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March 9, 2010

New Gambling Deal For Seminoles From Senate With A Challenge To Take It Or Leave It

Last May, Florida Senators finalized legislation allowing for a gambling compact with the Seminole Tribe, but was changed by Gov. Charlie Crist and the Seminoles, going beyond the parameters set by the legislators, causing the plan to be held up in the Legislature. Now the Florida Senate has offered the Seminole Tribe a new gambling deal which comes with a challenge for Gov. Charlie Crist and the tribe to take the deal or leave it. Similar to last year’s proposal, the new Senate bill also stipulates that in exchange for at least $150 million a year, blackjack would be allowed at the tribe’s four of its seven casinos, which in last year’s version was changed by the governor and the tribe to include all seven casinos, in effect blocking the pari-mutuels from offering casino games for 20 years.

But a language has been added by the Senate on the new bill that would prohibit alterations to be made, stating, "the governor is not authorized to negotiate or execute a compact that has any provision that is inconsistent with, or differs from, the terms and standards for a compact as set forth in this" bill. "We sent them a piece of legislation and they arbitrarily made a bunch of changes," said Sen. Dennis Jones, R-Seminole, chairman of the Regulated Industries Committee, which oversees gambling. "As far as I know, we write the legislation. This doesn't give them an open book to redo it." But the tribe’s lawyer, Barry Richard said Saturday the new Senate bill does not worry him, confident that it could change once the Seminoles arrive at an agreement with the legislators.

Representatives of the tribe have been negotiating with the members of the House, and Rep. Bill Galvano, R-Bradenton has admitted there is progress in the talks, and a deal is very likely to be reached. Also in the Senate bill are changes that would aid the pari-mutuels on their gaming activity, and help them compete with the Seminole tribe’s casinos, like lower tax on voter-authorized slot machines, and extended gaming hours and betting limits for poker rooms. These terms would be effective even without concurrence and consent from the Seminoles. The Senate will have a hearing on the legislation on Wednesday, but a vote will be done at a later date.

March 8, 2010

Raynham Dog Track Welcomes DeLeo’s Slots Proposal

When House Speaker DeLeo, D-Winthrop announced in a speech Thursday before the Greater Boston Chamber of Commerce that he is going to file a bill late this month endorsing for two resort casinos and for the state’s four race tracks to be transformed into slot machine, the news was hailed by gambling proponents. In Raynham, state and local officials welcomed the idea of slots at Raynham Park, which ended its 70 years of live dog racing in December. Following a ban on dog racing, Massachusetts’ two greyhound tracks, as well as the two horse racing tracks are now only offering simulcast racing, and are in serious financial straits. “It’s an initial victory for us,” said Joseph Pacheco, a Raynham selectman, who is also a community liaison for Rep. David Flynn, D-Bridgewater. Flynn has filed a number of bills proposing for slots at Raynham Park.

The lottery, the state’s other form of gambling, whose revenues supply badly needed cash to towns and cities, is also feeling the pinch. Gov. Deval Patrick has also showed his backing for resort casinos, but a bill pushing for three destination-style casinos was rejected in 2008 under former House Speaker Salvatore DiMasi. However, Patrick is against slot machines, and after DeLeo’s speech, the governor again put forth his reservations over slot parlors, saying, “I don’t think it creates jobs.” Patrick is more in favor of casinos that have non-gambling amenities like hotel, restaurants and entertainment that promote business activity.

Democratic State Senator Marc Pacheco of Taunton supports the proposal for three resort casinos and slots at the four racetracks plus one at the Logan airport. He said the upshots which any big business establishment is always expected to have will be attended to. “Any time you have new growth and new jobs you have other issues that are a part of it,” he said. Casinofacts.com president Frank Dunphy says that if two resort casinos are allowed, he believes at least six Indian tribes will be also be interested to open casinos in the state. “It would be wide open.” He is also seeing the revival of the anti-casino struggle fired up by the proposed Middleboro casino.

The Southeastern Regional Planning and Economic Development District (SRPEDD), whose concern is the traffic and environmental consequences, and not the moral and social outcomes of gambling, says it will examine the impacts of any significant development in the area. “Our position has been and will continue to be [that] regional representatives should have a seat at the table,” said its executive director Steven Smith. Kathleen Norbut, head of United to Stop Slots in Massachusetts said, “It’s bad fiscal policy, it’s bad public policy. Only the developers and investors win.”

March 7, 2010

VictoryLand Sans Liquor License Reopens After A No-Raid Court Order

Victoryland, Alabama’s largest casino, with 6,400 electronic bingo machines, went back to business Friday, after it closed its entire facility Feb. 4 to avoid a raid by the Governor’s Task Force on Illegal Gambling. Governor Bob Riley deems the machines to be nothing more than slot machines, which are illegal in the state. Alabama’s more than 30 casinos have all shut down, except the Greenetrack casino in Eutaw. VictoryLand in Shorter Town in Macon County reopened after it surrendered its liquor license and following a court order from a judge that prevented any raid by the governor’s task force. A day prior to its reopening, the Macon County sheriff and district attorney watched a gambling engineering expert play a demonstration of the games and affirmed their legality.

VictoryLand owner Milton McGregor gave up the facility’s liquor license so as not to be raided by the task force without a search warrant, because state law authorizes law enforcement officers to check establishments with liquor licenses any time without a warrant. The Greenetrack in Eutaw, the only other gambling hall that has continued to operate has surrendered its liquor license early on. Three Indian-run casinos have remained open as the state has no jurisdiction over them. "You've got to have a search warrant or a court order to come out here legally now. Otherwise you are breaking the law," McGregor said.

John Tyson, Mobile County’s district attorney and head of the task force said the raiding team would visit the casino one of these days. "If they are not legal, you can count on us to enforce the law," Tyson warned. But Circuit Judge Tom Young of Alexander City who has authority over Macon County, issued a temporary restraining order restricting Tyson’s right to act only within Mobile County. Tyson said he will try to get it revoked because "it attempts to provide protection for all of the illegal casinos in Alabama. This order is a poster child for corruption," Tyson said. So far, only VictoryLand has reopened. The two other major casinos, White Hall Entertainment Center in Lowndes County and Country Crossing in Dothan are still closed.

As a result of the casino’s reopening, more than a hundred employees were asked to report back to work. Hundreds more will have their jobs back when the other parts of the entertainment center resume operations later this month. The issue over electronic bingo has caused stress and anxiety in the neighborhoods of poor, black people where local authorities say the casinos have been a source of badly-needed jobs and revenues. As one resident said, "This is just about all Macon County has. Our governmental revenue is already inadequate. Without this facility, it would be much worse."

March 6, 2010

DeLeo’s Slots Proposal In Gambling Bill Could Be Casinos’ Stumbling Block

Massachusetts House Speaker Robert A. DeLeo is filing a bill this month that would allow two destination casinos and a “limited number of slots” at the four racetracks in the state, including Suffolk Downs and Wonderland which are inhis district. But Gov. Deval Patrick has a contradictory opinion on the idea of slots. “Look, the concern is this: that we’ll get the slots and we won’t get the casinos,” Patrick said. “We need the jobs. The jobs come with casinos.” The differing attitudes of the two state officials on the slots issue may once again cause a setback for the casinos. In 2008, the governor presented his suggestion to authorize three resort casinos to augment the state’s finances, as well as provide jobs for the state’s rising rate of unemployment. The then House Speaker, Salvatore F. DiMasi, a known opponent of expanded gambling, was able to sway enough votes for the proposal to be rejected.

The results of a study the governor commissioned in 2007 bared that three casinos in Massachusetts would yield $450 million a year in state revenue, create 20,000 jobs and stimulate $2 billion in business activity. In the case of Connecticut, the state has been able to collect from Foxwoods and Mohegan Sun casinos which give the state 25 percent of slot revenues, $5.2 billion since the 1990s. Gov. Patrick has found an ally in Senate President Therese Murray, who said through her spokesman that she agrees that resort casinos are “the best gambling option to optimize revenues and create permanent jobs.”

Then again, an associate professor at Boston College who has done an analysis on gambling, the Rev. Richard McGowan said the racetracks will go out of business if they are not allowed to offer slots. He said casinos could take years to produce revenue, whereas slots revenue at tracks could turn out much faster and at a shorter time. “Clearly, jobs will be lost if the tracks are denied slot machines. The governor believes casinos would be more of an attraction for people to come to. But just how much economic development occurs with a casino is highly debatable. Jobs are created and lost and most economists think it’s a wash. The real issue is new revenue for the state,” McGowan reasoned.

Kathleen Norbut, president of United to Stop Slots in Massachusetts said, “The speaker is well-intentioned, but slots create crime, addiction, and drain money from the exact groups of people they are allegedly trying to help. Let’s look at economic development that is sustainable and does not prey on one group of people for the benefit of another and keeps money here rather than shifting wealth out of state to wealthy investors and developers.” She said the claims of economic progress of gambling advocates have been exaggerated.

March 5, 2010

State of Bingo Halls In Alabama Uncertain

For more than a month now, nearly all bingo hall operators in Alabama have shut down their facilities to prevent the Governor’s Task Force on Illegal Gambling from conducting raids on their establishments. The governor’s task force has maintained that the bingo machines are no different from slot machines which are illegal in the state. The only casino that is still operating is the Greenetrack in Eutaw. And, of course, the three electronic bingo casinos of the Poarch Creek Indians which are not controlled by the state have remained opened. The operators of the closed casinos are hopefully waiting for the approval of two bills which have not yet been dealt with in the Alabama Senate. One bill would authorize most of the gambling halls to resume operations without the threat of raids, and the other bill would have a constitutional amendment to be presented to voters that would allow, tax, and regulate casinos in 10 sites, one of them, VictoryLand in Shorter.

Democratic Sen. Roger Bedford of Russellville, who sponsored the proposals, tried to get a full Senate debate on the proposed constitutional amendment bill Wednesday, but was not allowed by the 18-16 votes. Bedford opted to put off proceedings on the other bill. "This issue is over. The minority, the Republicans, have blocked the people's right to vote. They are not going to change," Bedford said. Most of those who voted against Bedford’s move for a debate were Republicans. Republican Gov. Bob Riley, however, believed the proposal was rejected because the senators have seen that the proposed constitutional amendment was a “corrupt bill” that would benefit only the casino operators. "It's about pure, unadulterated corruption and legalizing a no-bid casino monopoly for a few politically connected gambling bosses," he said.

Senate Minority Leader Jabo Waggoner, R-Vestavia Hills, who opposed the gambling bills said there is no more hope for the issue in this legislative session, but the Rev. Dan Ireland of the Alabama Citizen Action Program, who is also an opponent said, "It is not over by a long shot. There is so much money involved, they are not going to take it sitting down.” On the other hand, Ronnie Gilley, developer of the Country Crossing casino at Dothan and the other bingo proponents say the casinos have given jobs to the people of Alabama, and if allowed to reopen, will provide the state with the much-needed revenues. Gilley, ever optimistic, said, "My hope is we can get a simplified version and get it back in front of them."

Meanwhile, Macon County District Attorney E. Paul Jones said Wednesday he believes the bingo machines at VictoryLand are legal because of a ruling made by the Alabama Supreme Court that said a woman won only less than $2 from VictoryLand instead of the $42 million claimed by the woman. "In Alabama, no court can award a judgment based on illegal activity," he said. Jones plans to seek a court ruling clarifying the status of the machines.

March 4, 2010

San Jose Council Look To Gambling Expansion To Help Ease Budget Tension

The city of San Jose is in a grim financial situation. Its budget deficit, made worse by diminishing revenues and rising pension costs, has kept increasing. After nine years of deficits, the city’s budget is now facing a shortfall of $116.2 million. City Manager Debra Figone said pension costs of employees, particularly for firefighters and police officers have risen to $53 million, while business tax collections have dropped. "The news is not good," Figone informed the council. Curtailing of public service is likely to be implemented, like closing down some community centers and a few fire stations, branch libraries to close four days a week, and cutting down police personnel. Seven hundred full-time city workers are also in danger of losing their jobs, and the only way to prevent these drastic moves is to reduce the salaries of city employees. In October when the deficit was estimated at $96 million, Figone was forced to ask labor unions for 5 percent pay cuts.

Last month, when the gap widened to reach $100 million, Figone said the budget cuts for Police and Fire stations could stretch to 7.5 percent, and 35 percent for other departments. Mayor Chuck Reed told city workers they would have to make do with 10-15 percent pay cuts to avoid losing their jobs. The city has thought of one more way of improving the city’s revenue: expand gambling and raise the taxes on the city’s two card clubs. In a narrow 6-5 vote Tuesday, the city council voted to draft a measure for possible inclusion in a June 8 ballot that would allow the two card clubs a 2 percent increase in tax and authorize a 25 percent addition of playing tables and lowering games and betting restrictions. The council still has to approve the plan at its next assembly on March 9 for it to be presented to voters.

If voters pass the measure on June 8, the city’s annual revenues from the card clubs which is currently around $13 million would be up by $3.6 million to $5.25 million. Reed said the council can vote against the proposal next week, if it does not strongly support the card rooms, but doing so would cause the city to lose around $400,000 a month if the council decides to wait until November when another revenue-generating plan of increasing sales tax by 25 cents would be carried out that could yield $30 million. Two years ago, the same proposal was suggested by Reed, but was rejected by council members. Reed’s detractors criticized him for backing expanded gambling because when he ran for mayor, he disapproved of tribal casino gambling. But Reed reasoned the proposal is a necessary evil during a severe fiscal difficulty.

Notwithstanding the city’s budget woes, the card club proposal almost did not make it in the council. The five council members who voted against the measure were concerned about gambling’s detriments to society. Seeking voter approval for a measure would cost the city about $500,000.

March 3, 2010

Sands China Net Profit Climbs 22% In 2009

Sands China Ltd., the gambling company that’s 70 percent-owned by Las Vegas Sands said Tuesday its annual net profit for 2009 was up 22 percent, pushed by a strong increase in gambling revenue in Macau, the only place in China where gambling is allowed. According to a filing with Hong Kong’s stock exchange, Sands China, the biggest listed casino operator in Asia, said its net income rose to $213.8 million from$175.7 million in 2008, falling short of Reuter’s consensus estimate of $219.6 million and Bloomberg’s mean estimate of $225 million.The casino company said its net revenue was up 8.1 percent to $3.30 billion from $3.05 billion. Earnings per share climbed to 3.32 U.S. cents from 2.80 U.S. cents. The company said its adjusted earnings before interest, taxes, depreciation, amortization and rent (EBITDAR) grew 17.9 percent to $809 million.

The results were the first since the company’s $2.5 billion initial public offering in Hong Kong last November, after which shares in Sands China, Macau’s second largest casino company by revenue next to SJM Holdings Ltd., gained 2.5 percent in Hong Kong trading. Sands said it effectively applied its cost savings scheme, while concentrating on mass gaming, hotel and retail activities. “Our cost savings and efficiency programs remained an important component of our operating strategy throughout 2009. These initiatives will allow us to expand our adjusted EBITDAR margins in the future and will provide enhanced operating leverage in the months and years ahead,” billionaire Sheldon Adelson who is chairman of Sands said.

In a note to clients today, JPMorgan Chase & Co. analysts Billy Ng, Steven Li and Joanne Cheung wrote, “We believe Macau gaming is a compelling secular China growth story. We prefer Sands as it has a differentiated strategy, focusing on the mass market, proven execution ability and the most aggressive expansion plans in Macau.” Analysts at JPMorgan Chase gave Sands China an “overweight” rating and estimated its share price at HK$13.50. After going up as much as 2.75 percent in Hong Kong, shares of Sands China dropped 2.4 percent to HK$10.64 at 3:22 p.m. The stock has gone up 12.5 percent this year relative to a 4.4 drop in the benchmark Hang Seng Index.

Standard & Poor’s credit analyst Joe Poon said Macau casino operators may see a modest increase in 2010 and, “Competition will continue to be intense. Revenues at existing casinos may decline while new resorts gain a hold in the market,” he said. Last year’s gambling revenue in Macau, the world’s biggest gambling center, increased 9.7 percent to a record $15 billion.

March 2, 2010

Florida Legislators To Begin Again Discussion On Gambling Compact

Lawmakers in Florida will once again take up the issue of a gambling compact with the Seminole tribe.The tribe, despite a 2008 ruling by the Florida Supreme Court invalidating the agreement between the state and the tribe that allowed table games at the tribe’s casino, continues to offer blackjack and other table games, and has maintained its $12 million monthly payment to the state. According to federal law, for the tribe to be able to run table games, it should have a gambling compact with the state. Gov. Charlie Crist and the Seminoles reached another gambling agreement last year, but was not approved by a House committee because it did not follow the restrictions outlined by lawmakers. And now, after almost three years of not interfering in the state’s gambling affairs, the federal government, through its agency that controls tribal casinos, the National Indian Gaming Commission (NIGC) has said it will settle the table games dispute by making a decision to either stop or permit the casino games.

Rep. Bill Galvano, R-Bradenton, chairman of the Select Committee on Seminole Indian Compact Review said, “There is a heightened level of involvement and diligence occurring on the part of the federal government.” Recently, Florida’s seven pari-mutuels were allowed by the state Division of Pari-mutuel Wagering to offer electronic or virtual slot machine-like blackjack games. Dan Adkins, head of Mardi Gras, a pari-mutuel, hailed the decision, saying it “allowed the seven facilities to be what voters thought they were voting for.” Florida lawmakers have approved a measure lowering the tax rate on slot machines at pari-mutuels from 50 percent to 35 percent and allowed pari-mutuels to offer gaming hours that could compete with those at tribal casinos, but only to commence once a successful compact between the state and the Seminoles is accomplished. However, to assist pari-mutuels in their fight against the competing tribe, the lawmakers could possibly allow the proposal even without a compact.

Galvano is hoping that with the added competition and with the federal government making its presence felt, the tribe will be more willing to agree to a deal that will not hurt the state’s horse and dog racing industry. He wants the NIGC to close down the tribe’s table games and to ask for a higher incentive from the tribe when crafting a new compact. Gov. Crist who strongly backed the tribe during the past negotiations is positive the disagreement will be addressed within a short time. He believes that most likely there will be more aid demanded for the pari-mutuels in the following sessions of talks for a new compact. “I think we'll probably end up with some sort of hybrid. . . . The pari-mutuel industry is very strong and powerful in this state and in this Capitol,'' he said.

Meanwhile, as the showdown between the tribe and the pari-mutuels continue, other gambling proposals are being pushed in Florida, such as the legalization of in-state online poker, and the possibility of resort-style casinos being considered by gambling mogul Sheldon Adelson of Las Vegas Sands.

March 1, 2010

Legislators Looking At Legalizing Online Poker In Iowa

Some Democratic and Republican lawmakers are considering a legislation legalizing online gambling in Iowa. Although the bill is still being drafted, if it passes and becomes a law, online poker in the state could begin as early as next year, and Iowa would become the first state in the United States to allow legal online gambling within its borders. Since federal law does not allow some forms of gambling between states, gamblers playing online poker on a computer would have to use an Internet address in Iowa. Players would have to go to Iowa casinos to make a deposit of between $50 and $500 into a special account. And since federal law bans the use of credit cards and other bank transactions to place bets and collect winnings, players have to use cash or debit cards for their deposits. After that, players can go home and access their account from a computer and can then start playing poker online. They would have to go back to the casinos to replenish their deposits or to collect their winnings.

An instructor of management information systems at Iowa University said that there is now a technology that can block players from outside the state from using prepaid accounts and going against the state’s gambling law. Presently, there are around 50,000 Iowans who gamble online illegally, oftentimes using off-shore sites and lawmakers are saying why not regulate online gambling and make it legal, thereby protecting the thousands of online gamblers, at the same time bringing in additional revenue for the state. "Here's an opportunity for $11.5 million a year for an activity that's already going on in the state where Iowans have exposed themselves to significant risks," said State Representative Doug Struyk, R- Council Bluffs.

All the money spent by Iowan gamblers would be coursed through the casinos and stay within the state, and some cities may even get a share of revenues. But there are those who are against the proposal. Residents fear that legalizing online poker could worsen the cases of people who already have gambling-related problems. "I think there would have to definitely be a lot of regulation with something like that. It would definitely lend itself to addiction more easily than something like a riverboat casino," said one local. Another resident said, "I do know somebody who has developed an online gambling problem, doesn't need to leave the house to go to the casino. It's so easy to just click, click, click and then there's a problem." But the president of the Iowa Gaming Association, Wes Ehrecke said most Iowans are responsible gamblers, and regard gambling as a leisure activity. He said the average amount a person wagered at casinos is between $50 and $70.

February 28, 2010

Two Michigan Groups Collecting Signatures To Add Gambling Issues To November Ballot

Two groups in the state of Michigan are backing a major expansion of casinos and are pushing for the measures to be put on the ballot in November. On Friday, the two groups’ petitions were given approval by the Board of State Canvassers. Both measures call for an amendment to the state’s constitution and would need to collect 380,126 certified signatures. One group, called Michigan Is Yours, is proposing for a measure authorizing the state’s Gaming Control Board to allow seven more new casinos to be placed in Detroit, Romulus, Lansing, Benton Harbor, Muskegon, Flint and at Detroit Metropolitan Airport.

The group’s petition form specifies that a 19 percent wagering tax would be charged on the casinos’ adjusted gross receipts, and the distribution of the tax revenue would be as follows: 38 percent of the tax revenue would provide funding for the state’s Michigan Promise scholarship program, 20 percent would be used for the state’s Pure Michigan national tourism advertising campaign, 20 percent would go into to the state’s School Aid Fund to subsidize K-12 education, 20 percent would be for the local government units under which the casinos belong, and 2 percent would go to the counties where the casinos are situated.

The second group, Racing to Save Michigan, whose head, Daniel Adkins, is vice-president and COO of Hazel Park Harness Raceway, is pushing for licenses for eight new casinos, and five of those would be at horse racing tracks. Under this group’s petition form, a wagering tax of 30 percent would be imposed on the casinos’ adjusted gross receipts. Of the total tax revenue, the group proposes that 75 percent would go into a state fund to be used to support several objectives, such as, economic development, job creation and job training, public education, tax reduction, scholarship grants for Michigan students’ college education program, rehabilitation of compulsive gamblers, and programs supporting horse breeding and racing. The state would get 20 percent to be handed out to counties, depending on their populations, 3 percent would go straight to a county where a casino is located, and 2 percent would be for the local city, town or village.

The deadline for the submission of signatures is July 5, 2010. Although the state’s gambling industry is facing increased competition from the surrounding states, Michigan’s existing casinos have opposed the measures, as the expansion of casinos would be a threat to their businesses. However, the legislators are quite receptive to the idea because it would provide job opportunities in a state harshly hit by unemployment and millions of dollars for the state’s coffers.

