Quote of the Day

“Americans pride ourselves on being a moral nation, on being the nation that sends humanitarian relief to places devastated by natural disasters or famine or war. We pride ourselves on believing that people should be seen for the content of their character, not the color of their skin. We pride ourselves on acceptance. If we are truly that country, then it is our obligation to reunite these detained children with their parents — and to stop separating parents and children in the first place.” — First Lady emeritus Laura Bush on hard-line immigration policy. (Ironically, blocked by Washington Post paywall.)

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The Doctor is all-in; Morpheus a wake-up call

Sports betting is off and running at Borgata, having been inaugurated by Julius “Dr. J” Erving, who put down $5 on the Philadelphia Eagles to win a second straight Super Bowl. “I got a chance to look at the board and saw that the [Philadelphia] Sixers and the Eagles are both picked in the top 5, but I work for the Sixers so it might have been a rules violation to bet on that. So I chose the Eagles,” Dr. J told reporters. He also pooh-poohed the notion of sports betting as a corrupting influence: “Guys make too much money to be enticed by a bookie or someone to shave points or anything like that. You’re making $12 million a year, what’s another $50 going to do to jeopardize your career for that? I don’t see it being a problem.”

“Dozens” of punters were lined up outside the Borgata sports book, waiting for follow in Continue reading

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Caesars agreement OK’d; New focus for Hard Rock

It’s official: Workers at Caesars Entertainment have approved a new collective-bargaining agreement, one that includes (unspecified) pay increases and a succession clause to protect jobs in the (unlikely) event Caesars sells its Las Vegas Strip properties to another operator. Details of the pact are still hazy, the better to keep the pressure on the majority of casinos that have not arrived at labor deals yet. Talks must be going productively, though, since the strike deadline has long passed without any acrimony. “I attended the negotiations, and this is the best contract we’ve reached in the history of the union,” housekeeper Rocio Puente told both the Las Vegas Review-Journal and the Washington Post.

According to the R-J, “workers who lose their [DACA] work permit and are later able to readjust their immigration status will be able to Continue reading

Posted in Culinary Union, Fontainebleau, Foxwoods, Genting, Hard Rock Hotel, Harrah's, MGM Mirage, Mohegan Sun, Sociedade de Jogos de Macau, Stanley Ho, Wall Street | 1 Comment

Quote of the Day

“It’s obvious that there is little inbound demand for casinos. There is no escaping the possibility their main source of revenues will be from Japanese tourists.” — Constitutional Democratic Party member Kazuma Nakatani, protesting the casino leglislation that just passed the lower house in Japan. Already rumors are circulating that Sheldon Adelson is pressuring for more floor space be devoted to the gaming footprint.

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Quote of the Day

“I also keep thinking of Viktor Orban, the far-right nationalist Prime Minister of Hungary, who has declared the era of liberal democracy to be over. Given the multi-pronged attacks on voting rights in the US, including Monday’s appalling 5-4 Supreme Court ruling that Ohio can purge people from its voter rolls if they fail to vote frequently enough, I fear we may be farther down the authoritarian path than many Americans realize.” — cartoonist Jen Sorensen.

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East Windsor, Take Two; MGM, Sands eat Ho’s lunch

“From the start, we pledged to create a world class facility that will be a draw for people throughout the entire region,” said Mashantucket Tribal Chairman Rodney Butler of the tribe’s satellite casino in East Windsor. Nice try, Mr. Chairman, but color us underwhelmed. The renderings unveiled this week are an improvement on the East Windsor 1.0 one, with which readers of this space are nauseatingly familiar. Foxwoods Resort Casino and Mohegan Sun had plenty of time to rethink the project while being strung along by the Interior Department. And while the delay has yielded a sleeker, more futuristic look, we question whether the project has enough ‘curb appeal’ to pose a serious threat to $940 million MGM Springfield, which is only three months from opening. The Mohegan/Foxwoods project, by contrast, is just a vacant lot. Even if construction began today, it wouldn’t be a finished casino until December 2019.

