California‘s Democratic Party has officially taken sides in the sports-betting ballot race and effectively come down on the side of a tribal/racetrack-driven initiative, going on the record as opposing a rival measure backed by most of the big names in online wagering. This is not entirely surprising. The Dems are going with a traditional source of support (Indian Country) and against what is, mainly, a group of carpetbaggers with relatively political clout out West. To split hairs, the California Democrats are not endorsing the tribal initiative, staking out an official stance of neutrality. But when they line up against Big Gaming’s alternative, we know darn well where their sympathies lie.
Despite the outwardly “neutral” declaration, this is a big win for tribes, who need not only a majority of votes but—should both measures pass—a larger majority than the industry-backed alternative, Proposition 27, which would make mobile wagering available statewide (a powerful inducement). The California Teachers Association has also lined up against Prop 27. However, big endorsements can mean little with the electorate, which has gone against California’s ruling party seven of the last 11 times it’s made an endorsement. Also, Prop 27 is backed by several party-bucking mayors, including Oakland‘s Libby Schaaf (D). Three minor tribes also favor it.
Also claiming victory were California card rooms, which some fear could be put out of business if the tribal/track-backed Proposition 26 passes into law. Big Labor is on the card rooms’ side and by keeping the Dems neutral on tribal sports betting, it is calling its efforts a success. Of course the dream scenario for card rooms is for both propositions to fail, giving them a runup to a ballot measure of their own in 2024 which would make sports betting their oyster. (They tried this year but ran out of time.)
In case you’re wondering why tribal casinos find Prop 27 so noxious, SportsHandle explains that it “would allow for statewide digital wagering with platforms tied to tribal casinos. The application fee for operators would be $100 million, while it would be $10 million for tribes choosing to white label, or use their own name as the front-facing brand. In order for an operator to get approval, it must be licensed in 10 other U.S. jurisdictions. Tribes have argued that the those two requirements set the bar so high that only a limited number of operators would qualify for licenses.” We see their point. As for Prop 27 backers’ argument that what they’re really out to do is alleviate mental illness and homelessness, let’s not kid ourselves.
Uncle Carl Icahn is hopping mad about a poor investment he made in an outlet mall in Primm. Once a thriving hub of retail it is now a ghost town, with no relief in sight. Icahn is suing the manager of the property, Rialto Capital Advisors, for running his investment in so-called Prizm “into the proverbial ground.” Rialto indeed seems to have done a very poor job, practically unable to even give the place away. An agreed-upon sale for $1.5 million fell through and Prizm eventually changed hands for a paltry $400K. If you were Icahn and saw your money turn to dust, wouldn’t you be litigious too? Then again, with so much retail in Las Vegas, why go to Primm any longer?
Jottings: Virginians queued up in droves for the opening of Hard Rock Bristol, the state’s first casino. Raved property President Allie Evangelista of the converted Belk’s, “I’ve been in a lot of casinos. This is as nice, if not nicer, than some places I’ve been and operated before. And it’s a temporary property.” The permanent casino (pictured) comes on line in two years … Hard Rock Atlantic City is making headlines with an immersive Van Gogh art exhibition, a visual stunner. Explained President Joe Lupo, “You need to try different experiential things to help the city acquire new visitation, whether it’s art or some other experience to acquire that person who doesn’t look at Atlantic City as just a gaming destination.” It’s part of a wider, art-friendly trend in casinos … Thailand‘s official casino commission surveyed a large swath of the population and found 81% to favor legalized gambling. Hopefully this will light a fire under Thai politicians, who remain on the fence … Rush Street Gaming is taking the plunge into Mexico, offering Internet gambling and sports betting under a 25-year distribution pact with Grupo Multimedios. In addition to Mexican soccer, bets on NBA, NFL and MLB games will be taken … Better late than never? Bally Bet has crawled into New York State, the ninth online sports book to do so. Meanwhile the state’s tax haul off i-betting providers is reported to be ahead of New York’s own projections … Veteran regulator Richard Schuetz weighs in on the much-hyped Congressional Gaming Caucus screed about offshore betting and concludes it is “a silly dance in Washington and beyond,” performed to drum up campaign contributions. He also draws some highly informative comparisons to the pharmaceutical industry. It’s a must-read.
Quote of the Day: “The Ship of Democracy, which has weathered all storms, may sink through the mutiny of those on board.”—President Grover Cleveland