Michael DeMasi

Reporter- Albany Business Review

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A hard-fought provision in New York's upstate casino gambling licensing process that's intended to protect local entertainment venues could come into play if a license for a $300 million casino is approved in East Greenbush.

The developers of the proposed casino in the Rensselaer County town say it would include "multiple entertainment venues" among other attractions. A site diagram shows a building labeled "cabaret" that resembles a theater.

The number of seats in the proposed cabaret has not been determined, said Rita Cox, senior vice president of marketing and external affairs at Saratoga Casino and Raceway.

Applicants seeking a gambling license from the state must enter into agreements with live entertainment venues that could be impacted by a casino. Those agreements must cover details such as cross marketing, coordinating performance schedules, booking and ticket prices.

"We anticipate having partnerships with any local venues," Cox said.

The concern is that a casino would make it difficult for smaller arts groups to book big-name stars because a casino can afford to pay more for artists and negotiate exclusive deals prohibiting them from performing at other venues within a certain geographic radius.

A coalition of theater operators called Upstate Theaters for a Fair Game pushed for their interests to be protected in the state law that allows up to four casinos in three areas including the Capital Region.

Holly Brown, executive director of The Palace Theatre in Albany and a member of the coalition, said the provision helps protect venues such as the Palace, but the devil is in the details.

She is concerned about how the arrangement would play out.

"It's really dependent upon how these venues negotiate with these casino operators," Brown said. "There is not specific language that says you can do this, you can do that."

The owners of Saratoga Casino and Raceway, a video slot machine parlor/harness race track, want to build 'The Casino at East Greenbush,' a 100,000-square-foot facility off Thompson Hill Road with live table games such as poker and roulette, a 300-room hotel, restaurants, retail, showroom and parking.

Saratoga Casino and Raceway dropped its plans for a full-scale casino in Saratoga Springs because of strong community opposition. By shifting its focus to East Greenbush, the racino owners are going up against a competing proposal across the Hudson River on the outskirts of the city of Albany.

The Albany casino proposal does not include an entertainment venue, a detail touted by the proposed development team as an example of how the facility would not compete with downtown attractions such as the Palace, Capital Repertory Co., Times Union Center or new convention center expected to open in 2016.

DeMasi covers real estate, construction, retail and hospitality.