Author: David Mckee

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.”

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.”

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.

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.”)

Ohio casino revenues were up 13% from 2021, yielding $179 million in player losses. Slots-only MGM Northfield Park posted a $22.5 million haul, up 17%, while Jack Cleveland vastly expanded its table game inventory and saw table play rise 24.5%. The downtown casino grossed $20 million, a 10% gain, while Jack Thistledown inched up 6% to $14.5 million. Hollywood Toledo made $18 million, a 3% nudge, and Hollywood Columbus crept up 5% to $18.5 million. Hard Rock Cincinnati leapt 31% to $19 million, Scioto Downs climbed 13% to $18 million and Miami Valley Gaming vaulted 29% to $17.5 million. Belterra Park was up 5% to $7 million, while other outlying racinos prospered even more. Hollywood Dayton gained 7% to $12 million while Hollywood Mahoning Valley‘s 13% jump was good for $12.5 million.