More than eight months after signing a gaming compact with the state, the St. Regis Mohawk Tribe and Empire Resorts are still awaiting final approval from the federal government to build a casino in Sullivan County adjacent to Monticello Raceway.
The casino project hinges on approval from the U.S. Department of Interior to place the 30-acre piece of land near the raceway into a trust, which would allow the casino to be built in compliance with the Indian Gaming Regulatory Act. The proposed site is hundreds of miles away from the nearest Mohawk tribal land, thus necessitating the need for the trust.
Empire Resorts is building the casino in conjunction with the tribe.
Gov. Eliot Spitzer in February announced an agreement with the St. Regis Mohawk tribe to build a casino in the Catskills.
The agreement amends an existing gaming compact with the Mohawks, granting the tribe authority to build and operate a gaming facility at Monticello Raceway. A 2001 state law allowed for three Indian-run casinos in the Catskills, although none have been built yet.
Steve Rittvo, chairman of the Colorado-based Innovation Group, a consulting firm for the gaming, leisure and hospitality industries, believes the St. Regis Mohawks will be able to take the land into trust.
“I think it”™s a done deal,” he said. “They reached a settlement (with the state), they are a federally recognized tribe, and an aboriginal tribe in New York.”
Rittvo specializes in market studies in areas where developers are considering siting a new casino. His clients include the St. Regis Mohawks and one of their potential competitors, Foxwoods in Ledyard, Conn.
Rittvo said the Sullivan County site would be an ideal location for a casino.
“What developers look for are places that have excellent population bases; that are within a decent driving distance, meaning less than three hours, from major population centers,” he said. “(They also look for) areas that have incomes at the national average or higher, and are currently not fully served by existing casinos.”
He said the Catskills area has “untapped demand” for a casino and would likely draw heavily from the New York metro area.
Â
He said a Catskills casino would likely affect Mohegan Sun more than Foxwoods, since Mohegan Sun draws about 25 percent of its clientele from the New York metro area, whereas Foxwoods draws more from the Boston area.
Overall, Native American-owned and operated casinos have grown considerably over the past decade, part of a trend changing the U.S. gaming industry from a small number of large-scale casinos into a widespread and readily available public entertainment option, according to a report issued by the Mercanti Group, a Minneapolis-based financial advisory firm.
The growth of casinos operated by Native American tribes has been especially striking, the report says.
In 2006, Native American casinos registered sales of $25.1 billion, with tribal casino revenues growing at a 14.8 percent compounded growth rate since 1996. Spurring tribal gaming growth has been the advent of class 2 gaming machines and compact arrangements for class 3 ”“ full-scale ”“ gaming with an increasing diversity of states. Class 2 gaming includes bingo and video slot machines.
“The significant impact a potential boost in tax revenues can have on education and public services, as well as the positive economics of new casino developments, such as job growth and increased tourism, has motivated many states, Pennsylvania and New York, among them, to support the supervised expansion of gaming,” said Mercanti Group director Brian Wood.
Calls to Empire Resorts were not returned by press time.
Â
Â
