a bargeful of yellow bollards on the Mohawk

Posted on May 13, 2019 by David Giacalone

. . but, first, a Mother’s Day Bouquet for Mama G. :

2 of 180

A Conversation We Might Have Over-Heard at Mohawk Harbor on Mother’s Day:

Q: “What are all those big yellow things called, Son?” A: “Bollards, Mom.”

Q: “Why are there so many and why are they so tall?” A: “Only God, Ray Gillen, and maybe Mayor McCarthy, know”.

Q: “Weren’t they supposed to make Mohawk Harbor and the Casino a classy, attractive destination?” A: “That’s what they promised.”

Q: “Then, how the heck did all those yellow bollards get here?”

“They” — the Developer Galesi Group, Casino Owner Rush Street Gaming, the Planning Commission, Mayor Gary McCarthy and City Hall in general, Ray Gillen and Metroplex, and County government — could have and should have made this crucial project more attractive, to help bring in tourists and repeat business, and for the sake of residents who deserve a beautiful harbor district. Instead, there are, by my recent count, at least 180 bright yellow bollards (that is,15 dozen) surrounding Rivers Casino and detracting from its attractiveness.

The bollards are, in addition, taller than the average bollard (which is 3.5 ft., and not 4′, 5′ and 6′, as at Mohawk Harbor), increasing their visual impact.[see photo above] In the opinion of many folks in Schenectady, parking areas and pedestrian walkways should not be this pedestrian.

The Sentries assigned to protect Schenectady from harmful outsiders on the day of the 1690 Schenectady Massacre instead went off to a Mill Lane pub for some brew, leaving behind snowmen and open stockade gates to greet French and Indian marauders from Canada. Sadly, it seems, weaponless and voiceless Snowmen have been appointed or hired to oversee design and implementation of Schenectady’s most important development of this Century. They’ve permitted a bumper crop of bright yellow bollards to sprout along Mohawk Harbor. For my taste, if they had spawned at least a few snowman-shaped bollards, we would have been better off.

You can see the results of the City’s planning and oversight omissions for yourself with a quick look at the next two collages; one shows bollards at Rivers Casino at Mohawk Harbor on the west side of the facility [L], and the other shows bollards along the east end and rear of the Casino complex [R].

. . click on either collage, or any image in this posting, for a larger version .

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What Is a Bollard and What Do They DO?

A bollard is a sturdy, short, vertical post. The term originally referred to a post on a ship, wharf or dock used principally for mooring boats, but is now also used to refer to posts installed to control road traffic and posts designed to provide security and prevent ramming attacks, as well as provide a theme or sense of place. [see Wikipedia; Reliance Foundry; TrafficGuard.]

Bollards are available in many different sizes and styles, including removable or fixed versions, designed to evoke virtually any era or taste. The type chosen depends on the purpose of the bollard, and the location. For example, Reliance Foundry displays illustrations, specs, and prices for 143 bollard models at its website, including bollard covers in many styles and choice of materials. And, see: its Pinterest Creative Bollards display. Bollards can be serious or stately, artsy or whimsical. The style or mood can even be mixed on the same site or project.

- - For example, Jan Mitchell’s Waterfront Bollards, at Geelong (Australia). More Geelong images here.

Bollards are not, therefore, merely practical, and definitely do not have to detract from a landscape or streetscape. Reliance Foundry notes that “Bollards enhance the visual quality of buildings and landscapes while providing visual and physical barriers for safer, more controlled environments.” And, relevant to our discussion of Mohawk Harbor and Rivers Casino:

When used to complement new or existing architecture, bollards can create or reinforce thematic visual cues and enhance a sense of place within a neighborhood or community—and for approaching visitors. [click the collage at the head of this blurb to see samples of Reliance Foundry bollards]

Despite the hundreds of bollard styles to choose from, and their coincidental nautical history, tall bollards with bright yellow covers are so ubiquitous on the lawns, parking areas, and walkways of Schenectady’s Rivers Casino, that they are the most prominent architectural feature defining the otherwise uninspiring, and unnamable external design of the Casino complex.

Thus, whether you are . . .

. . entering the Rivers Casino parking lot from the west on Front Street:

. . coming from the east on Harbor Way:

. . . visiting next-door at STS Steel:

. . driving over the Mohawk from Glenville on Freeman’s Bridge:

. . .

. . aboard your yacht on the Mohawk River:

. . .

. . entering the ALCO Trail on foot from the west:

. . or, even checking out the ALCO Trail signage from your bike:

your first and subsequent views of the site at Rivers Casino are highly likely to be populated by an inert army of tall, bright yellow bollards.

WE DESERVE(D) BETTER

In the posting “Why does Rush Street give Schenectady its scraps” (June 19, 2015), we pointed to the image created by the Applicants before the Location Board, when they sought a gaming license from New York State, and noted our disappointment in the eventual design of Rivers Casino:

A flashy digital brochure submitted to the New York State Gaming Commission, “The Companies of Neil Bluhm,” touts his having “developed and acquired over $50 billion in world class destinations,” his “Establishing international beacons to successfully attract the tourism market,” and “placing an emphasis on superior design” for his casinos. Unfortunately, instead of an “international beacon” like Fallsview Casino in Ontario, Canada, we get a design that reminds us Neil Bluhm “pioneered . . . the creation of urban shopping centers.”

Why did we get such a disappointing, second-rate design? I got no reply when I emailed the Schenectady Planning Office and City Engineer, on April 15, 2019 and asked, regarding the yellow bollards:

Did the Applicant designate the color, style and size for its bollards for its Site Plan review?
Did the Commission either approve or direct such bright yellow bollards?
Did Staff review this choice and okay it?

That leaves me to speculate on my own. In our June 15, 2017 “scraps” posting, we stated:

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.

In their Casino License Application, Rush Street Gaming and the Galesi Group were required to submit detailed renderings and sketches of the proposed Casino project. For example, the July 2014 Application included an overview sketch with the detail at the right of their west parking lot, the largest ground-level parking area. [full sketch] There are well over 100 trees in the west parking lot in the submitted sketch. That presentation shows that the Applicants/Developer/Owners knew what a parking lot meant to attract and keep tourists and other customers should look like. If nothing else, the image should also have reminded the Planning Commission and planning staff what their goal should be regarding the landscaping and appearance of this prime location. Unfortunately, the public and perhaps also the Planning Commission never again saw such detailed proposals for the casino compound.

from 2nd Casino Design

The limited 2nd design images submitted for public review of the Casino compound did not include the full parking lot, but still seemed to have quite a few trees. [See the image to the left.] The third design submitted to the public only revealed a tiny part of the front and back of the Casino, giving no parking lot views. Of course, nothing prevented, and their duty demanded, that the Planning Commission require more detail and allow more public comment; more important, their duty demanded the construction of far more attractive parking lots, especially given how much of the total footprint of the Casino Compound and Mohawk Harbor they would consume.

The the next four images below show the actual west parking lot, with its mere handful of trees along the rows. Click on a photo for a larger version.

. .

. . photos taken, Nov. 4, 2018 [above] and May 4, 2019 [below] . .

. .

You have to wonder: “What happened to all those trees?” Indeed, the Minutes of the July 22, 2015 Commission Meeting, which included the Casino Site Plan Review, have Commission Member (now Chair) Mary Moore Wallinger noting (at 5):

[T]hat she very much appreciates the detailed planting plan and that she feels that the applicants listened to the feedback from the Commission regarding the landscaping and pedestrian walkways and took it into account when revising the design.

What could Ms. Wallinger, a leading Schenectady landscape architect and designer of major municipal projects in the City and County, have meant, if the result is a swarm of yellow bollards that would seem to be the antithesis of good landscaping and site planning at an “international tourist destination” and unique, new, upscale neighborhood? The beauty and shade added by robust and numerous trees in a parking lot are, of course, much appreciated by urban designers, and by passersby, drivers, and passengers coming from near and far.

BTW: I recall being in the Commission hearing room when, at one point in the process, Ms. Wallinger spent a lot of time worrying with the applicant over the size of the parking lot tree beds. Did she have any follow-up with the Planning Office staff on this issue?

Throughout the Casino design and site plan approval process, this website and local media complained that the public and the Planning Commission were receiving far fewer and far less specific details about how the casino site would look as proposed by the developers than we would expect in even the most insignificant project. We were shown only incomplete “peeks” at segments of the proposed plans, often with sketches and not complete renderings, and the Commission never demanded more, despite the importance of this project and its clear authority to require more. Instead, phony deadline pressure arguments from the Applicants were accepted without complaint, and last-minute incomplete submissions were accepted. For example, see the limited-view renderings submitted for the rear (river-side) of the Casino and its Hotel on the Right for the 2nd Rivers Casino Design, and immediately below for the 3rd design.

. . .

By the way, despite their prominence on the actual constructed site, there are no yellow bollards in sight in either version of the rear of the Casino complex.

How could this happen at a project hailed so often as Schenectady’s premiere new, upscale location, and hope for its future? The City’s Planning Commission purportedly gave the Casino and Mohawk Harbor a full Site Plan Review (see our disappointed coverage). Site Plan review is not merely meant to make sure that all zoning laws have been followed. As we explained during the Site Plan process for the Casino complex in July 2015:

“[T]he commission has the ability to evaluate the aesthetic visual impact of the project even if the plans satisfy zoning requirements.” [Gazette article citing Corporation Council Carl Falotico, Feb. 3, 2015.]

Also, see the section “What a site plan accomplishes” in the “BEGINNER’S GUIDE TO LAND USE LAW”, by the Land Use Law Center of Pace University School of Law, at 19.

- By the way, at the end of the July 22, 2015 Planning Commission Meeting, chair Sharron Coppola announced it would be her last meeting as chair, and that she would be resigning her position as Planning Commissioner. I certainly wish Ms. Coppola had written a Memoir of her time at the Commission, including the entire Harbor District zoning and Casino site planning experience.

POSSIBLE EXPLANATIONS?

at OrthoNY Liberty Street

Some of the most imaginative people I know have not been able to figure out or conjure up a justification for the excessive and near-exclusive use of bright yellow bollards at Rivers Casino Schenectady. In addition, in none of my readings have I found any indication that bollards need to be bright yellow in order to effectively serve their functions. My inquiry to City Engineer Chris Wallin about requirements that bollards be yellow in certain situations never got a reply. (Of course, in a location where one might not expect to find the protected item, a bright color to signal its existence does make sense, but that issue does not seem to warrant the ubiquitous choice of bright yellow at Rivers Casino at Mohawk Harbor.)

