Opinion: New York Betting Too Much on Gambling

Suffolk Closeup: Betting on a casino

1.21.2012

By Karl Grossman 

The current issue of New York magazine speaks of Governor Andrew Cuomo seeking “gambling everywhere.” That’s a bit of an exaggeration. In his recent State of the State speech, Mr. Cuomo called for a change in the state constitution to allow for non-Indian, off-reservation casinos in New York, which currently prohibits them. It’s not “gambling everywhere” but the governor does want a major expansion of legalized gambling.

“Cuomo Bets On A Casino” was the headline in Newsday. It referred specifically to Aqueduct Racetrack in Queens as a place where the governor wants to see a big casino.

A casino there would be a problem for the Shinnecock Indian Nation, which wants to build a casino at nearby Belmont Park in Elmont. Newsday quoted State Senator Jack Martins of Mineola as saying a casino at Aqueduct would “effectively kill” plans for a Shinnecock casino at Belmont. A broader concern is whether or not the legalized gambling market is being saturated by casinos opening all over the nation, -Native American and non-Indian.

Mr. Cuomo is betting on a big financial boost for New York State through a major expansion of legalized gambling here but the market has its limits.

The day of Mr. Cuomo’s State of the State speech, the New York Times reported on the “hopes of reviving Atlantic City.” Gambling revenue was down in Atlantic City, the Times reported, and there’s hope that a new $2.4 billion resort and casino, being built with state financial help, will “usher in a new era for Atlantic City.”

“Atlantic City has been in decline since 2006,” the Times reported, “when Pennsylvania opened its first casino, beginning a slow bleed of gamblers that have never returned. With rival casinos opening in Connecticut, Delaware, Maryland and upstate New York, there is little Atlantic City can do to stop the loss …”

This spread of gambling has not only hurt Atlantic City but Las Vegas, too, and severely. Factor in the impact of the recession on gambling and it would seem the industry is in trouble. So how can New York State figure on a big win?

But that’s the dream -or illusion-, not only in New York but other areas of the nation. A Times story last month reported on the Florida Legislature considering three “Las Vegas-style casino resorts” in south Florida to offset the economic downturn following the burst of Florida’s big real estate bubble.

Meanwhile, what about gambling as a way for Indian tribes to break out of centuries of economic hard times? That was the basis of the Indian Gaming Regulatory Act of 1988, the federal law that set up a system under which Native Americans were given the go-ahead -and structure- to develop gambling.

It was a kind of long-delayed reparation for Native Americans for the loss of their homeland and culture and it has made some tribes-, including several in Connecticut-, super-wealthy.

These days, if you take a drive on the stretch of New Mexico between Albuquerque and Santa Fe, you’ll come upon a gambling casino every few miles, in front of each Indian pueblo, with few cars in their parking lots. And in recent years, with non-Indians being allowed to get into gambling elsewhere, it’s not just intra-Indian competition that’s diluting the market.

Although legalized gambling had to come, it’s a problematic activity for society. There are the high-rollers at casinos in Las Vegas and Atlantic City and Connecticut. My impression of the bulk of bettors, however, is that they are desperate people who mostly play the one-armed bandits, dumping in their quarters, hoping for a bonanza.

For society to benefit by drawing money from legalized gambling- as it cannot from illegal gambling- is one thing. But to promote it, subsidize it and depend on it is another.

Then there’s the over-expansion, and the consequent cost to Native Americans including the Shinnecocks, who have had it tough economically for centuries and only recently achieved federal tribal recognition. They had been hoping for some payback, finally. Now the house may be rigging the game against them.

Shinnecock casino plans up in the air following Gov. Cuomo's speech; Local support wavering

After guv's speech, tribe eyes next move

1.05.2012

Leaders of the Shinnecock Indian Nation huddled Thursday to consider their next steps after Gov. Andrew M. Cuomo announced a $4 billion plan to build a convention center at Aqueduct Racetrack, a move that threatens the tribe's planned casino at Belmont Park.

Randy King, chairman of the Shinnecock trustees, said the tribe's gaming authority was meeting with tribal trustees on the Southampton reservation to consider the implications of Cuomo's State of the State message, in which he touted the convention center as well as his plan to amend the constitution to legalize non-Indian gaming in the state. Genting New York, a Malaysian company that operates a racino at Aqueduct, wants to have a full casino there.

"What everyone needs to realize is that we made a commitment to local, state and federal officials to move to Belmont" in lieu of a plan to open a casino on tribal land in the Hamptons, King said.

Meanwhile, support for the tribe's Elmont plan, first heralded as an "ideal location" last May by Nassau County Executive Edward Mangano, was wavering. "I'd pretty much say a casino is dead at Belmont," said Joe Rizza, a spokesman for state Sen. Jack Martins (R-Mineola), who has been a vocal supporter of the tribe's plans.

One Suffolk County legislator Thursday urged the tribe to instead turn its attention to that county, and tribal leaders made plans to meet with newly installed Suffolk Executive Steve Bellone.

"We certainly want to see the tribe succeed, and we can use more economic development in Suffolk County," said Jon Schneider, deputy county executive for intergovernmental affairs.

Scott Reif, a spokesman for Senate Majority Leader Dean Skelos (R-Rockville Centre), declined to discuss the Belmont casino, which the majority leader previously supported, but said Skelos "will continue to do everything he can to achieve the best possible plan for developing Belmont, so we can create good jobs and help the surrounding communities."

Mangano was noncommital Thursday. "The county executive has made arrangements with the governor to better understand his plan and its effect on Belmont," Mangano spokesman Brian Nevin said.

