The good results of new upstate New York casinos proposed by Gov. Andrew Cuomo would depend heavily upon them drawing gamblers from other locations in an currently crowded Northeast marketplace, analysts say.

Cuomo, in his State of the State address Wednesday, proposed that an expansion of gambling in New York start with up to 3 casinos upstate, as opposed for the extremely lucrative New York City marketplace. Cuomo mentioned you can find 39 casinos in adjacent states and Canada, numerous that draw dollars from downstate gamblers.

“A main challenge for us – in addition to a big opportunity for us – is always to get that targeted traffic from New York City to upstate New York,” Cuomo said.

New York already has 5 Indian casinos and nine racinos, which give video slots but no table games. The Legislature is expected to think about final passage this year of an amendment for the state constitution that would allow up to seven Las Vegas-style casinos beyond Indian land. If authorized by lawmakers, voters could make a final decision in November.

Cuomo argues that upstate casinos could possibly be a magnet to downstate gamblers who presently visit casinos in Atlantic City or to Foxwoods Resort Casino and Mohegan Sun casinos in Connecticut. The casinos would assistance revitalize the upstate economy, he mentioned.

New York will be essentially be “keeping up using the Joneses” by following the lead of its neighbors in a largely saturated industry, said Keith Foley, an analyst and senior vice president for Moody’s Investors Service. He stated the viability of a new casino is determined by expanding the marketplace and capturing clients from elsewhere.

“You virtually have no choice. It really is nearly foolish not to. But it really is going to come at the expense of an individual else at this point,” Foley stated.

While casinos in Pennsylvania and the Resorts Planet Casino New York City in Queens have accomplished well recently, Foxwoods and Mohegan Sun have been slumping. Numbers out from New Jersey on Thursday show Atlantic City’s casinos endured a sixth straight year of plunging revenues in 2012.

Analysts say place could be a major factor within the achievement of a brand new upstate casino considering that it would need to have to be close adequate to significant populations. Cuomo left the place query open. But he mentioned Thursday that casino operators could not go to locations exactly where Indian tribes have exclusivity, which may possibly rule out the Rochester and Buffalo areas. And he said the Catskills – tiny far more than an hour from New York City – “are an clear location.”

“It’s a sensible proposition that a well-run casino within the Catskills would, in truth, siphon off some enterprise from Connecticut and Atlantic City,” mentioned Kent Gardner, chief economist with the Center for Governmental Research in Rochester.

Cuomo said New York City could get a casino within the second phase of his proposal. But he mentioned the state will get far better offers from upstate bidders if New York City is not an initial alternative. Postponing a city casino proposal would also push the situation beyond this year’s mayoral race in New York City, which could complicate passage in the constitutional amendment.

Cuomo’s proposal received a chilly reception from potential competitors in New York’s gambling sector.

Gary Greenberg, a minority owner of Vernon Downs Hotel and Casino in central New York, mentioned he didn’t see any benefit to New York racinos. He mentioned converting existing racinos to casinos would offer a bigger economic increase.

As well as the leader with the Oneida Indians, who opened the state’s first casino in central New York in 1993, mentioned you can find unanswered queries remaining about Cuomo’s proposal.

“It is more significant than ever that local communities be provided assurances that they may have a voice within this approach and that the state won’t impose a gaming framework which will burden community resources and conflict with existing financial development,” said Oneida Nation Representative Ray Halbritter.