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Good answer: second casino in the Falls

By Daniel Michaels, May 20th 2005
In the context of casinos, the phrases "all of the benefits" and "none of the risk" wouldn't even be found in one of those ads trying to lure unsuspecting bettors.
But the City of Buffalo could come as close as possible to that fiscal nirvana if it stops gambling with the rent money and puts its chips in the only place that makes sense: on another casino in Niagara Falls.

County Executive Joel A. Giambra pumped new life into that idea when he nixed the county-owned Buffalo Convention Center as a site for a second Seneca Nation gambling hall. Instead, he suggested, why not build another one in Niagara Falls and share the revenue between the two areas.

Why not, indeed? Let us recap the reasons that makes sense:

• The only reason to build any U.S. casino is to compete with casinos in Niagara Falls, Ont. That being the case, any casinos should be where the foreign competition is - in Niagara Falls. Duh.

• Having casinos in both U.S. cities means splitting the U.S. market while doubling associated costs for things like police instead of taking advantage of proximity to keep those costs low.

• Multiple casinos should be sited to build critical mass - as in Detroit, where all three are within a chip's throw of one another - so that they feed off the energy of one another. Clustering them could pull in more tourists, who could then be enticed to Buffalo and all its offerings, Giambra noted.

And we shouldn't forget one of the most compelling reasons of all for building a second casino in the Falls instead of Buffalo: Buffalonians don't want it. Sunday's Buffalo News poll showing that 63 percent of city residents oppose a casino here should speak loudly to city leaders.

Putting both casinos in the Falls would let Buffalo focus on what it can sell best - major-league sports and cultural attractions like the Darwin Martin House and the Michigan Street Baptist Church area - instead of trying to market a split personality with gambling as the evil half.

Of course, most of those reasons also applied when Buffalo and Niagara Falls were competing for the first Seneca Nation casino. In fact, when I suggested a revenue- and job-sharing plan back then, Falls Mayor Irene J. Elia called the idea "interesting."

She's still interested. So is Niagara County Legislature Majority Leader Dennis Virtuoso, who's said he's willing to talk about revenue-sharing. Job-sharing should be part of the talks, too, if Buffalo is going to drop its bid to compete with the Falls.

But first we have to get there. Obstacle No. 1 is the Senecas, who insist they want a casino here and who seem to be in the driver's seat, since only Native Americans can open a casino quickly. But they can't open another one without more government approvals. That shifts the power back to local officials.

Which brings us to obstacle No. 2: Mayor Anthony M. Masiello still wants a casino in Buffalo, saying the city needs revenue, jobs and development.

He's right about the needs. But an isolated, self-contained casino will have few of the spinoff benefits the mayor is counting on to revive downtown.

As for money, he says sharing the local portion of casino spoils with the Falls would "really water down the ability of this city and school district to generate new revenue for ourselves."

But that's being shortsighted and not counting the downside. The revenue and jobs the city would get would come at no cost. And the spinoff tourism the city could reap if Giambra is right about the clustering effect - and he probably is - could far outweigh any benefits from an isolated Buffalo casino.

"We need to focus on what makes sense for the region . . . (and stop) competing as opposed to collaborating," Giambra said.

He's right. The county executive's push for a cooperative venture reminds me of when broadcasters interrupt their usual programming with the warning that "This is a test."

Buffalo Niagara has to interrupt its usual programming, which Giambra notes already consists of dual convention bureaus and dual community colleges. Now the region is eyeing dueling casinos. That's foolish.

This is a test of whether this region can really think regionally and grow a bigger pie, or whether it's doomed to keep fighting over the same small scraps.


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