Meanwhile Back in Albany (v12)

Nathaniel Brooks/NY Times

Remember when New Yorkers voted to amend the state Constitution to add casinos?

It's hard to believe it was four years ago - back in 2013 - that we had the opportunity to vote on, and ended up overwhelmingly approving, this change.

I have long felt that it was a combination of two things: the promise of a sure thing from the government, and the hope for a long shot personal win - that led to the approval of the initiative.

The potential for a personal win? Go to your local casino (not to one of the ones owned and operated by Native Americans or, heaven forbid, one in another state), try your luck, and walk away with a ton of cash. After all, it happens all the time -- we see the billboards and the TV ads of the winners, and the beautiful people in their fancy clothes having a ball at the casinos, right? And who would be having that much fun if they were losing?

The sure thing the government promised us? Let's look back at that ballot initiative:

The proposed amendment to section 9 of article 1 of the Constitution would allow the Legislature to authorize up to seven casinos in New York State for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenue generated.

Fun times, right? Hopes were high back in those days. Not so much now, though. According to an article from earlier this month,  all three of the first licensees are underperforming. 

• del Lago Resort and Casino, down the Thruway a bit from Syracuse, opened earlier this year with projected gaming revenue of $263M for its first year.  As it stands, they'll probably fall about $100M short.
• Rivers Resort and Casino also opened earlier this year in Schenectady, and is expected to fall about $80M short of its $222M projection.
• Tioga Downs, which upgraded from a racino to a casino that opened in December 2016, had lower projections - $103M - and is also expected to fall short, by around $30M.

An Associated Press article out today goes into more detail on why we may not be seeing the 'elusive' jackpot we were all waiting for.

Analysts blame a crowded market for the disappointing new casino revenues. Aside from the five full-scale Indian casinos, New York is home to ten 'racino' horse tracks with video lottery terminals. The Oneidas, who operate the Turning Stone casino in central New York, also run a mini-casino in a strip mall near Syracuse. 

That competition is going to be increasing, too.

A fourth $1.2B casino resort selected by state officials is set to open in March in the Catskills, about 90 miles northwest of New York City. Another casino less than an hour from the New York border in Springfield, Massachusetts, is set to open later in 2018. And the Oneidas are set to open a second mini-casino near Syracuse in the spring. 

For casino hosts like Schenectady, which budgeted for revenue that's not coming in, things are not looking good. Here's Councilman Vince Riggi:

It's a plus (the new revenue that is coming in), but it's still a disappointment, that's the way I see it. We were told to expect much more.

Tioga Downs owner Jeff Gural, who also owns the Vernon Downs Racino, has a different take on things, and focuses on the economic benefits of the casinos instead of on the less-than-projected revenues.

It's been a huge success. Whatever has been promised from an economic development standpoint has been delivered by the casinos. The real losers, frankly, are the owners of the three casinos. 

I would be remiss if I failed to mention that Gural asked for and received a bailout from the state to keep Vernon Downs open; it gets to keep more of the money that would have gone to the state, and they get to use capital improvement funds for operating expenses. The racino was losing about $5K a day, state officials were told; competition was one of the main drivers of the losses, Gural noted.

Meanwhile, back in Albany, legislators are not happy. Assemblyman Gary Pretlow, a Dem from Westchester  County, wants the state comptroller to investigate, as he's concerned the state will be asked to step in and help. His letter to Tom DiNapoli, he noted (in part)

When our state passed legislation to expand gaming, our decision was based on projections of robust revenues and promises that casino development would not place new burdens on taxpayers... The last few months, however, have called into question those projections and promises.

And, he noted

It is critically important that we have reliable and realistic long-term revenue projections - so we can prevent the recent gaming expansion from creating an arms race to more and more tax subsidies.

I would add that it's critically important that local governments budget responsibly, which would include not betting the farm that all of the promised gaming revenue would actually come in - but maybe that's just me.

Oh -- about that gaming expansion Pretlow mentioned? It's going to get worse.

Here in NY, we've got another billion dollar casino resort opening in the Catskills in March, and another mini-casino from the Oneidas opening in Bridgeport, at the outer reaches of Onondaga County, also in the spring. Another is scheduled to open in Springfield, MA, a relatively short hop from the NY border.

This will be one to watch going forward. With our appetite for bailing out gambling facilities already demonstrated, this could all turn into one really ugly crap shoot.

New York: We're Betting On You

Last Tuesday, New Yorkers overwhelmingly approved perhaps the most ridiculously worded, most biased proposal ever to appear on our ballot:

The proposed amendment to section 9 of article 1 of the Constitution would allow the Legislature to authorize up to seven casinos in New York State for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues generated.

The promise from our leaders in Albany, the gaming industry, trade unions, business organizations, and local government officials, if the proposal passed? $430 million dollars to counties annually, from the $1 billion in annual revenue that we'll get from those casinos, and 10,000 jobs - well, it was too tasty for folks to pass up.

The four new casinos would be in the Catskills, the Southern Tier, and in the Albany area. After seven years, three casinos could be built in New York City. None would be in my neck of the woods, due to the exclusive rights that the Oneida Nation has to protect their investment in Turning Stone.  Similarly, Western New York will not get a casino either, because the Seneca Nation has the rights to our cash out there, through their properties in Buffalo, Niagara Falls, and Salamanca. Those exclusivity deals were negotiated earlier this year by our Sonova Governor, Andrew Cuomo.

The Oneidas will pay the state some $50M each year (25% will go to local jurisdictions) and will make cigarettes about as costly at reservation-owned stores as they are at non-Native stores, and will make a one-time payment of $11M to Madison County as settlement of tax claims.  The deal with the Senecas would give the state $135M per year, and included some immediate payments that had been held up in disputes over the compact.  A third deal, with the St. Regis Mohawks, keeps new casinos out of the North Country.

A breakdown of the vote, as illustrated in this article by Michelle Breidenbach in the Post Standard, shows where the opposition to the measure came from:

• Ten counties in Western New York - Seneca gambling territory - voted no by between 50 -59%. Niagara and Monroe county results were 'undetermined' at the time the article was published; however according to the unofficial results, both are leaning no but by very small margins - less than 500 votes in Monroe, and only 250 votes in Niagara. 
• Here in Central New York, four counties - Madison, Onondaga, Otsego and Tompkins - voted the proposal down; Oneida county was still up in the air but is leaning towards approval, albeit by only 401 votes. 
• In the capital area, Albany, Schenectady, Saratoga and Warren counties all said no. Rensselear was leaning yes, by just over 700 votes, while Washington was saying no, by only 65 votes.
• Further north, Hamilton county (118 votes) and Lewis county (369) were also leaning no.

The yes votes were generally strongest where casinos will eventually be built. Along the NY-Pennsylvania border, Chemung, Broome and Tioga counties voted 60% or more in favor; in the Catskills, the same was true in Sullivan, Duchess, Orange, and Putnam counties; other counties in both areas were supportive, but by a lesser percentage. Clinton County, way up north, also voted strongly yes, as did NYC and Long Island.

