Even as Chicago Mayor Lori Lightfoot (D) blunders forward with her megaresort campaign, more voices are being raised in criticism of how the Second City is going about the process. A Crain’s Business analysis determined that “Each location appears to have serious shortcomings when it comes to delivering the greatest possible benefits from a long-awaited city casino.” The conclusion is that Lightfoot is moving too fast in order to garner a quick payday for the city’s “woefully underfunded” pension system.
And the best way to do that, Crain’s argues, is to create a tourist draw, not something that leeches off of existing Illinois casinos. “Maybe a glitzy city casino would lure a few more Hoosiers and cheeseheads. But Indiana, Wisconsin, Iowa and Missouri all have plenty of casinos, limiting the potential market of day-trippers.” And, it argues, casino gambling may cannibalize existing revenue streams like major league sports and a stellar theatre scene.
“The ideal location would maximize the amount of money pulled in from out-of-town visitors while minimizing inconvenience to local residents,” Crain’s contends. Taking a page from Las Vegas, it argues in favor of putting the casino where tourists traditionally congregate (something that cannot be said for any of the locations in play except possibly the Hard Rock International one). “A casino would be most successful in close proximity to restaurants, hotels, theaters, shopping and other amenities.” Good transport access is another prerequisite—and it seems all we hear is how bad traffic is in the areas where the casinos would go.
“Unfortunately, none of the three finalists Lightfoot has chosen fit the bill particularly well. None are anywhere near Chicago’s main tourist hub on Michigan Avenue, likely owing to the difficulty of finding a large enough site there,” adds Crain’s. (Never mind heavy political opposition, too.) Bally’s Tribune? Too congested already? Rivers 78? A high-density residential district “and its proposal is tied to a larger development that won’t go forward without $6.5 billion in state backing that Gov. J.B. Pritzker seems disinclined to provide.” Which brings us back to McCormick Place, where a “casino in that area would be well positioned to tap an existing pool of out-of-town dollars among conventioneers, with less disruption for residents.” So maybe it’s time to go back to Square One.
As hotel occupancy runs at 80% and Broadway theaters are playing to 90% of capacity, Times Square is looking to some as the place to put at least one of the Empire State’s three new New York City casinos. As Times Square Alliance President Tom Harris pithily puts it, “I hope that anyone who wrote obituaries for Times Square has an eraser.” To reach pre-pandemic levels of employment and economic impact, casinos look like a quick fix. SL Green Realty Corp. is leading the make-mine-Manhattan charge. Or, as CEO Marc Holliday made the case, “the single best location for a license is Manhattan, and within Manhattan I feel the absolute best, most obvious, least impactful and most globally accepted area will be Times Square.”
At least three towers in the Times Square area could be made casino-ready, if not into Las Vegas-style megaresorts. Spillover business might be enough to jump start a half-dozen hotels in the area that are still closed. Even Planet Hollywood is coming back. Real estate is cheap now, too: Sheraton New York Times Square changed hands for $373 million. At least one casino should be enough for the market to bear.
Among the dissenters from this euphoria was columnist New York Post columnist Steve Cuozzo, who contended that Times Square was already full up, particularly with regard to leasing of office buildings. Blaming Gov. Kathy Hochul (D), as well as labor unions and real estate interests, Cuozzo lambasted the “hocus-pocus,” writing that “As daily foot traffic of 350,000 approaches pre-pandemic levels, the last thing the ‘Crossroads of the World’ needs is casino gambling.” What does it need? More and betting policing, he says. In a dig at Tilman Fertitta, Cuozzo wrote, “If visitors want to gamble, they can wager $23.99 on Bubba Gump’s industrial-grade shrimp … without getting taken to the cleaners.”
Unfortunately, Cuozzo falls back on stale anti-gambling arguments, falsely asserting that Atlantic City casinos “went belly-up … where taxpayers are having to bail out several under-performing properties.” Also, gambling is regressive taxation that preys upon the poor, blah blah blah. We’ve heard all this stuff a million times. While Manhattan is our favorite place on earth and we are loath to see casinos in an already crowded Times Square, we’ll be damned if we side with canards like these.
Cuozzo is on firmer ground when he points out that Times Square has become a magnet for Roku, Tik Tok, Hard Rock Hotel and Touro University … as well as a mainspring of crime in the streets, which is up 20%. “The peril extends beyond NYPD statistics. Although the area isn’t the open-air drug market and mugging ground of 30 years ago, any stroller, office worker or tourist can see and smell (thanks to pot everywhere) the menace,” grumbles Cuozzo. Either way, casinos or no, the cash magnet that is Times Square will require a high police profile as it continues to evolve.
Sheldon Adelson wasn’t alive to relish it but Las Vegas Sands finally prevailed over erstwhile Macao partner Asian American Entertainment Corp. A Macanese court ruled that Marshall Hao‘s company wasn’t entitled to $12 billion in damages and reportedly chastised it for acting in bad faith. Sands and AAEC were splitsville in 2002, before Sands’ brief alliance with Galaxy Entertainment, after which Adelson went it alone. The case has been on again and off again for the past 15 years, with Hao seeking a giant slice of Sands’ profits. Hao’s argument was that had he not partnered with Adelson, he’d have received a Macao gambling concession of his own. (A Taiwanese getting a piece of the Macanese action? Not likely.) While he may try another tack, Hao is out of the picture for now.
