New York State Senator Tom Libous (R-52), who represents Broome, Tioga, Chenango, and Delaware Counties in New York, addressed dignitaries and media last Tuesday during a press conference that announced that Traditions at the Glen in Johnson City, N.Y. would drop their proposed casino plans and unite to assist Tioga Downs in gaining the fourth gaming license that was pulled from the table on Dec. 17 by the site selection board appointed by the Gaming Commission in Albany. Following that decision, Libous fielded additional calls to Governor Andrew Cuomo, urging him to consider opening a rebid of a gaming license for the Southern Tier, which many of the aforementioned counties are a part of. On Friday, Governor Andrew Cuomo supported this request and sent a letter to the Gaming Commission, urging its consideration. (Photo by Wendy Post)
Vernon Downs in Verona, N.Y., pictured, holds a stake in the decision on whether Tioga Downs in Nichols, N.Y. is awarded a full gaming license in the Southern Tier. As a sister track to Tioga Downs, Vernon Downs is subsidized in its racino efforts. Vernon Downs’ Minority Owner Gary A. Greenberg called the prospect of reopening the bid “the right first move to correct an injustice that was done to the ‘true’ Southern Tier.” (Photo provided by Gary A. Greenberg)
Late Saturday, Dec. 27, it was announced that New York State’s Governor Andrew Cuomo submitted a letter to New York State’s Gaming Commission on Friday to re-open bidding within the ‘true’ Southern Tier Region for a fourth gaming license that was originally included for award with the passage of Proposition One on Nov. 5, 2013.
A report regarding this letter came directly out of Gannett’s Albany Bureau, and was further confirmed by a statement received early Sunday morning by Gary A. Greenberg, minority owner of Vernon Downs Hotel and Casino, and gaming expert.
In Greenberg’s statement, he called the reopening of the bid the right, first move to correct an injustice that was done to the ‘true’ Southern Tier.
Greenberg added, “Tioga Downs’ premier gaming company in the Southern Tier, which is a sister to Vernon Downs, may possibly be able to rebid.”
Vernon Downs is subsidized by Tioga Downs, and the fact that two new casinos will be opening within 75 miles of Vernon Downs drew concern by Greenberg, who also noted that the swiftness of the rebid makes it more urgent than ever that Tioga Downs be awarded a full gaming license.
On Dec. 17, New York’s State’s site selection committee recommended to the Gaming Commission that Lago Resort and Casino in Tyre, N.Y., which is located by the thruway and half way between Rochester and Syracuse receive the sole gaming license within the Southern Tier.
The fourth license, which was dictated in the parameters of Proposition One, had been removed from the table by the site selection committee headed by Kevin Law – a committee that was assigned by New York’s Gaming Commission chaired by Mark Gearan.
This selection sparked outrage within the Southern Tier, and left Tioga Downs’ owner justifiably angry by this decision, as he had assisted New York by funding $880,000 to assist in getting the gaming proposition on the ballot to begin with.
In a statement last week by Tioga Downs’ Owner Jeff Gural, he called the selection of Lago a poor choice, citing that there are too many competing casinos in the selected region, and that Tyre is not even located in the ‘true’ Southern Tier.
Senator Tom Libous (R-52), who has remained neutral throughout the entire process, decided to take action and made a call to Governor Cuomo on Dec. 19 to ask him to consider a rebid for the Southern Tier Region.
On Dec. 23, the two Southern Tier contenders that were not awarded a full gaming license on Dec. 17, Traditions at the Glen and Tioga Downs, unified to fight for a gaming license within the Southern Tier and were supported by several area government representatives to include Senator Libous, who reached out once more to the Governor following last Tuesday’s conference, and Assemblywoman Donna Lupardo (D), who also represents areas in Broome County, which is part of the Southern Tier Region.
Also during the press conference held Dec. 23 at Traditions at the Glen, which would have been the site of a Traditions Resort and Casino build if awarded, the Walsh family announced they would withdraw their proposal for a build, and support Tioga Downs in their efforts to gain the fourth license.