A Schenectady Tradition? No, it isn’t, despite their use to protect utility cabinets at recent projects downtown. City Hall, County, civic and business leaders are surely aware that there are other kinds of affordable and more attractive bollards, or similar security measures or screens available. A short outing around Downtown Schenectady should suffice to prove that proposition; here’s the result of my recent bollard tour:

at S. Church & State St. . .

Also, the first tenant at Mohawk Harbor, Courtyard by Marriott Hotel, did a nice job looking like a tasteful place to stay, without using even one yellow bollard to protect the building and utility units. Here are a couple of sample views of the Hotel; for more, click on the Collage Thumbnail to the head of this paragraph.

. .

Unfortunately, Marriott’s example did not rub off across its driveway at Galesi’s Harborway Drive office-retail buildings.

A Rush Street Gaming Branding Tool or Trademark? And, No, bright yellow bollards are not a design theme uniting all Rush Street Gaming properties. The collage below (on L) has images compiled from an extensive on-line Google Street Map tour of the exterior of Rivers Casino at DesPlaines, Illinois, which has a design similar in many ways to Schenectady’s Rivers Casino, but without yellow bollards. Similarly, the collage on the Right shows exterior scenes from Rush Street’s Sugar House Casino in Philadelphia, where yellow bollards are also absent and do not appear to be a design element for exterior spaces. Similarly, Google Images we located of Rivers Casino Pittsburgh contain no yellow bollards.

Furthermore, Rush Street Gaming and their development partner Galesi Group used not-yellow bollards and non-bollard alternative devices in strategic spots at and near Rivers Casino. Click on this Collage:

. .

A few years ago, we documented at this website how much better Rush Street Gaming has treated the cities that host its other casinos or potential sites than how it treats Schenectady [see, e.g., Rush Street Giveaways, and Money on the Table]. So, it is not surprising that we have not been able to find similar aggregations of bright yellow (or even similarly unsubtle or unsightly) bollards at other Rush Street casinos.

at Waterfront Condominiums, Mohawk Harbor

Finally, Is Bright Yellow a Galesi Group Trademark or Branding Tool? Despite a minor outbreak of similar bollards at the Galesi-built and owned Price Chopper/Golub headquarters (example), there does not seem to be any internal imperative for yellow bollards within the Galesi Group. Indeed, we see a far more tasteful/tolerable (and less conspicuous) set of bollards at the eastern end of Mohawk Harbor, performing protection service for utility cabinets and similar objects at Galesi’s high-end Waterfront Condominiums [asking price, $500,000 to $700,000]. There’s not a yellow bollard in sight on site.

Like the westside of Mohawk Harbor, the eastside (between Harborside Drive and Erie Boulevard), sits on the banks of the Mohawk River, has a bike-pedestrian path running through it, and features ALCO Heritage signage sponsored by Schenectady County. Both ends of Mohawk Harbor sit within the City of Schenectady, with site plans reviewed by its Planning Commission. And, both ends were proudly godfathered/mid-wived by Ray Gillen of Metroplex. Why such a visually-different result?

. . Mohawk Harbor riverbank bollards protecting utility boxes: [above] at Rivers Casino; [below] at Waterfront Condominiums . .

Discount Bollards? Did a literal bargeful of yellow bollards or bollard covers show up at Mohawk Harbor or another Schenectady County location with great price breaks for buying them in bulk? What amount of savings could compensate for their lack of aesthetic virtue?
Peoples’ Choice? I know that taste can be very subjective, and that some “leaders” want to force constituents out of their confined preferences, but I believe that the great majority of Schenectady area residents, if asked the question directly with photos, would strongly prefer non-yellow bollards.

As with the failure of our Mayor to demand financial, employment, purchasing benefits, etc., in a host community agreement, it appears that our City Hall and its appointed Civil Snowmen neither demanded attractive landscaping and protective installations around the Casino, nor required that the developers fulfill any specific promise they may have made in the site plan process.

The collage to the Right gives a stark example of Galesi Group promises in a site plan meeting that were apparently later ignored by the developer and by any enforcement officials reviewing the execution of a Mohawk Harbor project. According to June 17, 2015 Planning Commission Meeting Minutes, during review of the Site Plan for what would become the 220 Harborside Drive office and retail building, project engineer Dan Hershberg:

.

[E]xplained that because there is underground parking beneath the parking lot, landscaping option are more limited in this space.He stated that large planters are proposed for the islands in the parking lot, and that they will be cast in concrete on site and will be quite substantial in size. He added that they are proposing to add trees to the site wherever possible, but there are some spots where easements are located which will be planted with more seasonal, less permanent options. [emphasis added]

.

There are, as you can see in the collage above, no islands, no planters, and no trees. Who in our City government is responsible to follow-up on such matters?

Why is this Bargeful of Bollards Story Important? It is a prime, very visible example of The Snowman Effect: The inadequate protection of the public interest in Schenectady, due to the appointment and retention at City Hall by Mayor Gary McCarthy of subservient, ineffectual or disinterested public servants (with dismissal of those who do not cooperate), resulting in both rushed, superficial review of submissions from favored applicants, and lax follow-up and enforcement of City Code provisions and applicant promises. [as symbolically depicted here] It has meant, in the Casino Design and Yellow Bollards context, suffering a less attractive and less successful Rivers Casino in Schenectady, and in other contexts, such as the ALCO Bike-Pedestrian pathway, a less safe Mohawk Harbor for those who visit and use the facilities (see this and that).

For more on the Snowman Effect, see “McCarthy only wants snowmen on the Planning Commission“. For an explanation of the Snowmen Metaphor, see our posting “have we learned the lessons of the 1690 Schenectady Massacre?”; for examples, some of which are more subtle than others, check our postings in the Snowmen Effect Category.

The unspoken attitude of our Mayor and the Metroplex Chair seems to be that Schenectady is the old Mohawk term for “Second-Rate-City“. Consequently, they have failed to demand, or at the least strenuously bargain for, the best for our City from Rush Street Gaming and the Galesi Group. The result is a tremendous lost opportunity for Schenectady to truly shine and succeed at our only remaining riverbank land suitable for commercial development and public recreation. The bollard crop along the Mohawk also suggests that Schenectady’s Snowmen/women are not merely on the Boards that review projects, but also in the offices that are supposed to see that reviewed plans are implemented as approved or as promised by an applicant. The situation with readily visible aspects of Mohawk Harbor also makes us wonder what is going on with items that are not readily seen by the public (such as the “shoddy work” recently alleged at a Harborside Drive building).

Having beget a “bummer” crop of bright, yellow, too-tall* bollards, the same municipal officials now stand as mute as snowmen when Rivers Casino complains that it is losing business because of an unfair tax structure compared to its competitors, and seeks tax breaks that would cost the City hundreds of thousands of dollars a year in lost revenue. See “Rush Street must think we are all pretty stupid.”] Leaders and residents should instead point out that one very big reason Rivers Casino finds it hard to compete is that they have built a homely, mediocre, regional gambling facility, with the acquiescence and cooperation of City Hall and Metroplex, despite the promise to create an international tourist attraction for Schenectady.

Financial Realities. Rush Street does not have to meet its bloated projections for Rivers Casino in Schenectady to prosper on the Mohawk. Failing to attract visitors beyond a small geographic radius, Rivers Casino seems content to focus on: Seeking tax breaks; Slots (the most addictive form of casino gambling) as the focus of its gaming growth; Sports gambling (which might siphon off gambling dollars that are taxed at a much higher rate); and attracting Non-gambling spending at the Casino, which helps the bottomline of Rush Street and its associated enterprises, but reduces gaming tax revenue to the State, County and City, and hurts other local businesses. And, City Hall and The County Building seem content with this situation, continuing to call the Casino their Partner.
New Attitude Needed. Schenectady’s government leaders disarmed themselves when dealing with the Casino applicants, giving away leverage that could have assured many additional benefits for the City and County and its residents, like The Giveaways Rush Street has made or promised other prospective casino towns. They will have few if any comparable opportunities, now that the project design and the zoning changes demanded by the Applicants have been approved. Nevertheless, a new attitude that, at the very least, asserts the position of Senior Partner for local government can hopefully salvage a few benefits, avoid some disadvantages, and help restore some civic pride.

Continue reading →

Year Three Begins: slots still reign at Rivers Casino

Posted on March 11, 2019 by David Giacalone

. . .

February 8, 2019 was the 2nd Anniversary of Rivers Casino at Mohawk Harbor. As we’ve previously reported, all increased gambling revenue at Schenectady’s Rivers Casino during its second year of operation came from Slots/ETG play, which were up almost 15%, while table games and table poker had reduced revenue. Here’s the breakdown, using the Monthly Reports made by Rivers to the NYS Gaming Commission:

A comparison of the two Rivers Anniversary Months, February 2018 and February 2019, shows the same relationship as the revenue figures in its first and second years of operation: All added revenue is coming from slots:

We can see, then, that the worrisome trend continued into the first month of the 3rd Year of Operation for Rivers Casino, despite Anniversary Month efforts to promote Poker and Table Games [see, e.g., Casino LED screen at right].

Is Rivers Casino turning into that cursed form of urban “development,” a mediocre regional casino attracting predominantly local patrons who can least afford to gamble, and siphoning off entertainment dollars that were once spread across the local market for leisure activities — and, with no palatable solutions in sight?

No matter what you call this phenomenon — “slotsification”, “slotsploitation”, “Slotsnectady”, etc. — we should be concerned, because slots are the most addictive form of casino gambling. Slots also appeal more than other forms of casino gaming to many members of the most vulnerable groups of prospective gamblers, seniors and the elderly and low-income.

. .

