Intentionally or not, President Joe Biden (D) has done Florida Gov. Ron DeSantis (R) a solid. He wants the federal judiciary to dismiss litigation that would invalidate DeSantis’ controversial compact with the Seminole Tribe. As amusing as the spectacle of Biden and DeSantis in bed together is, the motive may have more to do with launching a preemptive strike in defense of what is a very shaky Department of the Interior case for tribal online sports betting. The Biden administration’s rather daffy interpretation of IGRA (or rather, supine acceptance of the Florida Legislature’s daffy translation) would extend “tribal lands” infinitely into cyberspace, at least within state boundaries. Just imagine the effect if the same logic is applied to tribal OSB in California in a year’s time.
The target of Biden’s executive missile is twofold: Magic City Casino and Bonita Springs Poker Room, both of whom are suing to block implementation of DeSantis’ lavish agreement with the Seminoles (which will be very lucrative for both parties). “At most, plaintiffs identify highly speculative, hypothetical injuries that turn in part on plaintiffs’ own decision whether to participate in the online sports betting program to which they object. Such contentions fail to establish standing and thus this suit must be dismissed,” argue the feds. In a nice bit of circular logic, the Biden attorneys contend that the compact cannot be in violation of IGRA because if it were, Interior Secretary Deb Haaland would not have approved it, ergo it’s valid.
To the extent that Haaland actually addressed the substance of the compact, her flunkies wrote that the objectors “appear to assume … that if online sports betting becomes available, it will have an instantaneous and transformative impact on the Florida gaming market to their detriment.” (Which it probably will.) Daring to touch the third rail of tribal gaming, the two parimutuels pled that DeSantis had created a “statewide, race-based monopoly.” To this Haaland stonily replied, “the Equal Protection Clause does not protect plaintiffs from increased market competition.” SCOTUS “has repeatedly rejected arguments that … federal laws singling out tribes and tribal members draw suspect racial classifications.” Even if the Biden administration gets the dismissal—which it shouldn’t—it’s not out of the woods, with at least two other lawsuits pending. Sit back and enjoy the fun.
Locals will again be welcome at Palms Casino Resort once the San Manuel Band of Mission Indians takes charge. True, the name may eventually change to Palms by San Manuel (gotta build that brand equity, after all) but don’t expect radical departures. The food court was deemed OK by tribal CEO Laurens Vosloo but the “dated” sports book will get an overhaul (but not an enlargement; Vosloo this it is not space-economical). Impressive as Kaos may be, it’s on the way out while the rooftop pool playpen will stay. The most dramatic makeover will be invisible to customers, as it’s the back-of-the-house area. In a sweeping damnation of three previous ownerships, Vosloo said it looked like it hadn’t evolved since 2001, when the Palms opened. As Vosloo put it, “It’s not just always about making money, right? It’s about taking care of the people that help them get there.” (He sounds like a man with his priorities in the right place.)
The primary draw will be toward gamblers and local ones, at that. “Those are the big rocks,” said Vosloo, “and then the pebbles will be all the tourists and some people from out of town.” His idea is provide the quality of a Strip experience without the attendant “craziness.” (Wait, wasn’t that what Station Casinos tried to do?) And despite the “big rocks,” San Manuel is counting heavily on its own database and SoCal cachet. Vosloo also addressed the really important questions. Yes, the Damien Hirst shark is staying put. (Score one for the Fertitta Brothers.) And yes, parking will be free. By and large, he’s making all the right noises, suggesting that San Manuel will find a friendly reception in Sin City.
No sooner was CEO Terry Glebocki out the door than the Illitch Family was approved for half-ownership of Ocean Casino Resort, causing one to ponder further on cause-and-effect relationships. After all, Ocean immediately announced a $75 million capex infusion for the addition of 460 hotel rooms and suites. This enlargement is expected to go through like greased lightning. “The resort will also grow several of its non-gaming amenities, including culinary and entertainment experiences, among others,” ownership promised. More importantly for players: “There will be no changes to the Ocean Rewards program.” Whew.
