Squeezed in Schenectady; Seminoles step up

One of the goofs New York State made when authorizing upstate casinos was not to establish a level playing field of taxation. Rivers Casino Schenectady is hardest hit, paying 45% on its slot revenues and it’s finally decided to ask for tax relief. “If you reduced the tax rate, you may actually still provide the same, if not more, gaming revenue to the state because you’ll have more business,” says general counsel Stacey Rowland. What’s particularly irksome is that Greyhound and other bus lines are running $25 fares to MGM Springfield, which are offset by $25 in free play and $20 in food credit. Hell, for those benefits I’d hop on a bus to Springfield. “It’s very hard to compete with a Springfield when their tax percentage is so much lower,” Rowland complains. “They can then give away the bigger rooms, give away the better tickets, do all that.”

Her argument is that whatever a casino can offer is predicated upon what it makes from the gaming floor, whether it’s high-quality food or good entertainment. Also, with lower taxes, Rivers could provide the marketing enticements that MGM Springfield is dangling before prospective customers. Bringing Rivers’ slot levy down to 39% or even 37%, as Rowland is asking, only seems reasonable. It’s not like Rush Street Gaming hasn’t been patient: It waited over two years before asking for tax relief. As Rowland puts it, “The reality is, we are a great provider of jobs. We have almost 1,100 jobs here. The taxes we pay are very helpful. We would just love to retain and obtain patrons and provide better amenities.”

* VitalVegas reports that “MGM 2020 cost-cutting measures are hitting housekeeping” with rooms no longer cleaned daily unless by customer request. CEO Jim Murren had better be careful lest MGM Resorts International‘s brand equity is damaged by excessive thrift. We’re still mystified as to what economic indicators Murren saw that led him to tighten the corporate belt at a time of great profitability.

* Sheldon Adelson has a big-ass line of credit. Las Vegas Sands just took out a $2.8 billion loan to expand Marina Bay Sands. If you’re Adelson, a $3.3 billion expansion is a small price to pay for keeping your casino duopoly through 2030. Sands is in no hurry  to roll out its new amenities: They are scheduled for a Jan. 1, 2024 debut.

* Congratulations to Martin Winkler, new president of Melco Resorts & Entertainment. He will oversee day-to-day operations while CEO Lawrence Ho concentrates on “the vision thing.”

* A big thank-you to the Seminole Tribe, which has delivered 35,000 bottles of water and counting to Dorian-devastated Grand Bahama Island. The tribe has pressed its two helicopters and Pilatus PC-12/45 airplane (no relation to Rob Pilatus) into service, running them with full fuel loads so as not to impose on Grand Bahama by trying to refuel there. Certain liberals I know think the casino industry never gives back. Here’s evidence that it does and that it’s outperforming the national government at the moment.

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