hill, the Stockade and College Park), and on traffic safety. The Dept. of Environmental Conservation’s policy statement on Visual Impact Assessment, for example, says that a formal visual impact assessment is needed, with at least a line-of-site survey, whenever any component of a project can be seen from an historic district, such as the Stockade, with mitigation measures taken to prevent any significant visual impact from the District. [see http://tinyurl.com/VisImpactDEC ]

.

update (March 24, 2016): There is an excellent editorial in the Gazette today, “Casino’s new sign plan offers a glimmer of hope“. It starts, “No one planning to visit the new Schenectady casino is going to get lost trying to find it.“, and ends:

Let’s hope this isn’t a bait-and-switch deal.

When or if the casino operators complete their full sign package, let’s hope they ultimately give the public plenty of notice, including a look at drawings of what the sign or signs will look like from the street.

And if the operators plan to go back to the giant pylon idea, they should let everyone know now, so the proper studies on its impact on surrounding neighborhoods can be thoroughly prepared and analyzed.

At the foot of this posting, I’ve placed my online Comment to this editorial, which focuses on the lessons our leaders should have learned about rushing to embrace the exaggerated demands of the Casino Gang.

As I told Paul Nelson of the Times Union when he called for a quote Wednesday afternoon, if lawyers, adolescents, realtors, or developers are being ambiguous, you can bet they are hiding something. [I momentarily forgot to put politicians in the list.]  See the initial TU piece here: “Schenectady casino operator scraps towering sign plan.” Nelson updated that piece with me details, with the sub-headline “After critical feedback, developers pull back, but opponent still skeptical”.

It is rather amusing that Rush Street told the Gazette:
 .
 “It has been our goal throughout the design process to solicit feedback from all stakeholders and apply thoughtful consideration to the design of the facility in order to bring the best possible development to the city of Schenectady.”
 .
When the public said the pylon design was too tall and too wide and too bright, Rush Street, made it wider (going from 38′ to 39′), moved the branding sign even higher by eliminating a small chimney-shaped lightbox on top, and went from a black background to an intensive white background and white framing. Of course, they have never asked the main pylon opponent [me] for any feedback.
.
It is also rather annoying that I was not able to get the Chief City Planner, Christine Primiano, to bring my latest request that the Commission require a Visual Impact Assessment before the Planning Commissioners. Chris told me I should wait until the pylon has been put on the agenda. That is, of course, about the surest way to ensure there will be no additional study. Without a visual impact resource assessment of the giant pylon signage, at the final proposed location and size, Schenectady will be buying a Pylon-in-a-Poke. If Ms. Primiano has in fact informally passed on my arguments about the requirement for a visual impact assessment to the Commissioners, or to the new Chair, Mary Wallinger, and this has helped in Rush Street’s decision to postpone submission of a pylon plan, I am grateful.
.
Pylon-VisualImpact2-001
.
share this post with the short URL: http://tinyurl.com/ZombiePylon
.
follow-up (March 24, 2016): This is my Comment to the Gazette editorial “Casino’s new sign plan offers a glimmer of hope” (March 26, 2016):

Thank you for an excellent editorial that touches on many of the most important points relevant to the Pylon. When Rush Street comes back with a new version of a giant, free-standing sign or LCD screen, it needs — as you have said — to submit an independent visual impact assessment for the proposed size, location and orientation of the structure. Only then can we begin to estimate its effects on residents and traffic nearby and on the overall skyline of our City.

.

I hope City Hall (from the Mayor and Corporation Counsel, to City Council and the Planning Commission) has learned a very big lesson. They Rushed to change the zoning signage restrictions from allowing one 7′ freestanding sign with 75 sq. ft. of signage, to 80′ tall and virtually no limit; and from a pylon with an 8′ wide sign and 5′ wide base to no limit on the width (resulting in a proposed pylon 38′ wide); and, they did it in a Rush, solely on the very specious claims of needing the monster pylon for the casino to be seen and for Erie Blvd. traffic to know where to turn soon enough to safely enter the traffic rotary.