February 27, 2010

Foxwoods Casino To Be Under Helm Of Wynn

Wynn Resorts has signed a letter of intent baring the terms and conditions for taking over the long-overdue Foxwoods Casino project on South Columbus Boulevard. The original investors, a local group known as the Philadelphia Entertainment and Development Partners, together with the Mashantucket Pequot Tribal Nation, succeeded in getting a casino license in 2006, with the tribe originally agreeing to develop, finance and manage the facility. The project was stalled after the tribe encountered serious financial trouble last year. The chairman of Wynn Resorts, Stephen A. Wynn will take the helm as the managing general partner, controlling a majority stake in the project, with the local investors and the tribe still holding shares, albeit reduced. If approved by the Philadelphia Gaming Control Board, Wynn will assume the job of financing, building and running the Foxwoods project.

Wynn’s stepping in comes just as the state’s gaming regulators are imposing penalties on the local investors and could possibly cancel their license for repeatedly failing to submit financing and design requirements to the board. The investors have been trying to find a new partner who can provide not only funding but also expertise to the project. During a conference call with stock analysts, Wynn talked openly for the first time about his plans for the Foxwoods casino.

He said he had devoted the past several weeks devising plans and details for the project. It would “be the cutest casino you have ever seen,” he revealed. He said he would not build a hotel, as what he has in mind is not for a “destination resort,” but for a “straightforward casino,” and would not cost the company an “earthshaking number,” he said. He said it would be a one-level casino, with two or three floors of parking space on both sides, and that the structure “will not look like slots in a box.”. "I'm happy to say we're feeling very good about it. It will have all the bells and whistles of a good-looking casino." The facility will hold 3,000 slot machines, table games, a poker room, and a steak house. He said he is excited that the area is within the Italian and Vietnamese neighborhoods, so he is going to put in a Vietnamese and Italian restaurant for them. He said the neighborhood is "all full of my old friends - the Italians and Jews and every conceivable type of ethnic group that likes to play craps and gamble - and they're only 10 minutes away."

The 67-year old entrepreneur said his business connections in Philadelphia could be an advantage to his high-end properties like the Mirage, Bellagio, and Treasure Island in Las Vegas. The gambling mogul also said he is very much familiar with the region, since he operated the Golden Nugget casino in Atlantic City from 1980-87. "We dominated the Atlantic City market. We love the South Jersey market and we like Philadelphia." Wynn said he looks forward to be "out of the box as quickly as we can” if the state’s gaming board approves his plan.

February 26, 2010

Proposal To Relocate Riverboat Casinos Defeated In Indiana House

The 57-42 vote on Tuesday in the Indiana House against authorizing riverboat casinos to move inland was a major defeat for the proposal. It would have allowed those casinos in Lake County in Gary, East Chicago and Hammond to build on nearby tracts of land in order for the state’s gambling industry to be able to cope with the mounting competition from the surrounding states. Proponents of the issue have emphasized the importance of land-based casinos to maintain the almost $900 million in revenue that the facilities provide the state. Gambling ranks the third-biggest revenue generator in the state after sales and income taxes. Ohio would soon be having casinos in two years, and so could Kentucky’s horse tracks. Michigan’s two Indian casinos have opened and another one is being completed.

An impartial study by the Legislative Services Agency showed that 35 percent or $275 million could be lost by Indiana because of competition. “For two decades, we've enjoyed a relative monopoly in the region," said Rep. Matt Bell, R-Avilla. "It's important that our policy shift address the policies of a new generation, because the fact is this industry is a part of Indiana, and we have a responsibility to talk about the revenue streams that mean so much to our state." Bell was among the 6 Republicans and 36 Democrats who voted in favor of the bill. The idea was proposed by Rep. Bill Crawford, D-Indianapolis to amend Senate Bill 405 which aims to eliminate navigational systems and crew requirements for riverboat casinos, thereby granting casino operators up to $2 million in savings per year. Crawford and Democratic Rep. Charlie Brown of Gary reasoned the amendment would bring the much-needed jobs and economic relief to Gary. "Gary is a distressed area for all practical purposes. Gary, Indiana, is in dire need of economic development and additional revenue," Brown stressed.

Two severely affected casinos are on Lake Michigan in Gary, which could have been allowed to merge and move as one facility to a much better site on 1-80/94. The defeat also meant the issue won’t be taken up again in this year’s legislative session. "I think it's pretty clear that won't happen this year. So be it,” said House Speaker B. Patrick Bauer, D-South Bend, who voted for the proposal and had expected more from the Republicans. The 15 Democrats and 42 Republicans who voted against the idea argued that it would only cause gaming expansion to broaden. "It's a march that won't be done until there are slot machines in the kindergarten rooms," said House Minority Leader Brian Bosma, R-Indianapolis. "The only item we've said no to so far are land-based casinos. When we're the third-most reliant state in the union on gaming revenues, the question is, how deep can we go? This one, for me, is too far."

Republican Mike Murphy of Indianapolis dubbed it a “game of incrementalism” wherein gambling would eventually rule over the day to day living of the citizens. "Pretty soon, we will have slot machines in the nursing homes," Murphy said, "and they'll wheel one up next to your bed and you'll be able to use your Medicaid match as your money."

February 25, 2010

Ontario Likely To Adopt Internet Gambling

The new chairman of the Ontario Lottery and Gaming Corporation, Paul Godfrey announced Friday upon assuming his post that Ontario will think about taking on Internet gambling because revenue is gradually disappearing from the province’s coffers. "When you see what's going on in British Columbia, Quebec and the Atlantic provinces . . . it's something I would explore. Money is going out of this province to other provinces as well as offshore sites," Godfrey said. A few weeks ago, Loto-Quebec declared it will start its online poker and sports betting in September and will work with the lotteries of Atlantic Canada and British Columbia in creating the Web site, anticipating to earn $50 million by 2012 and expecting to neutralize the large number of illegal Web sites that are already in operation.

Ontario gets about $1.9 billion from its lottery corporation each year. Premier Dalton McGuinty seconded the lottery corporation’s proposal when he told reporters Tuesday a state-run Internet gambling is being considered by the province of Ontario. "I would want to talk to the minister about that. I think we've got to make a call on that . . . It's not something we can avoid," he said. McGuinty, who has opposed the accessibility of liquor to protect children, said the matter of Internet gambling is not similar to the corner-store liquor sales issue because, according to him, “the difference is we can control whether or not there is corner store sales for beer or wine. Internet gambling is taking place. It's already there. The issue is what do we want to do in the face of that."

However, there are those who oppose the move. Provincial NDP leader Andrea Horwath said, "We have problem gambling situations in this province that we're not dealing with. At this point I don't think there's any necessity to expand into Internet gambling." " Dr. Jeff Derevensky, co-founder of the International Centre for Youth Gambling Problems and High Risk Behaviors at McGill University said, “It's our governments that are the most addicted to gambling. They're addicted to the revenue. There is no great social consciousness. This is a money-making operation, that's quite clear."

February 24, 2010

Baccarat Helps Boost Nevada’s Revenue

The recession has seen many casino games, including the most popular, become less dynamic and profitable. It’s no longer slots and blackjack that bring the most pleasure, excitement and profit to a casino. Currently, it’s baccarat, a high-end game that has turned out to be actively and profitably successful. Baccarat wagering hit a record $1.3 billion in December, the highest in the history of Nevada. An elite crowd of high rollers are the game’s regular players. The game is offered by a few casinos on and close to the Strip. Being a high stakes game, not all facilities are offering the game, as most casinos’ bottom line cannot afford the millions of dollars that a baccarat player could win in a single hit.

Baccarat revenue is a big relief for the cash-strapped state. However, many casinos in Nevada, as well as those on the Strip, that do not offer the high roller game have continued to see a decline in gambling revenues. Casinos on the Las Vegas Strip that provide the game won $155.7 million from it in December beating revenue and wagering amounts recorded in December 2007 when the peak in tourism was at its final stage, even overtaking revenues of slots and blackjack whose revenues have fallen back to 2003-04 level. In 2009, only the months of November and December have seen a year-over-year rise in gaming revenue on the Strip. Overall gambling revenue would have declined 5-6 percent in those months if not for baccarat.

The boost in baccarat play is mostly credited to MGM Mirage’s $8.5 billion CityCenter, an expensive and sophisticated complex that opened in December with the spectacular Aria Casino and Resort as its central feature. Two weeks after its opening, Aria yielded gambling revenue of around $56 million, and of that, more than $42 million was from baccarat. And because Aria had 21 baccarat tables, it could be estimated that each table made $2 million in revenue in two weeks. Huge crowds gathered at CityCenter for this year’s Chinese New Year, composed mostly of wealthy Chinese and Asians, many of whom came to Las Vegas for the first time to see the renowned casino. As a result, credit lines and front money that assist high stakes gambling are also on the rise compared to last year.

Analysts believe that although it may seem that Aria is taking business away from other facilities on the Strip, it is also bringing in more high-end business to the city. “This speaks very well to continued (baccarat) demand at all properties, not just CityCenter,” said Grant Govertsen from Union Gaming Group. “There’s no doubt CityCenter is cannibalizing business. But perhaps they are cannibalizing business less than investors expected.”

February 23, 2010

Maryland Commission Endorses Changes To Slots Law

The Video Lottery Facility Location Commission is proposing to lawmakers extensive changes to be considered in the gambling law from a 2008 referendum that allowed slot machines at five locations across Maryland. The commission says these changes could bring about added revenue. The commission, whose seven members are appointed by the Governor, Senate President, and House Speaker, is authorized to issue gambling licenses for slot machine sites, and can make recommendation to state legislators regarding likely changes.

On Feb 11, Commission Chairman Donald C. Fry wrote a letter to the leaders of the General Assembly and Gov. Martin O’Malley pushing for a number of changes in the gaming law, thus, “While the state was very fortunate to receive proposals from several financially viable companies for the licenses awarded to date, the general economic downturn has significantly impacted the financial condition of gaming companies. In light of the current economic situation of many gambling companies … the General Assembly may wish to review the statute prohibiting a business entity from holding more than one license. … These changes could provide additional flexibility for the receipt of proposals for the Baltimore City and Allegany County locations.”

Aside from asking legislators to consider allowing a gaming company in the state to own more than one casino license, the commission also suggested giving a new scope to “ownership” in one of the casinos, which would adjust the stake holding from the 10 percent share currently allowed by law to 5 percent. The commission said this would enable the state to do a full background check of the companies who want to bid for the operation of the casinos. The commission also requested for a change that would no longer entail the venture’s institutional investors to give specific facts on their finances when filing with the commission. The letter also raised the suggestions which were first presented by state delegates from Western Maryland during a prior meeting with the commission which asked the state to oblige the company filing for a casino license to buy the state-owned Rocky Gap Lodge located near the border of West Virginia. Another proposition is to allow a temporary venue for slots at the lodge pending completion of the casino.

Another proposal submitted by the delegates is for a change to lower the state’s share of revenue by half. The existing law says 67 percent of gross gaming revenues should go to the state. The commission, although not agreeing to this last proposal, endorsed all the other suggestions of the delegates, and wrote, “While the commission does not suggest a change in the operator share of the revenues at this time, a statutory change allowing VLT’s in the lodge temporarily until a permanent facility is constructed would provide an additional incentive to an applicant for a Rocky Gap license.” Of the five approved sites, only three have been issued licenses. There have been no bidders for the Rocky Gap site at Allegany County, and the developers bidding for the Baltimore City site failed to produce additional requirements.

February 22, 2010

Russian Authorities Crack Down On Illegal Gambling

A law in Russia was recently passed in July banning casinos and slot machines in the country’s towns and cities, and relocating them to four specially-designated districts in the isolated areas of the country. But the law has not achieved its desired result as gambling operators have almost immediately gone underground after the law was enforced. It took only a few months for gambling to resume its activities, illegally this time. This was disclosed by a high-ranking officer of the Russian police in an exclusive interview with a leading network. Col. Oleg Bolderov of the economic crimes department said after the implementation of the new law, illegal gambling has swiftly proliferated across the country, and law enforcement officers have done thousand of raids since then.

A video of one raid presented by the police to the network showed a fully occupied casino, its stunned staff and shocked gamblers caught committing the offense as police officers with high-powered firearms burst into the illegal gambling den. "We have closed down 70 casinos and 4,000 slot-machine arcades... and have brought 600 criminal cases against those trying to organize this," Bolderov said. But even with the rigorous action taken by the police, in remote cities, it’s as if no law has been passed, as gambling operators continue with their business that’s now illegal, and in major cities like St. Petersburg and Moscow, secret gambling places have mushroomed.

Some police officers are also allegedly taking hefty protection bribes from casino operators. Some agents of the law who are supposed to enforce rules, are purportedly pretending to look the other way as slot machine parlors in Moscow carry on openly, albeit a little more cautiously. "We were approached by a police official who told us that for $400,000 per month we could stay open," admitted an informant. Col. Bolderov himself acknowledges that it is a tough struggle for police authorities trying to eliminate not only illegal gambling, but also corruption. “One of the most probable explanations for the rise of illegal gambling is corruption. In our police department, we do our best to close down underground casinos and slot-machine halls and we have some success. But in parts of Russia, gambling remains rife. Why? Because of corruption," Balderov explained.

There are already demands to amend the law seeing that the only effects so far are the wild spread of illegal gambling and the crooked police officials getting the chance of becoming more corrupt. The gambling industry in Russia has developed to be now worth an estimated $6 billion (£3.9 billion, 4.4 billion euros) a year, after it was revived almost twenty years ago at the fall of the Soviet Union. To date, only one casino in one of the four assigned zones decided to open and had its launching this month. It is located in the southernmost part of the country, and two hour’s drive away from the nearest airport and city. The zones are so remote that no other company has risked investing quite a sum knowing that very few gamblers would dare travel quite a distance.

February 21, 2010

Guyana To Open Its First Casino

Guyana will open its US$2 million Princess Casino most likely before the end of this month. The casino is the first in the country and is seen to help promote the country’s tourism industry. To appease the religious communities who are strongly against the idea of a casino, the Operations Director of the establishment, Oguz Tayanc gave his word that the facility will be only for those who are registered as guests of the 150-room hotel. Locals who are not checked in at the hotel will not be allowed to gamble at the casino, as provided for by law.

Tayanc said the officials of the casino and hotel will closely abide by the regulations governing casino operations in the country, saying it would be “detrimental to do otherwise.” The Gambling Prevention (Amendment) Bill 2006 was passed by the National Assembly in January 2007 authorizing the establishment of casinos in the country. It was immediately met with disapproval by the very conservative church groups and rival political parties. The church groups vehemently insisted that there are negative consequences that come with casinos that would be harmful to society and the country, such as drugs, crimes, prostitution and money-laundering.

Still, lawmakers could not close their eyes to the financial gains that the casinos and tourism could provide the government. So, to settle the dispute with the religious communities, and also to protect the citizens of Guyana, the lawmakers introduced a provision, Section 30 of the Bill, which says "no person other than workers and guests of the hotels or resorts shall be admitted to the casinos." Violators of this provision will be swiftly sentenced to a term of not less than six months and not more than two years in prison and be made to pay a fine of not less than G$20 million. In January of last year, Princess Hotel was granted a premises license and an operator’s license by the local Gaming Authority. The former Buddy’s International Hotel which cost US$12 million and was built by local businessman Omprakash “Buddy Shivraj to coincide with the 2007 World Cup Cricket, was bought by the Turkish hotel group Princess in 2008 at US$15 million.

The casino will be just one phase of the entertainment package being planned by the Princess Hotel. The whole entertainment scene consists of a movie theatre, a bowling alley and a luxury bar and lounge. Since not more than 300,000 tourists visit Guyana annually, Tayanc admitted it would be a big challenge for the hotel to market the casino to attract more tourists. He said management has made arrangements with foreign and local tour operators and travel agencies to bring in tourists every week, especially those who are looking to gamble in casinos. The hotel is also thinking of offering package tours with stopovers in Suriname, Belize and Trinidad.

February 20, 2010

Gambling Expansion Bill Considered By House Committee

Iowa legislators are pushing for a plan that would expand gambling in the state, such as, sports betting and playing poker on the Internet. Rep. Brian Quirk, D-New Hampton, one of the seven members of a bipartisan gambling working group says that gambling already exists in the state, and he wants the state to be the first in the country to go into the Internet gambling business. “Look, either we’re a gambling state or we’re not, and with 17 casinos I’d say we’re a gambling state,” Quirk said.

The House State Government Committee may schedule a hearing next week to discuss a proposal on sports betting that was approved by the Senate Government Committee. The House committee may expand the sports betting wording to include legalized betting on collegiate sports, except Iowa colleges. But the idea could encounter hostility from House State Government Committee Chairwoman Mary Mascher, D-Iowa City who vowed to rid every gambling bill that comes to the committee of any sports betting provisions. Moreover, there is an existing federal ban on sports betting, and for it to be legalized, there should first be changes in the federal law.

Another aspect of the gambling plan is to allow Iowans to legally play poker on the Internet. It is said around 80,000 residents of Iowa are already playing online poker. Since the UIGEA prohibits online gambling transactions through financial institutions, Quirk and other lawmakers have thought of an idea to get around the ban by legalizing account-deposit wagering. According to the scheme, Iowans could open an account at a casino, with, say, a $50 limit, and would be given a password. They could then go home and play poker using their home computers provided there is money in their accounts. They would have to revisit the casino to replenish their accounts and to claim winnings.

The bill also seeks to take away a necessary precondition for localities that have casinos to renew a gambling license by means of a referendum every eight years. Quirk suggested a referendum to first authorize the establishment of a casino, and another referendum after eight years, then, no more subsequent referendums would be required. Other features of the expanded gambling bill are the holding of major poker tournaments in larger venues like the convention centers of existing casinos, and a ruling that would now give casinos a share from earnings made from out-of-state betting on races at Iowa’s dog and horse tracks.

Quirk said he knows there will be opposition from groups that are against gambling, but it is not the appropriate time to debate whether Iowa is a gambling state because gambling has been in the state for a long time. Rep. Jeff Kauffman, R-Wilton who is against gambling expansion said he does not see anti-gambling lawmakers change their stand on this issue, but with the problem on the budget shortfall, he thinks there may be a slight chance that some lawmakers would change their view on expanded gambling and reassess the issue.

February 19, 2010

Bookie Enters Guilty Plea To Illegal Gambling

A man from North Kansas City pleaded guilty to being a bookmaker in an illegal gambling operation in Kansas City, Missouri. In entering a guilty plea before U.S. Magistrate Judge Sarah W. Hays, Michael V. Badalucco, 26, waived his right to trial before a grand jury. As per information from the office of the U.S. Attorney for the Western District of Missouri, Beth Phillips, Badalucco confessed that he and others acted as bookmakers in a sports betting business where bettors wagered mainly on sports events and contests. Clients were given a toll-free telephone number and a Web site that transmitted from Missouri, through Arizona and then to a computer server company in Costa Rica. Badalucco admitted to sending out wagering information with intent.

The U.S. Attorney’s office related how Badalucco and his cohorts went about their business, thus: "Bookmakers in this illegal sports bookmaking business, including Badalucco, provided their bettors with a 1-800 toll-free telephone number, and a Website. Bettors would then provide their account number and password in order to be allowed to place a wager, access their wagering history and obtain other information. Both toll-free 1-800 numbers route to a company located in Costa Rica. Under this scheme, the Costa Rica company acted as a virtual wire room for the illegal sports bookmaking operation — taking wagers and keeping electronic records of bettors’ activities and results on a computer server located in Costa Rica. The local bookmakers, including Badalucco, would pay out or collect cash in person, usually from their bettors on a weekly basis."

The company in Costa Rica tracked bettors’ account balances, received the bets and followed the results, although it did not have an interest in the outcomes of the bets other than charging a fee for each account. Don Ledford, speaking for the U.S. Attorney’s Office remained mum when asked to comment on the case and the probe as a whole. Because of his plea agreement, Badalucco will not be asked by the prosecutors to testify in the hearing of others in cases related to illegal gambling operations, and will no longer face further charges. Before endorsing for the acceptance of the plea, the judge warned Badalucco that the court is not constrained by the plea agreement and could hand him the recommended jail sentence.

Badalucco’s sentencing hearing has not been set, but the man could get up to two years imprisonment without parole in a federal jail, plus a fine of $250,000.

February 18, 2010

New EU Commissioner Vows To Address Confusion Over Online Gambling

The confusion over online gambling within Member States of the European Union is triggered by conflicting rulings in legal arguments on online gambling. One ruling declaring that an independent government can restrict online gambling in some situations, while another ruling saying state restrictions cannot prevail over EU law has caused divisiveness inside the Union. The issue is now about to be cleared up after newly designated Internal Market Commissioner Michel Barnier stated shortly after his appointment that he will resolve the matter. He gave orders to the European Commission to release a Green Paper, a document whose purpose is to encourage debate and start a series of consultations on the issue through which a law or regulation can be established. “I want to launch a constructive dialogue with the Parliament and member states and concerned stakeholders,” Barnier said.

This development will be closely monitored by Malta, a member state which believes that existing EU law granting the principle of free movement of services and trading should govern online gambling. Malta is against the practice of other member states of controlling their markets to restrict competition from online operators based in other countries. International gambling companies, seeing the island’s business-friendly approach, have chosen to make the island their base for their online gaming business, and because of this, Malta’s remote gaming activity has rapidly grown over the years. Malta is now considered to have the second largest gaming industry in the EU, delivering millions of euros in annual revenues to the government and providing jobs to thousands of people.

"We will be on the lookout as we think remote gaming should follow free movement. Malta is all for more clarification of the rules but these should not be used to introduce restrictive practices," said somebody who has a thorough knowledge of Malta’s gaming activity. Some member states like France, Germany, Portugal and The Netherlands have, over the years, introduced restrictions to limit competition, so as to protect their monopoly on a gaming market that delivers huge profits. The Commission has already brought violation complaints against several member states charging them of breaching the existing EU code of free movement of services, but the suit has not moved forward.

Mr. Barnier, noting a recent European Court of Justice ruling recognizing Portugal’s right to limit competition, and free movement of online gaming establishments in other member states, remarked, “The verdict was never intended to produce a monopoly. According to the Commission’s legal services, the ruling did not give member states more freedom, but justified certain restrictions on strict criteria. The verdict was, among others, built on the historic and atypical nature of the Portuguese institution, which had a monopoly on the organization of gambling.”

February 17, 2010

Dodge City Casino On Course, First Few Weeks Steady

The first seven weeks of operations at the first casino in Kansas have been showing the likelihood of turning out well. The Boot Hill Casino and Resort, a state-owned casino in Dodge City is ambling along at a steady regularity, causing state gaming officials to be moderately hopeful. Around 100,847 people came to visit Boot Hill since its opening on Dec. 15 until Jan. 31. In those first 47 days, the casino collected $5.1 million, and $1.1 million of that went to the state. Thus, the casino is said to be on course to yield $39.7 million for the first year.

