Author: David Mckee

$75 million or else. That’s extortionate Chicago Mayor Lori Lightfoot‘s latest demand of casino applicants. If you win the bid, fork over the cash. Her Dishonor might settle for ‘only’ $40 million on the barrelhead, followed up by a $2 million ransom the subsequent year. So far only Bally’s Corp. has offered upfront money—$25 million—while its rivals want Lightfoot to settle for the city’s cut on the back end. With the Chicago Tribune (Bally’s), waterfront (Rush Street Gaming), and Soldier Field area (Hard Rock International) sites all being blown raspberries by aldermen and public alike, some are even advocating putting McCormick Place back into play.

They won’t have much time. Chicago Casino Committee Chairman Tom Tunney wants a final selection by May, with the goal of having the Illinois Gaming Board sign off on the choice by autumn. In the meantime, Lightfoot has been caught playing footsie with Bally’s, charging it only one application fee for two sites. (Rush Street had to pay twice over.) Lightfoot’s office cited technicalities to justify the favorable treatment while Bally’s Chairman Soo Kim, citing his deep pockets, said, “We paid the fees that were asked. Don’t you think we would have sent another $300,000 if they asked us to?” Certainly—but Kim wasn’t asked, another indication of which way Lightfoot is leaning.

Continue reading Windy City shakedown; Strip explodes, Palms reborn

Both the reputations of Resorts World Las Vegas and its president, Scott Sibella, could be besmirched by a Nevada Gaming Control Board investigation. The tentative probe stems from charges made by gambler Brandon Sattler as part of a huge bankruptcy proceeding. Sattler’s accusations include that Resorts World fast-food joint Tacos El Cabron is partially owned by David “Fat Dave” Stroj, a convicted felon, who orchestrated a multi-state, illegal bookmaking scheme and is an associate of the Philadelphia Mob. (Choice Stroj quote: “Palomar [card room] is the best way I can wash the money. I don’t have to report it. I just deposit it at the Palomar and there’s no problems for me.”) Sattler says he’s known Sibella for 20 years and has seen the Resorts World prexy use drugs.

Continue reading Sex, drugs and Resorts World LV; Massachusetts gets serious about sports betting; Caesars wins two Freddies

Although the Indian Gaming Association trade show in sunny Anaheim is sucking all the wind out of casino news this week, there’s still movement happening, mostly in the state houses. Take the weird, hybrid sports-betting bill that just passed out of the Maine state senate and is headed for Gov. Janet Mills‘ desk. It grants online wagering (but is it off-reservation?) to Maliseet, Penobscot and Passamaquoddy tribes. Four private-sector casinos also get sports wagering, but only of the walk-up variety. You’d think that, for the casinos, getting any iteration of sports betting would be welcome, but they’re against the bill. So is the Sports Betting Alliance, a stalking horse for OSB giants like DraftKings and FanDuel. Huffed the SBA, it’s “a significant step backwards from the existing proposal to legalize sports betting market in Maine.” Mills is prickly and unpredictable but we expect her to ignore the SBA and sign the bill, the product of long negotiation with the tribes.

Continue reading Playing politics with gaming

Move over, Parx Casino, there’s a new leader in the Pennsylvania gaming market. That’d be Penn National‘s eponymous racino near Harrisburg. For the second month in a row it was tops in the Keystone State, banking $64 million, up 11.5% from last year. Parx had to settle for $60.5 million, a 2% dip from 2021. On the comeback trail was Rivers Philadelphia, up 13% to $54.5 million. Valley Forge Resort was an incredibly strong fourth-place contender, soaring 40% to $52 million (remember, it’s considerably smaller than its market rivals, constrained by law), while Philadelphia Live manifested only limited signs of life: $25 million, albeit a 20% gain. It did displace Harrah’s Philadelphia, whose $19 million represented only a 2% uptick.

Other market-dominating casinos were Wind Creek Bethlehem ($47 million, +33.5%) and Rivers Pittsburgh ($35.5 million, +20%). Much further back were Mohegan Sun at Pocono Downs ($22 million, flat), Hollywood Meadows ($20.5 million, -2%), Mount Airy ($20 million, -14%) and Presque Isle Downs ($11.5 million, +11%). Then came the satellites: Pittsburgh Live ($10 million, +20%), new Hollywood York ($8 million) and Hollywood Morgantown ($5.5 million, +241%). As customary, Lady Luck Nemacolin brought up the rear with $2 million, up 3%.

Continue reading Parx dethroned; Shreveport sleaze; Maine’s latest bet

It never seems to get easier for Chicago casino applicants, who are facing stony opposition from many of their would-be neighbors (and customers) and who also find themselves pawns in a convoluted political process. At stake is something called “aldermanic prerogative,” meaning that if you don’t want a casino in your ward, tradition dictates it goes somewhere else. Chicago Mayor Lori Lightfoot (D) would dearly like to upend that custom but faces a long, uphill slog to convince a largely recalcitrant body of alderman. As for the prerogatives, they favor Bally’s Corp. and bode ill for Rush Street Gaming, while Hard Rock International is somewhere in between. Going by its architectural, developmental and financial track record, one would think Hard Rock a shoo-in for a city the caliber of Chicago but CEO Jim Allen effectively screwed himself by setting up shop 29 miles away in Gary.

Continue reading Politics as unusual in Chicago; Caesars: Rock the casbah