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.

Wondering on Wednesday 3/17/21

Today, we're playing a fill-in-the-blank version of our wondering game. You're free to complete the answers any way you want. 

1. Someone suggested Meghan Markle might run for president in 2024. I wonder, will this really make Former Guy more likely to _______?
2. I wonder how many people have learned a new skill, such as _________ ,since the pandemic was declared a year ago this week?
3. A crossword puzzle clue asked 'where politicians like to play.' The answer was Peoria;  I wonder, wouldn't they rather play in ________?
4. Just days after the American Rescue Plan passed, stimulus checks are arriving. I wonder if people will ______ the money, or will they _____?
5. The Washington Post issued a lengthy correction for an article about _______between a politician and a woman. Was the politician ______? And was the woman ________, I wonder?
6. There are all kinds of weather warnings - historic warnings, I've heard - for parts of  Louisiana, Alabama, Mississippi, Arkansas and Tennessee beginning today. If a Sharpie was needed to update the weather maps, I wonder if ______ would be best suited to handle the task.
7. At a COVID briefing today, I had to wonder when I heard my Sonofa Gov Andrew Cuomo say  _______.
8. The NY Assembly and Senate are working on the budget, and might make mobile sports betting, legal pot, and more casinos a reality. I wonder, will they legalize ______ next?
9. Every now and then, I wonder how much longer we'll __________.
10. _______ and ______ are worth a wonder or two - do you agree? 

I'd love to see your answers - chime in! And I'd love to know what you're wondering about.

Top Posts of 2019

With the new year upon us, I've been cranking up the thinking and planning sections of my brain, as I'm sure many of you have. For me, that included some penciled in 'wish I could do better on...' things. Not resolutions per se, but intentions I hope to be mindful of this year.  

And it also included my annual look at the blog, updates to the Pages, considerations on changing the layout (none this year, or at least none now), and I also looked at last year's posts. In the course of that, I identified the five posts that appeared to spark your interest the most. Let's take a look. 

The top post was news in January from The Update Desk about the Allyn Family Foundation (AFF) and a new, mixed-use property it's developing in the city of Syracuse, which will house a food hall and market, office space for not-for-profit organizations, and residential units. A public name-the-market contest was held, and that's where our story picks up.

I vaguely remember the social media post where we could vote, and the overwhelming number of comments asking why it didn't mention Syracuse or the Salt City...

And it turns out, the AFF listened to what people wanted, and the name has been chosen: the Salt City Market. It's perfect, and it's a perfect example of ensuring the kind of community buy-in that the organization is looking for. Maarten Jacobs, one of the AFF folks, said

We want this to be a space that people feel they have ownership of the minute it opens.

The post was about a foundation, and a building, and a name - but it was more about the value of listening and responding to constituents, something that we often wish happened more - and something the majority of us can learn to do better. 

Number two was a TGIF post, also from January, dealing with the Covington Catholic High School kids and their interaction with a Native American Vietnam-era veteran, and the media reaction to it. But the post also included someone else who had a bad week: the president. Among other things, 

• five former DHS secretaries, including his own former Chief of Staff General John Kelly, admonished him to get the government reopened;

• he tried to bully his way into delivering performing his State of the Union address as originally scheduled, saying he was going to show up at the appointed time, until

• Nancy Pelosi let him have it with both sides of her gavel, telling him in no uncertain terms that she would not allow that to happen; 

And my favorite part?  

• he threatened to find an alternate location, finally caving in a tweet around midnight (presumably after talking with Sean Hannity) that he would accept Pelosi's decision

In November, the third most popular post also involved the president; this time, it was his proclamations which attracted the attention of the Irony Board. 

This year, in addition to celebrating our Native American heritage, we are celebrating several other things, including National Veterans and Military Families Month, with a proclamation noting (in part - ed)

...Together, we remain committed to fostering a national community of support for these brave heroes and their families.

This president signed this proclamation? This president, the guy who mocked a Gold Star family for speaking out against him; who assaulted the life and memory of John McCain; who deports  immigrant veterans despite the promise of citizenship for their patriotic service or the immigrant families of our veterans and soldiers; and who most recently has turned his "eternal gratitude" on Lt. Col. Alexander Vindman? 

But that wasn't all. Similar ironies were rampant related to his proclamation on our first-ever celebration of  National American History and Founders Month. It's mind-boggling, it really is. 

Coming in at number four? News in March from  The Update Desk, again, on our grand experiment here in New York with commercial casino gambling.

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...

The financial issues for del Lago and the other casinos have only continued since then; I'm confident I'll have multiple updates on this subject again this year. 

