Stitt catches a break; Station, Gaughan step up to the plate

Did the government of Oklahoma screw up the exclusivity agreement that gave it power over tribal gambling? That’s the contention of a new legal brief from the Wichita and Affiliated Tribes, who say that the recent expansion of lottery offerings dilutes tribal exclusivity. And if so? No need for a compact and all tribal gaming revenue stays home. The tribes are even going after the state for damages. The state has yet to formulate a response but continues to argue in court that the 4%-10% tax rate paid by tribes was a “below-market” reflection of the “infancy” of the Sooner State’s casino industry and, now that it’s one of the nation’s three biggest, more revenue-sharing is required.

Said Wichita Tribe President Terri Parton, “Even if the Lottery Commission didn’t expand its online operations, this new form of electronic gaming not only violates the exclusivity guaranteed to tribal gaming operations under the tribal-state gaming compacts, but likely violates federal laws controlling gaming in Indian country.” She also slagged Gov. Kevin Stitt (R) for putting exclusivity fees in escrow rather than disbursing them to the educational system, as intended. Even Attorney General Mike Hunter agrees. If the revenue-sharing is voided, Parton intends for the money to go to schools close to Wichita territory.

Meanwhile, Coronavirus has bought valuable time for Stitt, who has been granted an additional two months (or until May 31) to hammer out a new accord with the state’s gaming tribes. Added District Court Judge Timothy DiGiusti, “In light of conditions resulting from the COVID-19 pandemic, the status/scheduling conference set for April 3 is hereby stricken to be reset at a later date.” With so many tribal casinos darkened by Covid-19, time may be on Stitt’s side, as desperation for gaming revenue is likely to weaken the tribes’ negotiating stance.

* Layoffs have begun at the Sahara, not surprising for such a relatively small casino (by today’s standards). The Las Vegas Review-Journal has a rundown on who’s getting how much hardship pay and where. Boyd Gaming is one of the stingiest outfits and Station Casinos is being surprisingly george. It’s “offering regular pay and health benefits to all hourly and salaried full-time team members through April 30, and it has moved several hundred part-time employees to full-time status so that they can receive full benefits.” We’re speechless. Golden Entertainment is being less generous, requiring employees to use paid time off after their one week of unemployment pay expires. Michael Gaughan was downright Solomonic at South Point, paying all workers 32 hours’ salary a week plus full benefits until the quarantine is lifted. Like MGM Resorts International, Tilman Fertitta is extending health benefits through June 30 at the Golden Nugget, but layoffs and furloughs have begun.

* Although the worst of Coronavirus has passed in Singapore, pay cuts are being taken at Resorts World Sentosa. It reported “a significant decrease in visitor attendance and correspondingly revenue, across all its facilities, including … attractions, hotels, restaurants, [meetings, incentives, conferences and exhibitions] facilities and the casino.” The rank and file are being spared but top executives are getting a 15-18% haircut, and managers are seeing paychecks that are anywhere from 9% to 18% smaller. Genting Group says it is implementing “stringent health and precautionary measures,” and encouraging junior staff to go on leave. The company said Resorts World would be “significantly and adversely impacted for the first quarter” but it is reported to still be in an excellent position to turn a profit.

* In a man-bites-dog story, England‘s Betting & Gaming Council is recommending government bailouts for William Hill, Flutter Entertainment and other sports-betting concerns. The breaking point seems to have been the postponement of the UEFA Euro soccer tournament by 15 months. Horse races have been canceled and casinos are ghost towns. Stated the BGC, “Betting shops face a decrease of up to 60% trade on sports betting alone, as confirmation came through that the Grand National will be cancelled along with all other major sporting events. Coupled with dramatic falls in customers due to advice to avoid public places, fears have grown significantly for staff and business.”

Tax relief is being proposed, along with stipends for laid-off workers, tax-payment extensions and delays in regulatory fees. Suspending its dividend (sensibly), William Hill projected a $135.5 million revenue shortfall, It, Flutter and GVC say they’ll lose $121 million in revenue due to canceled events. Flutter does, however, still expect to turn a $109 million profit. Wimbledon and the British Open are still on … for the moment. Prioritized BGC CEO Michael Dugher, “Like all other parts of the hospitality, leisure and entertainment industries, the immediate priority for the future of our members in the casino, bingo and betting industry is the ability to pay staff.” He added, “Treasury, in particular, needs to step up and understand that insurance simply doesn’t cover the impact of a pandemic.” Duly noted.

* Add Switzerland to the list of countries that have gone into a Coronavirus-inspired casino shutdown. The move comes as the Swiss government continues to crack down on Internet casinos deemed illegal in the cantons.

* The Greater Cleveland Food Bank is three tons of food richer after the combined generosity of Jack Cleveland, Jack Thistledown and MGM Northfield Park. With all the hoarding that is going on at present, this charitable gesture is doubly appreciated.