So the promise has been offered, and accepted by the people. Now we just need to know the details.  This report notes that some big players are interested in building our new palaces of job growth, school aid, and lower property taxes, and that construction should start  in 2014.  The open question is, who goes first?

The legislature apparently didn't include a local veto, but did require that anyone looking to grab a license needs to gain public support - so that seems easier for the Southern Tier or the Catskills to be first up, given the opposition in the Albany area.  If I were a betting woman, I'd bet on the Catskills.

But if construction is only starting next year, will it be 2015 before we're going to start getting our piece of the pie?  And what are local jurisdictions supposed to do in the meantime, wait for some other economic development magic wand to bring them good luck?

Oh wait -- maybe they can take some taxpayer dollars to a racino slot machine or one of the Native American casinos, and try their luck.

The Update Desk: Casino Gambling

It's almost hard to imagine that I'm able to write - again - on New York's great experiment with casino gambling.

Most recently, in this post, we learned about the downgrading of del Lago's rating by Moody's, and it's accompanying gloomy outlook that del Lago is not viable without some restructuring, and in this post, we learned that del Lago and at least one of the other new casinos was looking for a better tax deal from the state. (These are just two of several posts I've done on this subject over the past four or five years.)

And then, just a couple of weeks ago, we got news that the newest, the biggest of the four approved casinos (please, don't let them build any more of the darn things!) is also in a bit of a pickle.

It seems that Empire Resorts, which built the new Resorts World Catskills casino, lost over $58 million in the first five months it was open. The company also owns the Monticello Raceway, what we here in NY call a 'racino' as it has both harness racing and slot machines. According to the company's SEC filing from June 30,

We cannot be certain that our business will generate sufficient cash flow from operations, that our anticipated earnings from the Casino will be realized, or that future borrowings will be available under our existing debt arrangements or otherwise to enable us to service our indebtedness or to make anticipate capital expenditures... Our future operating performance and our ability to service our debt will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control. 

As it did with del Lago, Moody's downgraded Resorts World Catskills' rating.

Now, I know the language used in SEC filings is almost as carefully crafted as a Hollywood script or a politician's concession speech, but you can see that they're struggling with cash flow and debt, the same as del Lago and Rivers. Tioga Downs, in the Southern Tier, may be doing a little better.

The latest article notes that 'informal' requests for help from the state, the ones made by del Lago and Rivers, were rejected.  And it has a link to another article that proves what most of us knew all along, and what the experts have been saying for a couple of years: the upstate market is over-saturated with gambling opportunities.

How so, you say? Well, take a look; in addition to the four new  under performing Vegas-style casinos, we have

• seven Nation owned casinos
• six racinos (including Tioga Downs and Vernon Downs, which has had its own issues)
• one thoroughbred track
• 120 Off-Track Betting locations and
• three Nation-owned electronic gaming locations

Add in the ready availability of online gambling, and legalized sports betting (likely coming to New York in the near future), and it's hard to imagine anyone would think we're over-saturated, right?  

Time will tell whether all those things that are beyond the control of the casino owners will turn in their favor or turn against them like a bad hand of cards. What remains important is that we taxpayers aren't called upon to bail them out. 

After all, while the local casinos are happy to show us pictures of their lucky winners, we never see any pictures of people the casinos bailed out after a losing streak.

The Update Desk: Casino Gambling

Last November, I shared the news ( in this Meanwhile Back in Albany post) that New York's gamble on allowing private, non-Native American casino gambling was not doing as well as expected.

The majority of voting New Yorkers who remembered to turn over their ballots back in 2013 decided we would amend our constitution back in 2013 to allow for up to seven new casinos "for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues generated."

As I noted in that post in November, the first three casinos - del Lago Resort and Casino (Waterloo) Tioga Downs in the Southern tier (which has its own crazy story) and Rivers Resort and Casino (Schenectady) are all under performing, by some $200 million or so, according to projections.

Competition is increasing - the fourth of the 'up to seven' casinos will open in the Catskills later this spring. The new place, Resorts World Catskills, will have a 100,000 square foot casino, 2150 slot machines, and 134 table games, along with a hotel, spa, golf course, and multiple dining options.

Also opening soon is Point Place, the latest offering from the Oneida Nation, which owns Turning Stone Resort Casino in Verona (east of Syracuse) and another mini-casino in Chittenango. Point Place, in Bridgeport, is supposed to cater to folks in Onondaga County, where the Legislature doesn't want to be in the gambling business and repeatedly turns down even putting up an OTB parlor, as well as from the communities around Oneida Lake and points north.

As noted in this recent article on Casino.org,

When Point Place Casino near Syracuse opens on March 1, the boutique $40M, 65,000 square foot casino will feature 500 slot machines and 20 table games. And while that might be great news for area gamblers, it's not quite as welcomed by the competition.

New York gambling venues have been sprouting up across the state since legislators opted to legalize four commercial casinos in 2013. The result has been a increasingly crowded upstate market, with private and Native American gaming operators fighting for the same customer base. 

NY legislators and Governor Cuomo don't seem to be too worried. For example, here's a fabulously irresponsible comment from Senator John Bonacic, the Mount Hope Republican who happens to be chair of the Racing, Gaming and Wagering Committee in the state senate, who noted in effect that developers always lie to get approval for their projects.

It was a very competitive process for four casino licenses, and of course their consultants were going to put rosy projections in order to get the Gaming Commission to hopefully give them a license. 

Gee, thanks for the oversight, Senator -- you do know that means oversee, not overlook, right?

For his part, our ever optimistic Sonofa Gov noted about the new casinos

They've all been wildly successful in creating jobs and building beautiful complexes.

Which, as we know, counts for everything with him. The state is littered with beautiful buildings created as part of these economic development, money-for-schools or tax revenue generators (but that's a whole nother post.)

So as we look to March, and hundreds of thousands of square feet of new gaming space, we have this dreary outlook on Wilmorite's del Lago from Moody's, which landed on January 10th.

Moody's Investor Services downgraded Lago Resort and Casino, LLC's Corporate Family Rating today to Caa2 from B3 even while the company's Probability of Default Rating was lowered to Caa2-PD from B3-PD. At the same time, Lago's 1st lien revolver and term loan were downgraded to Caa1 from B2 and its 2nd lien term loan was downgraded to Caa3 from Caa2. The rating outlook is negative. 

In English, what does that mean (emphasis added)?

Key credit challenges include Lago's slower than expected ramp up, single asset profile, and the highly competitive nature of the market which it operates that may impede the company's ability to support its capital structure. There are five gambling facilities, including four racinos and one Native American full scale casino within 100 miles of del Lago's location...

The negative rating outlook considers Moody's expectation that, despite the likelihood that Lago will cover its cash interest obligations and remain in compliance with its financial covenants during the next 12 months, albeit marginally, without a substantial improvement in the rate and degree of ramp-up or an additional equity investment by the owners, Lago will not be able to achieve a level of performance that can support its existing debt capital structure. 

