Hudson Valley Casino & Resort Slated for Town of Newburgh


Last week a meeting was held in the Town and City of Newburgh to gather support for the Hudson Valley Casino and Resort that will be located at the intersection of I-87 and I-84 in the Town of Newburgh behind Orange County Choppers. So far city and town officials support the project and both municipalities have agreed to a revenue sharing agreement that would give the City of Newburgh 15% of the host community revenues providing an estimated $1,020,000 annually. The casino operator is promising an additional 15% that would give the City of Newburgh more than $2 million dollars annually total.

Mayor Kennedy was quoted as saying,

“While the City of Newburgh will see direct dollars for the siting of this casino in the Town of Newburgh, the increased property tax revenue will have a substantial impact on reducing school taxes…Between the added revenue for law enforcement in our City through our agreement with the Town, the arrangement we established with the casino itself, and the impact that this project will have on jobs, it’s a no-brainer for the City of Newburgh to offer its whole-hearted endorsement.”

The project proposal is promising 2,400 construction jobs and 2,500 permanent jobs with benefits. Salary ranges are anticipated to be between $30,000 – $70,000 annually for non-management positions and $70,000 – $180,000 annually for management positions. They are also promising to work with local restaurants, farmers, brewers, and distilleries that showcase the Hudson Valley.

Research about the economic development promised by casino’s tells a different tale. A study called Casino Gambling as an Economic  Development Strategy by Terance J. Rephann found that:

“Casino gambling is adopted by economically struggling counties and can be a successful development strategy. The effects trickle down to other sectors of the economy, including recipients of income maintenance payments. On the downside, local governments and local workers do not appear to appear to reap the lion’s share of benefits, as much of the income generated by casinos is dissipated through leakages outside the host county.”

Other studies have found promise in the positive impact of casinos on economic development, but also acknowledge that it can be unstable and it is an industry highly impacted by outside factors. There are also the moral and ethical issues that many people are afraid come with a new casino. Rephann cautions that investment in the casino industry is an economic development gamble in of itself with location and competition being key factors. He also says that training mechanisms should be put in place so that the local labor force is equipped for the skilled jobs casinos may offer.

Casinos are also often one-stop locations sufficing all of the needs of visitors, giving them very little reason to patronize outside businesses. Such was the case in Atlantic City where, “the number of restaurants dropped 40 percent since 1977. Most people associated with the industry note that people don’t venture far from the casinos” (Dunstan, 1997). Another issue with Atlantic City is that it  has “done little to revitalize the rest of Atlantic City and its business community. Atlantic City has been described as two cities. One is the casinos and the other is a city of boarded-up buildings with a unemployed minority work force.”

What do you think about the proposal for a casino and the partnership between the City and Town of Newburgh? So far, it looks like many support the project.



Dunstan, R. (1997, January 1). Gambling in California. Gambling in California. Retrieved , from

Rephann, T. J. (1997, January 1). Casino Gambling as an Economic Development Strategy. . Retrieved , from

Walker, D. M., & Jackson, J. D. CASINOS AND ECONOMIC GROWTH: AN UPDATE. The Journal of Gambling Business and Economics, 7, 80-87. Retrieved , from

5 Comment

  • “I spent half my money on gambling, alcohol, and wild women. The other half I wasted.” WC Field

    I’m not into casino gambling but I do find gaming theories interesting. There is a math around on how a casino operates. If the math doesn’t work in their favor they would never open one. Way simplified, it has to do with the player’s wager expected value (EV) which, viewed from the casino’s perspective, determines the house advantage. Variables such as the game, rules in effect for that game and the player’s level of skill are formulated. The one variable that always gives the house the advantage is they supply the money available to the table by way of quantity and duration. Where casinos lose money is a result of poor business modeling in that they place business management over money management, i.e. glitz and glam over math. Big casinos are showing losses because many have taken on debt to fund brick and mortar operations. This expense has diminished the money variable from the ‘formula’, it takes money to take even more money. Even state run casinos are losing money to the extent of bailing a casino out with taxpayer dollars. Like any
    business, casinos can make money, pay bonuses, expense whatever, only to report a loss. No profit, no taxes. Casinos are not municipal support functions for the general public’s need, i.e. firemen,police,roads etc. .Nor are the states sophisticated enough to be in the casino business. Casinos aren’t built by winners.
    I’ll add, just how far down the rabbit hole will the economy go in search of creating revenue. Recently, Italy and the U.K. announced they will add prostitution and illegal drug sales to their GDP formula. Coming soon to a city near you?

  • “Perhaps even more insidious is the damage done by compulsive gambling. Studies indicate that people who are addicted to gambling generate a disproportionate amount of profits for casinos: five percent of casino patrons are addicted, generating 25 percent of the casino’s profits [Source: PBS]. Economic studies show that the net value of a casino to a community is actually negative [Source: UIUC News Bureau]. Critics contend that casinos primarily draw in local players, not out-of-town tourists, so casino revenue represents a shift in spending from other forms of local entertainment; and that the cost of treating problem gamblers and lost productivity from gambling addicts reverses whatever economic gains the casino may bring. In numerous communities where a casino has opened, calls to gambling addiction hotlines have increased by several percentage points in subsequent months and years.”–How Casinos Work, Ed Grabionowski

    Professor John Kindt, a professor at University of Illinois, said, “The field research indicates that nationwide you stand to lose 1.5 jobs for every job the casinos create. In Chicago the field research indicated that 2 to 2.75 jobs would be lost if a land-based casino were built and that is why Governor Edgar vetoed the proposal.” Kindt says of gambling in general, “…for every dollar legalized gambling interests indicate is contributed in taxes, it really costs the taxpayer $3.00 to address the increased socio-economic costs to society.” –NM Coalition Against Legalized gambling.

    How about something that educates, creates jobs, and restores the architectural heritage of Newburgh at the same time?

    • “…and that the cost of treating problem gamblers …”, “…for every dollar legalized …it really costs the taxpayer $3.00…”. More ‘broken window’ economics as the industrial healthcare and educational complexes are the only game in town. Take them away and “lost productivity” will show itself to be the cause not the effect.
      For every one historic house in need of restoration there are a multitudes of qualified design/build professionals as well as apprentices available to meet the supply. Extend this concept further and address the infrastructure in need of restoration that provides the way to and support of the institutions of body and mind.
      It’s not a supply or demand issue in neither the push nor pull sense, it’s a condition of capital being misallocated.

  • My favorite vision-less idea proposed by city governments nationwide.

  • Ya im not too sure how building a casino near Newburgh can be a good idea. I work at a grocery store and have watched people pay for their food with EBT cards(food stamps) then proceed to buy lotto tickets and scratch offs with the hope they might just get lucky and be done with their financial problems. Like Walt said I can’t see much money comming into the area from a casino patron. The main roads are right there, they come in gamble and leave, maybe fill up and buy some snacks for the road at gas station near by. The only money would be the money spent by locals that work at the casino but that would be off set by others pissing away their money at said casino.