Don’t discount gambling's positive economic impact on the Finger Lakes

Tourism is big business in the Finger Lakes.

In 2021 alone, visitors spent more than $3.2 billion in the region across a diverse range of sectors, generating millions of dollars in tax revenue for local governments and supporting close to 47,000 jobs, according to an independent report prepared for Empire State Development.

Perhaps nowhere is the benefit of the industry more evident than in Seneca County, which in 2018 was the most visited of the region’s 14 counties, a comprehensive study commissioned by the Finger Lakes Alliance found.

Local officials, in conjunction with a wide range of stakeholders, have worked hard to make a wide range of attractions and amenities available in Seneca County, with an eye toward maximizing and growing our tourism dollars. It is critical that we preserve and protect these investments so we can continue to provide the services and family-sustaining jobs on which our residents rely and ensure our economic prosperity for generations to come.

With this in mind, I was troubled by a recent report from the state Comptroller’s office, which questioned the viability of contributions to localities from upstate casinos — including the-Seneca County-based del Lago Resort & Casino.

While the report laid out tax revenue numbers in black and white, it failed to sufficiently account for the multiplying effect that del Lago has had on the local economy — particularly in the Town of Tyre — since it opened its doors in February 2017, and the far-reaching positive impacts that has had on the surrounding communities.

The property tax levy in Tyre has dropped dramatically since del Lago opened, thanks to the significant tax contributions the town has reaped as a direct result of its presence. As the comptroller’s report does note, after the casino opened in 2017, tax rates dropped by 42.1%, then by another 64.2% from 2017 to 2018.

The COVID-19 crisis hit the local tourism industry hard, with spending dropping significantly as restaurants, hotels, bars, historic sites, and del Lago forced to close due to state mandates implemented to try to curb the virus’ spread. The town had to increase taxes by 243% to make up for lost gaming tax revenue.

But between 2020 and 2021, visitor spending increased by 62%, ESD found, reaching 98% of pre-pandemic levels. Specifically, del Lago’s return has thankfully brought much-needed property tax relief quickly. The levy returned to pre-pandemic levels in 2022 and then dropped by another 87.1% in 2023.

Even still, an analysis purely of tax revenues ignores the spinoff benefits del Lago provides. A 2020 economic and fiscal analysis impact study conducted for del Lago by Camoin Associates found the casino’s economic impact in Seneca County alone included nearly $238 million of new sales of goods and services, 1,560 new jobs, and over $58 million in new earnings.

Of the 1,560 net new jobs in Seneca County, 1,179 family-sustaining, union positions are directly employed by del Lago. The economic impact that these employees have on local businesses cannot be understated.

But casinos also spur a variety of additional business growth, creating not just new jobs, but new levels of economic mobility. In Seneca County, the average earnings across all sectors increased by more than 41% between 2015 and 2019, Camoin Associates found.

Visitors need places to gas up, to grab a meal along their way, and to set as additional destinations along their travels. And the casinos themselves need local businesses that can support their operations.

Drawing a connection to the convenience stores and gas stations along Routes 414 and 318 in Tyre that have been built since del Lago opened are easy. But don’t discount the strategic placement of businesses like the Chrysler Dodge Jeep & Ram dealership along Route 414 in the town.

What’s more, del Lago has made important local business partnerships that help create a robust economy, whether it’s offering award-winning products from the nearby Montezuma Winery or utilizing Wilson Press & Mail House in Seneca Falls for printing services.

Just as we can’t ignore these positives that help add context to the conversation, there are clear warning signs we must heed.

Casino market saturation, as the comptroller notes, is a real threat. It could eat into not just local business, but the benefits local businesses bring to the greater community. Being only months removed from a feverish debate around the siting of a new casino in Rochester, it’s clear that this is something we must guard against. Any final compact agreement with the Seneca Nation must be fair and equitable for all.

New York’s post-pandemic economic recovery has been slower than in other states. We need healthy and thriving local businesses more than ever before. Losing any one of our economic calling cards — especially one that provides direct financial and spinoff benefits like del Lago — would be a massive blow to our community, and one that this region certainly cannot afford.

Elizabeth L. Partee is Supervisor of the Town of Tyre.

This article originally appeared on NorthJersey.com: Finger Lakes NY gambling: Positive economic impacts abound