The Orange County Casino Would Surpass All NY Rivals, Such as Resorts World New York
A New York state gambling panel announced on Monday that any Orange County casino developers would need to invest a minimum of $350 million to receive a license. The Orange County license would be one of four casino gaming licenses offered in select cities across the state.
Gambling industry experts say the price tag for such a potentially lucrative gaming site is low. In an industry where a Malaysian casino development is planning a $4 billion project on the Las Vegas Strip, $350 million is considered a small obstacle to surmount.
Small Buy-In for Lucrative Investment
The location of Orange County is what makes the casino such a potential windfall for developers–and so controversial with rival casino project heads. A casino in Orange County, such as the proposed Woodbury project, would be 50 miles outside of New York City. Not only would such a gaming complex lure most New Yorkers looking to gamble, but it would draw away customers from any casino operations further north, in the Catskills.
For this reason, an Orange County casino is seen as a potential billionaire boon to those who receive the license. It is also seen as a grave concern for the other 3 licensees in the state. Until now, the New York state casino licenses have been seen by proponents as a chance to revive the failing economies of Catskill communities. Lawmakers from Sullivan County and Ulster County had hoped to see a minimum $1 billion buy-in for an Orange County casino.
Rival Developer Say It Is Not “Economic Development”
Mitchell Grossinger Etess, CEO of the Mohegan Tribal Gaming Authority, is hoping to secure a license for Grossinger’s resort in Liberty, New York. The $350 million announcement by the New York gaming panel is a severe blow to his plans.
When asked for comments on the Monday announcement, Grossinger Etess said, “I think it shows that they are rushing through this and that this has clearly not been thought out. The premium spot, and they are only asking $350 million? It doesn’t speak to creating economic development.”
How the License Process Works
The licensing process includes 22 different development groups. Each paid a $1 million licensing fee to have their bids considered by the New York Gaming Control Board. At present, New York officials have under 3 weeks to make a decision. Potential developers, after seeing the various investment minimums, have 5 days to withdraw their application and receive a refund on their $1 million licensing fee.
Besides the $350 million minimum development price for Orange Counties, other regions have been assigned prices. Those in more remote parts of the New York state range between $70 million and $135 million. These investment thresholds depend on the region of the casino and its proximity to other casino developments (to be decided later). Despite the much larger casino threshold for Orange County, it is considered the best bargain of the bunch.
Big Money from New York City Gamblers
Proximity to New York City provides close access to 10 million potential customers, including some of the richest people in the country. High rollers are likely to frequent a nearby casino, while the middle class New Yorkers are not likely to drive upstate to a more distant gaming house, if one exists within an hour of the city.
More than that, New York City is the destination for millions of tourists per year–visitors looking to spend money. Such people might enjoy a day trip to the Woodbury casino. With so much cash on hand, the Orange County project is likely to be among the most lucrative in the US. So far, Caesars Entertainment and Genting Group, the aforementioned Malaysian gaming conglomerate, are rivals for the Orange County license.
New York Gaming Facility Location Board
The panel which made the ruling is called the New York Gaming Facility Location Board. The facility location board consists of three men: Paul Francis, Stuart Rabinowitz, and William C. Thompson, Jr. Paul Francis is the founder and managing partner of Cedar Street Group, LLC, a venture capital fir. He has worked at Merril Lynch, Ann Taylor, Skadden Arps Slate Meagher & Flom, and Priceline.
Stuart Rabinowitz is the eighth president of Hofstra University. He has served in government and community organizations in Nassau County and the wider Long Island area for decades. He has a doctorate from the Columbia University School of Law.
William C. Thompson, Jr is an executive at Siebert Brandford Shank & Company L.L.C., the largest women- and minority-owned municipal bond underwriter in the United States. He was an investment advisor for the New York City Pension Funds, which is worth more than $100 billion. Mr. Thompson also served as the Comptroller for the City of New York for 7 year and 11 months.
