Don’t mess with the Seminoles

Well, the feckless Florida Lege courted disaster—and got it. The Seminole Tribe, lacking a new compact, is cutting off revenue-sharing payments to the Sunshine State. We’re talking serious dollars: $321 million last fiscal year. The Seminoles have enormous economic clout and aren’t shy about wielding it, which may be the only language Florida politicians understand. According to tribal attorney Barry Richard, a promised crackdown on non-Seminole blackjack “absolutely did not occur … Actually the state stopped all enforcement efforts. And as you know, the Session ended without the Legislature doing anything … There was a negotiation that resulted in some agreement in principle between the Tribe [and the Senate] but nothing was completed.”

This is the second year in a row the Lege has failed to pass an omnibus gambling measure. There was only a certain amount of patience that could be expected from the Seminoles. The latter also wants to see the state crack down on pre-reveal games and black-market slots in the Jacksonville area, something that has not been forthcoming. “But if the state stops the infringement, then the Tribe is obligated to resume payments,” said Richard, holding out a nine-figure carrot. The state is going to feel the stick when it tries to make its next budget pencil out.

* Pennsylvania sports-betting numbers are in and $37 million was wagered at Keystone State sports books. Only walk-up betting was permitted during April, leading PlayPennsylvania.com analyst Jessica Welman to observe, “The launch of online sports betting will give the first real window into the overall strength of the industry. Online sports betting will ultimately transform the market and put it more in line with Nevada and New Jersey, the country’s two largest sports-betting markets.” Revenue from wagers topped $4 million, of which $1.5 million flowed through to state coffers. Rivers Casino was tops in handle, with just over $8 million but it and second-place SugarHouse were equal in revenue: $871,753. Parx Casino ($7 million handle) made the most revenue, $907,298, while handle was $4 million at Hollywood Casino at Penn National Race Course, $3 million at Valley Forge Resort Casino‘s FanDuel sports book and just under $3 million at Harrah’s Philadelphia. All in all, a good second month for the state, considering that March Madness was behind it.

* First-quarter numbers from Macao were swings and roundabouts. Galaxy Entertainment lost 2% of market share, which Sands China picked up. Mass-market table revenue was up 11%, while VIP gambling revenues were down 14%. Broken down by mass-market play, Sands held a Macao-leading 31%, distantly followed by Galaxy (18%), Sociedade de Jogos de Macau (16%), Melco Resorts & Entertainment (14%), Wynn Resorts (12%) and MGM Resorts International (9%). We can count on everyone to keep quiet and count their money vis-a-vis President Xi Jinping‘s barbarous and genocidal human-rights policies, lest it ruffle their chances for getting their concession renewed.

* Could this be the nudge that pushes U.S. casino companies into the Philippines? In a report from Morgan Stanley analyst Praveen Choudhary said the Filipino market was growing at a 15% rate compared to Macao’s projected cash flow growth of 4%, and 4% gaming-revenue growth in Las Vegas. However, live streaming of casino games and VIP junketeering is driving much of the archipelago’s growth, as is proxy betting, which is forbidden in Macao. Choudhary’s company of focus, Bloomberry Resorts, also posted very volatile profit and VIP-play numbers, which should give outside operators pause before they leap into this Wild Wild East of gaming.