Just in time for the 2nd Anniversary of Rivers Casino operating at Mohawk Harbor, the State Comptroller Thomas DiNapoli issued a 17-page Audit report the first week of February which concluded that the State has failed to assess the human toll of its gambling expansion and needs to better understand the problem, so that its limited resources can be best used to prevent and treat gambling addiction. The stated purpose of the report, “OASAS Problem Gambling Treatment Program (Report 2018-S-39, Feb. 2019), was “To determine whether the Office of Alcoholism and Substance Abuse Services (OASAS) has sufficient treatment programs for problem gamblers.” See, a Gazette article (Feb. 7, 2019), and related column by Sara Foss. ; and a Times Union article and editorial. It seems clear, that we need to understand who is playing slots at Rivers Casino and how we can help assure that having a casino in our midst does not spread the infection of problem gambling in our community.

As we noted in our posting “slotsification on the Mohawk“:

It may be merely a coincidence that this is happening after Rivers Casino operated for a year in Schenectady, but “Studies by a Brown University psychiatrist, Robert Breen, have found that individuals who regularly play slots become addicted three to four times faster (in one year, versus three and a half years) than those who play cards or bet on sports.” From “Slot Machines Are Designed to Addict” (New York Times, October 10, 2013, by Natasha Dow Schüll).

We also noted in that post:

Whatever the cause, Slotsification will increase the social costs to individuals, families and the community from having this Casino in our midst. If the portion of Rivers Casino revenue from slots keeps growing, it will surely lead to the very situation casino opponents most feared: Significant growth in problem gambling and all its consequences, but with a disappointing boost in revenues for the City and County, far less than our “leaders” promised when selling the project and deciding to take the risk of inviting an urban casino to Schenectady.

March is Problem Gambling Awareness Month, and we will soon be posting a piece about Problem Gambling and Slots.

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Slotsification on the Mohawk

Posted on August 13, 2018 by David Giacalone

a Smoking Patio with slots & drinks means non-stop slots play!!

The lower-than-projected total of gambling dollars and customers brought in by Rivers Casino at Mohawk Harbor in its first year of operation disappointed just about everybody. (See, e.g., our post on Projections vs. Reality.) So, it is understandable that the increase so far this year in Gross Gambling Revenue [the amount bet minus winnings paid out, called “GGR”] has been broadly welcomed in our community. Nonetheless, Sara Foss at the Schenectady Gazette was correct to voice concerns last Sunday about the significant increase of gambling revenues this year earned from Slots and other Electronic Table Games [ETG]. See “Foss: Increase in casino revenue comes with social costs” (Sunday Gazette, Aug. 5, 2018). That is because the clear consensus of experts and observers is that slots are the most addictive form of casino gambling.

emptyPockets Indeed, from the perspective of potential social costs and harm to gamblers and their families, the situation is very serious. I’ve tabulated the numbers, and it is clear that additional revenue from SLOTS/ETG (Electronic Table Games) is alone fueling the increased gambling revenue at Rivers Casino in its 2nd year of operation. I call this process “Slotsification”.

Below is a comparison of the first six months in which Schenectady’s Rivers Casino was operating [Feb. to July of 2017] with the same six months in 2018, after one full year of operation. I used the most recent Monthly report posted at the Gaming Commission’s site, and the Casino’s weekly reports.

FEBRUARY to JULY 2018 – Gross Gambling Revenue [GGR] at Rivers Casino at Mohawk Harbor (Schenectady), compared to February to July 2017, the first six months of operation at Rivers Casino:

TOTAL GGR – 9.7% increase [$6,830,160]

2017 Feb-July $70,080,214

2018 Feb-July $76,910,374

SLOTS/ETG GGR – 19.3% increase [$8,510,139]

2017 Feb-July $44,054,616

2018 Feb-July $52,564,755

TABLE GAME GGR – – down 6.0% [$1,297,613]

2017 Feb-July $22,886,161

2018 Feb-July $21,588,548

POKER TABLE GGR – – down 11.7% [$368,091]

2017 Feb-July $3,145,137

2018 Feb-July $2,777,046

In sum, Total GGR is up almost 10% at Rivers Casino, with Slots/ETG revenue up 19.3%, but both Table Game and Poker Game GRR down compared to the same months in 2017. The increase is all from Slots.

In addition, looked at in the aggregate, Slots/ETG revenues were 63% of GGR in Feb-July of 2017; but they were 68% of GGR in Feb-July of 2018. It would be helpful to know whether more people are choosing to play slots, or whether slots players are playing longer.

follow-up (February 9, 2019): The figures for the full 12 months of February 2018 to January 2019, Rivers Casino’s 2nd year of operation, continue the Slotsification process. Total GGR was up 9.25%, with Slots up 14.7%, but Table Game and Poker Table revenues down slightly over the first 12 months of operation at Rivers Casino. (Click on this chart for a larger version.)

Furthermore, for the full year since the 1st Anniversary of Rivers Casino, Slots/ETG revenues were 68% of the Total GRR for the Casino.

It may be merely a coincidence that this is happening after Rivers Casino operated for a year in Schenectady, but “Studies by a Brown University psychiatrist, Robert Breen, have found that individuals who regularly play slots become addicted three to four times faster (in one year, versus three and a half years) than those who play cards or bet on sports.” From “Slot Machines Are Designed to Addict” (New York Times, October 10, 2013, by Natasha Dow Schüll).

Compare other Casinos: Although Slots revenue is up somewhat in Las Vegas recently, slots have been down or sluggish in other regions. Notably, not one of Rush Street’s three other casinos (one in Illinois at Des Plaines; and two in Pennsylvania, SugarHouse in Philadelphia, and Pittsburg Rivers) has had more than a small uptick in slots this year, and many months have been down. [Click for an example of recent Pa. stats; the Des Plaines IL Rivers Casino shows only a 1.32% increase in their slots category (“EGD”) for the first half of 2018; see p. 4 of this Report.]

Is Rivers Casino in Schenectady trying to “slotsify” its casino revenue, to maximize its profits? Is this also a result of growing problem gambling among Schenectady’s slots players, along with a growing indifference by those who like table games to spending time along the Mohawk?

What about Millennials? Has Rivers also decided to make more money by luring in millennials, who spend on food, drink and entertainment, rather than on gambling when at Mohawk Harbor? That helps Rush Street and Galesi Group profits, but does not increase gambling tax revenue receipts for the City and County. [See the article on Millennials and Casinos quoted at length below.] The Casino does not have to reach its bloated projections to be a business success.

Whatever the cause, Slotsification will increase the social costs to individuals, families and the community from having this Casino in our midst. If the portion of Rivers Casino revenue from slots keeps growing, it will surely lead to the very situation casino opponents most feared: Significant growth in problem gambling and all its consequences, but with a disappointing boost in revenues for the City and County, far less than our “leaders” promised when selling the project and deciding to take the risk of inviting an urban casino to Schenectady.

Will community leaders such as NYS Assemblyman Phil Steck, who say we must help the Casino succeed, turn a blind eye to the added hazard to our Community? Steck, who we’ve been calling “the Assemblyman from Mohawk Harbor” since his letter in support of Rivers Casino in June 2014, recently wrote that “Revenue raising is paramount”, after bemoaning the negative effect on the poor and vulnerable. This is, of course, the dilemma casino opponents saw when they opposed bringing one to Schenectady. The monograph “Poverty and Casino Gambling in Buffalo” (Center for the Public Good, by Sam Magavern and Elaina Mulé, January 19, 2011, gives a good summary of the dangers for already-struggling cities that turn to casinos for revenue. And, it highlights the obvious:

“any trend away from slot machines, which are the most lucrative form of casino gambling, would hurt the state’s revenues from casinos.“ [quoting Allen Godfrey, executive director of the Mississippi Gaming Commission]

And, consider “State Gambling Revenue Takes Hit as Millennials Bring New Habits to Casinos” (Pew Trust, Stateline Article, by Elaine S. Povich, Sept. 15, 2015), which opens with this statement:

Casinos across the nation are suffering from a generation gap, especially at the slot machines, as young people seek more exotic electronic games like the ones they can play on smartphones from anywhere.

That’s a problem not just for casino operators, but for the 23 states that rely on revenue from casino taxes, particularly from lucrative slots, to help balance their budgets and fund new priorities.

WHAT CAN WE DO?

see-no-evil-monkeyBlue It is easy to be flippant and say, “Don’t ask Casino Opponents, we told you so,” back when our elected and appointed political leaders, and businesses hoping for a Casino Gravy Train, refused to even acknowledge the risks. Well, we did tell you so (e.g., this post), precisely because we feared just this situation: Big Problems without Palatable Solutions. No Answers for getting out of the Casino Casualty Syndrome and the related suffering of families and individuals; lots of temptation to seek more favors for the Casino, such as legislation with tax reductions or gimmicks (such as a marketing allowance), or spending $2 million on a Large Vessel Dock along Mohaw Harbor; plus, a lot of uncertainty and pain for employees at the Casino and associated businesses, if the Casino declines slowly, and especially if it fails and closes.

Even if they secretly know the damage that is likely to happen to our Community, the temptation for our “leaders” to push on is great, refusing to confess their short-sighted mistakes, pressuring local businesses and civic groups to patronize Rivers Casino at Mohawk Harbor, and looking for legislative “solutions.” One thing for sure, the cognitive dissonance that we hear from politicians like Phil Steck does not help one bit. The Assemblyman tells us:

Perhaps some day there will be no casino at Mohawk Harbor. No one can predict the future; it is sensible to plan for an alternative. But, Rivers is here, so we need it to be as successful as possible. One constituent wrote to me on this subject citing the old adage: “Let’s take the lemons and make them into lemonade.”

LemonLawLogo No one should be surprised that the Assemblyman from Mohawk Harbor offers us no Lemonade Recipe and suggests no likely ingredients for the mix (other than a “not-a-bailout” tax break in the form of a marketing allowance that is too silly to even call specious). There is no secret, magical “sugar” to sweeten our Casino Lemons, and no law that will tow the wreck away. We are all left puckering up, and wincing, as the future rushes toward Slotsnectady, a City that once could Light and Haul the World, but now glories in “smart” lamp-posts, its homely-but-bossy Casino, and its beer-cultured Renaissance.

. . share this post with this short URL; https://tinyurl.com/Slotsification

. . this is one of the mastheads we used when this website was called StopTheSchenectadyCasino.com:

. . they gambled with Schenectady’s future, putting possible revenues ahead of the social costs, and acting as if there was nothing to lose . .