 Lago's rating could be lowered if it appears there will be debt restructuring that involves impairment to existing lenders..

Now, it would be unfair if I failed to mention spin-off economic benefits stemming from del Lago and the other new casinos. For example, the State of New York might be making some extra money.

Data obtained from the State Thruway Authority shows Exit 41 (del Lago is just across the Thruway from the toll booths) had a monthly average of 266,306 vehicles the year before del Lago opened, the casino says. Since the casino opened, average monthly traffic at Exit 41 has increased to 381,477 vehicles...

Another real success story is the Magee Diner, just down the road from del Lago. It's one of several local businesses where gamblers can use their rewards points. The diner's owner, Gary Schlegel, has seen sales increase 15% since the casino opened.

We see more and more new faces in our restaurant every day, and 80 percent of the time my customers tell me they are on the way to or from del Lago.

Schlegel plans on adding outdoor dining and said he's going to see about getting a liquor license, too. This is great news, but as with any other downstream economic effect, this will last only as long as del Lago lasts. Like those shiny under-leased or empty new buildings I mentioned above, hopes and dreams of small business owners are also scattered across the landscape.

I don't want the casinos to fail -- we're already over-invested in them. And I certainly don't want the small business owners who are seeing a bump in business go back to where they were, or worse - fail completely - should the casino 'trickle-down' revenue streams dry up. 

What I do want, though, is responsible stewardship and leadership from our elected officials. That, my friends, shouldn't have to depend on a roll of the dice or the luck of the draw. 

Sidebar: State Sponsored Gambling, Then and Now

According to several articles I read in the NY Times archives from 1965 - 1967, there was a great deal of angst surrounding the question of whether to allow a lottery for education funding, as there was leading up to our falling hook, line, and sinker last November for the hype and promise of expanded casino gambling for the same purpose.

Opponents of the plan believed that it was immoral for the government to be in the gambling business, particularly for the purpose of funding education; there was also a line of thinking that lotteries would lead to more: "off-track betting, slot machines, and all other forms of gambling," according to Rochester Republican senator Thomas Laverne. He also noted that "There is very little difference, other than how you lose your money." Others opposed to the plan felt that 'infiltration by the underworld' was sure to be a consequence.

Proponents, on the other hand, felt that the State had already lost the moral high ground when they approved taxing betting at horse tracks and allowing bingo games. And, in contrast to Senator Laverne's thinking, Republican Edward Speno of Nassau County noted that

I don't think that anyone in this chamber can deny the very apparent propensity of people to gamble. This is an intelligent experiment which we as legislators cannot permit to go untried. 

Guess who was not in favor of the lottery-for-education proposal?  That would be the Board of Regents, the state's education governing board.  Here's part of their statement, from an August 1966 article, announcing their unanimous opposition:

The obligation of the State to provide adequate funds for education is so fundamental that it should not be discharged, even in part, by the encouragement of public participation in a state lottery, which will result in uncertainty as to adequate revenue available for education and in an inequitable distribution of the public burden.

We are opposed in principle to a constitutional earmarking of funds for education, or indeed for any other specific governmental service. The insertion in the Constitution of the proposed earmarking provisions would, in our opinion, lead to further similar attempts to earmark funds in other areas and in the long run might well be injurious to the advancement of education.

Additionally, we believe that attempts to support education by the lottery involve serious moral considerations and, in our opinion, are inconsistent with the goals of education.

How about that for taking a stand? And there's this impassioned statement from Senator Samuel L Greenberg of Brooklyn:

To tell the kids of our state that their teachers' salaries and their books are being paid for with the $3 that Mama spent on a lottery ticket is the wrong way to bring up children. 

Well, we know what happened after all the hand-wringing: voters went to the polls in November 1966 and saw this simply-worded amendment before them:

Shall the proposed amendment to article one, section nine, subdivision one, of the constitution, in relation to the authorization of state lotteries for the support of education in this state be approved? 

By a 3 to 2 margin, voters said yes, and slowly, off they went to the bank -- yes, the bank! -- to buy lottery tickets.  In June of 1967, there were 4,100 ticket outlets, 3,100 of which were banks. How far we've come, so to speak, that lottery outlets now outnumber bank branches in most NY neighborhoods.

The proposition we voted on was certainly in stark contrast to the ones our parents faced:

The proposed amendment to section nine article one of the constitution would allow the legislature to authorize up to seven casinos in New York State for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues produced. Shall the proposed amendment be approved?

Only a child-hating, property-tax-loving idiot would vote against that, right? Well, apparently only 43% of current voters meet that definition, because the bill passed last year.

Here's a look at what's been happening since then:

(1) Developers are starting to put packages together, and lo and behold, there's already a battle royal brewing in the Catskills. Seems that some folks think Orange County, which is much closer to New York City, and is doing much better economically than neighboring counties to the north, could be a great site for a casino...except if you're one of the counties to the north, like Sullivan, or Ulster, which have higher unemployment rates, and tons of old vacation resort properties which could use refreshing.  As gambling consultant and former Racing and Wagering Board chair John Sabini notes,

As it moves forward, there'll be no shortage of bad blood, sniping and hired guns.  It'll get ugly because the stakes are so high. People have already spent millions of their own money.

(2) Some people are already starting to spend their casino-proposition money.  For example, Onondaga County Executive Joanie Mahoney, who's now Andrew Cuomo's BFF, is going to put the county's $2.5 million share of casino revenue towards the Onondaga Lake revitalization plan. We can't have an OnSino, because we're in the Oneida Nation exclusivity area, but we'll get revenue, and won't be shy about spending it.

(3) The erosion of the middle class is having an impact on casinos. According to Goldman Sachs analyst Steven Kent

For example, luxury gambling properties like Wynn and the Venetian in Las Vegas are booming, drawing in more high rollers than regional casinos in Atlantic City, upstate New York, and Connecticut, which attract a less affluent clientele who are not betting as much.

So, regarding the destination casinos authorized last November, if we build them, will the right people even come? Or will the high rollers, the ones who can (theoretically) afford to spend money gambling, still be flying out to Vegas?

Tioga Downs (Elmira Star-Gazette photo)

(4) Consistent with the bullet above, Tioga Downs had its worst two-month slot revenue in three years. The racino, in Nichols NY, competes with a re-invigorated Mohegan Sun casino in Wilkes-Barre PA, where they have a hotel, luxury suites, and other amenities -- and where they also lost revenue on slots, as did 10 of the 11 casinos in Pennsylvania that were open this time last year.

But that's OK, because the owner of  Tioga Downs is going to compete with a handful of other bidders to be the Southern Tier's resort casino,and that will right the ship.

And speaking of casinos located just across the Empire State's borders, you just have to love comments like this one from our Sonova Governor, after he voted last year?

We literally hemorrhage people from the borders who go to casinos. I think it will keep the money in this state...

If I was a betting woman, I'd put money on those hemorrhaged people being figurative not literal, but "hey, you never know."

