Dec. 18–A Mohegan Sun casino in the Catskills isn’t in the cards after all.
Gambling regulators passed over a bid by the Mohegan Tribal Gaming Authority to redevelop the former Concord Resort Hotel in Thompson, N.Y., which used to be a major attraction during the heyday of the Borscht Belt, part of the Catskills region where Jewish people in Greater New York City vacationed in the early- to mid-20th century.
Instead, the New York Gaming Facility Location Board on Wednesday chose three destinations for resort casinos for consideration by the New York Gaming Commission:
— Montreign Resort Casino in Thompson, N.Y., for the Catskills/Hudson Valley region;
— Rivers Casino and Resort at Mohawk Harbor in Schenectady, N.Y., for the Capital Region;
— Lago Resort and Casino in Tyre, N.Y., for the Eastern Southern Tier/Finger Lakes Region.
“We are disappointed that the Facilities Location Board has chosen to overlook Mohegan Sun’s long track record of success in the Northeast, high level of brand recognition, unique outward-facing business model, and speed-to-market advantage among the bidders for a casino license,” Mohegan Tribal Gaming Authority CEO Mitchell Grossinger Etess said in a statement.
“Most of all, we’re disappointed that we have not been recommended to play a role in an endeavor so close to our hearts: the revitalization of the Catskills and returning jobs and economic growth to this historic region of New York,” Etess said.
The location board in New York considered 16 plans: nine in the Catskills/Hudson Valley region, four in the Greater Albany Capital region, and three in the Eastern Southern Tier/Finger Lakes.
The Mohegan Tribal Gaming Authority’s plan was among the nine proposals for the Catskills, and, adding a bit of sting to the decision, was the only other plan for Thompson, N.Y.
The winning plan for the Catskills by Montreign, a subsidiary of Empire Resorts Inc., calls for an 18-story complex with a casino, a 391-room hotel in Thompson. The plan also features an indoor waterpark and an “entertainment village” with dining and retail outlets, a golf course and residential development.
All told, Montreign plans to invest $630 million on the project, creating 1,209 full-time and 96 part-time permanent jobs. Montreign calls its proposal Adelaar.
New York’s casino location board said in its decision it “finds that the design and amenities of Montreign’s gaming facility are strong, especially in combination with the other proposed elements of the Adelaar development. The Board’s experts observed that the proposed casino floor configuration is larger, more varied and potentially more interesting than some other competitive proposals.”
The Rivers Casino & Resort at Mohawk Harbor in Schenectady is an investment of $300 million to build on 60 acres of Mohawk River waterfront. The plan includes a 50,000 square-foot casino and a hotel with 150 rooms and room for another 124-room hotel.
The Lago Resort Casino planned for Tyre, N.Y., includes a 94,000 square-foot casino, 207 hotel rooms, restaurants, lounges with local fare, and a spa. The project is a $425 million investment.
New York’s decision Wednesday is the second time in four months the Mohegan Tribal Gaming Authority lost to rival casino proposals in another state. In September, the Massachusetts Gaming Commission awarded Wynn Resorts a casino license for Greater Boston over plans for a Mohegan Sun in Revere, Mass.
In his statement Wednesday, Etess said, “While today’s decision was certainly disappointing, Mohegan Sun Connecticut continues to be the best and highest-grossing resort casino in the Western Hemisphere, and we will continue to pursue these types of opportunities as they arise.”
New York and Massachusetts have looked to gambling as a source of economic development and a way to bring in added tax revenue.
Last year, New York’s legislature passed the Upstate New York Gaming Economic Development Act to authorize as many as four destination casinos in three distinct regions. The hope is to boost the economy in the Catskills, the Greater Albany region and the southern Finger Lakes region.
New York is the latest of several states in the Northeast to broaden and increase gambling options, which has eroded slot revenues at Connecticut’s casinos for years. Massachusetts, for example, approved MGM Springfield in Springfield, Mass., and a Wynn Resorts casino in Everett, near Boston.
New York State has existing casinos owned and operated by Native American tribes. The state offers other gambling options, too, such as Empire City Casino at the Yonkers Racino, and Saratoga Race Course in Saratoga Springs
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