Upstate New York Gaming Economic Development Act

Upstate New York Gaming Economic Development Act. This landmark legislation, signed into law by Governor Andrew Cuomo in October 2013, amended the New York State Constitution to authorize up to seven commercial casino resorts in New York State. Primarily focused on revitalizing economically distressed regions, the act was a central component of Governor Cuomo's economic agenda, aiming to generate significant state revenue, create jobs, and compete with gaming establishments in neighboring jurisdictions like New Jersey and Connecticut.

Background and legislative history

The push for expanded gaming in New York followed decades of incremental legalization, beginning with a New York State Lottery in 1967 and later racino operations at tracks like Saratoga Race Course and Finger Lakes Gaming & Racetrack. Proponents, including the New York State Gaming Commission and key legislators like Dean Skelos and Sheldon Silver, argued that the state was losing billions in potential revenue to facilities such as Foxwoods Resort Casino and Mohegan Sun. A pivotal moment came in 2013 when Governor Cuomo, after securing agreements with the Senate Majority Leader and Speaker of the New York State Assembly, championed a constitutional amendment. This required passage by two successively elected legislatures before a public referendum, which was approved by voters in November 2013, paving the way for the enabling legislation.

Provisions and key components

The act authorized the development of up to four commercial casinos in three specific regions: the Catskill Mountains, the Capital District, and the Southern Tier. It established a competitive bidding process overseen by the New York State Gaming Facility Location Board, a panel appointed by the governor. Key provisions included a substantial tax rate on gross gaming revenue, with funds directed to school aid and property tax relief. The legislation also mandated significant capital investment minimums for licensees and included measures to protect the exclusivity rights of the Oneida Indian Nation and other federally recognized tribes under the Indian Gaming Regulatory Act.

Economic impact and development goals

Primary economic goals were job creation in regions like the Southern Tier and the revitalization of tourism destinations such as the Catskills. Projections estimated thousands of construction and permanent jobs, alongside hundreds of millions in annual state tax revenue. The act aimed to spur ancillary development, including new hotels, restaurants, and entertainment venues, transforming areas like the Concord Resort Hotel site. A portion of revenue was statutorily dedicated to supporting the New York Racing Association and promoting agriculture through programs at the New York State Fair.

Implementation and regulatory framework

Implementation was delegated to the New York State Gaming Commission, which worked with the independent Gaming Facility Location Board to evaluate proposals. The board's recommendations led to licenses being awarded in 2014 to projects including Rivers Casino & Resort Schenectady, del Lago Resort & Casino in the Finger Lakes, and Tioga Downs Casino Resort. The regulatory framework imposed strict oversight on operations, security, and problem gambling programs, drawing on models from states like Nevada and New Jersey. The New York State Department of Taxation and Finance was tasked with revenue collection and distribution.

Controversies and public reception

The act faced significant opposition from groups including No More Casinos NY and some members of the New York State Senate, who cited concerns about increased problem gambling and social costs. There was notable controversy over the exclusion of the densely populated Downstate New York region from initial licensing, a move seen as protecting existing racinos like Resorts World Casino New York City and Empire City Casino. Legal challenges emerged from potential bidders and communities, and some projects, like the proposed Montreign Resort Casino, faced local referendum hurdles. Public reception was mixed, with strong support in economically struggling areas but skepticism in others regarding the promised economic benefits.

Category:2013 in New York (state) law Category:Gambling in New York (state) Category:Andrew Cuomo