(5) It's worth noting that, at Tioga Downs, "it's just a game" and everyone is encouraged to play responsibly. But that lost revenue, whether it's related to the poor economy or the shrinking middle class or the poor weather or those dirty bastages in Pennsylvania and New Jersey and Connecticut and Canada and Massachusetts who are raking in money hand over fist from our hemorrhaging New Yorkers, well, that means that we'll have less money for education, right?

Is education funding really just a game? If it's really just a game, do we need the NY Lottery's ad campaign thanking us for helping the kids?

And hmm...lost revenue...that sounds a lot like the "uncertainty as to adequate revenue available for education" that the state's Board of Regents lamented back in 1966, doesn't it?

Folks, I'm torn.  Should I run out to buy a lottery ticket, or get my fanny down to Tioga Downs to play the slots? Does anyone know if they have happy, singing-and-dancing kids there?

The Update Desk: Casino Bailouts?

This is one of those rare posts that truly writes itself; I just has to pull the excerpts.

November 11, 2013:
Last Tuesday, New Yorkers overwhelmingly approved perhaps the most ridiculously worded, most biased proposal ever to appear on our ballot:

The proposed amendment to section 9 of article 1 of the Constitution would allow the Legislature to authorize up to seven casinos in New York State for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues generated.

A breakdown of the vote, as illustrated in this article by Michelle Breidenbach in the Post Standard, shows where the opposition to the measure came from: 

• Ten counties in Western New York - Seneca gambling territory - voted no by between 50 -59%. Niagara and Monroe county results were 'undetermined' at the time the article was published; however according to the unofficial results, both are leaning no but by very small margins - less than 500 votes in Monroe, and only 250 votes in Niagara. 
• Here in Central New York, four counties - Madison, Onondaga, Otsego and Tompkins - voted the proposal down; Oneida county was still up in the air but is leaning towards approval, albeit by only 401 votes. 
• In the capital area, Albany, Schenectady, Saratoga and Warren counties all said no. Rensselear was leaning yes, by just over 700 votes, while Washington was saying no, by only 65 votes.
• Further north, Hamilton county (118 votes) and Lewis county (369) were also leaning no.

And from June 22, 2014:
Enter Wilmorite, the Rochester developer who has long been engaged in Onondaga County as well: 

• Think ShoppingTown Mall and Great Northern Mall, once glistening, booming retail establishments.
• And think the proposed OnCenter Hotel, to be built downtown using the proceeds from a racino that Wilmorite wanted to build in Cicero.  
• And think, more recently, of the defaulted mortgage on the old Sibley's building, which a local developer wants to get working on, and hopefully won't be delayed by Wilmorite's default. 

Onondaga County is already using casino gambling as an economic development tool. For example, some of the money the county is putting towards the seasonal concert amphitheater on the west shore of Onondaga Lake -- a crap shoot worthy of any Las Vegas high roller --  is an advance on our projected share of the money from Oneida Nation/Turning Stone agreement, so from that perspective I guess it makes sense that we'd at least think about gambling again with Wilmorite...

...Alas, as with most gambles, timing is everything. And so is picking the right horse. The fact that McMahon couldn't rally his troops and bring the vote to the floor means we missed the opportunity to support the deal, and it will hold (or fold) without us. That may be to our benefit, as it wouldn't look good on our resume if we backed the Wilmorite horse again - and lost, again.

And this, from July 2, 2014:
Finally, and this is sort of a non-Wilmorite wild card:  in its infinite wisdom, the New York Legislature passed a bill authorizing gambling at racinos until 6AM. Racinos are horse tracks that also have limited gambling, mostly video terminals.  Revenues are down at some of these places, and so our elected representatives decided that they can stay open another couple hours to try and get a few more bucks out of the folks who can't think of anything better to do in the wee small hours of the morning.

Hmm. Revenues are down at existing gaming facilities, at a time when we're proposing a major expansion of gambling?  How ironic...  

It'll be interesting to see how our new regional casinos will fare against this backdrop, and if the promise of last fall's constitutional amendment -- "promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues produced" -- will come to fruition.

And, from November 24, 2017:
Fun times, right? Hopes were high back in those days. Not so much now, though. According to an article from earlier this month,  all three of the first licensees are underperforming. 

• del Lago Resort and Casino, down the Thruway a bit from Syracuse, opened earlier this year with projected gaming revenue of $263M for its first year. As it stands, they'll probably fall about $100M short.
• Rivers Resort and Casino also opened earlier this year in Schenectady, and is expected to fall about $80M short of its $222M projection.
• Tioga Downs, which upgraded from a racino to a casino that opened in December 2016, had lower projections - $103M - and is also expected to fall short, by around $30M.

Tioga Downs owner Jeff Gural, who also owns the Vernon Downs Racino, has a different take on things, and focuses on the economic benefits of the casinos instead of on the less-than-projected revenues.

It's been a huge success. Whatever has been promised from an economic development standpoint has been delivered by the casinos. The real losers, frankly, are the owners of the three casinos. 

I would be remiss if I failed to mention that Gural asked for and received a bailout from the state to keep Vernon Downs open; it gets to keep more of the money that would have gone to the state, and they get to use capital improvement funds for operating expenses. The racino was losing about $5K a day, state officials were told; competition was one of the main drivers of the losses, Gural noted.

And from January 14, 2018:
NY legislators and Governor Cuomo don't seem to be too worried. For example, here's a fabulously irresponsible comment from Senator John Bonacic, the Mount Hope Republican who happens to be chair of the Racing, Gaming and Wagering Committee in the state senate, who noted in effect that developers always lie to get approval for their projects.

It was a very competitive process for four casino licenses, and of course their consultants were going to put rosy projections in order to get the Gaming Commission to hopefully give them a license. 

Gee, thanks for the oversight, Senator -- you do know that means oversee, not overlook, right?

For his part, our ever optimistic Sonofa Gov noted about the new casinos

They've all been wildly successful in creating jobs and building beautiful complexes.

Which, as we know, counts for everything with him. The state is littered with beautiful buildings created as part of these economic development, money-for-schools or tax revenue generators (but that's a whole nother post.)

And finally, today's update, from the Rochester Democrat and Chronicle:

The del Lago casino in the Finger Lakes is seeking a better tax deal from the state to address its struggling revenue - slightly over a year since it opened. 

Tom Wilmot, the principal owner of the casino, told USA TODAY Network's Albany Bureau on Tuesday outside the Capitol that he hoped state leaders would assist the casino. 

He didn't say specifically what the request was, but it appears the casino is seeking a lower tax rate paid to the state.

"I think we need some help at this point, and what the future holds, time will tell," Wilmot said. 

Whether the state Legislature and (our Sonofa) Gov. Andrew Cuomo will come to the casino's aid is uncertain. 

And (del Lago isn't) the only one: Rivers Casino in Schenectady is seeking a better tax package from the state, according to Assemblyman Phil Speck, whose district includes that facility. 

Time will tell, indeed. Time will tell.

Should We Gamble on Wilmorite?

