Black-market operators of slot routes in Missouri could achieve legitimacy next year—with the help of two out-of-state providers. Illinois‘ leading slot-route purveyors, J&J Ventures and Accel Entertainment, bitter rivals in the Land of Lincoln have put aside their differences to join forces in a PAC. Its goal is “to funnel campaign contributions to lawmakers who have been unable to agree on a way to legalize Missouri’s current unregulated marketplace.” At least they’re not being coy about it. The entity is called Mo Coalition for Video Lottery PAC. J&J is an old hand at Missouri politics, being a frequent backer of Gov. Mike Parson (R). It’s also been financing the aspirations of other Show-Me State politicians.
J&J describes its intended business partners as “truck stops, restaurants, bars, fraternal organizations, veteran organizations, and more.” Many of the aforesaid already host black-market slots, so J&J is offering them a blanket amnesty in return for their support. Accel is also pretty “george” having pump-primed political coffers in Missouri to the tune of $130K. If the two companies get their wish, anyplace with a liquor license would be qualified to host slots. This would, of course, be a disaster for casinos, as we have been in Illinois, where J&J and Accel are bleeding them dry.
Indeed, the state’s 13 casinos are lined up against the proposed law, preferring to diversify via sports betting. Meanwhile, Torch Electronics has been gleefully lighting up Missouri with black-market slots, much to the grief of prosecutors. Torch, which has heavy-caliber lobbyists of its own, is working at cross-purposes with J&J and Accel in its own effort to have the status quo ratified into law. Torch and partner Warrenton Oil have lubricated the gears of the state’s political machine to the tune of at least $350K.
Slot routes have a champion in state Sen. Denny Hoskins (R), who argues “Currently, Missouri is the Wild West of illegal gaming devices. Nobody knows if taxes are being paid, nobody knows what the payouts are and nobody knows if the consumer is protected. If this legislation passes, all of those problems with the current state of affairs will be addressed and solved.” Hoskins’ bill is half-carrot, half-stick as it contains a provision whereby businesses would lose their right to sell state lottery tickets if caught with an unlicensed slot machine on their premises. If Hoskins thinks Missouri is the Wild West of slots now, just wait until his bill passes.
Michigan Internet casinos slumped a tiny bit last month, grossing $107.5 million, while sports books netted $58.5 million—actually $34.5 million after lavish promotional outlays (36% of the take) are subtracted. FanDuel was the revenue champ with $18 million, outpacing BetMGM‘s $13 million and DraftKings‘ $13 million. Further back were the Grand Traverse Band ($3.5 million), Barstool Sports ($3 million) and PointsBet ($1.5 million). Eight other online operators made negligible amounts. Walk-up sports betting was strongest at Greektown Casino ($2 million), with MotorCity booking $1.5 million and MGM Grand Detroit ($1 million). Deutsche Bank did not think it worth breaking out the $103 million made by Detroit’s brick-and-mortar casinos but it was surely MGM, MotorCity, then Greektown. It always is.
Nostalgists, prepare to enjoy The Mirage while you still can. Hard Rock International CEO Jim Allen plans to “completely gut” the storied (but venerable) Las Vegas Strip icon. “MGM has just really kept it in great condition, but certainly I think we all know that it’s extremely dated,” Allen told the Nevada Independent. “You will see concrete on the floor and concrete on the roof and everything else will be brand new. Frankly, some of the structure will change. For the existing 3,000 rooms, it’s our plan to gut them completely, bathrooms and everything, and start over.” Allen was all “no comment” on the fates of the dolphin habitat and Siegfried & Roy’s Secret Garden, other than to say “Certainly, we want to protect [the inhabitants] and make sure that their lives as animals are as comfortable as they are today.” More revelatory was the comment of CBRE gaming analyst John DeCree, who said, “Hard Rock will be able to do this right without concern for short-term return on investment hurdles.” Like we said, it’s a loss-leader.
Jottings: Having eked out a narrow loss in November’s election, Urban One is back for a second bite of the apple. Richmond City Councilwoman Reva Trammell is circulating a petition to get Urban One’s casino onto the next ballot. Urban One had no comment … Another win for smoking opponents: Henceforth Harrah’s Cherokee and its sister casino in Murphy, North Carolina, will be smoke-free. “It’s a national thing that people are paying attention to—you can’t smoke in restaurants anymore, airplanes, none of that. Smoking is an addition. It’s an option and it’s a killer,” said Rep. Teresa McCoy … Rush Street Gaming is making a play for New York City. It’s responded to a request for proposals, along with Wynn Resorts, Universal Entertainment (as in Okada Manila), Genting Group, Las Vegas Sands, Hard Rock International and Bally’s Corp. A more delusional applicant, the East River-facing Water Club, pitched itself as the place where “maybe the next James Bond can play a hand of poker in New York.” 007 doesn’t play poker. Baccarat is his game of choice.
Quote of the Day: “It is better to know some of the questions than all of the answers.”—author James Thurber