The question of where to put your money in the race for a Capital Region resort casino is becoming more complicated.

As one developer pursues a tract of land on the outskirts of Albany, the owners of the Saratoga Casino & Raceway are bankrolling an advocacy group to help make their case.

David Flaum, a Rochester commercial builder with ties to casino companies, has approached the owners of the former Tobin First Prize packing plant, according to people involved. Flaum contacted principals of Exchange Street Associates and the Albany County Industrial Development Authority, both of which have rights to the 34-acre site off Everett Road.

"There is some discussion," said Robert Ganz of Exchange Street Associates. "There is nothing signed at this moment."

Ganz, an Albany lawyer, said more than one developer has approached his group recently. Flaum Management Co. has been aggressively searching for opportunities to build a casino in New York, and has proposals for resorts in the Catskills and near Rochester. Flaum could not be reached for comment.

Ganz's group, which has held lease / purchase rights on the tax-exempt Tobin site since 1988, pays $9,000 a month to the county IDA. Under terms of the deal, the group could purchase the site for a dollar immediately and take control of the title next year.

The group has had limited success over the past 25 years finding tenants. The acreage is currently 10 percent occupied, though the main plant is empty.

"I think it would be a wonderful spot for a casino," said Gary Domalewicz, chairman of the IDA. "People could get there from Albany." He added that he has introduced a resolution to the County Legislature to welcome a gambling development.

While part of the site lies in the city of Albany — where Mayor-elect Kathy Sheehan is not supportive of a casino development — most of the land is part of Colonie. Both jurisdictions voted against the casino expansion amendment to the state constitution that passed in a statewide vote last month. The change allows for up to seven commercial casinos in New York, with the first four in three areas of upstate: the Capital Region, Southern Tier and Catskills / Hudson Valley.

Flaum has had a potential Catskills casino site, the former Shawanga Lodge, in the works for years. He also entered into a development agreement with the Seneca Indian Nation for a potential Monroe County casino in the tribe's exclusive gambling territory.

His search for sites in the Capital Region may include other locations, including in Rensselaer County, according to people in the casino industry. Domalewicz said the Tobin site, which is within walking distance of the Capital OTB Clubhouse Race Book, is ideal because of its proximity to I-90.

Meanwhile, backers of an expected casino bid by Saratoga Casino and Raceway on Wednesday announced the formation of Destination Saratoga. Led by Dan Hogan, former chairman of the state Racing & Wagering Board, as well as city resident Marcy Taylor and former Deputy Mayor Hank Kuczynski, the group wants to see the existing racino and harness track on Jefferson Street selected as the region's new resort casino.

In a news conference at Lillian's Restaurant, the group's members argued that the decade-old video lottery terminal facility was best suited for casino gambling.

"Let's face it — gaming has been a part of Saratoga's history," Taylor said. "I believe this particular initiative will enhance that whole project."

The group's formation marks a change in what has so far been a one-sided advocacy effort against casino-style gambling.

An organization calling itself Saratogians Against Vegas-style Expansion has rallied for months against a casino in the city, citing the potential harm to quality of life.

"They are protecting their investment and rallying around their investment," SAVE spokeswoman Sara Boivin said, referring to the formation of Destination Saratoga. " ... We want the voices of the majority to be heard. For us, this is clearly not a done deal. If it was, they wouldn't need this group."

The racino's owners aren't hiding their sponsorship of the pro-racing Destination Saratoga group, which is noted on its new website, http://destinationsaratoga.com. Its public relations are being handled by the prominent SKD Knickerbocker firm.

Hogan and others said they think tourism, horse racing and the racino would suffer if another community lands the casino. The new resort would generate hundreds of jobs and an estimated $11 million a year for the city and Saratoga County to split, supporters said.

"We're not talking about a Vegas-style casino," Hogan said. "We're talking about a Saratoga-style casino. There's a big difference."

At 7 p.m. Monday, racino representatives will attend a casino forum hosted by the county Chamber of Commerce and Saratoga Convention and Tourism Bureau in the Saratoga Springs City Center.

The competition to win the new casino will be especially fierce in the Capital Region, which many developers view as the most promising of the three territories for two principal reasons: its suitably large population base from which to draw customers, and less anticipated competition than in the other regions.

Other Capital Region sites mentioned as targets of potential casino developers include along the Mohawk River in Schenectady and the de Laet's Landing project along the Hudson River in Rensselaer.

A siting board that will be appointed by the New York Gaming Commission next year will review applications for casino licenses.

Applicants will likely be serious and well-financed developers. There will be a non-refundable, $1 million application fee to pay for background investigations. And a license will likely cost tens of millions of dollars more: An early draft of the casino bill approved by the Legislature last summer had proposed $50 million, but the final law left that detail to be worked out later.

jodato@timesunion.com • 518-454-5083 • @JamesMOdato