Just 13 months after opening its doors to the public, the del Lago Casino in the Finger Lakes area of New York is in such financial trouble that it has turned to the state for a bailout. The local media is now pointing fingers at Governor Cuomo who promised that building new casinos upstate would bring prosperity to these regions.
Republican Assemblyman, Gary Finch was quoted as saying: “We were told these gaming facilities would be an economic stimulus for the state. We were told they would generate tax revenue, not cannibalize it.”
“The paint on this place isn’t even dry, and they want a bailout? It’s absurd.”
Cuomo, in response, has rejected the idea that the state may offer financial concessions to the del Lago Resort and Casino, or any other casino for that matter.
“The upstate gaming casinos are private concerns,” he told reporters. “They bid, they made an investment and some of them will say they are not doing as well as they hoped or would have expected. But they’re private concerns, and I don’t want to get into the business of bailing out private concerns.”
The del Lago Resort is one of four non-tribal owned casinos that opened up in New York State in the past 16 months. Although none of the four – including the Rivers Casino and Resort in Schenectady, Tioga Downs in the Southern Teir and Resorts World Catskills – are anywhere near meeting their projected revenue, del Lago is doing particularly badly. With a credit rating that was downgraded to “negative”, $100 million short of its first-year estimates and the inability to pay its debts, it seems that del Lago is in deep trouble.
The casino owners reportedly asked the state for around $14 million in breaks. It presently pays 37% of its slot machine revenues to state, as well as local governments. 10% of its table game revenues also go to the state.
The main owner of del Lago, developer Thomas Wilmot told reporters: “I think we need some help at this point, and what the future holds, time will time. We’re paying the bills. Long term, it isn’t going to be sustainable without some help.”
