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The Odds Against

In the Seneca Gaming Corporation’s application with the United States Patent Office to have the term “Buffalo Creek Casino” trademarked, under the “GOODS AND/OR SERVICES” heading it lists:

  • retail gift shop
  • casino services
  • movie theaters
  • resort hotel services
  • restaurant and bar services
  • providing convention facilities

The SGC has defined any and all of these hospitality services within the trademarked entity “Buffalo Creek Casino.” It is safe to assume that we will see food and beverage outlets in place from day one of the opening of the casino, with many, if not all, of the other services to follow.

Most discussions opposing the proposed casino have addressed the issue from a somewhat holistic perspective, detailing the wide range of negative impacts of the casino and systematically refuting the alleged positive impacts. In an opinion piece published in the Buffalo News on April 26, I detailed the possible economic impact on existing food service operators of “human capital” chasing higher wages at the casino. But that article was, of necessity, highly focused on that one issue.

Some other recent articles have alluded to the fact that the proposed casino would have a negative economic impact on existing restaurants and taverns in Western New York. In fact, if you had e-mailed County Executive Joel Giambra’s office supporting the County’s lawsuit against the casino, you would have received a return e-mail, a paragraph of which refers to this inevitable and quite negative outcome:

“But all our investment, and the investments of many more people in the private sector, are put at risk by a tax-exempt casino-restaurant-retail complex. Tax-paying businesses will face an impossible disadvantage if this tax-exempt casino-restaurant-retail complex ever starts operation. Stealing restaurant and retail business from existing businesses makes no sense. It’s bad for business.”

Curiously enough, there has been little in the way of a detailed analysis that both qualitatively and quantitatively explores the competitive advantages that the casino’s food and beverage outlets will have over the existing and future food and beverage establishments in Western New York.

Why is it important to identify and quantify these unfair competitive advantages? Local “free market” advocates, casino apologists, say “Compete or get out” to local merchants who fear that the casino will drive them out of business. This attitude is either based upon ignorance of the true economic realities which exist, or are based upon total disdain for the small entrepreneurs who own and operate these businesses and may work six or seven days and upwards of 80 hours per week trying to make a go of it.

The local food and beverage industry has not launched a unified response to this threat. The Western New York chapter of the New York State Restaurant Association has not taken a public stance on the proposed casino. Because they are a membership representing an incredibly diverse mixture of food and beverage establishments, a unified response that would please all members is practically impossible. (The state chapter went on record as supporting the recently implemented smoking ban, for example, which resulted in many members who resisted the ban resigning from the organization.) Yet when you discuss the issue individually in private, as I have done with many operators, they show great concern about their inability to find tactical and strategic responses to this threat to their livelihood.

At stake here is the continued viability of a large portion of the restaurant industry—and not just those situated near the proposed casino.

BASIS FOR THE COMPETITIVE ADVANTAGE

As a sovereign nation, the Senecas have their own set of laws that govern, among other things, how they do business. The Seneca Nation is in no way compelled to follow other states’ laws unless they elect to comply.

For years the Indian tribes in New York State have sold gasoline and cigarettes on their reservations substantially cheaper than the same products sold on non-Indian lands. The basis for these price differences is that the Indians are a sovereign nation exempt from the laws requiring non-Indian businesses to pay taxes to the state. On heavily taxed, non-differentiated commodities such as cigarettes and gasoline, this amounts to a huge competitive advantage for the Indian tribes over those who must comply with the tax laws.

If taxes were the only issue here, local restaurateurs could probably still stay competitive with the casino—food quality, appearance and ambiance can be used to overcome price disadvantages. But when looking at the competitive advantages that Indian-run casinos, and in particular their food and beverage outlets, have over other food and beverage establishments, we find a wide-ranging set of costly legal and operational requirements that only apply to non-Indian businesses.

