NY Governor Cuomo recently announced that he wants to add another three casinos to upstate New York. According to some analysts this could cause problems as any profit those new ventures earned would almost certainly be drawn from casinos already in operation in the area.
Cuomo made his announcement during his State of the State address. He said he wanted to expand gambling within New York and wants to start with as many as three new casinos in the upstate region. According to Cuomo there are some 39 casinos already doing business in adjacent states as well as in nearly Canada, and he believes these are drawing millions of dollars from NY state gamblers. He wants to give upstate gamblers options to stay in New York for their gaming.
The state now has five Indian casinos as well as nine racinos. These ventures do not offer any table games but do offer video slots. The NY state legislature will consider sometime this year final passage to an amendment that would allow as many as seven Vegas-type casinos to be established beyond what is on Indian land. Should it be approved by NY lawmakers, state voters may be able to decide on it next November.
Cuomo also argued that adding these upstate casinos may be a way of getting downstate gamblers as well. These players normally head over to Atlantic City or go to Connecticut. He believes that new casinos would be a big aid in helping to revitalize the economy in upstate areas.
Analysts are not discounting the idea but do worry that the success of any new casinos in the upstate region would come at someone else’s expense. The viability for these new casinos would, of course, depend on aggressively growing the market as well as bringing in customers from other casinos.
Another concern is the general downturn in revenues that is already being seen in other casinos in the northeast area. New Jersey, for instance, reported numbers for 2012 that were down for the sixth straight year. Other casinos and states are reporting lackluster results for 2012 as well.
Location will be a key to success for any new casinos in the area. Cuomo did not offer any concrete answers to location but did say that we was opposed to put them on lands that Indian tribes are have in use. He did suggest that the Catskills would be a good idea. Analysts agree, but say setting up in the Catskills would draw off customers from both Atlantic City and Connecticut casinos.
Cuomo also mentioned that New York City itself may get another new casino during the second phase of the proposal. He added though that the state would be able to get better bids if New York City is not a part of the initial option.
Not everyone is happy with the proposal. Casino owners who are currently operating in New York state suggest that adding new casinos may not bring about the results that Cuomo hopes for. Some suggested that converting NY racinos into full casinos might bring about a better boost to the economy.