Was the Onondaga County Legislature really thinking of throwing our support behind a proposed casino a few dozen miles down the road? Being developed by Wilmorite?

I say 'our' support, because Leg Chair Ryan McMahon and the rest of them are really speaking for us when they vote on and pass resolutions and laws.  And if you're wondering why they thought that throwing our support behind a project outside Onondaga County, proposed by a developer with a (at least recently) spotty track record inside Onondaga County is a priority, you're not alone.

As noted in a recent article by Michelle Breidenbach in the Post-Standard, Wilmorite is going to submit a proposal for one of the casinos authorized by last year's resolution to amend our state Constitution to

allow the Legislature to authorize up to seven casinos in New York State for the legislated purposes of promoting job growth, increasing aid to schools and permitting local governments to lower property taxes through revenues generated.

The pie-in-the-sky constitutional amendment, a gamble in and of itself, was approved by 57% of New Yorkers hungry for any kind of tax relief, opening up the ground wars for developers to find places to put these job engines and start moving New York into a glorious state of economic boom.  Because that's what we promised ourselves, silly us.

As you recall, Onondaga County is not eligible for our own casino, being in an exclusive territory given to the Oneida Nation by our Sonova Governor Andrew Cuomo, who rolled the dice by negotiating with and securing an agreement from the Oneidas to protect their investment and share some of their wealth ($25 million a year) with the state and local governmental jurisdictions in the neighborhood surrounding their Turning Stone Resort and Casino.

Subsequent negotiations with other Native American casino operators established other exclusive zones around the state, leaving three zones where casinos could be built - the Fingerlakes area, including the Southern Tier; the Catskills, and the Capital District.

Enter Wilmorite, the Rochester developer who has long been engaged in Onondaga County as well:

• Think ShoppingTown Mall and Great Northern Mall, once glistening, booming retail establishments.
• And think the proposed OnCenter Hotel, to be built downtown using the proceeds from a racino that Wilmorite wanted to build in Cicero.  
• And think, more recently, of the defaulted mortgage on the old Sibley's building, which a local developer wants to get working on, and hopefully won't be delayed by Wilmorite's default. 

The racino project, which the Legislature voted to support back in 2011, had all the same promise as the casino -- jobs and sales tax revenue and the like -- except that it would have actually been in Onondaga County. Alas, nothing ever materialized on that deal, and early last year, the Legislature (with several new members) rescinded our support. We moved on, keeping Onondaga County safe from state-sponsored gambling which local politicians have long opposed here, and Wilmorite moved on to bigger and better things. Except that they came back, to ask for our support for their casino.

The casino is proposed for a spot north of the Thruway across from the big Petro station at the Waterloo exit, and across the street from an Amish family farm.  Wilmorite is again waving the promise flag, saying either that 60% of the jobs would come from Onondaga County, or that 60% of the jobs would go through unions in Onondaga County - there's some lack of clarity there, it seems -- and hoping that we would get on board to make their proposal (which promises the "high energy and excitement of Las Vegas") have more oomph than others that are expected for this gambling zone, including likely front-runner Tioga Downs.

Why are they the likely winner? Well, for starters, they have an existing racino, and more importantly, they have the advantage of being near another gambling state's border. And that was one of the big reasons Cuomo wanted casino gambling in New York, remember?

We literally hemorrhage people from the borders who go to casinos. I think it will keep the money in this state...

Legislature Chair Ryan McMahon pulled the vote on the resolution of support because it didn't have enough support even within the Republican caucus to pass, and at the same time chastised the people who would be directly impacted -- residents of Tyre -- noting that they were "muddying the issue with a fight they've already lost" and saying

They're looking at if from the merits of how it impacts them. We're looking at it from a standpoint of how this affects our constituents from an economic standpoint and it clearly would have been good as far as jobs go.

Because, as you know, once the floodgates are open and the promise of jobs is on the table, there's no reason for us here in Onondaga County to do anything other the muddy the waters in another county, and who really gives a rap about the people in the town of Tyre anyway?

Onondaga County is already using casino gambling as an economic development tool. For example, some of the money the county is putting towards the seasonal concert amphitheater on the west shore of Onondaga Lake -- a crap shoot worthy of any Las Vegas high roller --  is an advance on our projected share of the money from Oneida Nation/Turning Stone agreement, so from that perspective I guess it makes sense that we'd at least think about gambling again with Wilmorite.

Alas, as with most gambles, timing is everything. And so is picking the right horse. The fact that McMahon couldn't rally his troops and bring the vote to the floor means we missed the opportunity to support the deal, and it will hold (or fold) without us. That may be to our benefit, as it wouldn't look good on our resume if we backed the Wilmorite horse again - and lost, again.

The Update Desk: Sports Betting and More

I've done several updates on the experiment with non-Native American casino gambling here in New York, most recently in April, when sports betting was approved, the new regs came out, and all that excitement filled the air. Here's Schenectady-area Assemblyman Angelo Santabarbara, quoted in the April post.

Allowing sports betting in our upstate casinos brings sports betting out of the shadows and at a benefit to the taxpayers. It levels the playing field so we can create a responsible market for sports betting in a safe regulated manner... The additional revenue to the state makes it a win-win. 

Well, sure, except for reports of revenue falling well short of projections in other states that have already moved forward. Sort of sounds familiar, doesn't it?

Anyway -- the sports books at Tioga Downs, Resorts World Catskills and the Rivers Casino in Schenectady were up and running earlier, and del Lago's opened last Friday, with former SU and Philadelphia Eagles QB placing the first bet. I'll give an update on this latest "win-win" gamble once we have some data.

There are ownership changes on tap at two casinos. First, Wilmorite, the developer of del Lago and several shopping malls in the CNY area, is getting out of the casino owner business. The company, owned by the Wilmot family, is selling its shares to the property's co-owner, Peninsula Pacific. The investment firm's chairman and managing partner, M. Brent Stevens, said

This will position Peninsula Pacific as the sole owner of the property and signals our further commitment to be the premier source of gaming and entertainment in the Finger Lakes region. 

Stevens made it clear Peninsula Pacific is aware of the financial situation with del Lago and the other casinos in New York. noting

Sure, it has been disappointing. Sure, there are structural issues in the overall gaming market in upstate New York, But in the long term, we have faith in this property and we are as excited today as we ever have been about the ability to do the right thing, to grow our operations and have the right things happen within the broader industry in New York. 

Speaking on behalf of Wilmorite, chairman Thomas Wilmot Sr. said

del Lago Resort and Casino is good for our community - it has created employment opportunities, an entertainment destination and a new stream of revenue for the town and county. The continued success of del Lago is good for everyone in the Finger Lakes region.  

Meanwhile, Empire Resorts, the public company that runs the $1.2B Resorts World Catskills property, is losing money and suggested that bankruptcy might be the answer. In the end, Empire reached a deal to sell its stake to the majority owner, Kien Huat Realty and Genting Malaysia. The buyers are paying nearly $10 per share of Empire Resorts, about 15% higher than the trading price when the deal was announced. There's also an increased funding commitment - $77M - which will help with debt repayment.