The tribe also appeared to be facing a prospective opponent in Hempstead Supervisor Kate Murray, who had appeared onstage with Mangano when Belmont was announced.

In a publicly released letter to a Floral Park resident dated Dec. 29, Murray said she had "profound concerns" with Nassau's "stated intention" for a Belmont casino.

Her spokesman, Michael Deery, said, "If you are asking whether the supervisor supports [a casino] . . . that faces the doors of Floral Park High School, the answer would be no, she doesn't support that."He said any such plan "has to have the support of all the communities that surround the park, and that would include Floral Park."

But King isn't giving up on Belmont. "We hope the governor takes the same leadership position he has taken with the commercialized gaming community and sits down with the Shinnecock Nation to finally resolve the gaming vision we have," he said.

Suffolk Legis. Wayne Horsley (D-Babylon), who heads a Suffolk task force on gaming, urged the tribe to move ahead quickly with a project in Suffolk. "Suffolk is the Shinnecocks' opportunity," he said.

The tribe recently voted to reject gaming contracts with its financial backer Gateway Casino Resorts. It must finalize those, or find a new developer, before it works out a state gaming compact with Cuomo."I'm confident we can work through those issues with Gateway," King said.

Gov. Cuomo's plan could "effectively kill" Gateway's vision for Belmont Racetrack casino

Cuomo plan threatens Belmont casino

1.04.2012

by TED PHILLIPS

Gov. Andrew M. Cuomo's plan to build the nation's largest convention center and possibly a casino at Aqueduct Racetrack would "effectively kill" plans for a Shinnecock Indian casino at Belmont Park, a Long Island state senator said Wednesday.

Cuomo's emphasis on Aqueduct, in nearby Ozone Park, Queens, "would make it less likely that a casino would be viable at Belmont, but certainly opens up all kinds of possibilities for redevelopment," said Sen. Jack Martins (R-Mineola), who has pushed for a casino or other development at Belmont...

Randy King, chairman of the Shinnecock tribal trustees, said the tribe "hopes and expects" that Cuomo's gaming plans include Indian casinos, including those the tribe hopes to build at Belmont and in Yaphank.

King said casinos at Belmont Park, in Elmont, and Aqueduct could benefit each other. "The synergies can play off each other and work, so that there's room for more than one casino," King said. "As the governor is moving to the next level in his plan for the state, we're more than ready to move to the next level ourselves..." (Complete Story)

Shinnecocks or not: New York, NYRA Would be Wise to Include Neighbors in Planning for Future of Belmont Park

Mayor Thomas J. Tweedy
Floral Park, New York

MAYOR'S MESSAGE
9.15.2011

Mayor’s Message Village of Floral Park: September 15, 2011

We continue to again discuss our 2007 Belmont Task Force Statement of Principles. These principles are based on fairness and equity.  Recent press releases regarding NYRA’s Saratoga Race Course and that NYRA property’s development makes our seventh principle, being a good neighbor to your neighbors more timely than ever before. 

Be a Good Neighbor to Your Neighbors

VII. The neighboring communities that have existed in peaceful co-existence with these facilities for decades should have their right to the quiet enjoyment of their neighborhoods respected and continued to be maintained.  Those areas that are natural park-like settings must continue to be maintained.  There must be a comprehensive facilities management plan addressing both modernization and preservation plans and must include design guidelines, based upon generally acceptable community standards, to be used in the development of individual capital and maintenance projects.  Any proposed material change in the nature or time of operations at the facilities must be fully disclosed and reviewed with the neighboring communities prior to such a change.

Belmont Park and its surrounding communities have peacefully coexisted as neighbors for many years. Floral Park residents from Poppy Place to Plainfield Avenue, and all the streets in between, share the longest uninterrupted residential border with Belmont Park. Many Floral Park residents‘ homes are just a short distance from the active areas of Belmont Park. Such as the various tracks and service roads used throughout the year, as well as the parking fields, which recently have been allowed to become a makeshift tractor trailer feed station and a dumpster storage repository next to our school children’s play yard behind the Floral Park-Bellerose School.  While most of Elmont’s border with Belmont Park is buffered by up to six lanes plus sidewalks and turning lanes on Hempstead Turnpike or are next to an occasionally used parking area, many Floral Park residents can literally hear the galloping of horses and the vocal calls of the jockeys every morning on the practice tracks or on the main track during race days.  Therefore maintaining a sufficient buffer zone near neighboring homes and schools is something the State of New York cannot delegate to someone else, be it the current tenant NYRA, or even the proposed Shinnecock casino operations.  Whether it is an attractive natural buffer or a series of football, baseball or even soccer fields, a sufficient buffer zone needs to be incorporated in any planned changes at Belmont Park.

Ironically, just this month in Saratoga, NYRA announced a menu of 21 potential capital improvement projects for its Saratoga Race Course “designed to secure the historic nature of the race track while enhancing the facilities and overall fan experience” according to NYRA’s Sept. 1 press release. {See: http://www.nyra.com/saratoga/stories/Sep012011b.shtml#}. NYRA notes that the various Saratoga projects “will be open for public comment and feedback from the community in order to assess priority and implementation” over the next 5 to 10 years. NYRA President and CEO Charles Haywood has stated that “NYRA is deeply committed to preserving the historic fabric of Saratoga Race Course while implementing a capital improvement strategy that will allow Saratoga to grow and flourish for years to come.” The funding for the capital improvement projects will come from NYRA’s 4 percent share of revenues from the 4500 VLT machines and 500 electronic gaming tables being installed at Aqueduct Racetrack, which is estimated will provide NYRA about $27.6 million annually, which is more than Floral Park’s entire annual budget this year!  Imagine if gambling at Belmont Park could provide Floral Park’s taxpayers with a comparable amount of what NYRA and its thoroughbred horse owners are already in line to get from VLT machines at Aqueduct!