In more good news for Sands, China has eased its Covid-testing requirements, which should mean more tourist traffic for a casino enclave that desperately needs it. To say that the April revenue numbers were dismal would be an understatement.
Is it curtains for the Tropicana Las Vegas? The Oakland Athletics are said to still be keen on the Las Vegas Strip site for a stadium. Or as Gaming & Leisure Properties CEO Peter Carlino told Wall Street analysts, “It’s been widely publicized that the A’s are looking at this site. They’ve looked at others. I think they—I think—it’s safe for me to say that they have a very, very strong interest in our site if the transaction can work to their advantage.” One sticking point is the $275 million subsidy that MLB Commissioner Rob Manfred wants for an A’s stadium. Nevadans are normally chumps for that sort of handout but Gov. Steve Sisolak (D) is trying to hold the line for a change. Also, with multiple other Vegas Valley sites in play, Carlino isn’t assuming that his will get the nod. Besides, Bally’s Corp. would be left without a chair when the music stopped playing, having paid GLPI megabucks to use the Trop as its debut vehicle on Strip. Carlino assured investors that he would “facilitate something bigger, better for them and for us” but that’s empty talk when you don’t own another Strip location.
Sports betting finally got through the Massachusetts state Senate but not without differences from the House version, both significant and picayune. As an example of the latter, the Senate bill would not allow the BetMGM logo to grace Fenway Park. (The big MGM Resorts International sign would be permitted to remain.) Despite state Sen. Karen Spilka‘s tortoise-powered propulsion of sports betting through the upper chamber, it passed unanimously. Now the two houses will have to work out whether or not collegiate sports betting will be permitted (House yea, Senate nay) and what the tax rate will be.
The Senate version also gets out ahead of all the rest of the country by imposing a whistle-to-whistle ban on sports betting ads during games. This has been popular in the United Kingdom but has never been tried in the U.S. before (as a deterrent to problem gambling). Gov. Charlie Baker (R) reiterated his support for sports wagering without tipping his hand as to which version of the legislation he favored. They don’t call him Cautious Charlie for nothing.
Bad news for Resorts World Las Vegas: Über-headliner Celine Dion‘s muscle spams have forced her to push a European tour into 2023. Although only 54, Dion’s debility has truncated one of the most prolific careers in show business. Lamented the Canadian chanteuse, “To be on stage, I have to be on top of my game. To be honest, I can’t wait, but I’m not quite ready yet … I’m trying my best to come back at 100 percent to get on stage, because that’s what you deserve.” Dion is no drama queen and unlike the last-minute posturings of Adele, we think this can be taken at face value. Resorts World has no shortage of Dion alternatives, but to be without the linchpin of your entertainment regimen cannot be enviable.
Jottings: Chalk up another one for Derek Stevens. He’s got a new slogan for Circa and it’s a winner—”Bright Lights and Late Mornings” … As mega-drought continues to envelop the Southwest it’s gained a dire new symbol in Lake Mead. The water level has so low that the lake’s original intake valve to Las Vegas is now sticking out impotently above the surface. “We’re kind of in some uncharted territory, socially and economically,”said Dartmouth College professor Justin Mankin, as mandatory water-use curbs are coming … Flying under the radar, Kansas has approved retail, online and mobile sports betting, which Gov. Laura Kelly (R) is anticipated to sign. The endgame is to scare up enough tax money to subsidize the relocation of the Kansas City Chiefs to the Sunflower State … Although she’s fighting an uphill reelection battle, Sen. Catherine Cortez Masto (D) skipped out on the groundbreaking of Aristocrat Gaming‘s new plant in Henderson. Bad move. Sen. Jacky Rosen (D) found time to attend … Crown Resorts has punted the shareholder vote on Blackstone Group‘s takeover offer to May 22. No, Crown isn’t getting cold feet: Australian regulators need more time to perform due diligence on Blackstone, which is squeaky clean compared to Crown … If your life’s ambition was to gamble in the India state of Meghalaya, congratulations. Casino gambling has been OK’d—but only for tourists … The Eastern Band of Cherokees continues to expand its empire with two new casinos. Don’t get overly excited: They’ll be satellite facilities budgeted at a grand total of $90 million …
Rivers Philadelphia has adopted a smoke-free policy, the second casino in the Philly area and third in Pennsylvania to do so. Bravo! … Aria is celebrating its 10th anniversary with a makeover of its suites and villas. Explains designer Richard Riveire, “Part of what we were thinking was that maybe we should take a step back and think, ‘How do we connect in a broader sense of the valley and what that landscape is like, what the desert is like?’” … Caesars Entertainment has tapped Baltimore-based Whiting-Turner to build its Danville, Virginia resort. When finished it will feature a very low-profile casino and a hotel tower … Congratulations to FanDuel on becoming an official sports-betting partner (as opposed to a DFS one) for the New York Yankees. According to one report, “FanDuel will be permitted use of New York Yankees’ marks, as well as gaining premium VIP hospitality accommodations at Yankee Stadium along with integrated signage at right-field and behind home plate during television broadcasts.”
I read Cuozzo’s column. The subsidy comment is utter nonsense.