In case you missed it, crusading, veteran investigative journalist Jeff German was murdered near his home on Friday. He was stabbed to death following an “altercation” with someone as yet unknown. The up-close-and-personal manner of the crime puts the mind to work and the Las Vegas Review-Journal has published a litany of potential suspects, people and agencies who betrayed the public trust and—in some cases—lost their jobs because of German’s work. I never knew the man. I doubt I ever even spoke to him on the phone. But he was the best at what he did. An attack on German is an attack on everybody who covers Southern Nevada and a message has been sent: Don’t mess with The Man. At least Las Vegas Metro is on the case and the R-J continues to ask questions. Metro says it has a suspect. I hope it’s not some patsy, a convenient meth head thought to have been rummaging through German’s garbage—though it may well have been someone with dirty laundry all right. As R-J Editor Glenn Cook said, “I’m relieved that police have identified a suspect, and I hope an arrest can answer the question we are all asking right now: Why would someone kill Jeff?” I can think of a few reasons.
Continue reading The bad sleep wellCategory: Casino News
Jottings for the weekend
Aside from the launch of sports betting in Kansas—spearheaded by Hollywood Casino and Kansas Star—it’s been a slow news week. Casino gambling is headed the wrong way in Alabama, where employee-owned GreeneTrack Class II casino was forced to shut down, thanks to the state Supreme Court. The latter levied a $106 million tax bill on GreenTrack, an impost that exceeded revenues. With similar levies facing other private-sector, electronic-bingo casinos in the state (except for tribal ones), other closings may well follow … Florida-based No Casinos will be the next party to wade into the lawsuit involving the Seminole Tribe‘s dubiously constitutional sports-betting compact (above). Group spokesman John Sowinski argues that the Seminoles are trying to have their cake and eat it too by expanding gambling across the state—in violation of Amendment 3—and yet claiming it is exempt by being tribal. “It’s an intellectually dishonest argument. It is an argument that is an affront to the people of Florida who have the right in their constitution to control what forms of gambling exist outside of tribal lands,” said Sowinski …
Continue reading Jottings for the weekendPILOT overboard!; Black Book bust; A spark for Sparks
“There is no evidence to suggest that casinos could not meet their PILOT obligations.” With those words Judge Michael Blee tossed New Jersey‘s current Payment In Lieu Of Taxes (PILOT) special-status tax program for casinos, which has lost round after round in the courts. The PILOT quasi-subsidy assesses each Atlantic City casino a share of its gross gaming revenue rather than levy property taxes. This has been the rule since 2016 but last year, in an overreach sped through the Lege by Gov. Phil Murphy (D), online gambling revenues are excluded from the PILOT assessment. This was done at the behest of alarmist casino owners, who said they needed the financial relief to get past the effects of the Covid-19 pandemic. Judge Bee found these grounds, in a word, dubious. They resulted in a $55 million shortfall that disproportionately affected Atlantic City proper.
Continue reading PILOT overboard!; Black Book bust; A spark for SparksStrip slows in July, Downtown flops; Mega-Jottings
Inflation and depleted discretionary income seem finally to have caught up with the Las Vegas Strip. July’s gambling win was 2.5% from the year previous (while locals casinos slipped 3%). The diñero, especially on the Strip, is so elevated from banner year 2019 that last month’s slight decline may not be cause for worry except for those on Wall Street who can’t see beyond one quarter to the next. But a heated (overheated?) casino recovery is definitely cooling if the Strip is off its 2021 pace. In dollar terms, Strip casinos booked $773.5 million while locals ones racked up $233 million. Strip slot revenue ($391 million) dipped 4.5% despite 1.5% more coin-in while table games ($247 million) gained 9% on 6% less wagering. Baccarat was off 14%, bringing in $135.5 million on a lower hold percentage. Locals simply didn’t have as much stomach for gambling, losing $191.5 million at the slots (-3%) on lower coin-in (-4%), while table play was down 1.5%, bringing in $41.5 million (-4.5%).
Continue reading Strip slows in July, Downtown flops; Mega-JottingsSports betting doomed in California?; Much heat, light at G2E
We wouldn’t have believed it but it appears that both California sports-betting ballot initiatives could go down to defeat in November. While we favor sports betting, on principle, we don’t have a dog in this fight. Both Proposition 26 (tribal) and Proposition 27 (Big Gaming) have their merits and drawbacks. Thus you’ll not see us endorse either one prior to Election Day. Promise. The gloomy prospect of a double-barreled defeat comes from Eilers & Krejcik Gaming, a source that should be taken seriously. “The political power and deep pockets of interests with dogs in this hunt … together with competing sports betting measures whose back-to-back presentation on the ballot is likely to confuse voters have us leaning negative on California’s sports betting legalization prospects this fall,” they forecast.
