8.10.07Shinnecocks want piece of track action
BY MITCHELL FREEDMAN
mitchell.freedman@newsday.com
Just weeks before Gov. Eliot Spitzer names the group he wants to take over operations of New York's three major racetracks, the Shinnecock Tribal Council has complained that the Mohegan Tribe -- based in Connecticut -- is being considered to run proposed video lottery terminals at Belmont Park and Aqueduct.
That, the Council says, would unfairly allow an out-of-state tribe to run a gambling operation on Long Island while the Shinnecocks continue their legal struggle for approval to run a casino on the East End.
"What happens 10 years from now if we're still in court and gaming facilities are springing up in the New York metropolitan area? What happens to us?" asked Tribal Trustee Chairman Randy King.
Trustee Frederick Bess said the potential market for casino gaming is limited on Long Island. "The window of gaming opportunities is, I believe, closing. It makes sense for New York businesses to be done with New York tribes."
The tribe has not filed a formal proposal with the state to operate gaming at the tracks, declined to discuss whether it has any financial backing to do so and has no experience in gaming operations.
In New York State, casinos can only be on Indian lands. But video lottery terminals -- which can look like slot machines but are run by computer chips -- can be installed anywhere with state approval.
That, a spokesman for Gov. Spitzer said, means that proposals to install VLTs to bring in bigger crowds and additional revenue at Belmont, Aqueduct and Saratoga do not require an Indian tribal sponsor.
It's an important distinction, because the state hopes that installing thousands of the machines -- along with restaurants, nightclubs and, possibly, a hotel or two -- will rejuvenate the three tracks.
That's what David Matos hopes, too. He took over the Talk of the Town Deli across the street from 430-acre Belmont Park in Elmont 24 years ago. "I think gambling will help racing and will help the neighborhood," he said. "I hope for something big, and I hope it comes through."
Capital Play Inc., an Australian firm seeking to take over the tracks' management, has asked the Mohegan Tribal Gaming Authority to handle the VLT part of the operation because of its experience with the machines all over the country.
Capitol Play has offered the state three options to take over the track, the largest of which would cost the firm $1.8 billion. It calls for $50 million a year for 20 years in lease payments to the state, plus $700 million in track and facility improvements. Two options call for VLTs at all three tracks, while the third would place them only at Aqueduct and Saratoga.
The other bidders seeking to operate the tracks are:
Empire Racing, a Saratoga Springs group that includes the Churchill Downs track in Kentucky and Magna Entertainment.
Excelsior Racing Associates, which includes casino operator Steve Wynn and real estate developers Steven Roth and Richard Bronson.
The New York Racing Association, the current operator of the tracks, which is in Chapter 11 bankruptcy reorganization proceedings.
Empire revised its proposal Tuesday and said it could team with its competitors to form a board, which would include representatives of state government, local communities, the racing industry and OTB.
Earlier this year, it appeared the NYRA would continue operating the tracks and install VLTs at Aqueduct, but that plan fell apart when MGM Mirage -- which was to have financed the work -- dropped out as a partner.
There also have been proposals to close Aqueduct and sell some or all of the 192-acre property, or to have one firm operate the three tracks and another firm run the VLT operation.
The four companies recently were asked to re-submit proposals, or to propose a joint operating venture. The new submissions are being reviewed by Richard Rifkin, special counsel to the governor. Spitzer plans to announce his decision on which group to negotiate with by Sept. 5. Spitzer's choice will have to be approved by the state legislature.
A spokesman for the governor's office said it expects the transition to new management will take place smoothly, and that the change should not affect the racing season, which begins in November.
Tommy Lee, who owns the Belmont Diner near the track, said there are a lot of empty stores along Hempstead Turnpike, and that things seem to get a little worse each year. He, too, wants to see VLTs and a revamped racetrack.
"It would be good for the neighborhood. It would attract more people, which means more business," Lee said. "Business is slow. The economy is down. Anything that would bring businesses up would help."
Staff writer Timothy Robertson contributed to this story.