Boot Hill Casino and Resort is the only casino authorized by law to operate in the southwest area of Kansas. The rights to the gambling equipment belong to the state lottery, but the casino itself is operated by Boot Hill’s management company under an agreement with the lottery. "I think things are going well," said Ed Van Petten, executive director of the Kansas Lottery. "We're certainly on track," said Boot Hill general manager Mike Tamburelli. Van Petten said it hasn’t always been a smooth ride for the partnership because of the state bureaucracy in Topeka that the casino’s quick business decisions sometimes need to go through, presenting some difficulty to the management, but both Van Petten and Tamburelli assured those kinks were small matters. And as proof, Van Petten cited one normal Saturday, the 6th of February, that earned $206,000, the highest so far. "I'm sure the casino might have been frustrated at points," he said. "But we've kept our toys in the crib, so to speak, and things are looking good."

Boot Hill’s not-so-large gambling floor is 20,000 square feet, taken up by 584 slot machines, 10 poker and blackjack tables, one craps table and one roulette wheel. Presently, 260 workers are employed by the casino and 20 more will soon be hired. The facility is expected to provide jobs for 600 people when the second phase with a 124-room hotel is finished in 2012. "I like this better because I prefer to play at a casino I know is regulated by a gaming commission," said one gambler. As strictly required by state law, Dodge City arranged a well-planned support organization. An addiction inpatient center in the city, called New Chance, has three counselors trained to handle gambling addiction. Counselors are also on duty at Area Mental Health, the community corrections program and at a boys’ home. Dodge City has also provided frequent seminars for school counselors and education workshops for people in the area, with speakers as well.

But to date, no one in the area has asked for help yet, according to Kevin Ford, a counselor at New Chance. "But I expect it to happen, it's just a matter of when," he said. "It's not doom and gloom, but we're going to have plenty of people coming in."

February 16, 2010

Bill Invalidating Governor’s Gambling Task Force Passed By Alabama Senate Committee

The Senate Judiciary Committee approved Wednesday a bill that would, in effect, prevent the governor’s task force on illegal gambling from staging raids on casinos. Notwithstanding resistance from the Alabama District Attorneys Association and from the Republican governor himself, the legislation passed the committee with seven Democrats voting in favor and three Republicans voting against it. The bill, sponsored by Sen. Bobby Singleton, D-Greensboro, now moves forward to the Senate where it could meet stronger opposition from the Republicans. Under the legislation, the governor would no longer have the authority to instigate any civil or criminal investigation or lawsuit. The bill would also render null and void all investigations and complaints that have already been filed by the governor’s Task Force on Illegal Gambling, and all civil and criminal court cases will now be under the charge and authority of the state attorney general.

State Attorney General Troy King is not with the governor’s task force, and he and Gov. Bob Riley have been in conflict for years over the legality of the electronic bingo machines. Singleton said the recent raids on Victoryland and Country Crossing bingo halls by the task force without the strength of search warrants is very disturbing. Greenetrack casino is inside Singleton’s district, and, along with three Indian-operated casinos, are the only bingo centers in Alabama that continue to operate.

Policy director for the governor, Bryan Taylor said the legislation "would basically end the criminal investigation of some very powerful and politically influential people in this state." Officials of the Alabama District Attorneys Association said the legislation would boost the powers of the attorney general, and would have an impact on other legal and official matters that entail the governor’s participation. "I recognize that the gaming is the elephant in the room," District Attorney Chris McCool of Carrollton said.
Meanwhile, Sen. Jimmy Holley of Elba in southeast Alabama, said Wednesday the people of Alabama should be allowed to vote on the issue of electronic bingo through a constitutional amendment. The legislator, who was against such an idea last year, said, "The events of the past few weeks dictate and clearly point to the fact that a final resolution to electronic bingo's legality will require the people of Alabama to exercise their right to vote on the issue." Discussion on the amendment proposal could happen on Tuesday or Thursday where some Republican votes are needed for its success.

February 15, 2010

Mayor Favors Table Games

Baltimore Mayor Stephanie C. Rawlings-Blake is backing the addition of table games such as poker, craps, blackjack and roulette to the state’s slots parlors. She said, at a gathering of the state’s lawmakers in Annapolis, Vegas-style table games in Maryland would make the casinos in the five cities competitive “not only in the state, but within the region.”State lawmakers and officials who want to see table games added to the just-started slot machine gambling program of the state are increasing in number. Last month, the Maryland slots commission endorsed the idea, and asked lawmakers to consider table games at the slots sites. The mayor said, in her view, there is “little difference” between slots and table games. She said she is also willing to hear from other people on the issue. "I'm not fighting internally about whether or not table games are a good or bad thing for the city," Rawlings-Blake said. "I think the revenue will help us be more competitive."

Former Mayor Sheila Dixon has the same opinion, saying the state should have authorized table games from the beginning. "People are not going to just want the slots," Dixon said. Baltimore is one of the five proposed cities allowed by voters in 2008 to have slots facilities. Baltimore would benefit financially because of the money that would be paid to the city by the gaming operator as rent, and which would be used to fund education or for property tax reduction. But the planned facility in the city has not even been started, and no license has been issued, due to the developer’s constant delays in securing financing and supplying the needed comprehensive plans for the structure.

Nearby states that have slot machine facilities like Pennsylvania, Delaware and West Virginia are heading for gambling expansion with the bringing in of table games like poker and blackjack. Gambling experts say table games are generally good sources of high-paying jobs, but do not have an immediate bearing on a casino’s revenues. State Delegate Frank Turner, D-Howard County, has introduced a bill requiring a referendum in November for an amendment to the state constitution allowing table games in Maryland.

The Senate is weighing the possibilities of table games and is looking carefully at the outcome. Senate President Thomas V. Mike Miller also is in favor of expanded gambling. But House Speaker Michael E. Busch, who reluctantly yielded to put the gambling issue to voters in 2007 after years of opposing gambling in Maryland, said he wants to first see a full implementation of the state’s rather new gambling program before making any alterations. "We have not gotten a nickel out of a slot machine yet," Busch said. "Before we talk about expanding, we ought to have the opportunity to complete the licensing process." The slot machine gambling program is expected to produce revenue to help cap a $2 billion budget shortfall of the state this year, and hundreds of millions of revenue money for the following years.

February 14, 2010

Alabama Senate And Court To Act On Electronic Bingo Legality Issue

The Alabama Senate will start discussion Tuesday on a gambling legislation that would allow the resumption of operation of three casinos that were closed and authorize the opening of more gaming halls. Lowell Barron, D-Fyffe, chairman of the Senate Rules Committee, said he intends to prioritize the bill on electronic bingo on the Senate’s program of work Tuesday, and, in anticipation of an extensive deliberation, he said the Senate will allot three days next week, instead of the usual two. Supporters of gambling are endorsing a planned constitutional amendment that would permit the opening of 10 sites for electronic bingo with the machines regulated and taxed. "I think the voters want it taxed and they want it controlled, and I'm going to vote for that," Barron said. The proponents’ side needs the support of 21 senators out of the 35 in order for the measure to pass, and Barron is confident they will get the needed votes.

But the Republican challengers believe they can block the legislation because they detected something amiss when the pro-gambling senators were not too eager to begin consideration of the bill Thursday in spite of the Republicans egging them to do so. Some gambling proponents are hesitant to vote for the bill in its present form because some cities that want casinos have not been listed among the 10. Sen. Hank Sanders, D-Selma, for one, said he could not vote for the bill because he wants a second casino in Greene County, but the legislation says the Greenetrack at Eutaw, will be the only one.

Meanwhile, Circuit Judge Robert Vance is asking for legal arguments on whether the formation of the governor’s gambling task force conforms to the law. Alabama’s three biggest casinos, Victoryland in Shorter , Country Crossing at Dothan, and White Hall Entertainment Center in Lowndes County have shut down to avoid the raids. In March 2009, White Hall was raided by the governor’s task force. It stopped operating for a while, reopened and closed again last week. The judge on the case has also asked for written legal arguments from White Hall casino and the task force by Feb. 26 to see if he has authority to tackle other concerns relative to the raid.

Agriculture Commissioner Ron Sparks and eight lawmakers whose districts are near or have casinos are strongly calling on the governor not to conduct any more raids because they frighten people especially those done at midnight, and more people have lost jobs because of the shutting down of casinos, thus increasing the chances of crime.

"These businesses are not provoking any violence. The governor is provoking the violence," Sen. Sanders said. Todd Stacy, the governor’s press secretary said, “They can hoot, holler and hyperventilate all they want, it doesn't change the fact that these casinos are breaking the law." He said the fact that the legislators are trying to pass legislation legalizing the activity confirms the legality of the task force.

Bobby Segall, attorney for White Hall, sees it as an occasion to clear legal matters that have not been taken up by any other court.

February 13, 2010

Gov. Beshear Pushes Gambling Proposal Once More To Legislators

Kentucky Gov. Steve Beshear sent a letter Thursday to representatives of the state House requesting them yet again to pass his budget proposal which assumes around $780 million in revenue from video lottery machines at racetracks in the next two years, and asked the House members’ help in persuading the Senate to pass Senate Bill 92. After Beshear crafted his first budget proposal, Sen. Ed Worley, D-Richmond, introduced Senate Bill 92, but was soon turned down by House and Senate leaders because it was dependent on revenue that was not yet tested.

Now, his urgent appeal seemed to be received with as little enthusiasm and support as his first budget proposal. House Speaker Greg Stumbo, D-Prestonburg said the governor’s letter was a “non-event” to him and that House leaders did not perceive any growing support for the governor’s plan from House Democrats. Minority Floor Leader Jeff Hoover, R-Jamestown, and some legislators said the appeal has no chance because it came near the end of the session. Chairman of the House Budget Committee Rick Rand, D-Bedford, said the governor and his allies should have pushed backing for his budget proposal soon after last June’s special session when it was passed by the House, but rejected by a Senate committee, and as soon as the current session started. He said it is now too late, since the House “has moved past” the idea.

In his letter, Beshear said that to close the state’s budget gap, “there are no magic bullets – only difficult choices.” He said his budget proposal does not count on the “hope and a prayer” of more subsidy from federal stimulus, but “on revenue that already exists and over which we can exercise total control if the legislature is willing to act.” Furthermore, he wrote, “ My inclusion of $780 million in gaming revenues does not contemplate or even require the House to approve VLTs before the Senate votes to do so. You can pass my proposed budget and together we can ask the Senate to pass Senate Bill 92 which would authorize VLTs.”

His letter also mentioned a poll conducted by SurveyUSA showing 59% of Kentucky residents preferred VLTs at racetracks, but also showing 85% wanted to vote on the issue through a constitutional amendment, which Beshear disapproves. He also wrote of his opposition to any suggestion on tax change to raise more revenue, because it would affect “our hardworking families and businesses.” Senate President David Williams, R-Burkesville, who has stated in the past that the General Assembly is not going to pass any gambling bill this session, when he heard of the letter said it was “bizarre,” and he had no thought on it and “evidently the governor didn’t think about it either.” But Sen. Worley, who remains a proponent of expanded gambling, after having read a copy of the letter said he agrees with the governor and thinks the Democrats in the Senate have not read the letter.

February 12, 2010

San Pasqual Tribe Sues State Of California For $115 Million

The San Pasqual Band of Mission Indians, the tribe in San Diego County that owns the Valley View Casino in Valley Center took legal action against the state of California. In a lawsuit filed Tuesday in Los Angeles Superior Court, the Indian tribe accuses the state of California and Gov. Arnold Schwarzenegger of breaking its 1999 tribal contract, and for illegally interfering with its ability to provide slot machine play for its patrons. The tribe is seeking $115 million in damages that the tribe claimed were profits lost during the five-year legal battle over the governor’s refusal to let the California Gambling Control Commission issue licenses to all the slot machines which the tribe has a right to have under the 1999 contract it made with the state. For years the state withheld the licenses and used them as a controlling power to persuade the tribes to enter into new compacts that would take away autonomy from the tribal governments.

Last year, after a federal court decided in favor of the tribes, the San Pasqual Band of Mission Indians were granted permission by the state to add more slot machines to its casino. The highest number of slot machines the casino is allowed to have under its contract with the state is 2,000, and last November the San Pasqual tribe added around 400 slot machines to its 1,600 on hand. The 1999 gambling contract between the state and the tribes stipulated for the creation of a fund to be provided to cities and counties affected by Indian casinos, thus, in withholding the slot machine licenses, tribal officials say, the governor in effect took away up to $30 million per year in funds for cash-strapped local governments, money that could have been very useful with the economy as it is.

"Fulfilling the language of the compact will not only benefit the entire Native American community, but in turn will aid the counties of California during this time when everyone could use assistance. We are just asking for what was established to be ours according to the language of the 1999 compact, but it benefits everyone. The governor instead chose to intentionally breach our contract to the detriment of San Pasqual as well as the people of the state of California," said Allen Lawson, chairman of the San Pasqual tribe. The lawsuit could lay on the line the proposal to legalize poker, as the tribes could very well decide to abandon the idea amid the ongoing legal battle.

State officials say they will fight the court case and refute any illegal behavior.

February 11, 2010

North Alabama Representatives Weighing Possibilities Of Gambling Proposals

As identical gambling bills were introduced in both the Senate and House, North Alabama legislators are saying this is an occasion for them to see to the issue that has been a cause of disagreement among the state’s authorities. Sen. Roger Bedford, D-Russellville, introduced companion bills in the Senate, one of which would provide protection to casinos that could otherwise shut down upon orders from Gov. Bob Riley until a Nov. 2 referendum. The other bill would call for a Nov. 2 statewide referendum where voters would choose whether to legalize gambling and the creation of a gaming commission that would govern gambling operations, including imposing a state tax on gambling businesses.

Two bills were also introduced in the House by Rep. Marcel Black, D-Tuscumbia. Similarly, one bill would allow the temporary operation of the electronic bingo halls that were authorized to operate in the state on December 2009 until a statewide vote on Nov. 2. The other bill would also allow a referendum on Nov. 2 to see if voters would want a taxed and regulated gambling in the state. Bedford’s bills were approved by a Senate committee Tuesday and Black’s bills also passed a House committee last week, and the bills will soon advance to the full Senate and the full House, but the Senate could be the first to vote on the bills. Black said he would make adjustments on his bill allowing the operation of electronic bingo to complement well with Bedford’s bill. Black said the bills do not plan to expand gambling to every county, as what Gov. Riley’s press release on Tuesday charged. "The bill calls for 10 locations," he said. "There was never a plan to expand to every county in the state. My intent was to limit and regulate gambling operations."

Sen. Bobby Denton, D-Muscle Shoals, said he is not in favor of the bill on referendum because he does not want to see gambling throughout the state. But he said it’s a different story with counties who decided to have legalized gambling in their localities. "Those places voted for them. They have jobs there. Closing them will put hundreds of people out of work." Rep. Tammy Irons, D-Florence, who said she has not fully examined the bill, but she is for the referendum bill. She said she is still in doubt regarding the bingo facilities since the legal views on the issue are varied. "My constituents are overwhelming in saying 'let us vote. You've got some courts and the governor saying no, these are not legal. You've got other courts and the attorney general saying these are legal. Unless the Legislature does something, the issue will continue to escalate," she said.

Rep. Johnny Mack Morrow, D-Red Bay he is still assessing the bill on bingo centers, but he is backing the bill on referendum. "This is potentially a very explosive issue in Alabama," Morrow said. "Right now, the executive, judicial and legislative branches of government are divided on this. The laws already made on this issue must be vague. It is up to us to try and clarify it.

February 10, 2010

MGM Mirage Wants To Sell Stake In Borgata

MGM Mirage said in its regulatory filing Monday it is discussing with its lenders and New Jersey regulators its plan to place its 50% stake in Borgata Hotel Casino and Spa in Atlantic City in a divestiture trust, hoping the move would settle its row with New Jersey regulators regarding its connection with a Chinese business partner in Macau. New Jersey regulators have, for years, expressed apprehension about the reputation of MGM Mirage’s business partner in Macau, Pansy Ho. Last year, MGM Mirage revealed that New Jersey’s Division of Gaming Enforcement (DGE) has given out a restricted information saying MGM Mirage should break business ties with Pansy Ho, calling her an “unsuitable” business partner.

Although MGM and New Jersey officials did not explain what made Ho “unsuitable”, the 2005 report from the DGE stated that "over the years there have been numerous public allegations suggesting that Stanley Ho, the father of MGM's joint venture partner Pansy Ho, has ties to Asian organized crime." Mr. Ho has challenged the allegations and has never been charged in court. MGM’s chairman and chief executive officer, Jim Murren said in the statement, "We disagree with the New Jersey Division of Gaming Enforcement's recommendation to the Casino Control Commission concerning our Macau partner, but believe pursuing a settlement with the DGE represents the best course of action for our company and its shareholders. We would like to put this matter behind us and move forward with the compelling growth opportunities we have in Macau."

A public hearing before the state’s Casino Control Commission could have given rise to questions in other states where MGM has businesses or spoil MGM’s plan to be listed on the Hong Kong Stock Exchange. MGM was not part of the three foreign investors that were given concessions in 2002 when Macau opened its doors to outside companies, so it decided to team up with Pansy Ho in the MGM Macau Grand. Of the six licensed casino operators in Macau, MGM Grand has the smallest market share, nevertheless, the business collaboration believes there is great potential to grow. It is gearing up for a Hong Kong listing this year.

In choosing to divest its stake in Borgata and leave Atlantic City, MGM has shown that the center of interest of the world’s gambling business is now in Asia. Atlantic City’s gaming revenues have continued to decline, while Macau’s growth has been remarkable, and its gambling revenue has exceeded that of Las Vegas. Macau’s January 2010 gambling revenue is 23% higher than in December 2009 and 64% higher than January 2009. The market share of the joint venture MGM Grand Macau climbed to 9% from 6.6% in December.

MGM has offered its stake in Borgata to a number of casino companies and investors but has not closed a deal. Under its contract with MGM Mirage, Boyd Gaming, operator of Borgata, and owner of the other 50% stake, has the right to match any offer. A Boyd spokesman has not given any comment.

February 9, 2010

Gov. Rell Pushes Again For Keno

Governor M. Jodi Rell first talked about having Keno in Connecticut last June as a means of raising revenues to help fix the budget gap. Keno is similar to the lottery kind of gambling that’s mostly found in bars and convenience stores. Attorney General Richard Blumenthal then said such action could violate the state’s agreement with the Mashantucket Pequots and the Mohegans whose casinos have Keno, if Keno is deemed to be a “commercial casino game” and not a lottery game. Blumenthal recommended for the General Assembly to amend the gaming compact that says only the two Indian tribes and no other person within Connecticut are given the right to operate a “commercial casino game.” The state-run Keno has not been clearly categorized by state law, and there is the danger of the state compromising the $400 million in slot machine revenues that the tribes pay the state annually, Blumenthal said.

Now, seven months after, Rell has resumed her proposal despite the Attorney General’s advice. The governor wants the game allowed in her budget proposal for 2011 to generate $20 million for that year and $60 million each year thereafter. Jeffrey Beckham, a spokesman for the governor’s budget office said Friday the government believes that Keno is a lottery-type game, and the Connecticut Lottery Corp. could lawfully offer Keno, and that there would be no violation of the agreement with the tribes. But the governor’s budget director Robert Genuario said that the General Assembly will still have a say on how they want to settle the budget deficit and that the governor is willing to think over any other proposal.

Paul Young, executive director of Connecticut’s Division of Special Revenue responsible for regulating gambling in the state, disagreeing with Blumenthal said, “We believe it’s a lottery game, and we believe that the tribes play it as a lottery game and it’s not listed in the compact as a table game, so therefore they are playing it under the lottery authorization.’’ Young also believes that the state lottery does not need any approval from lawmakers to start Keno. He said the lottery corporation may decide whether to authorize licensed establishments that already carry lottery to also offer Keno or to look for new sites which would have to be issued licenses. It would take quite a few months to begin activating Keno.

Blumenthal said Friday his legal view on Keno still stands. Tribal officials said they have yet ato see the governor’s proposal. Rell’s budget team took Keno sales revenue information from Massachusetts, Rhode Island and New York and made slight changes in proportion to Connecticut’s population to arrive at revenue estimates. As per data gathered, Keno in Massachusetts generated $3.8 billion in sales from 200-2008, $2.38 billion in sales from 2004-2008 in New York, and in Rhode Island $425.45 million in sales from 2004-2008.

February 8, 2010

Hawaiian Lawmakers Now Keener On Gambling Issue

Lawmakers in Hawaii are reviving the idea of legalizing gambling in the state, mainly because of the slump in the economy that resulted in a huge budget deficit and high unemployment rate. The plan is a relatively old idea in the Legislature, with gambling bills having been presented to the lawmaking body for decades. However, the bills that have been recently introduced have now taken on a more vibrant character, have grown in number and have diversified.

The Committee on Hawaiian Affairs last week approved House Bill 2759 that allowed casinos on Hawaiian Home Lands provided that 80% of revenues would be given to the Hawaiian Home Land communities, and the remaining 20% to the state’s general fund. Following a 40-9 vote by the full chamber, the bill now advances to the House Judiciary Committee. The joint committees of the House Judiciary and Consumer Protection also approved Thursday House Bill 2251 creating a gaming commission that would have the authority to issue a single 5-year gambling license to a casino in Honolulu. The bill also puts a wagering tax on casino games, besides restricting entry only to those over 21 years old. The bill at first stipulated that only visitors can be admitted into the casino, but was modified because prohibiting residents would seem unfair.

Rep. Jon Riki Karamatsu, the bill’s sponsor, said the bill serves as “an alternative source of funding to help address Hawaii's approximately $1.4 billion deficit, and jump-start Hawaii's economic recovery.” He said that although he is aware of the harms that gambling brings to society, he was prompted to explore new avenues after seeing an increasing number of workers being laid off. He also wants to keep Hawaiians’ money in Hawaii. Dianne Kay, president of the Hawaii Coalition Against Legalized Gambling said since 2002, "there hasn't been this kind of momentum. We're in trouble with all of them. I’m hoping the Senate won’t be so enthusiastic.” John Radcliffe, a lobbyist since 1976 who is in favor of legalized gambling has also observed a change, saying, "I think there's a lot more energy. One thing is certain- we can't go back to the old ways. You can't rebuild that safety net simply by increasing taxes," he noted.

An active debate between the proponents and critics of gambling came before the voting Thursday. Proponents said that illegal gambling exists in Hawaii even with a thorough clean up drive. Gambling foes underlined the problems that come with the appearance of gambling, like, increase in crime, addiction, homelessness and debt. They said that despite the enthusiasm in the Legislature, they believe many critics have not yet spoken up and that Gov. Linda Lingle might even veto whatever the lawmakers may pass. The other bills introduced called for a referendum to decide the fate of gambling; the creation of a state lottery or scratch-off games; and allow airports to install slot machines and video poker.

