Real Estate Weekly: NYC Council proposes gambling slots, ships

Riverboat gambling, slot machines and video gaming machines are the focus of a bill being proposed by New York City Council members that would have to be passed by the New York State legislature.

Councilmember Jerome X. O'Donovan, chairman of the Economic Development Committee, and Councilmember Herbert Berman, chairman of the Finance Committee, presented a proposal for legalizing certain forms of gaming last week at a press conference by the East River. Council Members John Sabini of Queens and Rafael Castaneira-Colon of the Bronx also support the bill.

The Council's Economic Development Committee has been studying gambling and its economic benefits for several years. The proposed bill would not limit gambling to just New York City but would expand it to cities or counties of 200,000 or more in population. Places such as the Catskills would qualify. Additionally, catering halls that serve more than 180 people would be permitted to have slot machines and video gaming machines. A catering establishment, a council spokesperson said, includes any place that serves food and complies with the alcohol beverage control laws.

Berman asserted the proposal can work and that it is time for serious discussions and review of limited gambling.

O'Donovan said he proposed gambling as an innovative way of generating revenue at a time when the national recession is causing problems for businesses and residents. Millions of dollars can be raised through gambling, he believes.

The proposed fees include an application fee of $50,000, an initial licensing fee of $100,000 for the first year, while a supplier fee (for the equipment) is $10,000. An admission tax of $2 per head would also be charged.