For the record, the casino is designed to hold 2,000 slots and 60 table games, so it will not lack for Continue reading

Posted in Architecture, Foxwoods, Lawrence Ho, Macau, Massachusetts, Melco Resorts & Entertainment, MGM Mirage, Mississippi, Mohegan Sun, Problem gambling, Regulation, Sheldon Adelson, Tourism, Transportation, Tribal, TV | Comments Off on East Windsor, Take Two; MGM, Sands eat Ho’s lunch

Quote of the Day

“We declare that any form of nativism, mistreatment, or exploitation is inconsistent with the gospel of Jesus Christ.” — the Southern Baptist Convention, decrying Donald Trump‘s immigration policies.

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Leagues greedy for bookie sponsorships; Wynn gets sued

Guess what? Major leagues’ opposition to sports betting has melted overnight and now they’re into it for as much money as they can get. Bookmaker William Hill reports being “inundated” with sponsorship requests. Hill is a logical candidate for this, since it is expanding the Monmouth Park sports book, site of New Jersey’s first legal bet. While some issues between casinos and sports teams remain unresolved, William Hill CEO Joe Asher says that “the leagues and the teams are interested in doing commercial deals.” What a surprise. Not. Expect William Hill billboards to start decorating outfield walls and tiers of stadiums across this great land. As for the athletes themselves, some are lobbying for protection from shakedowns by bettors who might want them to throw a game. According to The Associated Press, “Among the players’ concerns are fears that proposition bets on actions during a game could taint the product on the field, leading fans to question whether the plays they see are legitimate.”

Elaborated MLB players union spokesman Chris DahlContinue reading

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Canary in the coal mine

Is Las Vegas headed for another 2008-style bubble? That was my thought after seeing this headline. Fitch Ratings posits that homes in the Vegas area are overvalued by 20% to 24%. That would make them the most overpriced domiciles in the U.S. To make matters worse, Las Vegas is trying to annex 39,000 acres of Bureau of Land Management terra firma, which would be good news for developers but very bad news for the endangered desert tortoise. The inflation in Sin City homes has been steadily creeping upward, from 10%-14% in 2016 to yesterday’s troubling report. After overreacting to the crash of 2008, home prices have — according to Fitch researches — overcompensated upward. The median home price of $315,000, last reached in 2006, could be matched later this year.

Citing other economic indicators, such as construction volume on the Strip and Continue reading

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Another administration scandal?; Ocean Resort ready to go

Connecticut‘s congressional delegation continues to make noise about the yes-no-maybe nature of the Trump administration’s handling of the Mohegan Sun/Foxwoods Resort Casino compact to build an off-reservation casino in East Windsor. Wrote Sen. Richard Blumenthal, Sen. Chris Murphy and Reps. John Larson and Joe Courtney, “the timing of the decision by the department to publish the Mohegan Compact amendment more than six months after federal law required and the failure of the department to provide similar effect to the Mashantucket amendment raises additional questions and concerns which the Inspector General should review.”

Approached by a reporter, the Interior Department ran and Continue reading

Posted in Atlantic City, Bruce Deifik, Florida, Foxwoods, Hard Rock International, Internet gambling, Mohegan Sun, Nevada, Politics, Regulation, Revel, Seminole Tribe, Tribal | Comments Off on Another administration scandal?; Ocean Resort ready to go

Big day in New Jersey; Atlantic City slips

Sports betting in New Jersey will go off as planned. As I write this, Monmouth Park is 20 minutes away from taking its first wager, presumably placed on the World Cup by Gov. Phil Murphy (D). “I’m thrilled to be doing it,” Murphy told a radio host, It’s been a long time coming. Many, many years.” You said it, Phil. Borgata will be close upon Monmouth Park’s heels, opening a sports book at 11 a.m. Kudos to MGM Resorts International for having the class not to rain on Murphy’s parade, which will contain other Garden State dignitaries. The governor thinks that the state’s official projection of $13 million in tax revenues is a low-end number but we’ve been down this road before with Internet gaming and it’s better to be conservative when budgeting gambling levies.

