Quote of the Day

“Blaming this dire circumstance on one person, one set of leaders, or one political party is tempting but too simple. Our response to today’s health crisis reveals a deep illness that has been festering within American society and our body politic. We have sacrificed our sense of common destiny to a hyper-individualism that rejects the concept of solidarity among human beings. Governments are supposed to assure that everyone enjoys at least a basic level of security. Ours has all but abandoned that responsibility.”—Stephen Kinzer, senior fellow at the Watson Institute for International & Public Affairs at Brown University, on the self-revelations of the Coronavirus crisis.

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Quote of the Day

“No doubt there is a fair amount of angst [among owners] because at the end of the day they’re like everyone else in the United States, Canada, who is dealing with a shelter-at-home protocol. I think they’re more frustrated around the larger societal issues. I’d say these are people who also see an opportunity for the NBA to be a leader. I think we all know we were one of the first businesses to shut down at the beginning of the pandemic recognition in the United States. I think there is a sense that we can continue to take a leading role as we learn more in coming up with an appropriate regimen and protocol for returning to business. I think there’s a recognition from them that this is bigger than our business, certainly bigger than sports, and that there is great symbolism around sports in this country, and that to the extent we do find a path back, it will be very meaningful for Americans.”—NBA Commissioner Adam Silver, who is refraining from setting a comeback date for his league, even floating the idea of postponing the start of the 2020-21 season.

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Quote of the Day

“We’re a long way off from huge gatherings. We can’t reopen things simply because our hearts say that we want to.”—Los Angeles Mayor Eric Garcetti

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Northam covets slot tax; CEO suddenly out at Foxwoods

In Gov. Ralph Northam‘s Virginia there are two inevitabilities: death from Coronavirus and taxation of black-market slot routes. Northam wants to legitimize the devices (their unsanitary properties notwithstanding) in order to collect taxes off them. He rationalizes the move by arguing that they’re keeping small businesses afloat. No coincidence, the makers and distributors of these slots were heavy campaign donors during the last election cycle. Said Pace-O-Matic‘s Mike Barley, “We appreciate the governor’s leadership in this matter as he worked to address a revenue stream which greatly assists local small businesses and their employees.” From Barley’s mouth to Northam’s ear. In other news, despite making noises about the lack of a competitive bidding process, Northam signed into law a bill putting casinos in five southern Virginia cities, including Richmond. Now it’s in the hands of local voters this November.

* Trouble at Foxwoods Resort Casino? After only eight months on the job, CEO John James abruptly quit. The stated reason was that Continue reading

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Internet saves Atlantic City; Hope for sports bettors

On March 16, both Atlantic City and Detroit closed their casinos, but the Boardwalk had it somewhat worse, down 62% in the truncated month. (The numbers suggest that visitation may have been tailing off prior to the shutdown.) Atlantic City grossed $85.5 million, with slots falling 65% and tables plunging 54%. Borgata toppled 67.5% (to $19 million), on 62% less table win and slot win plummeting 69% on 67% less coin-in. The Caesars Entertainment trio was down 61% with 56% less table win and 64% less slot lucre. Tropicana Atlantic City had, in context, a pretty good month at the tables, down only 37% (a triumph, given all the surrounding numbers) but a 62% slide at the slots. The Trop and Hard Rock Atlantic City tied for second place with $10 million each, with the Trop off 62.5% and Hard Rock -58.5%.

The smallest percentage tumble, -45.5%, happened at Ocean Casino Resort, which grossed Continue reading

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Tribes reel under pandemic; Lawyers: It’s OK to cheat

Although as many as 17% of tribal casinos may still be open, according to the American Gaming Association, that doesn’t mean there’s not a lot of pain in Indian Country. Meister Economic Consulting, the go-to source on tribal gaming, estimates a negative economic impact of $4.4 billion during the Coronavirus pandemic, with nearly 300,000 indigenous people unemployed. The $4 billion-plus includes $631 million in vanished taxes and $969 million in unpaid salaries. And the worst part? That’s from two weeks of inactivity. Just imagine the damage after four weeks, maybe six. If things are that bad for gaming-enabled tribes, just imagine how they are for reservations that don’t have casinos as economic engines. There’s also a severe trickle-down in the form of tribal-government services and infrastructure that are going unfunded during the crisis.

As for forfeited gambling revenue, that’s a Continue reading

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Small casinos still screwed; Hedge funds on the prowl

Evidently someone got American Gaming Association President Bill Miller’s letter to Donald Trump before POTUS’ eyes. We say “evidently” because somebody (probably the White House), in an effort to be Solomonic, persuaded the Small Business Administration to effect a compromise. It has replaced a mossbacked constraint on emergency assistance with a slightly less archaic one. Heretofore, companies that derived over 33% of their revenue from gambling were excluded from the Paycheck Protection Program and other funds. Now, if you have less than $1 million in total revenue and get less than half of that from gaming, you’re eligible for relief. That might help a lot of taverns and slot routes but small casinos continue to get the shaft.

While the Congressional Gaming Caucus has been deferential to the SBA, Miller has not held back and he was Continue reading

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Quote of the Day

“The kind of fraud which consists in daring to proclaim the truth while mixing it with a large share of lies that falsify it, is more widespread than is generally thought.”—Marcel Proust

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Quote of the Day

‘‘I am almost positive James Madison fell off a cloud somewhere today when Trump said that.”—GOP donor Dan Eberhart, in response to Donald Trump‘s assertion that his “authority is total.”

