Niagara Falls casino thrives but neighbors haven’t seen benefits

Bob Matuszak

Tuesday, Dec. 30, 2003 | 11:13 a.m.

NIAGARA FALLS, N.Y. -- In the course of a year, the Seneca Niagara Casino has created jobs and a few millionaires.

It has also produced headaches and heartbreaks.

The casino, which transformed the Niagara Falls convention center into a gambling haven, turns a year old Wednesday, with two events scheduled to celebrate the birthday.

"It's been busy, but very enjoyable," said Mickey Brown, who runs the casino. "I'm pleased with the strides we've made and continued development."

The casino has accomplished many of the goals operators set for it.

"We got off to a good start and added some things since opening day," Brown said. Since the New Year's Even opening, the Senecas have added a nonsmoking area that contains 300 slot machines and 12 table games and opened an exclusive part of the casino to high-limit gaming.

The casino will hand over a check to New York state for roughly $40 million, the state's share of slot machine revenues. The state will give 18 percent of those funds to the Niagara Falls Casino Community Accommodation and Improvement Commission, a five-member panel responsible for maximizing benefits to the city from the proceeds.

Not all is positive.

The casino has not jump-started construction on new buildings, hotels or restaurants around the area.

"We lack the ingredients to start this engine," said John Prozeralik, who owns the Days Inn hotel just down the street from the casino. "We cannot build a stool with just one leg. The casino can't do everything."

Traffic has increased slightly but the city still hasn't shown a vibrance that some thought the casino would bring. There's no booming skyline like the one visible across the border in Niagara Falls, Ontario, where a casino is credited for an economic reversal.

"There's really no difference," said Savana Crapsi, who works at the Rodeway Inn a few blocks from the Seneca Niagara Casino. "The casino is the main attraction but I think there could have been more -- a lot more."

"That's not my watch," Brown countered. "I build and operate casino hotels. That's up to the private sector to join in."

Some hotel owners would like to develop more of a partnership with the casino but say they haven't had much luck.

Brown disagrees.

"We try and complement them," he said. "If I bring 10 to 15,000 thousand people into downtown Niagara Falls, some of them need a place to stay near the casino."

The Senecas have also reached out to their neighbors, striking a deal with a Niagara County agency to hire people with developmental disabilities.

Though the hotels are staying busy, they say the customer has changed. Before the casino, guests would spend money at the hotel restaurants, gift shops and souvenir stands. Now, hoteliers say, those customers are being weeded out by the gambler, who pumps cash into the casino.

"That guy comes into town, never buys anything, and then leaves," Prozeralik said.

The thought of winning it big has brought people to Niagara Falls from nearby cities like Buffalo and Rochester when they normally wouldn't make the trek.

"It gives you something to do here," said Lori Seamans of Buffalo.

In October, the casino sent two patrons home extremely happy. An Ohio woman won more than $1 million after depositing $20 worth of nickels into a slot machine and a Buffalo patron won close to $800,000 on a nickel slot machine.

In May, a southern tier resident won a jackpot worth $1.1 million.

An average of 12,000 people a day come through the casino's doors during the week, a number that jumps to nearly 20,000 a day on weekends, operators said.

The Senecas are scheduled to start construction in April on a new spa and hotel next to the casino that will feature approximately 600 rooms, three dining areas, conference and meeting space and additional casino space.

Also in April, a parking garage next to the casino will be complete, with 2,400 spaces available for visitors.

"I'm very happy," Brown said. "(The Casino) did extremely well in its first year and will do better next year. The following year with the hotel it will do much better. It's been a successful business."