The more urbanized the setting of a casino, the greater the threat that exists to other, non-casino businesses. Unlike economically barren areas where casinos were established (e.g. 1940s-1950s Las Vegas), urban areas are centers of much existing economic activity. Because of this, Indian-owned casinos in these urban areas have an even greater competitive advantage because they merely need to shift existing demand for leisure, recreational and hospitality services from competitor’s operations to their casino—as opposed to having to accomplish the more difficult (and expensive) chore of generating additional demand to the area. Here is where they are able to use their competitive advantages to “leverage” business away from other establishments and become a threat to existing food and beverage operators. Through utilizing such unique advantages/enticements as legalized gambling, liquor available 24 hours a day, free drinks, legalized smoking and cheap or free food and entertainment subsidized by the casino’s gambling take, the casino can steal hard-won market share from these overmatched competitors.

Nothing illustrates this better than the Senecas’ recent disclosure in their Security and Exchange Commission filing that their new hotel built in Niagara Falls provided 80 percent of all their rooms sold in the first quarter of 2006 to customers free of any room rate charges. This is a 604-room hotel, which the disclosure claims sold 70 percent of its available rooms in that quarter. If we assume that a luxury hotel in Niagara Falls could get an average daily room rate (ADR) of $100 per room, then the Senecas were able to provide accommodations valued at $3,115,800 for free. Extrapolating for a one-year period, this equals $12,463,200 in free accommodations.

Assuming that the typical well-managed hotel can run a 15-percent profit margin, then the hotel gave up $1,869,480 in yearly profits from room sales. These are conservative figures in that this is a new hotel and the figures are for the traditionally slow winter period. Contrast this to the fact that the typical hotel in this country must sell approximately 55 percent of all its rooms each year before it makes even $1 of profit. Based on construction costs, the hotel is currently a $200 million dollar “loss leader” for the gaming activities in the adjoining casino.

THE COST OF REGULATION

An employer operating in New York State must abide by certain laws and regulations, all of which have a cost. These laws and regulations do not apply to the Seneca-run casinos or their associated facilities. The Senecas have their own laws that they enforce in their own ways and interpret in their own courts. They will never have to explain their actions in any state court, because state courts, with few exceptions, have no jurisdiction over the Indian tribes.

Title IX of the 1964 Civil Rights Act

This is the section of the federal Civil Rights Act that applies to discriminatory actions in the work environment. The suggestion here is not that the Indians will discriminate with respect to conditions of employment—on the contrary, a nation of people with such a history of being discriminated against should be extraordinarily sensitive to this issue—but that employees have no recourse if they feel that they are being discriminated against. For an employer to be found guilty of discrimination, it is not necessary to prove that they did it intentionally—in fact most discrimination in this day and age is not intentional. One must merely prove that business policies had an adverse impact on a group of protected individuals.

Also, whereas non-Indian employers can be sued by the National Labor Relations Board on behalf of a complainant and be forced to pay damages, this is not an option for those who feel that they were discriminated against by Indian employers.

The Minimum Wage Order

The food and beverage industry is considered so unique that operators must comply with a series of regulations compiled in a separate body of requirements. These collective regulations are known as “The Minimum Wage Order for the Restaurant Industry.” They exist in addition to applicable federal laws. This wage order totals 13 pages and deals with far more than stating a minimum wage for workers. Given that the Senecas are not required to abide by this document, which is binding on every other restaurant and bar in Western New York, a partial listing of the contents of the wage order may be instructive:

Minimum Wage—Though those classified as “Foodservice Workers” (i.e., waiters and waitresses for instance) must make at least the state minimum wage of $6.75 an hour, their hourly base wage can legally be as little as $4.35 per hour. In order for the employer to pay this lesser amount, the total of tips received must bring the service worker up to at an average wage of $6.75 per hour. If tips don’t bring the wage to the minimum level the employer must pay the difference per hour. As of January 1, 2007 these figures go up to $7.15 and $4.60 per hour respectively. If their history is any indication, the Senecas will probably pay a very competitive wage, but can pay whatever wage they wish and modify it at their discretion.

