Vernon Downs, a central New York community staple, is in danger of closing unless an agreement over state-issued tax breaks is reached.
Beginning in 1953 as a harness racing track, Vernon Downs has seen its fair share of changes. Competing racetracks and the opening of bingo halls and casinos in the 1980s and 1990s forced the track to adapt, eventually leading to the addition of a casino and hotel.
Despite the additions, track owner Jeff Gural says he is losing money. Just last year, Gural lost $2 million on the facility, and if he does not receive an increase in agent commission, a portion of the wins for operating a gaming facility, he says he will have to close Vernon Downs.
In a statement, Gural said COVID-19 was a large contributing factor to the decline in revenue.
“COVID decimated our business and without modest tax relief we can no longer operate,” Gural said. “We all care deeply about this community and I am hopeful we can work with the Governor and Legislature to keep these jobs and Vernon as an economic engine for Oneida County.”
Union leaders, local officials, representatives and organization leaders met recently at Vernon Downs to discuss ways to prevent the closing. The Workers Union is asking the state to grant $2 million in tax relief, which would allow for the casino to break even and continue operating, saving the over 200 jobs at the facility. State Senator Joe Griffo (R-Rome) said this is not a large ask.
“I think [Gural] is making reasonable requests of the state of New York,” Griffo said. “So we are going to do our best to continue to press this case and to do everything that we can to ensure that people are hearing this. And most importantly that we try to resolve this before the conclusion of the legislative session in mid-June.”
This is not the first time Vernon Downs has faced an issue with tax breaks. In 2017, a bill sponsored by Griffo and state senators, John Bonacic and Fred Akshar provided tax breaks necessary to keep the track running. State Assemblywoman Marianne Buttenschon said passing legislation this time should go beyond the previous years' agreements so workers are not repeatedly battling job insecurity.
“I think it is a matter of ensuring that these employees do not have to face this every two years,” Buttenschon said. “So not only will I support the legislation but I am clearly going to support that we have a clear discussion on what is the plan to go forward to make sure that this remains a viable destination for not only these families but the seasonal work we see at the track.”
According to Central New York Workers United Leader, Gary Bonadonna, the employees today are concerned for what the future might hold, but are placing faith in local support.
“I think naturally people are nervous, their job is in jeopardy, but remain hopeful, with the support of the elected officials here, support of the union, that we can keep this place going and thriving,” Bonadonna said.
The press conference stressed the sense of community Vernon Downs provides to local residents. Town leaders shared stories of events they have attended, milestones they have witnessed and memories they have all created at the track and hotel over the years. Vernon Town Supervisor Randy Watson said losing the track and casino could also have lasting consequences on town finances.
“Every business will lose a couple people in this town if Vernon Downs is not here,” Watson said. “It’s 12% of our budget, the money we get from gaming and from the taxes paid on this piece of property.”
In a WARN notice submitted to the New York State Department of Labor, Gural outlined a staged closing process with different portions of the facility ceasing operations on Aug. 7, Sept. 18 and Dec. 31. Officials will have until June 8 to reach an agreement with state departments regarding the tax breaks.
