Caesars bets on Hoosier tracks; Trump precedent revisted

Centaur Gaming, benefactor of Mike Pence (not that it did them any good), is back in the news. Caesars Entertainment already owns the two most lucrative casinos in Indiana, is doubling down on its commitment to the Hoosier State. By acquiring Centaur’s two racinos, Caesars gains a mid-Indiana presence, one with room to grow. Before moving on to bigger things, Pence made it clear during the last round of gaming legislation that he didn’t want table games at the racinos. Should they become eligible for tables in 2021, Centaur’s revenue has room to grow. The company is paying $1.7 billion for the two tracks, a figure that denotes a great deal of optimism for their cash flow (as much as $25 million a year with table games added). The duo already banks $401 million a year in slot revenue.

Caesars is paying a sizeable premium for Centaur’s assets — over 10X cash flow, so CEO Mark Frissora may be picking up where spendthrift predecessor Gary Loveman left off. At the very least, he’s clearly hoping players at Indiana Grand and Hoosier Downs sign up for Total Rewards, rack up mega points and head to Indianapolis’ nearby airport, to cash them in in Sin City.

As for Frissora’s ventures farther afield, they may be paying off in Brazil. Pro-casino Federal Deputy Herculano Passos says he has “the necessary votes” to pass enabling legislations. If he’s right, expect Caesars to be one of the first companies across the transom.

* Hell hath no fury like a British Airways passenger ignored. Fliers to Las Vegas had their peace of mind disrupted by a loud rasping, buzzing noise that went on and off, every fifteen minutes. If that wasn’t enough to get on one’s nerves, oxygen masks accidentally deployed in-flight. As is so often the case, the airline was basically unapologetic. “We apologised for a temporary issue with our public announcement system that affected a small number of customers on a flight last month which was quickly resolved. [Not to hear passengers tell it!] Our highly trained cabin crew also reassured customers after a single set of oxygen masks deployed accidentally,” British Airways told The Sun.

* Donald Trump finds himself back in the gaming news, thanks to a 1993 lawsuit filed against him by a gambler seeking to recover losses incurred while intoxicated. Supreme Court Justice “Slammin’ Sammy” Alito, then on the Third Circuit Court, ruled in Trump’s favor. “State courts had not extended dram shop liability beyond injuries from drunk driving and barroom accidents and brawls, and [New Jersey] had intensely regulated casinos without imposing liability for allowing gambling by intoxicated patrons,” Alito ruled. He added, “sober gamblers can play well yet lose big, [and] intoxicated gamblers can still win big.”

Czech casino owner Leon Tsoukernik is suing Aria for gambling incurred while allegedly under the influence and might have a chance because, unlike the Garden State, Nevada doesn’t have dram-shop liability. However, Silver State gambling regulations prohibit serving “visibly intoxicated” casino patrons, so it becomes a question of whether gaming regulations trump (pardon the pun) state la. The plaintiff puts his losses “in excess of $10 million.” Perhaps Tsoukernik will take his case to the Nevada Gaming Control Board if loses in court. In whatever event, how stupid to you have to be to gamble while you’re blotto? Pretty damned stupid, I reckon.

* It’s “no” again to an additional casino in Cedar Rapids. Gaming regulators looked at three proposals and decided there was too much cannibalization in them thar cornfields. In a repeat of a 2014 scenario, the Iowa Gaming Commission nixed expansion. Left out in the cold again was Cedar Rapids Development Group, joined this time by the Wild Rose franchise, which had hoped its boutique-casino proposal would be small enough to pass muster. No such luck.

* What would have happened if the newly expanded Ho-Chunk Casino in Wittenberg, Wisconsin, had been blocked by the courts? It’s a moot question, for the tribe has been dismissed from the lawsuit brought by the Stockbridge-Munsee Community. So now the Ho-Chunk have a shiny (sorta) new casino and the Stockbridge-Munsee can only gnash their teeth in impotent fury.