Why Belmont Park, which is home to NYRA’s jewel of the Triple Crown, is getting distant third place treatment after Saratoga or even Aqueduct is outrageous!  While NYRA is willing to solicit community feedback on its ambitious plans at Saratoga while NYRA and the State of New York all but ignore its Belmont Park neighbors is unbelievable! Floral Park has put its cards on the table with its Statements of Principles since 2007, it seems that NYRA and the State of New York pay more attention to those in Saratoga or even the Shinnecock reservation in Southampton than they do about Belmont Park’s neighbors right here in western Nassau County. NYRA’s announcement seeking public comment and feedback to determine the next steps in Saratoga should be a blueprint to do the same at Belmont Park, with or without the involvement of the Shinnecock Indian Nation!  The first thing that must change at Belmont Park, however, is the need for those in Albany to warmly bring Belmont Park’s neighbors with them into the winner’s circle instead of leaving them out in the cold back in the starting gate.

Blogger's NOTE: The Shinnecock Indians propose to build and operate a hotel, casino and new train station at Belmont Park & Race Track on Long Island and various other locations on Long Island (NY). Gateway Casino Resorts, an entity organized by Detroiters Michael J. Malik, Sr., and Mrs. Marian Ilitch, has been out front bankrolling the Tribe's various failed casino development proposals for nearly decade and are behind this latest scheme.

Shinnecock Face New Casino Hurdles; Tribal Leader won't say if Gateway Casino Resorts (Mike Malik / Marian Ilitch) would lobby in Albany on its behalf

Tribe's Latest Hurdle To Casino: Legalized Gambling Proposal

9.14.2011

By Michael Wright

The Shinnecock Indian Nation’s effort to secure permission to operate a potentially lucrative casino has cleared a number of mountainous hurdles. But it has several more to clear before its initial proposal—for a casino at the Belmont Park horse racetrack in Nassau County—can become reality.

The latest threat to the casino effort, or to its economic potential, might come from an unusual quadrant: those who want to see gaming more widely legalized.

A number of state officials, primarily legislators and state senators from economically struggling resort areas in the Catskills region, have suggested that New York should legalize gambling in portions of the state, like New Jersey did for Atlantic City in 1976. That could allow private interests beyond Native American tribes to build and operate casinos…

...Shinnecock Tribal Trustees Chairman Randy King said that the tribe has not discussed internally the potential of non-Indian gaming interfering with their plans at Belmont and elsewhere. He said other tribes from upstate have opposed the consideration of non-Indian gaming, on the basis that it would violate the contracts they signed with the state to operate their casinos.

His own tribe’s efforts are focused on garnering support for their own casino and on securing the funding from the Bureau of Indian Affairs for various infrastructure projects that it is entitled to as a federally recognized tribe.

Mr. King compared the Shinnecocks and other Native American tribes as being in a “David-and-Goliath”-type struggle with giant gaming entities like Genting, whose money earns them easy access to lawmakers’ offices. He said the tribe and its representatives have still not gotten to sit down with the governor to discuss the future of a Shinnecock gaming facility.

“Our main focus is getting to the governor’s table, which I would hope is imminent,” the tribal chairman said. “A little media fluff about this doesn’t ruffle my feathers. My priority is getting to the governor’s office, and getting the potholes in our roads fixed.”

Mr. King would not say whether representatives of the tribe’s partners, Gateway Casinos, have been or would be lobbying against any consideration of legalized non-Indian gaming. Gateway and its principals, Michael Malick and Marian Ilitch, have been among the most active proponents of legalized gaming throughout the country, spending millions on pro-gaming lobbying in Hawaii and California and elsewhere. But Gateway has also invested millions in payments to the Shinnecocks for legal fees and tribal business over the last several years in exchange for the right to develop a future, or casinos, and take a cut of the profits...

Read Full Story

See also:

• Ilitch affiliate retains former U.S. Senator Alfonse D'Amato's lobbying firm to push New York Casino plans for Shinnecock
• Shinnecock and Ilitch affiliate Gateway Casino Resorts paid $1.5 million to New York Lobbyists
• D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans

Shinnecock tribe taking 1st step for L.I. casino | Crain's New York Business

Shinnecock tribe taking 1st step for L.I. casino | Crain's New York Business

4.27.2011

The Shinnecock Indian Nation in Southampton, L.I., is expected to sign a memorandum of understanding by the end of this week, the first step in what will be a very long process of creating a casino on the island, according to sources. The new casino would someday compete against the highly anticipated racino scheduled to open at Aqueduct Racetrack in Ozone Park, Queens, this summer.

The agreement is expected to be with Nassau County, where the tribe has been eyeing Nassau Coliseum as a potential gaming site. Reports published on Wednesday indicate that the tribe is also in discussions with Suffolk County officials about building their gaming facility on a parcel of land in Yaphak. News of the pending memorandum of understanding was first reported by the The New York Post, earlier this month.

A spokeswoman for the tribe declined to comment, while a spokeswoman for Nassau County Executive Edward Mangano declined to comment...

Some Experts Believe New York Casino Market is Saturated; Shinnecock Casino at Belmont Would only Create Problems

In Casinos, New York Faces Uncertain Returns

1.29.2010

By Charles V. Bagli

Gov. David A. Paterson announced Friday that he had selected a casino operator for the Aqueduct racetrack in Queens. It would be the ninth racetrack casino to open in the state since 2001.