Hawaii and Utah are the only states that have not legalized gambling.

February 7, 2010

Bingo Halls Told To Shut Down Or Face Raids

The bingo halls in the western part of Jefferson County, Alabama were advised Friday to close their gaming centers if they do not want the governor’s Illegal Gambling Task Force to raid their facilities. That’s because the Alabama Supreme Court issued a ruling Thursday night that raids by the governor’s anti-gambling task force on VictoryLand could not be blocked by a judge. The following day, Jefferson County Circuit Judge Eugene Verin held a court hearing in Bessemer with attorneys and bingo hall officials in attendance and informed the assembly in the courtroom that he would abide by the Alabama Supreme Court’s ruling, and would not stop law enforcement agencies from investigating the bingo centers.

Thereupon, Jefferson County District Attorney for the Bessemer division, Arthur Green, gave the gaming operators until 6 p.m. Friday to close their facilities. He said the task force will confiscate their electronic bingo machines if the bingo halls do not close their doors at the given hour and day, and that there may be a raid done this weekend. Green said he asked John Tyson, head of the governor’s task force, that the bingo halls be allowed to take away the machines themselves, rather than the task force, to which Tyson agreed. "Meaning you padlock their businesses so the machines can't be used, then they can take them out as they can in some reasonable period of time," Green said.

Defending his course of action, Green said, "I'm not morally opposed to gambling. That is a decision someone else has to make, but I am and do have the duty to enforce the law and the law right now is these machines are illegal." Allies of bingo are asking the state legislators for a law legalizing electronic bingo gaming. Attorneys representing bingo charities said they think there is still hope for electronic bingo with the new guidelines laid down by the Alabama Supreme Court. But Fairfield’s city attorney Michael Trucks said it is the city which will truly suffer the consequence of the shutting down of the bingo halls. The effect on the city could mean millions of dollars in losses. "I think the city will have to go into really tough decisions as to their services, as to their personnel," said Trucks. "It's unfortunate but it's reality."

Arnitra Davis who has held a job for six months at the Anchor Club, a bingo charity in Bessemer said, "It's sad, it gave people jobs. As bad as the economy is now, we are going to have to find work somewhere else."

February 6, 2010

Loto-Quebec Ventures Into Online Gambling

Quebec’s lottery corporation, Loto-Quebec will soon enter the money-making online gambling market as it embarks on its first gambling service offering poker and sports betting starting in September. Loto-Quebec is currently working with the lotteries of British Columbia and Atlantic Canada to create the Web site. The three entities have signed a memorandum of agreement to use a common platform for online gaming that would include poker. According to Loto-Quebec President and CEO Alain Cousineau, the site of Loto-Quebec will first be presented to international experts on responsible gaming before being made available online.

Finance Minister Raymond Bachand said Wednesday that the cabinet has given its official endorsement to the plan so as to “cannibalize illegal gambling” sites that currently offer their services to Quebecers. “I believe this to be an efficient way of fighting the underground economy,” he said. Bachand said that hopefully this plan would be able to produce around $50 million more for the province in the next three years saying further that it would be even better if Loto-Quebec could obtain a bigger slice of the online market pie that’s estimated at $675 million.

In answer to the Parti Quebecois’ charges that the government has closed its eyes to the social ramifications of gambling, and giving priority to potential revenue, Cousineau said in a press release that over 2,000 online gambling sites that are “illegal, unregulated and often of doubtful integrity” are already open to Quebecers. He informed reporters that with the rapid growth of online gaming, Quebecers reportedly spend around $80 million a year playing online games. "This is a way for us to channel the gaming offering in a controlled circuit and environment whose integrity will be beyond reproach," he said, adding that the players will be required to confirm their age, guaranteeing that the players are adults, their weekly account replenishments are controlled, and players are allowed to “self-exclude at all times.”

Dr. Richard Lessard, Director of Montreal Public Health said, "By increasing the offer, we increase the number of players, and as we increase the number of players, the number of players with gambling problems will increase as well." But Cousineau referred to a public health study saying that the number of people with gambling problems did not increase between 1996 and 2002 which shows that the number of gambling addicts does not depend on the number of gambling providers.

February 5, 2010

Senate Panel Approves Sports Betting In Iowa

A bill backed by Senate President Jack Kibbie, D-Emmetsburg that would legalize sports betting in Iowa was unanimously approved by a Senate subcommittee Wednesday, and would then move forward to the full Senate State Government Committee. The bill would allow people to bet on professional sports at the state’s casinos. But not all casino operators were quick to welcome the proposal. They are aware that a federal ban on sports betting exists and any move towards expansion of gambling faces a lot of challenges in the state Legislature and takes a long while before it becomes legal in the state.

In 1992 a federal law banned sports betting except in four states, Delaware, Oregon, Nevada and Montana. These states already had sports betting before the ban took place, and were exempted under a grandfather clause provision. All the other states would have to wait for a federal repeal on the ban before they can offer such gambling. "We've heard about sports betting since I was a pup," said the 80-year-old Senate President. "It's already legal in many foreign countries. I'm just saying why not Iowa?"

But opponents of expanded gambling say the state does not need any more gambling as there is too much of it in Iowa. "We've got ample gambling in this state," said Sen. James Seymour, R-Woodbine. "I'm opposed to expanded gambling." Other gambling proposals were also discussed in the session. Among them were the expansion of areas in casinos where gambling is allowed, and holding poker tournaments in those areas, and charging the casinos a fee of $25 million to remove referendums required every eight years to renew the casinos’ licenses. These proposals could bring in fresh revenue to the state without increasing taxes, revenue that’s badly needed considering that the budget shortfall is said to be roughly $400 million. Although lawmakers have not clearly calculated the money that sports betting could bring in, other states that are considering the issue have estimated revenue to reach $100 million.

Kibbie said illegal sports betting is already rampant in Iowa, depriving the state of much-needed tax collections. He said his bill is a means to create state revenue and a way to legalize a favorite pastime that’s being done covertly. When asked by reporters, Gov. Chet Culver said he has not taken a stand on the matter. The Democrats who have the majority seats in the House and Senate, and Gov. Chet Culver do not favor raising taxes.

February 4, 2010

Casino Developer Asks Kansas Lawmakers Not To Change Gambling Laws

Kansas Entertainment LLC, the company that plans to build a casino in Kansas City is opposing proposals that have been initiated in the House and Senate that would change the state’s gambling laws. The company, a joint venture of developers Penn National Gaming, Inc. and Kansas Speedway is saying their $386 million project could be at risk if the legislators authorized a change in the state’s gambling rules to the tracks advantage, allowing the tracks to reopen and compete with the casino for slots profits. The three dog and horse racing tracks in Kansas are allowed by state law to offer slots, but track operators have not set up the machines, and the tracks have stayed closed. The track owners find it impossible to profit from the machines, saying the state’s share of slots revenue is too high.

The proposal would lower the state and local governments’ share of slots revenue and revive the race tracks. From 27 percent, the state’s share would be reduced to 22 percent, thus increasing the tracks’ earnings and the money shared with breeders throughout the state. The developers are especially concerned over The Woodlands racetrack being very near the casino’s intended location. In a letter they wrote to Gov. Mark Parkinson and legislative leaders, the developers say northeast Kansas’ gambling activity would be altered if the laws were changed. "Anyone requesting to change the rules at this juncture should have done so when the law was written in the first place," the letter said.

Penn National spokewoman, Karen Bailey, said it was clearly agreed in the contract that the casino and tracks would give 27 percent of their revenue to the state. She also said that it is not true that the company is experiencing financial difficulty. "Changing the rules in the middle of the game is just not fair," she said. Bailey refused to comment if the company would withdraw if the rules are changed. She said the casino’s ground-breaking is prepared for spring as the contract’s final touches are completed in February. The local government does not favor the change because it could take away revenues that local governments get from gambling, said lobbyist Mike Taylor of the Unified Government of Wyandotte County and Kansas City, Kansas. The law gives 1.5 percent of the revenue to the local government of the county where the casino is located and 1.5 percent to the nearest city. Therefore, the unified government gets 3 percent.

However, lawmakers argue that the state’s need for more revenue and economic growth would be enough motivation to discuss changing the law. Sen. Pete Brungardt, R-Salina, chairman of the Senate Federal and State Affairs Committee said, with more profits, the tracks could create venues where dog and horse breeders in Kansas could compete and help sustain the state’s agricultural development. He said all of Kansas could gain from the change, so legislators should not put off debating the bill amid speculations that the company would pull out. Brungardt’s committee will conduct hearings on the bill on Feb. 9.

February 3, 2010

Bingo Machines At Country Crossing Casino Illegal, Says Gambling Official

Lt. Mike Reese of the Alabama Alcoholic Beverage Control Board and a member of Gov. Bob Riley’s Task Force on Illegal Gambling said the electronic bingo machines found at the Country Crossing entertainment center in Dothan are not bingo as the casino purports them to be, since they can be played even with eyes closed. He said the games are illegal since they don’t satisfy the requirements for player interaction as described in the criteria set out by an Alabama Supreme Court ruling last year, like paying attention to the numbers being announced, marking the card, and the player announcing that he/she has a bingo. "In fact, once money is inserted, the game can be played blindfolded or with the eyes closed by simply pressing the button three times, and can be played without ever looking at the bingo card," Reese said in papers filed in federal court Monday.

Reese told U.S. District Judge Myron Thompson in his affidavit that he is the undercover agent who got the search warrants for the successful raid at White Hall on March 19 and for the raid at Country Crossing on Jan. 6 that failed because it was stopped by a judge. The search warrant Reese obtained for the Jan. 6 raid has already lost its effect before it could even be used. Another raid was set up last Friday, but was cancelled because no search warrant could be obtained as the judge needed more information before authorizing the raid. The Governor’s Task Force is now asking the court to allow it to conduct a new raid on Country Crossing and the casino’s lawyers on the other hand are asking the court to block one.

Country Crosssing’s attorneys say the machines are legal and the entertainment complex is responsible for providing jobs to more than 1,000 residents in the area at a time when people are hard-pressed for jobs. The task force head John Tyson countered by asking court not to intervene as the constitution does not give any person the right to profit from illegal gambling. Since the attempted raid last Friday, the casino has shut down and will resume operation once the court decides to issue an order preventing a raid. Judge Thompson has hinted at a decision by Monday afternoon.

Meanwhile, the task force is also asking the Alabama Supreme Court to revoke the temporary restraining order it issued Friday as state troopers were all set to raid the VictoryLand casino in Shorter. At the same time, lawyers for the casino are asking the court to continue the temporary restraining order that prevented the raid.

February 2, 2010

States Now Selling Both Powerball and Mega Millions

After heads of state lotteries reached an agreement last October, several states have started selling Powerball and Mega Millions tickets for the first time Sunday, a move which could be seen as a possible joining together of the two lotteries into one national lottery. Cross-selling could also raise the top prize, and state and local governments who have gone short could be assured of additional revenue. "It's going to be great for players who are looking for a dollar and a dream," says Jodie Winnett, director of the Illinois Lottery. Illinois sold only Mega Millions before, plus its local lottery, and Winnet says the state anticipates a rise in the number of lottery players, higher jackpots and a 9 percent or $54 million increase in revenue from lottery.

Before Sunday, Powerball and Mega Millions were sold in different jurisdictions, and players could only buy one or the other, thus, players usually drove to neighboring states to bet on a chosen game or on the one with a higher jackpot. Of the12 states that previously sold only Mega Millions, 10 of them will start selling Powerball. And of the 31 other states, as well as the District of Columbia and the U.S. Virgin Islands that sold only Powerball tickets, 23 of those places will now sell Mega Millions. Towards the later part of this year, all 45 jurisdictions that have lotteries will be offering both games.

State lottery administrators are wishing for high ticket sales that would eventually bring about a merger of the two games. But opponents of the lottery say this new move is an endorsement of something that is addictive and is aggravating the situations of problem gamblers. The detractors claim that states that have expanded gambling with the promise of additional revenues as motivation have refused to recognize the problems that come with gambling. They say the victims of this recent move are those with low income who can hardly afford it. "It isn't James Bond with a blond on his arm buying these lottery tickets," says Tom Grey, field director of Stop Predatory Gambling. "It's someone that's standing in a convenience gas station buying 25 to 50 of the tickets. What we've got is government pushing an addictive product and continually increasing the odds."
The states that do not have lotteries are Alabama, Alaska, Mississippi, Utah, Hawaii, Nevada and Wyoming.

February 1, 2010

Online Poker In California Pushed By Morongo Tribe

In August of last year, the Morongo Band of Mission Indians, along with the Commerce Casino and the Bicycle Club started an association called the California Tribal Intrastate Internet Poker Consortium and asked the California legislature for an exclusive contract to offer online poker in the state. But the plan folded because the group members became worried upon sensing that the proposal was being hurried through the lawmaking process. However, the Morongo tribe, one of California’s biggest gaming tribes, has not ceased in its campaign and has kept the effort to bring the issue back. “We’re still reaching out to different tribes. We’re trying to take into account everyone’s issue,” said Patrick Dorinson, spokesman for the tribe.

The much-awaited hearing has finally been scheduled for February 9 when the Senate Governmental Organization Committee will tackle the matter on online poker. Several speakers have been invited to talk about quite a lot of related topics, like the risk of breaching compacts with tribal casinos, and the federal laws on gaming. The Unlawful Internet Gambling Enforcement Act (UIEGA) that made Internet gambling illegal, seems to have an exception that would permit online gambling within a state and allowing the use of credit cards and bank transactions for online betting, provided that the player could be ascertained and confirmed to be living within the state.

What is on everyone’s minds and lips, however, is the potential revenue that online poker could bring to the state of California. Referring to a 2008 PricewaterhouseCoopers study, a gaming attorney based in Sacramento, Martin Owens said, around 1.4 million Californians are now playing online poker using offshore websites. “You’ve got something like a billion dollars leaving the state every year that does nobody any good, except the offshore operators,” Owens said. “Internet gambling is here to stay. The only rational thing to do is organize it, license it, supervise it - and by all means, get the benefits.”

A group that is against the Morongo tribe’s proposal is the California Tribal Business Alliance, whose executive director, Allison Harvey has strongly maintained that the gaming compacts with the tribal casinos giving them exclusive deals would be violated, thus disregarding the foundation on which gaming laws in California are based. Harvey added that his could threaten the $1 million daily remittance the casino tribes pay the state as the income from gaming compacts. The Morongo tribe has rebuffed the assertion.

January 31, 2010

Raids On VictoryLand, Country Crossing Casinos Thwarted

Efforts to raid the VictoryLand facility at Shorter and Country Crossing casino at Dothan were foiled Friday after lawyers for the casinos rushed to prevent hundreds of Alabama police from confiscating thousands of electronic bingo machines and shutting down the casinos. The two facilities closed down before dawn, seeing that police authorities were starting to gather bringing vans that would transport the seized machines.

In the case of VictoryLand, an order from the judge was produced at 5:30 a.m. Friday, stopping the raid, and setting a hearing for the following Friday. The casino, with its 6,400 bingo machines intact, resumed business after the raiding team left. The casino’s attorney, Fred Gray said, legally, the police had no good reason to sequester property. "They had no warrant, they had no court order, and presented nothing to the owners of this facility." Gray added that the casino has been investigated by a federal grand jury and two county grand juries, but not one charge was filed against the operation. Macon County Sheriff David Warren did not buy the troopers’ claim that a disguised agent had seen the occurrence of illegal gambling inside the casino. "As far as I'm concerned they are legal machines," the sheriff said.

Over at Country Crossing, raiding troops assembled at the casino’s entryway could not produce a warrant or any authorization to show to the casino’s lawyers who angrily reasoned that no raid could be carried out without the police presenting any legal paper. "We've told them they are trespassing. We've told them to leave," said Country Crossing spokesman Jay Walker. Constitutional amendments have authorized bingo in the counties where the bingo centers are operating, but Gov. Bob Riley, strongly insists that only traditional paper bingo is allowed by those amendments, therefore the electronic bingo machines that look a lot like slot machines are illegal, since slot machines are illegal in Alabama. The governor has formed an antigambling task force with Mobile district Attorney John Tyson, Jr. as its head, and is charged with raiding the operations. Last year the White Hall casino in Lowndes County was raided, in which $500,000 in cash and 100 machines of the 900 were taken. The casino has since reopened with new machines, while the case is in court.

VictoryLand, which started as a dog track 25 years ago, is now a multimillion dollar complex after a 300-room posh hotel and other additions were opened in December costing $100 million in investment. About 2,000 workers are currently employed by the complex. The bingo center now has more bingo machines than any one casino in Nevada, New Jersey or Mississippi has slot machines, says the North American Gaming Almanac. Former state Sen. George Clay of Tuskegee said VictoryLand is Mason County’s largest company and the taxes it pays the county is very useful for the county’s needs.

Country Crossing, with 1,700 bingo machines has just opened on Dec 1 its first phase costing $87 million, with new additions this year setting total investment at over $200 million.

January 30, 2010

New Ohio Casino Anticipated To Bring Economic Progress To Poor Neighborhood

In Columbus, Ohio, where a new casino is being planned to rise, people living near the proposed site are looking forward to an improved economic situation resulting from the establishment of the casino. The neighborhood, called the emptiest in the U.S., is almost abandoned, with 70 percent of the houses unoccupied. It consists of an apartment complex that’s nearly deserted, a strip club and retail stores that have been neglected. Across the street from it, on the city’s west side, is property formerly used by auto parts maker Delphi, General Motors’ former parts division, and is the site on which Penn National Gaming Inc. wants to build its new casino.

The original plan passed by voters in a recent referendum was for Penn to build the casino downtown. The change in location still needs to be authorized by voters in another statewide vote in May, and if the measure will not pass, Penn will go on with its first plan and build downtown. The neighborhood’s residents, although some are not so eager about the plan of a nearby casino, say they would welcome any economic development the casino would bring. "Everyone says they're afraid to come to this end of town," said 82-year old Joan Troyer, a resident of the place for 42 years. Real estate agents said the city’s west side is starting to draw interest from investors. Chris Salomone, a worker in a real estate company said that after Penn made it known that it was thinking about building the casino on the west side area, six bidders immediately signified interest on a former car dealership in the locality that was for sale, whereas last year nobody paid any attention to it.

The property, all 9 acres of it, sold at auction for $660,000, very much below the appraised value of $2.1 million. Salomone said the casino would inspire optimism and most likely give new life to properties. "If I had money, I'd buy options on property around there, the closer the better," said Doug Walker, who analyzes the economics of casino gambling and is an associate professor of economics at the College of Charleston in South Carolina. "You're going to have all this traffic; it can't help but be good." But an economics professor at the University of Nevada-Reno said people should not be too eager. "My suspicion is the results are not going to be overly encouraging or discouraging," he said. According to him, there are studies that prove gamblers prefer driving a hundred miles to go to a distant casino than gambling at newly-opened facilities close by. The neighboring states of Pennsylvania, West Virginia, Indiana and Michigan all have casinos that are in operation, and the Columbus casino would be one of four allowed in Ohio.

Eadington said the facility must be consistent with the area so that more opportunities for further development will emerge. The facility’s plan includes a steakhouse, sports bar, food court, buffet and maybe a hotel.

January 31, 2010

Gambling Thriving In North Carolina

The gaming business in North Carolina seems to succeed in developing its market share in the state, as could be observed with the industry’s latest trending. The North Carolina Education Lottery will soon go in with the Mega Millions multi-state lottery game. The casino on the Cherokee tribal land, visited by 2 million people a year, is expanding. And now comes gaming’s recent craze, the sweepstakes machines, which came into existence quickly after a state ban on video poker machines took effect in 2006.

As there is still no clear ruling on the legal direction of the sweepstakes machines, sweepstakes cafes continue to operate them and customers continue to play them. "It's like slot machines – bottom line – but I enjoy it," said a regular patron of a sweepstakes café. "There's nothing going on here that is deemed illegal," said one owner of a sweepstakes cafe, citing recent court rulings that he says protect his business. Owners of such businesses sell Internet time or cell phone minutes to players for an assortment of games. The tickets are decided in advance, just like the lottery.

The District Attorney of Wake County Colon Willoughby said legal disputes over the games that have reached his office are impossible to work out. “Law enforcement is not likely to spend resources investigating it if they know prosecutors can't go forward with the case," Willoughby said. He said with the availability of online poker and sports betting and the presence of the Cherokee casino and the state lottery in North Carolina, the people’s opinion of gambling has certainly changed and gotten better. Gambling-related crimes and arrests have also been noted to have declined abruptly throughout the state since the lottery started in early 2006. “I think enforcement has changed,” the District Attorney said.

Bill Brooks, president of the North Carolina Family Policy Council, a conservative group that is against any form of gambling, said the state clearly plans to legalize gambling. "I do think they are skirting the law. I think North Carolina clearly intends to regulate gambling. I think, when the state went into the gambling business, it was sending a message. If the state has some concerns about it, tax it, regulate it. That's the key to everything,” He said. State legislators are likely to deliberate on what action to take regarding sweepstakes and other gambling activities when they assemble in May.

January 28, 2010

Senate Panel Removes Land-based Provision, Passes Gambling Measure

The Senate Appropriations Committee passed Tuesday an amended bill on Indiana’s riverboat casinos and moved it to the full Senate. The original provision of Senate Bill 405 was to allow the casinos to move inland within the counties that they are located and to pay a fee of $50 million. Navigational systems would not then be required. However, Committee Chairman Luke Kenley, R-Noblesville was forced to suggest an amendment to the legislation because the casino industry had a difference of opinion on the issue. The amendment was the removal of the land-based provision out of the bill. Kenley himself did not vote for his own amendment, but it still passed 7-5.

“We got some pretty mixed signals and some pretty negative comments regarding efforts to deal with that particular issue,” Kenley told committee members. “I personally think we’re making a pretty big mistake not going forward with that, but I didn’t want to jeopardize other elements of the bill.” The committee passed the amended bill 10-2. The new measure would impose riverboat casinos to stay in the water, but they could do away with the navigational systems obliged by state law. The requirement to keep crews would also be eliminated, but that provision carries no significant weight because the casino boats are now permanently anchored ever since state law was changed in 2002.

As a consequence, the owners of the two casinos on Lake Michigan in Gary would no longer be able to push through with plans to merge into one land-based facility and relocate to a major interstate interchange. Sen. Earline Rogers, D-Gary said she was disappointed with the committee’s removal of the land-based provision, and that the Gary casino on the freeway would attract more customers and would provide the state more tax revenue. Rogers thinks the Casino Association of Indiana is responsible for the changes since the group had asked lawmakers to put off the issue until next year. “We are policymakers,” Rogers told her fellow committee members. “They are the investors. And we ought to make policy based on what we feel is best for Indiana.” She said casino owners should have insisted on the opportunity to move inland and expand, as the looming competition from Ohio’s planned casinos is “absolutely going to affect us. You have to strike while the iron is hot and strike while the stars are lined up. This window of opportunity might not be available next year.”

