Quote of the Day

Posted on June 15, 2018 by David McKee

“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

Posted on June 15, 2018 by David McKee

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 Dahl,  Continue reading →

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Canary in the coal mine

Posted on June 15, 2018 by David McKee

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

Posted on June 14, 2018 by David McKee

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

Posted on June 14, 2018 by David McKee

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 →

Posted in Dan Gilbert, Detroit, DFS, Eldorado Resorts, Greenwood Racing, Harrah's, Internet gambling, Isle of Capri, MGM Mirage, Mohegan Sun, Neil Bluhm, Penn National, Pennsylvania, Pinnacle Entertainment, Racinos, Sheldon Adelson, Sports, Tilman Fertitta, Tropicana Entertainment | 1 Comment

New Jersey ready for action; Strip club upstages Hard Rock

Posted on June 13, 2018 by David McKee

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

Posted on June 13, 2018 by David McKee

“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?

Posted on June 12, 2018 by David McKee

With pachinko already representing a $30 billion industry, casino operators are right to think Japan is ripe for their product. But Forbes‘ Muhammad 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

Posted on June 12, 2018 by David McKee

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 →

Posted in Atlantic City, Australia, Delaware, Nevada, Politics, Regulation, Sexual misconduct, Sports, Tilman Fertitta | 1 Comment

Waiting game in N.J.

Posted on June 11, 2018 by David McKee

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

Posted on June 11, 2018 by David McKee

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

Posted on June 8, 2018 by David McKee

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

Posted on June 8, 2018 by David McKee

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

Posted on June 7, 2018 by David McKee

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 →

Posted in Boyd Gaming, e-sports, Florida, GLPI, Harrah's, Illinois, Neil Bluhm, Penn National, Taxes, Tribal | Comments Off on Illinois doldrums; The dog ate her homework

Delaware leads the way; Las Vegas tourism rebounds

Posted on June 6, 2018 by David McKee

A Delaware sports book took 36 bets in its first 20 minutes of operation yesterday, making it the first state outside Nevada to capitalize on the Supreme Court‘s recent legitimization of sports wagering. “In New York, we would go right to the corner store, to the bodega, and bet. That’s not legal, but, you know, everybody was doing it. But now it’s legal so it’s great,” Dover denizen Karriem Keys told a reporter. The first bet placed was a $10 wager by Delaware Gov. John Carney (D), who bet on the Philadelphia Phillies to beat the Chicago Cubs. Delaware’s going to have the field to itself at least until this weekend, presuming that New Jersey‘s Legislature can get sports-betting regulations passed by then. Assemblyman Ralph Caputo (D) administered a smackdown to representatives of the major leagues who had their hands out for “fraud-fighting measures.” “The tool you’re looking for is money. That’s not going to happen,” an angry Caputo told them. “You guys are in it to make money. This is hypocrisy to the fullest extent.” The leagues were also frustrated in their demands for real-time data from sports books and the evidence of game fixing be shared by regulators with them.

Further back is Mississippi, where books won’t be in operation until Continue reading →

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Quote of the Day

Posted on June 6, 2018 by David McKee

“In gaming, everyone plays blackjack the same way, they all have the same odds, everyone has a roulette wheel. The difference is what’s around it.” — Cordish Cos. Chairman David S. Cordish, stating an obvious but too often unremarked fact about casinos. Cordish is opening a 17-story, $200 million hotel, and working on a spa and 4,000-seat event center.

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Sports betting: Winners and losers; MGM mulls more Strip buys

Posted on June 6, 2018 by David McKee

According to gaming-law expert I. Nelson Rose, the Supreme Court‘s ruling on sports betting goes far, far beyond gambling: “For the first time in American history, the U.S. Supreme Court expressly held that the federal government cannot order states, or state officials, to do anything.” Yes, that means that Attorney General Jefferson Beauregard Sessions cannot make the states crack down on legal marijuana just because it happens to be outlawed at the federal level. As Justice Samuel Alito wrote, “conspicuously absent from the list of powers given to Congress is the power to issue direct orders to the governments of the States.” Adds Rose, “Attorney General Sessions cannot order state officials to do anything about marijuana, and Pres. Trump cannot order state law enforcement to help round up illegal aliens.”

Rose describes the case as the clash of two ridiculous laws, the Bradley Act and New Jersey‘s decriminalization of sports betting. “Accepting wagers on sports events is now Continue reading →

Posted in Churchill Downs, CityCenter, Cordish Co., DFS, Dubai, Fontainebleau, Genting, GLPI, Golden Gaming, Hard Rock International, Harrah's, Law enforcement, Marijuana, Maryland, MGM Mirage, Ohio, Penn National, Sports, West Virginia | 1 Comment

Next stop, East Windsor

Posted on June 5, 2018 by David McKee

It appears that a clear path has opened for Mohegan Sun and Foxwoods Casino Resort to develop a satellite casino. The Hartford Courant reports that “The U.S. Department of the Interior is expected to publish a much-delayed notice Friday that satisfies concerns in Connecticut that the Mohegan tribe’s revenue-sharing agreement with the state won’t be jeopardized if they partner with the Mashantucket Pequots, who operate Foxwoods.” So far, the Trump administration is not making any comment but this, if true, would be a huge win for the tribes in question and enormous setback to MGM Resorts International, which has been trying to delay the East Windsor satellite casino, already under site clearance.

“I never thought this outcome was in question, but I’m glad Continue reading →

Posted in Foxwoods, Geoff Freeman, Internet gambling, MGM Mirage, Mohegan Sun, Politics, Regulation, Sports | 1 Comment

Boyd downsizes on Boulder Strip; Freeman leaves AGA

Posted on June 5, 2018 by David McKee

Some of you may have wondered what Boyd Gaming was doing by owning two side-by-side casinos on the Boulder Strip — adding Eastside Cannery to Sam’s Town. The marketplace may have had some confusion, too. After all, locals do not ‘graze’ from casino to casino the way tourists on the Las Vegas Strip do. Anyway, Boyd has eliminated certain redundancies (or created what Wall Street calls ‘synergies’) at the two rival siblings. Sam’s Town has shuttered its bingo room — Eastside Cannery’s is much nicer anyway — as well as Big Mess BBQ. Cannery loses The Deli and its Carve buffet. Also, the race book has been closed, although Continue reading →

Posted in Boulder Strip, Boyd Gaming, Cannery Casino Resorts, Culinary Union, Dining, Geoff Freeman, Internet gambling, MGM Mirage, Resort fees, Sports | 4 Comments

Quote of the Day

Posted on June 5, 2018 by David McKee

“[Donald] Trump creates chaos for no reason other than his own flagrant inability to follow rules or respect the interests of others. His is a psychopath’s trade war. The result will be to undermine the long-term role of the dollar; ratchet up the public debt; and undermine the current expansion through a spiral of protectionist measures and rising uncertainties for business.” — economist Jeffrey Sachs on Trump’s mental stability (or lack thereof).

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