BY MITCHELL FREEDMAN
mitchell.freedman@newsday.com
Just weeks before Gov. Eliot Spitzer names the group he wants to take over operations of New York's three major racetracks, the Shinnecock Tribal Council has complained that the Mohegan Tribe -- based in Connecticut -- is being considered to run proposed video lottery terminals at Belmont Park and Aqueduct.
That, the Council says, would unfairly allow an out-of-state tribe to run a gambling operation on Long Island while the Shinnecocks continue their legal struggle for approval to run a casino on the East End.
"What happens 10 years from now if we're still in court and gaming facilities are springing up in the New York metropolitan area? What happens to us?" asked Tribal Trustee Chairman Randy King.
Trustee Frederick Bess said the potential market for casino gaming is limited on Long Island. "The window of gaming opportunities is, I believe, closing. It makes sense for New York businesses to be done with New York tribes."
The tribe has not filed a formal proposal with the state to operate gaming at the tracks, declined to discuss whether it has any financial backing to do so and has no experience in gaming operations.
In New York State, casinos can only be on Indian lands. But video lottery terminals -- which can look like slot machines but are run by computer chips -- can be installed anywhere with state approval.
That, a spokesman for Gov. Spitzer said, means that proposals to install VLTs to bring in bigger crowds and additional revenue at Belmont, Aqueduct and Saratoga do not require an Indian tribal sponsor.
It's an important distinction, because the state hopes that installing thousands of the machines -- along with restaurants, nightclubs and, possibly, a hotel or two -- will rejuvenate the three tracks.
That's what David Matos hopes, too. He took over the Talk of the Town Deli across the street from 430-acre Belmont Park in Elmont 24 years ago. "I think gambling will help racing and will help the neighborhood," he said. "I hope for something big, and I hope it comes through."
Capital Play Inc., an Australian firm seeking to take over the tracks' management, has asked the Mohegan Tribal Gaming Authority to handle the VLT part of the operation because of its experience with the machines all over the country.
Capitol Play has offered the state three options to take over the track, the largest of which would cost the firm $1.8 billion. It calls for $50 million a year for 20 years in lease payments to the state, plus $700 million in track and facility improvements. Two options call for VLTs at all three tracks, while the third would place them only at Aqueduct and Saratoga.
The other bidders seeking to operate the tracks are:
Empire Racing, a Saratoga Springs group that includes the Churchill Downs track in Kentucky and Magna Entertainment.
Excelsior Racing Associates, which includes casino operator Steve Wynn and real estate developers Steven Roth and Richard Bronson.
The New York Racing Association, the current operator of the tracks, which is in Chapter 11 bankruptcy reorganization proceedings.
Empire revised its proposal Tuesday and said it could team with its competitors to form a board, which would include representatives of state government, local communities, the racing industry and OTB.
Earlier this year, it appeared the NYRA would continue operating the tracks and install VLTs at Aqueduct, but that plan fell apart when MGM Mirage -- which was to have financed the work -- dropped out as a partner.
There also have been proposals to close Aqueduct and sell some or all of the 192-acre property, or to have one firm operate the three tracks and another firm run the VLT operation.
The four companies recently were asked to re-submit proposals, or to propose a joint operating venture. The new submissions are being reviewed by Richard Rifkin, special counsel to the governor. Spitzer plans to announce his decision on which group to negotiate with by Sept. 5. Spitzer's choice will have to be approved by the state legislature.
A spokesman for the governor's office said it expects the transition to new management will take place smoothly, and that the change should not affect the racing season, which begins in November.
Tommy Lee, who owns the Belmont Diner near the track, said there are a lot of empty stores along Hempstead Turnpike, and that things seem to get a little worse each year. He, too, wants to see VLTs and a revamped racetrack.
"It would be good for the neighborhood. It would attract more people, which means more business," Lee said. "Business is slow. The economy is down. Anything that would bring businesses up would help."
Staff writer Timothy Robertson contributed to this story.
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