The bill also would legalize advanced deposit wagering, allowing betting on races through phone or the Internet without being at a track or off-track betting center. The horse track casinos, though, did not get the tax break they were asking for their ailing industry. The bill also provides for a decrease in the current $4 admissions tax paid by French Lick Resort Casino in Orange County for every customer’s entry to the gambling floor, in which part of the money would be used for repair expenses on two historic hotels within the resort. Resort representatives say resort owner Bill Cook has invested a great sum into the renovations so money is no longer needed.

January 27, 2010

Legislators Want Destination Resort-Casinos In Florida

A lawmaker from Fort Lauderdale is drafting a proposal called the Florida Gaming Equalization Act, which would allow completely developed casinos at five to seven destination resorts in the state of Florida. Republican Representative Ellyn Bogdanoff who was a keen crusader against gambling expansion in Florida in the past is doing a complete turnaround in pushing for full casinos. Two leading conservatives are backing her proposal: Rep. Alan Hays, a Republican from Umatilla and Rep. Carlos Lopez-Cantera, a Republican from Miami. Bogdanoff who will run for the state Senate seat currently occupied by Senate President Jeff Atwater, fought with former Gov. Jeb Bush to ban slot machines in Miami-Dade and Broward counties in 2005 and was among those who facilitated a 50 percent tax on slots in 2006. She has also been fiercely against Gov. Crist’s compact with the Seminole tribe.

The Florida legislators have been in disagreement with the Seminole tribe and Crist about a deal that would give slots and blackjack exclusively at the tribe’s seven casinos in exchange for at least $150 million a year to be given to the state. The tribe’s casinos have kept on operating the slots and card games even without a legal compact. Bogdanoff said she is drafting the proposal because Florida is “losing the battle” to the Seminoles. She believes it best to disregard the compact and instead “create competition to an industry that is not going away.”

As for the pari-mutuels, Bogdanoff said legislators “have to keep throwing them lifelines” because the tax rate and some restrictions have “put a chokehold” on them. “How do we allow them to invent themselves?” she asked. Bogdanoff’s proposal would compete with the Seminole tribe’s Hard Rock casinos in Tampa and Hollywood. Under the plan, local voters would first have to authorize the casinos in referendums. The state’s gaming commission would then issue licenses to an array of applicants, from Vegas-based operators to Florida’s pari-mutuels.

Sheldon Adelson, a billionaire investor and builder of huge convention centers and hotels said Friday that he is all set to invest in mega-convention centers and full casinos in Florida, and noted that a $3 billion resort casino could provide jobs to around 7,000 people. “We’re not interested in putting up slots parlors or a gambling den. We want destinations and integrated resorts. This is our specialty and we would have a very good interest in getting in – with the provision they don’t allow so many that the gambling market would be saturated,” said the chairman and CEO of Las Vegas Sands Corp. “It’d have to be in South Florida,” Adelson said, but he would also be looking at Tampa Bay and Orlando locations that are very near an international airport. A House committee will schedule a hearing on the proposal in February, but some lawmakers and many pari-mutuel operators do not think that the idea will achieve progress this year.

January 26, 2010

Iowa Lawmakers Mull Package For Limited Gambling Expansion

House Majority Leader Kevin McCarthy of Des Moines said Iowa legislators are deliberating a package of gambling measures that would produce up to $25 million in additional earnings for the government from the state’s gambling industry. The Democratic leader disclosed the information during a taping of this weekend’s program of “Iowa Press” which will be shown on Iowa Public Television. McCarthy says a major element of this package is for the state’s casinos to hold larger poker tournaments in bigger adjoining rooms.

Some casinos host poker tournaments and accommodate them only within the area where gambling is allowed, such as on the gambling floor beside the slot machines and card tables.
The measure under consideration would allow the poker tournaments to be held in bigger rooms or facilities within a casino where non-electronic gambling would be allowed. The state would thus earn more from gambling taxes collected from the casinos. “All these casinos have convention areas, ballrooms, places where they have boxing tournaments or whatever it is and we’d be looking at some sort of non-electronic form of gaming, so poker-type games…under the same existing rules and regulations we have right now in Iowa,” McCarthy says. “That would be a win-win because you’d have these gaming institutions make a little bit more money.”

McCarthy says the Harrah’s casino in Council Bluffs may gain the most from the proposal. “Harrah’s, for example, participates in the National Poker Championships that you watch on TV,” McCarthy says. “They’d be able to…draw from South Dakota and Nebraska and maybe have some fairly large tournaments there.” The package would also let the casinos pay a fee ending the condition of having their licenses approved by local voters in a referendum every eight years. Instead, a reverse referendum would be introduced wherein those who are against gambling could collect enough signatures to impose a referendum.

“This discussion has been around for a couple of years. What we would likely do is to say for casinos that have had two successful elections already over an eight year period — because they’re eight years apart, if you are stabilized in your community and it looks like they want you there — remove that referendum requirement this November and instead allow the voters a reverse-referendum possibility in the future,” McCarthy says. “If a community wants to get rid of gaming in their county, they’d be able to get some signatures and have a reverse referendum to remove that in future, so you’d still have the ability to have the voters have a say in the future.”

Another part of the package would provide additional revenue, though small, when the state’s horse and dog tracks are allowed to charge a fee from races that are simulcast outside the state. The idea of allowing video gambling machines in bars is not included in the package as it would provide competition to the casinos. McCarthy says the draft would be ready in two weeks’ time and the proposal would be tackled in February or early March.

January 25, 2010

Florida Supreme Court: Governor Has No Authority To Sign Gambling Deal

The Florida Supreme Court ruled Thursday that Governor Charlie Crist has violated state law when he signed a gambling deal with the Seminole tribe and the slot machines and table games that the Seminoles are currently offering at their casinos are illegal. Gov. Crist reached a deal with the Seminoles that allowed the tribe’s casinos to operate slot machines and table games. Table games are illegal under state law. House Speaker Marco Rubio has filed the case challenging Crist’s authority to forge a deal on his own without approval from the Legislature. The ruling is a triumph for Rubio, but cancels the $50 million payment to the state that would largely be used to fund education, plus a share in the revenues.

The court ruled, “We hold that the Governor does not have the constitutional authority to bind the State to a gaming compact that clearly departs from the State’s public policy by legalizing types of gaming that are illegal everywhere else in the state. The Governor has no authority to change or amend state law. Such power falls exclusively to the Legislature.” Race track executive Izzy Havenick was very pleased with the court’s decision. Pari-mutuels can only offer poker, and no other table games, thus, they are worried that table games at the Immokalee casino would rid the tracks of profits and customers. “Today is a good day for Americans. They got to see the checks and balances of government work,” Havenick said.

He thinks that competition is now somewhat fair, although he noted that slots have not yet been allowed at his Bonita dog track. “All we’re saying is give us what they have. Tax us. Let us put money into the state coffers. Let us create more jobs.” But the slot machines and table games at the Seminole Hard Rock Casino in Hollywood have not stopped. And so with the slots at the Immokalee casino, as the casino has not yet started offering card games. The Hard Rock in Hollywood started blackjack June 22 and has no plans of closing the gaming tables. “We opened 71 tables and they were installed with the approval of Gov. Crist and the federal government,” said Gary Bitner, the tribe’s spokesman. “We had 40,000 people playing at those tables the opening week. They’re playing at the tables now.”

As for the Immokalee casino, Bitner said it’s too soon to say what the ruling’s effect would have on the casinos’ plans for blackjack and the building of another casino. “Right now, the slots are open there as well as six of the seven casinos in the state operated by the tribe,” he said. “From the tribe’s perspective, they’re studying the decision.” Bitner said the court has clearly stated that the decision is not final, as it has yet to rule on any motion for rehearing. “That process is likely to take a number of months. Depending on the final decision by the court, the tribe may seek review by the United States Supreme Court,” Bitner said.

January 24, 2010

Kansas Bills To Straighten Existing Law For Full Gambling Expansion

A law was passed in Kansas in 2007 which allowed a casino in each of four locations and slot machines at racetracks in Kansas City, Wichita and southeast Kansas. But backers of expanded gambling are saying that there are features in the law that they regard as unfavorable and detracting to the extensive expansion of gambling.The state’s need for financial security and the possibilities of bringing in new revenues have prompted legislators to introduce proposals intended to make changes in the old law. The adjustments could mean $40 million in new revenue for the state within a year.

Thus, two separate bills having the same intention were filed in the Senate and the House. The Senate Federal and State Affairs Committee introduced a bill Wednesday and the House Appropriations Committee followed suit the following day. The Senate committee has scheduled a hearing for next week. The two bills would amend the 2007 law, clearing impediments and making way for a full expansion of gambling. "It's long overdue," said Rep. Julie Menghini, a Democrat from Pittsburgh. "I'm excited about it. I think it's a great way to keep revenue in our state and, hopefully, bring revenue into our state."

Proponents of expanded gambling have suggested redrafting the law last year, but Republican legislators did not like the idea of going through another long debate. However, Senate President Steve Morris, R-Hugoton and Majority Leader Derek Schmidt, R-Independence both say there may be a debate on gambling this year, although the more conservative House leaders may prove to be tough adversaries. In 2007, the flawed bill was forced through the Legislature by moderates and Democrats, disregarding admonitions from conservatives that is was defective, and stopping every attempt to modify it. "They got the deal they wanted, they can live with the deal they got," said House Speaker Mike O’Neal, R-Hutchinson.

Under the existing law, casino owners can build and operate casinos and tracks can offer slots subject to contracts with the Kansas lottery. However, the lottery has not gotten any applicant for the construction of a facility in either Crawford or Cherokee county, which, as mandated by law, would need to put in $225 million for the project and pay in advance a $25 million fee. The two bills would ask for only a $100 million investment and an $11 million fee.

The lottery and the owners of the dog and horse racing tracks are also in disagreement over the operators’ share of the net revenues from slots which the law has put at 40 percent, and which the track owners said would hardly give them any profit. The two bills would set their share at 58 percent. The two proposals would permit slots that were not allowed under existing law at Anthony Downs and Eureka Downs that have short summer seasons, and would also allow voters in Sedgwick County to vote again if 5,000 voters signed petitions. In August 2007, voters turned down slots at Wichita Greyhound Park.

January 23, 2010

Indiana Likely To Allow Riverboat Casinos To Move Inland Due To Looming Competition

Legislation is being considered in the Indiana Senate that would allow riverboat casinos on the Ohio River and Lake Michigan to move inland. The Senate Appropriations Committee Thursday takes testimony on a gambling bill that would allow the casinos to relocate toward the interior of the city or county where they are located for a fee of $50 million and after which navigational systems would no longer be a requisite. A major intersection of interstates in the city could be a good location for one of two casinos on Lake Michigan in Gary, whose fee would be waived since the other license would be given back to the Indiana Gaming Commission. "All we're asking for is to move to a place where we can capture some traffic," said Sen. Earline Rogers, D-Gary.

The bill, sponsored by Senator Ron Alting, R-Lafayette, was taken up for discussion because of the threat of new casinos and the possibility of expanded gambling in bordering states. "This bill will help the gaming industry remain healthy and protect revenues and jobs," said Sen. Alting.Senate Appropriations Chairman Sen. Luke Kenley, R-Noblesville said Indiana’s casinos should be offered some protection as they contribute a total of $1.1 billion in annual state and local taxes, besides providing work for 16,000 people. Supporters of the bill told the committee moving the casinos off river could prepare them for the coming competition and could make their business better.

Casinos in Indiana are facing competition on all fronts. In November, Ohio voters approved a casino in each of the cities of Toledo, Cincinnati, Cleveland and Columbus. The casino in Cincinnati could severely affect the three casinos in southeastern Indiana: Hollywood Casino, Grand Victoria Casino in Rising Sun and Belterra Casino near Vevay. A good percentage of their customers come from nearby Cincinnati. According to an analysis made by the General Assembly’s nonpartisan research arm, the Indiana Legislative Services Agency, the three casinos could lose $260 million in gambling revenues in the first year when the Ohio casinos are operational. That could mean a loss of $93 million in taxes for the state.

The analysis further said the Toledo casino 25 miles northeast of Indianapolis would take away gambling customers from Hoosier Park’s casino in Anderson and around $9 million from the state. Michigan, with its over 20 gambling facilities, is thinking of adding more tribal casinos. A new casino near Chicago is also on its planning stage, and Kentucky racetracks are likely to have either slot machines or casino-style gambling. Some casinos are against the bill, saying they could lose some patrons and profits to the riverboat casinos that move inland and attract more customers. The Casino Association of Indiana suggests putting of the issue until next year. The Senate committee plans to vote on the bill early next week.

January 22, 2010

Constitutional Amendment To Expand Gambling Passes Senate Committee, Goes To Full Senate

The Senate Committee on State and Local Government endorsed the proposal of Senate President David Williams, R-Burkesville, requiring any type of expanded gambling not currently legalized and in force in the state to go through a constitutional amendment. The proposed law, known as Senate Bill 2, was approved by the Senate committee on a party-line vote Wednesday, and according to Williams, the full Senate will vote on it Thursday. The 12-member Senate committee approved the proposal by a 7-5 vote. Seven Republicans voted for it, and 5 Democrats voted against it.

Democratic lawmakers are in favor of a legislation authorizing slot machines at race tracks as a way of extending aid to Kentucky’s ailing horse industry, and to bolster state revenue, and the proposed constitutional amendment of Williams is likely to weaken the Democratic proposals for expanded gambling. Williams is known to be the most prominent foe of expanded gambling in the legislature. Gov. Steve Beshear has made it known that the state badly needs the revenue considering the $1.4 billion budget gap. House Speaker Greg Stumbo also filed a measure in which a large part of the gambling revenue would be used to fund the repair of dilapidated schools.

Attorney General Jack Conway has ruled that even if a law exists in Kentucky that limits gambling in the state, the legislature could pass a bill allowing expanded gambling at the tracks. A bill needs only a majority vote in both houses of the legislature and the governor’s signature to become law, while a constitutional amendment must first be approved by a three-fifths majority each in the House and Senate, and afterward presented to voters for approval through a referendum.

Senate Minority Leader Ed Worley, D-Richmond said Senate Bill 2 has a very slim chance of making it in the full Senate, as there are 21 Republican seats including one independent, and 23 votes are needed for the bill’s passing. Worley said although two Democrats have said they will not support Beshear’s and Stumbo’s stab at allowing expanded gambling at race tracks, he still did not expect a vote from any Democrat for the amendment. Williams said he didn’t know if the amendment could get enough votes to pass, but it has a chance. “I have to have two discerning Democrats. … We either have to change their mind or change the senators.” Williams said his amendment would “let the people decide what type of expanded might be allowed.”

January 21, 2010

Kane County’s Attempt To Revive Video Gambling Vote Faces Setback

The Legislative Committee of Kane County Tuesday talked about taking another vote on allowing establishments in unincorporated areas to install up to five video gambling devices. But the discussion came to a close without a proposal from any committee member for a motion to bring the vote back next month and declare the current ban invalid. In December, the county board voted to ban video gambling in unincorporated areas, with the decision to ban winning by a one-vote margin. The chairman of the Legislative Committee, Hollie Lindgren voted in favor of a ban. Now, though, she wants the Kane County board to act again to cancel the ban.

Lindgren said the shift in her position happened after she talked to people who tearfully told her that they are alarmed at the thought that the consequence of having no video gambling might mean no capital bill for their community, and therefore, no jobs for them. However, the other committee members told a completely contrary account. County board member Jennifer Laesch said people in Aurora have conveyed their opposition to video gambling, saying they do not want any more gambling in their area since they already have a casino.

Tom Van Cleave, another committee member who is firmly against video gambling, expressed his annoyance at a recently-held meeting with state lawmakers where, instead of an overall discussion on the capital bill, talks were more focused on video gambling. A spat ensued when Lindgren told the group that talk is going around in Springfield that projects and assistance under the capital bill will not be given to a community who has opted out of video gambling. To which committee member Sylvia Leonberger reacted, and asked, “So they’re holding us hostage?” Lindgren replied, "I'm not saying they are threatening us, I'm saying there's talk of it."

For county board member Bonnie Kunkel, now is not the right time to revisit the ban because the state has not provided any new information regarding regulations since the board’s vote on the ban. "Now is a bad time to switch horses," Kunkel said. "It seems like the only thing precipitating this is the perception that we may not get capital funds in the future. The reason many people voted against this is that now is not the time to make a decision. We don't have any more information about the regulations. To change now just makes us seem indecisive and accomplishes nothing. Leave it alone until we know that any change would be a change for the positive."

When the meeting adjourned, Lindgren said she will not quit and she is determined to make the board change its mind. "The bottom line is it's going to give us jobs. If the capital bill is one way of saving one home in Carpentersville and getting a man back to work or a wife back to work, I'm going to do it." But she needs the help of state lawmakers to allay the fears and doubts persisting in the minds of county board members.

January 20, 2010

NJ Internet Gambling Bill Gets Varied Responses

The new bill sponsored by state Sen. Raymond Lesniak, D-Union that would authorize Atlantic City casinos to offer online gambling to residents of New Jersey is getting different reactions from concerned individuals. The bill has already aroused anger and resentment from the opponents of gambling whose aim, among others, is to fight addiction from compulsive gambling, and who say that the availability of Internet gambling only makes it easier for those who are inclined to be addicted.

Aside from that, there are those who questioned the focal points of the bill, particularly the one that seems to allow video lottery terminals for Internet gambling at the state’s horseracing tracks. The bill says the video lottery terminals may look like slot machines, thus possibly creating a casino-like gambling at the tracks. The chief executive officer of the three Trump Entertainment Resorts casinos, Mark Juliano said the video terminal machines at the tracks would be competing with the casinos in Atlantic City for gambling patrons if the tracks are allowed to get those slot-like devices as pointed out in the legislation, hence the city’s gaming industry is strongly opposed to the idea. "Anything that would include VLTs would not be something we would support or be interested in," Juliano said.

At present, the casinos are paying the state’s horseracing industry $90 million for a three year deal prohibiting video lottery machines at the tracks. With the new legislation, horseracing industry would get a portion of the 20 percent annual tax charged on Internet gambling’s gross revenue. The chairman of the law section of the New Jersey State Bar Association, Stephen D. Schrier, cited a detail in the legislation that says VLTs that look like slot machines could be allowed at racetracks, and wondered whether it would go against the state Constitution, which restricts casino gambling within Atlantic City. "If we're talking about slot machines or VLTs outside of Atlantic City, I would have trouble seeing how that would be legal under the New Jersey Constitution," he said.

For City Council President William Marsh, his main worry is the detriment the legislation may cause on Atlantic City as gamblers would see no need to visit the casinos if they can bet on poker, blackjack and other games on their computers. "If I gamble from home, why am I going to pay to travel and stay at a hotel and all that in Atlantic City?" Marsh asked. Mayor Lorenzo Langford, who said he would support the bill, also recognizes the likelihood of Internet gambling keeping away potential customers from Atlantic City’s casinos, but said the city has as much attractions as necessary to pull and entice tourists. Langford said, "There are other reasons why folk come to Atlantic City,” like dining in restaurants and watching live entertainment shows. “You can't do all that from the computer. We would have to weigh the good with the bad. I think the good outweighs the bad.

January 19, 2010

Bill Would Legalize Internet Gambling In New Jersey

New Jersey Senator Raymond Lesniak, D-Union has sponsored a bill legalizing online gambling in Atlantic City. The bill is up for deliberation this week when lawmakers resume session. The move has put New Jersey along with California and other states which are seeking to offer betting games such as poker, on the Internet. “There are probably 500,000 online poker players in New Jersey alone. And we’re missing out on around $100 million in revenue,” said Sen. Lesniak.

Lesniak cited a recent federal court of appeals’ ruling that said online gambling must be restricted within the borders of a state, in effect limiting the wide authorization of online gambling, and in so doing, has provided an opportunity for New Jersey. “We would restrict the games to New Jersey residents. And I believe that would satisfy that ruling,” Lesniak said. Lesniak’s bill provides that the Web sites offering the online games would be run only by the licensed New Jersey casinos, which are all located in Atlantic City. Furthermore, the equipment for the operation of Internet gambling must be placed in a restricted area of a casino or in a safe and protected venue outside the property of the casino, but should be “within the territorial limits of Atlantic County.” The wording of the bill expressly would allow “New Jersey residents to place wagers on casino games via the Internet.”

Online gambling is illegal in the U.S., where the only form of gambling allowed by federal law is the one done in land-based facilities with a valid casino license issued by a state where gambling has been legalized. But steps have been initiated in the past months signifying a different outlook on the ban on Internet gaming. In 2009, Rep. Barney Frank, D-Mass., and Rep. Jim McDermott, D-Wash. have proposed a bill that would legalize, regulate, and tax online gambling. The Joint Committee on Taxation reported in October 2009 that estimates on tax and licensing revenues from regulating Internet gambling would amount to almost $42 billion in 10 years. And information has it that over $100 billion each year is spent on gambling by unregulated players in the U.S.

New information issued by the New Jersey Casino Control Commission showed that the state’s 2009 gambling revenue declined 13.2 percent from 2008. Lesniak’s bill would charge Internet betting a yearly tax of 20 percent on gross revenue, 12 percent higher than what Atlantic City’s casinos are charged. New revenues from higher tax charges could prop up the state’s finances.

The bill would form a Division of Internet Wagering to be governed by the state Casino Control commission.

January 18, 2010

Senate President Miller Proposes Putting Slots In Prince George’s County

Senate President Thomas V. “Mike” Miller, a Democrat who represents the counties of Calvert and Prince George’s wants to bring slots to Prince George’s County, and he wants it accomplished this year at the problem-stricken Rosecroft Raceway, to help revive the track, or at either of the two other locations: the National Harbor or an equestrian center in Upper Marlboro. Miller said Thursday that he wants lawmakers to consider his idea and see if it is sensible and worthwhile. He said he is still consulting Prince George’s officials and Sen. C. Anthony Muse, a Democrat whose district includes the area where Rosecroft Raceway is located, and whose support Miller needs. Gov. Martin O’Malley and county leaders, however, did not show an excited interest in Miller’s proposal.

