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Chicago: Then there were three … ; Leaner, meaner Boyd

Enjoy these images of Rivers McCormick while you can because you’ll never see them again. Chicago Mayor Lori Lightfoot has nixed McCormick Place as a potential site for a casino, setting Bally’s Corp. and especially Rush Street Gaming down a peg but not out of the game entirely. At the same time, Lightfoot kicked the casino-selection deadline into “early summer,” which flies in the face of her stated goal of having a Windy City casino up and running by 2025. “We have spent countless hours analyzing each proposal for Chicago’s casino license and have determined Bally’s Tribune, Hard Rock Chicago, and Rivers 78 best fit the core goals we want to achieve for the City’s first integrated casino-resort,” said Lightfoot, giving the short-answer version of her decision.

“Each proposal offers economic, employment, and equity-focused opportunities for Chicago, while simultaneously enhancing the City’s cultural, entertainment and architectural scenes with world-class amenities and design. Our teams look forward to heading into discussions with the finalists and getting one step closer to bringing this decades-long project to fruition.”

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A New Scam

Here was the email:  

Hi Bob, 

It may be hard to believe, but people regularly forget about deposits, property they owned or overlook funds that they should have inherited. This actually happens more often than you might think. In fact, there are billions of dollars in unclaimed assets in locations throughout the United States. We performed a simple search on your email address ([email protected]), and quickly discovered that you have unclaimed assets. Please take a closer look by following the link below and hopefully you can regain control of your missing valuable property that is rightfully yours.

Reclaim Your Money Now

Thank you!

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Mulligan in Virginia; Caesars makes peace; Labor strife in Vegas

Richmond Mayor LeVar Stoney (D) is going to get his dearest wish: an electoral do-over for the Urban One casino proposal, which voters narrowly nixed at the ballot box last November. A year later, the electorate will get a chance to revisit the issue, now that a local judge has ordered it placed on the 2022 ballot. While the referendum question only specifies the location of the casino, we know darn well who will benefit from a win. Interestingly, opposition to the casino includes the local chapter of Unite-Here, which is skeptical that Urban One is going to provide good jobs, salaries and benefits. Union lobbyist Sam Epps said his constituents are “disproportionately affected by income inequality and bad jobs. Workers need to understand how they will benefit from new casino development before it moves forward.”

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Sunday Special: Coming down the Oscar stretch

With one week until the Academy Awards, you still have time to get your money down in New Jersey and Indiana. (Why not Nevada, we ask?) Although its odds have narrowed significantly, The Power of the Dog (DraftKings -280/BetMGM -250) is still the picture to beat. If you feel like playing long shots (and we’re not talking about hopelessly out-of-it ones like +8,000 Nightmare Alley), there’s a serious chance the Academy could go with predictable CODA (+400/+450), which has usurped Belfast‘s feel-good mojo, moving way, way up from +2,500 (Belfast: +650/+600).

“Apple: Television for Oscars”

Proudly mediocre, CODA is the best Lifetime Channel Original Movie ever made but Oscar voters could split the ticket much as they did when they anointed mushy The Green Book over Best Director/Best International Film winner Roma. At this point, Power of the Dog writer/director Jane Campion remains a prohibitive (-3,500/-3,000) favorite to take home the Best Director prize, besting Belfast‘s Kenneth Branagh (+1,400/+1,400) and sentimental choice Steven Spielberg (+2,000/+1,200), who’s forsaking cinemas for streaming services after West Side Story. If there’s any movement toward an upset in this category it’s Licorice Pizza helmer Paul Thomas Anderson, tiptoeing up to +2,000/+3,300.

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Penn’s Portnoy problem; Unexpected winners, losers in Pennsylvania; Mega-Jottings

That ongoing bromance between Barstool Sports founder Dave Portnoy and Penn National Gaming CEO Jay Snowden is prompting regulatory scrutiny in Indiana and even Nevada, especially as Penn girds its loins for a full Barstool buyout. That would bring the uncouth Portnoy into the Penn fold as a key player in the company—and he’s not exactly someone you’d want to bring home to the gaming control board. The brash Portnoy faces serial accusations of sexual assault (which he denies) and Snowden has lashed himself to the Barstool mast. As the Wall Street Journal puts it, Snowden “stands by Mr. Portnoy and still believes in Barstool’s media appeal as key to the company’s future in sports betting and digital media.”