Appendix: Why are Slots so Addictive?

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too many underage gamblers at Rush Street facilities?

Posted on July 13, 2018 by David Giacalone

The Times Union (here) and the Gazette (here) are reporting that Rivers Casino at Mohawk Harbor’s operator, Rush Street Gaming, is appealing a penalty under consideration by a NYS Gaming Commission hearing examiner for violations of “regulations regarding permitting an underage patron on the gambling floor” and “permitting a person under 21 to make a wager at its facility.” Rivers wouldn’t discuss the dispute at this point, pointing to the pending hearings.

You may recall that Rush Street was fined $6000 last year for allowing a minor to gamble at its Schenectady Rivers Casino. See “Underage gambler caught — but only after he won $1,300 on slot machines: Schenectady 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).

In 2016, Rush Street touted its record for ensuring that only appropriate persons are allowed in its casinos:

“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.” (See “New York to step up effort to battle problem gambling“, by Haley Viccaro, Schenectady Gazette, March 2, 2016).

Despite that assertion, a bit of Googling this evening uncovered numerous instances of Rush Street casino cousins in Pennsylvania being fined for violating underage gaming regulations. For example, on October 4th, 2017, the Pennsylvania Gaming Board fined Rush Street’s SugarHouse Casino $10,000 for failing to prevent underage access to the gaming floor. As we noted two years ago, the Pennsylvania Gaming Control Board had also announced, in a press release on May 23, 2012, that SugarHouse was fined $70,000 “for seven instances where underage individuals [ranging in age from 17 to 20] engaged in gaming.”

Similarly, the Rivers Pittsburgh casino has had multiple underage gaming fines. For example, in February 26, 2014, the Pennsylvania Gaming Control Board levied a fine of $15,000 against Rivers Casino in Pittsburgh for permitting an underage patron to gamble and consume alcohol at its property. The Pa. Board had also levied a $45,000 fine, in November of 2012, for four such incidents earlier that year.

Moreover, Schenectady’s Pennsylvania Cousin Casinos have both also had multiple fines for permitting persons on the self-exclusion list to gamble, and even for extending credit, and sending solicitations to such persons. E.g., here and there. Should we expect the same here, too?

The fines are obviously meant to motivate better procedures and practices to prevent underage and self-exclusion-list patrons into the Casino. Perfection can’t be achieved, but a real commitment, starting at the top and embraced by all Rivers employees, will hopefully mean a lot fewer violations. “Expect Tough Monitoring” should be the message in our community — especially aimed at our area colleges and high schools.

Here is an excerpt from an earlier post at this website, discussing underage gambling:

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).

Also, check out a program sponsored by the Pennsylvania Gaming Control Board, called “What is Really At Stake“, to learn about the risks of underage gambling.

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the riverbank Trail at Mohawk Harbor is not safe enough

Posted on June 20, 2018 by David Giacalone

. . Updates (Oct. 15, 2018): see “poorly planned safety railing going up along Mohawk Harbor trail“

(July 3 and Oct. 5, 2018): Below we explain the reasons why we believe the Alco Heritage Trail is unsafe. When pressed on the safety issue in June, Metroplex Chair Ray Gillen insisted that a fence or guardrail would be installed “soon”. But, I have continued to wonder why neither the County or City, nor the hosting Casino, has installed temporary warnings signs and devices (i.e., quick and inexpensive orange safety cones and yellow tape), to keep visitors away from the steep, rocky slope, and slippery gravel. They plan to host thousands at Mohawk Harbor to see the Fireworks and concerts on July 3 and 4, and many events all summer. [photo at right taken at 11 AM, July 3] So far, the media has shown no interest in this issue.

(Oct. 5, 2018): Ray Gillen wrote in an email to the editor of this weblog, in the third week of September, that a fence would be built along the trail buffer “in October.” As of noon October 5, there is neither a fence or guardrail and no temporary warning devices; see the photo below, taken today:

Original Posting

. . the above collage summarizes issues discussed in this web-post (click on it for a larger version)

What did you think the ALCO Heritage bike-pedestrian Trail would look like when completed? The Trail runs through Mohawk Harbor, past the Marina and amphitheater, and behind the Rivers Casino and its Landing Hotel. In each rendering submitted by the developers, Galesi Group and the casino owner and operator Rush Street Gaming, the riverside buffer between the Trail and the Mohawk River is shown green, landscaped and gently sloping to the riverbank. For example:

. .

. . renderings of rear of Rivers Casino and Hotel: above June 2014; below July 2015 . .

In addition, when the Site Plan was approved by the Planning Commission in 2015, the relevant and still-current provisions of the C-3 Waterfront Zoning Code of the City of Schenectady stated [emphases added]:

(4) A single multi-use pedestrian and bicycle trail shall be constructed by the applicant with the following construction and design standards .. :

[1] The trail shall have a width of at least 10 feet along the length of the Mohawk River shoreline and shall endeavor to be located reasonably adjacent to the undeveloped shoreline whenever practicable.

[2] There shall be an additional two feet of graded area on either side of the trail and an additional ten-foot buffer between the trail and the river.

[3] The trail shall be constructed of asphalt, synthetic composite, concrete, pavers, or other materials as approved by the Planning Commission.

[4] Trails and esplanades may include landscaped areas, sitting areas, benches, gazebos and suitable lighting facilities.

At no place has the required 12-foot buffer been installed on the riverside of the Trail. There also is no place for any sitting areas, benches, etc., along the riverbank side of the trail.

Also, the New York State Department of Transportation has issued guidelines to apply when a bike trail is near a steep slope. If the slope is less than 4.92 feet from the Trail, a safety rail 4.59′ high is required. The design requirements of State DOT depicted in the following image appear to be directly applicable to the Mohawk Harbor trail, given the steepness of the slope and the drop of far more than the 0.3 meters [0.98 ft.] over the slope:

Despite any expectations created by the above materials, the next set of photos shows what the ALCO Heritage Trail actually looks like, as do photos in the top collage:

. .

With only a loose gravel buffer of 3.5′ to 7′ on the river side of the trail (rather than the required 12 feet of graded buffer), and a very steep slope covered with sharp, rip-rap rocks, without guardrails installed, it certainly does not look safe enough to me. Part of my concern, of course, in addition to the normal mishaps on a busy shared use path, is the fact that the Trail passes within a couple yards of casino, restaurant and barroom patios, whose patrons will not all be sober, as well as by the Mohawk Harbor Marina and amphitheater.

. . above: ALCO Heritage Trail seen, with zoom lens, from Freeman’s Bridge (May 29, 2018) ..

Nonetheless, because I am neither a bike-ped trail planner nor engineer, I decided to share my concerns with Paul Winkeller, the long-time Executive Director of the New York State Bicycling Coalition, to see if my concerns were valid. I sent Paul an email containing the collage at the top of this post and a few other photos. Paul wrote back the next day and forwarded my materials to a few other NYBC Board members, including Emeritus Board Member Ivan Vamos, a retired engineer and official for several relevant New York State agencies, who spent a few decades helping to implement bike trails and greenways. [read more on the backgrounds of Mr. Vamos and Mr. Winkeller, here.]

Engineer Ivan Vamos wrote back less than an hour after he received my forwarded inquiry, saying:

I agree, it looks like a bad solution for bicyclists and perhaps also for the handicapped with “walkers” and other aid devises. The rough gravel shoulder above the rip-rap was probably the selected solution to handle significant run-off from paved areas upslope; this was a cost-effective solution for that issue, versus a more sophisticated drainage plan. The problem is that if a bike or other wheeled devise, women with high heeled shoes, or people with walking aids (like canes) stray on to the gravel, they will fall onto the sharp rip-rap.

I suggest a fence with “rub-rails” that keeps bicyclists of different heights and others on the trail. If observed use of the trail looks to attract a lot of strollers who tend to come to look at the River/harbor as part of their outing, it may be advisable to have the rail at a height that can be leaned on, benefiting walkers, but still giving some protection for bicyclists.

Although noting that he was not a planner or engineer, Executive Director Winkeller wrote, “Of course it does not look safe!” A few days later, he offered the assistance of New York Bicycling Coalition to Metroplex Chairman Ray Gillen in designing a safe shared use path (and got no reply), and added that he hoped I would continue to press the safety concerns:

“This is the height of the cycling season which means higher trail use and more of a chance of crashes. This is not a safe design, of that we all agree.”

County Legislators Have Not Replied. After three weeks, I have had no reply from several County Legislators to questions I had sent them about the timing of the official opening of the Trail and whether additional safety measures were planned. That was prior to my correspondence with NYCB.
Corporation Counsel Has Not Replied. At the end of May, I also wrote to Schenectady’s Corporation Counsel, Carl Falotico, informing him of the comments from NYCB leaders, and asking whether the developers had received some sort of waiver from the Zoning Code requirements for the Harbor Trail. Three weeks later, I have not received a substantive reply from Mr. Falotico, who promised a reply when he was “ready to schedule a meeting” on the issues.
update (Oct. 4, 2018): More than four months later, I have yet to receive any substantive reply from the City’s Legal Department, the County Legislature of Law Department, or Metroplex, nor any suggestion as to why/how the specific requirements of our Riverfront zoning code for this specific trail could be ignored when constructing the trail.
Jennifer Ceponis, of the Capital District Transportation Committee, raised the issue at a Committee meeting on June 12, 2018. Jennifer reported that the City of Schenectady was “working on the problem.”

Bicyclists are already using the ALCO Heritage Trail, which connects Glenville’s Freedom Bridge road and Erie Boulevard with a riverside trail now ending at River Street in the East Front Street neighborhood, and then the Stockade. The CDPHP Bike Share program recently installed a bike share station at Mohawk Harbor, adding to the number of cyclists using the Harbor’s shared-use trail. Summer concerts at the Marina’s amphitheater, drawing audiences in the thousands, and other Harbor and Casino events will also increase the number of pedestrians using the Trail.

If the information above leaves you wondering about the safety of the ALCO Heritage Trail, or the process that has created a shared-use path quite different from our expectations, please let County and City legislators, and staffers working on bicycle planning and implementation know of your concerns.

