Oct. 26--Park Place Entertainment and an upstate New York Indian tribe plan to break ground next year on a $500 million casino, the company announced Thursday after Empire State lawmakers approved major gambling expansion for their state. 

The New York Assembly voted 93-40 early Thursday morning to approve a bill authorizing six new tribal casinos, racetrack slot machines and participation in the multistate Powerball lottery. 

The vote came hours after the state Senate voted 52-8 to approve the bill, which now goes to Gov. George Pataki for his expected signature. 

"The Legislature's action has put the Mohawk project on the fast track," Park Place Senior Vice President Kim Sinatra said in a statement, referring to her company's deal to develop and manage a casino for the Saint Regis Mohawk tribe. "This project will mean thousands of jobs and hundreds of millions of dollars in local investment." 

The measure allows Pataki to negotiate gaming compacts with American Indian tribes to operate three casinos in the Catskills and three casinos in western New York. 

Racetracks outside of New York City would be allowed to have video lottery devices, similar to slot machines. 

New York officials project the change would boost state tax coffers by about $1 billion. 

Tribal casinos would pay 18 percent of slot revenues to the state, with the percentage increasing to 25 percent in seven years. 

If he signs the measure, Pataki would have to negotiate compacts with the tribes before casinos could open. 

Tribes would also have to get approval from the Bureau of Indian Affairs to have the federal government hold land in trust for a casino venture, and the National Indian Gaming Commission would have to OK any casino management contracts. 

Bear, Stearns & Co. casino industry analyst Jason Ader said the big Atlantic City casino operators could see as much as a 25 percent cut in cash flow if three casinos are opened in the Catskills, only 90 miles from New York City. 

Park Place is the biggest operator in the nearby Atlantic City casino market, earning about one-third of the city's $4.3 billion in 2000 gambling revenues. 

About 30 percent of Park Place profits come from Atlantic City, Ader said. 

"For the major Atlantic City operators, the developments in New York are more negative than positive," he said. "Anyone with major exposure to Atlantic City is at risk." 

Park Place and the Saint Regis Mohawk tribe announced plans to begin construction on a 750-room hotel-casino before the end of next year. 

The property will have a 130,000-square-foot casino, eight restaurants and a spa. 

Park Place agreed in May 2000 to pay $3 million to the tribe for the right to develop and operate a casino for the tribe. 

The company also paid $1 million to acquire an option to buy the 1,350-acre Kutsher's Resort Hotel and Country Club for $65 million. 

Park Place's deal to develop and manage the Saint Regis Mohawk casino lasts seven years, with Park Place slated to receive 30 percent of the casino's net cash flow. 

The tribe and Park Place have also agreed to pay $15 million annually to local governments near the planned casino. 

Tribal officials were unavailable for comment late Thursday. 

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