Call In Pay—If an employee is scheduled to work, and reports for their shift and for whatever reason, perhaps a lack of customers in the restaurant, is sent home after one hour, by state law they must be paid for a minimum of three hours of work at the prevailing minimum wage. This law exists because employers, unable to accurately predict demand, would tend to overstaff each day and then merely send excess workers home with perhaps not enough in wages to cover the cost of gas for the trip. If the casino chooses to not comply with this regulation they could overstaff and then send extra personnel home without having to pay the three hours of wages. This will assure optimal staffing at minimal costs. With an estimated 1,000 new jobs created, the total payroll savings to the casino is immense if they chose to ignore this regulation.

Exempt Employee—Your employer promotes you to a management position and makes you an “exempt” worker, which means you are on salary and are exempt from being paid for working overtime. Therefore they can legally require you to work in excess of the 40 hours a week threshold and, unlike a “non-exempt” employee, you will not be paid time-and-a-half. Because employers in the restaurant industry have a long history of abusing this by “promoting” someone to a “manager” with no real managerial responsibilities in order to work them over 40 hours and not have to pay them overtime, the state has requirements for someone to be classified as “exempt.”

Other Expenses—The Minimum Wage Order also covers the employer’s responsibility for purchasing (or reimbursing the employee) for a required uniform and an allowance for the employee to get it laundered. The employer also faces limits of how much they can deduct from the employers pay as a stipend to cover meals provided by the employer.

Payroll Deductions—Employers are not allowed to deduct from the employees pay funds to cover items that the employee accidentally destroys (e.g. a waiter drops a tray and everything breaks). They are also not allowed to deduct for shortages in an employee’s “bank” (caused by giving the wrong change, being short-changed by the customer or even the presumption of employee theft). So non-Indian employers must pay for these things out of their profits and not out of employee paychecks.

Workers Compensation and Unemployment Insurance

Though those working for the casino can, if qualified, receive unemployment compensation and workers compensation payments from the state, the SGC is not required to pay into either fund. Therefore the money paid into the respective funds by non-Indian employers will be used to compensate those casino workers separated from employment and those injured on the job. Irrespective if this arrangement is fair, it creates costs for non-Indian employers that the Indians do not have to bear.

Sexual Harassment

Compared to other industries, the hospitality industry generates some of the highest incidences of sexual harassment claims. Reasons given range from the presence of alcohol in the work environment, to the fact that the industry tends to hire nice looking employees, and, in the case of female cocktail waitresses, dresses them in revealing outfits.

Casinos can interpret federal laws on sexual harassment in any manner that they wish and generate their own thresholds for disciplining or terminating violators—or ignore the issue entirely. And, unlike under federal law, the accuser cannot sue the Seneca Nation for lost wages or psychological damages in federal court.

Sales Tax Exemption

As most people are aware, the casino, being on sovereign land, is exempt from taxation. Beyond the issue of taking taxable land off of the property tax rolls, the lack of a sales tax provides another competitive advantage for the casino.

Imagine that a party of four dines in a non-casino restaurant in Erie County and the bill comes to $200 without tax. Once the current county/state tax rate of 8.75 percent is added, the bill comes to $217.50. Assuming that you could get the same quality meal at the casino, this advantage is equivalent to handing each table of four a gift certificate for $17.50 each time they enter the restaurant.

Imagine if the casino charges a total of $217.50 for the above-mentioned meal. The $17.50 that the non-casino restaurant must pass on to the state/county can now be used by the casino to subsidize the advertising and promotion of the casino. Coincidentally, a typical restaurant may spend, at the high end, approximately 8.75 percent of its revenue on advertising and promotion. So with the ability to “overprice” a product and still charge the customer the same as a non-casino, the casino can essentially subsidize its food and beverage advertising budget with the sales tax savings, through which they end up attracting business away from taxable enterprises.

Property Tax Exemption

The typical full-service restaurant in Buffalo pays in the area of $8,000 for property related taxes, licenses and permits. For this they receive city services such as police and fire services and specific operating privileges. A casino’s restaurants are required to pay nothing to receive exactly the same services and privileges.

