Encore owns Massachusetts; Online slot players hosed

Massachusetts gaming revenue accelerated to $96 million last month, 23% higher than 2019. Encore Boston Harbor vaulted 37% to $63 million—yes, two-thirds of the statewide gross and well above Deutsche Bank‘s forecast of $55 million. Despite Wynn Resorts‘ dominance, Plainridge Park managed to add 4.5% to its 2019 numbers, grossing $12 million (Deutsche Bank was right on the money with that one). MGM Springfield didn’t exactly struggle but it was only 1% up, winning $21.5 million. Back when the Bay State was initially in play, Wynn sussed out Boston as a real gold mine and has been triumphantly ratified.

American Gaming Systems has been all over the news lately and not in a good way. 15 players are lodging complaints against the online-slot maker. What did they do wrong? Basically, they made the mistake of beating the AGS house. The latter isn’t paying, chalking up player victories to ‘a bug’ in the system, that old saw. This is the kind of thing that gives Internet gambling a black eye and AGS should definitely be investigated further than it has. In one case, player Lisa Piluso won $100,000, was offered $280 and later had that upped to $1,000, presumably AGS’ idea of being george. To us, it doesn’t matter a fig whether the AGS software was corrupted (how very confidence-inspiring) or not. Players expect a game to be on the square and should get one that is.

“I’m an experienced online player, and I was shocked when AGS officials, including the company president, told me they weren’t going to pay, even when I showed them the screenshot that I made of the $100,000 jackpot,” Piluso said. “How many other players have been in the same situation but agreed to settle for a fraction of their winnings after being told they, too, were ‘nice people?'” Running for cover is Caesars Interactive, even though it is not a codefendant in the Piluso lawsuit. So far the state of New Jersey, other than levying a creampuff $1,000 fine, is siding with AGS, arguing that its software failed to clear bonus awards from previous rounds. “This error caused the patron(s) to believe that their bonus round winnings were higher than the actual winnings,” Deputy Attorney General Jennifer Russo-Belles wrote. So it’s the players’ fault, huh? All too typical.

In a divergence from Hard Rock International style, the company is opening a temporary casino in Rockford, Illinois. “An Opening Act” is how Hard Rock is spinning it. The temp features a modest array of 625 slots plus electronic table games from Interblock. Rockford Mayor Tom McNamara was nonetheless bowled over, saying, “When you look at this amazing development, you hired local Rockfordians, you followed through, you used local contractors, local minority contractors and you did it so well, I just want to say thank you to your commitment to our community.” There will no doubt be apprehension from northern Iowa casinos, as they have the most to lose from this new entrant. One patron optimistically predicted it would draw players from Chicago, but why they’d drive past Rivers Casino Des Plaines to get to Hard Rock Rockford passes our understanding. The permanent casino will open in two years.

Having been rebuffed in Richmond, the Urban One casino project is receiving overtures from Petersburg. Said state Sen. Joe Morrissey, “There was a piece of barren wasteland that not a weed had been growing on for 150 years and we lost that opportunity. Within seconds, my brain was saying, ‘what’s Richmond’s lost is Petersburg’s gain.’” Indeed it might be. As the solon points out, “There are more exits off of 95 into Petersburg, five, than anywhere else between Savannah and Philadelphia. It is a prime location for a casino.”

Already Mayor Sam Parham has been showing Urban One the possibilities in Petersburg. “We saw a lot of jobs leave the city in the 90s and 70s. This can be a gamechanger to put Petersburg on the map … provide the necessary revenue for schools, courts, our infrastructure, new roads … It could really help us upgrade an aging city that we have,” Parham reasoned. It’ll be easier said than done. The General Assembly has to vote to move the license and the electorate then gets to weigh in. Let’s hope the latter is less shortsighted than Richmond’s was.

Compared to the highway robbery that is the licensing of OSB in New York State, getting a racino in Nebraska is a veritable bargain. $1 million upfront gets you a 20-year concession, although your facility has to be smoke-free, so there’s a bit of a tradeoff. The Cornhusker State is seeing a racino explosion. In addition to the six tracks that have applied for casino gambling, six more are planned. That’s causing Fonner Park CEO Chris Kotulak some worries. “There’s not the human or equine infrastructure in place to support any more racing than we already have,” he fretted. Lynne McNally of the Nebraska Horsemen’s Benevolent & Protective Association was more sanguine, congratulating the state: “The Racing Commission worked efficiently and diligently, and we really appreciate their efforts.”

If you live in Georgia, your nearest recourse to high-class casino gambling is Valley River Casino in Murphy, North Carolina. It’s about to become even more so with a $275 million capex investment. In addition to expanding the casino floor, a new hotel tower will be added, along with two restaurants, a spa and an indoor pool. Although there was dissension in the tribal council over the expansion, “You’ve got to keep your facility state-of-the-art to stay competitive in these markets,” as loan facilitator Gina Jacobs testified.

Jottings: Bad news, travelers. Brace yourself for record hotel-room rates next year. “I still think we’re underestimating what’s going to happen next year. Group meetings have sort of been pushed back because of the Delta variant … but the demand and the inquiry is off the charts,” gloated Hilton Hotels CEO Christopher Nassetta … Faced with an epidemic of kids being left in cars while their parents gamble, Boyd Gaming has installed infrared cameras at Valley Forge Resort Casino to detect neglected tykes. Neglectful parents could find themselves 86’d for life. Good moves, Boyd … Cretin of the Week goes to Rev. Zachary Bohinski of Fells Methodist Church in Pennsylvania, who left his two kids in the car while he ate Guy Fieri‘s “trash can nachos” at Pittsburgh Live, then played the slots, winning $1,600 … A United Auto Workers local in Detroit is $2 million poorer after its accounts were plundered by a union official, who gambled much of the money at Greektown Casino (well, at least somebody plays there) where the eye in the sky caught him playing table games. Timothy Edmunds is facing federal charges of embezzlement and money laundering to boot. Edmunds also spent the ill-gotten gains on 10 guns and two trucks … The handsome but mostly vacant Lakeside Center at McCormick Place in Chicago could get a casino makeover (above) if Neil Bluhm has his druthers. Bluhm also has dibbed a rival casino site on the South Side and still owns a minority stake in mega-popular Rivers Casino Des Plaines. Meanwhile, Hard Rock International has its sights on a spot across from Soldier Field, although they’ll be up a creek if the Chicago Bears carry out their threat to build a new stadium out at the site of Arlington Racetrack, home base of FanDuel in Illinois.

Quote of the Day: “We’re in Vegas, I wish I could tell you that something was in play. But this game is over. We know it’s been over, with a capital ‘O.'”—NBC-TV sportscaster Al Michaels, toward the end of the Las Vegas Raiders‘ 41-14 stomping by the Kansas City Chiefs. Congratulations to everyone who took the over (52.5 points), to say nothing of covering the 3.5-point spread.