THE SENATE

( STATE OF NEW YORK Jë2O3 MAIN STREET

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W[LI.IASsvIL LE. NEW YORK 14221
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MICHAEL H RANZENHOFER ROOMOO9
SENATOR aISTDSR:a
ALBANY .EW YORK 12247
151a1455-3161
COM\IIflF ON COR?ORAtONS 5181 2&O%3 FAX
AIJTHORmES & COMMISS;ONS 775 CENESEE STREET
DEPUTY MAJORITY LEADER 1707 IIESTER NEW YORK I’d I
FOR ECONOMIC DEVELOPMENT C MAIL I1ANZ(NYSENATE (;Ov

March 28, 2018

Governor Andrew Cuomo

State of New York
Albany, NY 12224

Dear Governor Cuomo:

I am writing to express my concerns about reports that the del Lago Casino and Resort in
Seneca County is already seeking a bailout after only a few months of operation. I oppose any
such bailout.

The process of site selection for casino facilities, and the rapid pace at which it was
accomplished, have been of concern to me from the beginning. There were already many
successful gaming facilities located across New York State, and over saturation, particularly in
the upstate region, seemed a likely possibility. I previously requested that the location of the
del Lago Casino be reconsidered, but the site moved ahead, based upon rosy predictions of
increased economic activity and tourism, and the promises of revenue to the state.

Now we learn that the del Lago Casino is struggling, with actual revenue far below what they
had predicted. The promises that were made by the Casino and the state to our residents are
unmet, a reflection of over optimism, bad planning, bad siting and bad decision-making. Having
already received generous economic incentives and local tax breaks, they now seek even more
relief. The Casino is paying approximately $43 million in “gaming taxes” annually, far below the
original projections they made to obtain approval of their application. Now I hear that they
seek an additional $14 million in tax breaks, almost a third of the already lower than expected
amount they are currently paying. They have received many benefits from state and loEal
governments, and enough is enough.

I believe that bailing out this casino with people’s hard-earned dollars is simply inappropriate
and wrong. Del Lago did its own due diligence, and made representations and promises, and

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should live with these promises. Their problems are of their own making, and they are already
failing to fulfill the promises they made to the State of New York and surrounding local
communities.

On the other hand, the placement of the del Lago Casino has caused great harm to other racing
and gaming facilities in the surrounding area, who have, through no fault of their own, suffered
from reduced revenue as a result of the opening of the del Lago Casino. These gaming facilities,
including specifically Finger Lakes Racing and Gaming and Batavia Racing and Gaming, long time
fixtures and contributors to their communities, are the victims of a poorly thought out plan that
put del Lago in their midst to cannibalize their customer base and threaten their continued
viability.

I believe that there should be no bail out of del Lago Casino. They have only been open a short
time, certainly not long enough to predict their eventual business activity. They did their
research, made contractual promises with the state in order to obtain the right to operate their
casino, and already are not living up to the promises they made.

Help, however, should be afforded to the existing gaming facilities that have been damaged,
through no fault of their own, by the decision to place the del Lago Casino where it never
should have been permitted.

Thank you for your consideration of this matter.

Very truly yours,

MICHAEL H. RANZ H
State Senator

MHR/mrh

CC: Robert Mujica, New York State Division of Budget