Genting Americas president Ed Farrell said in an interview

We're in a unique position where we can assist with the management of Resorts World Catskills through our Resorts World New York property at a low costs. We can bring synergies to both projects and by just operating at a higher sale, we're going to be able to put the cost structure in a way that Resorts World Catskills can turn to black and we can make money going forward.

Are you a gambler? How much would you wager on any of the casinos turning things around, either through sports betting or the ownership changes?

Given their collective track record, I'm out.

The Update Desk: Sports Betting

Back in January, I did a quick recap of what New York's Sonofa Gov Andrew Cuomo had on his State of the State wish list, which included sports betting. He can wish for that now, because the Supreme Court ruled that all states could dip their toes into this gambling stream, which previously was a Nevada exclusive.

Since that update, the state's Gaming Commission has issued draft rules, and we're a couple of weeks into a 60-day comment period on them. Among other things, the proposed rules would allow only in-person betting, and

The state rules also prohibit betting on college sports taking place within New York state, or on any events in which a New York college team plays, regardless of location. 

Regardless of the limitations, there's a bit of excitement with some members of the Legislature, including Assemblyman Angelo Santabarbara, who's on the Assembly's Racing and Wagering Committee. Take a look.

Allowing sports betting in our upstate casinos brings sports betting out of the shadows and at a benefit to the taxpayers. It levels the playing field so we can create a responsible market for sports betting in  safe regulated manner...Upstate New York is home to four gaming resorts, including Rivers Casino here in Schenectady that would benefit immensely from legalized sports betting, giving our region another boost. The additional revenue to the state makes it a win-win. 

We have those upstate casinos, you'll recall, because we were literally hemorrhaging gamblers to neighboring states, according to the Sonofa Gov. And that of course is also happening now, as New Jersey and Pennsylvania are both up and running with sports betting already, and Connecticut and Massachusetts are getting close.

And I have to ask myself if we've learned anything at all since we approved gambling back in 2013.

Meanwhile, Back in Albany (v47)

Here we go again, New York. 

We're losing gambling money to neighboring states, dammit, and we're not going to take it anymore!

First, there was the casino money we were hemorrhaging to neighboring states.

Then, it was sports betting at our casinos, something we needed, you know, to fund things like education and gambling addiction treatment, and to stop bleeding money to neighboring states. And to help our underperforming casinos, which were not generating nearly the revenue we expected. 

Then it was mobile sports betting, because, you know, funding education, even more gambling addiction treatment, and buying tourniquets to stop the blood loss from all that hemorrhaging we've been doing are important governmental functions, as is helping casinos addict more gamblers.

And now, it's online casino gaming; here's some info from a Spectrum News report from October 2023.

Lawmakers are working to amend legislation to legalize a new form of online gambling in the state officials say could bring upwards of $1 billion in revenue to New York and help close budget gaps expected over the next few years.

Why? Well, we're addicted to the money gambling brings in, of course, and the success of mobile sports betting can't be ignored. It's

spurring discussion to permit online casino gaming — also known as iGaming — in the state, allowing games like blackjack, roulette and others to be played from a mobile device.

And, of course, because of those darn neighboring states that already allow it. After all, as Sen. Joseph Addabbo, chair of the Senate's Addiction Funding Committee (sorry - the Racing, Gaming, & Wagering Committee), says

Other states surrounding us are doing it. We can do this. I think it's the conversation we have to have dictated by the poor fiscal situation we're going to be in next year.

In addition to the revenue, it's flat-out altruistic, too, especially for the New Yorkers who are forced to do their online gambling on apps registered in other states.

We can't help someone with an addiction because we don't know who they are, and once we regulate it in New York, iGaming, we then can help those that might be in need are on their pathway to addiction. We'll put in statutory language in this bill to address that.

Fast forward to January 2024, and the legislation is being worked on in earnest. According to Addabbo 

It's a good bill. We got a lot of input from a lot of individuals, but it's a starting point. It's a starting point where I'm hoping that we can have these kinds of discussions during the budget process.

The bill would allow for mobile or online betting on various types of interactive gaming, referred to as iGaming, and iLottery. I'm pretty sure those names are not affiliated with the giant fruit vendor known for selling all the other iThings, or with iCarly, an old Nickelodeon TV show, but there's a chance we could see some kind of copyright lawsuit, right? What are the odds? 

As proposed, the licensing fees for the iStuff would be a cool $2M, and revenues would be taxed at 30.5%, which could generate a billion dollars annually. And, of course, we're hemorrhaging that money to PA and NJ now. Once we get that back, we'll be in good shape, Addabbo thinks.

We need to look at the outyears, 2025, 2026, where according to the state comptroller the fiscal situation only gets worse, then we do need to figure out a sustainable plan both short-term and long-term and that is iGaming and iLottery.

And what about those problem gamblers? There's $11M in annual funding for "addiction services and supports." I'm not sure if that money is dedicated solely to gambling addicts, or if it covers all other causes of addiction as well. But we do need to act with urgency, it seems.

If we're serious about helping people with a gaming problem, knowing that they're doing iGaming anyway in New York, they're just doing it illegally, then you try to do it this year because that will actually help the New Yorker who is already participating in iGaming.

But wait - there's more! Progressive more!

To ensure "existing union casino employees" aren't threatened by the new option, there's a "a fund of at least $25M annually" towards training and supporting employees of private business enterprises - because that's the New York Way. Addabbo also said we may see more union jobs created because people will be able to sit in their jammies and play poker on their phones - with live dealers. I'm sure they'll be even more addicting than CGI dealers.

Anyone who's already allowed to feed our gambling addiction won't be ignored, either. Existing license holders, including "current video lottery terminal licensees, mobile sports betting operators, state-licensed and Native American casinos" can participate in the iJunk if they like.

I'll be following this one as we go through the legislative session.

In Case You Missed it (v79)

We go from a flood of posts one week, to a trickle the next. Such is the ebb and flow of this craziness. Here's your recap of last week's posts.

Among the interviews I covered in Sunday School was Margaret Brennan's chat with LA Mayor Eric Garcetti on Face the Nation. They talked about COVID progress, including efforts to get vaccines into vulnerable populations. 

Garcetti's talked with Gov. Gavin Newsom about getting vaccines where the most vulnerable populations are; 40% are now targeted in those areas. They're using mobile teams, getting vaccines to people at home, and working with community organizations to get the vaccines into arms.

But I look forward to when the federal regulations release our handcuffs and allow us to target anybody in a hotspot. I think that is probably two or three weeks away... that'll allow us, if there is anything that comes up quickly, go into the geography of a neighborhood, knock it down before it spreads throughout a city. 

They also discussed Asian-American hate crimes and policing. 

Responding to Brennan's question about him having to send $150 million back to the police, money he had "reprogrammed" after Black Lives Matter protests last year, he said she was framing it wrong. 

