TABLE OF CONTENTS

 

SUMMARY

I. INTRODUCTION

A. The New York State Task Force on Casino Gambling ............................................ 1

1. Formation and Charge

2. Execution of Duties

B. Amendment of the State Constitution ......................................................... 2

1. The Process of Amendment

2. The Particulars of Senate 5557 / Assembly 8356

C. New York State and Gambling ................................................................. 3

1. Historically

2. Gambling Since the 1894 Constitution

3. Indian Gambling in New York State

D. The Task Force Report to the Governor ....................................................... 6

II. ECONOMIC AND SOCIOLOGICAL IMPACTS OF CASINO GAMBLING

A. General Impact of Casino Gambling ........................................................... 8

1. Impacts on Communities with Casino Gambling

2. Present Day Economic Impacts on New York State

B. Potential Economic Impacts of Casino Gambling in New York State ............................. 21

1. Criteria Used to Evaluate Economic Impacts

2. Economic Models Utilized

3. Casino as an Economic Development Strategy

4. The Role of Casinos in Tourism Development

5. Economic Potential of Casino Gambling by Region

C. Taxation / Licensing Structures and Revenue Potential ....................................... 58

1. Taxation Structures Utilized in Other States

2. Revenue Potential from Taxation

3. Gaming Taxation Revenue Distribution

D. Implication for Real Property Taxation ...................................................... 69

1. The Property Tax in New York

2. Property Taxation Treatment of Commercial Property

3. Effects of Casino Development on Tax Bases of New York Local Governments

4. Projected Property Tax Revenues

5. Summary of Findings and Conclusions

E. Impacts on Other Forms of Gambling .......................................................... 85

1. Pari-Mutuel Wagering

2. Off-Track Wagering

3. Charitable Gambling

4. State Lottery

F. Pathological and Problem Gambling ........................................................... 135

1. Methods of Measurement

2. Past Prevalence Studies

3. The 1996 Prevalence Study

4. Education and Treatment Programs

5. Costs of Problem and Pathological Gambling

6. Conclusions and Recommendation

III. INDIAN GAMBLING

A. An Overview of Indian Gambling in the United States ......................................... 147

1. Sovereignty of Indian Nations and Tribes

2. Applicability of State Law in Indian Territory

3. The Development of the Law of Indian Gaming

4. Indian Gaming Regulatory Act of 1988

5. Indian Gambling After Seminole Tribe v. Florida

B. Native Americans and Gambling in New York State ............................................. 155

1. Native Americans in New York

2. Indian Gaming in New York

3. Expansion of Indian Gambling in New York

C. Native American Gambling on After-acquired Lands ............................................ 161

D. Evaluation of Non-Reservation Indian Gambling Applications .................................. 172

1. Local Fiscal Impacts

2. Local Land Use Concerns

3. State Fiscal Concerns

4. Environmental Impacts

5. Regulatory Concerns

6. Community Support

E. The Potential of Off-Reservation Indian Casino Gambling ..................................... 179

1. Determining the Value of an Indian Casino

2. Fiscal Estimates

3. Tax Revenue Estimates

IV. CASINO GAMBLING AND CRIME

A. INTRODUCTION ................................................................................ 185

B. THE RELATIONSHIP BETWEEN CASINO GAMBLING AND CRIME .......................................... 186

1. Increased Opportunities for Potential Crimes

2. Crime Among Pathological Gamblers

3. Organized Crime and Legalized Gambling

4. Public Corruption

C. CASE STUDIES OF CRIME AND CASINOS ........................................................... 194

1. New York State

2. Atlantic City

3. Other Locations

D. PERCEPTIONS OF LAW ENFORCEMENT OFFICIALS .................................................... 213

1. Survey Approach

2. Native American Casinos

3. Race Tracks

4. Riverboat Casinos

5. Land-based Casinos

6. Canadian Casinos

7. Summary

E. CONCLUSIONS ................................................................................. 217

 