Governor Cuomo established the Gaming Commission’s Gaming Facility Location Board, or site selection board, to administer the process of issuing four licenses within New York State; and because Cuomo has State control of the Commission, the letter issued on Friday could possibly bear some weight, meaning a fourth license could potentially open for rebid within the Southern Tier.
Gural, on Tuesday, stated that an award of the license to Tioga Downs would not cost a penny to the state, and that he could be up and running in a short period of time.
But Cuomo cautioned, in reports, that the reissuance of the fourth license could prompt new bids that may come in even higher than the first round. But he is also urging swiftness in a decision by the Commission to authorize the rebid, according to Albany reports that referenced his letter to the Gaming Commission.
Prior to the news that Cuomo is now urging the Gaming Commission to rebid the fourth license within the Southern Tier, concerns were growing within the region and beyond.
When the selection of Lago Resort and Casino’s $425 million project in Tyre was recommended to the Gaming Commission on Dec. 17 in Albany, N.Y. by Dennis Glazer, site selection board member, a domino effect of sorts began almost immediately – to begin with reactions from the Oneida Indian Nation, who announced shortly after the location board’s decision that it will open a $20 million casino in Chittenango in 2015.
This proposed opening by the Indian Nation of a new “Yellow Brook Road” casino is on Oneida Indian Nation land, therefore no permission is needed from federal, state or local governments, nor a license from New York.
This news drew further concerns by Vernon Downs’ Gary Greenberg, who stated, at that time, that the site selection board’s choice in the Southern Tier casino race was shocking and unjustifiable.
Greenberg further added that “Tioga Downs was far the superior choice, and that the board’s actions are a slap in the face to both the Southern Tier and Central New York residents.”
The stakes for Vernon Downs, which started in 1953 and is located near Syracuse in Verona, N.Y., are also high regarding the award of the fourth gaming license. Greenburg noted that his grandfather made an investment in the track shortly after it opened; therefore its continued operations are very close to his heart.
Greenberg continued to explain that Gural revived the track several years back, and was subsidizing the racino through Tioga Downs in Nichols, N.Y. Turning Stone Casino, operated by the Indian Nation and located in Verona as well, he added, opened in July of 1993.
“Turning Stone nor the Indians subsidize racinos in New York,” Greenberg added.
In fact, Greenberg stated, New York State receives 35 percent from revenues derived from Vernon Downs. “The Indians pay 25 percent of slot revenues only, said Greenberg, adding, “with their approximate $200 million in revenues, the $50 million negotiated fee to New York State to maintain their territory exclusivity from any receipt of full gaming applications allows them to keep all of their sales tax, gas, and tobacco taxes. They pay no property or federal and state taxes.”
With the addition of Lago Resort and Casino in Tyre being a one hour drive from Vernon Downs, and Turning Stone located in an even closer proximity, if Tioga Downs is not awarded the fourth license it will not only hurt the Southern Tier Region, but could potentially force the closure of Vernon Downs, as they would risk losing their subsidy.
Of course, Greenberg added, the decision to close Vernon would be solely up to Gural. But as a horseman, Greenberg added, he believes that Gural wants Vernon to survive.
Ultimately, the rebid, and potential award of a fourth license to Tioga Downs in the ‘true’ Southern Tier Region would be a win-win for many involved; and as Gural stated last week, it would not cost New York State one penny.
On a unified front, Greenberg mentioned that based on last Tuesday’s announcement that Traditions at the Glen will support Tioga Downs in seeking the fourth license for the Southern Tier, he [Greenberg] is also calling on the Commission to listen to the residents’ outrage that no license was awarded to Tioga Downs, and to make the correct decision.
It was not noted in many reports late Saturday if, and when a decision by the Gaming Commission would be made to reconsider a rebid for the fourth license, but its prospect is positive news for the ‘true’ Southern Tier of New York.
Gural, who is currently the sole remaining applicant in the Southern Tier for a gaming license, is planning a $34 million expansion that includes a hotel, site enhancements, and a contract that is ready to go upon award of a license that would make improvements to the Tioga Country Club in Nichols, which is located on Roki Boulevard.
Reports out of Albany also stated that the rebid should happen swiftly to provide much needed relief to the Southern Tier Region.
