It is inevitable that Lago Casino in Tyre will be the death knell of Finger Lakes Gaming and Racetrack. That's the warning from director of marketing Steve Martin.
"The problem is, is it's not a level playing field and you can't compete effectively when you're paying taxes at more than twice the rate of your competitors."
Martin says Finger Lakes has asked the state racing commission for permission to reduce the number of racing dates in 2016 by 20-percent, from 155 in 2015, to 126 next year. Martin says they're trying to be proactive. The new Lago casino is expected to be approved by the state on Monday, and open next fall.
"Due to that competition and the expected impact on our revenues, we just don't see at this point, how we'd be able to maintain a positive purse account for our racing schedule as it's traditionally been in terms of length."
Martin says Lago is only 27 miles away. Less revenue means less money available for purses, so Finger Lakes requested the reduction in the number or races from the state racing commission.
"Obviously, with the gaming commission's announcement on Monday, with a license likely to be awarded, it's certainly a timely step."
Lago Casino could be approved by the state gaming commission at its meeting on Monday.
"Well, it is serious. There's several studies out there that say Lago will simply just cannibalize revenues from other facilities including Finger Lakes in western and Central New York. There's some studies that have it as high as 70%, and 50% of Finger Lakes' revenue."
Says 70-percent of Finger Lakes revenues go to pay taxes and purses. Martin says their gaming taxes are twice what Lago would pay. He hopes lawmakers can somehow level the playing field.
Is Lago a potential death knell for Finger Lakes, the largest employer in Ontario County, with 17-hundred jobs?
"I think it's important that people realize the serious impact it could have on all those jobs, when this is supposed to be a piece of legislation or a project that's supposed to increase employment and revenue throughout the state. The way it's currently set up, it just won't do that," said Martin.
