HANDICAPPING INSIGHTS
FEBRUARY 28, 2014
by Dick Powell
Like the people that read this column, I am always willing to take chances
and admire those that do.
That said, how in the world can anyone think putting a full casino right next
door Saratoga Race Course is a good idea? Who wants to take the chance of
damaging the crown jewel of American racing? Not me.
When the New York casino constitutional amendment passed in 2013, it called
for four casinos to be built outside of New York City. There are four regions
that were carved out upstate in and around agreements with Native American
gaming sites.
One such region is the Saratoga/Albany area and it will definitely have a
casino with poker, blackjack, craps, roulette etc. Saratoga Raceway has a video
lottery facility across Nelson Avenue with 1,782 VLTs. The VLTs have been in
operation there since January of 2004 and purses for the harness horsemen have
more than tripled.
One could argue that part of the decline at Saratoga Race Course the past 10
years has been due to 1,782 VLTs only a few hundred yards away. If that is true,
it is a very small part. Walk through the Raceway’s gaming floor and you will
see more walkers and oxygen tanks than horse racing products. There is little
crossover but logistically it had to hurt some.
In 2001, when the VLT legislation was being proposed, I was the media
spokesperson and strategist. Nobody wanted VLTs at Saratoga Race Course for many
reasons and we knew that the ones next door might have some impact. That was
more than balanced by 5,000 VLTs downstate at Aqueduct so the net effect was
going to be extremely positive.
The late Bruce Hamilton, executive director of the Harness Breeders of New
York, was the driving force behind the effort to get VLTs at New York racetracks
and there should be a statue of him outside of every facility. He was
indefatigable.
Now, Saratoga Raceway is pushing hard for the table games to complete the
transition from a “racino” to a “casino.” The problem is that table games
attract an entirely different clientele. Horseplayers love to play cards and
various games of skill. From the 80/20 female-to-male ratio that exists now, it
will change to about 50/50 and the increase in males will be ones that also like
to play horses.
In the state-wide voter referendum in November, the voters of Saratoga County
voted 57 percent to 43 percent against legalizing casinos anywhere in New York.
So there is no real groundswell for support to have it here.
But the way the referendum worked, there is no follow-up referendum where a
community gets to vote on a specific site. Still, 57 to 43 is considered a
landslide. Any elected official with 57 percent of the vote immediately says the
voters have spoken and have given he/she a mandate. Well, the mandate up here
was a big, fat NO! And this was a legitimate vote since there were no organized
groups for or against it.
The process to decide where the casino eventually goes has begun. A committee
that is part of the New York Gaming Commission has been selected and they have a
few things to consider.
First is economic activity and business development. This will count towards
65 percent of the scoring and will evaluate capital investment, revenue
generated, jobs, facility quality, fastest to market, financial ability, and
experience in development and operation of a quality gaming facility.
Yes, Saratoga Raceway could get up and running faster than anyone else in the
Albany/Saratoga region since they are the only one currently operating. While
that is important for the first few years, a new facility would provide far more
economic impact in terms of construction and operation.
Second, 20 percent of the scoring will be based on impact on the host
municipality, gaining public support and partnering with existing businesses to
avoid another Atlantic City situation where the casinos damaged the local
businesses.
Third, 15 percent of the scoring will be based on workforce development,
addressing problem gambling, utilizing environmentally friendly construction or
renovation practices, and creating a diverse workforce.
Ironically, the casino legislation was named the Upstate NY Gaming Economic
Development Act. Outside of New York City, there is no county doing better
economically than Saratoga and part of that is due to the hundreds of millions
of dollars that New York State has provided to help build the computer chip
fabrication plant in Malta, which now employs thousands.
The impact of the host municipality and community will be the key factor and
here is where the impact on Saratoga Race Course will be paramount. There are
two main groups on each side of the issue.
Against the casino, mostly because of quality of life issues and the impact
on downtown businesses, is a group called S.A.V.E., which stands for Saratogians
Against Vegas-style Expansion. You can read about them at
www.savesaratoga.org.
In favor of the casino is a group sponsored by Saratoga Raceway called
Destination Saratoga. You can read about them at
www.destinationsaratoga.com.
Destination Saratoga uses the image of a Thoroughbred horse on its logo and I
find that disingenuous since it makes it seem that supporting them will help the
Thoroughbreds. I say it will not but there is an argument that a destination
casino will attract more people to the area and help all businesses.
Where there has not been enough pushback is how a casino next door will
affect Saratoga Race Course, which is the economic anchor for the area and the
real destination. Because of the Thoroughbred track, we have year-round,
world-class food and health care because of thoroughbred horse racing at
Saratoga Race Course.
Can anyone say that a full-blown casino will not hurt business at Saratoga
Race Course?
Can anyone say that it is worth taking the chance?
What is the plan if it turns out to be damaging to Saratoga Race Course?
Some will say that the history of Saratoga is all about casinos and they are
right. The only reason we have any racing here is that the casino patrons needed
an afternoon diversion since the casinos did not open until 7 p.m. So without
casinos, there wouldn’t even be the world-class horse racing we have.
But one historical fact that many seem to ignore is that the explosive growth
of Saratoga Race Course happened after the casinos left town. Today, hundreds of
thousands of people visit Saratoga Springs each summer and the main draw is
Saratoga Race Course. Mention Saratoga anywhere in the world and the image
conjured is one of Thoroughbred horse racing.
Is anything worth the risk of damaging the real economic engine of the
region? I just can’t see it. Even if I am wrong and there is no real negative
impact on Saratoga Race Course, can anyone say with any impartial authority that
it was worth taking the risk? And who is to say that what a casino looks like
now won’t develop into something more insidious? Can you say on-line gaming and
sports wagering?
The sitting committee for the four casinos will have a hard enough job. But
nowhere will it be harder than deciding whether or not to put one in Saratoga.
They will have to go against public opinion in an area with little need for
economic development and already the beneficiary of over a billion dollars in
state aid over the years.
In my opinion, it is not worth it. There will be a casino in this region but
I just can’t support one in this backyard. Call me what you want; I can take it.
But, what I don’t want to do is sit around years from now and question how
this happened and the crown jewel of American racing was damaged irreparably.