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$$? FINANCING THE TRAIL: The City of Schenectady C-3 Waterfront District zoning code, as quoted above, states that the pedestrian and bicycle trail “shall be constructed by the applicant.” (emphasis added) Nonetheless, the County and Maxon Alco (the Galesi Group company that owns Mohawk Harbor) entered a Harbor Trail Easement Agreement in March 2016 stating, “The parties agree that the maximum cost to Maxon Alco for the construction of the Trail shall not exceed $100,000.00. County shall be responsible for all costs and expenses for Trail construction which exceed the Maxon Alco Contribution.”
- Any additional expense to build the trail, perhaps over a million dollars, is coming from New York and County taxpayers.
- In a March 2016 news article in the Albany Times Union, the Galesi Group bragged about “donating $100,000” to the cost of the Trail.
- Maintenance. The Harbor Trail Easement Agreement also states that:
  “4. Maintenance of the Trail. Following construction of the Trail and the commencement of the Uses, Maxon Alco agrees to perform the non-structural maintenance including snowplowing and removal of debris/litter from the Trail. County shall be responsible for all other Trail maintenance, including any required repair or replacement of the Trail pavement/surface and all the Trail fencing, signage, striping and other trail related materials located upon the Easement Areas.”
- The original C-3 Waterfront Mix-ed Use District provisions included the following sentence, which was removed in the 2015 amendments requested by the Developer: “All maintenance of the waterfront esplanade and amenities shall be the responsibility of the developer.” The original permanent, perpetual easement “assuring public access to and public enjoyment of the waterfront” was, of course, also removed at the “request” of the developer.
Taxpayer-funded Amenity: Having a shared-use path running through Mohawk Harbor is clearly an asset in selling and renting homes in the complex, and attracting tourists to its hotels. Thus, the short list of Extras on the Amenities page of the project’s River House apartments includes “Direct access to the NYS Hike Bike Trail.” In Philadelphia, Rush Street Gaming has spent millions of dollars to expand an already grand promenade and bike trail. Do our local leaders need more training in negotiating on behalf of our residents and taxpayers?
. . . update (Oct. 4, 2018): A set of informational markers were recently installed along the ALCO Heritage Trail. See “Trail markers highlight locomotive plant’s heritage” (Albany Times Union, Sept. 21, 2018, by Tim Blydenburgh). The TU article states, “The county Department of Economic Development and Planning built the signs using $30,000 provided by the county Legislature. Paul Singer Design, based in Brooklyn, designed the 11 trail markers.”
- The signs are also worrisome from a safety perspective, as they seem to be placed much closer than necessary to the shared-use path, creating a hazard for pedestrians stopping to read the signs and for cyclists. When this safety point was made to Metroplex Chair Ray Gillen, he wrote back “We think the markers look great.”

p.s. You may recall my first Infamy Montage which “celebrated” the opening of Rivers Casino on the anniversary of the Schenectady Massacre, when only Snowmen guarded the open gate of the Stockade (while the assigned guards relaxed at a nearby pub), allowing a band of French soldiers and marauding Indians to burn down the Stockade. Below is my 2nd Infamy Montage below, which suggests that having Snowmen at the Gates of our City has led to an unseemly, unsafe, riverbank, trail, and harbor scene.

follow-up (June 26, 2018): At a public meeting on June 21, 2018 (on the Extension Feasibility Study for the riverfront trail), Schenectady County Metroplex Authority chair Ray Gillen, told the author of this posting that there will be a fence or rail put up along the slope near the ALCO Heritage Trail in Mohawk Harbor. Given this acknowledgement of the possible safety hazard, I wondered whether any temporary safety measures were taken along the Trail — such as yellow tape or safety cones — in anticipation of the first Harbor Jam outdoor concert last Saturday, June 23, at the Amphitheater of Mohawk Harbor, which is across a lawn from the riverbank.

follow-up: When taking photos from Riverside Park of the Casino’s July 3 fireworks, using a powerful zoom lens, I saw — as would be expected — a line of people of all ages and sizes standing along the top of the slope in the dark and gazing out over the River at the fireworks.

why not? . . cautiontaperoll . . orangesafetycone

There were no such temporary safety measures Saturday afternoon. At about 3 or 4 cents a yard, what excuse is there for not stringing Caution Tape? Is this another case of our fearless leaders avoiding bad publicity at any cost — and at any risk?

Moreover, apparently due to heavy rain earlier that day, the gravel between the Trail and the slope was slippery underfoot. When trying to shoot a photo from the gravel, my foot sunk into it, and the gravel slipped toward and under some of the rip-rap stones at the top of the slope. In addition, I saw a full-grown man, while in conversation with another man while standing on the gravel buffer, absent-mindedly step up on the rip-rap on the edge of the slope behind the Casino. What do you supposed little boys and girls will do?

a slow week at Mohawk Harbor?

Posted on June 2, 2018 by David Giacalone

Amphitheater, 3 PM Memorial Day

Quick online searching* confirmed my assumption that casino resorts would be among the most popular destinations for America’s millions of travelers over the Memorial Day Weekend. So, given a refreshing breeze and blue skies, I was a little surprised by how few people were out and about at Mohawk Harbor mid-afternoon on Memorial Day. I had stopped by to catch the tail end of the Rollin’ on the River Car Show and Auction, hosted by Rivers Casino, and then spent about an hour sitting and strolling around the grounds and taking photos.

During my visit on Memorial Day:

There was only one boat docked in the Marina the entire time. [The same was true on my return the next day; however, on May 30, there were three boats docked, the most I have ever seen in the Marina.]
No kayaks appeared to be checked out [ditto May 29, 30]
No one else used any of the picnic tables or played on the large lawns between the River House and the Casino
A few pairs of bicyclists and a couple of dog walkers used the mixed-used path that runs through Mohawk Harbor, but I saw none of them stop while traversing Mohawk Harbor.
No one spread a blanket or sat at the lovely, manicured Amphitheater, despite its unobstructed view of the Marina.

Perhaps all the Holiday Weekend trekkers had already started their return trips home, or were squeezing in one last cook-out at a relative’s or friend’s backyard. It made me wonder, though, how much gaming action had been going on at Rivers Casino over the weekend. The weather on Saturday and Sunday had enough rain in the forecast to motivate indoors activity such as that found inside the Casino. So, I checked out the weekly Revenues report for Rivers Casino that went online yesterday, Friday June 1st. However, as you can see by clicking on the image to the left of this paragraph, last week Rivers Casino at Mohawk Harbor had its worst week for gaming revenues since the end of March, with a total GGR of $2,876,146 for the week ending Sunday May 27, 2018.

If you have not spent time on the greener side of Mohawk Harbor, you might enjoy this Slideshow, which has photos taken May 28, 29 and 30, 2018.

This slideshow requires JavaScript.

view north toward River from Amphitheater

*/According to the AAA, the draw of gambling made Las Vegas NV the 4th most chosen destination for Memorial Day Weekend. 2018. Gambling hubs such as Denver and Phoenix were also in the top ten destinations list for the holiday weekend.

coming in June, Druther’s at River House . .

SPORTS BETTING along the Mohawk (with updates)

Posted on May 14, 2018 by David Giacalone

This morning, the U.S. Supreme Court overturned the federal Professional and Amateur Sports Protection Act, which dates back to 1992, and is known as PASPA. PAPSA prohibited most States, including NJ and NY, from allowing sports betting. For a good analysis of the decision (understandable for the non-lawyer) see the premier weblog covering the Supreme Court, SCOTUSblog, “Opinion Analysis: Justices strike down federal sports gambling law“. The Court decision is called Murphy [as Governor of New Jersey] v. NCAA; click here for a pdf. version of the full opinion.

This website will surely treat this topic again, to see how it impacts NYS and especially commercial casinos such as Rives Casino at Mohawk Harbor. Two important points (and see the Red Check below for updated information from theTimes Union):

Under the current gaming law, only full casinos may offer sports betting once it is legal under federal law. They must get a specific license for that. “Racinos”, such as the Saratoga Casino, already have let it be known that they want a law letting them do it, too.
Under the current NYS Gaming Law, slot machine revenues at Rivers Casino are taxed at a 45% rate, and any other type of gaming revenues are taxed at 10%. And, according to the Times Union, “State Senate Racing, Gaming and Wagering Committee Chair John Bonacic carries legislation that would . . . impose a state tax of 8.5 percent on sports wagering gross revenue.” So, if Rivers Casino slots players move a significant amount of their money over to the Casino’s Sports Betting lounge, or another Sports Wagering location (including online offerings), tax revenues from Rivers may decline, despite more betting go on at the Casino. Naturally, Rivers Casino hopes to lure sports bettors into other parts of the Casino, adding to gaming revenues.

Before 11 AM today, the Albany Times Union put online a good, short explanation on the possible impact on NYS casinos and racinos, in “Supreme Court ruling opens prospect of NY sports gambling: Four major NY casinos may be able to offer sports books” (by David Lombardo, online May 14, 2018). Here are excerpts from the TU article:

The state law that allowed commercial live-table casinos in New York included a provision authorizing wagering on sporting events if the federal law was found unconstitutional or changed. Casinos must have a license specifically to offer sports gambling and gambling on sports can only be offered in “lounge” areas at a casino.

. . . Under current law, gambling operators besides the commercial live-table casinos, such as NYRA, the Saratoga Casino Hotel and Capital OTB, would be shut out from offering sports betting. But legislation from Sen. John Bonacic, an Orange County Republican and chair of the state Senate’s racing committee, would allow those operators to act as affiliates to the casinos and offer sports wagering.

. . James Featherstonhaugh, a minority owner in Saratoga Casino Hotel, anticipated the state Legislature could begin working on legislation addressing sports gambling this week.

