Sex, drugs and Resorts World LV; Massachusetts gets serious about sports betting; Caesars wins two Freddies

Both the reputations of Resorts World Las Vegas and its president, Scott Sibella, could be besmirched by a Nevada Gaming Control Board investigation. The tentative probe stems from charges made by gambler Brandon Sattler as part of a huge bankruptcy proceeding. Sattler’s accusations include that Resorts World fast-food joint Tacos El Cabron is partially owned by David “Fat Dave” Stroj, a convicted felon, who orchestrated a multi-state, illegal bookmaking scheme and is an associate of the Philadelphia Mob. (Choice Stroj quote: “Palomar [card room] is the best way I can wash the money. I don’t have to report it. I just deposit it at the Palomar and there’s no problems for me.”) Sattler says he’s known Sibella for 20 years and has seen the Resorts World prexy use drugs.

“I met the person twice. He’s been a customer for 20 years. I don’t know him from Adam. He’s done no work at Resorts World,” responded Sibella. Those two meetings seem to have included having Sattler 86’d from MGM Grand when Sibella was in charge there. As Sattler would have it, that was the end of a beautiful friendship: “Yes, we’ve partied, yes, we did drugs together, drank together, yes we went out to eat together. Yes, we probably had sex with multiple women at the same time. We did a lot of different things together. But after that point, I’d say we were just acquaintances.”

Sattler, whose credibility leaves something to be desired, was barred from Resorts World earlier this year (showing he knows how to make enemies wherever he goes). He claims to have been a surveillance contractor at the megaresort. In that capacity, he learned of Stroj’s alleged co-ownership of the Mexican restaurant, he says. John L. Smith has unearthed at least a tangential business connection between Stroj and Tacos El Cabron. Smith, however, points out that Sattler—who gambled away money meant to pay Chapter 11 debts in a series of sessions at Wynn Las Vegas—has plenty of credibility issues. It’s his word against Sibella’s (in which case Sibella probably wins) and even if the worst is true, Sibella’s license may not be at risk. After all, Sam Nazarian was a cokehead who still got a conditional license.

As for Stroj, Resorts World issued a categorical denial in response to a damaging statement from Fate Dave’s probation officer: “David Stroj is not now, nor has he ever been, a manager or owner of Tacos El Cabron. Peter Stroj, who we have learned is David Stroj’s father, is a manager. Resorts World Las Vegas did a complete due diligence on the tenant prior to entering into the lease agreement.” And if the diligence was insufficiently due? What’s the penalty for carelessness? A big-ass fine, we suspect. Sibella also has to answer questions about his relationship with Robert Cipriani, another gambler. At present, the NGCB is only conducting preliminary inquiries and we don’t see anyone losing their license over l’affaire Fate Dave … although some apologies and six-figure checks may be forthcoming.

Peninsula Pacific Entertainment has nine lives, at least where the Louisiana Gaming Commission is concerned. By rights it should have been stripped of its license on April 18 for failing to either reopen or sell Diamond Jacks in Shreveport. But Peninsula Pacific says that it intends to sell the derelict riverboat and for top regulator Ronnie Johns that’s good enough: “DiamondJacks did file the petition timely [sic]. It’s in good order. We’re very pleased as to the work they’ve put forward to it. As you know, it has been public knowledge that they are attempting to sell their property to Foundation Gaming, based out of Mississippi. I’m not at this time able to discuss the petition that they did file this week, but I will tell you that it’s absolutely in order and it’s exactly what the board asked them to do.” Peninsula Pacific has blown through three deadlines now, with no end in sight.

With Maine on the verge of legitimizing sports betting, the Massachusetts Lege is creeping toward doing the same at tortoise-like pace. The state Senate, the lone obstacle—more accurately that would be obstructionist Senate President Karen Spilka (D)—will begin debate on Thursday. Wow, they must really mean business. They might even actually do something, although we’ll believe that when we see it. There are problems already. The Senate version bans wagering on collegiate sports, which Speaker of the House Ronald Mariano (D) calls “a dealbreaker.” He says that would effectively halve the tax receipts from sports betting. The state Senate would also forbid the use of credit cards to place wagers.

Under the Senate iteration, the state’s three casinos would get one walk-up sports book and one online skin apiece, while six more would be reserved for undesigned terrestrial and Internet (think DraftKings) operators. Five is the operative number: $5 million to be licensed for five years and $5 million to renew. Unlike the House, the Senate version is somewhat tax-greedier: 35% on OSB revenues and 20% on terrestrial betting, whereas the House would be content with 15% and 12.5%, respectively. Even that’s higher than Arizona and Louisiana, and close to Connecticut‘s rate—if nowhere near so confiscatory as New York State‘s 51%. Finally, some casino revenue currently used to prop up horse racing would be rechanneled into education. We have no beef with that.

For $52 million you, too, can own a piece of the Las Vegas Strip: a 100-room Travelodge next to Circus Circus. That works out to $26 million an acre (to be pedantic, 52 mil for 1.77 acres) and somebody is clearly not going to make the same mistake as the property owners who let 10 acres go to Siegel Group for a mere $75 million. So what’s the purpose of owning a 70-year-old, unfinished motor lodge at that price? You can’t develop anything consequential on such a small sliver of land, obviously. One potential endgame could be to put the squeeze on Circus Circus owner Phil Ruffin, who might not want to see any squatters on his doorstep. Of course, maybe you covet a “successful synergistic business” but the game hardly seems worth the $52 million toss. Since the Travelodge is wedged between the clown casino and the former Rock in Rio festival grounds, it would seem like Ruffin has little choice but to take it off their hands … although we think he’d drive a hard bargain.

Jottings: Casino revenues aren’t expected to regain pre-pandemic altitudes in Macao until 2025, which would be a bitter, six-year hiatus from the enclave, says the International Monetary Fund. The market has become a dead weight on the stocks of companies invested there … Greektown Detroit Casino is no more: It has become Hollywood Detroit, a move so inevitable we should have seen it coming. The May 1 rebrand comes after $30 million in capex, still in progress … Caesars Entertainment is the winner of two Freddie Awards, voted upon by frequent fliers and other reward-club members. Caesars Rewards took home “Best Promotion” and “Best Customer Service” trophies. Congratulations to those who made it happen, as Caesars was the only casino company to win a Freddie this year … Only one other hotel in the world shows up on Instagram more than Marina Bay Sands. And why not? Moshe Safdie‘s iconic design is unforgettable and the only great piece of architecture Las Vegas Sands has ever spawned. Third and fourth place went to Caesars Palace and MGM Grand … Tribal Elk Valley Casino in California has a new, ocean-view location and a larger facility to boot. “Larger” is somewhat relative, as Elk Valley sports only 300 slots and an unspecified number of table games.

Quote of the Day: “All I can say for Wakayama Prefecture is the abrupt end spared Governor Nisaka further anguish in a very spotty campaign to begin with, and which dimmed even further with Toshihiro Nikai’s fall from grace following the last LDP leadership contest.”—former Hard Rock International executive Daniel Cheng on Wakayama’s shambolic casino-selection process, which ended last week with a withdrawal from the contest.