Can Cuomo’s Proposals Benefit Schenectady-based Rivers Casino?

On Tuesday Governor Andrew Cuomo came up with a written budget plan concerning the ongoing financial crisis, and directions for the state to overcome it. This plan included several points that will directly or indirectly affect the gaming industry, such as old-fashioned horse racing. Cuomo’s ideas will certainly put a smile on most gambling operators across the state.

Rivers Casino’s officials in Schenectady were more than glad to hear that the first proposal mentions them specifically name plus the Saratoga Casino. Issuing suspension of payments that Rivers casino is obliged to pay horsemen who either own or train standardbred harness horses that are racing in the Saratoga Casino, due to the unprecedented situation.

The Other Four Proposals

 

Next on the list is a petition to lower tax on slot machine revenue of nontribal casinos to 25%, which at the moment is at 45% at Rivers and 37% or 39% for the rest of the commercial casinos. In the previous fiscal year Rivers managed to generate over US$57.8 million in tax revenue, of which 91% came from slot machines.

The establishment of an online sports wagering state platform is also in talks. But it has to be run by a private firm to be able to generate a much bigger amount of revenue for the state, instead of the state-licensed, state-taxed private operator which will bring significantly less income. Under consideration is also to grant the three casino licenses that were not issued amount the state-authorized ones.

The last proposal is to stop the community benefit, which the state has to pay to local authorities for the host of horse racing and video gambling with the name of racino. Last fiscal year the Saratoga Casino made US$60 million in tax payments to the Saratoga Springs government, from which the government received US$2.33 million to US$775,198 for Saratoga County.

Feedback

Rivers Casino’s response was quick to respond to the proposed ideas of the 2021-2022 budget summary. Officials of the casino were pleased to announce that they are pleased to hear and support the Governor’s proposals will contribute positively to Schenectady’s economic state. They also added that are looking forward to bringing an online betting platform for the state of New York. The Casino, however, did not provide any comments on the possible reduction of slot machine taxes, despite having the highest tax rate among all other 3 casinos.

Online Sports Betting in NYS

Governor Andrew Cuomo believes that launching an online platform for betting on sports events, will bring around US$500 million in revenue for the state, and this will benefit the state and gambling enthusiasts. The proposal is to have a single-operator run by the state, thus claiming most of the revenue.

Governors Island’s Future

Mayoral candidate Andrew Yang came up with a way to raise more revenue for the state, with his latest proposal to launch a land-based casino on the territory of Governors Island. Currently, there is plenty of unused space on the island, but his proposal is facing difficulties from the 2003 deed restriction issued by the federal government.

Source: Cropley, John. “Rivers Casino in Schenectady could benefit significantly from Cuomo proposals”, Daily Gazette, January 26, 2021