Cuomo abandons N.Y. casinos; Legal brawls in Atlantic City

“Cuomo is paying no attention to us. He’s outlawed live bands. He’s banned dancing at wedding receptions. But he’s allowing the VMA Music Awards to take place in New York City, which was the epicenter of Covid,” said one front-line worker. “He granted clemency to the celebrities, but if we leave the state, we’re quarantined. He has nothing to say except, ‘Casinos aren’t essential.’” The workers have found receptive hearings from the City of Saratoga Springs and the Saratoga County Board of Supervisors, both of which have officially called for casino reopenings. But what does that count against a governor who’s perpetually out to lunch?

Further down the East Coast, Borgata has filed suit against Ocean Resort (although the actual paperwork was submitted in Nevada, perhaps in a bit of ‘forum shopping’). It accuses Ocean of having “poached” six marketing execs with knowledge of Borgata’s high-roller database. They allegedly had inside info on players who were flown in on Borgata’s corporate jet and laid down anywhere from $1.5 million to $4 million in wagers apiece (or $25 million a year). Says our source, “Silly details include non-compete agreements, ‘secrets’ including when MGM Borgata changes the gaming rules for these high rollers, and the alleged refusal of one exec to give MGM Borgata their phone with all the players personal preferences.” According to Wayne Parry‘s Associated Press reportage, the dispute phone cosseted whales’ “personal cellphone numbers, gambling preferences, likes and dislikes including favorite foods and beverages, how much the casino might be willing to discount large losses for them, and instances in which the casino might change the rules of some games for these players.”

Bending the rules for certain players is bad PR and we’re surprised MGM Resorts International would air this dirty laundry in public. At least the suit pays Ocean the compliment of being “indisputably Borgata’s direct and primary competitor for high-level casino customers in Atlantic City.” As Parry notes, Hard Rock Atlantic City might take umbrage at that.

Elsewhere on the Boardwalk, the Claridge Hotel and Atlantic Club aren’t going down without a fight regarding the New Jersey Casino Control Commission‘s suspicious decision to maintain anti-gaming deed restrictions imposed on them by erstwhile owner Caesars Entertainment. Owners of the Claridge and Club accuse the NJCCC of “arbitrarily, capriciously and unreasonably” acting in Caesars’ behalf. Interestingly, Showboat owner Bart Blatstein, who explicitly wanted a casino but is also deed-restricted, is staying on the sidelines. For its part, Caesars initially assented to lifting the bans but something untoward happened behind closed doors and competition was squelched.

Nevada Gov. Steve ‘Spicy’ Sisolak (D) has put his foot in it again. Bootleg footage captured him dining without social distancing of any sort (just feet away from the tiny bandstand) at Pizzeria Monzú. The guv’s hypocrisy is underlined by the fining of two Henderson bars for promoting live entertainment of the sort that Spicy Steve enjoyed at the pizzeria. The rules governing [sic] live shows seem to be all over the place. Ellis Island Casino can’t offer its famous karaoke but Downtown‘s Don’t Tell Mama can. As for his own conduct, Sisolak’s rather weak defense was “Ambient music, as it is called, where people to not go buy tickets to go to them, where people do not pay admission, where that’s not the purpose of the visit is allowed in a restaurant. That’s what happened. We went for dinner, we finished up our dinner, and music played for a moment. We left. That’s allowed.” At least if you’re governor.

Mount Airy Casino just got a $50 million bailout from FNC Bank, which oh so happens to be chaired by former (mobbed-up) Mount Airy owner Louis De Naples. His son, who owns a share of Mount Airy, is vice chairman of the bank, in an incredibly cozy bit of self-dealing. In 1978, De Naples Sr. was convicted of defrauding the federal government out of $500 million in hurricane-relief monies. The Mount Airy deal may have violated banking regulations and has been described as “a disservice to the taxpayers if the proper underwriting and vetting procedures were not followed.” At minimum, a state investigation seems paramount. This arrangement simply doesn’t pass the smell test.

Jottings: Quietly, without fanfare, The Rio has announced a Sept. 10 reopening date. This eases our fears it would never open again … In what has to be a horse racing first, SportsBLX is making an IPO on Kentucky Derby entrant Max Player. Shares are being offered to 600 wannabe owners at $200/share. Let the pearl-clutching commence … In a boost for Atlantic City, Gov. Phil Murphy (D) has lifted the fatwa on indoor dining, effective Sept. 4 … Wynn Sports and Scientific Games are expanding their mobile-wagering partnership from New Jersey to Colorado and Indiana, at unspecified dates. That’s quite a turnaround from the days when Steve Wynn swore off Internet gambling … Wynncore is taking advantage of social distancing to score bonanzas on poolside cabañas this weekend, with rates running from $2,000 to $5,000. As Scott Roeben observed, “It appears some guests will be socially distanced from their cash at Encore Beach Club.”

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