ALBANY – Gov. Pataki and state lawmakers yesterday agreed to the biggest expansion of gambling in state history – six new Indian-run casinos, including three in the Catskills, Powerball lottery, and video slot machines at some horse tracks.
Pataki and the lawmakers struck the deal – which excludes New York City, despite Mayor Giuliani’s pleas – because they are desperately seeking new revenues in the wake of the World Trade Center attacks.
The casino bill calls for $200 million in spending on economic development, including the creation of a “Liberty Zone” to aid redevelopment in downtown Manhattan through tax breaks and other incentives.
The new gambling measures could bring in an estimated $1 billion a year in revenue for the state, once fully implemented.
The Catskill casinos, a 90-minute drive from New York City, will likely be up and running in about three years, officials said.
The gambling halls will provide the first New York-based competition to the massive casino operations in Atlantic City and the two huge Indian-owned casinos in Connecticut.
“We’re surrounded by casinos,” said Senate Majority Leader Joseph Bruno (R-Rensselaer).
“We’re going to be saving these people the time and expense of traveling.”
Bruno said he expected state lawmakers to approve the agreement as soon as today.
The Catskills casinos would be a big blow to Donald Trump, who has lobbied for years to block competition for his Atlantic City gaming palaces.
Trump did not return calls yesterday seeking comment.
In addition to the Catskills casinos, three other Indian-owned gaming halls – in Buffalo and Niagara Falls – will be authorized.
Two Indian-owned casinos already exist in New York, near Syracuse and on New York’s northern border with Quebec.
Also, along with the Aqueduct thoroughbred track, several of the state’s financially hard-pressed harness tracks, including Yonkers and Monticello, will be authorized to operate slot-machine-like video lottery terminals.
Bruno, once a strong gambling foe, said the mega-gambling package “would have been unheard of” before the World Trade Center attacks.
Pataki’s budget office estimates New York state will lose up to $9 billion in revenues in the next 18 months because of the attacks’ economic impact.
The wildly popular Powerball lottery game – now offered in 26 states – is expected to begin here shortly and bring New York state as much as $200 million in annual revenue.
The gambling deal doesn’t allow any casinos in New York City, despite Giuliani’s plea that lawmakers give the city the option of participating.
“If they allow casino gambling outside the City of New York, you’re going to drain resources from the city – and you can’t do that to the city right now,” Giuliani said.
But Assembly Speaker Sheldon Silver (D-Manhattan) – whose district includes the World Trade Center site – opposes city casinos, even though he backs the overall package.
“The social ills in such a compacted city as New York City would far outweigh any benefits that are received from casinos,” Silver said.
Gambling opponents charged the deal would violate the state Constitution’s ban on slot machines, and vowed to sue.
Assemblyman Sam Hoyt, a Buffalo Democrat, contended, “If this is approved, then New York, next to Nevada, will be the gambling mecca of the United States, and I’m embarrassed by that.”
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WINNERS AND LOSERS FROM THE GAMBLING DEAL
WINNERS
Gov. Pataki: Delivered a badly needed economic boost to two of the state’s most financially hard-pressed regions -the Catskills and western New York -just a year before he is expected to face reelection.
Assembly Speaker Sheldon Silver (D-Manhattan): Insisted on placing casinos in the Catskills, where he owns a second home.
The New York Racing Association and the state’s harness tracks: The tracks face bankruptcy and NYRA now has a new way to compete with OTB.
The Seneca and Mohawk Indian nations, which will operate what could be among the most lucrative casinos in the nation.
LOSERS
Mayor Giuliani: Demanded that New York City be included in the deal, but it wasn’t.
Donald Trump: Had fought against casinos in New York, trying to prevent them from competing with his Atlantic City gambling palaces.
Mohegan Sun and Foxwoods, the two huge Connecticut casinos which will soon have major new competition.
Republican Sen. Frank Padavan of Queens, the Legislature’s leading opponent of casino gambling, along with The Catholic Conference, which warned that widening gambling will be socially destructive.