So great was the sense of urgency that Continue reading

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New Jersey ready for action; Strip club upstages Hard Rock

New Jersey Gov. Phil Murphy (D) still plans to place his first sports wager at Monmouth Park tomorrow but Borgata is trying to crash the party. The megaresort issued a statement saying “we are moving ahead with all possible speed to begin accepting legal sports bets as soon as required regulatory approvals are in place.” To rub it in, MGM Resorts International added, “Having spent decades successfully operating sportsbooks in Nevada, building trust with regulators, MGM Resorts is positioned to be a leader in sports wagering.” Translation: Who do you trust with your money?

In view of the lead time Atlantic City casinos and Freehold Raceway have had to prepare for this contingency, they are surprisingly unready. Some, like the Continue reading

Posted in Atlantic City, Delaware, Hard Rock International, Illinois, International, Internet gambling, Macau, Massachusetts, MGM Mirage, Mississippi, Nevada, Pennsylvania, Racinos, Sociedade de Jogos de Macau, Sports, Stanley Ho, Taxes, The Strip, Tilman Fertitta, Tourism, West Virginia, Wynn Resorts | 1 Comment

Quote of the Day

“That’s not a statement I would have made. Statements like that — that he’s a very talented leader — I mean, he’s a brutal dictator. Let’s call it what it is.” — Sen. Jeff Flake (R) on Donald Trump‘s effusive praise of North Korean ruler Kim Jong-un.

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Shutout in Japan?

With pachinko already representing a $30 billion industry, casino operators are right to think Japan is ripe for their product. But ForbesMuhammad Cohen thinks Macao casino owners (well, technically you can’t “own” a casino in Macao, but we digress …) may be at a distinct disadvantage, news that won’t be welcomed by Sheldon Adelson or Lawrence Ho, for starters. All six Macanese concessionaires have set up satellite offices in Japan, although they’re keeping their footprint light: no more than a dozen staffers at most. According to Cohen, “the industry’s hottest unattached executive,” former Melco Resorts & Entertainment COO Ted Chan is now heading Galaxy Entertainment‘s push.

Casino owners would face stiff public opposition: Two-thirds of the Japanese public says it opposes the resorts, though some doubt Continue reading

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New Jersey: Play ball!; Brothels on the defensive in Nevada

Major League Baseball, which has a long and tortured history with gambling, is urging states other than Nevada not to copy the Silver State’s regulatory system when it comes to sports betting, Why? Nevada sports books are not required to share information with the big leagues. “We should adopt regulations that fit 2018,” said Bryan Seeley, a former federal prosecutor who now works for MLB. “Sophisticated manipulation is going to cross state lines and people are likely to place bets in different states, particularly if they know that no one is aggregating data across states and looking at it.” If not Nevada, then where? Seeley points to Continue reading

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Waiting game in N.J.

Tempers were frayed as New Jersey legislators debated the fine points of sports betting. Demands from major-league representatives for ‘integrity fees’ got a frosty reception. Alluding to the legal bill the Garden State ran up fighting for legalized sports betting, Assemblyman Ralph Caputo (D) said testily, “You guys are in it to make money. This is hypocrisy. Nine years of fighting the State of New Jersey, and you come here? It’s disgraceful. Just a suggestion: You may want to write a check to the State of New Jersey for $9 million.” You go, Ralph! We’re not out of the woods yet. Tortoise-powered Gov. Phil Murphy (D) is having his lawyers vet the bill and hasn’t committed to signing it nor saying how soon he’d let it go into action. (He has 45 days to run out the clock.) At least Murphy is in favor of the bill — which passed unanimously — telling an interviewer that sports betting is “gonna happen sooner than later in New Jersey, and that’s a Continue reading

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Midwest torpor; Freeman says goodbye

A wave of prosperity among Midwest casinos has hit the wall, at least for the near term. Indiana and Missouri joined Illinois, Ohio and Iowa in reporting flat year/year gaming revenues for May. In Indiana, gamblers were losing 15.5% more but attendance was down 13.5%, for a $191 million gross. The coffee achiever for the month was Belterra, up 21.5% to $10 (good news for incoming owner Boyd Gaming). It was closely followed by the ever-impressive Tropicana Evansville, jumping 21% to $13 million. Elsewhere in the southern tier, Rising Sun was up 5% to $4 million and Hollywood Lawrenceburg was down 3% but still managed $14.5 million. Horseshoe Southern Indiana was flat but dominated the market with $22 million while French Lick Resort suffered an 11.5% tumble, grossing $7.5 million.

