Gov. Kathy Hochul may very well be giving two slot parlors with political connections a bonus in getting full downstate on line casino licenses.
Robert Miller
New York Gov. Kathy Hochul may very well be giving two politically-connected slot parlors — together with one whose lobbyists donated to her marketing campaign — a leg up over rivals to win awards for full on line casino licenses downstate, sources instructed The Publish.
Critics cost the method was rigged in favor of the Aqueduct and Yonkers race tracks by way of language inserted into the state price range by Hochul and permitted by the Democratic-run legislature.
The language provides the 2 “racinos”– Genting NY-Resorts World at Aqueduct and MGM-Empire Metropolis Yonkers — credit score for having current infrastructure as a part of the standards in Albany choosing operators for as much as three licenses to supply desk video games.
Lobbying corporations or lobbyists for Genting NY-Resorts World have donated greater than $50,000 to Hochul’s marketing campaign committee/Associates for Kathy Hochul — notably $25,000 from lobbyist John Cordo in August and $15,250 from Patrick Jenkins over the previous yr, state Board of Election information present.
Genting-NY at Aqueduct itself has donated $2 million to politicians and political events throughout the spectrum over the previous decade and has spent thousands and thousands extra lobbying the manager and legislative branches.
Every gaming operator is predicted to ship the state a $500 million upfront for the privilege of acquiring a on line casino license.
The location choice course of laid out for on line casino licenses was among the many mega-deals within the price range that additionally included the controversial $850 million taxpayer subsidy to construct a brand new Buffalo Payments stadium and almost $1 billion in slush funds that the governor is sprinkling across the state as she seeks re-election.
Prices of the favored language for the racinos come on the heels of Hochul being accused of pay-to-play schemes with donors — together with a agency that received a $637 million no-bid contract to offer COVID exams kits whereas its founder and associates delivered almost $333,000 in donations to her marketing campaign.
The important thing line within the legislation says that the on line casino siting board “might think about personal capital funding made earlier” to its enactment — investments and belongings that solely Genting-NY at Aqueduct and MGM- Empire Metropolis Yonkers have already got in place within the metro-region. Each have run their slots parlors for greater than a decade.
Genting, for instance, additionally has opened a lodge to serve a fully-licensed on line casino.
The language within the legislation says the minimal funding “might embrace a on line casino space.”
Different on line casino operators vying for a license — together with Wynn Resorts, Arduous Rock and Sands — must construct new services from scratch.
Critics stated the language smacks of crony favoritism.
“It’s extremely problematic. It does really feel just like the repair is in,” stated Jason McGuire, president of the New Yorker’s Household Analysis Basis, which has opposed playing enlargement in New York.
“This isn't new financial improvement. It’s a retroactive funding. It’s unfair to different bidders.”
An Albany whistleblower who noticed the on line casino merchandise buried within the price range stated it appeared that Hochul “was much more involved about inserting language to rig the bidding course of in favor of on line casino operators who fill marketing campaign coffers, moderately than deal with COVID restoration or ridding our streets of criminals.”
A supply near a rival bidder known as the price range language “hilarious” — and a transparent nod favoring the racetrack slots parlors.
The bidding and choice course of for the brand new on line casino licenses shall be made by a state-siting board — the Gaming Facility Location Board — overseen by the Hochul-controlled state Gaming Fee.
Hochul, by way of a spokesperson, insisted she wasn’t rigging the bidding course of and that her workplace had used language beforehand adopted by her predecessor, Andrew Gov. Cuomo concerning web site number of upstate casinos.
“The FY23 enacted price range units out a good, aggressive and clear statewide course of whereby siting selections are made by the impartial Gaming Facility Location Board,” stated Hochul spokesman Avi Small. “As a part of the statewide web site choice course of for casinos, legislative language was included to permit the Board to think about prior capital funding in figuring out the minimal capital funding quantity, simply as was included within the 2014 and 2015 on line casino siting course of.”
However a supply acquainted with prior price range negotiations when Cuomo was governor disputed Hochul’s portrayal of her predecessor’s place.
“That language [from 2014-2015] was added by the legislature and the upstate completion was fully totally different. Right here, for 3 years the legislature needed to award downstate licenses and needed Genting and MGM to get two out of the three, however Cuomo wouldn’t do it,” the supply stated.
Each of the racinos, because it seems, have highly effective political benefactors pushing their case for a full on line casino license.
MGM-Empire Metropolis borders the districts of Senate Majority Chief Andrea Stewart-Cousins (D-Yonkers) and Assemblyman Gary Pretlow (D-Mount Vernon), who chairs the committee overseeing casinos.
“In fact I’m going to assist my hometown on line casino, which by the best way, has executed the work,” Stewart-Cousins (D-Yonkers) stated in February.
Genting-NY is within the district of Senate Racing, Gaming and Wagering Committee chairman Joseph Addabbo. Jenkins, certainly one of its lobbyists, additionally has deep ties to the Queens Democratic Get together chief Gregory Meeks and is a school pal of Meeting Speaker Carl Heastie (D-Bronx).
Addabbo claimed credit score for having Hochul insert language into the price range to assist the Aqueduct slots parlor.
“Why shouldn’t Resorts World be given acknowledgement for the investments they already made? One of many issues we’ve been speaking about in Albany is velocity to market.
Velocity to market must be a consideration,” Addabbo stated.
New York Metropolis Council Speaker Adrienne Adams despatched a letter to the Gaming Fee final yr backing Genting’s bid for an expanded on line casino license.
Genting-NY vowed to double its workforce at Aqueduct if it wins a on line casino license and famous its monitor file of producing billions of dollars in income for the state to fund training.
“As a associate with New York for greater than a decade and its largest taxpayer, we share a dedication to creating good-paying union jobs and producing much-needed income for the state, particularly given the present financial challenges that many New Yorkers face,” a spokesman for Genting-Resorts World stated by way of a spokesman.
“We sit up for placing a proposal ahead that builds on our confirmed monitor file of offering hundreds of union jobs, supporting native small companies and group non-profits, and producing greater than $3 billion for New York’s public colleges. If granted a full on line casino license, we are going to greater than double our union workforce at our world-class Queens property and proceed to raise our unparalleled assist for New York.”
In betting circles, many imagine the monitor slot parlors operators would win at the least one — if not two — of the downstate on line casino licenses up for grabs, due to their confirmed monitor file of producing revenues for the state — in essence, turning into an arm of the New York Lottery Division, sources stated. Each corporations have been vetted and make use of a whole bunch of employees.
The prospect of bidding for a possible on line casino license in vacationer magnet Manhattan has gaming operators salivating.
Different on line casino pursuits have showered Hochul with marketing campaign contributions. As beforehand reported, brass with Arduous Rock organized a fundraiser for Hochul and raised greater than $100,000 in contributions from its associates and Marc Holliday, chairman and CEO of actual property big SL Inexperienced, which is trying to associate with a on line casino operator, has donated $69,329 to Hochul — together with $41,580 in August.
Extra reporting by Zach Williams and Josh Kosman
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