New Casino in NYC: Is it a Jackpot or High Stakes Gamble?
January 9, 2013By Tiffani Knowles

The possibility of a brand new New York City casino has won the support of Brooklyn Borough President Marty Markowitz but has both religious and activist organizations up in arms.


According to a Brooklyn Daily article published on January 7, the Sephardic Community Federation ran an advertisement campaign against the proposed Brooklyn-based casino last month, claiming a slot house would yield higher crime rates and bring sin and debauchery to the area.

The Federation is a Manhattan-based advocacy group that represents 100,000 Sephardic Jews, descendants of Spanish and Portuguese Jews, in the metro area.


"When you bring in a casino, everything negative goes up, crime, gambling addiction," said Steve Zeltser, a Coney Island native working as a spokesman for the Stop the Coney Casino campaign. "This isn't a Jewish issue, it's a south Brooklyn issue."


Markowitz believes the operation will serve as an incredible income generator, however.

"We already have the built-in powerhouse branding of Brooklyn and Coney Island," said Markowitz. "The addition of a casino would serve as a catalyst for further economic development and solidify Coney Island as the city's premier year-round amusement and seaside entertainment destination. When you really get down to it, where else but Coney Island?"


He called for casino gambling since last January but a bill to legalize casino gambling in the city still must pass two major hurdles.


The state Legislature has to once again pass a constitutional amendment to approve the casinos and then the move must be approved by voters.


Zeltser, a former aide to Councilmen Mike Nelson (D-Brighton Beach) and Lew Fidler (D-Sheepshead Bay), has courted several politicians to ensure they oppose the bill.


Southern Brooklyn legislators such as Assemblymen Bill Colton (D-Bensonhurst), Steve Cymbrowitz (D-Brighton Beach), and Dov Hikind (D-Borough Park), along with state Sen. Marty Golden (R-Bay Ridge), have all promised to block the casino, which could come up in the state legislature as early as this month.


Assemblyman Steven Cymbrowitz (D-Sheepshead Bay) voiced concerns about the repercussions on the community but said he'd continue to support the measure as long as it also set aside money to fund treatment programs for compulsive gambling.


Bertha Lewis, president and founder of the Black Institute and the former CEO and chief organizer of ACORN, claims that a concession of this nature makes no sense.


"So we know there is a problem, but we are going to

allow a casino to be developed in a vulnerable community anyway and just say, "Throw us a couple of bucks for counseling?" It's like saying to the tobacco companies that it's OK to peddle their cigarettes to kids, just as long as they pay for the Nicorette after they have been diagnosed with cancer," said Lewis.


Lewis wrote an Op Ed article that was published in The Amsterdam News on December 28 to shed light on the issue as it pertains to the communities of color in New York.


"Several studies have shown that pathological gambling, a medically recognized impulse-control disorder, disproportionately impacts people and communities of color: African-Americans, Hispanics, Asians, Native Americans and immigrants," she wrote. "The higher prevalence of gambling addiction among minority groups is clearly tied to where gambling establishments are located and the relationship to lower socioeconomic status."


She claimed that the people with the least amount of discretionary income spend the most on gambling, citing studies that showed upwards of 80 percent spent in casinos came from local residents.

Besides the Black Institute and Sephardic organization, another anti-casino ally is the Russian-American Jewish Experience. The Federation hopes to add the Catholic Diocese of Brooklyn as well as smaller neighborhood congregations to their list, as well.


The success of the Resorts World Casino New York City, the casino that opened at the fading Aqueduct horse racing track in Queens, NY in October 2011, suggests that nothing appeals more to gamblers than a casino in their own neighborhood.

More than 5.6 million people live within 10 miles and across the street from its parking lot are several single-family homes.


And according to the casino website, Resorts World Casino New York City "hit the jackpot this year, becoming the single largest slot revenue gaming property in the country with more than $638 million in gross gaming revenues."


The state generated more than $435 million in tax revenues, with $280 million of that going directly to the state's education fund.


"While we never doubted this would be a successful venture, we have far exceeded any and all expectations we had for 2012 and can't wait to begin an even better 2013," said Michael Speller, president of Resorts World at Aqueduct Racetrack. "It's clear that New Yorkers and tourists alike are aware that there is a wonderful, world-class casino experience right here in Queens - minutes, not hours, away."


It is, in fact, the first and only casino ever in New York City, that may be until Coney Island claims its own. The projected date if passed - 2014.


The revenue for NY state schools was not the only thing to benefit from the casino in 2012, according to Speller.


In the past year, the casino created more than 3,000 jobs for New Yorkers, with a majority of those positions going to Queens residents.


Lewis believes those dream jobs will have what is known as "the Walmart effect."

"While casinos may initially create a boost in jobs that average $11.25 an hour, the damage to small businesses will negate any gains made in this area," she said. "By offering free food, drinks and entertainment, the [casino] aims to keep [its] clientele in the casino gambling for as long as possible, thus damaging any chance for outside restaurants, bars and other attractions to benefit.


However, critics also say that with the addition of a second casino in New York, the gambling market will become saturated, almost certainly putting a big dent in profits at Aqueduct.


"You may be successful with a commercial casino in New York City, but there's going to be collateral damage," said Alan Woinski, president of Gaming USA, which publishes analyses of the gambling industry. "Everybody thinks casinos print money. Those days are over. The market is becoming saturated."


In the end, could a Brooklyn casino end up causing more harm than good?




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