The typical 50-seat dinner restaurant in Buffalo, with an annual average seat turnover rate of 1.2 times, operating six days a week, with an average check of $25 per customer and a 15-percent profit margin before property taxes and income taxes, will operate until February 11 solely as a revenue source for the city/county/state. It takes that long for the profits generated since January 1 to cover the property taxes and fees owed for the year. It is only at this point that the owner gets to “keep” their profits minus income taxes.

On the other hand, an Indian-run casino’s restaurant operates in its own economic interests all year long. So the casino’s food and beverage operations have a 42-day head start in generating profits over the typical large competing restaurant in the Buffalo area.

To put this into perspective, if this were a 100-meter dash between two equals, one runner would be spotting the other a 12-yard lead. It is not difficult to predict who the winner will always be.

Health Permits and Inspections

The casino is not required to acquire any county health department permits and is not required to submit to any health department inspections of the food preparation and storage areas. The Seneca-Niagara Casino does not allow the Niagara County Health Department to inspect the premises, so we can assume that the same will hold true with the Erie County Health department. So again you have a cost savings and, more critically, the public must expect in good faith that all food storage, handling and preparation activities are being done in such a way as to assure the safety and health of the public.

In any non-Indian run establishment, violations of the health codes would lead to warnings or fines and follow-up inspections. In addition, violations would be public knowledge so the consumer can judge if they wish to patronize the out-of-compliance establishments.

Other Required Permits and Licenses

When businesses in the area complain of the web of government regulations that they must comply with, they know of what they speak. The following is a list of permits that local restaurants and bars must apply for, pay for and receive before they can legally offer any of the following:

• Amusement Fee—You must pay this if you wish to operate any coin-operated game.

• Dancing License—For any operation that plays music and has an area reserved for dancing which is above a certain square footage.

• Music License— For any music played in a restaurant or bar.

• Patio License —You must pay a fee to “rent space” for any patio that encroaches on public land. The larger the patio, the more you pay.

• Vending License—Probably a big advantage in the casino where smoking is legal and a vending license is not required, but non-casino operators must pay a fee for any vending machines on the premises.

• Building Permits—Must be filed for and acquired before any construction/renovation takes place on the premises.

• Liquor license—Difficult to acquire and expensive, and if revoked will generally put you out of business because the profit margin on liquor is generally twice that on food. Historically, Indian-run casinos without liquor licenses can survive on gambling profits alone and the ability to allow patrons to bring their own liquor to the casino. A restaurant not subsidized by gambling cannot survive for long without liquor revenue.

• Restaurant License—Must be renewed each year.

With the exception of the liquor license, once again the casino is not required to file for, pay for, receive or renew any of these permits. The estimated annual cost to an establishment to acquire and renew these permits/licenses is probably $500 to $1,000 per year depending on the size and location of the restaurant.

Liquor Licenses and Liability

Like any establishment in New York State, the SGC must apply for and receive a liquor license in order to serve liquor in the food and beverage outlets at the casino. The SGC does not really need a liquor license in order to serve liquor; they need it to be able to receive deliveries of the liquor from the licensed distributors in the state. But even here the casino has advantages. Being a 24-hour operation, the casino will be permitted to serve liquor 24 hours a day—a definite advantage when seeking out those customers who are looking for an early start to their drinking and gambling activities. In addition, the Senecas cannot be sued in New York State Court. So if a drunken patron exits the casino at 7am and broadsides a school bus, any legal claims against the casino for serving this patron irresponsibly would probably end up in the Seneca Nation Court and not in a New York State Court. The agreement with the state that the Senecas have to set aside funds for liability claims does not require them to pay out punitive damages—a potential substantial savings.

Freedom from the restrictions that non-native businesses must adhere to in order to acquire a liquor license offers the casino synergistic advantages. While sitting in the casino at 6am, drinking your free Bloody Mary, you may also be chain-smoking your favorite source of tobacco, which you purchased tax-free. Nowhere else in New York State, outside of an Indian-run casino, can you legally be doing these three things simultaneously.