The Shinnecock tribe on Long Island, meanwhile, expects to get federal recognition later this year, and it wants to promptly build a casino, possibly at the Belmont Park racetrack just a few miles from Aqueduct.

Existing Gambling Halls - Jan 2010

And there is yet another push by Senator Charles E. Schumer, Governor Paterson and elected officials in the Catskills to allow Indian tribes to build two Las Vegas-style casinos in Monticello, 90 miles northwest of Manhattan.

But for all those wishing to further exploit gambling revenues — from the state’s chief executive to casino operators themselves — there are sobering realities: falling revenues at any number of the New York area’s gambling sites, the effects of a deep recession and the threat of what amounts to market saturation.

At the Monticello racetrack casino in the Catskills, for instance, gambling revenues (after prizes) fell by more than 9 percent in the first three quarters of the current fiscal year. And gambling revenues at the Seneca tribe’s three full-scale casinos in the Buffalo-Niagara Falls area dropped 7.2 percent last year, prompting the tribe to shut down the expansion projects at its once booming resorts.

In Connecticut, where two massive Indian casinos have long attracted New Yorkers, as well as in Las Vegas and Atlantic City, there have also been substantial declines in profits and revenues.

“It’s probably wise to err on the conservative side when projecting revenues from gambling,” said Robert B. Ward, deputy director of the Rockefeller Institute and co-author of a national study on the drop in gambling revenues.

New York’s embrace of gambling, to be sure, has had its upsides in recent years, and the combined revenue from the state’s eight racetrack casinos is still on the rise. But the outfits that run those casinos won the right to take a larger percentage of total revenues and have been sending less money to the state’s dedicated education fund — down by nearly 10 percent in 2009.

Morgan Hook, a spokesman for Mr. Paterson, said, “Moving forward with a gaming facility at the Aqueduct racetrack will not only bring real jobs to the metropolitan New York City region, but will spark economic development in surrounding neighborhoods, send sorely needed dollars to public schools and stimulate the important agriculture and racing industries upstate.”

A new casino at Aqueduct, with 4,500 electronic slot machines but no table games, would sit in a densely populated part of Queens, something the developers competing to operate it find attractive.

Analysts say that Aqueduct could generate more than $1 million a day in revenues for the state.

On Friday, Governor Paterson said he had selected the Aqueduct Entertainment Group from five bidders to run the casino. The move played well with State Senate leaders and with Queens leaders, including the Rev. Floyd Flake, who is a member of the A.E.G. consortium.

But the long awaited decision could still run into trouble from rival bidders, including Penn National, which said it was “shocked and dismayed” by the governor’s decision because it had submitted the highest offer for an upfront payment, $300 million.

Assembly Speaker Sheldon Silver said he had agreed to the governor’s choice providing that A.E.G. met a series of conditions, which includes raising its upfront bid to $300 million.

Jeffrey E. Levine, a Queens developer who is part of the A.E.G. consortium, said the group had agreed to all the conditions. State officials said they expected to complete an agreement in 30 days with A.E.G., which plans to open the casino within six months.

“I’m thrilled to bring these jobs and this financial windfall to our borough, our city and our state in these desperate times,” Mr. Levine said.

“We are ready to hit the ground running.”

But some analysts say an Aqueduct casino may wind up stealing customers from the Empire City Casino at Yonkers Raceway, the state’s best performing slots hall.

The Aqueduct casino, in turn, would come under siege if the Shinnecock tribe builds a casino at nearby Belmont, or on its reservation in Southampton...  Read Complete Story

See original story and additional graphics at NYTimes.com 

Industry experts not optimistic about Ilitch Shinnecock plans for New York Casino

6.30.09

Tribe told not to expect quick results on gaming

By Michael Wright

The East Hampton Press

A settlement of a key portion of a legal battle between the Shinnecock Indian Nation and the U.S. Bureau of Indian Affairs fed widespread media speculation that the Shinnecocks and their Detroit-based financial backers [Marian Ilitch and Michael J. Malik, Sr.] are now on a fast track to opening a gaming facility in New York City or on Long Island.

But even though a court-ordered ruling on the tribe’s federal recognition application—the key step to gaming rights—is due by December, and the tribe could get the federal go-ahead by mid-2010, many in the New York gaming industry say the hurdles Shinnecocks face are numerous, and significant.

At a gaming industry conference in Saratoga Springs last week, a host of industry veterans and even members of other Native American tribes from around the state said—often with wry smiles—that they’re not holding their breath for a Shinnecock casino to open. Nonetheless, the tribe and its prospects for a casino on Long Island, or in the shadow of New York City, were a popular topic of conversation.

The Shinnecocks’ casino bid and the speculation that the court settlement spawned were a main focus of the keynote speech given by John D. Sabini, chairman of the New York State Racing and Wagering Board at the two-day New York Gaming Summit. He said that gaming prospects have seemed imminent in the past and ended up languishing for decades.

“I don’t think it’s a slam-dunk that they even get federal recognition from the Bureau of Indian Affairs and Department of the Interior,” Mr. Sabini said of the Shinnecocks in his keynote speech. “There are no sure things in gaming. This involves a lot of moving parts at the federal level.”

In an interview, Mr. Sabini noted that earning federal recognition is just the first step in a complicated battle for the tribe to get rights to a casino operation. He nodded to the cautionary tales told by the leaders of three other Native American tribes—the Seneca, Oneida and St. Regis Mohawks—all of whom have had federal recognition for 
years, even decades, and are still fighting to get approval for casinos that they thought would be open for business years ago.

