Plans for a Casino in the Catskills are Abandoned as Downstate New York Rival Gains Momentum
When the New York casino industry launched, the Catskills Mountains were poised to be a top contender among upland locations to domicile a resort. In the past, the area was a bustling tourist hub, and casinos were seen as a means to revive this former vigor. However, with the potential for casinos in Orange or Dutchess County, closer to New York City, there was a likelihood that the state government would impose high minimum investments in those areas. This would make the Catskills an alluring option.
However, events took an unexpected turn. Although Orange County's minimum investments were higher, they still added up to less than $500 million in total. This amount was insignificant given the level of investment needed to establish a casino resort. Additionally, with the government likely to approve just two casinos in the region, if one appeared in Orange County, it would become challenging for another to flourish in the Catskills. Consequently, interest in building in the mountains wanes.
The Termination of Trading Cove's Advent
The plan for a resort in Thompson, Sullivan County, was recently abandoned. The developers, Trading Cove, cited the probable competition from Orange County as the major factor in their decision.
According to Trading Cove and the Stockbridge-Munsee Community's statement, "We have concluded, after careful deliberation, that the likelihood of a destination resort with gaming in Orange County so diminishes the market in Sullivan County that constructing and maintaining a first-class resort in Sullivan is not financially viable for us."
The statement concluded, "Sullivan County deserves a premium destination resort. Since we do not believe we can provide that quality under the current market conditions, it is with deep remorse that Trading Cove and the Stockbridge-Munsee will not apply for a gaming license."
Interestingly, Trading Cove had already purchased the land for the resort – a 440-acre property – and had paid a $1 million application fee to the state of New York. Nonetheless, by quitting before the end of June, they are eligible to reclaim a significant part (or all) of the fee. The fate of the property will be discussed with the town and county, considering options to repurpose the land.
Other Developers Maintain their Ambitions
Trading Cove's venture was merely one of several in the pipeline for Sullivan County. In total, there are four other applicants still vying for the Sullivan County bid. There's also a single bidder from the neighboring Ulster County. Despite this, the recent focus on Orange County has overshadowed the Catskills, where major developers such as Caesars and Genting are pushing for resorts.
Although the region could potentially accommodate several casinos, the central issue revolves around accessibility. Orange County is a far more convenient locale for the millions of travelers arriving from New York City and the extended metropolitan area. On the contrary, the trip to the Catskills would be lengthsier and less appealing once an establishment takes root in the south.
Casino growth was given a green light by New York voters late last year. The legislation authorizes the installation of up to four casinos upstate, with the possibility of satellite venues in and around New York City looming for future development.
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