The Tradeoffs

The SGC has a unique opportunity to create a business environment that non-Indian operators in the hospitality industry can only dream about. A world of no taxes, little red tape, cost advantages based upon size and volume, cost advantages irrespective of size and volume, little or no accountability to state and federal regulators, a product which is guaranteed a substantial profit (gambling) and a product (food and beverage) which is difficult to make a profit on, even under the best of times—which they can afford to give away for free.

A casino located in an urban area generates a series of economic tradeoffs. So the question we must ponder is: If the casino becomes a reality, what are we as residents willing to accept in return for free and or cheap food and beverage served at the casino for the benefit of a small percentage of the total dining public who will avail themselves of these bargains? How many existing restaurants put out of business will we accept? How many will it weaken financially to the point that the owner will close and find a more productive investment for his capital? How many current employees will this put out of a job? How many of these generally low-skilled workers will even find another job? How many new restaurants will open in the area knowing full well that they have a better chance of survival elsewhere and how many potential new jobs will not be created because of this?

An even bigger question to ponder is how could our political leaders be so irresponsible as to place we the citizens in such a position where we must even ponder these questions, and why, in the face of all these facts, did they allow the process to continue? Could it be that they were in such a hurry to move this forward that they failed to look at these issues? If so, then perhaps we need to ponder what were the benefits to those politicians supporting this spectacularly flawed idea.

Steve Siegel is an associate professor of hospitality management at Niagara University.

To respond to this article, send e-mail to editorial@artvoice.com.

(photo: Rose Mattrey)

Otis Bartlett

Owner of Century Grill

How do you feel about a casino coming to downtown Buffalo? My only disappointment is where it’s located. I was hoping it was opening next door to me.

How do you think it will affect your business? I don’t think it will at all, negatively or positively. Being where the casino is, the only impact I foresee on my business is I may lose a few people before and after a hockey game or any other arena event. Other than that, I don’t see any kind of impact on my business whatsoever. Let’s be honest, there are three casinos twenty minutes away now. The only people who don’t have convenient access to those three casinos now are those who don’t own a vehicle. It seems to me they’re putting it in the perfect neighborhood to access those people. Other than that, if you want to go to the casino, it’s only 20 minutes away. It certainly hasn’t impacted my business at this point.

I don’t understand all the hubbub about the casino. The bleeding hearts that are so worried about protecting the poor and other crap, nobody’s dragging those people into those places in a headlock, forcing them to spend their money there. If you want to go to a casino, you can go. You can take a bus for probably $4 or so. With three casinos nearby already, I can’t see that it’s going to impact downtown that much, with the exception of events at the arena. It may take a little bit off of each of us then. We may lose five or ten people for a hockey game. Does that suck? Yeah, it sucks, but it’s not going to make or break me.

My whole thing is that nobody else will come into this city and say, “We’re going to create 1,500 new jobs, but we don’t want any money from you.” I opened my restaurant here hoping that the casino was going in the convention center. Obviously casino patrons aren’t going to go anywhere else; it’s a self-contained unit. But there are 1,500 employees who can’t hang out in that casino when they’re done with their shift, and those people are going to go somewhere to eat and drink after their shift. That could help downtown, if anything.

(photo: Rose Mattrey)

Dennis Brinkworth

Owner of Colter Bay and Brinks

How do you feel about a casino coming to downtown Buffalo? I think it will be positive for the area. I think because of the way [the Seneca Gaming Corp.] presented the casino, the new proposal they did, I think it will be more of a local destination casino and therefore should help local businesses because of the traffic generated. We shouldn’t worry about them taking our business; we should capitalize on their traffic flow.

How do you think it will affect your business? Well I can tell you two things. One, we are opening a pub down there right across the street from it, so I think it will help our new account dramatically. And I think for Brinks and Colter Bay...I don’t think it is going to affect us. It may have a short-term effect, but I think in general it will not affect us. As a matter-of-fact I think it will help us out.

Did you choose that location because of the new casino? No, I’ve actually wanted to go down there since 1999. So it was just that the right spot came up at the right time. We were going to build it regardless, [the casino] really didn’t matter. You know it is weird. If you called me six months ago I would not have been in favor of the casino, but if they are true to everything they said and it’s going to happen whether we like it or not.... I kind of look at it like we may as well try to capitalize on the opportunity. I look at it as if it is going to be a good thing and it will be our job to make it happen.