“Some newspapers said [the court settlement] would mean they have the inside track for Belmont. There’s so much between here and there,” Mr. Sabini said, of a report that the tribe had expressed interest in a gaming facility adjacent to the Nassau County horse racing venue. “[State Assembly Speaker Sheldon] Silver has been clear—he doesn’t want gaming there.”

The State Legislature has already approved gaming through the use of up to 4,500 video lottery machines, or VLTs, at the Aqueduct racetrack in Queens. State representatives of the areas surrounding Belmont Racetrack have also introduced proposals to allow gaming—a potential tax revenue bounty—in their backyard as well. But Mr. Silver, who represents Lower Manhattan in the State Assembly, has sworn he will never support gaming at the Belmont property.

In 2007, shortly after the state opened bidding on the Aqueduct gaming contract, the tribe proposed a $1.4 billion casino and hotel adjacent to the Queens racetrack. But at last week’s state gaming conference, Bill Murray, the deputy director of the New York Lottery, which will license any future gaming operations at the racetrack, said that the state is close to deciding on one of the seven official bidders for gaming there. The Shinnecocks are not on the list of bidders—though the development company Delaware North, which sponsored the gaming conference, is. Mr. Murray said the decision on the contract will be made in a matter of weeks, effectively eliminating the Shinnecocks, since the tribe will not receive federal recognition until 2010 at the earliest.

Shinnecock Indian Nation Tribal Trustee Fred Bess turned a bit of the naysayers’ own warnings back on them, though, with regard to the Aqueduct proposal.

“Things take a long time to happen,” he said when asked if Aqueduct was off the tribe’s radar because of the timeline Mr. Murray suggested. “Once we take care of our federal recognition application, we’ll see where things stand.”

This is the first part of a three-part series on the Shinnecock Indian Nation and its possible future in the gaming industry.

Is Marian Ilitch behind plans to develop Indian casino at New York's Belmont Park Race Track?

Detroit's Marian Ilitch and her casino and real estate partner Michael J. Malik, Sr., formed the casino syndicate Gateway Casino Resorts in 2003 to pursue Indian gaming ventures with the Shinnecock Indian Nation of New York. The tribe is not yet federally recognized by the U.S. Department of Interior, Bureau of Indian Affairs, but has a reservation in Southampton, NY.

Ilitch and affiliates are reportedly paying the Shinnecock's legal and lobbying bills and if the tribe wins federal recognition, Ilitch and affiliates would have the exclusive right to develop and manage any casino resort the tribe would develop and operate. According to Opensecrets.org, they have spent more than $1.6 million alone in federal lobbying activities.

Initially Ilitch and partners sought to develop a 65,000 square foot casino project in Hampton Bays part of Long Island's posh Hamptons resort area -- 4.3 miles from the tribe's offices and 85 miles from New York's Times Square. The tribe owns property known as "The Westwoods" north of Newtown Rd. and broke ground on that project in 2003. That project has subsequently met with much resistance and is stalled.

In 2007, Ilitch and her partners, made a bid that would have allowed Gateway and the Shinnecock to develop a casino resort project on the grounds of the Aqueduct Race Track in Queens, NY -- approximately 14 miles from Times Square. That casino would have been 495,000 square foot -- 7.5 times the size of the original casino proposed for the Hamptons and 4.5 times larger than Ilitch's MotorCity Casino in Detroit.

Now the Shinnecock tribe, which has had its desire for federal recognition fast-tracked thanks to funding and support from Ilitch and affiliates, is bidding to develop and operate a casino project at Belmont Park Race Track -- approximately 19 miles from New York's Times Square. Presumably Ilitch's affiliates are part of this latest Shinnecock casino scheme.

Marian Ilitch and her husband Mike Ilitch own the Detroit Red Wings NHL franchise and c0-founded Little Caesars pizza stores. He also owns the Detroit Tigers and she owns the struggling MotorCity Casino, one of three large Las Vegas-style casino properties in Detroit. Their parent company is the privately held Ilitch Holdings, Inc.

Google Map of various casino sites
as proposed by Shinnecock/Gateway

View Various Proposed Shinnecock Casino Sites in a larger map

Shinnecock Indians eye casino at Belmont Park racetrack

6.04.09

Indian tribe eyes Belmont Park for casino

By FRANK ELTMAN

NEW YORK (AP) — You can't bet on the biggest longshot at Belmont Park — not yet, anyway.

The finish line is still far off, but for a tiny Indian tribe eking out a living in the heart of one the world's richest communities, Long Island's famed racetrack could be the place where their fortunes change.

As the thoroughbred racing world turns its attention to Saturday's 141st Belmont Stakes, members of the Shinnecock Indian tribe have said in recent days they are willing to consider Belmont Park as the location for the casino they want to open.

The track is located just outside New York City, meaning millions in the metropolitan area could satisfy a gambling yen without a trip to Atlantic City or to Indian-run casinos in Connecticut, both at least 90 minutes away. But there are many hurdles to leap before the roulette wheels start spinning.

The Shinnecock, whose earlier plans for a casino in Southampton sent shudders through their wealthy neighbors in 2003, reached an agreement with the U.S. Department of Interior last week that speeds up the process for the tribe to receive formal recognition by the Bureau of Indian Affairs — necessary before any tribe can even consider opening a gambling facility. Tribal representatives were in Washington on Wednesday, where they were expected to make their case for federal recognition, which the tribe has been seeking since 1978.

