Tioga Downs, located in Nichols, N.Y., continues to move forward with their application for the Southern Tier’s fourth full casino and table gaming license to be awarded by New York State’s Gaming Commission. Application deadline is July 6, 2015. As pictured, Tioga Downs is already a popular destination. This photo was taken at a previous show held at Tioga Downs that benefited local veterans. Guests were waving their flags as local veterans arrived. (Photos by Wendy Post)
Tioga Downs in Nichols, N.Y. is a destination for racing and gaming fans. Pictured, Robbie Nichols of Corning, N.Y., owner of Elmira’s Pioneer Baseball Team, sports a hat that was a favorite on opening day of racing at Tioga Downs last month.
As the July 6, 2015 application deadline for a fourth full casino gaming license in the Southern Tier looms, New York State’s Gaming Commission on May 26, at one of their regular meetings, noted that they were expecting two applications to be submitted by the July 6 deadline.
One of those, as most in the region are well aware, is a re-submission by Tioga Downs Casino in Nichols, N.Y. The facility’s owner, Jeff Gural, CEO of American Racing and Entertainment, and owner of Vernon Downs in Vernon, N.Y.; Tioga Downs in Nichols, N.Y.; and Meadowlands Race Track in New Jersey has been the top runner for the fourth application – at least until news arrived recently that a second application in the Southern Tier may be looming.
This speculation came to light during a recent interview with Bob Joseph’s talk show on WNBF in Binghamton, N.Y. in which Binghamton’s Mayor Richard David stated on the ‘Binghamton Now’ program that there was a second application that could be for a site in the city of Binghamton.
On the show, David stated, “there are multiple sites” in Binghamton, to include former manufacturing properties off of Frederick Street.
Although the mayor would not state who the prospective applicant would be, or where the location site is, he did say that an announcement is forthcoming.
Calls to Lee Park, from New York’s Gaming Commission, were not returned when made to field more information regarding a prospective applicant.
Calls to Jared Kraham, executive assistant to Binghamton’s Mayor Richard David were also not returned in relation to the city’s knowledge of plans for an application for a fourth casino bid.
Not stopping there though, a little research on Jeffrey Hyman, who submitted a bid in Schoharie County for a casino last year, a bid that was rejected by the Gaming Facility Location Board (GFLB) due to lack of financial backing, and an environmental factor that the bat population would be disrupted at Howe’s Cavern, applied last week, according to state reports, to redevelop the vacant site at the corner of Frederick and Montgomery Streets in Binghamton, N.Y. – the same site mentioned by Mayor Richard David in his interview with WNBF.
Hyman controls a limited liability company, and recently applied for tax breaks for this development, according to New York State records.
Hyman has also had discussions with a developer about investing in the project – the same casino developer that partnered with Hyman in his failed bid in Schoharie County, which would have been The Howe Caverns Resort and Casino.
According to the Poughkeepsie, N.Y. Journal, however, this backer, Michael Malik, a Michigan-based businessman who owns casinos in Detroit and California, decided to pass on the Binghamton project due to his previous investment in two unsuccessful bids in New York – The Howe Caverns Resort and Casino project, and the Hudson Resort and Casino in New Windsor, Orange County – which was not a project of Hyman’s.
Each application, according to the Gaming Commission application rules, carries with it a $1 million upfront fee.
According to New York State’s Gaming Commission, the first round of application fees submitted by Tioga Downs was $398,032.30, with an unexpended balance refund to the applicant of $601,967.70.
For Traditions Resort and Casino, which was not awarded in December and subsequently withdrew another application round to support Tioga Downs in a fourth license, costs incurred, from their $1 million application fee were $392,827.63, with an anticipated refund of $607,172.37.
For Hyman, and the Howe Caverns Resort and Casino application, of the $1 million received, New York State Gaming Commission Costs incurred were $307,983.15. A partial refund of $600,000 was processed, with an unexpended balance of $92,016.85 anticipated.
Some of the costs expended on these applications included personal services, shipping costs, presentations, hearings, fingerprints, and other expenses.
Hyman’s proposal was one of 13 failed bids in December of last year.
But this news, with all of its speculation and lack of formal announcements, hasn’t stopped Gural from moving forward with his own projects.
Gural has stated, in numerous interviews, that he could be up and running in a much faster timeframe than any proposed plan coming in from other developers or investors. Gural is also aware of the interest by Hyman and his intentions to possibly roll the dice for this fourth license in the Southern Tier.
In other action, Gural, earlier this month, announced that Hard Rock Casino and the Meadowlands Racetrack in New Jersey are partnering on a proposed new casino – Hard Rock Casino Meadowlands.
With casinos struggling in New Jersey, according to state reports, some believe that a casino in New Jersey’s northern portion might be a boost.
The Hard Rock Meadowlands plan draws on a recognized brand, and would include ten restaurants, four bars, a theater, along with 5,000 slot machines and 200 gaming tables.
However, in New Jersey, state election officials must determine whether or not to put an initiative on the November ballot that would end Atlantic City’s casino monopoly in New Jersey. So the gamble in New Jersey, as well as the gamble in the Southern Tier continues for Gural in his hopes for obtaining a full gaming license that would bring table gaming to both facilities.
One major hopeful, Gary Greenberg, minority shareholder and investor at Vernon Downs in Vernon, N.Y., has some high stakes in the process as well.
Located in the heart of Central New York’s rolling hills and overlooking historic Vernon Downs’ Racetrack, Vernon Downs Casino and Hotel is your home-away-from-home for a uniquely fun and exciting getaway. From a tourism aspect, Vernon Downs is a great staycation or vacation destination.
According to their website, “There’s something for everyone – from an indoor pool for relaxing and great food at our family-friendly restaurants, to conference rooms, banquet facilities and harness race track… it’s all here at Vernon Downs Casino and Hotel!”
But Greenberg has had concerns from the beginning of the process.
As the sister track to Tioga Downs in Nichols, N.Y., Vernon Downs receives subsidies from the Nichols track to keep it going.
Greenberg has stated continually, since this process began, that locating so many casinos, mainly the award to Lago Resort and Casino in Tyre, N.Y., in such a close proximity is nothing short of ridiculous. Greenberg maintains concerns that Vernon Downs will suffer, and possibly even shut its doors if Tioga Downs is not awarded the fourth Southern Tier license.
Even the Indian nation, who had land exempt from the casino bid process last year, fought back by building another casino, “The Yellow Brick Road” in Chittenango, N.Y.
On June 2, the $20 million Yellow Brick Road casino opened its doors at 10 a.m. – and will stay open 24 hours a day.
The casino has 430 slot machines and a 500-seat Bingo hall, along with Oz-themed restaurants and a general store. The Oneida Nation operates Turning Stone Resort Casino in Verona, N.Y.
So the stakes are high in this new gaming revolution in New York State, with Jeff Gural investing much of his own money into these hopeful transformations.
And Gural’s edge on things is that his expansions and any transitions to full gaming can be done quickly.
Gural has quoted, many times, “We can be up and running and add much needed jobs in no time.”
To stay informed on the process behind the fourth license, you can visit the Gaming Commission’s website at http://gaming.ny.gov. There you can find video clips from their meetings, tweets, and any documents relative to the process.
To learn more about Tioga Downs, visit them at www.tiogadowns.com. To learn more about Vernon Downs, visit them at www.vernondowns.com. To follow the progress of Hard Rock International’s plans to bring a casino to Meadowlands, visit www.thebigm.com.