“I would expect it to be a lively topic between now and the end of the legislative session,” he said.

update (May 14, 2018, 7 PM): The Times Union has updated its article significantly, changing its subheadline to “State legislature will likely overhaul gambling landscape”, and reporting that

“Gambling operators and state legislators in New York are scrambling to craft a new regulatory framework”
” The state Gaming Commission must also adopt regulations and issue a sports gambling license before the casinos could offer sports wagering. That process will likely be preempted by the state Legislature and Gov. Andrew M. Cuomo. . .Cuomo, speaking to reporters in Manhattan on Monday, rejected the idea that sports gambling in New York could be rolled out using the broad framework crafted in 2013. He said a new law was needed if the state wanted to proceed with sports gambling.” “We’ll do an economic analysis and a legal analysis, but nothing’s going to happen this year because there’s literally just a number of days left in the legislative session and this would be a very, very big issue to tackle,” Cuomo said.
The only local player with the potential to offer sports gambling under current law is the Rivers Casino & Resort in Schenectady, which has been eagerly preparing for the Supreme Court decision, according to their parent company, Rush Street Gaming.”We look forward to adding sports betting across all our gaming platforms as soon as possible,” Rush Street Gaming CEO Greg Carlin said in a statement.
State Senate Racing, Gaming and Wagering Committee Chair John Bonacic carries legislation that would allow for sports gambling on online platforms, impose a state tax of 8.5 percent on sports wagering gross revenue, collect fees for the operators of sports leagues, and authorize gambling on college sports.

follow-up (1 AM, May 15, 2018): The Schenectady Gazette put up a comprehensive piece online this evening. See “Sports betting legalized, will be added in Schenectady as soon as possible“, by John Cropley. In the article, both Greg Carlin of Rush Street Gaming and Schenectady Mayor Gary McCarthy say they want to bring sports betting to Schenectady as soon as possible. In a comment to the Gazette article, I raised the same theme as above on the questionable size of any increase in overall tax revenues to be paid by Rivers:

[Comment by David Giacalone:] Mayor McCarthy is already counting chickens early and praying for golden eggs. If enough slots betting (taxed at 45%) is instead bet on sports (taxed at 5 or 8.5 or 10%), taxes paid by Rivers Casino to the State may amount to a lot less than expected, even if Rivers revenues rise. Grandpa and Uncle Joe might just head for the Sports Wagering Lounge at Rivers, leaving Grandma and Aunt Tillie at the slots; or, all four of them might decide that sports wagering can be a lot more stimulating than a slots trance. As a result, former slots players might generate a lot less tax revenue even though visiting Rivers Casino as often as before.

I know why Rivers Casino wants to start sports wagering ASAP, but I am not so sure why the Mayor of Schenectady is in such a big hurry.

In a related matter, in case you missed the news, as of May 4, 2018, Capital OTB now has a branch inside Van Slyck’s Bar at Rivers Casino.

update (July 17, 2018): David Lombardo of the Times Union Capitol Confidential Blog posted a piece yesterday afternoon titled “State looks to offer online sports gambling without new law” (July 16, 2018). That position by the State Gaming Commission is contrary to Gov. Andrew Cuomo’s stated preference in May. Commission acting-Executive Director Ron Ochrym said to the board. “There are however, a number of thorny policy [areas] that staff have been considering, including whether the existing law can be read so as to authorize mobile wagering without new statutory enactments, and, if so, whether to limit the number of skins available.” The TU blog notes that the State law reads: “An operator shall accept wagers on sports events only from persons physically present in the sports wagering lounge”.

And see, “New York preps limited rollout of sports betting” (Times Union, August 8, 2018, by David Lombardo). “The state Gaming Commission is working on regulations that would make sports gambling available at New York’s four privately run full-scale casinos, including Rivers Casino & Resort in Schenectady.

“But beyond the casinos, sports gambling probably won’t initially be allowed at other wagering-industry operations, such as the New York Racing Association tracks or the Saratoga Casino Hotel. It’s also unlikely to be available on mobile platforms, according to state Sen. John Bonacic. . . . It’s not clear when those draft regulations will be publicized, even though [Gaming Commission acting-Executive Director Ron Ochrym] said at the commission’s May meeting that they would be available ‘in the near term. The consensus of the gambling community in New York is that the commission is waiting for a green light from Gov. Andrew M. Cuomo to release the regulations.”

BTW: Amy Howe’s analysis of Murphy v. NCAA for SCOTUSblog points out that:

Today’s ruling could also have a much broader reach, potentially affecting a range of topics that bear little resemblance to sports betting. For example, supporters of so-called “sanctuary cities” – cities that refuse to cooperate with federal immigration officials to enforce immigration laws – have cited the 10th Amendment in recent challenges to the federal government’s efforts to implement conditions on grants for state and local law enforcement. Challenges to the federal government’s recent efforts to enforce federal marijuana laws in states that have legalized the drug for either recreational or medical use may also be based on the 10th Amendment.

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a quick look at del Lago’s exterior

Posted on April 7, 2018 by David Giacalone

. .

. . above: main entrance to [L] del Lago Casino; [R] Rivers Casino Schenectady

Driving back to Schenectady the day after Easter, I noticed that del Lago Resort & Casino is located right at Exit 41 of the New York Thruway, at Waterloo, NY, in Seneca County. Having only seen renderings of del Lago, when concluding it looked considerably more attractive than Rivers Casino at Mohawk Harbor, I thought I’d take the opportunity to stretch my legs and take a few photos of the exterior of del Lago in the brick-and-mortar world.

. . above: rear of del Lago Hotel and side entrance of Casino

You can judge for yourself from the two collages below (click on each for larger versions), one of which concentrates on the Casinos and one on the Hotels and Parking Ramps, how the $440 million spent on del Lago turned out, on the outside, compared to the $320 million to build Rivers Casino in Schenectady. A few additional images are also included after the collages. (You might note that del Lago appears to have no large, bright LCD screen or freestanding pylon.)

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Here are two more views of the del Lago Hotel:

. .

. . . And, two views of the rear entrance to the del Lago Casino:

. .

Plus, the del Lago entry/exit driveway, at 1133 State Route 414, seen from near the self-park lot:

. . . .

Today’s Daily Gazette tells about the banner March revenues for Rivers Casino and other casinos, “March was most lucrative month yet for Rivers Casino
Data show gambling surges annually in late winter; other casinos also enjoyed strong March revenue” (by John Cropley, April 7, 2018).
Rivers Casino was never asked by our Mayor to enter into a Host Community Agreement, while del Lago Casino (then known as Lago) entered into a comprehensive HCA with the Town of Tyre, Waterloo, and Seneca County.

Distances. Del Lago is 43 miles from Syracuse, 50 miles from Rochester, 90 miles from Utica, 95 miles from Binghamton, 105 miles from Watertown, 112 mlies from Buffalo, and 156 miles from Schenectady. In an Appendix at the bottom of my Casino Choices posting from January 2017, I have compiled the distances of the various casinos from Albany, Binghamton, Buffalo, Ithaca, Kingston, Rochester, Syracuse, Watertown, and Utica.

bum’s Rush needed

Posted on March 28, 2018 by David Giacalone

. . “get dose bums outta here!” . .

And, so it begins: “Rivers, Del Lago casinos ask state for better terms: All four non-Indian casinos in state are missing their financial targets” (Schenectady Daily Gazette, by John Cropley, March 28, 2018):

Little more than a year since their grand openings, two of New York’s four non-Indian casinos are asking the state for financial help.

Rivers Casino & Resort in Schenectady and Del Lago Resort and Casino in Seneca County are both making their cases with state lawmakers as the negotiations for the 2018-2019 state budget wind down to the final hours in Albany.

Details on their requests are elusive and, given the secretive nature of deal-making in the Capitol, quite possibly subject to change or outright rejection.

. . . Details were likewise hazy on the request by Rivers.

A New Jersey public relations agency working for Rivers said there would be no comment on the matter.

A lobbyist reportedly working for the casinos did not return a call seeking comment.

. . . However, Assemblyman Phil Steck, D-Colonie, whose district contains Rivers Casino & Resort, said he has been given a rough idea of what Rivers is requesting, and said he endorses it.

Trying to save Schenectady’s Lady Liberty from pols and pirates is monopolizing my time again today, so I can’t go into detail about taxpayers getting the Bum’s Rush from Rush Street, but it probably makes more sense to see what, if anything, is done with their request. [see update below: Cuomo won’t play]

Here is what I said in a comment at the Gazette article:

On July 14, 2014, we asked at the “Stop the Schenectady Casino” weblog: “How big of a gamble are the casino cheerleaders willing to take?. . . Does the shiny future they predict for Schenectady include the sight of a failing casino project along Schenectady’s riverfront and the inevitable request for tax breaks and financial assistance that we can expect once gaming revenues shrink along the Mohawk? [see https://tinyurl.com/unpromisingCasino ]

When Rivers hired Rob Long as its new General Manager last December, we also noted that Long had guided the development and opening of Rush Street’s very first casino, Riverwalk in Vicksburg, Mississippi. Rush Street sold that Casino in 2012, just four years after it opened, and after failing in their request for a 60% reduction in their property tax assessment. Have Rush Street and Galesi Group drawn up their tax assessment challenges yet? Are they looking for a buyer? What will Mr. Steck do for them next?

In addition to checking out https://tinyurl.com/unpromisingCasino, see “casino projections vs. casino reality” and links therein. Stay tuned, and watch out for those pick-pockets and Rushing Bums.

update (4 PM, March 28, 2018): See “Cuomo says he is not interested in bailing out casinos” (State Of Politics. March 28, 2918). Article also has letter from State Senator Micheal Ranzenhofer, wanting help for existing casinos hurt by creating del Lago Casino, not for del Lago.

[8PM update] See “Cuomo: No bailout for Rivers, del Lago casinos” (Gazette, John Cropley, March 28, 2018).

The Gazette Editorial Board posted a piece online this evening, titled “Editorial: No state financial deals for casinos” They got themselves into this mess; they can get themselves out”. It concludes:

There are many others in this state that aren’t getting what they need and that deserve more money from the state — many others in severe need through no fault of their own.

The casinos don’t fall into that category, and state lawmakers shouldn’t cave in to their appeals.

[March 29 update:] In the TU article “Casino seeks state help in marketing” (Sept. 29, 2018), Assemblyman Phil Steck is far from elegant defending Rivers Casino request for a 10% marketing allowance reduction in its gaming tax obligations to the State:

“It’s not saying, ‘State, come in and give us money’; it’s saying, ‘We believe we need to expand the market for our product, we need an allowance for marketing,’ and I think that’s a reasonable position for a business to take,” said Steck, a Democratic lawmaker from Colonie, of the request by the Schenectady casino, which is located on the former Alco site on Erie Boulevard.

