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Make theirs Manhattan: Hochul plays hardball

Representatives of New York City‘s ritziest borough have made it abundantly clear that they don’t want a casino in Manhattan. But it appears that Gov. Kathy Hochul (D) is going to impose one on them, public appetite be damned. Perhaps the most in-your-face idea being floated is a casino atop Saks Fifth Avenuedirectly opposite St. Patrick’s Cathedral. In what’s no April Fool’s joke, the state budget would be approved tomorrow and with it three downstate casinos at a license fee of $1 billion each. Big Gaming has spent $300,000 on lobbying Albany and it would appear that money talks loudly up thataway. Hochul is also indebted for election dollars to the Hotel & Gaming Trades Council, whose position on the issue you can guess.

“These are jobs that pay $36 an hour, have free family health care and have a pension plan. So they are in dire straits because many of them have been out of work for two years without any immediate prospect of comparable employment,” said union President Richard Maroko. Other receptive ears include New York City Mayor Eric Adams (D), who’s on board with the casino-in-Manhattan concept and has been dickering with Las Vegas Sands. (Adams is no stranger to Monaco, by the way.) The high-roller pitch for Saks flipped the allegiance of state Sen. Liz Krueger (D), who says a casino is now okey-dokey with her as long as it’s soaking the upper class rather than the working man. “There may be support in some parts of the city for siting a casino,” she backpedaled. “I’m not so sure that my district in Manhattan [the Upper East Side] would be open to one.”

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Baccarat constrains Strip; Sports betting tsunami ahead

Withered baccarat numbers meant that the Las Vegas Strip had a muted February, only a percentage point above 2019. Players dropped $599 million (-44.5%) of which the house won just $62 million (-52%). That offset a bonny month at the slots, where Strip casinos kept $336.5 million (+26.5%) on coin-in of $4.3 billion (up 32%). Non-baccarat table games gained only modestly (3.5%) to $200.5 million on 25% more wagering. By contrast with this near-stagnation, albeit at high levels of play, on the Strip, locals casinos shot 19.5% past their 2019 mark to $223 million. Downtown hopped 19% to $69 million (remember, this is a comparison to a pre-Circa era) and Reno leapt 37% to $62 million. Passenger loads into and out of Las Vegas, by the way, finally caught up with pre-Covid demand, hitting 107% of last year’s mark. While barely 100,000 of them were international travelers, that latter metric was an exponential increase.

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Up and down the Boardwalk

Since we’re heavily engaged bringing the next issue of Casino Life Magazine into safely harbor, we’re reaching out to our East Coast bureau for another Atlantic City photo essay. Above, business looks pretty good at Hard Rock Atlantic City. Note the distinctive “guitar pick” inlay on the tiling.

Despite very pleasant weather outside, Ocean Casino Resort evidently had no trouble luring players to its gaming floor.

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Coupons at Golden Gate

I decided to use the coupons for Golden Gate in the Las Vegas Advisor Member Rewards booklet. There were three that were of interest to me — $25 match play (worth $12 or so); first blackjack pays 2-to-1, up to $25 (worth about the same); and playing $10,000 in coin-in within 24 hours on video poker gets you $100 in free play. (We’ll talk about how much that is worth.)

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Barley’s leaves a bad taste; Woe is Star; Mega-Jottings

When a casino is named Barley’s Brewing Co. you’d expect to get a decent glass of suds there. Not so. Las Vegan Lon Enwright is $8 million richer—but physically damaged beyond price—after being served cleaning fluids instead of beer (the taps were in the process of being flushed and the facts are not in dispute; there is even a hint of employee malice). The former Strip wine steward has lost his sense of taste, suffers from stomach and esophageal ulcers, and is at increased of risk of cancer as a result. Literally adding insult to injury, Barley’s owner Station Casinos offered Enwright a piddling $300,000 settlement. A Las Vegas jury thought differently and awarded the plaintiff $8 million in damages. Station hasn’t said what it will do but if it’s got any decency it will pay up. However, given its “contumacious” character, we’re not hopeful but appeal to the better angels of CEO Frank Fertitta III‘s nature.

Star Entertainment is feeling the heat Down Under. CEO Matt Bekier has resigned as the government continues to investigate alleged breaches of anti-money-laundering and anti-terrorism laws. Australia has had somewhat of an anything-goes approach to the casino biz, so Bekier falling on his sword represents an inevitable reaction to this over-lenience. Last week, Crown Resorts was deemed “unfit” to operate Crown Perth (shown) but allowed to run it for the next two years under state oversight. As always, Aussie regulators know how to send a mixed message to offending casinos.

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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.

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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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