.

One example: In justifying the City’s request to amend the zoning law and allow a 20,000 sq. ft. limit on signage for the casino, Corporation Counsel told me the Casino started negotiating by asking for 100,000 sq. ft. He seemed to have forgotten that the Casino told Metroplex and the Racing Commission it would need at most 15,000 sq. ft. And, now it has submitted a plan for about 8,000 sq. ft.

.

City Hall and the public need to keep the Casino’s gross exaggerations of its needs in mind whenever they come asking for special treatment. They need to be watchdogs protecting the public, not cheerleaders repeating the casino’s claims, or weaponless Snowmen guarding the gates of our City like on the night of the 1690 Massacre. Our leaders must take their time, use common sense, ask probing questions, and require full submissions about the factual basis of an Applicants’ claims and deadline assertions, especially on projects as big and important as Mohawk Harbor and its Casino.

will Problem Gambling Awareness Month inspire action?

NPGAM_logo_H_CMYK_arrow-colorCorrected-v2

Helpline: 1-800-522-4700

 March is Problem Gambling Awareness Month [poster}

What are our public health officials and other local political and community leaders doing to combat problem gambling?

We believe that only 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.

So far, our City and County governments have refused to admit there is a problem, much less that it will be significant. Rush Street Gaming declared in its Application to the NYS Racing Commission for a Schenectady casino license that funding for treatment programs, and the prior existence of slots in Saratoga and casinos in Atlantic City and Connecticut, meant that “the existence of gaming at Rivers Casino is not expected to lead to an increase in prevalence rates in the local area.” With that assertion, Rush Street denied that increased proximity and access to casino-style gambling will increase the prevalence of problem gambling in our community. The report Why Casinos Matter, by the Council on Casinos of the Institute for American Values, states to the contrary (at 18-19):

“Numerous studies show that living close to a casino is a key factor in more frequent gambling. More frequent gambling increases the risk of serious problem gambling. A large-scale study in 2004 found that people who live within 10 miles of a casino have twice the rate of pathological and problem gambling as those who do not.”

Similarly, after doing an extensive review of the available research, the Hamilton (Ontario, Canada) group No Downtown Casino strongly and successfully opposed building a casino in downtown Hamilton, stressing that:

“Studies show that proximity to a casino doubles the levels of problem gambling, which in turn results in increased spousal abuse, depression, child developmental issues, personal debt, addiction and cross-dependency, personal bankruptcies, attempted suicides, suicides, social service costs. We know that problem gambling has a profound impact on a gambler’s friends and families, which substantially increases the number of people affected by problem gambling.”

Therefore, we congratulate the Schenectady Gazette editorial staff for raising the issue of problem gambling in today’s newspaper, in an editorial promoting the State’s proposals to improve the gambler self-exclusion  program (“Help Problem Gamblers Help Themselves“, March 2, 2016). Nevertheless, we hope the Gazette will call for far more comprehensive programs locally and statewide against problem gambling. We believe that self-exclusion from casinos by individuals who recognize they have a gambling problem and want to do something about it is, at best, a very limited approach to the plague of Problem Gambling. In a way, it is a mere fig-leaf covering a multitude of ways that casinos encourage irresponsible gambling. The 2,800 people who are currently on New York’s self-exclusion list are, for example, a tiny portion of the 15 to 20 percent of those who frequently gamble at casinos and are believed to be problem gamblers.

PGPosterdetailG  In addition, of course, Self-Exclusion programs are far from infallible. Thus, the article “Policing gamblers who can’t police themselves isn’t easy” (Philadelphia Inquirer, by Jennifer Lin, September 9, 2013) states:

“It is somewhere between infrequent and unlikely that you will be detected,” said Keith Whyte, executive director of the National Council on Problem Gambling. Casinos “rely on security guards at the entrance with an antique face book – a binder with photos” of customers on self-exclusion lists.

