Private-sector gambling operators got some very bad news from the District of Columbia Circuit of the U.S. Court of Appeals. The latter, in a very broad construal of the Indian Gaming Regulatory Act, ruled that the Seminole Tribe—and by implication, many others—may have Internet gambling and online sports betting. It’s a decree that could “dramatically alter the national gaming landscape,” according to Daniel Wallach, unless SCOTUS intervenes to restore the status quo ante. The appellate court found that locating computer servers on tribal lands satisfies the legal definition of ‘tribal gaming,’ which now extends throughout cyberspace, effective immediately.
As attorney Wallach told the Miami Herald, the court’s finding means Native Americans “will be able to control the most lucrative forms of gaming on a statewide basis—to the detriment of non-tribal gaming operators.” That’s sweet revenge, no doubt. As the three-judge panel put it, “IGRA does not prohibit a gaming compact—which is … an agreement between a tribe and a state — from discussing other topics, including those governing activities ‘outside Indian lands.’ In fact, IGRA expressly contemplates that a compact ‘may’ do so where the activity is ‘directly related to’ gaming.”
While the Seminoles may be near-term winners in Florida, others who will derive bank-shot benefits from the court’s liberal interpretation are Fontainebleau owner Jeffrey Soffer and failed casino magnate Donald Trump. Both were juiced into Miami-area casino licenses as a condition of passage of the Seminole compact. (Soffer bought his the old-fashioned way, through campaign contributions. As usual, Trump freeloaded.) Gov. Ron DeSantis (R) isn’t completely out of the woods yet. The compact, sayeth the appeals court, should be litigated at the state level, so undoubtedly we’ve not heard the last of this.
Casino revenues continue to soften nationwide, with Ohio down 3% last month, albeit still a hefty 16% above where things stood in 2019. The statewide gross of $196 million was mostly sustained by the racinos, as traditional casinos dipped 7%. MGM Northfield Park even gained 5% to lead the Buckeye State with $25.5 million but the standout performer was Miami Valley Gaming, up 6% to $20 million. Hard Rock Cincinnati took it hard, tumbling 10.5% to $19.5 million, and worse off was Hollywood Toledo, plummeting 13% to $18 million. Jack Cleveland slipped 7% to $21 million while Hollywood Cleveland defied the trend by hopping 2% to $22.5 million.
Of the remaining racinos, Belterra Park fared worst, plunging 11.5% down to $7.5 million. Scioto Downs brought home $20 million (-4%), Jack Thistledown was flat at $16 million and the two Hollywood-branded tracks were fairly steady. Hollywood Dayton was flat at $13 million and Hollywood Mahoning Valley ceded 1% to gross $14 million. Sports betting engendered $58 million on $446.5 million in handle. $23 million went right back out in promos. FanDuel outdueled DraftKings, $24 million to $18 million, while also-rans included promo champ Bet365 ($4 million), BetMGM ($4 million), Caesars Sportsbook ($2 million) and Barstool Sports ($1 million).
Sports wagering vaulted 64% year-over-year in Arizona, where operators grossed $48 million on $535 million in handle. FanDuel was again first, with $21.5 million, lagged by DraftKings’ $13.5 million, BetMGM’s $7.5 million and Caesars Sportsbook’s $2.3 million. Barstool Sports, BetRivers and WynnBet were all sucking fumes.
Needing to draw more heavily from the Philadelphia area to feed Bally’s Atlantic City, instead screwy Bally’s Corp. continues to bombard the City of Brotherly Love with promo offers for … Bally’s Vicksburg?!?!? Yes, if you fly into the small city in the Deep South, you too can enter the Independence Day ‘Swipe and Win,’ try for a $20,000 rewards drawing or play for a gift of the month, maybe a 16 oz. floating flex cooler (how very George of them). Meanwhile, the pictures of the food at Southern Bites sent us running in the opposite direction. Bally’s, how are you ever going to be taken seriously with daffy marketing like this?
Meanwhile in Atlantic City, the Golden Nugget has opened Dos Caminos, so three cheers for them. No word on the quality of the food yet. As for Bart Blatstein‘s water park at the Showboat, we were guilty of premature enthusiasm. Its opening has been pushed back to July 7. The state hasn’t signed off on all of the rides yet. Too bad. A $100 million investment is going to miss a most auspicious window of opportunity. The Boardwalk could use a few more Blatsteins.
Churchill Downs is out on its ear at luckless Lady Luck Nemacolin. The ultra-low-grossing Pennsylvania casino has decided it can do better on its own than as part of the CHDN flotilla. The latter inherited Lady Luck from Isle of Capri Casinos when Isle was dismembered as part of an Eldorado Resorts takeover. Lady Luck will now be self-run by owner Maggie Hardy. The casino heiress will be getting advice from Las Vegas-based RRC Gaming Management. Gambling revenues have sharply declined under Churchill Downs’ aegis, with the casino getting minimal punch for its 600 slots and 26 tables. New management says it wants to lure high rollers. To Nemacolin? Good luck with that.
Jottings: Ex-convicts can look forward to jobs at Bally’s Chicago now—and at every other Illinois casino. Gov. J.B. Pritzker (D) is expected to sign a new law removing the stigma from hiring felons from non-gaming positions. It’s a sensible middle course … Would-be Avenir developer Larry Silverstein deserves an award for faux-naiveté. Casting his New York City casino bid as an altruistic move, he demurred, “Will it be profitable? I presume so, because generally, this has been the case with casinos at large.” Yes, it tends to be that way, Larry … On-air advertising for gambling continues to be under fire. The latest salvo comes from Australia, where Member of Parliament Peta Murphy is leading the push to ban ads during sporting events. Elsewhere in Oz, the debut experiment with cashless play in New South Wales was a flop, truncated by a cyber attack … New York State‘s Lege adjourned without approving a new compact with the Seneca Nation. That’s more the fault of Gov. Kathy Hochul (D), who really booted the ball, withdrawing her support after a potential new Rochester casino for the tribe set off a political stink bomb … Grand Sierra Resort is being sued for $15,000 by erstwhile Timbisha Shoshone Tribe chairman Jimmy-John Thompson. The latter says he was turfed out of the hotel and forced to sleep in his car after reporting smoke in his room, a report that got him fined by Alex Meruelo‘s property …
Is Bellagio back on the block? Bloomberg reports that Blackstone Group is “fielding offers” for its half-interest in the $4.25 billion megaresort. One prospective buyer is Vici Properties, which also bought MGM Grand and Mandalay Bay from Blackstone … Hollywood Aurora is definitely on the move. With only one naysayer, the Aurora City Council voted to allow the Penn Entertainment casino to begin construction at its new, land-based location opposite Chicago Premium Outlets. When completed, the new casino will offer 900 slots and 50 tables … A charitable casino has been green-lit for Concord in New Hampshire. 486 VGTs and 21 table games, plus poker, are intended for the project, tentatively slugged Imagine Casino. However, construction may not begin until the end of next year.
Ex-convicts in ‘non gaming positions’. Nice. Wonder if every guest staying over will have the same things in their luggage as they came with.