Cuomo calls racinos 'a scandal'

Governor stops deal for convention center, ends Genting partnership

• Gov. Andrew Cuomo discussed his views on racinos and casinos with reporters at the State Capitol in Albany, N.Y., June 4, 2012. (Skip Dickstein / Times Union)
  ALBANY — Showing a surprising hostility toward gaming interests lobbying in New York, Gov. Andrew Cuomo on Monday called the state's racino structure "a scandal" and abruptly broke off his partnership with Genting, the huge Malaysian resort company proposing a convention center at Aqueduct in Queens.

   

  In his words and body language, Cuomo expressed disdain for the New York Gaming Association, of which Genting is a key member. The association has pushed lawmakers and the governor toward making the nine racino sites statewide as the top candidates to become full-blown casinos with card and dice games.

  He also said he walked away from his planned union with Genting for what the governor had been touting as North America's biggest convention center. He said he could not tolerate Genting's demands and did not want to be party to backroom deals. Talks could restart in late 2013, he suggested, after the conclusion of a series of envisioned casino expansion votes.

  The Gaming Association's members are a major lobbying force in Albany, spending millions of dollars a year advocating for pro-gambling initiatives.

  Since he announced his partnership in January, Cuomo has demanded confidentiality on his private talks with Genting. But on Monday, the governor revealed that the resort company sought terms that made Cuomo uncomfortable — such as assurances that its Aqueduct racino would be protected in an era of legalized casinos in New York.

  For instance, he said, Genting wanted to be sure that no casino could be located near its large video lottery terminal facility on the grounds of the state's thoroughbred track in Queens.

  "The current racino situation in this state is a scandal, in my opinion," Cuomo said as he answered numerous questions about the future of casinos and his quest to replace the Javits Convention Center in Manhattan with a world-class facility for large gatherings.

  He said the deal he had rolled out in his State of the State address in January is now off indefinitely because of the unsettled nature of the gambling expansion.

  That deal with Genting called for a 3.8 million-square-foot convention hall that the private company proposed spending $4 billion to develop. It had said publicly that the plan came without any strings attached, but Cuomo revealed that Genting was concerned about what would happen to its investment if the governor is successful in his bid to change the state Constitution to allow up to seven casinos. What if one of the facilities opened in New York City, and Genting didn't run it?

  The governor said he doesn't want politics to enter the gaming expansion plans of New York, and suggested that a commission — not dominated by politicians — should be set up to decide any future sites and projects. Cuomo said he wants projects that are multi-dimensional, including convention space or hotels and casinos.

  The constitutional amendment can happen if the Legislature next year follows up this year's passage of an amendment resolution with another positive vote; it would then require a successful statewide referendum, also in 2013.

  "The current racinos say the selection should be limited to the current racinos," Cuomo said. "I'm 100 percent opposed to that. I believe it should be an open competition." He didn't explain exactly why he views the current racino structure as scandalous, but suggested that taxpayers are not getting a fair return for giving each track the rights to set up VLTs.

  The racino industry, which formed the state Gaming Association last year, has frequently complained that the sums it shares from VLT operations with the state are unusually high compared with other states.

  Asked about Cuomo's remarks, Gaming Association President James Featherstonhaugh said he was "somewhat surprised by them."

  "We continue to think we have a point of view that will ultimately be helpful to the state government and all the citizens of New York state," he said, "and we hope to politely continue to make that case."

  Cuomo said that casino siting decisions should be based on the best location, best operator and best deal for the state. He'd like to see geographic balance, and didn't rule out locations in western New York — even though the Seneca Indian Nation argues that it holds exclusivity rights in the region. He did, however, say he disliked Manhattan as a potential site.

  The governor also revealed that he doesn't want to allow local votes on hosting a casino. "I don't want to create any unnecessary burdens," he said.

  In Massachusetts, where up to three casinos are allowed under recent law, some communities have voted against gambling palaces, causing casino companies to pack up.

  A Genting corporate statement suggests it would compete for rights to develop.
  
  Read more: http://www.timesunion.com/local/article/Cuomo-calls-racinos-a-scandal-3608897.php#ixzz1xPM4QNsg