BY R.J. DELUKE
Saratoga Harness Racing LLC, the operators
of Saratoga Casino and Raceway, lost out
in December on a pair of bids to build one of
the new state-approved full-fledged casinos
that, unlike the current Saratoga facility,
include table games like poker, black jack
and roulette.
But James Featherstonhaugh, an Albany
attorney who is a partner at the Saratoga
Casino and Raceway, said the local operation,
often still referred to as the Racino, will be
ready to compete with a new casino.
It also will not stop the addition of a new
hotel at the Casino and Raceway. “We hope
to move forward with that as expeditiously
as possible,” he stated.
The local group was in the running with
two projects, one at a site on Thompson Hill
in East Greenbush, Rensselaer County, and
the other farther south in Newburgh.
But just before Christmas, the Gaming
Facilities Location Board of the state Gambling
Commission issued three licenses from
among 16 competitors. The casinos, pending
more permitting and red tape, will be built
in Schenectady, on the banks of the Mohawk
River; in the town of Thompson in Sullivan
County; and in the town of Tyre, near the
Finger Lakes.
Saratoga was once considered a possibility
as a site for a new casino, but plans were
withdrawn when there was significant public
opposition.
With the close proximity of the Rivers
Casino project in Schenectady to Saratoga
Springs, there is speculation that it could
have an adverse impact on Saratoga Casino
and Racing.
Rivers Casino & Resort at Mohawk Harbor
is owned by Capital Region Gaming. The
project calls for the developers to spend
$300 million on an ornate complex on the
river, viewed as integral to the revitalization
of Schenectady.
Featherstonhaugh said he has seen studies
that estimate the Racino could lose anywhere from 30 percent up to as high as in the 40s.
He said if business takes that much of a hit
“there would be some downsizing, in terms
of employment and such,” but added “I don’t
think that anyone can tell you specifically
what will occur … It’s a little early to say
what exactly will happen.”
Featherstonhaugh said it will be anywhere
from 18 to 30 months before the new casino
is ready to open.
“We will use that time to plan for competition,
embrace it and be ready to compete
effectively,” he said.
Saratoga Harness Racing Inc. also recently
signed a definitive purchase agreement with
Churchill Downs Inc., whereby the latter will
purchase a 25 percent membership interest
in Saratoga Casino Holdings LLC (SCH)
for approximately $30.6 million. Churchill
Downs will manage the local facility when
plans are finalized.
Featherstonhaugh said the alliance
with Churchill “makes the entire business
structure much stronger, regardless of the
surrounding landscape.”
Both the purchase and management
contracts will become effective as soon as
CDI and SHRI obtain necessary licenses and
approvals in New York and Colorado. The
parties anticipate approval in the secondquarter
of 2015.
SCH is a newly formed entity which
will include the following assets: Saratoga
Casino and Raceway in Saratoga Springs,
N.Y.; SHRI’s controlling interest in Saratoga
Casino Black Hawk in Black Hawk, Colo.;
and its 50 percent interest in a joint venture
with Delaware North Companies to manage
the Gideon Putnam Hotel and Resort in
Saratoga Springs.
The deal would have included its interest
in the proposed Capital View Casino & Resort
in East Greenbush; and SHRI’s interest in a
joint venture with Rush Street Gaming to
build the proposed Hudson Valley Casino
& Resort in Newburgh, had those projects
been approved.