"As Indian people, even though we've maintained who we are for generations, and surrounded by some of the wealthiest communities in the country, perhaps this recognition will help some of our neighbors better understand us and foster a new mutual respect," said Shinnecock trustee Randy King.

"We have long prided ourselves on the good relationship we have had with the state of New York and the local community around our reservation," Shinnecock trustee Gordell Wright said. "We fully intend to remain good neighbors as we pursue opportunities to provide jobs for our people."

Interior Department officials are reviewing ancestral records and other historical documents of the tribe before determining whether the Shinnecocks meet the recognition criteria, said BIA spokeswoman Nedra Darling. The tribe had sought to circumvent the federal approval process by seeking recognition in federal court, but a judge rejected that effort in 2007.

Even with federal recognition, the tribe would have to have other federal and state approvals. A preliminary decision on recognition is expected by Dec. 15, and final approval could come sometime next year. In addition to being able to operate a casino, the Shinnecock would be eligible for federal grants and other funding.

The Mashantucket Pequot Tribe, which runs one of two of Connecticut's lucrative casinos — Foxwoods — said it wished the Shinnecock well in its bid for federal recognition, but spokeswoman Lori A. Potter declined comment on whether it supports a possible Shinnecock casino.

"The people in the surrounding communities have indicated support," said Nassau County Executive Tom Suozzi; the track, about 70 miles from the Shinnecock reservation in Southampton, is in his county.

"This could be a home run. Belmont is the ideal location both for the operators of a casino, the residents and the local governments. If it is going to be in the region, I'd rather see it at Belmont," Suozzi added.

Tribal leaders are keeping their intentions close to the vest, saying only that they are willing to negotiate with state leaders on a location for any casino. "Anything between Suffolk (on eastern Long Island) and the Catskills could be an appropriate site," said Shinnecock trustee Fred Bess.

Added King: "We're even willing to consider locations not currently on the table."

But Belmont seems to be getting much of the attention from politicians handicapping the possibilities. State and local officials have been discussing improvements at Belmont and its surrounding community for the past several years. There has been talk of building hotels and restaurants, but few concrete proposals have come to fruition.

Suozzi, a possible contender for statewide office in 2010, said he would want to ensure school districts and local governments benefit from the income a casino would bring, and said many other questions remained before he would give his full endorsement. "We'd like to see enhancements to the local community as part of any agreement," he said.

About 500 Shinnecock tribal members now live in modest homes on a 1,200-acre reservation in Southampton. Nearby, some of the richest people in the world, including Wall Street power brokers and Hollywood celebrities, have sprawling estates worth tens of millions.

As a seaside tribe, the Shinnecocks for decades depended on fishing and whaling to support themselves. Later, the nation leased its land to local area farmers for their crops, mainly potatoes and corn.

Many of those still on the reservation work as craftspeople and artists. Others work in a variety of mainstream jobs around Long Island. They see the prospects of a casino, and the millions it could bring, as a way out of their modest circumstances.

An earlier tribal proposal to open a casino near their Southampton property ignited a stir, with some officials claiming the bucolic beauty of Long Island's east end would be adversely impacted by the influx of thousands of gamblers — not just in the summer when the Hamptons' population surges, but year-round.

A casino at Belmont, where there are major highways nearby, as well as a Long Island Rail Road station, would ease those concerns.

When the Shinnecocks broke ground in 2003 on their proposed Southampton casino, town officials raced into federal court and got an injunction to stop it. Since then, Suffolk County officials formed a task force to study the issue; County Executive Steve Levy said he is waiting for the results of that study before taking a position.

Outside the Elmont Public Library on Wednesday, residents had differing views of a Belmont casino's impact on the community.

"The biggest factor that bothers me is the excess traffic," said Giovanni Soto. "I'm not concerned with regards to crime and stuff. I've been to other casinos and it seems in general that hasn't been a problem."

Zahid Chaudry said he wanted no part of a casino. "It's just going to be a hangout for the wrong crowd," he said. "The crowd that just wants to make fast money easily. They're not working for it and that's not the type of people the hard-working people of Elmont want."

Jean Charles agreed that a casino at Belmont "is a longshot." But he said he would welcome it if it happened. "I think we're grown up enough to handle a casino. It would bring in good money."

A spokesman for a Democratic state senator in the area called the Belmont idea "an intriguing and exciting possibility." Republican state Sen. Dean Skelos's spokesman said more information is needed, but he "would be open" to an Indian-run casino at Belmont.

The Shinnecocks have also expressed interest in nearby Aqueduct racetrack, and said it is still a possibility.

New York Gov. David Paterson's administration is reviewing bids now for by several consortiums that want to run a video slot machine center at Aqueduct, about five minutes' ride from Belmont. The state was counting on about $250 million in annual revenue from 4,500 video slot machines and jobs for 1,200 people at the Queens track.

In March, the original bid winner, Buffalo-based Delaware North, said the credit collapse on Wall Street forced it to seek a restructuring of its video slots proposal because it could no longer provide the $370 million in upfront payments to the state.

Alan Meister, an economist with the Los Angeles-based Analysis Group, compiles the annual Indian Gaming Industry Report. He said so-called "racinos" have become popular at racetracks around the country in recent years; one such racino operates at Yonkers Raceway, north of New York City. He said because the Shinnecocks have yet to commit to a location or type of gambling operation, it is difficult to predict success.

"There is a potential to grow the market," Meister conceded.

Meister's report for 2007 — the latest figures available — noted that 230 tribes were operating 425 gaming facilities in 28 states, generating $26.5 billion in gaming revenue, a 5 percent increase over the previous year.

