Click for printable version
Click to send to a friend

Thursday, October 25, 2001
Copyright © Las Vegas Review-Journal

Supporters, foes debate N.Y. gambling expansion

Opponents argue measure exploits Sept. 11 attacks

WASHINGTON -- Supporters of a historic gambling expansion in New York state cited the economic fallout from the Sept. 11 terrorist attacks for pushing the measure.

At the same time, opponents called the gambling expansion an unconstitutional exploitation of the tragedy and vowed to challenge the legislation in court.

The proposal calls for six Indian casinos -- three in western New York in a region that includes Niagara Falls and Buffalo and three in the Catskills, about a 90-minute drive north of New York City.

Marcia White, press secretary for Senate Republican Leader Joseph Bruno, said the gambling expansion will help make up for a projected shortfall of $9 billion in the state's budget as a result of the attacks.

"Clearly, this measure never would have passed if not for the attack on Sept. 11," White said.

The casinos are expected to generate $450 million annually in state revenues, White said, and localities would receive a quarter of that share.

The proposal also calls for the addition of video lottery terminals at Aqueduct and other racetracks across the state. White said the terminals are expected to produce about $300 million annually.

Another $200 million in annual revenues is expected from New York's entry into the multistate Powerball lottery under the proposed gambling expansion, White said.

The total projected windfall to the state's coffers: $1 billion annually.

Beyond the revenues, Hansen said the gambling expansion aims to resurrect New York's slumping tourism industry.

"Right across the border from Niagara Falls in Ontario, Canada, is an extremely successful $800 million casino," Hansen said. "We're hoping a casino in Niagara Falls, where the local economy has been struggling for a long time, will keep people here and boost the economy."

Tourism in the Catskills, once a booming resort area, has plummeted, Hansen said. "The establishment of casinos in this area seems to be a good fit," he said.

Lee Karr, a gambling critic who lives in Forestburgh, N.Y., called the gambling proposal tragic.

"I think they are exploiting a tragedy in order to propagate yet another tragedy by expanding gambling," said Karr, a psychologist who is chairman of the New York Coalition Against Legalized Gambling and a member of the National Coalition Against Legalized Gambling.

Karr argued that Sullivan County, where he lives in the Catskills, is already on the economic upswing and does not need legalized gambling.

Rep. Shelley Berkley, D-Nev., a Manhattan native, said she does not think the expansion of gambling in New York would hurt Las Vegas.

"If anything, I think this will take away from Atlantic City's gambling business," Berkley said.

Rep. Jim Gibbons, R-Nev., said he sees the New York gambling expansion proposal as a double-edged sword.

"This could affect the number of people from New York who come to Nevada to gamble. On the other hand, there are 35 congressmen in New York who now are more likely to be on the side of the gaming industry during debates in Congress," Gibbons said.

Sens. Harry Reid, D-Nev., and John Ensign, R-Nev., declined requests for interviews. Reid spokesman Nathan Naylor said Reid does not support gambling outside the state of Nevada. Ensign spokeswoman Traci Scott said he does not object to the New York expansion proposal because gambling is a state issue.