The site, in Orange County, is a short distance from Woodbury Common Premium Outlets, a mall that attracts more than 11 million visitors a year, and offers critical highway and public transit connections to New York City and millions of potential customers. . . . Ms. Blackhurst is still working out the details of the proposal, since the company signed a letter of intent with the developer who controls the property, David Flaum, just three days ago. Mr. Flaum would lease the property to Caesars and participate in developing the complex.
Caesars, which submitted its $1 million application fee on Tuesday, is one of at least four companies vying for a casino license in Orange County. A total of 16 groups are expected to compete for the four licenses. The casinos will be allowed in three regions: the Catskills and the Hudson Valley, which includes Orange, Sullivan and Ulster Counties; the Saratoga-Albany region; and a narrow strip in western New York, running from Binghamton north to the Canadian border." ny times
However, McKee points out that there exists the possibility of joint ventures.
I'm not surprised by this move by Caesar's, who for the last many years has been known for buying up all the properties it can and worrying about them actually being profitable later, it's true that they are essentially competing with themselves (not an unusual position for them) because the NY market will pull market share from the NJ market, but what choice do they have? If we assume that the NJ casinos are going to lose that market share anyway, whatever percentage it be, Caesar's only has two options:
A.) To passively sit back and watch the market share disappear and their NJ interests lose revenue, helplessly.
B.) To attempt to open a casino in NY and HOPE that they can pull in enough revenues for the casino to be profitable.
Despite the debt that they will almost certainly incur in this venture, I really don't see what choice they have but to make the effort.
If those applicants included the require $1 million fee, New York State may be copying colleges that have turned application fees into profit centers.Quote: Mission146
If I'm not mistaken, according to the Las Vegas Advisor David McKee's Stiffs and Georges blog...which is absolutely BAR NONE the most credible and informed source of up-to-date casino news in my opinion...there were actually a total of 22 applicants iirc,
As for competition, North Jersey communities are already shouting that CZR has been the major stumbling block in expanding casinos outside Atlantic City. CZR's closing of the Atlantic Club is part of the unusual business model.