Miller’s proposal could stir up another debate, something that lawmakers have qualms about doing after having gone through a long and difficult debate on slot machines in a 2007 special session, in which lawmakers approved a plan to present to Maryland voters. The constitutional amendment was consequently approved by voters in 2008, legalizing up to 15,000 slot machines for each facility in Anne Arundel, Cecil and Worcester counties, the state-owned property at Rocky Gap Sate Park in Western Maryland and the city of Baltimore. O,Malley, after being asked of Miller’s idea, said, "This is the first I've heard of it," adding he is “not looking to go backward” this legislative session to talk about issues that have already been discussed and settled.

House Speaker Michael E. Busch said he is not aware of any support prevailing among the representatives of Prince George’s, and added that if the Senate passed Miller’s proposal, he would be doubtful of its chance in the House. He said during the 2007 session, "no one from Prince George's County stepped up to the plate. In fact, that county was adamantly opposed at the time." Muse, for his part, said he is “open to looking at all possible options” to help Rosecroft Raceway. He also said he would rather the tracks have high stakes card games, as he, as a minister keeps a “social opposition” to slots, a suggestion that Miller said he could give his backing to.

State leaders have put a chance on the slots legislation, hoping to raise hundreds of millions of dollars in annual revenue, but a year after license applications were submitted, only three licenses were awarded, and none were issued in Baltimore and Western Maryland. Donald C. Fry, chairman of the state slots commission said the commission will meet next week to finalize its suggestions and endorsements to lawmakers, but putting slots in other counties is not one of their recommendations.

January 17, 2010

Lawmakers Reject Seminole Deal

The gambling deal between the state and the Seminole Tribe proved to be unacceptable to lawmakers, as the House Select Committee on Seminole Indian Compact Review unanimously voted to block its passing Thursday. The new version of the agreement was a replacement for a deal that Gov. Charlie Crist first negotiated with the tribe in 2007, and was nullified by the Supreme Court in 2008 on the grounds that any financial deal with the tribe has to be approved first by the Legislature.

The new deal was crafted by lawmakers last year to serve as a guide for Crist as he negotiated anew with the tribe. The agreement would have led to a projected $6.8 billion for the state in 20 years, but the governor deviated from the details outlined for him by the lawmakers. The major change that Crist made was allowing card games like black jack at the tribe’s seven casinos, while the lawmakers originally wanted to authorize those games only at four casinos. “We came up with what we thought was best for the state of Florida,” said Rep. Audrey Gibson, D-Jacksonville. “And ultimately it was unacceptable, so we got back the same compact we started out with. So why would we go back to that when we fixed it?”

Rep. Bill Galvano, R-Bradenton, who is the committee’s chairman said he remains hopeful that some kind of deal will be reached at some point, but also warned that negotiations will be difficult given that the tribe has continued to offer card games in their casinos which are illegal under state law.

Crist and the Seminoles have also expressed optimism that a more acceptable agreement can still be achieved. “We obviously have a long way to go before the end of session, so there is plenty of time for the Florida Legislature to approve a plan that would direct billions of dollars to Florida schools for years to come. We all agree that Florida’s students and teachers must be a top priority, and that the education of our future workforce is essential to Florida’s economic future,“ Crist’s statement said. “While the leaders of the Seminole Tribe are disappointed with today’s vote, they are optimistic that with the continued strong support of Gov. Crist, a resolution of the compact issue will ultimately be achieved,” the tribe said in a statement.

The committee, however, approved some gambling changes intended to assist the state’s pari-mutuel facilities. The measure, which would be effective July 1, 2010, would allow the pari-mutuels to offer no limit poker and extend card room activity from 12 hours per day to 18 hours daily Monday to Friday, and 24 hours on Saturday and Sunday. It also provides for the gradual decrease in the annual slot machine license fee from $3 million to $2 million.

One lawmaker said the provisions will help the pari-mutuel industry deal with competition from Seminole casinos. “The tribe is doing what it wants to do anyway, and we’re not doing anything as a state to stop them,” Rep. Gibson said.

January 16, 2010

Alabama’s Electronic Bingo Games May Be Legalized

Casinos in Alabama have no table games and slot machines. What they have are electronic bingo machines that work and look a lot like slot machines, but a player’s win or loss is decided by fast games of bingo, which is legal in parts of Alabama. For several years state leaders have argued over whether these electronic bingo machines are legal under state law which outlaws slot machines. Gov. Bob Riley remains adamant in his fight against illegal gambling and has continued to view electronic bingo machines as slot machines. Indian casinos, however, are offering the bingo machines at their facilities, insisting that these games are legal since they are governed by federal law rather than state law.

Alabama legislators have proposed a bill Tuesday, sponsored by Rep. Marcel Black, D-Tuscumbia, which would legalize these machines. The proposal recommends that all games that are legal at Indian casinos would also be legal at non-Indian facilities already existing. This would mean that gambling facilities like Victoryland in Macon and Country Crossing at Dothan could continue operating the electronic bingo machines. Officials of Country Crossing asked a court last week to stop a raid that was about to be carried out by the Governor’s antigambling task force. The legislation is seen as an attempt to prevent the task force from conducting more raids to cease activity of electronic bingo machines.

A public hearing on the bill is planned for Jan. 20 by the House Tourism and Travel Committee. Rep. Black said the aim of the legislation is to keep a level playing field for all gaming operations, and not giving special treatment to any business. "When people go into a facility run by an Alabama operator and when they go into an Indian facility, there's no difference, it's all gambling. This needs to be done to keep it fair," Black said. Jeff Emerson, the Governor’s communicating director said, since the Alabama Constitution says those games are illegal, that would make the bill unconstitutional because no act passed by the Legislature can take priority over the constitution.

House Minority Leader Rep. Mike Hubbard, R-Auburn said he believes the bill will not be supported by most Republicans in the Legislature. He thinks that the proposal is likely to bring about a monopoly for the existing facilities. And like Emerson, he said, "If the constitution says slot machines are illegal, that supersedes any statute." Doug Rainer, speaking for Country Crossing, said, "Right now we are supporting movements that would eliminate Bob Riley's attacks on legal businesses such as ours.” Black said he is also thinking of bringing back a constitutional amendment that would allow and tax electronic bingo machines at specified areas and form a gaming regulating commission.

January 15, 2010

Illinois Gaming Board Says “Gray-Machine” Operators Will Be Banned From Legal Video Gambling Business

By law, the Illinois Gaming Board is the state’s policy-making body tasked to form rules to regulate video gambling, including licensing machine suppliers and operators. Video gambling was legalized by the General Assembly last summer to help fund a multi-billion dollar statewide construction and jobs program. The board on Wednesday decided on rules to prohibit people who have been involved in the operation of illegal video gambling machines in the past from having a chance to participate in the approved system when it starts operation late this year. Under a rule approved by the board, anyone found guilty of crimes connected to gambling will be barred from manufacturing, operating or installing the legalized video gambling machines in any establishment he owns or runs.

The gambling devices, popularly known as “gray machines” because of the gray area or unclear and unspecified situation they are in, are intended to be played for entertainment purposes only at taverns and other establishments, but are often used for illegal gambling where money is actually paid. The gaming board has also set Dec. 16, 2009 as the cut-off date for the granting of permits for the legalized video gambling machines, and those people who have been believed by board investigators to have “facilitated, enabled or participated in the use of” the illegal gambling machines after the said date will be automatically not allowed to operate legally, no matter whether they are charged with the illegal activity or not.

However, cases of those who have been found to have operated gray machines before the said date will not be judged as a whole, but each case will be considered separately to be able to establish the suitability and qualification of each operator to participate in the recently-legalized industry. The state now licenses around 21,000 amusement-only gaming machines, at $30 each machine. The unlicensed machines are estimated to run to over 40,000. It has also been confirmed that both licensed and unlicensed machines are used illegally.

The new machines are estimated to generate tax revenue of close to $300 million a year, but variation of that figure hinges on the strictness in enforcing the licensing policy and the number of towns and counties opting out of video gambling. Some state lawmakers have questioned the board’s delay in implementing the video gambling, and consequently putting off construction programs throughout the entire state. Lawmakers were expecting video gambling could be launched this summer, but the gaming board said it will begin rolling out the machines in December this year.

January 14, 2010

PartyGaming Signs Five-Year Exclusive Deal With Danske Spil

Online gaming company PartyGaming, the sixth-largest gaming operator in Europe, announced Monday an exclusive five-year agreement with Danske Spil, Denmark’s sole provider of online gambling in the country. Under the deal, PartyGaming will provide online poker and online casino games to Danske Spil to be made available to Danes through its existing Internet gambling website. Danske Spil, a company founded in 1948 and which is 80 percent controlled by the Danish government, has held a monopoly over the country’s gambling operations for years, offering sports betting, bingo, keno, gambling on machines and the country’s national lottery. It is one of Europe’s largest betting and gaming organizations, with a reported turnover of nearly DKr 11 bn ($2.1 billion) in 2008. Its registered online members currently add up to 500,000.

However, the Danish government is likely to partially liberalize its online gaming market as a new draft legislation has been announced in 2009 that is expected to become law in 2011, that would regulate the industry, allowing the entry of foreign competitors. If implemented, poker and casino games will be those that will be available to rival operators. Largely encouraged by the tax revenues, several European countries have also taken steps to legalize online gambling. Italy opened its market to online tournament poker last year, and Germany is exploring the possibility of a legislation on online gambling. In France, lawmakers are set to start hearings this month on modifying and improving the guidelines and licensing of online gaming.

An analyst at Numis, Wyn Ellis said, “We should expect a number of other deals like this. As these European markets liberalize, incumbents and operators within these countries are likely to be well placed to win the licenses. So the strategy for companies like PartyGaming is to target various local partners and provide business-to-business services to them." PartyGaming chief executive Jim Ryan expressed his delight at the contract with Danske Spil, and called it a “landmark” deal. He remarked, "The agreement validates our strategy to become a leading provider of B2B services to both corporates and governments around the world. We look forward to building a significant and profitable enterprise as soon as the newly regulated Danish online market opens.”

The partnership’s financial terms and other details are still being resolved and will be finalized in the coming weeks. Considering Danske Spil’s large member base, the website would definitely be in an extremely advantageous situation when the Danish government adopts the new liberalization law allowing competition from foreign operators.

January 13, 2010

Cash-Strapped Estonia Turns To Online Gaming

Estonia, one of the countries in Europe severely affected by the global economic recession is finding itself in a deep financial mess. After seeing its economy decline by 36 percent, the government has become aware of the pressing need to find new sources of income, and so has decided to legalize online gambling to be able to raise new revenue from taxes imposed on online gambling operators. Estonia was supposed to join the European Union’s single currency, but after its economy was ravaged by the recession, it was no longer able to meet the strict requirements needed for Eurozone admission.

With the adoption of online gaming, Estonia has gone along the path taken by other European countries like The Netherlands, Italy, Poland, Belgium and Sweden, whose governments have one and the same intention, that is, to raise money from taxation to help fund public finances. The Estonian government is optimistic that the earnings from issuance of licenses and from the 5 percent tax charged on gross revenue will bring about the expected financial recovery that will eventually put its economy on track.

The new Gambling Act is designed to be implemented in two phases. The first phase, which was fully functional at the start of the new year, allowed gamblers to play online using only the locally-licensed and Estonia-based gaming sites, such as the one granted to, and set up by the Olympic Casino group, and developed by Playtech, one of the industry’s most famous software companies. Mr. Mor Weizer, Executive Manager of Playtech, has said of the business collaboration, thus, “We are truly glad of this opportunity to start our partnership with Olympic as the leading casino entertainment provider in Central and Eastern Europe. The second phase will be activated in 2011, wherein access to Estonia’s entire online gambling market will be allowed to foreign operators.

Estonia’s regulatory body will make use of the one year gap between the two phases to carefully formulate clear and specific rules and to polish up some items for the operation of a safe, legitimate and profitable international online gambling business. At this point in time, a number of foreign online gaming investors are setting their sights on the Estonian market, since they regard it as having a great potential for high profit, and also as a good entryway into the Baltic market. However, gamblers and poker players in Estonia are concerned over the information that the online gambling market will be restricted only to local companies for a year since it would mean limited online movement and a low potential for profit. Estonia’s decision to legalize online gaming including online poker was spurred by the very successful poker tournament that was held in the country last year, and sponsored by PokerStars.

January 12, 2010

Horse Race Betting In Georgia Pushed By Lobbyists

Lobbying groups in Georgia are full of activity these days as Georgia lawmakers are heading back to work for the legislative session that resumes this week. The lobbyists are promoting horse-race betting in Georgia, believing that the racing facilities can raise millions of dollars badly needed by the state to cover the budget deficit. According to lobbyist Arthur Anderson, the $2 billion drop in state tax revenue will be highlighted in the gambling issue debate, and Georgia lawmakers may well take a cue from Indiana which raised a lot in revenue after it legalized horse race betting in 2007.

Anderson, who is with the Georgia-South Carolina Horse Racing Committee based in Augusta, spoke to supporters in a meeting Sunday, saying, "We see it as a win-win-win. The money trickles down all the way to the little guy and up to the big guy, and the taxes just come in." Anderson is also running a campaign that advocates the proposal to use taxes from racetracks for funding public education. "Educators think it's wonderful," said Lisa Amey, who acts in behalf of a number of people who have invested money to put up $20 million to build a track and training facility in southern Atlanta which will be named Georgia Downs. Amey said the project would need contractors and would give rise to around 600 other jobs. Anderson said tracks can also be put up by the state in places like August, Savannah, and Valdosta or Hawkinsville.

And since many of the legislators are inexperienced on the gambling issue, the lobbyists are faced with the task of educating the lawmakers, and explaining to them the many aspects and details of pari-mutuel gaming and off-site betting. In November, half a day was spent by experts in a hearing, giving details and clarifying matters on the business of race track gambling to lawmakers. Maria Strollo Zack, an expert lobbyist hired by Profit Georgia LLC, an association of horse breeders, said she expects the introduction to be made soon after the General Assembly convenes from its recess. She added that Rep. Harry Geisinger, R-Roswell, who led the November hearing will likely handle the introduction.

Other lobbyists who want another type of gambling, are pushing to legalize the construction of a casino in Underground Atlanta, but Anderson says he thinks horse racing has a bigger chance of making it. "We think that our position is going to be the most palatable to the people," he said.

Whichever type of gambling the legislature may approve would still have need of a constitutional amendment.

January 11, 2010

West Va. Casinos Facing Impending Competition From Neighboring States

Once table games are brought in to Pennsylvania casinos most likely this summer, and Ohio allows casino gambling in November, West Virginia casinos could “get hammered” from both sides, as one expert puts it, since the facilities in West Virginia, where table games were legalized in 2007, attract clients from these bordering states. Industry experts say a large number of gamblers prefer playing, at least on a regular basis, at a nearby casino rather than driving to a far location.

The expanded gambling in Pennsylvania will have an impact on the two West Virginia casinos nearest the Pennsylvania boundary, Wheeling Island Hotel-Casino-Racetrack and Mountaineer in Chester, causing these casinos to lose their dominance. "I think it will be significant," said Paul Girvan, of the Innovation Group, an industry consultant. The Innovation Group, in projections it made for casino operators in Pennsylvania, has estimated that the table games will produce revenue of $864.5 million by 2012. Over half of that amount, or $502.8 million will be from Pennsylvania residents who presently gamble in West Virginia and Atlantic City.

Harvey Perkins, senior vice president of another industry consultant, Spectrum Group also perceives the Pennsylvania decision as a cause for concern for West Virginia casinos. He advises them to strengthen promotions, modernize facilities, and offer new amenities, to be able to compete and lessen the blow.

Similarly, West Virginia Democratic Sen. Ed Bowman believes West Virginia casinos will take a beating from the coming competition, and says the casinos will have to present the best they can offer to keep their hold on out-of-state customers. He said 90- 95 percent of the license plates at the two West Virginia casinos are from Pennsylvania or Ohio, and the state has already recorded some drop in slots revenue from competition in Pennsylvania. The Senator has been urging the Legislature for a tax cut on table games, from the present 35% to same as Pennsylvania’s 16%, to help the casinos cope. But casino operators do not appear fazed with the experts’ predictions, believing that the impact will not be that severe. Bob Griffin of MTR Gaming which owns Mountaineer said he sees some table game revenue loss to Pennsylvania, but not much. "The majority of customers come from Ohio. They will continue to come to Mountaineer. A small percentage (of customers) from Pennsylvania go to West Virginia. We will lose some of them but not all of them," he said.

Wheeling officials also think the same. Mike Maestle, vice president of gaming operations said it was too early to conclude what the full effect would be, but believes most of his customers would remain. “We believe we have a first-class product to offer and we can compete. We believe our players love what we have to offer and will continue to visit us. We are in a very competitive market. All operators, all casinos, are going to be putting their best games forward and thriving to gain market share and protect market share," he said

January 10, 2010

Gronstal Says Gambling Machines In Taverns Not Likely

Senate Democratic Leader Michael Gronstal of Council Bluffs says the idea of allowing Iowa bars and taverns to install gambling machines is highly unlikely to be approved by the state Legislature. The Senate majority leader said the proposal to expand gambling for the purpose of generating more tax revenue has very little appeal to the legislature and gave the plan a very minimal chance of passing.

In 2006, the Iowa lawmaking body voted to ban the Iowa Lottery’s TouchPlay machines that resembled slot machines and were set up in bars and taverns as well as grocery stores and convenient stores, resulting in several court cases. "A couple of years later we're going to go reverse that and go back?" asked Gronstal. "I think that's unlikely." He added that most of the lawmakers who voted to ban the machines a couple of years ago are still incumbent. “I think people will remember that in the Legislature and say, ‘Let’s not go back there,’ “Gronstal said.

Supporters of the gambling machines have suggested restricting the machines in “adults-only” bars and taverns, especially since some bar owners have raised objections to the smoking ban, claiming it had negative effects on business, and the expanded gambling could make up for the establishment’s loss as it would attract new customers. But Gronstal thinks many legislators do not like the idea. "Instead of 6,000 locations in Iowa, maybe you're down to 4,000 locations, it's not that limited," Gronstal said.

Gronstal discussed this issue and some other topics that may be taken up during the 2010 legislative session, during a taping of this weekend’s edition of “Iowa Press” on Iowa Public Television, where he is the guest. The Iowa House and Senate will start sessions on Monday and will possibly focus the discussions on cutting state expenditures to reduce the budget deficit that could reach $1 billion. Some say cutting state spending could mean increases in property taxes that fund local governments and schools.

But Gronstal said the legislators are backing the use of cash reserves rather than increasing property taxes, and they are creating a measure with that legal provision. "We're dipping into our cash reserves in a fairly significant way," said Gronstal. "We think it's appropriate for school districts and local governments to do that as well, as opposed to raising property taxes."

Gronstal also disclosed that there are talks of changing the tax credit system, but the movie credit may be maintained. On Friday, a group of state agency directors proposed fixing Iowa’s system of tax credits, like putting $185 million as the maximum amount for business credits and removing a tax credit for movie makers.

January 9, 2010

Oaklawn Park Opens New Electronic Gambling Parlor

When the Oaklawn track begins its live thoroughbred racing season next week, bettors will be treated to an extra entertainment with the addition of its new gambling area. The place has the ambiance of a casino, and gamblers can play poker, craps, blackjack and slot-like machines. But the games are all electronic, so are the “cards” and the “dice”, technically describing the entertainment as “electronic games of skill”, thereby making it possible for Oaklawn to circumvent a state law that bans casinos in Arkansas.

The expanded gambling at the 106-year old track started soon after Arkansas launched its state lottery. “We're not the only game in town anymore," Oaklawn spokesman Terry Wallace said. "Arkansas is in the lottery business; we're not the only people who offer the opportunity to gamble." The electronic gambling parlor with its 850 machines is a momentous move for the state’s largest tourist attraction, which Wallace estimated a million people will visit this year. The expanded gambling also served as the state’s long delayed solution to competitions in neighboring states which severely reduced Oaklawn’s revenue, such as the casino in Tunica, Miss., which opened 20 years ago.

The parlor is having a soft opening to make some adjustments and to iron out possible glitches before the start of the live racing season on Jan. 15. Thursday afternoon, a number of people tried their hand on the different machines, from the new penny games that look like slot machines to the electronic blackjack tables with a $25 minimum bet. Standing next to the latest games of skill machines are the Instant Racing machines which allow players to bet on randomly selected past horse races. These machines are currently offered only in Arkansas. Oaklawn also has a buffet, a poker room and a race book for high-stakes horseracing.

Oaklawn and Southland Gaming and Racing in West Memphis failed to obtain approval from a statewide voter referendum in 1996 which would have authorized them to operate casinos. But in 2006, through another referendum, both tracks were granted permission for “electronic games of skill” after a bill was passed in the Legislature in 2005. Southland at once applied the measure and expanded, while Oaklawn waited for a ruling from the Arkansas Supreme Court to clear a dispute, after which, the track had to plan the construction so as not to disrupt its live racing season. Oaklawn’s gambling area is open from 10 a.m. to 2 a.m. on weekdays and until 4 a.m. on Fridays and Saturdays. It is open longer than its simulcast racing hours. "There is enough tourism traffic in our town, people are always looking for things to do," said Wallace. On Tuesday, Oaklawn be closed for three days to prepare for the live season.

January 8, 2010

Alabama Judge Blocks Antigambling Task Force Raid on New Casino

Country Crossing Casino near Dothan officially opened on December 1, 2009. The $87 million entertainment complex has restaurants, an inn and a concert venue, and 1,700 electronic bingo machines. Since gambling is illegal in Alabama, the casino does not offer table games or slot machines. But Gov. Bob Riley says the casino is operating illegally because the bingo machines apparently do not have the features for legal bingo that have been recently summarized by the Alabama Supreme Court in another case relating to the White Hall Casino near Montgomery.

Through the Governor’s Task Force on Illegal Gambling , about 40 Alabama state troopers were deployed in areas near the casino in the hours before dawn Wednesday in preparation for a 4 a.m. raid approved by the governor, and supported with a search warrant from a district judge in Dothan. But local officials who support the casino rushed to the casino’s protection, and were able to obtain an order halting the raid. The order was hurriedly brought to the state police at 1:30 a.m. by Houston County Commissioner Mark Culver himself before police officers could carry out the raid and confiscate the bingo machines.

Culver condemned the governor’s task force for trying to shut down the casino’s operation and putting at risk the 1,300 jobs the facility had generated in a community besieged by the effects of an economic recession. "We are going to do everything we can to protect the jobs of the people of Houston County," Culver said. The task force asked the Alabama Supreme Court to allow the raid before the warrant expires on Sunday, but Circuit Judge P.B. McLauchlin ruled that seizing the machines would hinder the gambling revenue required to pay the bonds used for the construction of the $87 million complex. The judge declined to lift the order until the hearing on Jan. 20.