V. REGULATION OF CASINO GAMBLING

A. INTRODUCTION ............................................................................... 224

1. Purposes of Governmental Regulation

2. Major Issues in Casino Regulation

3. Structure of Regulatory Agencies throughout the United States

B. ISSUE RESOLUTION IN SELECTED JURISDICTIONS .................................................. 231

1. Unitary v. Bifurcated Systems

2. Pre-Licensing Investigations and Decisions

3. Enforcement and Adjudicatory Mechanisms

4. In-House Surveillance and Monitoring

C. RELATIONSHIP WITH NON-CASINO GAMBLING REGULATION ............................................ 235

D. LICENSING / SELECTION OF CASINO OPERATORS ................................................... 236

1. Moral Fitness Criteria

2. Publicly Traded Companies

3. Financial Criteria

4. Economic Criteria

5. Selection Authority

E. REGULATION OF CASINO OPERATORS .............................................................. 240

1. Introduction

2. Internal Controls

3. Regulation of Gaming Enterprises

4. Regulation of Non-Gaming Enterprises

5. Occupational Licenses

6. Exclusion Listing

7. Ancillary Issues

G. COSTS OF CASINO REGULATION ................................................................. 246

1. Degree of Cost Variation

2. Source of Revenue for Regulatory Costs

3. Concerns Regarding Charges to the Regulated Party

4. Use of Fines

5. Special Revenue Funding

H. CONCLUSIONS AND RECOMMENDATIONS ........................................................... 248

BIBLIOGRAPHY ................................................................................ 261

 

APPENDICES

A. EXECUTIVE ORDERS 36 AND 36.1

B. SENATE 5557 / ASSEMBLY 8356

C. ECONOMIC IMPACTS

D. CASINO GAMBLING AND TOURISM

E. CASINO GAMBLING IN THE UNITED STATES

F. NATIVE AMERICANS IN NEW YORK STATE

G. NEW YORK STATE RACING STATISTICS

H. NEW YORK STATE BINGO AND GAMES OF CHANCE CHARTS

I. CRIME SURVEY AND EXPLANATORY INFORMATION

J. HEARING PARTICIPANTS

 

 

CHARTS AND ILLUSTRATIONS

 

ECONOMIC AND SOCIOLOGICAL IMPACTS

 

Chart Title Page

1. Casino Communities Examined .................................................................................... 10

2. Employment in Casino Communities, Change After Casino Opening ................................................. 12

3. Employment in Casino Communities, Combined Employment Changes ................................................. 13

4. Top Ten Casino Feeder Markets ................................................................................. 17

5. Top Ten States Collecting Gaming Taxes ........................................................................ 17

6. Market Share of Domestic Leisure Travel Destinations .......................................................... 18

7. New York State Residentsí Casino Gambling Spending Outside of the State ....................................... 20

8. Spending Multipliers and Multiplier Effects ................................................................... 21

Potential Direct Casino Gambling Revenues and Employment,

Stand Alone Scenario ................................................................................................... 42

10. Potential Direct Casino Gambling Revenues and Employment,

Resort Scenario ........................................................................................................ 43

11. Potential Direct Casino Gambling Revenues and Employment,

Stand Alone Scenario ................................................................................................... 56

12. Potential Direct Casino Gambling Revenues and Employment,

Resort Scenario ........................................................................................................ 57

13. Gaming Device Revenue Potential fom Stand-Alone Casinos ......................................................... 63

14. Gaming Device Revenue Potential From Resort Casinos ............................................................. 64

15. Casino Gambling Revenues and Distributions at 15 Percent ........................................................ 68

16. Potential Revenues Based at 6.25 Percent ........................................................................ 69

17. Potential Revenues Based at 8.00% Rate .......................................................................... 69

18. The Property Tax in Relation to other Major Taxes, Fiscal Year 1995 ............................................. 70

19. Distribution of Real Property Tax Levies ........................................................................ 70

20 Commercial Property Taxation Practices in Selected States having

Casino Gambling Compared to New York State Practices ................................................................... 73

21 Taxable Values of Existing Catskill-area Resort Hotels,

1995 Assessment Rolls .................................................................................................. 77

