It was eyeball-to-eyeball and Big Gaming blinked. Faced with probable, heavy losses of business, Borgata—the casino with the most to lose—was first to come to terms with Local 54 of Unite-Here. Terms with most of the majors were reached an hour before the strike deadline, resulting in what union prexy Robert McDevitt called “the best contract we’ve ever had.” Kudos to MGM Resorts International for doing the right thing by its workers. Said McDevitt to reporter Wayne Parry, “We got everything we wanted and everything we needed. The workers delivered a contract that they can be proud of for years to come.” Caesars Entertainment was quick to follow MGM’s lead, with Harrah’s Resort housekeeper Ronnette Lark exulting, “I’ve been here 24 years and we’ve never gotten a raise like this. We got big raises.” How big remains to be seen, pending ratification of the deal and negotiations with the four independent casinos that were spared a strike deadline.
Trying to hang tough is Hard Rock Atlantic City, which has until midnight tomorrow to cut a deal. Now that Borgata and the Caesars threesome have reached accords, the pressure on Hard Rock President Joe Lupo will be immense. Does he really want to blow off July business for the sake of being a hard ass—and damaging his casino’s good local image? So far, the bottom line on the labor pact is that the big boys did the george thing for their workers—and have made it very hard for anyone else in town not to go along. Gone are the days when Carl Icahn poor-mouthed Trump Taj Mahal workers, reducing them to second-tier status with pay and benefit cuts. Local 54 ultimately drove Icahn out of the casino business and good riddance. You don’t mess with Unite-Here, which undoubtedly got its constituency cut in on the enormous i-gaming revenues that casinos are reaping, as well as a slice of the sports betting lucre.
Our East Coast correspondent will be disappointed, as he’s spending the weekend at Borgata “to watch the fireworks,” both literal and metaphorical. Yes, there will be pyrotechnics at Ocean Casino Resort. Both it and Bally’s Atlantic City are expected to sign off on the Unite-Here deal, due to pre-existing “me too” accords. If there’s any picketing at Hard Rock, the most strategic place to hit would be the Boardwalk side. (Hard Rock said it earlier this week it was confident it would reach a labor agreement “soon” but there’s no sign of one.) Borgata picketing would have been problematic to say the least, as it has no sidewalks, we are told, and trying to block the road would incur the wrath of the local constabulary. Unite-Here lucked out on that front.
On a non-strike note, our man in Atlantic City visited Caesars Atlantic City, noted its deserted sports book and its 10-year-old Dolly Parton slot machine, both of which suggest that $400 million in capex, spread over three casino resorts hasn’t been enough. At least MGM’s loss on the Bobby Flay front is Caesars’ gain; Both Caesars A.C. and Harrah’s will be augmented with Bobby’s Burgers, which shows at least some commitment to capital improvement.
Not much more encouraging was a stay at Bally’s in the venerable Dennis Tower (circa 1903). The hotel room had been renovated by the previous Caesars regime, whose makeover didn’t extend to replacing the “worn-out” carpet and bureau. (Note to Bally’s Corp.: Do better.) Incidentally, our earlier report about the Claridge needs correction: “I was wrong about the Claridge Hotel having the heavy braces in the garage—the bracing is in two areas is in Bally’s valet parking garage. The main bracing goes to the fifth floor. I saw a bunch of rust and some concrete crumbles.” (Note to Bally’s Corp.: See previous note.)
While we’re on the subject of Bally’s, it has gained a two-week strike reprieve in Rhode Island. The company finds itself in a politically tricky predicament. How can it make peace in Atlantic City and yet hang tough in Lincoln? Bally’s signaled a conciliatory tone toward Unite-Here, which is sticking to its guns. Meanwhile, the Rhode Island Lottery—just in case there was any doubt—signaled that it intended to exercise its regulatory prerogatives regarding Bally’s billion-dollar sale of its Lincoln and Tiverton real estate to Gaming & Leisure Properties Inc. Beyond that the Lottery would not comment, although we see no reason for the deal not to be approved.
It’s silly season in Washington, D.C., at least if you’re a member of the Congressional Gaming Caucus. With evidently too little to do, this august body is demanding that the Department of Justice shut down offshore sports books. Just how Attorney General Merrick Garland is supposed to police Costa Rica and Malta is not abundantly evident but the caucus is sure the DOJ can crush the specter of offshore gambling, somehow. Blocking the Internet is suggested. Seriously, after the passage of the Unlawful Internet Gaming Enforcement Act, how much more is Uncle Sam capable of doing? With apparently straight faces, Rep. Dina Titus (D) and her colleagues demand that Garland regulate the likes of Bovada Sportsbook and BetOnline, as though he had any means of doing so.
Even the American Gaming Association implicitly admits it’s rattling an empty scabbard by demanding that Justice conjure up “any additional tools from Congress that can facilitate federal law enforcement action and ensure prosecutorial support is dedicated to disrupting and dismantling these criminal organizations.” Considering that debts to offshore sports books are uncollectable in the U.S., the Gaming Caucus really ought to find some serious issues to tackle.
Jottings: When 2026 rolls around, we’ll still be waiting for casinos in Japan but Hard Rock Athens should be open for business. The resort will offer 200 table games and 2,000 slots, along with an entertainment venue modeled after ancient Greek amphitheaters, 10,500 seats large … Ejected Las Vegas Raiders prexy Marc Badain has landed on his feet at the prospective OVG Las Vegas Hotel & Casino, south of the Las Vegas Strip. One third of the $3 billion cost of the project will be devoted to an NBA-ready arena … Bad news for Las Vegas Sands: The government of Thailand may approve as many as five casino resorts. Sands has pinned its hopes on being the only game in town. It would still be presumably in the running for the sole Bangkok casino … After three years of work, Table Mountain Casino opens its new, expanded look on July 21. The 600,000-square-foot behemoth will offer 600 slots and a 14-story hotel … In a move that could both generate more customers for Bally’s Tribune and increase NIMBY concerns, former Salvation Army properties nearby have been scarfed up by Shapack Partners with an eye to erecting 1,100 apartments plus a hotel … Undoubtedly enhancing its i-gaming position in West Virginia, DraftKings has augmented its product with live-dealer games. The popular amenity with include DraftKings’ proprietary Rocket game … Before you enter an Arizona Diamondbacks game, you can now place wagers at the newly opened Caesars Sportsbook pavilion across the street. Previously, bets were taken at the ballpark itself … Red Hawk Casino in California will soon be offering a great deal more than gambling. An in-progress entertainment center promises a bowling alley, driving range, go-kart track and a video arcade. Bring the kids! (There will also be a sports bar for the grownups.)
That Dolly Parton machine is in the “Wild, Wild West” casino smoking-allowed slot area. It is where may old slot machines go to die. The main Wild, Wild West casino area has a few table games but is more popular as a nightclub, live music venue. Caesars had done *nothing* to promote the sports book there, instead pouring heavy marketing into it’s sports betting app. Not that I would recommend sitting in that grimy area with carpeting last replaced during the Obama administration.