Rival New York casino operators make their pitches to state

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Rival New York casino operators make their pitches to state

Sept. 9, 2014 1:35 p.m. ET

ALBANY, N.Y.—The casino rivalry between the Catskills and Orange County was on full display here Tuesday as dueling companies used videos and slideshows to pitch splashy hotels and gambling halls before a state panel reviewing the applications.

The state is considering 16 applications to build a maximum of four casinos in three different regions. Bidders in the Catskills say a casino in Orange County would cut off their supply of gamblers from New York City.

"If a license is granted in Orange County, do you still want a license?" asked Dennis Glazer, a member of the New York Gaming Facility Location Board.

"We do not believe that if you put a casino in Orange County that a casino in Sullivan County would be sustainable," said Mitchell Grossinger Etess, chief executive of the Mohegan Tribal Gaming Authority, owner and operator of the Mohegan Sun. It teams wants to open a $500 million project in the town of Thompson in Sullivan County.

"So the answer is?" Mr. Glazer said.

"No," Mr. Etess said.

The casino sites are restricted to the Albany region; the southern tier along the border with Pennsylvania; and in the Hudson Valley and Catskills. On Monday, seven applicants from the Albany region and the southern tier presented their projects.

No region will be awarded more than two casinos.

The four casino licenses are expected to be awarded this fall. The gambling expansion was legalized last year by the state Legislature and approved by referendum.

Tuesday's presentations centered on the competitive dynamics between the projects proposed in Orange County and the Catskills.

Some companies looking to do business in Orange County said they could coexist with casinos in the Catskills.

"We are position to complement not compete with the Catskills casinos," said Neil Bluhm, chairman of Rush Street Gaming, which is working with Saratoga Casino and Raceway for a proposed casino in the Town of Newburgh, located near Interstate 87 and Interstate 84. The Rush Street venture is the farthest north of those proposed for Orange County. "We don't cut off the traffic heading to the Catskills."

The Hudson Valley and Orange County projects has fueled the most competition and attracted the biggest names. Nine applications were submitted for the region, including proposals from Caesars Entertainment, casino operator Penn National Gaming with real-estate developer Cordish Cos., and Malaysian gambling company Genting Group.

Many of the groups used videos that had the feel of political advertisements to make their case. The Nevele Resort Casino and Spa, which is proposing a project in Ellenville, N.Y., in Ulster County, included black-and-white film footage of the Catskills during its heyday in the 1950s accompanied by soft music. It juxtaposed that with shots of the region with empty storefronts and dilapidated buildings.

"What we are talking about is the very real possibility of ending unemployment in Ellenville," said Mike Hein, Ulster County Executive, in the Nevele video.

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