“What they’re saying is, ‘If we spend 10 cents on marketing instead of giving you 100 cents on that dollar, we’re going to give you 90 cents,’ and that makes a lot of sense because if the total amount of revenue expands as a result of their marketing effort, the state’s going to make more money anyway and so will the city,” Steck said.

The article continues, making Steck sound rather conflicted:

“While Steck declined to call the request by Rivers a bailout, he conceded he is not a big fan of casinos, arguing they are a tax on the poor and middle class.”

Moreover, good luck figuring out what State. Senator Jim Tedisco is thinking:

State Sen. Jim Tedisco, R-Glenville, said that since Cuomo “has seemingly closed the door to any tax adjustment,” he believes “a more plausible approach would be to ask for marketing assistance with also a good portion to go toward property tax reduction for Schenectady and surrounding communities.”

update (March 30, 2018): The Times Union editorial board weighed in this morning with “Editorial: Say no to casino subsidies“, including a nifty illustration by Jeff Boyer [click on the thumbnail to the left]. It notes which of our representatives are for and against such handouts, and concludes:

All the signs were there years ago that the casino expectations and promises, especially upstate, were overblown. Now that those warnings are proving true, these enterprises seem to hope New York will behave like a classic loser who digs deeper into his pockets in the hope of a winning hand. There’s a gambling term state leaders would do well to learn: Pass.

Casino Projections vs. Casino Reality

Posted on January 7, 2018 by David Giacalone

Year-end numbers are in for 2017, and the City of Schenectady has received approximately $2.1 million in gaming tax revenue as the Host City of Rivers Casino at Mohawk Harbor, based on the Casino’s Gross Gaming Revenue total of $129.2 million for the year. The County received the same amount. In its budget, the City had projected it would receive $2.75 million from distribution of gaming taxes in 2017, leaving a shortfall over $600,000. See “Schenectady loses bet on casino revenue” (Times Union, by Paul Nelson, Jan. 4, 2018). As the Gazette pointed out last November, “Rivers reportedly projected its first-year [Gross Gaming] revenue to be in the $181 million to $222 million range.” If we take the middle of that range, $201 million in GGR in its first year, Rivers Casino only achieved 64% of its first year projection.

Click here to see Rush Street’s 5-year tax revenue estimates, submitted in its Application to the Gaming Commission Location Board as Ex. VIII.B.4. It shows a base GGR for 2017 of $201.8 million. Its high and low figures were obtained by respectively adding and subtracting 10% to that figure, yielding the range given in the Gazette of $181-222 million. Because Rush Street anticipated opening on Jan. 1, 2017 when making this estimate, it used a 52-week period rather than the actual 47 weeks, which meant 10% fewer operating weeks/days.
Note: In Ex. VIII.B., filed at the end of July 2014, Rush Street Gaming estimated that the County and City would together receive a total of $3.2 million in gaming tax revenues in Year One, increasing to only $3.6 million collectively in Year Five, and would share those amounts. Those numbers are very different from the $5.7 million in annual tax receipts City Council said it expected in its resolution the month before. I would have thought the communication between City Hall and the Casino Gang was better than that.

In what is surely a causally related effect, Mayor Gary McCarthy stated for the first time, in his New Year address before City Council last week, that he expected the City would have a “small deficit” when all 2017 numbers were tallied for the City, giving no further details of the cause or the likely amount. Asked afterwards, new City Council President Ed Kosiur said the Mayor’s remarks were the first he heard of a deficit. See “Schenectady Casino Revenue Coming Up Short of Expectations” (Samantha Beckett, Casino.org, Jan. 5, 2018). Regarding the Upstate casino shortfall in general, see “He nailed it: An analyst’s 2014 report predicted Upstate New York casino woes” NYUp.com, by Don Cazentre, Jan. 18, 2018).

Click on the image to the left to see a week-by-week display of Gaming Revenues generated at Rivers Casino in 2017, plus totals.

The Stabilization Hope. Our City and County leaders keeping saying we can expect much better results once the casino’s operations and revenues have stabilized — as if Rush Street and its expert analysts are not competent to make first-year projections. But, in its Application to the Location Board, Rush Street Gaming estimated stabilized revenues in Year 5 to be only 10% more than its Year 1 figures. For more information on Rush Street’s revenue and tax projections, see the Applicants’ Economic Impact Analysis.

Remembering the 18% property tax reduction City Council claimed it expected in a Resolution passed just before its vote to approve the Casino Application in July 2014, many residents are unhappy with the 1% reduction in the current City budget, and many are “roiled” over the water and sewer fee increases announced this week, which will offset the 1% reduction. See “State, local promises before casino vote a bust” (Times Union, by Lauren Stanforth, December 17, 2017); “Water, sewer rate increases roil some Schenectady residents” (Times Union, by Paul Nelson, Jan. 5, 2018).

Are things likely to get better? Despite their Happy Faces, the City Council budgeted only $2.3 million in casino tax payments in 2018. Furthermore, Rush Street, City Hall and Metroplex have all pointed out for months that revenues are likely to rise due to the opening of Rivers Casino’s Landing Hotel, which had its first guests on July 19, 2017. (e.g., Times Union coverage; Gazette coverage) The week ending July 30 was the first full week with the Landing open. Despite the predictions of our Casino Cheerleaders, my calculations show that:

$2.7 million/wk. average for the 24 full weeks before before July 23
$2.6 million/wk. average for the 23 full weeks since the Landing opened

And, did you say “Resorts World Catskills Casino”?

Continue reading →

a Long-shot at Rivers Casino?

Posted on December 15, 2017 by David Giacalone

Last week, on December 8, Rivers Casino at Mohawk Harbor announced its new General Manager, Rob Long. [Click for Times Union coverage, and the Gazette report.] Of course, Long cannot be expected to instantly bring in significantly greater revenue. But, his first week on the job must have brought some cold reality for Mr. Long, along with Schenectady’s first jolt of real winter weather. The week ending December 10, 2017 (see Revenues Chart at the Gaming Board) brought these milestones/millstones, although we had no crippling snowstorm:

Worst Table Game Drop figure ever [$3,362,547] – despite its Table Game seminars a couple months ago to lure players;
Worst Slot Machine GGR since June [$1,523,343];
2nd worst total GGR since June [$2,388,276].

Neither the Gazette nor the Times Union, despite my sending them the information on December 8, has mentioned Rob Long’s record when he guided the development and opening of Rush Street’s very first casino, Riverwalk in Vicksburg, Mississippi. The Gazette never mentioned that Long had been Manager of a Rush Street casino on a river in Vicksburg. But, as we wrote here in March of 2016, when opposing the naming of the main casino roadway in Mohawk Harbor “Rush Street”, Rush Street Gaming (with the same captains at the helm, owner Neil Bluhm, CEO Greg Carlin, and GM Rob Long):

sold their Riverwalk Casino in Vicksburg, Miss., just four years after it opened, and after failing in their immediate request for a 60% reduction in their property tax assessment.

Rush Street CEO Greg Carlin touted Rob Long’s “well-established track record.” All I know about Long at this time is that:

the riverside casino he ran for Rush Street Gaming in Mississippi opened in 2008;
shortly thereafter, it requested an enormous reduction in its real estate appraisal, which was not granted; and
it was sold in 2012 to Churchill Downs.

By the way, of the 19 Mississippi casinos located along the Mississippi River, Riverwalk was one of the only two facilities that were not forced to close in 2011 due to record flooding. Did Rush Street decide it would not press its luck?

One more thing I did learn, Long’s Riverwalk Casino’s big fundraiser each year was “Bras for Breast Cancer”, which offered to pay a dollar for donated bras and strung the bras across the Old Highway 80 Mississippi River Bridge, with a special section featuring creatively decorated bras. Hey, we have a nearby bridge!

QQ: Rush Street Gaming will not tell us, nor will Rob Long himself, but I sure would like to know what options the company discussed with its GM when planning for the near-future at Rivers Casino in Schenectady. When will they start considering jumping ship along the Mohawk? Not to mention, how happy is the landowner, Galesi Group, that they “designed” the Schenectady casino to be just boxes next to boxes, so the facility could easily be converted from a casino to just about anything?

Luck Ain’t No Lady: 38th week the worst yet at Rivers Casino

Posted on November 3, 2017 by David Giacalone

According to the NYS Racing Commission revenues page for Rivers Casino, its 38th week (ending October 29, 2017), was the WORST week yet for the Schenectady Mohawk Harbor Casino. That’s despite having the Ellis Foundation’s big Women’s Night Out “Luck Be a Lady” event there on October 26, preceded by a prep-day of Table Game education in September. Of course, we can only guess the effect of several weeks of Mayor Gary McCarthy appearing in ubiquitous (and, for many of us, tacky and dispiriting) Fuccillo Auto ads shot at the Casino. Nonetheless, last week’s, take, $2,039,456, was perilously close to dipping below the $2-million mark.

DOLLARS. This comes after Gazette columnist Sara Foss called this week for a review of the inflated revenue projections we got from the three new casinos in New York State. While this site was temporarily called “Stop the Schenectady Casino”, we pointed out the practice of over-promising revenues. That included, as even the Gazette reported prior to endorsing the Casino, that “In Philadelphia, for example, SugarHouse was projected to generate $320 million in gross revenue its first year but only generated $212 million.”

BODIES. We hope that Foss or another journalist will look into the promises Rush Street made about how many people the Casino would bring to Schenectady. It projected 2.8 million a year. The fact that we have never been given any attendance numbers past the first couple of days suggests that the projected body-count was another cynical exaggeration.