SugarHouseLogo Mohawk Harbor’s Rush Street Gaming has demonstrated the enforcement difficulty rather frequently in its Philadelphia casino, SugarHouse.  For example, see “Sugar House fined for advancing cash to problem gamblers” (Philadelphia Inquirer, September 6, 2015), which reported that “The Pennsylvania Gaming Control Board fined SugarHouse Casino in Philadelphia $50,000 for giving cash advances to 11 individuals who asked to be banned from casinos in Pennsylvania.” Similarly, note the Pennsylvania Gaming Control Board press release of May 23, 2012, announcing that SugarHouse was fined $70,000 “for seven instances where underage individuals [ranging in age from 17 to 20] engaged in gaming,” and an additional $10,000 “for two separate incidents in November 2010 and March 2011 in which two individuals who had placed themselves on the PGCB’s Self-Exclusion List engaged in gambling.”

A more amazing incident is described in “Casino developer allowed man to gamble 70-plus straight hours in Philly” (Telegraph & Gazette, Worcester, Mass, August 20, 2013), which quoted the following statement by Pennsylvania Gaming Board Commissioner Gregory C. Fajt to SugarHouse officials:

“It boggles my mind that somebody can be in your facility for three days in one instance, four days in another, a known compulsive gambler on the list and not be recognized.” 

Rush Street’s Rosemarie Cook replied: “I assure you it was not a case of being asleep at the wheel. . . . He was just average, and he looked average,” The Inquirer article cited above also discussed that incident, stating: “At their July meeting, Pennsylvania’s gaming commissioners excoriated SugarHouse representatives for not catching [frequent violator Kylee] Bryant.”

Despite the above record at SugarHouse (which I uncovered with just a few minutes of Googling), Rush Street recently issued this statement to the press (“New York to step up effort to battle problem gambling“, by Haley Viccaro, Schenectady Gazette, March 2, 2016):

“We have a strong history when it comes to responsible gaming at our other properties, including operating under statewide self-exclusion policies, and we look forward to continuing that same record of excellence in Schenectady.”

At a symposium on problem gambling held at Schenectady County Community College last year, the Rush Street representative was excited about their efforts to promote responsible gambling, but their efforts apparently revolve around helping the staff identify underage persons, problem gamblers and drinkers, and policing the state’s mandated self-exclusion program. Perhaps, we simply cannot expect more of a casino, when, as stated in Why Casinos Matter:

Casinos depend on problem gamblers for their revenue base.

NoEvil-hear Problem gamblers account for 40 to 60 percent of slot machine revenues, according to studies conducted over the past decade or so. This evidence contradicts claims by gambling lobbyists that their industry wants to attract only those customers who play casually “for fun.” Indeed, if casinos had to rely on such casual customers, they would not long survive. A Canadian study found that casual players comprised 75 percent of players but contributed only 4 percent of net gambling revenue. The casinos’ real money comes from problem gamblers.

NoEvil For similar reasons, we perhaps cannot count on a City Hall and County Legislature banking on major tax relief that is based on the size of casino revenues to seriously recognize and combat the imminent growth of Schenectady’s problem gambling problem. One result of Mayor Gary McCarthy never demanding a host community or mitigation agreement with Rush Street Gaming is that the Mayor and his Administration, like Metroplex and County Government, never did or commissioned any independent research or investigation that could be used to rebut the glib claims of Rush Street and Galesi Group that a casino would have no significant added costs or negative impact on the City, nearby neighborhoods or towns, or the County.  (See our posting on The Mayor and HCAs.)

LagoLogoB&W Things were different in the tiny town of Tyre and Seneca County to our west, when they confronted the potential coming of the Lago Casino to Tyre, NY. They sat down with applicant-developer Wilmot, commissioned studies, and accomplished a multi-faceted Host Community Agreement that squarely faced a multitude of issues, including the specter of problem gambling. To fulfill an agreement with Seneca County Mental Health Department that was incorporated into the Tyre Host Community Agreement [June 2014], Lago Casino will pay for hiring two additional problem gambling specialists (one for treatment and one for prevention). More important, Seneca County and casino developer Wilmot set out the structure for a Problem Gambling Prevention, Outreach and Education Program that will seriously address the issues relating to problem gambling.