We know that things like hate crimes need both a police response and education, a reporting mechanism, civilians and community-based groups that can help be the eyes and ears. And we have no tolerance for this hate here in Los Angeles, a great city filled with folks of Asian-American and Pacific Islander descent. 

He also said that they have "more patrols this year," and that they're "making investments in the human side of this to make sure community organizations are well-funded, too." 

Moving to mid-week, I had all kinds of Wondering on Wednesday to chat about, including books and songs. Books first.

Moving from DC to Tennessee, if everything goes as State Rep. Jerry Sexton planned, the Bible will be the official book of the Volunteer State. Sexton gave a couple reasons why the Bible should be the official book, including to "reflect family heritage and underscore the multi-million-dollar industry that is Bible printing in Tennessee." Now, obviously the Bible is not critical to many Americans, including "Buddhist, or Muhammad or any of those religions," as Sexton called them, trying to be respectful to everyone's concerns and "just put the Bible where I feel that it belongs." 

With that thought in mind, I got thinking about my state's latest 'sin and tax' plan. We're in the top two or three with our cigarette tax; we added casinos a few years ago to try and keep from hemorrhaging New Yorkers to other states to gamble, costing us tons of income, it was suggested; we then added sports betting at the casinos, and now we're looking for mobile sports betting and maybe even more casinos, because why not, right? And now?

Finally, news is breaking that New York's Senate, Assembly, and the Sonofa Gov have agreed to legalize adult recreational marijuana. I haven't seen the bill yet, but it was reported that Gov. Andrew Cuomo has said getting this done is "essential" to the state's social and economic well-being - and by that, he means the 9% state sales tax is essential. Some local governments can tack on an additional 4% sales tax. There's more - a whole nother hunk of burning bureaucracy to manage the weed, and fights over what to do with the tax money, naturally. I'm not wondering about all of that - that's the New York way, adding taxes and layers of bureaucracy, and fighting about all of it. 

Wishing I still had my paraphernalia from my younger days. But, back to the wondering theme of Wednesday's post, and thinking about that whole 'putting the Bible where I think it belongs" guy down in Tennessee, let's move to songs.

Well, what am I wondering about? How do I go about getting "Don't Bogart That Joint" installed as our new state song? I respect the folks who picked "I Love New York," our current state song, but I just want to put this song where I feel it belongs. 

And, then it was time for your TGIF. One of the things that I thought needed to be placed on the bad week list? The performance of the correspondents at President Biden's press briefing. Here's an excerpt.

President Biden held a press conference yesterday, and more than one reporter asked whether he was going to run in 2024; add-ons were "will Kamala Harris be your running mate?" and "do you believe you'll be running against Donald Trump?" Because nothing's more important than talking about Former Guy to Current Guy. I did like this part of his answer, though. 

Oh, come on. I don’t even think about it. I have no idea. I have no idea whether there’ll be Republican party. Do you? I know you don’t have to answer my question, but I mean, you know, do you?

There might still be a Republican Party; Trump might even be the candidate, and Biden might even run. Or, as he said, "that's the plan" but he doesn't usually plan three or four years out. Was this the big 'gotcha' moment of the one-hour presser? Well, that would seem to be a 'yes' based on it being widely covered in print, online, and on the nightly news. Most outlets only reported the 'yes' part, not the rest of his thoughts on the subject. 

And I'll bet you one hundred pennies that he will not run again. 

There you are -- all caught up. See you later for Sunday School.

The Update Desk: Casino Gambling (again)

Can it really be time to do another update on New York's ill-fated decision to allow non-Native casino gambling?  Why yes, yes it is - and this update is about the same as the last one, and the one before that.

As has consistently been the case, the news is not good for our Vegas-style casinos in the Finger Lakes area, the Southern Tier, the Capital region, and the Catskills.  Leading the way, again, is the del Lago Resort and Casino down the Thruway a bit from Syracuse.

We're told of another downgrade in their credit rating and a likely continued 'negative' outlook.

If the two-year-old del Lago Resort and Casino in the Finger Lakes is to survive, it's going to need new cash investment or face a difficult restructuring of its debts and finances.

The issue? Lower than expected revenue growth and, oh yeah -- too many other opportunities for throwing your money away. The same issues confound the other three, which are not meeting their revenue estimates, either. del Lago was about 57% short of projections. Here's what Moody's said, in part.

The downgrade and the negative outlook consider that despite a slight pickup in del Lago's monthly gamin revenue, this improvement is not enough to alleviate Moody's concern that Lago will be challenged to support its annual fixed charges of about $50M going forward.

And there's more news on the casino front, which is not necessarily going to be helpful to the cause, either.

It's Easy to be a Republican Columnist

See, with the stroke of a pen, I can write a headline almost as entertaining as the one that accompanied Steve Kimatian's latest guest column in The Post-Standard. Kimatian, a former local television station executive and Republican candidate for mayor of Syracuse, suggests that the Dems have an 'easier sales pitch' to voters, when they offer beliefs like these:

increasing entitlement benefits and minimum wages, extending unemployment insurance and that recipients don't need to work to receive any of these benefits.

Poor Republicans, on the other hand

offer(ed) fewer entitlements, said you would have to work for some of them, that they would provide training to develop your employable skills with the added caution that they were concerned about debt limits and balancing the budget.

Voters, being the blood-sucking leeches that we are, would 'hands down' take the first option, the one presented by the Democrats.  And sure, there probably are some folks who vote that way -- we all of course saw the crazed woman in the ad yelling about her Obama phone. The phone program actually started under Ronald Reagan, in an obvious attempt to buy votes. But she does not represent a single Democrat I know, or even one that Kimatian knows.

Kimatian goes on to describe the Democrat's position as 'self-serving, noting

The Democrat offer encouraged a complicit contract with the voter. If you can befriend a voting block by giving benefits, then you can secure votes and contributions for your re-election.

Hmm.  Let's pretend I'm one of those Democrats, living large on my unemployment benefit (2013 average maximum benefit? Around $400/week) after losing my $100,000 job in the Great Recession.  Assuming I'm getting lots of other safety net benefits, I'm guessing that I have at least one boatload of money to hand over to a politician to ensure my continued glorious lifestyle, maybe even two boatloads. Of course, that's only if I haven't spent it all a a strip joint, porn shop or casino.

Because, as Kimatian points out,

The extremes to which Democrats will go to ensure that benefits continue is shockingly displayed by the Speaker of the (NY) State Assembly, Sheldon Silver, who for the last two legislative sessions has blocked a vote on preventing state electronic benefits cards being used at ATMs located in strip joints, porn shops, and casinos.  Apparently the last thing Silver wants to experience is a disappointed voter's porn backlash and so he goes to great lengths to keep the benefits flowing, even for as blatantly a sordid use of public tax monies as this usage. 

I do believe I have the vapors; I might have to step away from my keyboard.

Kimatian fails to provide any statistics for his outrageous comment, but here are some figures that were reported in the press back in 2013.

