IGT, Twin River cut a deal; Atlantic City casino execs get riled

In what is either a grand compromise or the cynical conclusion to months of backbiting, International Game Technology and Twin River Holdings have patched up their differences, and formed a joint venture to run the Rhode Island state lottery. (The deal would still need the approval of the Lege, which has balked at Gov. Gina Raimondo‘s 20-year, no-bid juice job for IGT.) The new company will be split 60/40 in IGT’s favor and be contracted to provide slot machines and electronic lottery terminals to the state. For its part, Twin River would put $100 million into upgrades to its casino in Lincoln. Regulation will continue to reside with the Rhode Island Division of Lotteries, which rides herd on the $400 million/year industry. Raimondo was noncommittal, saying through a spokesman, “We look forward to reviewing this new proposal as it makes its way through the legislative process.” Senate President Dominick Ruggerio (D) and scandal-plagued House Speaker Nicholas Mattiello (D) were both more effusive about the deal.

Neither side made many concessions, although Twin River committed to making its Providence corporate headquarters permanent. IGT, for its part, will continue to press lawmakers for a contract that runs through 2043, which has been one of the big sticking points on capitol hill.

* The Greater Atlantic City Chamber of Commerce heard from executives representing eight of the city’s nine casinos and the mandate was clear: No Showboat. A recent blast by Hard Rock International CEO Jim Allen seems to have emboldened the casino community to get the message across. For example, Tropicana Atlantic City‘s Steve Callender was complaining about “three-foot potholes” that had gone unfixed and Caesars Entertainment Regional President Ron Baumann groused “the Northeast market is saturated; the last thing Atlantic City needs is another casino.” “We all agree we’re not pleased with where we are with the Tourism District,” said Resorts Atlantic City President Mark Giannantonio, speaking for all. “Our buildings can’t be surrounded by drug addicts and prostitutes,” piled on Hard Rock Atlantic City President Joe Lupo. “The street lights need to work. There’s a lot of work that needs to be done. The city needs to be in better shape. Go out and buy the biggest bulldozer the county has to offer, and you could probably make a lot of positive changes.” And, for once, tearing down Trump Plaza isn’t the answer.

Atlantic City Mayor Marty Small (D) turned a deaf ear to the signature industry’s complaints, choosing to praise himself instead. “I’ve been mayor for a little over three months and we are doing a great job,” he said. “My administration is committed to safe and clean, and we’ve shown that in a big way.” As for Showboat owner Bart Blatstein, he chose to stay above (or at least aside from) the fray, probably the best tactic under the circumstances.

* Move along, nothing to see. That’s the message from Japan Prime Minister Shinzo Abe, dismissing calls for a corruption probe involving the country’s nascent casino industry. Meanwhile, scandal-magnet Tsukasa Akimoto has been arrested … again. This time the charges are that he received bribes above and beyond those for which he had previously been pinched. Part of the accusation is that he assented to a free trip to the China headquarters of 500.com, which would constitute acceptance of a bribe. Akimoto maintains his innocence. Donald Trump has even been dragged into the evolving scandal, with questions being raised over whether he personally lobbied Abe on behalf of specific gaming operators in 2017. Abe’s response was that he met with U.S. casino plutocrats but that Trump didn’t intercede on anyone’s behalf.

While a delay in the casino program seems unlikely (despite public sentiment to the contrary), Wynn Resorts Development President Chris Gordon spun it as a positive, saying, “you don’t want to rush these things.” Not that Japan’s tortoise-paced casino legalization could ever be described as ‘rushed.’ Marina Bay Sands President George Tanasijevich handwaved the whole matter, saying, “We just let the process unfold, it is the government’s job and it doesn’t involve us. We stay focused preparing for the request for proposal.” As for Melco Resorts & Entertainment, it has troubles of its own. Reuters reported that it was cooperating with yet another bribery investigation. Ironic, isn’t it, that one of the attractions of Japan was supposed to be that it was squeaky clean?

* First-person-shooter e-sports are uncool, at least in Kentucky. Game Fortnite has been nixed from varsity e-sports play (and with good reason, we think). Epic Games‘ defense is essentially that Fortnite “features no gore and has a cartoon aesthetic.” “This announcement [of the game’s introduction] was particularly troubling in that it came on the anniversary of one of Kentucky’s darkest days, the Marshall County incident,” wrote Kentucky High School Athletic Association Commissioner Julian Tackett, alluding to a 2018 high school massacre. Epic was defiant, saying it would continue to offer Fortnite through e-sports clubs. Fortnite is the most profitable of video games, identified by none other than Netflix as its biggest competitor.

* Kudos to MGM Resorts International President of Global Gaming Development Brian Sandoval for his past support of the Army National Guard in Nevada, where he served two terms as governor. However, we think the real congratulations go to MGM which transcends mere lip service to its employees in the military by continuing to pay out 100% of their base salary while they were deployed. That’s an example every major company in gaming should be following. Incidentally, in the same press release, MGM said it “is exploring the possibility of bringing a unique and world-class integrated resort to Japan.” That’s an awfully demure way of putting it. How about “conducting a full-court press”? There’s no shame in that.

* Did you know that daily fantasy sports purveyors have dedicated meteorologists? It’s true. DFS is being normalized by leaps and bounds but—with so much money being wagered on real sports—is it an idea whose time has come and gone? Analysts like Dustin Gouker seem to see it as a ‘gateway drug’ for bonafide sports betting.