There was a rumble in Manhattan on the 22nd. Proponents and foes of New York City casino descended upon a town hall to duke it out. In this corner, opposed to casinos is state Sen. Liz Krueger. In the other, favoring a megaresort is state Sen. Brad Hoylman-Sigal. “We do need to center the community and insure community members have the opportunity to have their voices heard,” said the latter, adding, “I’m going to be using my involvement with the community advisory committee … to do just that: insure that the proposals—and there are two of them in my district on the west side of Manhattan—are first and foremost beneficial to and desired by the community around it.”
Krueger outlined her position as follows: “I oppose casinos and gambling in general. I find it to be a tax on desperation, with no societal benefit and real prices to be paid. As I often say, only the house wins.” She told attendees at her town hall that they still had a chance to stop a casino in its tracks, before the Lege even weighs in on the matter.
Opponents will have to act fast, as projects are gathering momentum. The Related Cos./Wynn Resorts push has released a formal proposal for a megaresort over Hudson Yards, having reneged on a promise to build a half-dozen apartment buildings there. The revised proposal would cosset one enormous apartment building, a school, an office building, along with a casino and hotel. Down near the United Nations, a similar something-for-everyone pitch has been tossed by Soloviev Group/Mohegan Sun. It promises to put its casino below ground, out of sight (and out of mind?) and throw in five acres of parkland. 513 affordable apartments would also sweeten the pot. It would cost a staggering $18 billion, making the Wynn project a comparative bargain at $12 billion. Could either be amortized? Even in New York City? We think not.
Sports betting revenues were on a pogo stick in Arizona in December, jumping 21% to $66 million. Hold wasn’t tighter, as indicated by handle that also sprang 21% to $692 million. Free bets and promotional deductions sent $18 million out the door, as operators continue to take advantage of a tax break that expires six years after wagering went live (and slides downward over the life of the deduction). FanDuel was the prime beneficiary of punters’ business, with $29 million in revenue. DraftKings raked in $20 million, followed by BetMGM ($8.5 million), Caesars Sportsbook ($4 million) and ESPN Bet ($3 million).
What if they gave a strip club in Atlantic City and nobody came? That’s the problem facing the Casino Reinvestment & Development Authority. It’s got a defunct titty bar at 2405 Pacific Avenue near James Whelan Boardwalk Hall that it bought for $1.2 million back in 2021. The CRDA tried to auction it off last November at a starting bid of $660K. No takers. The highest bid was $370K. It looks like the CRDA is going to be taking quite a bath on that blight.
Don’t look to Mohegan Gaming & Entertainment for help. The tribal colossus is bailing on the Boardwalk, exiting Resorts Atlantic City at the end of this year. Owner Morris Bailey will have to figure out how to manage the place by himself. He put a brave face on it, saying, “Mohegan brought stability and direction to Resorts by helping to assemble a stellar management team which will remain in place. We are happy that, with Mohegan’s help, Resorts has reached a point where it is able to operate independently.” Considering that Resorts almost caught up with Tropicana Atlantic City last month, Bailey is not without reasons for optimism. Even so, we wouldn’t call Columbia Sussex refugee Mark Giannantonio “stellar” and Mohegan leaves—whilst retaining 10% ownership—without having lifted the venerable casino from grind-joint status. Is this a case of declaring victory and getting the hell out?
Tons of people must have been wagering that Travis Kelce would catch a Super Bowl touchdown. He didn’t and the futile prop bets more than made up for the underdog team winning the game … at least if you’re DraftKings. The super-bookie is now awash in cash and looking to extend its domination to the world of lotteries. In other news, Wynn Resorts got a qualified endorsement, largely on the strength of the hand it holds on the Las Vegas Strip. Investors aren’t pricing in Wynn Al-Marjan yet, which is a good idea because gambling the United Arab Emirates (more like gambling on them) is far from a slam dunk. Just ask MGM Resorts International, fresh off canceling a UAE casino plan.