Centaur Gaming‘s two racinos posted mixed results. Hoosier Park was down 4% to $15,5 million, while Indiana Downs was Continue reading

Posted in Ameristar, Boyd Gaming, Brazil, Centaur Gaming, Eldorado Resorts, Full House Resorts, Geoff Freeman, Harrah's, Illinois, Indiana, Internet gambling, Iowa, Isle of Capri, Law enforcement, Macau, Majestic Star, Melco Resorts & Entertainment, Missouri, Ohio, Penn National, Pinnacle Entertainment, Sheldon Adelson, Tribal, Tropicana Entertainment | Comments Off on Midwest torpor; Freeman says goodbye

Fertitta shut out; Gaming blogger shut down

A provision in New Jersey‘s sports-betting law is good news for MGM Resorts International and Caesars Entertainment, and bad news for Tilman Fertitta. The law bars owners of major-league teams from also offering sports betting. But a loophole exempts owners who have a less-than-10% stake in casino company. So Joshua Harris, owner of the Philadelphia 76ers and the New Jersey Devils, gets through because his Apollo (Mis)Management holds only a small stake in Caesars. Another loophole exempts teams that generate less than 1% of a company’s revenue, which clears the path for MGM, owner of the WNBA‘s Las Vegas Aces. But if Fertitta wants to offer sports betting at the Golden Nugget, he’ll have to sell the Houston Rockets within a year, leaving him to decide which is the more desirable revenue stream. (We predict he’ll pick the NBA over a sports book.)

New Jersey state Senate President Stephen Sweeney said the law was designed to stop casino owners from Continue reading

Posted in Atlantic City, Harrah's, Illinois, Internet gambling, MGM Mirage, Slot routes, Sports, Technology, Tilman Fertitta | 3 Comments

Churchill Downs hearts casinos; Cleveland still not rocking

Churchill Downs is going all-in on sports betting, planning to leverage its (soon-to-be) access to the Pennsylvania and Mississippi markets, plus its relationship with the Golden Nugget in Atlantic City. However, the sky-high tax rate (34%) in Pennsylvania may translate into less-favorable odds at Presque Isle Downs, which is not such a great deal for consumers. While Churchill Downs will own the sports books, it is outsourcing the technology and odds making to European firm SBTech. Churchill Downs is also going against the prevailing wind in preferring to own its own casinos rather than sell them to a REIT. “The company places a higher value on being protected on the downside if/when a slowdown comes than the one-time capital infusion from monetizing real estate; we note the company is not capital constrained with net leverage in the low 2x range,” wrote JP Morgan‘s Daniel Politzer.

He added that the company “targets smaller acquisitions in geographies where it’s comfortable with Continue reading

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Illinois doldrums; The dog ate her homework

Although all but two of its casinos were revenue-negative last month, Illinois gaming revenues were flat. The primary driver was Rivers Casino in Des Plaines, leaping 11% to $42 million (or over 1/3 of the state’s $120 million gross). Long-suffering Argosy Belle also had a good month, up 14.5% to $4 million. In the northern tier, Harrah’s Joliet was down 5% to $14.5 million, Empress Joliet also missed 5% to $10.5 million and Hollywood Aurora was down 3.5% to $10 million. Grand Victoria fell 8% to a $14 million gross. Jumer’s Casino Rock Island was 3.5% off, grossing $6 million. Par-A-Dice in Peoria also grossed $6 million, also 3.5% down, while Harrah’s Metropolis‘ $6 million gross represented an 8% decline. In East St. Louis, Casino Queen toppled 10% to $9 million. Foot traffic overall was down 7.5% but, once you got them inside the doors, players gambled 8% more. Legislators should get their heads screwed on right if Continue reading

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