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Odds Are Good For Casino In Catskills May 18, 2003
Connecticut's current and potential casino operators probably realize the express bus ride from midtown New York City to Monticello, N.Y., is just less than two hours. By comparison, the bus ride from midtown Manhattan to Mohegan Sun in eastern Connecticut is closer to three hours. Add another 15 or so minutes to Foxwoods Resort Casino.
This difference may become a concern for Connecticut gaming casino operators. Last week, an American Indian tribe in New York reached an agreement that may lead to a new casino in Monticello, a village in New York's Catskill mountains.
Executives for Mohegan Sun and Foxwoods conceded last week that a casino in the Catskills could cut into revenues but said New York is not their primary market. A Mohegan Sun study showed a Catskills casino would put 8 percent of Mohegan's revenues at risk. Bruce MacDonald, a spokesman for Foxwoods, said there's an "undeniable potential" a Catskills casino could hurt revenues.
What about casinos proposed or being discussed for Bridgeport and the Danbury area? Will they disappear with the prospect of a Monte Carlo in the Borscht Belt? Golden Hill Paugussetts Chief Quiet Hawk said a Bridgeport gaming casino, which his tribe has proposed, would not be derailed by a Catskills casino. Bridgeport is part of the Interstate 95 corridor, and Monticello is not, he said.
The Catskills casino is being pushed by the St. Regis Mohawk Tribe, which has a reservation much farther north in New York, near Massena. The Catskills casino would be at the site of the old Kutsher's Country Club in Sullivan County.
The agreement -- officially a memorandum of understanding -- between New York and the St. Regis Mohawk settles a two-decade battle over a land claim. It also allows the gaming casino to go forward.
Tribe members are optimistic the casino could be under construction within a year, but the agreement faces several state and federal approvals. Mohawk tribe members must ratify the agreement, along with the New York Legislature, the U.S. Congress, the Department of the Interior and others.
"We are a long way from anything right now, although we do have great support from our (U.S.) senators and the governor," said R.J. Cook, acting tribal spokesman. If a Catskills casino goes forward, Cook said there would be synergy rather than competition with those in Connecticut. Cook said the casinos could be a "string of pearls" around the New York City metropolitan area.
Plans call for the Mohawk casino to be in a 13-story building with 738 hotel rooms, 3,500 slot machines, 100 game tables, a 2,000-seat theater and plenty of restaurants. It would be called Mohawk Mountain Casino Resort.
The agreement New York reached with the St. Regis Mohawk has similarities to those Connecticut reached with the Mohegans and the Mashantucket Pequots, said Bethany Berger, a research professor in American Indian law at University of Connecticut's School of Law.
New York will receive the same portion -- 25 percent -- of slot machine "net drop" proceeds as Connecticut. New York set the rate at 20 percent for the first four years. Cook said that New York officials wanted to get the same percentage as Connecticut, even though the tribe thought 25 percent was too high.
"New York looked over to Connecticut and said, 'Golly, that looks pretty good to us,' " Cook said.
New York sees casinos as a way to revive depressed upstate communities, Cook said. The Mohawk casino will not be next to I-95, but Cook said it would be close to major highways. Monticello is just a short drive from Interstate 84, which goes straight to Danbury.
People like to move among casinos, he said, and traffic means economic
vitality. The Catskills economy was devastated, he said, when the interstate
allowed people to bypass local roads. If a couple of million people were
traveling between the New York and Connecticut casinos, Cook said, "somebody's
going to benefit."
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