Clarification: An earlier version of this article said the Oneida Indians had opposed licensing new casinos. They had only opposed licensing the del Lago casino.

Saratoga Springs

Open for less than a year, upstate New York's three new state-licensed casinos are already predicting trouble ahead.

"The party is over," said John Donnelly, a lawyer representing Schenectady's Rivers casino.

Donnelly said New York's expanded gaming industry appeared to be following a boom-bust pattern seen in other states that have allowed or enlarged gambling.

"Our business is not what we had hoped," said Jeff Gural, who owns the Tioga Downs casino in the Southern Tier community of Nichols. Gural called the upstate gaming industry "totally saturated."

Laura McAllister Cox of Rush Street Gaming, the parent company for Rivers, added that as in other regions the industry will eventually undergo a period of "right-sizing."

Rivers, Tioga and del Lago, which is between Syracuse and Rochester, are the first three non-Indian casinos to open in the state since voters approved a constitutional change allowing the state to license up to seven such facilities four years ago.

A fourth, the Montreign casino in the Catskills, is still under construction.

MORE: A detailed look at the February opening of Rivers Casino

Representatives of the three open facilities spoke Wednesday at the Albany Law School's annual Saratoga Institute on Equine, Racing and Gaming Law at the Saratoga Hilton.

The downbeat assessment wasn't surprising to attendees at Wednesday's symposium, which included lawyers and lobbyists seeking to shape gaming law and regulations.

"There is this natural evolution in every market," said Jeremy Kleiman, a lawyer who has represented Atlantic City casinos. Those operations, dating to the 1980s, have just recently emerged from a series of high-profile bankruptcies and changes in ownership.

Conference attendees said it's only natural for business owners to talk about the challenges they face, and to say they may have to ask for tax breaks or protection from competition.

That's especially true in the heavily taxed and highly regulated casino business. And it comes as upstate casino owners know that, according to the state's schedule, additional casinos could be licensed in New York City as soon as 2023. Those gambling halls will likely draw customers who may now travel upstate or to Atlantic City, Connecticut or Pennsylvania to test their luck.

Robert Williams, executive director of the state Gaming Commission, noted that the casinos are just now getting started and "it's too early to draw any conclusions" about how the facilities are faring financially.

According to Gaming Commission records, Tioga, Rivers and del Lago earned $27.2 million, $38.5 million and $26.1 million between their respective openings and the end of June. Those amounts represent winnings after taxes, but they don't show the bottom line after their other operating expenses and debt service are subtracted. Moreover, state lawmakers have already demonstrated that they'll help gaming operators who can demonstrate that they are struggling.

Gural last spring convinced lawmakers and Gov. Andrew Cuomo to grant a tax break to another of his properties, the Vernon Downs harness track and video lottery terminal "racino."

Gural said he would have to close the operation due to the hit it has taken from the newer casinos, and from another smaller Indian casino that the Oneidas have opened nearby. A third new competitor is on the way. In response, the state Legislature granted Vernon Downs a larger cut of VLT revenues that should pay it roughly $2 million this year. The Oneidas have long operated the Turning Stone casino and resort complex east of Syracuse.

While they supported the constitutional amendment allowing gaming, the Oneidas had opposed licensing the del Lago casino.

Gural added that despite the challenges facing casino operators, the competition is "good for the consumer."

rkarlin@timesunion.com @RickKarlinTU