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Midwest: Casinos, interrupted

For some arcane reason, Illinois has not reported casino revenue for March. But we have a couple of neighboring states’ data and can conclude with reasonable certainty that it tracks with the Land of Lincoln. After a March 17 closure order, Missouri casino revenues fell 54%. The statewide gross was $77 million. At present, casinos are scheduled to reopen April 24, so part of this month might yet be salvaged. Such revenue as there was was dominated by slots ($65 million). The one anomaly in the results is St. Jo Frontier, which was only off 6.5%, at $2 million-plus. Everybody else got Continue reading

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Union: Where there’s a will, there’s a way

Discontent with casino management is spreading from Las Vegas to the Gulf Coast and beyond. In a Unite-Here teleconference, local union President Marlene Patrick Cooper expressed the general sentiment, saying, “This is a disaster that’s 10 times worse than Katrina. They chose to keep their stockpile of cash for the investors. That came off the backs of these workers.” Added bartender Jaron Ashley, “The money is not the problem. It’s the want-to.” Like their Vegas counterparts, Mississippi casino employees want to be kept on the payroll throughout the duration of the Covid-19 crisis. Bartender Jason McKnight, dialing in from Harrah’s Resort in Atlantic City, called for casino accountability, “You’re going to go to the government and say, ‘We need a bailout,’” he said. “Well, where’s our bailout?” Indeed, low-interest loans from the guvmint are intended, in large part, to keep workers Continue reading

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Sheltering at home

“Is it over yet?”

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Quote of the Day

“I get they think it’s a way to return jobs at both casinos and salvage the industry. The governor is allowing home delivery of alcohol and medical marijuana, why not this?”—Connecticut state Sen. Cathy Osten (D), making the case for Internet gambling at Foxwoods Resorts Casino and Mohegan Sun.

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Culinary issues demands; Outlasting Coronavirus

In a Thursday media event, the Culinary Union called for casinos to continue paying their inactivated employees for as long as the Coronavirus crisis lasts. Said Unite-Here President D. Taylor, “The industry, obviously, is a very profitable industry. We don’t understand their behavior.” As many as 158,000 casino-industry workers in Southern Nevada could be out of jobs in a 30-to-90-day shutdown. The casinos will be hurting, too. The Wall Street Journal estimates a $39 billion loss for Las Vegas casinos, should they be forced to stay closed for three months. Taylor was unmoved, saying, “We don’t understand why they’re not stepping up now, particularly when they have the benefit of having some government loans that would help them retain the workers and retain the benefits.” Ironically, the workers who have been faring best during the shutdown are the nonunion staffers at Venelazzo. Meanwhile, MGM Resorts International is trying place unemployed workers at Amazon and Wal-Mart, where there is apparently a demand for employees, although the pay will not be remotely as good.

“Companies have the opportunity to take very big loans and retain their workers, and they haven’t Continue reading

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“Scary” times for casinos; Hotel rates swoon

Donald Trump wants to reopen America for business May 1, come hell or high water. Former Atlantic City casino executive Robert Ambrose acknowledges that “going past 30 days [quarantine] is scary for the entire industry.” According to Ambrose, it ought to be especially frightening for stand-alone properties (he cites Mt. Airy in Pennsylvania). “Hopefully this can be right-sided pretty quickly, but the virus is a moving entity. We’re seeing the worst of it now in New York and North Jersey, but other states could be coming into the pipeline two to three weeks later, so casinos in those jurisdictions will be down longer and coming back online later,” he tells Global Gaming Business.

The upside, for some casinos anyway, is that people may play at Parx Casino or Rivers Philadelphia instead of making the Continue reading

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Quote of the Day

“What we’ve done is disproportionately prop up poor-performing CEOs and boards, and you have to wash these people out … Now we have a whole bunch of companies who, you know, frittered away tens and hundreds of billions of dollars on buybacks when they should have been saving it for a rainy day, investing it in R&D, or doing something that was much more important than what they did. There needs to be consequences for those actions.”—Social Capital CEO Chamath Palihapitiya, on CNBC.

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What can I see in Las Vegas?

As of this writing, Las Vegas is closed for business. But it could reopen as soon as May 1 and some are optimistic for its future. Among them is James Smith, this week’s guest contributor. His thoughts are as follows

It used to be a motto of the previous generations, that what happens in Vegas stays in Vegas. There is the American capital for action, luck, winnings, and entertainment. Never before has a place met so many casinos together. The famous casino Strip by CityCenter keeps on being the busiest place on earth. However, what makes Las Vegas so attractive to visitors? Have you ever thought about casinos and their live shows, which sometimes are a lot better than the ones you see elsewhere? Can you imagine Las Vegas as the top world tourist destination without its famous casinos?

All these and many other questions are going to be answered in this Continue reading

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Quote of the Day

“Faith sees best in the dark.”—Soren Kierkegaard, Danish philosopher.

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National Pet Day

Our best S&G wishes to all your animal companions. Seen here is our devoted Siamese, Tommy.

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Las Vegas: What next and when?

While everyone from Las Vegas Mayor Carolyn Goodman up to the highest ranks of the federal government trying to rush people back to work, we’re forced to consider what Sin City will look like after the Coronavirus pandemic … and when that will be. VitalVegas author Scott Roeben has posted 11 prognostications for a post-Covid-19 Vegas and we’ll just hit the highlights and let you read the rest at his site. Roeben predicts … Continue reading

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