A rendering of Lago Resort & Casino, being built in Tyre, Seneca County. A group of Seneca County residents have filed a lawsuit against public officials and the developers of a casino claiming the project got inappropriate financial incentives.(Photo: Provided photograph)

ALBANY – A state Supreme Court judge rejected an attempt by a competitor to derail a proposed casino in Seneca County.

Finger Lakes Gaming & Racetrack brought a lawsuit in March challenging the state Gaming Facility Location Board's recommendation of a Tyre casino for a gaming license, saying the Lago Resort & Casino would impede on the existing racetrack's business.

Acting Justice James Ferreira ruled in Albany late Friday that the Farmington track doesn't have standing in the case. The lawsuit had argued that there are four gambling facilities — three racinos and one American Indian casino — within 75 miles of Lago's proposed location, which is just north of the Thruway.

"The 'local impact and siting factors' to be considered by the location board do not require the consideration of any negative competitive impact on existing gambling businesses," Ferreira wrote.

He added, "The court does not find the substance of the location board's determination to be relevant to the issue of standing."

Finger Lakes, which began offering video lottery terminals in 2004, is just 27 miles west of the proposed Lago casino, which is owned by Rochester-area mall magnate Thomas Wilmot.

Wilmot praised the judge's ruling.

"Our goal all along has been to build a world-class destination resort that will help bring increased tourism to the Finger Lakes region," Wilmot said in a statement. "This is a $425 million development that will create more than 1,200 union construction jobs. Once open, the resort will employ nearly 2,000 employees, not to mention the related jobs that will be created throughout the region."

The Finger Lakes track, which is owned by Delaware North, the Buffalo-based hospitality giant, said it was disappointed in the decision. It said that Finger Lakes pays out 79 percent of its revenue to the state, horsemen and other entities, while Lago would have a tax rate at about 37 percent.

"Lago, itself, told the board that at least half of its revenue would come from existing gaming venues in the region," Finger Lakes said in a statement. "If built, Lago will cannibalize revenues and jobs from surrounding establishments and communities, particularly from western New York."

The favorable decision follows a legal setback for Lago, one of three upstate casinos picked Dec. 17 to build a gambling facility.

A state appeals court on July 10 voided an environmental review by the Tyre Town Board, saying that the Seneca County town didn't properly assess the planned casino before granting approval.

As a result, Wilmot has suspended "continued construction" on the casino until the situation is resolved. The casino has yet to receive final approval from the state Gaming Commission.

Meanwhile, the Seneca County Board of Supervisors is slated Tuesday night to approve a resolution to back both the Tioga Downs casino proposal in the Southern Tier and the Lago plan, saying they would benefit the region.

Tioga Downs owner Jeff Gural contended that a resolution last month from the board infringed on Tioga Downs' pursuit of a gaming license for the Southern Tier because it backed a 90-mile exclusivity zone that would include the racetrack.

But Earle said the zone wouldn't impact Tioga Downs, and he said the measure was aimed at excluding any more competition in the region. Tioga Downs is the lone bidder for a Southern Tier casino license and would be about 90 miles from the Lago casino.

"The owner of the Tioga Downs did not fully understand that what we had proposed was a 90-mile exclusivity zone," Don Earle, chairman of the county board said. "That's 180 degrees the other way. If they were able to secure one it would help us and other towns and communities around the state."

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Joseph Spector is the Gannett Albany Bureau chief.

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