Senator indicates "great deal of opposition" to Shinnecock proposal for Aqueduct

Blogger David M. Quintana at Lost in the Ozone... posts:

State Senator Serphin Maltese clarified that both he and other local elected officials, such as Assemblywoman Audrey Pheffer, are committed to have racing continue at Aqueduct.

The senator briefly commented on recent reports of a Shinnecock Indian group proposing to bring a casino to the Aqueduct site by saying that their offer wasn’t considered to be realistic.

“That’s not expected to happen,” he said. “Quite honestly, there was a great deal of opposition [to that]. Nobody knew what it would do. We were very apprehensive about the fact that other casinos [in] the surrounding areas have deteriorated [because of] their problems with prostitution, homelessness, vagrancy and vandalism.”

Maltese expressed his wish that a casino group in good financial standing step forth to offer their services to run Video Lottery Terminal operations.

Marian Ilitch dumped by tribe after spending $19 million to advance Barstow casino

Marian Ilitch and an associate Michael Malik formed Detroit-based casino syndicator BarWest LLC in 2003. In a letter Malik sent last month to the Los Coyotes Band of Indians, he notes that their casino syndication has spent $19 million trying to advance several casino resort projects for Barstow, California, since 2001.


Now the Los Coyotes Band of Indians, a tribe Ilitch and Malik proposed as their original partner in Barstow, has dumped BarWest, LLC as its partner following BarWest's failure to advance approval of a Gaming Compact for the tribe through the California legislature for the second straight year in a row.

Mrs. Marian Ilitch is the wife of Detroit Tigers owner Mike Ilitch. The Ilitches co-founded Little Caesars Pizza and the family also owns the Detroit Red Wings, Detroit's MotorCity Casino and Fox Theater, and a variety of other entertainment, restaurant and sports-related entities.

Marian Ilitch and Malik have backed a proposed off-reservation casino for the Bay Mills Indian Community in Port Huron, Michigan for more than 15 years; and the pair is behind plans by the Shinnecock Indian Nation to build a casino resort in The Hamptons on Long Island or at the Aquedcut Racetrack in Queens, NY.

Shinnecock and partners have spent $1.72 million on federal lobbying

The Shinnecock Indian Nation and their partners at Gateway Casino Resorts (Marian Ilitch, Michael J. Malik, Sr., and Malik's MJM Enterprises & Development) have spent more than $1.72 million lobbying in Washington D.C. since 2003.

Click charts below for additional detail on each of the three entities at the Center for Responsive Politics' Web site opensecrets.org:

Total $580,000


Total $500,000

Total $640,000

EDITORIAL: NY Times opposes any Shinnecock/Gateway casino

10.21.07

N.Y./Region Opinions
Long Island
The Wrong Track

The odds of the Shinnecock Indian Nation’s building a casino at the Aqueduct Racetrack are long indeed. A tribal casino has to be on tribal land, and the Shinnecocks have no land in Queens. It also has to be run by a federally recognized tribe, which the Shinnecocks are not; their application for tribal status has not yet been approved. Although New York State has regarded the Shinnecocks as a bona fide tribe for generations, and a federal judge ruled in 2005 that the tribe deserved federal recognition, the Bureau of Indian Affairs is sticking to its own incredibly poky timetable for determining tribal status. Its decision on the Shinnecocks is not expected until at least 2014.

That is a long time to wait, and a long time to endure the games of brinkmanship and wheeler-dealing that have been played since the Shinnecocks first caught the casino bug several years ago. Their latest plan has an air of grandiose fantasy about it — revving up a dumpy racetrack with more than 10,000 slot machines, 350 gaming tables, 22,000 permanent jobs and $2 billion in revenue, about $400 million of it going to New York State. The fact that this putative gold mine would be in New York City, and not on Long Island’s East End, is a critical part of the deal: give us an Aqueduct casino, the tribe said, and we will abandon plans to build a casino on 79 of our acres in Hampton Bays, where local opposition to the plan is fierce and deep.

Let’s be clear: There should be no casino in New York City or the Hamptons, no matter who runs it. (Other companies are bidding for the Aqueduct gambling concession; the Shinnecocks’ plan dwarfs the rest.) This page has long opposed the state’s addiction to easy revenue plucked from gamblers’ pockets. The state should not be expanding gambling at its racetracks — not with roulette wheels, blackjack and poker tables, and not with video lottery terminals, the euphemistically named slot machines that are a gambler’s version of crack cocaine. There should be no casino deal with the Shinnecocks, no matter how large and tempting the promised kickbacks to state coffers.

Economic development is a separate issue; no one can argue against prosperity for the Shinnecock tribe, whose members have long struggled against poverty, drug abuse and limited opportunity. The tribe may find it hard to resist dreams of another Foxwoods or Atlantic City, and infuriating that its battle for dignity and self-determination is taking place against the backdrop of the East End, site of some of the more obscene extremes of wealth in America’s second Gilded Age.

But gambling is an illegitimate route to wealth, particularly for the government of a tribe or a state. It strews too many losers by the roadside, and is fraught with hidden costs. The Shinnecocks should give up their long, divisive, and potentially fruitless wait for that one big score, and turn instead to more sustainable, less damaging means of development.

Blogger raises reasonable doubts about Shinnecock plan for Aqueduct

Blogger Alan at Left-at-the-Gate makes this post regarding the Shinnecock/Gateway proposal for a casino and hotel at New York's Aqueduct Racetrack:

Casinos other than racetrack VLT parlors are illegal in the state, unless built on land owned by a tribe that is recognized by the Department of the Interior's Bureau of Indian Affairs. Although the tribe has been recognized by a federal judge, the bureau has yet to follow suit, saying a decision might not be made until 2014.

