In a stunning reversal — and a major victory for Sheldon Adelson — American Gaming Association President Geoff Freeman is ending the lobbying group’s support for Internet 
gambling. Freeman calls it “an issue that the association cannot lead on,” so the AGA is advancing to the rear. “One of the things I’ve learned in this industry is we are extraordinarily competent at shooting at one another,” ran Freeman’s mea culpa. “The snipers in this industry are of the highest quality, and if you let that be the focus, we’ll kill each other.”
While Adelson tap dances on Freeman’s skull, it falls to individual companies to continue the fight. At Caesars Entertainment, CEO Gary Loveman has been well to the fore. And while MGM Resorts Entertainment had seemed to signal neutrality a few weeks back, senior veep of corporate communications Clark Dumont was sent forth to proclaim, “To protect consumers, MGM Resorts supports the federal legalization of Internet poker as well as state-by-state regulatory efforts.”
Considering that Freeman had testified in favor of ‘Net betting before the U.S. House of Representatives, today’s news represents a humiliating climbdown. Unlike predecessor Frank Fahrenkopf, Freeman had taken a hard-charging, activist role at the AGA and now he’s paying the price. Saying that the U.S. government simply doesn’t understand whys and wherefores of currency movement in Macao, Freeman said his new, less-controversial priority would be reassuring Uncle Sam of “our combined commitment to antimoney laundering policies.”
* Caesars is loading the slots into Horseshoe Casino Baltimore and giving media advance access. It will take all the company’s ingenuity to avoid being taxed into oblivion. In addition to a 61% levy on slots and 20% on table games. there’s a 9% tax on liquor sales, a 6% meal tax and a 3% impost for renting city-owned land. (Whew!) Meanwhile, that money is being recycled into economic development, particularly in trying to lure higher-tech businesses to the Free State.
However, with the U.S. gambling market at a saturation point, the Las Vegas Review-Journal‘s well-traveled Howard Stutz isn’t buying the casino = economic resurgence argument. Credit Suisse analyst Joel Simkins also warns of economic fatigue pulling the casino industry down, telling Stutz, “With the U.S. economy on firmer footing and potentially gaining momentum through the remainder of the decade, the need for casinos as a means to stimulate revitalization could lose momentum in many untapped markets.”
Congratulations to Stephen Cootey, newly promoted to CFO at Wynn Resorts. The latter lured him away from Las Vegas Sands and Mr. Cootey’s ascent within Wynn has since been rapid. Clearly, a man to watch.