Here are some of the provisions in the 3-page Seneca County Problem Gambling Protocol:

  • In partnership with Seneca County Mental Health, Wilmot Casino will fund materials to be used for prevention, outreach and education to vulnerable populations in the Seneca County area.

  • [SCMH] will begin their outreach and education efforts once Wilmot Casino is granted the casino license, prior to the opening of the casino.

  • Initiatives to address problem gambling will focus on impacts in the workplace, family, neighborhood, youth, older adults, public safety and crime prevention awareness.

  • Problem gambling public awareness efforts will target messaging at specifically vulnerable populations including youth, parents as influencers on youth, family member of problem gamblers, indviduals and families with substance abuse disorders, college students, low income residents and aging adults.

  • Age appropriate programming and education on problem gambling will target youth beginning no  later than age 12.

  • Problem gambling education will be infused into all Seneca County Mental Health programs including but not limited to summer camps, Family Education Programs, Crime Victims Assistance Program, Domestic Violence Services and Domestic Abuse Awareness Classes.

  • Outreach and education specifically targeted at the Aging Adult population will take place at senior centers, retirement community events, etc.

Seneca County and Town of Tyre officials clearly understand that “partnering” with a casino developer means far more than helping it win its gaming license by avoiding all talk of negative impacts and added expenses; and the Wilmot Company expects to do much more than make demands and seek concessions in upholding its part of the partnership. It may be too late for Schenectady to use any leverage to achieve a impact mitigation agreement with Rush Street and Galesi, but it certainly is not too late for City and County leaders to establish and implement an outreach, education, prevention, and treatment program to combat problem gambling. Our not-for-profit sector (especially the Counseling and Helping Professions), faith communities, local media, academic leaders (at the collegiate level, and in our public, charter and parochial schools) need to speak out immediately, strongly and consistently to ensure that the County and City have necessary programs in place before Rivers Casino at Mohawk Harbor begins operations.

. . share this post with the short URL: http://tinyurl.com/ProbGambSchdy 
 For more information and assistance, see: PGPosterdetail

Call: 1-800-522-4700
Text: 1-800-522-4700
Chat: ncpgambling.org/chat

 red check follow-up (March 3, 2017): see our more optimistic coverage of 2017 Problem Gambling Aware Month

schdycityhallf Note: The editor of this website has started a modest Problem Gambling Postcard Project to help deal with related problems and educational needs. The postcards are available at The Open Door Book Store on Jay Street in downtown Schenectady. See the Postcards Page at “suns along the Mohawk” for a description of the project, which will donate all of the photographer’s proceeds with the intention of helping to deter and treat problem gambling.

our concerns continue as license granted for Schenectady Casino

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

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

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

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

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

We especially hope that local government and groups will work to

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

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

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

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

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

LagoFacts . . . MontreignFacts

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

SchdyCasinoFacts

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

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

. . share this posting with the short URL: http://tinyurl.com/SchdyConcerns

 

 

a new pylon design due soon

CasinoPylon-Jan2016-001 According to an article in the Albany Times Union by Paul Nelson, “Casino sign plan to be submitted to city in ’16” (Dec. 13, 2015), a new design for the pylon sign will soon be unveiled:

As it stands now, the pylon sign is generally framed on two sides by a contiguous white vertical and horizontal band and does not feature any glass, as was previously discussed. It’s unclear if that white band will be lit.

 

The rendition to the right was included with the TU article, and was apparently provided by Rush Street Gaming design consultant Mike Levin.

The article also noted:

Levin said the Planning Commission already approved the height of the sign, which complies with city code, and that will not change.

Stockade resident David Giacalone, who has spoken out against the casino project, said a relatively inexpensive computer-generated visual impact analysis by an independent organization would help allay anxieties some people have about the brightness of the pylon sign on nearby residential neighborhoods.

For much more on the pylon, see our Pylon Sign Directory