Good luck to the three new casinos, one in the Bronx and two in Queens, approved Monday by a state panel. It’s in everyone’s interest that they deliver on the promises made regarding job creation and economic growth. With a $500 million payment for each license dedicated to the MTA, as well as 40% to 50% of gaming tax receipts (the rest of the tax is earmarked for education), the public will be gaining something valuable in exchange for the right to operate.
Of course, any gambling also has downsides, with too much of the revenues depending on problem gamblers, who are addicted and need help. But people do want to bet and wager money and they will find a way, so in that spirit we had endorsed the 2013 state constitutional amendment to allow for up to seven casinos in New York State.
The four upstate casinos — in Schenectady, the Finger Lakes, the Southern Tier and the Catskills — opened between 2016 and 2018 and have all been disappointing, falling well short of their projections to spur economic activity. We don’t want that to happen here. To allow the three new casinos in the city to thrive, they should not have to unfairly compete with electronic table games at the state’s racinos.
The state’s highest court was clear that the racinos are restricted to only having video lottery terminals, which are just glass and steel extensions of the Lotto. But the automated electronic table games now in place at racinos of roulette, blackjack and craps, even without human dealers, are true gambling, which should not be permitted at racinos. Those games, with or without human dealers, must be limited to only the three new casinos and the four struggling upstate casinos.
The state Constitution says plainly that gambling, besides the exception for the lottery, is only permitted at the seven casinos. The dozen years since the Constitution was amended has included a lengthy siting process for the casinos that just concluded Monday. What will be needed when the new casinos open are visitors, who just won’t bet, but will also patronize the restaurants, hotels, entertainment and shopping surrounding the gambling floors.
The draw of the casino and the multiplier effect of the spending by visitors is all part of the calculus in maximizing the revenues for the private operators and the public. That is the bigger picture that extends beyond the gaming tables.
There were five possible casino sites located in the biggest prize, Manhattan, but they were not in the cards, as the five possible sites in the borough all failed to advance to the final round to local opposition, as did other proposals for Coney Island and Long Island and an upgrade of the racino in Yonkers.
In the end, there were only three contenders for the three licenses and they each were awarded licenses: An upgrade for the Aqueduct racino and new gambling facilities at Citi Field and in the Bronx.
Now that true casino gambling is coming to NYC (Aqueduct can have tables up and running in a few months, while the two others will take several years to build) we want the public to make the new casinos successful, unlike the disappointing results of the four upstate casinos.