Historic expansion of gambling approved

Thursday, Oct. 25, 2001 | 10:30 a.m.

ALBANY, N.Y. -- State legislators and Gov. George Pataki are wagering that new casinos, video betting terminals and a multistate lottery will help New York state avoid an economic disaster in the wake of the World Trade Center attack.

The state Assembly gave final legislative approval early today to the largest-ever expansion of gambling in New York history.

State leaders hope to raise an additional $1 billion annually within about three years from the new gambling ventures.

In response to the state's action, Park Place Entertainment Corp. of Las Vegas today announced it anticipates breaking ground on a $500 million hotel-casino in Sullivan County, N.Y., by the end of 2002.

Park Place, in partnership with the St. Regis Mohawk Tribe, plans to build a 750-room hotel and 130,000-square-foot casino at the Catskills site, located about 100 miles northwest of New York City. Park Place's seven-year contract with the tribe calls for it to receive 30 percent of the cash flow from operations.

Park Place Senior Vice President Kim Sinatra said New York's action put the Park Place casino "on the fast track." In addition to signing a compact with the state, approvals must also be received from the Bureau of Indian Affairs and the National Indian Gaming Commission.