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State 'researching' non-Indian casinos

Mon, Sep 12th 2011 12:00 am

By JAMES FINK
jfink@bizjournals.com | 716-541-1611

The concept of allowing non-Indian owned casinos in the state remains just one of several plans Gov. Andrew Cuomo is considering to help grow New York coffers.

In Buffalo Sept. 7, he said the state is "only researching the matter" about whether to allow the development of casinos by non-Indian groups.

"We are studying all options," Cuomo said. "We are just exploring all options when it comes to gaming. Nothing more has been said."

The development of more casinos has been gaining traction. There has been talk in Rochester that Seneca Gaming Corp. may open a casino there. And Western Regional Off Track Betting Corp. said last week it would like a casino to complement Batavia Downs race track. The horse racing track already has a slot machine operation.

In Western New York, only the Seneca Nation of Indians is authorized - through a 2002 compact with then-Gov. George Pataki - to operate full-scale casinos. It has gaming operations in Salamanca, Niagara Falls and Buffalo. The compact avoided the public referendum process, which would have included ballot issues and dual approvals from both the New York State Assembly and Senate in successive years.

Cuomo was critical of the compact, saying, "New York was backed into gaming with a statewide thought plan."

Seneca Nation President Robert Odawi Porter, during a Sept. 6 hearing before the state Senate Committee on Racing, Gaming and Wagering, said anything other than Indian-operated casinos would be detrimental and affect already strained relations between the tribe and state.

"Are we now faced with New York state breaking its side of that promise?" he said.

Cuomo reiterated that New York is simply exploring its options.

"Why not look at it?" Cuomo said. "This is not a simple issue and we are taking our time."

Seneca Gaming, since opening the Seneca Niagara Casino & Resort in late 2002, employs more than 3,600 people. Last year's payroll topped $95.4 million.

Critics say casinos provide little economic development spin-off and their profits are self-contained. Supporters counter that casinos create new jobs and spur economic development.