NICHOLS -- The future viability of Tioga Downs and Vernon Downs is "solid" after a tax relief agreement that would allow the facilities to give less of their revenues to the state makes it way through the legislative process, operators of the racetrack-based gaming centers said Tuesday.
Jeff Gural, a principal of the racinos, conducted a "handshake agreement" with Assemblyman J. Gary Pretlow, D-Mt. Vernon, to ensure that the Assembly would vote on the deal in a special session next week or during regular session in the fall, said Douglas Tudman, regional director of marketing for Tioga Downs and Vernon Downs.
"It flew through the Senate" and passed there, Tudman said.
The agreement would allow the eight gaming and racetrack facilities across the state to keep a higher percentage of revenues (42 percent versus what is now about 30 percent for facility management), provide money for capital improvements and increase the amount of money available for marketing.
Construction planned at Tioga Downs and Vernon Downs could include parking garages, a hotel at Tioga Downs and an events center at Vernon Downs, operators said.
"This has been a very stressful time for all our associates. Their jobs were on the line," said Robert Farinella, president and general manager of American Racing & Entertainment, parent company of the Nichols and Vernon racinos. "With the assurance of new legislation there is a renewed spirit among all of us."
Tioga Downs has about 350 employees, Tudman said. Vernon Downs employs about 300 people.
Gural has said he knew going in the business environment for racinos is tough but forged ahead because Tioga Downs is a worthwhile project.
