Prospects for expansion of VLT gambling to the Buckeye State’s racetracks are looking slightly better now that Ohio Gov. Ted Strickland has inched his way back into contention with GOP rival Jon Kasich (left). The personable Kasich is a difficult “read” on racinos, having managed to come down on all sides of the issue simultaneously. Kasich is both for and against gambling, and thinks the racino issue needs — wait for it — further study. The slowness with which the racino question is being resolved redounds to the benefit of both Penn National Gaming and Harrah’s Entertainment, who are tightening their duopoly on gambling in Ohio. Of 11 potential venues, Penn owns four and Harrah’s three. Buying a parimutuel is definitely a gamble at this point, but anybody who wants a piece of that Ohio action will have to make that wager sooner rather than later, lest they get frozen out altogether.
An advisory question in California has the most fascinating backstory of any casino-related ballot issue this year. A former U.S. Navy fuel depot near Richmond could become a massive casino-resort on San Francisco Bay. So enamored were city fathers of the concept that they turned down $80 million upfront from Chevron (which didn’t want the project next door to its refinery) in favor of $50 million down and $20 million a year from the Guideville Band of Pomo Indians. It’s part of an intrigue-filled saga whose protagonists included (briefly) Harrah’s, prior to its takeover of Park Place Entertainment.
In the opposite corner is Thunder Valley Casino Resort, managed by Station Casinos, which doesn’t want to see new tribal competition so close to Sacramento. Other opponents include Sen. Dianne Feinstein (left), while its backers count former Secretary of Defense William Cohen and K Street lobbyist Wes Gullett amongst their number. Despite close ties between the Guideville Band and the Bureau of Indian Affairs, the project still requires an end-run around the Indian Gaming Regulatory Act of 1988. At least one hurdle it has surmounted is opposition from local environmentalists, who were mollified by the promise of $48 million in shoreline preservation. And, it must be said, the Guideville Band showed an interest in cleaning up and redeveloping Point Molate when few others did.
Pay no attention to that climate change behind the curtain. Worsening droughts could only, after, deal little more than a near-fatal blow to Las Vegas (#7 on the list of most-at-risk cities). Writes 24/7 Wall St., “A number of industries rely on regular access to water” … like casino resorts. “Some people would be out of work if these industries had poor prospects for continued operation. The other important trouble that very low water supplies creates is that cities have sold bonds based on their needs for infrastructure to move, clean and supply water. Credit ratings agencies may not have taken drought issues into account at the level that they should.” If that sounds bad for Southern Nevada it may be even worse for prospective casino megaresorts in Texas (one of Sheldon Adelson‘s most dearly cherished pipe dreams). The Lone Star State has three cities in the top (?) 10 — Fort Worth (#6), San Antonio (#4) and Houston (#2). It looks like the Dallas Cowboys aren’t the only Texans headed for a dry spell.
I am interested in what you think about Texas. I often hear mixed signals. With three out of four casino proposals for Louisiana’s final casino license placing it in Lake Charles aka a Texas market, some developers seem pretty confident that Texas is a long way off. My own feeling is that it might be sooner rather than later but definitely inevitable. Casinos are just too easily perceived as a budget fix that politicians can not pass up. Thoughts?
As long as Rick Perry is governor, casino gambling is never going to be signed into law. I’m not familiar with the makeup of the Texas Legislature, so I don’t know if it could muster veto-proof majorities. Now that Penn Nat’l Gaming is a corporate citizen of Texas (and not shy about flexing its political muscle), I’d be greatly surprised if it doesn’t start bankrolling a ballot drive with a view toward 2012. I agree with you that the economic pressure on Texas politicians will only continue to ratchet upwards.
Wants Kasich starts looking at the books here in Ohio, he’ll come around on racinos, casinos, and anything else he can tax. Severe budget problems and a ton of dollars leaving the state have been an issue for years. The state has a good gambling base, we have a ring of casinos on our borders, we just don’t get money from those.
Richmond California, the city with the highest homicide rate in the entire country. The BART reaches Richmond, so anyone from anywhere in the Bay Area can easily get there on public transportation. Diane Feinstein is an old dinosaur who long ago abandoned the people of California for corporate interests. Too bad she was not up for re-election this cycle, it would have been funny to have two Republicans run against each other!
Jinx, you said exactly what I’ve been thinking. Wait for that first budget shortfall to cross Gov.-elect Kasich’s desk and it’s just a matter of time before his press secretary says, “The governor is personally opposed to casino expansion; however …”
“The personable Kasich…”? Really? Where’d ya get that from? More than likely not from anyone in Columbus where his hair-trigger temper is well known. You obviously never heard about his profanity-laced blow-up at a poor grocery store cashier who had the nerve to tell him his credit card had been declined. Well now he will no longer have to ask the little people “Do you know who I am?” Yes, John, we know who you are — unfortunately.