After the 9/11 attacks, New York State then-Gov. George Pataki (R) was only to push casinos through as a form of economic stimulus. Now he’s a sock puppet for Sheldon Adelson, preaching the evils of Internet casinos. He’s been parroting the two main talking points of Adelson’s jihad: terrorism and money laundering. In illogical Adelson fashion, Pataki reiterated that choosing to go to a casino to gamble is somehow a morally superior, “conscious” activity. Pataki, like Adelson, favors the dubious “solution” of sticking our heads in the sand and pretending Internet gambling will just go away. (Their naive faith in the restraining power of the physical casino is touchingly childlike and practically religious.)
Pennsylvania casinos hit the wall hard last month, with steep declines in business at many of them. An increase in table revenue at Sands Bethlehem ($35 million, gross) kept that property to a 4% decline. Rivers Casino ($28 million) posted the smallest decline, -2.5%. Only little Valley Forge Casino Resort was up, gaining 15%. Parx Casino (-7%) was the leader in revenue, with $37 million. SugarHouse (-9.5%) also suffered the effects of cannibalization in Philadelphia, down 9.5%. Harrah’s Philadelphia did a bit better ($22 million), despite a 13% decrease. Penn National Gaming‘s signature racino was off 13.5%, grossing$18.5 million. The Meadows racino grossed $18 million (-13%), while the state’s newest casino, Isle of Capri Nemacolin, added a most $1.9 million to the cause. Inclement weather is also being blamed for the uninspiring numbers.
In Massachusetts, two cities lost their bids for a tranche of that “surrounding community” cash that would come with MGM Springfield. Both Northampton and Hampden were told “no,” but the Massachusetts Gaming Commission smiled upon Longmeadow‘s application after verbal pictures were painted of significant traffic increases. Longmeadow and MGM Resorts International now have a month to reach terms or else go to binding arbitration. (The town had been requesting $1 million upfront.) Northampton was deemed too distant — 20 miles — and (paradoxically) likely to benefit from greater tourism to the region.