And rounding out the top five was a Poll Watch entry from April, with information gleaned from a Fox News poll taken in March. As did many polls back then (and more current ones as well), it referenced the president's negative approval rating and the even more negative gap between strongly approving and strongly disapproving respondents. 

It also talked about a handful of key issues that have been part of the president's plan, and noted that on three of the four issues, he was under water with respondents.

Questioned on Trump's handling of four key issues - the economy, taxes, immigration, and health care, only on the economy, at +8, did he have a net positive. On taxes (-7), immigration (-13) and healthcare (-15), his approves were below his disapproves. Even worse, the numbers on his signature piece of legislation, the Christmas tax cut, are down from a year ago.

Of course, the only polls that matter are the ones that show him in a positive light, that show him to be the president he thinks he is.  That, too, will continue this year, I'm sure. 

In to 2020 we go - not knowing what will catch your eye this year, but intending to do just that. I hope you stick around.

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.

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.

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.

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 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.

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. 

The Top Five Posts of 2017

OK, we've come to the last day of December, so you know what that means, right?

Yes, the time when everyone does that backwards glance over their shoulder, looks at the year that was, and makes plans for the coming year.

I'm not going to aggravate over it too much; there are professionals who are paid a ton of money to do that. Maybe we'll have the chance to catch up with some of them later, we'll see. 

In the meantime, here are the top five most-viewed posts of the year, with an excerpt from each. Not surprisingly, the president is connected to four of the five.

(1) January 21st: #NeverTrump Answers to #TrumpVoter Questions. I could have included dozens more questions and answers in this post, but limited it to a few of the most common ones that could be strung together in a conversation.

It's January 21, 2017 and it appears that at least a very vocal, and, it seems, a very large percentage of Trump voters are stuck in a 'sore winners' rut and don't know how to get out of it. Which means I guess it's up to people like me, a #NeverTrump, to try and help them out. 

 Wish me luck.

Yeah, we'll need more than luck, I'm afraid. But I won't give up the fight. And I will continue to fight Trump without mentioning Hillary, for this is not about who lost - it's about who won.

(2) June 3rd: Poor, Poor Pitiful Me (v1). Kathy Griffin was upset that she faced a backlash for her hideous 'joke'?  Oh, stop it.

Oh, Kathy Griffin, you poor thing you. Linda Ronstadt understands, she does.

I know you spend your time on the D-list, but does that mean you're living under a rock? Had you no idea that your highly offensive "comedic" video, you slowly raising your arm to gradually display a bloody, severed Donald Trump head, would bring consequences?  

Did you really think that Trump himself, the victim of your prank, would be appreciative? Did you now know that the Tweeter in Chief, his family, staff, friends and supporters would rain down 140-character responses upon your (still attached) head?

(3) October 3rd: OrangeVerse XVII Puerto Rico. The poetry posts did well this year -- apparently I'm not the only one who is fascinated by the president's use of language.

The president held a rally in (oops, my bad) visited hurricane-ravaged Puerto Rico today, and boy was he proud of himself. So proud, he made everyone else tell him how wonderful he and his administration are. And then he was bigly very proud. Here he is in his own words.

My People, Tis of Thee

And to all of my people - 
And I have to say
General Buchanan...
there's no doubt about it
you are a general.
There's a reason
 you're a general
right?
But he's not games:
I said
give me a general
I don't have to have any -- 
I don't want
to have a general
that plays games...

(4) June 4th: Sunday School 6/24/17 - this was the one where I didn't have the heart to fight my way through the Sunday talk shows, and instead provided links to arts, music and phys ed - important yet frequently cut courses when it comes to public education spending.

Maybe it's because I've been spending too much time weeding my garden, and I don't have the energy to pull the weeds out of the comments of the people who defend Trump on the news shows.

 Maybe I simply lost interest this week, after all of the absurd tweets send by #NotNowNotEver #NotMyPresident Trump. 

Or maybe, it's just covfefe. 

(5) November 24th: Meanwhile, Back in Albany (v12), in which we looked at the reality of expanding casino gambling in New York State.  Are we getting the promised benefits from the constitutional amendment? 

The sure thing the government promised us? Let's look back that 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 licencees are underperforming. 

So there you have it -- another year in the books. All the best to you and yours in 2018.

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.

Wondering, on Wednesday (v28)

Have you heard the news coming from the New York State Fair?  

We’re learning from officials that somewhere around 20 offers had been put out for Grandstand acts for the 12-day run of the Fair this fall, and only one – country star Eric Church – has been booked. According to the Fair people, there are two reasons we’re having a problem: the short run of the Fair, and the high cost of acts that are on the road. The threat is that there may be only one Grandstand performer this year, which would hurt the fair almost as much as booking acts that only draw a couple thousand people at the 17,000 seat venue.  (Carly Rae Jepson, anyone?) 