What changed your mind about it? Well you know what, I was looking more at the regional economy —that it is really a money drain when you really think about it— but when they presented the Buffalo Creek proposal and you saw the visual, you knew that they were trying to make it a destination location. Regardless of what everyone says, they did present a nice casino. And if they are bullshitting us, shame on them. But if you look at it from that point of view, I said ‘wow, its not that bad, it should help us.’ I’ll be perfectly frank with you, I gave in, too. It just seemed like they were going to do it whether we like it or not. So if they are going to do it, why not do it well. And they certainly did.

What will you do to remain competitve if a casino does go up? We are just going to keep doing what we do best. Colter Bay and Brinks, we’ll just keep focusing on what we do, improving our basic selection, service and food. And down at [the new place] do the same thing, do nothing but be what we are —good, hopefully. The throught is that if we present a really good experience, an alternative experience to the casino, then people will come. I think it will make us a better operator and hopefully we will rise to the occasion and do things that will help the business.

(photo: Rose Mattrey)

Artie Kwitchoff

Owner of The Town Ballroom

How do you feel about a casino coming to downtown Buffalo? I’m against a downtown casino. I think the casino in the falls covers this area just perfectly and has value for Niagara Falls, and I don’t think that there is enough upside to a downtown casino

How do you think it will affect your business? It depends if they open up an entertainment show room. It wouldn’t be direct competition, but there are only so many entertainment dollars people have, and if they are spending them at the casino then they will not be spending them elsewhere.

What will you do to remain competitive if a casino does go up? I think we will remain competitive because we will always do events that the casino does not want to do. We will cater to a younger audience, to a more music-oriented audience.... We just have to be as creative as we possibly can be. There are certain acts I’m sure we will lose to the casino because we don’t have the financial backing that the casino has. They can lose money on shows and it still works for their [business] model because the extra income is brought in from people attending the casino while attending a show. We’re not going to have that.

(photo: Rose Mattrey)

Bill Casale

General Manager of Pearl Street Grill and Brewery

How do you feel about a casino coming to downtown Buffalo? We have mixed emotions. We’re kind of excited because it will create more traffic downtown, but we are also concerned that it will hurt our bigger event nights. Hockey games, pre concerts, post concerts, before and after baseball games. Most of our business here is driven by events downtown.

How do you think it will affect your business? We think it will help us in the long run on the non-event days, maybe 200 days out of the year. I think it would hurt us maybe 100 of those [other] days [of the year].

What will you do to remain competitve if a casino does go up? Well we have been gearing up for it over the last few years so we have been putting things in place to be able to compete with them with the patios, the banquets, and the expansions. So we are going to move our areas of concern to areas that we don’t think they can compete with, maybe a banquet facility where they cannot steal our business. Those [the patio and banquets] have been our main two areas of growth over the past few years.

Have you backed down on the restaurant portion? Absolutely not, we have plans for more growth as well. We feel downtown can house a lot more people and a lot more business. We’re optimistic. We’re not running scared or anything. We’re optimistic that this can work for a lot of downtown businesses.

(photo: Rose Mattrey)

Mark Supples

Owner of Mothers & Jimmy Mac’s

How do you feel about a casino coming to downtown Buffalo? The casino will have absolutely no effect on any sort of decent restaurant in Buffalo. It won’t have a positive effect, it won’t have a negative effect. It’ll be negligible. The kind of people that come into restaurants like mine—and not just mine—you know, Colter Bay, Gabriel’s Gate, Left Bank...all different ranges of restaurants...they have separate budgets for gambling and for dining and for music and for water sports...it all comes out of an entertainment budget. But just because they go to the casino and lose a couple hundred bucks they’re not gonna stop coming into Mother’s, or come in three times a month instead of four times a month. The people that’ll be hurt will be the lower end places. Even fast food, because those are the kind of customers that, if they take a hit at the casino, their budget’s screwed for like, months.