A database of 200 million Electronic Benefit Transfer records from January 2011 to July 2012, obtained by The (NY) Post through a Freedom of Information request, showed welfare recipients using their EBT cards to make dozens of cash withdrawals at ATMs... (and then goes on to list several specific establishments not in our area)

That's right:  200 million transactions searched, dozens of these horribly abusive cash withdrawals identified. Oh. My. Lap dance.

He also doesn't mention the key reason this type of legislation is being considered (not just in New York but across the country). There's a risk that states will lose federal safety net funds if they don't illustrate controls over how this money is spent.  According to one Republican State Senator's website,

Federal Law passed earlier this year (2012) requires states to limit electronic benefit transactions in locations including liquor stores, casinos, and strip clubs by welfare recipients before February 2014.

For New York, that's a cool $120M in federal Temporary Assistance to Needy Families (TANF) funds.

Disregarding for a moment that a bill signed into law in 2012 would have been signed by a Democrat, I find it ironic that Kimatian puts forth an example that seems to disprove his own theory. Remember the premise: Democrats offer unencumbered benefits so that people who receive the benefits will become addicted to the benefits and therefore vote for and make campaign contributions to Democrats to keep them in office.

Well, if that's the case, wouldn't one expect Shelly Silver to be bending over backwards to ensure that we don't lost the $120 million? Because if we lose the federal dollars, we would almost certainly have to cut benefits in New York, which would almost certainly antagonize that voting block the Dems work for.

Are there other ATMs that could be used for honest, non-sinful withdrawals of EBT? Sure. Should benefits be spent this way? No. Is continuing this benefit ensuring the continued employment of Shelly Silver? Likely not. Unless, of course, those blatantly sordid ATM users are donating so much money to Silver, or voting in such huge numbers, that he can turn up his nose at 120 million bucks. Where's that data analysis, I wonder?

Folks, this is the same argument as the Republicans make about people buying lobster with their SNAP benefits; it's about as important from a policy perspective, pretending for a moment that there actually is a policy perspective buried in there somewhere. It's a red cape in front of a bull. You know it, they know it, I know it.

And FYI, bills like this also would ban using EBT for lottery tickets.  Now, I don't know about you, but apparently many in government believe that lotteries and casinos are the proper way to fund education and to grow our economy.  Can't we just consider that the benefit-sucking Democratic voters are really just trying to do their part to create jobs and pay for school books? Or, if that's too altruistic for you, that they've fallen for the advertizing the government does, that whole "dollar and a dream" stuff?

Another argument Kimatian puts up is that President Obama killed welfare reform. The same case was made by Mitt Romney and Republican minions during the campaign in which Obama won his second term.

I talked about this in a post back in September 2012, noting that the Republican platform included not one but two mentions of this 'gutting' of welfare reform.  And, the post also noted what actually happened:

• the Department of Health and Human Services acted in response to requests from several governors to give them more flexibility in how the incorporated work requirements in their benefit programs
• HHS would consider waivers to the current law in order challenge states to engage in a new round of innovation for helping families succeed in employment
• HHS would only consider waivers to the work participation requirements that make changes intended to lead to more effective means of meeting the work goals of TANF
• HHS was committed to ensuring that any demonstration projects approved under the waivers would be focused on improving employment outcomes and contributing to the evidence base for effective programs

I included other information in the post, direct citations from the actual documents that were sent to the states by HHS, all of which was easily available for reference. Nowhere in there did I see the part about creating addictive benefits to obtain campaign contributions. Don't fall for it, I said back then, and I say the same thing now.

Yeah, it's easy to be a Republican columnist. Or a moderate blogger.

Kimatian and I apparently agree that continuing to expand the safety net is not the way to run a rodeo, and that there should be some responsibility on the part of recipients to not seek these benefits in perpetuity, and on the government to make sure that real fraud, waste, and abuse of these programs is addressed and stopped.

Where we differ is in our approach. Over the weekend, I published two posts -- one on what Republicans are focusing on that they shouldn't be, and one on what the Dems are focusing on that they shouldn't be, if the goal is to create real jobs, the kind that will get folks out of the safety net and into being productive, taxpaying members of society.

Kimatian, on the other hand, chooses the road more taken -- the demonizing path, the class warfare path, the 47% path.  Sadly, in the dumb-down-the-issue, sound-bite world we wallow in, his take on this is likely to be the winning one.

Quick Takes (v43): WNY OTB's Gamble

Quick Takes

Regular readers know how excited I am that New York State gambles so heavily on gambling to help fund our government.  

We've got four new-ish casinos, which have been getting a lot of attention - they've all been troubled with lower-than-expected revenues, bad credit ratings, at least two have had ownership changes, and so on. 

Most industry experts attribute the poor performance to our very over-saturated market, which includes several Indian Nation casinos, thoroughbred and harness tracks, and Off-Track Betting (OTB) outlets. You can read my coverage on this topic over the last five years here.

One thing I haven't covered all that much is the OTB stuff. There are five regional OTB corporations, with multiple betting parlors around the state (none here in Onondaga County, which is fine with me). Money earned is supposed to be distributed to the municipalities that fall under each corporation's jurisdiction. Unless, of course, that money goes for other stuff.  

Take a look at this reporting from Investigative Post, noting that there's a federal grand jury nosing around into the Western Regional OTB corporation, investigating possible corruption including free health insurance for board members, vendor contracts going to politically-connected businesses, and issues with tickets to Buffalo Bills and Buffalo Sabres games.  Not only that, the report notes,

In addition, the state comptroller has started a previously announced audit and sources said the state Gaming Commission is engaged in some sort of review, as well.

According to the paper's reporting, no one was paying much attention to WNY OTB until about a year ago, when they reported on the free health insurance offered to the part-time board members (employees have to pay for theirs), and that NY's AG seemed to suggest that was prohibited. The AG's opinion and the state comptroller, and the attorneys hired by the OTB, all said it was wrong. An estimate, based on 'normal usage' would put the prohibited program's cost at between $250K and $500K annually.

The ticket issue stems from an accusation that OTB officials give tickets to "family, friends, and political allies," although there have been changes made in how ticket distribution is handled, including "the frequency and method of ticket giveaways." 

The contracting issue has to do with politically-connected vendors getting healthy contracts, including a contract extension given, even after it was reported the contract in question was under FBI scrutiny.

New York has a history of good intentions gone bad, and sadly we seem to excel when it comes to situations where public corporations, boards, and authorities are given freedom to do their own thing - because that almost always ends up with politically connected companies and people receiving benefits they are probably not entitled to, or that are way beyond what's reasonable for the work done, and that regular folks have no way to access.

Kudos to the reporters who have been chasing these stories. Ideally we'll find that there's nothing untoward in how the OTB handles its benefits and other practices, but if there is, the practices need to change - or cease - and the municipalities who are supposed to benefit from WNY OTB need to be made whole for any lost revenue.

And if nothing else, I hope these investigations will put the hundreds of other authorities, corporations and boards that engage in similar shenanigans on notice that, as the saying goes, the house always wins.