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Pataki, Mohawk Group Reach Casino Accord May 12, 2003
Mohawk Indian leaders and New York Governor George Pataki plan to sign an agreement toward building a $500 million casino in the Catskills region that would be run by Park Place Entertainment Corp., the world's largest gaming company, a Pataki press aide said.
The developers would turn an old resort area near Monticello, New York, a 100-mile drive from Manhattan's Times Square, into the closest casino destination from New York City, competing with Atlantic City, New Jersey, and two Indian casinos in eastern Connecticut, all 25 to 35 miles farther away.
The proposed agreement requires state, federal and tribal approval. Full terms of the casino accord remain to be negotiated.
State legislation passed in 2001 permits as many as three Indian casinos in the Catskills. The impact on Atlantic City's 11 casinos and Connecticut's Foxwoods and Mohegan Sun may depend on their eventual capacity, Fuller said.
``Atlantic City withstood the emergence of both Foxwoods and Mohegan Sun and in fact the market in Atlantic City today is bigger,'' said Jake Fuller, a Manhattan-based gaming and travel analyst with Thomas Weisel Partners. ``But if you keep adding in incremental gaming capacity, it's going to have an impact.''
Michael Pollock, publisher of Gaming Industry Observer, a newsletter that tracks industry trends, said Catskills casinos would more likely boost regional rivals than hurt them. `` The historical pattern of gaming expansion shows that gaming breeds gaming,'' Pollock said.
Revenue Estimate
Pataki and three chiefs from the St. Regis Tribal Council were scheduled to sign a memorandum of understanding at a 1:30 p.m. ceremony at the State Capitol, said Suzanne Morris, a Pataki spokeswoman. The casino deal would be part of a larger settlement of disputes over land claims and tax-free Indian retail sales.
State officials estimate the deal might produce $100 million a year in revenue for New York.
``This agreement represents an historic breakthrough in two decades of litigation that has produced nothing but animosity and conflict,'' Pataki said in a draft statement provided by his press office. ``Today, we have agreed to a global resolution that will yield good things for the Mohawk tribe and New York State.''
St. Regis Tribal Council spokeswoman Jennifer Jock said approval of two
other tribal governments on the Mohawk reservation, which straddles the
U.S.-Canadian border, are necessary for ``at least the land claims settlement
portion.''
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