The bureau has said it can't get to the Shinnecocks' case until 2009, and that a decision couldn't be made until five years after that. [Newsday]

Yeah, the wheels of government turn slowly alright, unless its funding a failed war. The tribe is awaiting a court's decision on their plan to build a casino on Eastern Long Island, but even a favorable decision would be subservient to their federal tribe status. However, according to the News' report, should the court rule that they have the right to build that casino, the tribe would try for a global settlement with the state and feds — giving it tribal recognition and making the land around the racetrack reservation property.

The proposal calls for over 10,000 slot machines as well as a full array of table games; and would have nothing to do with operating the racetrack. The Shinnecocks have no experience with running a casino, but they have a willing partner in Gateway Casino Resorts. That company is run by Marian Ilitch, the wife of Detroit Tigers' owner Mike Ilitch, who, of course and according to major league baseball rules, has nothing at all to do with his wife's business! Of course, you can find all you need to know about the Ilitch clan over at The Verifiable Truth. Gateway operates the MotorCity Casino in Detroit, a venture which is apparently having some problems of its own.

Proposed Shinnecock/Gateway casino at Aqueduct Racetrack would be less than 15 miles from Times Square

According to a map published on 10.15.07 in the New York Daily News, the Shinnecock Indian Nation/Gateway Casino Resorts proposed $1.4 billion casino and hotel project at Aqueduct Racetrack in Queens, NY would be just 14.5 miles from Times Square. Today, the nearest casino/hotels are about 130 miles from the heart of Manhattan; those include the commercial casinos in Atlantic City, and the Foxwoods and Mohegan Sun Indian casinos in Connecticut.

Site plan map of Shinnecock casino resort proposal for Aqueduct Racetrack

New York Daily News published this site map on 10.15.07 for the Gateway Casino Resorts/Shinnecock Indian Nation proposed $1.4 billion casino and hotel at Aqueduct Racetrack.

"The Shinnecocks' surprise bid, reported exclusively in the Daily News yesterday, would put slot machines, table games like blackjack and poker and 1,200 hotel rooms on the site of the moribund Aqueduct Racetrack in far eastern Queens.

"Backers say it would generate 12,000 jobs and almost $400 million a year for the city and state, luring back gamblers from Atlantic City and the Indian casinos in Connecticut."

Shinnecock Nation optimistic on casino bid

Shinnecock Nation optimistic on casino bid

via Indianz.Com Indian Gaming News on 10/17/07

The Shinnecock Nation's proposal to build a casino resort at a racetrack is "doable," tribal trustee Lance Gumbs told Newsday. The tribe and its partner were one of six bidders to operate the Aqueduct Racetrack in Queens under a state...

Shinnecock need federal recognition to land casino resort at Aqueduct

10.15.07

Shinnecocks eyeing Aqueduct for casino

By: Howard Koplowitz

A Native American tribe from Long Island is interested in building a casino at Aqueduct Racetrack in Ozone Park, a spokeswoman for the tribe said Monday.

The Shinnecock Indian Nation's proposal entails 490,000 square feet of gaming space that would include 10,600 slot machines and 350 tables for blackjack and poker.

More than $2 billion in revenue would be generated through gambling, the tribe said.

The proposal is much wider in scope than the planned video lottery terminals for Aqueduct, which would contain only slot-machine-like devices.

The tribe is currently not federally recognized, which would be needed in order for it to build a casino in the state. It filed for federal recognition in 1978 but has not gotten an answer.

Beverly Jensen, a Shinnecock spokeswoman, said she did not immediately know the criteria for federal recognition, but "whatever it is, we meet all of that and above and beyond."

Since the area around Aqueduct is not Shinnecock land, the tribe would need to enter into an agreement with the state to build a casino at the site - if it becomes federally recognized.

Ilitch backed NY casino at Aqueduct race track would be 4.5 times larger than MotorCity Casino

Since 2003, Marian Ilitch has been bankrolling plans by the Shinnecock Indians – they have yet to be recognized by the federal government -- to build a 65,000 square foot casino resort in The Hamptons on Long Island.

But now, the Ilitch backed tribe has come up with a new scheme: to build a 495,000 square foot casino at New York’s Aqueduct race track (more than 7.5 times larger than the casino plan announced for Long Island). The Aqueduct scheme is reported to rival two of the country’s largest Indian casino resorts: Mohegan Sun and Foxwoods.

Marian Ilitch was 25% partner in the original MotorCity Casino venture which opened in 1999 in Detroit. She acquired all outstanding shares of MotorCity Casino from MGM Mirage/Mandalay Resort Group and other minor investors in 2005 to help facilitate the merger of the two Las Vegas gambling conglomerates. Since then MotorCity Casino has undergone a $275 million renovation and expansion and the new MotorCity Casino has 100,000 square feet of gaming space according to Wikipedia. The Aqueduct proposal would be 4.5 times larger than MotorCity Casino.

Marian Ilitch and her husband Detroit Tigers/Red Wings owner Michael Ilitch hosted a fundraiser at their Detroit headquarters for former New York Mayor Rudy Giuliani’s presidential campaign in August. The event was reported to have raised as much as $345,000 for Giuliani’s campaign.

The Ilitch family and their casino syndication partner have personally contributed nearly $1 million to political campaigns in recent years.

Ilitch and partners have paid some of the most influential and most controversial D.C. lobbyists more than $3.5 million to push various Indian casino proposals since 2002.