I'm wondering, on this Wednesday, how this news impacts plans for the OnPhitheater being built across the street from the Fairgrounds, which has a commitment to hold a concert during the Fair this year, and which will replace the Grandstand going forward. Remember, we were originally told that the OnPhitheater would complement but not replace the Grandstand, and as we all suspected, it is of course going to be the pay-for concert venue for the Fair.

And unless someone's thinking about extending the Fair beyond the traditional 12 days, won’t we have the same problem going forward? And does anyone think prices will be going down anytime soon, particularly when the OnPhitheater will be in competition with other upstate outdoor venues and casinos, making it a musician's market not a venue market? 

Here's one more thing I'm wondering about. Remember the big darn deal that was made when it was announced that Billy Joel would be playing his 400th show at the Carrier Dome? Wasn't it the same promoter who announced at the same time that Buffalo would be getting multiple Garth Brooks shows? And even more Garth shows were added based on ticket sales? Is there something we're missing here? 

Speaking of missing things, I hope you caught the news from the Upstate Freshwater Institute and that we can safely swim at the north end of Onondaga Lake? It's true, they say: the water is clear enough, and the bacteria levels are low enough, for swimming.  We're still not able to eat the fish, but as far as taking a dip, we're good.

And so now County Executive Joanie Mahoney is thinking we could have a study to see about building a beach up at the Liverpool end of the lake. Are you wondering, like I am, how long it will take before we'll have another JoAndrew bus tour, where Mahoney and our Sonofa Governor can get all of the old  Onondaga Lake plans dusted off? Maybe we'll see another pile of taxpayer dollars dropped into the area?

I mean, our Garth-loving friends have the Buffalo Billion, we might as well have OnMillions, right? 

The Sonofa Gov Strikes Again

Andrew Cuomo has been a very busy man these past few weeks. He was pretty quiet after winning reelection in November, but he's been making some noise of late.

Photo credit: Cuomo's bio

First, he got himself engaged in the 'negotiations' over a possible pay raise for the state Legislature, trying to obtain additional concessions on ethics.  That effort failed, probably for the best; I don't know about you, but I don't believe that the Gov should be the decider on whether our elected officials in Albany deserve a raise.

He had his year-end press conference, where it was announced that fracking was a no-go for New York. That decision crushed the hopes of many in the Southern Tier, they of course being the folks under which the majority of the frackable gas resides, and the ones who can see Pennsylvania's fracking growth from their porches.

And there was the announcement by the Gaming Facilities Location Board (GFLB) letting us know who the winners were in the contest to build new casinos.  Three were authorized: one in the Catskills, one in Schenectady, and the third in the town of Tyre, near Waterloo, in Seneca County. The casino decision was another blow to our neighbors down south; the winner for "Southern Tier - Finger Lakes" region ended up not being in the Southern Tier.

Cuomo, who deflected credit (and blame) for the fracking and casino decisions, tried to say that neither had anything to do with politics and that he wasn't involved. The fracking decision was made based on science, and the casino location decision was entirely up to the GFLB; his hands were clean on both. Not surprisingly, a lot of people didn't believe him, given his record of similar statements on the 'independent'  Moreland Commission.

Now, Cuomo has stepped up with a letter to his, I mean 'the' Gaming Commission, looking to have a reopened bidding process for a casino in the 'true Southern Tier.'  At this point, the only bidder from the 'true' region is Tioga Downs, as a rival in Broome County will support the Tioga package if bidding is reopened. Cuomo suggests there might be national interest as well, although with a saturated market and casinos closing in Atlantic City, that may be as likely as the odds of winning the jackpot on a single pull on a slot machine.

However, since the Sonofa Governor has decided that we need a casino in the Southern Tier, it merely remains to be seen how he will make that happen. Maybe as part of the budget negotiations next spring? Say, a pay raise for the legislators if they pass some special bill for Tioga? Maybe he'll promise to stay away from any more ethics legislation if they go along with a win for the Downs?  It would probably serve us well to remember that the house always wins - and in this case, the 'house' is the Governor's Mansion.

And yesterday, Cuomo vetoed his own legislation delaying the implementation of teacher evaluations which included Common Core scores.  Cuomo says it was because there's no need for this particular legislation, given that just about every teacher in New York was rated as effective or higher.  He's now promising 'comprehensive reforms' in teacher evaluations next year. And we can trust that these reforms are because we need them, and not at all tied to the failure of NYSUT, the teacher's union, to support Cuomo's re-election bid.

We can trust him on all of these decisions, right?  Right?