The Catskills Region Waits for Casinos to Solve its Economic Problems

Michael Taylor grew up in the Catskills Mountains as the slow demise of Borscht Belt resorts cast a long shadow over the region's economy. And during the 1970s, like today, billboards lined the highways promoting casinos as the answer.

"We've been hearing that our whole lives," said Mr. Taylor, 46 years old, who owns a propane and heating-oil business in town.

Casino advocates in the Town of Thompson, in which Monticello is located, thought their chance finally had arrived with the approval last year of Las Vegas-style gambling for New York. But many here are now bracing for more disappointment after two groups abandoned their plans to bid on casino licenses in the Catskills.

"The frustration is very strong. It's been 40-some years," said Gary Schmidt, the chairman of a plumbing and heating company in Monticello.

Not long ago, Thompson seemed poised for success. The state process will award four casino licenses in three regions. Three groups signaled interest in submitting bids for projects within the town of 14,000 residents. But the state's decision to add Orange County as an eligible location—much closer to New York City than the Catskills—has unnerved people here. Two Catskills bidders who dropped out both cited potential competition from Orange County.