New York State has come out with its required minimum casino investments, which range from $70 million to $350 million, although the reality is a complicated formula too tortuous to unravel here, laden with ‘ifs,’ ‘ands’ and ‘buts.’ (The $350 million, top-tier rate only applies to Orange County and Dutchess County, near New York City, with most mandatory investments being much lower.) Throw in licensing fees, land costs, etc. and the top-line cost could be more like $472 million. Saratoga Casino & Raceway spokeswoman Rita Cox was praiseful of the numbers, saying they show “a lot of thought and consideration.” Caesars Entertainment has already way overshot the minimum, pledging $750 million for an Orange County casino. Now we sit back and see who drops out, finding the action too rich for their blood. One that’s definitely ‘in’ is Genting Group, which got the green light from the Tuxedo Town Board last night.
Pennsylvania‘s Legislature commissioned a study of whether a second casino in urban Philadelphia would saturate the market. Those charged with conducting came back with a wholly predictable (and questionable) conclusion: No problem! What else do you think they would going to say?
This is a complete crock because the Philadelphia market has been cannibalizing itself for years now and, every month, the state itself publishes figures that prove it. The way consultant Stephen Mullin got around this was to say there will be ‘impact’ on existing casinos but a “sizable” increase in revenue for the state. They’re trying a variation of that experiment in Ohio and it’s not going so well. Mullin should look into it.
* Downtown‘s Pioneer Club is getting flayed. The eventual purpose is unclear but a cocoon of aluminum is being removed, revealed the original exterior (not counting a stucco coating on the handsome original building). One hopes people will appreciate the ‘new look’ Pioneer Club when the project is completed … and wonder why anyone would want to hide such a fine structure under a veritable suit of armor.
* The unintended (?) consequences of rewriting the Federal Wire Act could be to override the Indian Gaming Regulatory Act and take a tool of economic empowerment out of tribal hands: “By protecting the public from themselves the federal government will take away the wicked vice before it can take advantage of the weak mindless public,” writes Great Luck CEO Joe Valandra. “The fast paced trading of securities with no limits already takes place 24 hours a day, enabled by Internet access … there is no aspect of our lives that the internet does not touch.”
* There’s quite a little ferment of activity at the University of Nevada-Las Vegas, where former SHFL Entertainment CEO Mark Yoseloff fosters the next generation of game developers. One of his prize pupils, Hien Nguyen co-created prize-winning Chinese Domino Video Wagering Game … even though she’s too young to gamble in a casino. Hers is just one of several patents pending under Yoseloff’s tutelage.
