Innovation Update

Too Many Bets Placed on Empire Resorts

Stock quotes in this article: NYNY  

It's hard to handicap the odds for federal government approval.

Numerous lawsuits from environment groups and others have popped up in recent weeks, which is typical when it comes to casino developments.

A New York Post article this week, meanwhile, said that federal officials have been working on proposals in recent months to limit the type of land transfer that Empire and the Mohawk tribe is seeking.

The Post said it obtained a December letter from a top Interior official warning the St. Regis Mohawk tribe that the government is already seeking new rules "that may result in fewer off-reservation properties" being added to tribal lands through a trust, as the Mohawks are seeking to do at Monticello.

"The sentiment is the Department of Interior is against so-called reservation shopping," or the process of transferring off-reservation properties into tribal control, says Joe Weinert, a casino consultant with Spectrum Gaming. "But in this instance I think there is a lot more hope, because the tribes, and to some extent the state, have been trying for so long to make this happen."

The fact that the casino would be located in an economically distressed region could also improve the odds of passage, Weinert says.

The proposal also has the strong backing of New York politicians, including Sen. Charles Schumer (D-NY).

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