Portnoy’s questionable character has already cost Penn a shot at the New York State OSB market—although it could get a second bite of the Big Apple as money-mad lawmakers are pondering doubling the number of OSB licenses in the Empire State. Snowden has joined the chorus of those who say the current level of sports betting market is unsustainable. If Penn gains Barstool as an exclusive megaphone for its product, those costs could be shaved substantially. “They’re profitable, which is rare for a lot of digital media businesses,” Snowden told the WSJ. “They’ve delivered on what they said they would do.”

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Atlantic City, Massachusetts make big gains; Hotel misery

Casino executives in Atlantic City continue to plead poverty (to a dwindling amen corner) when it comes to poisoning their employees with secondhand smoke. In the meantime, they’re pocketing business hand over fist. Last month saw a 43% catapult over February 2021. And even when compared to supercharged 2019, casino revenues were still 8% higher. The Boardwalk grossed $212.5 million, $154 million of that from slots on 7% higher coin-in than three years ago. Table games contributed $57 million, and both slot and table winnings accelerated from January.

Except for the Tropicana ($17 million, +8%), all casinos were up by double digits from last year. Borgata was business as usual: $53 million and a 43% jump. As one would expect, the biggest percentage gainers were Hard Rock Atlantic City ($37.5 million, +58.5%) and Ocean Casino Resort ($30 million, +58%) but Bally’s Atlantic City posted strong comparisons too ($11 million, +54%), despite being in last place. It lagged the Golden Nugget ($13 million, +48%) and Resorts Atlantic City ($13 million, +44%) among the grind joints.

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AP Moves Away from the Casino

“AP” stands for “Advantage Play,” which basically means using your wits to gain an edge. These may be found in and out of the casino. Squeezing every last penny out of a video poker machine is not very useful if you waste dollars elsewhere.

Here are a few AP moves I’m fond of, in no particular order. I’m sure you have others:

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Empire State greed; Brady betting brouhaha

Wow, inflation really is spiraling. When last we checked (i.e., yesterday), a New York City casino license was going for $500 million. However, if some state senators get their way, that not-inconsiderable price tag will rocket to $1 billion. According to a senatorial state budget, snuck out on Sunday, New York State “shall determine a licensing fee to be paid by a licensee within thirty days after the award of the license which shall be deposited into the commercial gaming revenue fund; provided however that such licensing fee shall be no less than one billion dollars per license.” The Assembly has put no dollar amount on the license.

You have to wonder: If that’s the price of admission, is it worth it? Should MGM Empire City and Resorts World New York just stick with VLTs? Not to worry, senators have an incentive for them to pony up, essentially guaranteeing them licensure: Lawmakers would have to “consider private capital investment made previous to the effective date.” In other words, capex investments would be discounted from the license price. Expect Las Vegas Sands and others to cry foul.

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New York $tate of mind; DraftKings gets rabies

Courtesy: Shutterstock

OK, so New York State sports betting “slowed slightly” last month. Big deal. After all, there weren’t five weekends of NFL action, for starters. What’s more newsworthy is the $1.5 billion in handle that Empire State online sports betting whipped up. Admitted PlayUSA‘s Mike Mazzeo, “As big as the Super Bowl is, it is still just one game. And a slowdown in the immediate aftermath of the game is to be expected everywhere.” Besides, PlayUSA is already predicting $3 billion in nationwide wagers on March Madness, so the minor lull will be brief. New Yorkers bet online at a $54.5 million per day clip, and out of a $82.5 million gross, books kept $40.5 million (less promotions) as the state racked up $42 million in taxes … although Assemblyman Gary Pretlow (D) is making noises about a tax cut, which might actually enable New York OSB operators to post a profit.

DraftKings was second in handle ($387.5 million) but first in revenue with $30 million. FanDuel flipped the stats with handle of $568 million but only $23 million in winnings. Former leader Caesars Sportsbook took a tumble, with handle of $323.5 million and revenue of $20 million, a big comedown from January’s $59 million.

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Decline of the Golden Nugget?; Bluhm gets Chicago boost

On March 7, our Atlantic City correspondent wrote to us, “Who took the slot machines since yesterday? They even got rid of two of the four “vanity’ Tilman Fertitta dollar Billionaire Buyer machines. (I never saw anyone at those machines). It was lightly attended as the next photo indicates.” (Borgata, by contrast, was “very busy.”)

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