Meanwhile, half-owners Luxor Capital billed and cooed at their new sugar daddies. “I won’t say we kissed a lot of frogs, but we batted eyelashes at a few frogs and found ourselves a prince,” swooned Luxor executive Michael Conboy. No wonder, since the Illitches have pledged to retire $105 million in Ocean debt. MotorCity prexy Bruce Dall (who will probably turn up at Ocean’s helm, too) was “noncommittal” on Glebocki’s sudden departure and made no promises regarding the future of Ocean’s executive team, although he did vow there’d be a new CEO in 10 days and added “We now have a very deep senior management team, and I think this is the most financially stable asset in Atlantic City right now.”
Of Glebocki, Dall was dismissive, saying “Sometimes the sign of a good leader is you create your own obsolescence.” That’s cold. In a worrisome development for Borgata, whose market lead looks vulnerable, Dall promised to work closely with Hard Rock Atlantic City on revitalizing their area of the Boardwalk. And the hard-won Ocean brand is going to be left alone, with a pledge that there would be no “MotorCity East.” Well, at least they’ve got that right.
Just when you thought it was safe to go back to Lake Tahoe … rampaging wildfires have been replaced with a critically low lake level, the blue of water replaced by the green of exposed algae. For fun, you can scavenge for lake-bottom trash, in what the San Francisco Chronicles describes as “a dystopian version of the postcard image of Lake Tahoe.” Even the beach combing is spoilt by the stink of sewage mixed with rotten seaweed. Ick! All the more reason to stay inside the casinos and gamble, one supposes. It’s amazing what the difference of six feet in the level of the lake can do. To put this in perspective, it would take 800 inches of snow this winter to bring Tahoe back to its proper level. We’re assured that this isn’t apocalyptic, nor as bad as 2016, but it has to be a bummer for those resort executives who count on the inland sea to deliver tourists to their gaming floors. (It’s an even more serious concern the Reno-Sparks area—which relies on the lake for much of its drinking water.)
Jottings: Consummating a dubious deal, the Las Vegas Convention & Visitors Authority sold 10 acres of Las Vegas Strip land to Chilean casino owner Claudio Fischer. The latter gets the acreage for only $120 million and doesn’t have to develop it until 2031. Sounds like Fischer took the LVCVA to the cleaners. At least his business credentials are impressive to say the least … With sports betting verboten in Massachusetts, the playoff fortunes of the Boston Red Sox were very good for Connecticut casinos in their early innings … Nevada Gov. Steve Sisolak (D) has appointed Jennifer Togliatti chairwoman of the Nevada Gaming Commission and former GOP solon Ben Kieckhefer also to the NGC. The bipartisan choice is playing to initially positive reviews … It Could Have Been A Lot Worse Dept.: Tribal gaming revenues fell 19.5% in 2020, hitting $27.8 billion. Tribal leaders credit their prompt response to Covid-19 with the relatively small falloff … Cashless table games have come to Aliante Casino (above, in its early days), in an alliance of Boyd Gaming and Aristocrat Gaming. Boyd has already rolled out the digital wallet in slot-friendly form in Nevada, Indiana, Pennsylvania and Ohio … Full House Resorts is a semi-finalist for the planned Waukegan casino. But a federal lawsuit by the Potowatomi Band could queer the pitch … Weekend rates are absolutely boffo on the Las Vegas Strip for the week of Nov. 7-13. MGM Resorts International is up 93%, Wynncore 59%, Venelazzo 68% and Caesars Entertainment 23%. That more than made up for midweek softness at the two giants.
Quote of the Day: “[A]n alleged Sydney cocaine importer, a Canberra restaurateur and accused drug trafficker and money launderer, the nation’s most infamous accused foreign-interference agent and some of Australia’s biggest alleged tax cheats and corporate fraudsters.”—Answer to the question ‘Who are some of Star Entertainment‘s valued customers,’ according to the Sydney News Today.