Continue reading Sports betting doomed in California?; Much heat, light at G2EG2E Asia
It’s in full swing at Marina Bay Sands and we’re covering it for CDC Gaming Reports, which means there won’t be much S&G this week. In the meantime, check out this he-said/she-said scandal involving former Interior Secretary Ryan Zinke (who seems to have a problematic relationship with the truth) and his apparent hanky-panky involving the attempted Tribal Winds casino in Connecticut. That project would be totally forgotten and unnecessary, given the struggles of once-feared MGM Springfield, had not Zinke’s inability to come clean not brought it back into the headlines.
Vegas insanity; Penn’s bad boy; Lake Mead in peril
Imagine an 8.5-mile Las Vegas Strip. You may not have to because “experts” say “it’s in the cards.” What’s the cause of this crazed optimism? No, it’s not the economy. The prospect of a baseball stadium at Sahara Avenue and Las Vegas Boulevard bookended by a basketball one at Blue Diamond Road is spurring such fantasies of untrammeled growth. Already, Dream Las Vegas has leapfrogged Mandalay Bay as the nominal southern terminus of the Strip and Station Casinos has undisclosed designs on a major site immediately below South Point. Former MGM Resorts International spokesman Alan Feldman thinks developers could get so carried away, they’ll extend the Strip all the way down to M Resort but “At some point, water is going to be a limiting factor. It almost already is.”
Continue reading Vegas insanity; Penn’s bad boy; Lake Mead in perilSharp decline in Detroit; Biden backs Seminoles, DeSantis
Motown casinos grossed $106 million last month, off 8.5% from July 2021 (and way down from 2019, excepting stellar MGM Grand Detroit). MGM led with $51 million, MotorCity followed with $35 million and, as always, Hollywood Detroit brought up the rear with $20 million. Year/year comparisons were not available by property. Analysts seem much more excited by Internet gambling ($126.5 million) and sports betting ($23 million, minus $7.5 million in promotions). BetMGM was the pace car of i-gaming with $48 million, pursued by DraftKings ($25 million) and FanDuel ($18.5 million). Others who got a decent share were BetRivers ($9 million), Caesars Entertainment ($6 million), Barstool Sports ($4.5 million), WynnBet ($4 million), FoxBet ($2 million) and dark horse BetGLC ($1.5 million). As for everybody else, you wonder why they even bother.
You could say the same thing about sports betting, dominated by FanDuel ($8 million) and BetMGM ($5.5), with DraftKings close behind at $5 million. Barstool Sports and Caesars Sportsbook each collected $1 million, and it was chicken feed for everyone else, a hundred grand here, two hundred grand somewhere else.
Continue reading Sharp decline in Detroit; Biden backs Seminoles, DeSantisPennsylvania: Parx back on top; Gov’t milks problem gambling
Despite a 12.5% dropoff in revenue from July 2021, Parx Casino outpaced the rest of the Pennsylvania pack last month, booking $51 million in revenue. The only other casino to come close was Wind Creek Bethlehem, riding a 13.5% surge to $48 million. As for Parx’s competitors in the Philadelphia market, only Valley Forge Casino Resort was revenue-positive with $12 million (+2%). Rivers Philadelphia and Philadelphia Live were both in free fall, with Rivers having the worst of it, plunging 26% to $17 million, while Live dove 16.5% to $18 million. Harrah’s Philadelphia, despite an 11% tumble, actually found itself within striking distance of the downtown casinos with its $15 million.
Continue reading Pennsylvania: Parx back on top; Gov’t milks problem gamblingAtlantic City burgeoning; Posthumous Adelson scandal
Revenues on the Boardwalk jumped 8% last month from July 2021, reaching $299 million on the nose. Slot winnings were good, up 5.5% on 6.5% more coin-in but table win was even better, growing 16% on only 4% higher wagering. Surging 20%, Borgata was way out in front with $77 million. Hard Rock Atlantic City leapt 11% to $53 million, while Ocean Casino Resort catapulted 33% to $40.5 million. Rebranding and renovation helped Bally’s Atlantic City, the only other revenue-positive casino, climb up 3.5% to $17 million. Last place went to Golden Nugget, down 7% to $14.5 million. Strongest of the Caesars Entertainment properties was Tropicana Atlantic City with $28 million (-5.5%). Despite a 9% decline, Harrah’s Resort came in next with $26.5 million, then Caesars Atlantic City with $25 million (-3%). Rounding out the picture was Resorts Atlantic City‘s $18 million, down 2%.
Continue reading Atlantic City burgeoning; Posthumous Adelson scandal