And the thing is that the restaurants in the casino suck. So even though they have restaurants and they’re able to offer some people free dinners—they’re fuckin’ terrible. I have thousands of dollars in credits at the (casino) restaurants in Niagara Falls that, I mean I’m in no hurry to go up and eat there because the food blows. Just because it’s free doesn’t make it good.

There’s kind of a fear factor that people put into their studies...and they try to compare Niagara Falls and they do anecdotal interviews with like six morons that have bars or restaurants on Pine Avenue in Niagara Falls. Well Niagara Falls was a shithole before the casino, it’s gonna be a shithole twenty years from now, it’s gonna be a shithole fifty years from now. It’s because the people in Niagara Falls are for the most part a bunch of uneducated, you know, low-wage...morons. They really don’t have a strong middle class like Amherst, West Seneca, Clarence, North Buffalo, Orchard Park...you know?

And people think that all these people that don’t gamble are now gonna gamble because the casino is close? It’s not true. The morons that go to Niagara Falls and blow their paychecks now are just not gonna have to drive so far to blow their paychecks. It’s not gonna create new gamblers—except people that are really poor and dumb. Who, you know, would never go to the trouble to go to Niagara Falls because it’s kind of a pain when you have no car...public transportation is kinda hard to get to it. So basically the big problem areas are gonna be right around the casino—like walking distance—and then idiots that are gonna be able to get downtown easily, people that can just take the subway down.

Those are gonna be serious problems. I’ve been to a lot of casinos in the world. I’ve been to a lot of scummy ones. This is going to be the scummiest casino in the world. It has the lowest life people within walking distance of any casino I’ve ever seen. Almost all scummy casinos I’ve been to have been way out of the way on Indian Reservation-type things. This one has probably the poorest people in New York State within walking distance. And they’re gonna come in there with like twenty bucks and a dream. And then when they lose their twenty bucks they’re just gonna hang out and try to bother people who have money. Oh, Man! I’m looking forward just to see how ugly it is.

So what’s you’re overall take on the casino coming here?

Oh, it’s a terrible idea! It’s an awful idea! The only worse idea was puttin’ fuckin’ UB out in the suburbs. It’s just an awful idea—it’s gonna make the poor people in Buffalo poorer. But it’ll have no effect on the rich and middle class. And that’s just what Buffalo needs is to make the poor people poorer.

But the rich and the middle class, these groups stand to lose to the casino...what...another piece of land down by the water?

Well yeah, but that land basically had no value in the near future...and if that area was remote from poor people, then I’d say it wasn’t a bad idea. Cheektowaga? That wasn’t a bad idea out there. Land that had no development value really—aside from a mall—and it would have added some money into the coffers of Cheektowaga, and the hotels. But where they’ve put it now, oh my God, I couldn’t think of a worse location.

How do you feel about the whole process? How that location came to be? It’s like most things in New York State. It just got steam rolled over any local input whatsoever. There was no local input. And if there was, it was just like, you know, lip service. You know, ‘We’re listening to you.’ The guy was probably thinking: ‘Oh, I’ve gotta get my dry cleaning...I’ve gotta stop and pick up some milk...Oh! Are you finished now? Great. Thank you for your input, sir.’

But... it’s not gonna affect my business one bit. And I hate to say it might increase my business. ‘Cause of my hours a lot of those kids might get off the late shift and come here to eat and drink. And it’s not gonna hurt Hutch’s, it’s not gonna hurt Holiday Inn or Best Western or Colter Bay. It’s not gonna hurt any business that’s decently strong now. It’s seriously gonna hurt the city, though.

If you were running one of these restaurants that you think will be struggling, is there anything you would do to compete? No, because it’s not really the casino you’re competing with, you know? The casino charges a fair amount for the food they serve and most of those customers won’t be getting free food there. So you’re competing with the idiocy of your customers. And they’re just not gonna realize that you can’t fuckin’ go in there with thirty bucks and win. (pause) Well, you can’t go in there with any amount and win if you play long enough. Trust me! I know that one! (laughs)