One Broadway Center, P.O. Box 7500, Schenectady, NY 12301-7500 www.gaming.ny.gov

John A. Crotty, Commissioner Peter J. Moschetti, Jr., Commissioner

John J. Poklemba, Commissioner Barry Sample, Commissioner

Todd R. Snyder, Commissioner

Robert Williams, Executive Director Edmund C. Burns, General Counsel

December 16, 2015

Scott B. Samuelson, Chairman Sullivan County Legislature Sullivan County Government Center 100 North Street PO Box 5012 Monticello, NY 12701 Dear Chairman Samuelson, I write in response to your December 13, 2015 letter seeking information to explain a “delay” in casino licensing. I am pleased to advise you there is no delay, and the rigorous process of reviewing applicants remains on track for timely licensing decisions. We are proud of the successful site selection process, which involved unprecedented transparency and opportunity for public input. And I’m happy to tell you New York’s licensing process, which began when site selections were finalized in February 2015, is on track for licensing determinations as soon as this month. We are moving swiftly compared to states like Massachusetts, which has a five year end-to-end process that took in one region 20 months to render a license determination. New Yorkers’ best interests are at the forefront of our licensing evaluation process, which is driven by a comprehensive and exhaustive statutory mandate to ensure only qualified applicants of the highest integrity operate in New York State. The suitability determination included in Sections 1317 and 1318 of the N.Y.S. Racing, Pari-Mutuel Wagering and Breeding Law, require the Commission to consider an applicant’s overall reputation, which includes, without limitation:

1. integrity, honesty, good character and reputation; 2. financial stability, integrity and background; 3. business practices and business ability to establish and maintain a successful gaming

facility; 4. compliance with gaming licensing requirements in other jurisdictions; 5. involvement in litigation regarding business practices; 6. suitability of affiliates, close associates and financial resources; and 7. disqualifying criteria.

The law hinges suitability on, and directs the Commission to review, whether an applicant or any individual associated with an applicant:

1. was convicted of a felony or other crime involving public integrity, embezzlement, theft, fraud or perjury;

2. committed prior acts that form a pattern of misconduct; 3. has affiliates or close associates that would not qualify for a license or whose relationship

with the applicant poses injurious threat to the interest of the state; 4. has pursued economic gain in an occupational manner that is in violation of criminal or

civil public policy; 5. is identified as a career offender or member of a career offender cartel; 6. has flagrantly defied any legislative or other investigatory body engaged in the

investigation of crimes relating to gaming, official corruption or organized crime activity; or 7. has failed to make required child support payments, repay public assistance benefit

overpayments or repay any other debt owed to the state. The Commissioners are reviewing a comprehensive set of documents and investigative reports including those provided by the New York State Police. The Commissioners are in receipt of all documents and information needed to make their determination, but are empowered to seek any additional information they deem necessary to complete their review. Commission staff plays a supportive role by providing the Commissioners what they need. No outside entity, including Commission staff, is permitted by law to pressure or influence Commissioners as to the timeliness or outcome of rendering decisions. I assure you this panel of dedicated experts is well aware of the concerns of interested parties such as yourself, and those articulated through hundreds of public comments issued during the site selection process. Once a Commissioner determines an applicant is suitable and not disqualified, they must then proceed to a review of the applicant’s entire application and an evaluation of whether the applicant meets the minimum license thresholds set forth in section 1316 of the N.Y.S. Racing, Pari-Mutuel Wagering and Breeding Law. This statute requires that no applicant shall be eligible to receive a gaming license unless the applicant meets the following criteria and clearly states as part of an application the applicant shall:

1. in accordance with the design plans submitted with the licensee's application to the board, invest not less than the required capital under this article into the gaming facility;

2. own or acquire, within sixty days after a license has been awarded, the land where the gaming facility is proposed to be constructed; provided, however, that ownership of the land shall include a tenancy for a term of years under a lease that extends not less than sixty years beyond the term of the gaming license issued under this article;

3. meet the licensee deposit requirement; 4. demonstrate that it is able to pay and shall commit to paying the gaming licensing fee; 5. demonstrate to the commission how the applicant proposes to address problem

gambling concerns, workforce development and community development and host and nearby municipality impact and mitigation issues;

6. identify the infrastructure costs of the host municipality incurred in direct relation to the construction and operation of a gaming facility and commit to a community mitigation plan for the host municipality;

7. identify the service costs of the host municipality incurred for emergency services in direct relation to the operation of a gaming facility and commit to a community mitigation plan for the host municipality;

8. pay to the commission an application fee of one million dollars to defray the costs associated with the processing of the application and investigation of the applicant; provided, however, that if the costs of the investigation exceed the initial application fee, the applicant shall pay the additional amount to the commission within thirty days after notification of insufficient fees or the application shall be rejected and further provided

that should the costs of such investigation not exceed the fee remitted, any unexpended portion shall be returned to the applicant;

9. comply with state building and fire prevention codes; 10. formulate for board approval and abide by an affirmative action program of equal

opportunity whereby the applicant establishes specific goals for the utilization of minorities, women and veterans on construction jobs.

To satisfy the above, each Commissioner has also been provided with a matrix of applicant-proposed changes to their originally filed response to the Request For Applications, which include the addition or replacement of key personnel, changes to the project’s financing structure, design alterations, etc. which they must review and consider. In addition to the aforementioned, each Commissioner must also review and consider the license documents themselves, which are akin to comprehensive contracts; approve each Applicant’s Minority and Women-owned Business Enterprise utilization plan; and, as an Involved Agency, adopt the Lead Agency’s findings or make its own findings with respect to an applicant’s environmental impact statement or environmental assessment form pursuant to the State Environmental Quality Review Act. I share your excitement about the future of casino gaming in New York State. I trust you and your constituents will be reassured by the fact New York’s evaluation process is thorough and beyond the reach of outside influence—a necessity that will help ensure the development of a successful and profitable casino gaming landscape that is grounded in integrity and can deliver the long term economic benefits that come with job creation and property tax reductions. Sincerely,

Robert Williams Executive Director New York State Gaming Commission