The Houston County Commission worked a way to issue up to $70 million in bonds for the construction of the casino in 2008, which are supposed to be paid off with revenue from the bingo machines. The county and casino operators argue that the bingo machines are legal. A gambling expert said that investors in Alabama casinos know that even with the state’s uncertain laws, it is not that easy to close casinos that have amenities like restaurants and hotels that create plenty of jobs in the midst of a recession. Alabama’s Attorney General, Troy King, has disagreed with the way the governor perceives the law and questions the governor’s planned raid, saying it raised “increasing concerns.”

The governor, who thinks that the machines are illegal slot machines, considers the judge’s ruling a setback to his campaign against illegal gambling in the state. The governor did not give a comment, but his press secretary said, "The obstruction of law enforcement that took place in Houston County this morning should be a wake-up call to the people of this state about the power of organized gambling and casino bosses."

January 7, 2010

Casino Operators’ Shares Trade High

Shares of gambling corporations like Las Vegas Sands Corp., Wynn Resorts Ltd., and MGM Mirage that have properties in the city of Macau have continued to climb Tuesday as investors’ optimism have not waned after seeing the latest revenue figures for Macau that showed an increase of 48 percent in December. According to Robert LaFleur of Susquehanna Financial Group in a client note, the improvement in Macau’s gaming revenue was likely to happen because 2008 had been a tough year due to Beijing’s visa restrictions plus the global economic recession towards the end of the year. Macau is the only place in China where gambling is allowed.

The steady increase in Macau’s gaming revenue beginning last summer has worked to the advantage of the US-based gambling operators as they continue to wrestle the effects of a tough economy at home. U.S. gambling revenue results have remained disappointing as domestic gamblers are keeping a tight rein on their spending, foregoing vacation trips and opting to play at local casinos, and gambling less often, owing to the recession. Macau is believed to be the casino operators’ best factor since the US market is still expected to be tough due to the poor economy and to concerns over new supplies coming online.

Shares of Wynn Resorts gained $3.73, or 5.8 percent, to $67.69. The stock has traded between $14.50 and $74.90 for the past year. Shares of MGM Mirage gained 62 cents, or 6.4 percent, to $10.35 in afternoon trading. The stock has traded in a 52-week range of $1.81 to $16.89. Macau-based Melco Crown Entertainment Ltd. also rose 55 cents, or 15.4 percent, to $4.14.

The possibility of lawmakers passing a gaming bill in Pennsylvania in the next two days also helped give a lift to the stocks Tuesday. The bill would allow table games in the state’s casinos that currently offer only slot machines. The client note by LaFleur says the expanded gambling’s tax rate would be at 14 percent, and would go down to 12 percent next year. Penn National Gaming and Las Vegas Sands would be the ones to gain by the passage of the bill. Shares of Penn National Gaming gained 24 cents to $27.99, and those of Las Vegas Sands gained $1.31, or 7.9 percent, to $17.93. "Las Vegas Sands' Bethlehem property is about an hour closer than Atlantic City to the North New Jersey/New York City area, so the addition of table games could draw additional visitation from this area," LaFleur wrote.

January 6, 2010

Kane County Board May Overturn Video Gambling Ban After Meeting With State Lawmakers

Kane County Board members may have realized that perhaps they made an impulsive decision when they recently voted to ban video gambling in their county, and are worried over the adverse consequences that may result from the ban. The state lawmakers passed the Video Gaming Act to support individual communities in these hard times brought about by the economic recession. The ban won by only one vote. At this point, board members wish to sit down with a group of local state lawmakers and have arranged a Friday meeting to ask them questions about video gambling. The Legislative Committee of the county board met Monday to confer on the plan of action for Friday’s meeting, and have agreed to discuss with state lawmakers the concerns of the county and what the county expects its lawmakers to accomplish this year. After the meeting, the county board will vote again in February to possibly reverse the ban.

Committee Chairman Hollie Lindgren who voted for a ban, said the objective of the meeting is for lawmakers to answer all questions of board members who voted to ban video gambling, to shed light on vague areas, and to put to to rest some uncertainties, as the board members get ready to convene next month to reconsider the ban. "My concerns were that everything wasn't in place," Lindgren, who also has some questions, said. "When the riverboat went in in Elgin, everything was set in place. We knew Kane County was going to get a certain percentage. I'm not hearing that with this. I'm thinking all this money might head somewhere else. That's the only reason I voted against it." After the ban, Lindgren said, she was met with a barrage of phone calls and emails from pro-video gambling folks, particularly from members of the local labor union who see some job opportunities with the introduction of video gambling. "I realized this is actually going to affect people who need to get back to work, who are trying to save their homes," Lindgren said. "If this is what's going to give these people their jobs, then we need to do it."

But some board members still oppose video gambling, like Tom Van Cleave and Drew Frasz. Van Cleave said one other choice to help balance the budget that he would support is to raise income tax. But he said the state lawmakers are scared to even mention the idea for fear of being dismissed from office. For his part, Frasz said his reason for opposing video gambling is based on moral issues, and added that the state lawmakers’ burden of funding the state’s capital bill should not be unloaded on the county board.

January 5, 2010

Lawmakers May Take Up Seminole Casino Issue in March

When the Seminole Casino Immokalee reopened in February, it was to unveil the casino’s dramatic transformation from an ordinary bingo hall to an elegant and sophisticated gambling facility. The $22 million expansion cost had made it possible for the operators to increase the gaming center to twice its size, and to raise the number of its slots from 750 to almost 1,100. More profitable and modern Class III slot machines slowly took the place of Class II slots. The casino now has luxury cars for giveaways, and aside from slots, offers popular table games like blackjack. According to a spokesman, the Seminole Casino Immokalee has hired 600 more jobs for its February reopening, and because some positions are dependent on the economy, the casino now employs 771 workers.

More expansions are being planned, tribe officials say, but those developments are subject to an agreement between the tribe and the state, the fate of which rests on the hands of legislators. The expansion plans include a center for events, a hotel, and a golf course on the tribe’s Immokalee land. The construction and other related works on these future projects are presumed to create thousands of jobs. But the $3 billion exclusive gambling deal sits frozen in the Legislature because lawmakers continue to be unconvinced of the idea.

Collier County Commissioner Jim Coletta whose area of responsibility involves Immokalee, and State Rep. Matt Hudson, R-Naples are in favor of a compact. Gov. Charlie Crist, who conferred and bargained with the tribe officials on the proposal, has also been goading lawmakers to resume discussions on the issue, but up to now, the Legislature hasn’t made any move towards that direction. Hudson thinks that the Lawmakers need time to sort things out. “Right now both the Senate president and the Speaker believe we can come up with a solution if we just have a little more time,” he said. “So time is of the essence here.” Hudson believes the issue will be taken up by the Legislature when it opens its regular session in March.

Seminole Tribe Councilman Max Osceola, speaking for the tribe, said, “It’s not just the compact, but of course the economy. We’re waiting for a lot of things. The compact is one element, the economy is another element.” Some lawmakers have indicated that expanded gambling at the racetracks would be a better idea than a compact with the Seminoles. The pari-mutuel operators are of the same opinion. They are against the compact and have been reminding lawmakers to keep their industry into account when the Legislature tackles the Seminole issue. “We employ thousands of Floridians,” said one track executive. “We pay taxes. Indirectly, when you count...all the ancillary businesses that go along with that, it really is a big industry to force out of the state of Florida.”

January 4, 2010

Kentucky Slots Bill Seems Likely To Be Stalled Again

The election of Jimmy Higdon, a Republican and a slots opponent, to a state Senate seat in a special voting, spelled doom for the bill on expanded gambling badly needed and anticipated by the $4 billion horse industry of the state of Kentucky. The Senate seat was vacated by Republican Dan Kelly, also a slots foe, who was appointed circuit judge by pro-slots Gov. Steve Beshear, an effort to put a Democrat in the Senate, thus narrowing the Republicans’ leadership. Rather, the result strengthened the Republican margin 21-17 with one independent that supports the Republicans. As a consequence, the likelihood of passing a bill that would allow slots at the states racetracks seems nil.

As the House and Senate sessions resume, the horse industry leaders are not proposing any specific plan, either. It seems the only proposal with a slim chance of being approved, Senate leaders say, is a constitutional amendment put through local referendums, such as the one previously filed by Sen. Damon Thayer, R-Georgetown. The amendment would allow expansion of gambling at the state’s seven racetracks, but would require approval by Kentucky voters in November. The proposal would give 25 percent of net slots revenue to purses, breeders’ incentives, and marketing for horse racing. Another 25 percent would go to the slots operators and 50 percent to the state for state projects and capital bond payments.

Horse breeder and former Gov. Brereton Jones, who is also chairman of the Kentucky Equine Education Project (KEEP) which supports slots, said Thayer’s amendment proposal would not provide immediate relief for the racetrack industry, which needs urgent assistance. Jones said the industry, however, is keeping its options open. “We are willing to meet with anyone at any time. We want to get something as soon as possible and we just have to explore what the possibilities are as we go step-by-step.”

House Speaker Greg Stumbo, D-Prestonsburg said he doesn’t believe Thayer’s proposal will merit a hearing in the House. Stumbo is for expanded gambling, but is against a constitutional amendment. He is also opposing the idea of the Governor aiming to legalize slots in his budget proposal by recommending earnings from slots to be used in his budget. This is the only other option to allow expanded gambling at tracks, but the proposal would, without a doubt, be highly contested even in a House widely held by Democrats. “We would not look favorably upon it because of the precedent it would set,” Stumbo stated. He said revenue estimates from the Consensus Forecasting Group should be used as the basis for any proposal otherwise, he would oppose it.

Senate President David Williams, R-Burkesville has always been against expanded gambling, but said if they had to approve any proposal, Thayer’s amendment would be it. But Sen. Ed Worley, D-Richmond said his group won’t endorse the amendment.

January 3, 2010

South Carolina Attorney General Challenges Favorable Ruling on Poker

In 2006 a group of players were charged with illegal gambling under South Carolina’s outdated gambling laws that say “any games with cards or dice” are considered unlawful. The men were playing a poker game, Texas Hold’em, with $0.10/$0.20, in a home in Mount Pleasant on April 12, 2006, when local police officers broke into the house and arrested the players on the grounds that they were playing in a “house used as a place of gambling.” Twenty of the accused pleaded guilty of the gambling charges, but five of the men decided to fight it out in court. The five defendants, with the advice and assistance of the Poker Players Alliance (PPA), argued that poker is a game of skill, not chance, and so did not have the status of illegal gambling, and therefore not covered by South Carolina law.

The case was heard in a trial court in February in which World Poker Tour (WPT) host Mike Sexton was asked to perform the poker games played on the roving tournament series to establish the skill element of poker. Dr. Robert Hannum of the University of Denver was also asked to testify, wherein he used statistical analysis to prove that the skill of a player, not luck, largely determined the outcome of a poker game. The trial court judge was convinced, but still, he strictly interpreted the vague SC law, thus, the five were found guilty.

The case was appealed and filed before Judge Markely Dennis, which resulted in the judge’s favorable ruling in October. Judge Dennis also complained about the extensive character of the state’s gambling law which could be read to imply that any game played with dice or cards is gambling, and deemed unlawful. The judge mentioned in particular the games of Bunco, Go Fish and Solitaire and said, “Simply put, the law, as written, has the potential to make criminals of virtually every man, woman, and child in the state of South Carolina.”

But Attorney General Henry McMaster has opposed the October ruling, and filed an appeal with the state’s Supreme Court, skipping the Court of Appeals. His filing is 57 pages long. McMaster thinks that poker should still be outlawed in the state, whether it is a game of skill or not. “In the General Assembly’s view, the ills resulting from games played for money do not depend upon the particular game or the nature in which it was played.” According to a newspaper report, McMaster is a Republican candidate for Governor.
The legislature is likely to discuss a bill allowing social card games in the state next year. Meanwhile, more cases are expected to be filed regarding the poker issue, although no date has been set as to when the case will be heard by the state Supreme Court.

January 2, 2010

Vegas’ CityCenter Touted as Strip’s Financial Savior

CityCenter, the latest resort complex in Las Vegas to be unveiled, situated on 67 acres, is a maze of impressive hotels and residential units, excellent dining areas, exciting spas, and incredible shopping centers. Its phased opening in December in a city whose main industry was once believed to be recession-proof but was nevertheless devastated by the economic slump, was looked upon with mixed opinions by Nevadans. Some saw it as a symbol of the Strip’s road to economic recovery, while some say it is just another indicator of its many troubles.

The newest to open is Aria, the breathtaking hotel-casino that is the centerpiece of the complex. The hotel with its 4,004 rooms designed by Cesar Pelli has a Maya Lin sculpture above the front desk and a 270-foot long water wall and dancing fountain outside called Lumia. On its opening night, lobsters were served, Dom Perignon flowed, and shots were chilled in an ice sculpture. But on the same day, the University of Nevada, Las Vegas released its economic prediction, saying that despite CityCenter’s unveiling, Southern Nevada will continue to be faced with a low tourist spending and considerable job losses for most of 2010.

Analysts are saying that if CityCenter will be a success, it will at first be to the detriment of other hotels, some of which have already closed due to low demand. Revenues at existing facilities could plunge to as low as 6.9 percent in 2010. However, Brent Pirosch, the company’s director of gaming consulting services said, "I think a lot of people are rooting for CityCenter to do well, "because the better it does at bringing in visitors, the less it takes from other properties." The $8.5 billion CityCenter might be the last tourist attraction to open in the Strip for some time. Officials at MGM Mirage, the force behind CityCenter say that the modern artwork and the glass-covered architecture would lure tourists who wouldn’t even have thought of going to Sin City.

Nevada is urgently hoping for an economic savior. The most recent data available showed that gambling revenue in October dropped to its lowest point since 2003. And since gaming and sales taxes, the state’s bread and butter, are down, Gov. Jim Gibbons has again asked state agencies to cut their budgets. "Lots of people want CityCenter to be an economic miracle," said Mary Riddel, interim director of the Center for Business and Economic Research at the University of Nevada, Las Vegas. "We've been so dependent for so long on massive openings and massive spending. We've hit a wall." "If CityCenter doesn't change anything, Las Vegas is really in trouble," said William Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno.

December 31, 2009

Patrick, DeLeo Disagree On Expanded Gambling At Racetracks

For years, racetrack owners in Massachusetts have been pressing their case for permission to set up slot machines at their establishments. And now that the state legislature will resume discussion on the issue of expanded gambling next year, the disagreement of Gov. Deval Patrick and House Speaker Robert A. DeLeo over the subject will again be brought to light. DeLeo is in the middle of formulating a bill that would allow the four racetracks in the state to install slot machines, a proposal that Patrick does not support. Although both Democratic leaders are backing the introduction of casino gambling into the state, the two are at loggerheads on the matter of slot machines being allowed at tracks.

In his letter to DeLeo and Senate President Therese Murray earlier this month, Patrick said, “Slot parlors, ‘racinos’, or any other form of convenience gambling is not something I can support.’’ And in his last interview for the year, Patrick told reporters, “I’m not trying to be a jerk here, it’s just there is harm that is associated with gambling that has to be dealt with, and that’s the reason to go about this with extreme care. And that’s why I think the setting for this and the limited number of new settings matters.’’

In contrast, DeLeo sees slot machines at racetracks as “an important part of expanded gaming.” He says that slot machines can be installed easily and without delay, and he thinks that there would be a “natural progression” from slot machines to casinos. “I’d look at the slots as a more immediate form of revenue for the Commonwealth of Massachusetts,’’ DeLeo said last week. “By the time we finish with resort casinos, it could be two, three, four, five years maybe for the whole process.’’ For her part, Murray said her inclination is for resort-style casinos, like the governor’s, but she is willing to consider other suggestions. She says she is “not hot on” slots at racetracks, a stand she has kept.

Patrick has proposed a “fresh, independent, and transparent analysis of the benefits and costs of expanded gaming’’ in his letter to DeLeo and Murray, but DeLeo turned down the suggestion, and argued, “Because gaming has been extensively studied in recent years, I’m not sure a lengthy study in place of a bill is what we need right now. “Given our current economic situation, I think our focus ought to be on bringing jobs to the Commonwealth and not on more delay.’’ The racetrack owners have threatened to close their businesses if expanded gambling at their facilities is not approved. “If you put casinos and don’t authorize slots at racetracks, these tracks, including mine, are gone,’’ said one owner.

According to the American Gaming Association, the 12 states that had slots installed at racetracks in 2008 were able to give state and local governments $2.6 billion in tax revenue.

December 30, 2009

Kentucky Leaders Debate Over Financial Mess

Attention has been drawn yet again to expanded gaming as Kentucky’s political leaders argue over the state’s budget dilemma and how to find solutions to the problem. Gov. Steve Beshear and Senate Pres. David Williams (R-Burkesville) do not see eye to eye when it comes to the issue of the state’s financial expectations and the ways to ease the budget gap.

Gov. Steve Beshear declared that the state is in a far worse financial situation than it seems. He further revealed that the budget deficit will reach more than $1.5 billion in two year’s time. "The bottom line is we face a challenge much greater than many have anticipated," said Beshear. He says putting slots at racetracks is still one option to help alleviate the budget shortfall.

But Senate Pres. Williams says he believes the lawmakers will not decide positively on the plan. He accused Beshear of using the extreme budget figures to try to frighten lawmakers to force them to cooperate and pass a legislation allowing expanded gambling at Kentucky’s racetracks. The bill on slots died during last summer’s special legislative session. "He's wasted two years of his administration trying for force through gambling, slot machines. He's been a one issue governor up to this juncture," said Williams.

But the governor, who will submit his budget to lawmakers in January, said retirement contribution and increases in health insurance cost for retirees, teachers and state workers could enlarge the deficit some more. "If folks really want to help the horse industry and to give us money to help solve this budget problem, then they ought to vote for the VLT legislation," said Beshear.

State Senator Tim Shaughnessy (D-Louiaville) says the money generated from expanded gambling would help the budget problem, but it would not be enough. "I really see that as a strategic initiative specifically as an investment strategy for the racing industry," said Shaughnessy. He suggests that the state should also look for other ways in trying to settle the racing matter. "We need to do two things. One, we need a tax structure that works in this century and we don't have that. The other thing we need to be more efficient within state government. We need to be better stewards of the resources that we have," Shaughnessy said.

December 29, 2009

Northwest Suburban Towns Not Keen On Video Gambling

The video gaming law that was signed in July has not been met with enthusiasm by the residents of the suburban towns in the Northwest, where most of the towns have not taken an official stand on the issue. Although some towns like Buffalo Grove, Hanover Park, Rosemont and Mount Prospect have imposed local bans on video gambling, most areas like Des Plaines, Wheeling, Streamwood, Schaumburg, Hoffman Estates and Elk Grove Village still have not tackled the matter.

Earnings from the new measure are allotted to subsidize one third of the $31 billion public works projects of the state of Illinois. The law, which grants municipalities the right to opt out does not make it obligatory for communities that want video gambling to approve it, but those that decide to ban it have to take the necessary action.
The lack of rules and guidelines in implementing the gambling act has been cited as the main reason why many town leaders have dilly dallied in confronting the issue. "We have some business people who definitely want it and said it would really help in these tough economic times," said Hoffman Estates Mayor Bill McLeod. "But the state regulations might be a year away. I don't see the point in dealing with it before then."

Hoffman Estates is likely to allow video gambling, as well as Des Plaines, where a new casino is slated to open in2012. Des Plaines Mayor Marty Moylan said he is personally inclined to video gaming, but as far as his town’s residents are concerned, he has not gathered anything from them. "There just isn't a groundswell of residents speaking out one way or the other," Moylan said. "I think the money will open the door for construction projects which will lead to jobs in our community. Des Plaines has a high unemployment rate right now and we need those jobs."

Schaumburg Mayor Al Larson said his town and its neighbors have not yet taken a position on video gambling, each town waiting for the other to make the first move. Larson added that his town board may take up the issue of video gambling next month, but his constituents have not shown any interest or made any demand. Only a few business establishments acted in response to a poll conducted by the village on 90 businesses last August.

A business establishment with the legal number of five machines could earn profits of $38,000 to $74,000 a year, after deducting taxes and sharing profits with the authorized distributor. The city or village gets an estimated $6,300 to $12,300 from each establishment, or 5 percent of a gambler’s losses. The state gets 25 percent and the establishment shares the remaining equally with the distributor. In total, gamblers’ losses are estimated anywhere from $127,750 to $246,375 in each establishment each year.

December 28, 2009

Alabama Casinos Now Offer Luxury Hotels and Celebrity Entertainment

Casinos in Alabama have added grand and well-appointed hotels, fashionable restaurants and celebrity entertainment to their business centers. This will give tourists traversing the state towards the row of casinos in Mississippi’s Gulf Coast a reason to stop at Alabama’s casinos’ chic restaurants and a place to stay in their luxurious hotels. "We are not a pass-through corridor anymore," developer Ronnie Gilley said. Alabama’s newest enticements promise to draw customers because they are situated along the main high way and they could be tough competitors to the Gulf Coast casinos in Mississippi.

The Victoryland complex in Shorter, about 20 miles east of Montgomery on Interstate 85, opened the 300-room deluxe Oasis hotel last Dec. 9 and owner Milton McGregor said a 1,500-seat entertainment center and convention complex will open in the new year. McGregor said he added the hotel so customers of Victoryland who usually play for several hours can have a place to stay. "In order to be where we needed to be and wanted to be, we had to become a destination point," McGregor said. Thus far, it has been successful, with customers coming from out of state comprising 40 percent of its weekend patrons.

He plans to add two more hotels to the complex. Victoryland casino opened in 2005 and it has grown since then, presently accommodating 6,400 electronic bingo machines. The new hotel and the other additions have cost McGregor $100 million in investment. In the southeastern part of the state, Country Crossing’s first phase costing $87 million opened on Dec 1, and more attractions are to open in the new year, increasing the total investment to more than $200 million. The developer is planning to open two hotels, a water park, a family entertainment center and a bowling alley along the beach on U.S. 231 next year. "We expect in the next five years we will become a destination and the beach will become a day trip," he said.

In January, the Poarch Band of Creek Indians opened the Wind Creek complex at Atmore, costing $245 million. The casino has electronic bingo machines and the 17-story plush hotel has 236 rooms, four restaurants, an amphitheater and a cooking studio. The complex is located on Interstate 65, a major road used by tourists in going to Mississippi’s beaches and seaside casinos. The casinos in Alabama have no slot machines and table games. What they have are electronic bingo machines which are a lot like slot machines, in look and in feel.

December 27, 2009

No Gambling Ban Yet For Sweepstakes Machines

Sweepstakes parlors in North Carolina have continued to operate, turning up in places where video poker machines once stood, despite a ruling by the Court of Appeals that upheld the state’s ban on video poker machines throughout the state, except in a casino in the Cherokee Indian reservation. There has been no ban imposed on the sweepstakes machines, and as of this time, the games are legal and cash winnings are being paid to players by the business operators that are offering the video sweepstakes. A superior Court judge in High Point has prevented law enforcers from probing into the machines to establish if these devices are unlawful and if they have violated the state’s ban on video poker machines.