See our post, “despite Billy Fuccillo, no HUGE casino revenues yet” (Oct. 8, 2017), tells of a number of factors we were told would lead to higher Rivers Casino revenues after the summer, but have not.
Share this posting with this shorter URL: http://tinyurl.com/RiversSinking

red check For those readers who are wondering how, after the Gazette endorsement of Porterfield, Farley and Mootooveren for City Council, to choose between John Mootooveren and Mohamed Hafez when using their third vote, I’d like to point out the following, regarding each man and the Casino:

Incumbent Councilman John Mootooveren:

Has acted as if Schenectady were a Supplicant, and a Second-Rate City, during the casino license application process, and thereafter, rubber-stamping the Mayor’s Supine Schenectady position, giving the Casino applicants their every wish, while making no demands. In contrast, all other potential casino locations use their leverage, to assure additional income from the casino, including mitigating its added expenses for infrastructure, public safety, and social problems; seeking guarantees of minimum revenue payments; and demanding local preference for jobs, and a buffer period in which property assessments would not be challenged by the developer.
Never questioned any claim made by the Casino applicants prior to voting to approve their Application for a Casino License in Schenectady as to projected revenue and the absence of likely negative effects.
Never sought an independent study of potential negative effects and realistic benefits, despite his claims of financial expertise.
And, never questioned or challenged any of the drastic changes in our zoning ordinance, demanded by Rush Street Gaming and the Galesi Group. As a result, the Council and the Mayor took away the guarantee of public access in perpetuity to enjoyment of the riverbank when the harbor was developed, and the requirement that 10% of residential boat dock space be reserved during the day for the public.

In contrast, Candidate Mohamed Hafez:

Was a leader in the Stop the Schenectady Casino campaign, pointing out the many problems raised by locating a casino in an urban area and the need to fully consider likely problems and realistic benefits.
Demanded over and over, at City Council meetings, and in writing to the press, that the City use its leverage to demand/negotiate the best possible agreement with the Casino to maximize revenues and local employment, and minimize and offset added financial and social costs.
Wrote a letter to the editor we reprised here: “wise words from Mr. Hafez“; and
Asked the Mayor directly about host community agreements at a City Council meeting on May 11th, and at subsequent meetings, leading to the Mayor writing a guest column in the Gazette debunking the notion of having an HCA or needing to ask for any moneys in addition to required taxes, and our responding at length at this website. E.g., “the Lago Casino HCA and the Mayor.”

Empty Chair. One final note about the two candidates: Mohamed Hafez, a registered Democrat running on the Republican and IndependenceParty lines, attended every candidate forum during the current City Council election campaign. John Mootooveren, the incumbent Democrat who is 1/4th of the Mayor’s 4-person rubberstamp majority on the Council, failed to appear at the League of Women Voters forum, the Gazette Candidate forum at Proctors, the Woodlawn neighborhood association forum, and the Goose Hill Neighborhood Association meet the candidates event.

Gazette covers half-year Casino revenues

Posted on August 21, 2017 by David Giacalone

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.

updates on the proposed Mohawk Harbor signs

Posted on August 11, 2017 by David Giacalone

BZA follow-up (November 16, 2017): Click for a copy of David Giacalone’s Comments to BZA regarding the Special Meeting today to review another Mohawk Harbor variance application for a 30′ pylon. What happened this evening? BZA approved a pylon virtually identical to the one they rejected on October 4, 2017. See “BZA pylon flip-flop“. Short URL: http://tinyurl.com/BZAflip

(November 15, 2017): I learned today that on November 1st, 2017, Board of Zoning Appeals granted Mohawk Harbor variances that would permit it to install a pylon sign 22′ tall and 122 sq. ft., at the location involved in the discussion below. The Zoning Code permits a sign 7′ tall of 75 sq. ft. at that location. Had I known of the application, I would have strongly opposed it as presenting the same problems as the 30′ pylon rejected by BZA on October 6, 2017.

Mohawk Harbor was apparently so shook up by the rejection on October 6, that Galesi sent Big Guns, to literally beg BZA to permit the pylon application. Dave Buicko, Galesi Group CEO and Ray Gillen, Chairman of Metroplex, came to press the Board members. I am told that Mr. Gillen said, “I have never asked you for a favor, but please, please, please grant this variance.”

disbelief-foreheadsmack Moreover, I learned late yesterday afternoon (Nov. 14), thanks to TU reporter Paul Nelson, that BZA had announced a special Meeting to be held tomorrow, November 16, in which Mohawk Harbor has resubmitted its previously rejected application for a 30′ pylon of 265 sq ft. The only difference is that it has given up asking for a 1′ setback instead of the required 3′ setback from the right of way. Click here for the Resubmitted 30′ pylon application.

Original Posting

post BZA update (10 PM, Oct. 4, 2017): This evening, the Schenectady Board of Zoning Appeals granted a variance for a “monument’ sign at the entrance to Mohawk Harbor at Mohawk Harbor Way and Erie Boulevard, but denied the request for a variance to permit a 30’ tall pylon sign along Erie Blvd, that had a large LCD screen and 22 lighted “tenant signs”. [But see, “BZA pylon flip-flop“.]

. . variance denied . .

MH representative Paul Fallati had asked BZA to allow a 265 square foot pylon sign, with a height of 30 feet, a message board 12 feet wide, and a 1 foot setback from the NYDOT right-of-way.
A variance was needed because the sign schedule in the City Zoning code for the C-3 Waterfront Mixed-Use District only permits a 75 square foot sign, with a height of 7 feet, a message board 8 feet wide, and a setback of 3 feet. (Larger sizes are permitted for Casino-related signs but not for non-casino signs.)
The Board found that the requested variances were significant, not justified, and could adversely impact close properties. BZA refused to merely accept the Planning Commission’s actions in support of a 30′ design. Click to see the odd and inadequate Variance Application for the Pylon Sign; also, the Variance Application for the Monument Sign, and a Site Plan illustration of the signage location and setbacks.
- A co-owner of Sev’s Luxury Used Car, located directly across the street from the proposed pylon on Erie Boulevard, pointed out to the Board the potential negative effects on nearby properties that desire to upgrade to more attractive uses, and asked if the large cement wall behind the proposed pylon was meant to protect Mohawk Harbor tenants from the glare of the bright pylon lights and screen.
- David Giacalone, proprietor of this website, stated that BZA should have made its own independent review of variance issues before the Planning Commission spent two months helping MH design a 30-foot sign for a 7-foot sign location. He also stressed that (1) Mohawk Harbor is asking for a shopping-mall-style sign despite touting the development as an upscale mixed-use residential and commercial neighborhood; he presented a collage (seen below) to make the point; (2) a large, bright sign so close to a busy, complicated roadway presents many safety issues, including distracting drivers (intentionally) and creating major glare; and (3) the Applicant could not show that its difficulty under the zoning code is not “self-created”, because Mohawk Harbor was intimately involved with drafting the revamping of the C-3 District rules two years ago, and specifically left the original C-3 signage limitations for non-casino signs. These and additional issues are more fully discussed below.
update (5 PM, Oct. 5, 2017): According to an article in the Daily Gazette posted this afternoon, “The board rejected the plan for the 30-foot sign by a vote of 4-2, said Avi Epstein, the city’s zoning officer.” In addition, “The proposal was denied because the board felt it would cause an undesirable change in the surrounding neighborhood, and that the applicant could achieve the purpose of the signage through another method, City Planner Christine Primiano said.”

[Earlier] BZA Update (October 4, 2017): This follow-up relates to the requests by Paul Fallati, on behalf of Mohawk Harbor, for area variances to permit the two signs at the Mohawk Harbor Way entrance to the complex. The matter is before the Board of Zoning Appeals for the first time this evening, October 4, 2017. (Click to see the Variance Application for the Monument Sign, the Variance Application for the Pylon Sign, and a Site Plan illustration of the signage-intersection location and setbacks.) The issues are basically the same as discussed below regarding the appropriateness of the sign for the location, but the Board of Zoning Appeals should, I believe look closely at the statutory and code requirements for granting an area variance, and not let the Planning Commission preempt variance decisions, which places BZA in a rather awkward position.

The PYLON VARIANCE PROPOSAL: On behalf of Mohawk Harbor PAUL FALLATI requests Area Variances for 220 Harborside Drive located in the C-3 Waterfront District

to allow for a 265 Square foot pylon sign, with a height of 30 feet, a total width of 18′, and a message board of 12 feet wide , with a 1 foot setback,
where a 75 square foot sign with a height of 10 7 feet is allowed, and a minimum setback of 3 feet required. [Ed. Note: And, when the Schenectady Zoning Code defines a pylon sign as having a base no more than 5′ wide, with a message board no more than 8 feet wide. Code §264.]

The Application for the Pylon Sign in no way meets the criteria for granting a variance.

As in my August 2017 letter to the Planning Commission, a key issue is whether a giant pylon sign is appropriate, given the goals of the C-3 Waterfront District and the claims of the developer that this is a unique and upscale mixed-use residential-commercial neighborhood. As this updated collage suggests, the 30′ pylon, with its 22 lighted tenant signs and large LCD screen along a busy road is far more appropriate for a strip mall or shopping plaza. (click on the collage for a larger version)

This this update will be completed after this evening’s BZA meeting. Until then, please 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, which 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.

BELOW 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

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.
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.

. .

. . 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

. . . close to River House and future homes

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?

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.

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]

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.

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

Posted on July 21, 2017 by David Giacalone

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

Posted on June 19, 2017 by David Giacalone

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.

update (August 23, 2017): see the Gazette article “Saratoga racino gets relief as competition heats up” (by Ned Campbell, Aug. 22, 2017).

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):

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)

Posted on May 30, 2017 by David Giacalone

(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?

. . 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.

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Poker strategy stumbles along the Mohawk (with updates)

Posted on April 21, 2017 by David Giacalone

. . 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.

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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

Posted on April 7, 2017 by David Giacalone

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.

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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 projections: Figures 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):

The 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?

Posted on March 24, 2017 by David Giacalone

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 machines: Schenectady 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

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snowmen at the gates

. . . . . . . . . watching Schenectady's sleepy watchdogs

Tag Archives: Schenectady Casino

a bargeful of yellow bollards on the Mohawk

Year Three Begins: slots still reign at Rivers Casino

Slotsification on the Mohawk

too many underage gamblers at Rush Street facilities?

the riverbank Trail at Mohawk Harbor is not safe enough

a slow week at Mohawk Harbor?

SPORTS BETTING along the Mohawk (with updates)

a quick look at del Lago’s exterior

bum’s Rush needed

Casino Projections vs. Casino Reality

a Long-shot at Rivers Casino?

Luck Ain’t No Lady: 38th week the worst yet at Rivers Casino

Gazette covers half-year Casino revenues

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

updates on the proposed Mohawk Harbor signs

new high (big rush) at Rivers Casino

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

another nadir on the River (with updates & lowdowns)

Poker strategy stumbles along the Mohawk (with updates)

record decline at Rivers Casino Schenectady

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