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 $1.5 billion write-off. Like small, private-sector casinos and slot routes, tribal gaming chafes under Small Business Administration restrictions that require a majority of a business’ revenue to be from non-gaming sources to qualify for federal assistance. This will only exacerbate a situation that has created 296,000 jobless persons. One thing the National Indian Gaming Association did get from the CARES Act was $8 billion in tribal relief, the biggest largesse ever directed at Indian Country. The Interior Department and Treasury Department seem somewhat at a loss as to how precisely to allocate the money—which has to be earmarked by April 26—but it provides a useful alternative to what formerly was brought in by casinos.

What we do know is that $453 million is designated for essential services and $154 million for tribal education. It’s a drop in a very large bucket but it’s a good start, too.

* Could Derek Stevens gain Circa but lose The D and Golden Gate? Or could Circa go bankrupt before even opening? Those questions are raised by the downgrading of the bonds on Stevens’ 18 Fremont Street Acquisition to Caa1 by Moody’s Investor Service. The textbook definition of Caa1 is “poor quality and very high credit risk.” Like the similar (and equally recent) downgrade of Cirque du Soleil, the re-rating hints at a high risk of default. Circa is collateralized by Stevens’ other casinos, so the entrepreneur has basically bet the house on his new trophy property’s success. New Year’s Eve can’t arrive too quickly for Stevens’ comfort.

* Want an interlude of good news amongst the bad? Mohegan Gaming & Entertainment says the $1.3 billion first phase of Inspire in South Korea is on track for a 2022 opening, pushed back from 2021. It will include a tourists-only casino, five-star hotel and 15,000-seat arena. MGE had some flutters of worry that Coronavirus would play hob with its schedule but now everything is said to be copacetic. The casino won’t be huge by American standards: 160 tables and 700 slot machines. But then again, in the era of social distancing, the crammed-thick casino floor may be a thing of the past. This is a long-term project on MGE’s part, with three more phases to come, culminating in 2031. The Mohegans are in the driver’s seat for the casino operation but everything else is in the hands of Hanwha Corp. Still, MGE CEO Mario Kontomerkos likes to think big and Inspire could re-set the bar for casino-based resorts. Your move, Osaka.

* “Casinos do not owe a general duty of care to gamblers.” Yes, that is the actual legal argument being made by Stones Gambling Hall, a card room trying to dismiss a lawsuit against both it and player Mike Postle, accused of cheating 89 other players out of $250,000. In other words, not only was there no cheating (as Stones previously argued), even if there were the card room has no obligation to endure fair play. If that were to become precedent, who could ever trust a casino again? As CardPlayer.com puts it, “It raises the question if casinos are not legally required to provide games that are on a level playing field, what are they required to do? What exact responsibilities do casinos have to players, if providing straight games aren’t one of them?” Whoever crafted this motion has some pretty big Stones on them.

* Even if they reopen soon, South Dakota casinos are to be avoided if you value your life, thanks to the blinkered incompetence of Gov. Kristi Noem, whose advocacy of high-risk behavior has managed to turn her state into one of the biggest Coronavirus hot spots in the nation.

Meanwhile, can we spend our way out of this mess? You tell us. Many California residents aren’t waiting for their stimulus checks before getting out and spending. The Los Angeles Times reports that the SoCal sex trade is booming, even with Covid-19 added to all the usual risks that anonymous sex entails. Some people just love to shoot dice with Death.