22. Key Assumptions on New York State Casino Characteristics ........................................................ 78

23. Projected Increase in Residential Tax Base due to Casino Development ............................................ 80

24. Projected Increase in Non-Casino Commercial Property due to

Casino Development ................................................................................................... 81

25. Projected Property Tax Revenues, Casino Facilities, and other

New Real Estate Development (No Property Tax Exemptions) ............................................................... 83

26. Projected Property Tax Revenues, Casino Facilities and other

New Real Estate Development (with Real Property Taxation Law

Section 485-b Exemption, early phase) .................................................................................. 84

27. Canterbury Downs, Handles 1989 - 1995 .......................................................................... 91

28 Atlantic City Race Course, Handles 1987 - 1995 .................................................................. 92

29. Detroit Race Course, Handles 1991 - 1995 ....................................................................... 93

30. Arlington International Racecourse, Handles 1990 - 1995 ........................................................ 94

31. Louisiana Downs, Handles 1991 - 1995 ........................................................................... 95

32. Dover Downs, Handles 1992 - 1996 ............................................................................ 95

33. Delaware Park, Handles 1993 - 1995 ............................................................................. 97

34. Prairie Meadows, Handles 1989 - 1995 ........................................................................... 98

35. Distribution of Slot Machine Revenue, Prairie Meadows,

April - December 1995 ................................................................................................ 99

36. Handle Comparison between Region, by Casino Proximity ........................................................... 109

37. Lottery Sales Increases, 1990 - 1996 .......................................................................... 132

38. Lottery Sales by Games, Fiscal Years 1990 - 1991 through 1995 - 1996 ........................................... 133

39. Annual Growth Trend by Game Type, 1990 - 1995 .................................................................. 134

40. Results of the 1996 Prevalence Study ........................................................................ 138

41. South Oaks Gaming Screen v. DSM-IV, 1996 Study Comparison ....................................................... 139

Map Title Page

1. Major Gambling Destinations for New York State Residents ..................................................... 19

2. Potential Casino Sites Prescribed by Proposed Amendment .......................................................... 40

2a. Potential Western New York Casino Sites Proscribed by Proposed Amendment ........................................ 45

2b. Potential Saratoga/Warren Casino Site as Proscribed by Proposed Amendment ....................................... 47

2c. Potential Catskills Casino Site as Proscribed by Proposed Amendment ............................................. 49

2d. Area Surrounding the Turning Stone Casino ....................................................................... 51

3. Existing Tourism Infrastructure ................................................................................. 55

4. Regional Off-Track Betting Corporations .......................................................................... 104

5. Fifty Mile Radii from Turning Stone and Batavia .................................................................. 108

6. Charitable Gambling, Radii Extending From Turning Stone .......................................................... 111

7. Charitable Gambling, Radii Extending From Batavia ............................................................... 116

 

 

CRIME AND CASINO GAMBLING

Table Title Page

1. Investigations and Arrests in Turning Stone, 1993 - 1996 ..................................................... 197

2. Chenango County: Selected Offenses ............................................................................... 203

3. Onondaga County: Deceptive Theft Offense ......................................................................... 204

4. Madison and Oneida Counties ...................................................................................... 205

5. Reported Part I Index Crimes, Town of Ledyard 1990 - 1995 ........................................................ 210

6. Reported Part I Index Crimes, Foxwoods Resort Casino 1992 - 1995 ................................................. 211

 

Figure Title Page

1. Municipalities within 50 Miles of Turning Stone Casino ....................................................... 198

2. Selected Property Offenses: Percentage Change by County .......................................................... 201

3. Burglary: Percentage Change by County ............................................................................ 202

4. Larceny: Percentage Change by County ............................................................................ 202

5. Deceptive Theft Offenses: Percentage Change by County ............................................................ 203

6. Violent Index Crime Totals, 1977 - 1994, New Jersey and Atlantic City ............................................ 208

7. Property Crime Totals, 1977 - 1994, New Jersey and Atlantic City ................................................. 208