NY hearing pits tribes, casino operators

ALBANY -- A hearing Wednesday on a potential constitutional amendment to legalize full casino gambling in New York pitted commercial against tribal interests.

Lawmakers and industry officials at the hearing of the Senate Racing, Wagering and Gaming Committee said gambling would be an economic boost to the state and local governments and keep those dollars from going to New Jersey, Connecticut or Pennsylvania.

But Randy King, tribal chairman of the Shinnecock Indian Nation, said getting a constitutional amendment passed would be a lengthy, uncertain process, whereas proposed Native American casino projects could begin development immediately. The Shinnecocks, for example, are considering sites at Belmont racetrack and in Suffolk County for a casino.

King urged lawmakers to advance the state and federal approval processes to get tribal projects moving. "Unlike other industries, and unlike out-of-state gaming consortiums, money from tribal casinos stays in New York and helps develop and preserve jobs, revenues and stability in New York, not just for Shinnecock but also for New York residents," he said.

Last month, Gov. Andrew M. Cuomo said the state should take another look at its ban on casinos. Even if momentum for change appears to be building, a constitutional amendment would require passage in two consecutive years by the legislature and voter approval by referendum.

"It's very difficult to get the general public to vote for casinos -- it's kind of a not-in-my-own-backyard idea," said I. Nelson Rose, a professor at Whittier Law School in Costa Mesa, Calif., who specializes in gambling law.

Another problem that the state would face is dealing with existing compacts with Native American casinos. "For there to be revenue sharing, the compacts have to give tribes exclusivity and so they would obviously no longer have that and they would no longer have to give the state any money," Rose said.

James D'Amato, chief executive of Empire Resorts, which owns the Monticello Casino & Raceway in Sullivan County, said tribal casinos, which pay lower or no taxes, had an unfair tax advantage over commercial gaming operations.

"This unlevel playing field means that Native American casinos can invest much more in resort facilities," D'Amato said in prepared testimony. "The expansion of Native American gaming to the New York State landscape will only hurt the current New York State [video lottery terminal] operators."