New York City is bursting at the seams with tourists, all of them eager to have a good time and spend money. We’re even setting records in the number coming to the city, with Mayor Bloomberg announcing that more than 52 million visitors came and spent money in 2012. According to city estimates, our tourism industry generated $55.3 billion in economic impact in 2012, with $36.9 billion in direct spending, while our hospitality sector employs 356,000 people.
Simply put: Tourists are cash cows. So how can we get even more money out of them? Gambling.
There’s a major effort to legalize casino gambling in New York State via state referendum — one that is engendering a lot of strong opinions. This proposal, however, is considerably smaller, more targeted and with less of a risk for failure, or for spreading what some consider an economic pathology.
If you’ve ever visited Las Vegas, you probably noticed the slot machines and other gaming consoles in the airport. Can a similar scheme be used in our airports — generating revenue for government while containing gaming that New York communities might object to?
Imagine a scenario where video lottery terminals are installed in busy airports and all of the proceeds are used to fund Port Authority capital projects, bridge and tunnel improvements, or even to keep tolls down or improve capacity at the bus terminal in Manhattan.
In order to access the gambling terminals, one must be a ticketed passenger and the area would be beyond the security check-in.
By keeping these facilities out of reach of the general public and out of view of children, we can in essence remove many of the accompanying societal problems that are commonly associated with gambling, i.e. prostitution, chronic, addictive wagering, drugs and seedy elements.
Imagine a tourist from Europe who is flying back home and still has a few remaining dollars or change in his or her pocket. Eager to get rid of a few quarters, he puts them in a VLT and pulls the lever.
If a passenger has a few hours to kill during a layover, what better way to pass the time than to play a little blackjack while waiting for your boarding call?
Major cities such as Baltimore and Chicago have been trying for years to get legislative approval to site video lottery terminals in their airports, because political leaders see the potential for additional tourism dollars.
If Port Authority executives are reluctant for a full scale rollout at Newark, JFK and LaGuardia, perhaps they can try a dry run at Stewart Airport. Conveniently located at the intersection of the New York State Thruway and I-84, the airport is easily accessible from Westchester, Rockland, Putnam and Dutchess counties in New York as well as Bergen, Passaic and Morris counties in New Jersey.
At 2,400 acres, Stewart Airport is nearly four times the size of LaGuardia and for the last several years, the Port Authority has been working to increase usage of the airport. Perhaps the money could be used to pay for the rail line from the city everyone keeps talking about.
Because of the bi-state nature of the Port Authority, there are understandable questions about revenue and leadership, but it is certainly a proposal worth exploring. But this idea is worth exploring, whether or not the push for full-fledged gambling here fails.
Tourists like spending money and commuters are tired of shelling it out. Let’s keep the tourists spending money until they board the plane.
Hey, you never know, it may help prevent the next toll increase at the Midtown Tunnel.
Figliola is the vice president of Empire Government Strategies, an economic development firm based in Uniondale.