Operators of the sweepstakes machines say the activity is not gambling because the customers buy a prepaid phone card or Internet time, from which they get a chance to win cash. And instead of scratching off the ticket, the players sit in front of a computer displaying cards in a poker game or a likeness of a slot machine. "This is your modern-day bingo," said Chase Brooks, who owns a Raleigh sweepstakes room. "Why not allow your citizens to choose what they want? ... If it's not a drug, let them choose how they want to entertain themselves."

But House and Senate leaders say they will closely monitor the sweepstakes parlors and will track the development of any complaints or charges against them. "They are circumventing the law," said state Senate leader Marc Basnight, D-Dare. "As we decide how much North Carolina can stomach, you find yourself more leaning toward the elimination ... of these sorts of games." "I think the intent of the legislature was very clear when we passed the last two bills regarding video poker," State Rep. Melanie Wade Goodwin, D-Richmond said, "and I feel sure that we would not have any significant resistance to passing further legislation."

Sheriff Rick Davis of Henderson County who thoroughly backs the ban on video poker said, "My message to everyone in Henderson County is that we will continue to enforce the law across the board. Anyone found in possession of these illegal devices will be subject to arrest and wholehearted prosecution by this office." However, a consultant for the North Carolina trade association, Brad Cone, said that the burgeoning of sweepstakes parlors while a ban on video poker exists is proof that video poker should be legalized, regulated and taxed by the legislators.

December 26, 2009

Palos Park Village Council to Vote on Video Gambling Issue in January

The number of communities opting out of video gambling in Illinois is steadily increasing. Unincorporated Cook County has banned the video poker machines, so have Palos Heights and Orland Park. In Palos Park, the Village Council has decided to set the issue of video gambling on the agenda for their first meeting in January. The vote on whether to ban video gambling in the village has been deferred by the council for two months. The Village Council advised residents and anti-gambling campaigners in early October that the matter will be taken up on the first meeting in November, but there was no discussion that happened. It was at the council’s Dec. 14 meeting when resident Marjory Gilbert pushed for the video gambling’s ban that the council members said they would vote on the issue at its first meeting on Jan 11.

In trying to find a way out of the budget shortfall, the Village Council has adopted several measures in the past two months to improve the revenue, like conducting a referendum in February asking to raise the rate on property tax. “There are other ways to make money; we just have to find it. That’s what we’re trying to do,” said village Commissioner James Pavlatos. Commissioners Mary O’Connor and Pavlatos are strongly against video gambling, and they are definitely voting for a ban in the January meeting.“It’s not a good scenario for us. We’re a bedroom community and should stay that way,” Pavlatos said.

Pavlatos wants the village to declare an official ban to avoid an authoritative order that is likely to be applied by the state stopping municipalities from banning the machines. In passing the measure legalizing video gambling machines in restaurants with liquor licenses, the law also granted communities the right to impose local bans.

Mayor John Mahoney said the highest projected revenue from the video machines would be $30,000 annually. He said the council has been talking about making severe cuts in the budget because of insufficient funds. He said he has not yet decided on what his vote might be because he wants to first know the state’s plan of action and how it will affect the village. “I believe if it would have a negative impact of any kind on the character of the village, I wouldn’t be supporting video gaming,”  Mahoney said.

Anti-gambling activist and Palos Heights resident Beth Paschall is urging pastors of churches in Palos Park to sign a petition banning the machines, a campaign which she also made in Palos Heights and Orland Park before those towns prohibited the machines. Gambling critics have cited several reasons in opposing video gambling, such as, the gaming’s unreliability of providing stable revenue to fund state projects, its negative impact on lower income families and the possible significant costs to the village, among others.

December 25, 2009

Lawmakers’ Conflict on Pa. Casino Bill Believed to be Settled

House Democratic leaders and Senate leaders have been in disagreement over a period of time about a measure to expand casino gambling in Pennsylvania, thus delaying the passage of a bill which would assure additional revenue badly needed by the state. Gov. Ed Rendell has notified the Legislature that if the bill is not passed by Jan. 8, he will have to lay off more state government employees starting Jan. 11.

Last October, Rendell and the legislative leaders reached an agreement on a state budget that would be supplemented by an additional $250 million from new revenue resulting from a bill that would allow table games in Pennsylvania casinos that offer only slots machines and utilizing existing revenues from slot machines. The bill plays a key role in resolving a multi-billion deficit in the state coffers due to the economic downturn. The Legislature must pass the bill in order for it to become a law, but the measure got stuck in the conflict over the last available casino license.

Both chambers are currently on recess, and will resume on Jan. 5, but it appears that the legislative leaders are trying to settle the conflict before then. The leaders spoke by telephone Tuesday and Wednesday, and according to two people who were privy to the telephone conversations, the leaders settled on a provision of the bill that would allow new contenders for the last casino license that is still left, a decision which could possibly lead to another license in 2017. "I think the attempt on our side was to get the process moving," said House Gaming Oversight Committee Chairman Dante Santoni, D-Berks. "We have to get this bill passed by the time we get back into session so employees don't get laid off.”

A license for a resort casino would give the owner permit to operate up to 500 slot machines, 5,000 for larger casinos. Presently, there are two applicants for the license, namely the operators of Reading Crowne Plaza Hotel in Wyomissing and the owners of Fernwood Hotel & Resort in the Pocono Mountains. The bill, if passed, would not only add table games, but would also allow an additional 100 slot machines for the resort casino and would ease restrictions on potential players. Consequently, other casino operators have conveyed their desire to apply for the remaining license, including the owner of Nemacolin Woodlands Resort in southwestern Pennsylvania.

December 24, 2009

Appeals Court Decides in Favor of North Carolina Video Poker Ban

A video poker company, McCracken and Amick of Fayetteville has brought charges in court against the state of North Carolina accusing the state of being unjust in banning the video poker machines all over the state in 2006, but allowing them at Harrah’s Casino on the Cherokee Indian Reservation. When Superior Court Judge Howard Manning took the side of the amusement company and rendered the ban null and void in his Feb. 19 ruling, the video poker company took the case to the court of appeals, which then upheld the ban in favor of the state.

The leader of the Eastern Band of Cherokee Indians, Principal Chief Michell Hicks said he was happy with the court’s ruling. “We thought it was always the right decision,” Hicks said. “I am hoping this will give us the opportunity to look at other things.” The Attorney General’s Office, in arguing for the state, said that the Federal Indian Gaming Act of 1988 granted states the right to allow gambling on tribal lands. McCracken and Amick, through their attorneys, argued that the law “does not give the state carte blanche to legalize an activity within the walls of the Cherokee Casino while making that same activity a criminal offense everywhere else.”

A group backing the gambling industry, the Entertainment Group of North Carolina, said the decision of the appeals court, though not completely unexpected by them, was a disappointment. The group cited the new tax revenue of $500 million that could be generated by allowing the video gambling machines statewide, saying that the group will urge lawmakers to legalize video gaming. “Let's face it, video gaming is here in North Carolina,” the group said. “People are playing every day in internet cafes across the state.

Lawmakers, however, have welcomed the court’s decision. Senate President Marc Basnight said, “This is great news. We worked for so long to try to rid our state of this awful industry. I am very pleased that the Court of Appeals decision will uphold the ban passed by the General Assembly.” Despite the ban, new video sweepstakes machines are turning up in places which were once used for poker machines, like in standalone parlors and in gas station corners. But a judge has ruled in a different case that the machines are not considered gambling because winning is determined in advance.

McCracken and Amick representatives could not be contacted for comment, and the industry group has not issued a reply on whether the case would be appealed to the state Supreme Court.

December 23, 2009

Macau Told To Rely Less on Gambling

Chinese President Hu Jintao spoke in a formal event commemorating the 10th anniversary of Macau’s handover to China after 442 years as a Portuguese colony and in his message he declared that the gambling Mecca will soon undergo a reform process in order that the economy of the city does not have to rely heavily on gambling. The Chinese president wants Macau to expand its economy, thereby having other money-making sources of revenue aside from gambling. He asked the city officials to improve the educational system and raise the standards of living and to “utilize fully the series of measures that the central government has already adopted to support Macau.”

The city’s casinos have been notoriously known to have allegedly offered protection to illegal earnings made by corrupt officials. And three years ago, the US government charged a bank in Macau of money laundering for the benefit of the leaders of North Korea involved in the production of nuclear arms. These issues have become a source of humiliation to Chinese officials who believe that it is but fitting to keep the gambling industry under a tight rein. The Chinese president said that the city has a role in “strengthening and improving the management of the gambling sector.”

Elections were held in July to elect a new leader for the city and the Chinese president officiated at the formal turnover of authority. The former leader of Macau, Edmund Ho ruled the city for ten years since its turnover to China, and he was significantly responsible for the city’s progress into the world’s biggest gambling center. The new leader, Fernando Chui who is fully supported by Beijing has replaced Ho and won in a massive victory getting 282 of the 296 votes cast by the city’s election committee of 300 members. Macau and Hong Kong are the only places in China where free elections are held.

In 2002 when Macau decided to open its doors to foreign competition, international gambling companies like Las Vegas-based Wynn Resorts Ltd. and Las Vegas Sands Corp. have entered the city’s gambling scene and invested billions of dollars in Macau.

The past years have seen a phenomenal growth in Macau’s casino revenues, even surpassing those of Las Vegas in the last three years.

December 22, 2009

New Gambling Revenue Fails To Meet Desired Target

When Amendment 50 was approved in November 2008 in the towns of Black Hawk, Central City and Cripple Creek, the purpose was to use a large portion of the additional tax revenue to augment the thinning budgets of Colorado’s community colleges. Amendment 50 called for the addition of new table games, the extension of the casinos’ operating hours and the increase in the betting limits. Most of the new tax revenue, projected at $29 million in the first year and $222 million in the next five years would go specifically to the classroom instruction and financial aid of the schools. "Anything that's going to add over $200 million over the next five years . . . is very good for us," Nancy McCallin, president of the Colorado Community College System, said in November 2008 shortly after learning that Amendment 50 had been approved by voters.

Five months after Amendment 50 was officially in force in July though, the outcome of the gambling reforms from Amendment 50 has not lived up to the expectations of many, and the projected boost from the additional revenue was not fully realized. Perhaps owing to the economic recession that compelled gamblers to scrimp on gambling trips and wagers, McCallin says the community colleges may get just $2 million to $3 million from gambling taxes in the first year. Officials of the gaming industry had forecasted casino revenue to increase 20 to 25 percent, but actual growth this fiscal year beginning July is only 8.5 percent.

This year, the community colleges’ state funding was decreased from $142 million to $106 million, but the federal government took care of the difference, with a one-time funding, but this year there is no guarantee from the federal government that it will pay for the $11 million reduction. According to last week’s report from the Colorado Division of Gaming, Black Hawk casinos revenue increased 13 percent in November, but Central City and Cripple Creek casinos each saw a 5 percent drop. Almost twenty years ago when gambling was legalized in Black Hawk, Central City and Cripple Creek, the tax revenue from gambling was envisioned to finance the preservation and rebuilding of the historical mining towns.

In the current setup with the Amendment 50, the state historical fund and the general fund, would get $97.7 million this fiscal year, before regulatory expense deductions, with a 3 percent increase from last fiscal year. Any amount over $97.7 million will be for the beneficiaries of Amendment 50, 78 percent for the community colleges and the remaining 22 percent for the counties where the casinos are located.

For fiscal year 2010, based on five months of data, from the estimated $106 million gambling tax revenue, Amendment 50 recipients would get $5.7 million after deductions. The 2008 ballot measure may seem an unreliable solution to the challenges facing the community colleges, but McCallin is optimistic that an increase in revenue is forthcoming as the economy starts to recover.

December 21, 2009

No Entertainment, Just Gambling In Macau

For years, Macau has always been associated with gambling, and the sole purpose of visitors entering Macau has always been to gamble. It was unheard of for gamblers to go to Macau to watch an entertainment show. Gambling in Macau has been monopolized by Stanley Ho’s casinos for four decades since 1962 until 2002 when the Macau government decided to open the gaming industry to foreign competition. A succession of gaming companies from Las Vegas rushed into Macau, eager to make the most of the huge potential of its market of gamblers from mainland China and Hong Kong.

Indeed, money flowed into the former Portuguese colony, as giant gambling companies put up grand and impressive casino hotels, overpowering in size the city’s old casinos. Now, Macau’s gambling revenues have surpassed Las Vegas’, but it has retained its reputation as a sleazy gambling den of Asia, contrary to the idea of turning it into a center for gambling as well as for family entertainment in the fashion of Las Vegas. It may be known as the Sin City of America, but Las Vegas offers top acts and a variety of wholesome, family-rated entertainment. On the other hand, Macau’s scant entertainments consist of a few striptease floor shows and a nasty and vulgar theme park.

Ticket sales of the recent Cirque de Soleil show ZAIA at the Sands Venetian Hotel were “disappointing”, while the show was a hit in Las Vegas. "It is the early stages of the whole entertainment offering in Macau. It's going to take some time for tourists and locals to accept it," said Davis Fong, director of the University of Macau's Institute for the Study of Commercial Gaming. It has also been noted that the huge number of visitors coming in to Macau stay only for about a day and a half, much shorter than the usual three of four-night stay in Las Vegas. Therefore, most people just spend their time gambling, having no extra time for other activities like entertainment shows and shopping. Hence, the boutiques, too, are not as much visited. Experts say they are giving non-gambling businesses in Macau around five to ten years to reach an “acceptable level.”

Meanwhile, the city government has expressed concern about the leasing prices for the residents that have skyrocketed, and young people leaving school to work in casinos, among other social implications of a gambling environment. Beijing, too, restricted the entry of mainland Chinese to Macau last year, worried over the large sums of money their people were squandering on gambling, although at present, visa restrictions have been eased. Experts say the effort to transform Macau into a family entertainment destination is not a profit issue, but to make Beijing and the Macau government less upset and hostile to the gaming economy.

December 20, 2009

Shelving of Pa. Casino Bill Could Lead To Job Losses

Gov. Ed Rendell said if the Legislature does not pass a bill on expanded gambling in Pennsylvania by Jan. 8, he will have to lay off at least 1,000 more state government employees. The bill would legalize the addition of table games in Pennsylvania casinos that offer only slot machines. It is a major factor of October’s state budget agreement and is aimed to raise $200 million by allowing expanded gambling and redirecting $50 million gambling tax revenue from slot machines. "It's my hope that this is a circumstance that we won't ever have to reach, but the Legislature is on notice," Rendell said. "If it's the will of the Legislature not to pass table games then we're $250 million short and I have to act accordingly. I can't raise taxes. My only option is to make severe cuts."

David Fillman, head of the largest labor union of state employees said the union members are prepared to take necessary steps to persuade lawmakers to approve the bill in order to prevent the layoffs, although he said he has not been informed of any official plan or statement from the governor’s office. "This is just another nightmare, part two, of the budget that should have been finished July 1st. We're disappointed that this announcement came out especially at the holiday time," said Fillman, executive director of Council 13 of the American Federation of State, County and Municipal Employees. The economic recession, with tax collections failing to hit targets reaching billions of dollars, has compelled the Rendell administration to dismiss more than 700 workers this year, equal to around 1 percent of the state workforce. The state’s funds have remained sparse this year as tax collections continued to lag.

On the other hand, officials of Penn State, Pitt and Temple universities have seen an end to their anxiety and tension after a period of suspending construction projects, cutting spending and drawing on reserves, when Gov. Rendell finally approved Thursday more than $700 million in subsidies for universities after a delay of more than six months. The funding for education was a conditional requirement of the federal government for the state to avail of the stimulus amounting to nearly $2 billion. The governor also approved the subsidy for the veterinary laboratory of the University of Pennsylvania, but with a cutback of 13 percent.

The House and the Senate could not seem to agree on many issues, such as how to apportion the revenue from the proposed 2 percent tax on table games that is assigned for communities near the casinos, and whether to increase the number of casino licenses and keep the existing applicants for the last remaining casino license, or to keep the same number of licenses but accept new applicants for the last available license.

The Senate and House sessions came to a close Wednesday and Thursday, respectively, and will resume on Jan 5.

December 19, 2009

Campton Hill Imposes Local Ban on Video Gambling

The list of communities that have banned legalized video gambling has grown longer with the addition of the village of Campton Hills in western Kane County. The village of Elburn and the city of Batavia and the counties of Cook, DuPage, McHenry and Lake, in addition to about 50 other communities, have already imposed their own ban.

Campton Hills became the most recent community to opt out of a piece of legislation passed by the state of Illinois allowing up to five video gambling machines in bars and taverns and other establishments that have liquor-serving licenses. The law known as the Illinois Gaming Act of 2009 also gave communities the right to impose local bans. Gov. Pat Quinn signed the Act into law with the objective of raising funds to help support the state’s capital projects, a quarter of the budget supposedly to come from revenue generated from the video machines.

Campton Hills trustees cast the 5-1 vote a day after the Legislative Committee members of the Kane County Board said they could vote again at a later date, probably next year, after they decided to ban video gambling in the county a few weeks ago. The chairman of the Kane County task force that recommended the approval of the machines, County Board member Jesse Vasquez, D-Montgomery said the county’s vote to ban the machines and the suggestion of the Legislative Committee members to vote again on the ban next year were unexpected by him. The liquor-licensed establishments inside the unincorporated areas of Kane County are affected by the county ban.

As for Campton Hill, the trustees who voted for the ban said they were concerned that the village might not be allowed to vote for a ban once regulations are set in place by state agencies. Susan George, village trustee who voted for the ban, said it was not a good idea to use losses from gambling to increase revenue, and that the plan was “weak.” "I think it's a shot in the dark. ... It's not really thought through," she said.

Trustee John Strauss was the only one who voted against the ban, saying the village had very few businesses with liquor licenses, and he thinks video gambling would not trigger any harm. "I don't see the danger, quite frankly," Strauss said.

December 18, 2009

Advocate General’s Opinion May Mean Initial Defeat for Ladbrokes and Betfair

The Opinion of the Advocate General of the highest court of Europe, the European Court of Justice, which was published today was not very encouraging for the gambling operators who wanted to get into the gambling market of the European Union’s member nations. Advocate General Bot’s Opinion was in relation to the two separate cases turned over to the ECJ by two Dutch national courts in which two gambling operators, Ladbrokes and Betfair asked whether the licensing system of the Dutch Government is consistent to the laws of the European Union whereby businesses based in the Union have the right to offer their services in other Member States.

In his Opinion, the Advocate General questions the monopoly of De Lotto as the only legal provider of the national lottery and online gaming in the Netherlands without having undergone a competitive bidding process against other EU-licensed gambling operators. The Advocate General said that any Member State should first conduct a free and honest tender process before an exclusive gambling license is issued to an operator. If the ECJ has a similar thinking, the Dutch Government may require a competitive tender process to be conducted, and may even allow gambling operators outside of the Netherlands to join the bidding procedure.

Sigrid Ligné, Secretary General of lobby group the European Gaming and Betting Association (EGBA), said: “This is a key question for the Court given that the exclusive license has repeatedly been handed out to De Lotto without any form of tender.” But, the negative part of the opinion, particularly to Ladbrokes and Betfair, is that the Advocate General also said that EU Member States can rightfully practice monopoly if they can give a good reason for their decision, such as, to lessen gambling addiction and to avoid fraud. Moreover, the AG concluded that the Member States have the right to prohibit any gambling operator from penetrating their gambling markets even if those operators are allowed in other Member States.

Ladbrokes’ John O'Reilly said: " We continue to believe that the ECJ should uphold principles of free and fair competition across borders as there is no logic in the fact that the Dutch monopoly could freely compete against us in the UK but we are prevented from accepting bets from any Dutch resident that finds us on the Internet.” April Carr, an associate at law firm Olswang said: "This will be disappointing for those online operators who thought they could rely on EU law to liberalize the gaming markets. If the opinion is followed by the European Courts then there is reduced scope for them opening markets."

Chris Bryant, a partner at the law firm Berwin Leighton Paisner, said: “This is round one to the monopolies.” Although the opinion of the Advocate General does not have any legal consequence, it usually provides a glimpse of the final and binding verdict of the ECJ. Usually, the ECJ agrees with the AG, but whatever the outcome is will be known next year when the high court hands down its decision.

December 17, 2009

Ownership of Resorts in Atlantic City Transferred To Lenders

Resorts Casino Hotel, which started operation on May 26, 1978, has been turned over to its new owners. On August 14 this year, the casino filed a petition with the New Jersey Casino Control Commission to pass on ownership to its lenders, one of which is Well Fargo Bank N.A., after it failed to make a payment since October 2008 on its $360 million mortgage. Last month, the current owners and the lenders arrived at a deal, having the approval of the commission, in which the lenders agreed to call off the debt of almost $381 million in exchange for equity ownership.

Alan Marcus, spokesman for Resorts’ co-owner Nick Ribis said of the deal, "It's safe to say that a transaction like this has never taken place, in which you have the lenders becoming equity holders with a management team in place to continue to run the casino. For the employees and customers, it's basically a seamless transaction. They are not going to see any difference." Resorts’ equity interest was given up to Ribis by its former owner, Colony Capital L.L.C., of Los Angeles. The property’s title was entrusted to RAC Atlantic City Holdings L.L.C., a new unit owned entirely by Wells Fargo Bank N.A.

The casino which will be managed by Ribis, has less than 2,200 employees that are under a renewable contract of six months. Resorts is the first casino in Atlantic City to be taken over by a lender, although in Las Vegas it has become the customary process when smaller casinos are devoured by competition, as is the case with Resorts in Atlantic City, and bigger projects are unable to finish construction due to funding difficulties. Last month, Resorts’ revenue was down from $17.8 million to $14 million or a drop of 21.4 percent from last year. It was the third-largest decline among the 11 casinos in the city, after Caesars which had a 23.1 percent drop and Trump Plaza which saw a 25.8 percent decline.

Total revenue for the 11 casinos dropped 13.4 percent for November this year, compared with same month last year, and for January to November this year, the casinos earned $3.7 billion, or a decline of 13.5 percent from same period last year.

December 16, 2009

Atlantic City’s Casinos Threatened by Pennsylvania’s Parx Casino

Philadelphia Park Casino & Racetrack, popularly known among its patrons as Philly Park will soon be replaced by a new $250 million facility called Parx Casino, which will have its formal opening on Friday. Its fashionable name speaks of the casino’s modern touches and stylish features. Some of the crystal chandeliers were hand-blown in Italy, and one even costs $1 million. The teakwood marble floors were brought in from Pakistan. Special modern lighting will illuminate the front face of the building at night.

A sophisticated gambling area, called Xclusive, is resplendent with glitz and glamour. Parx also has restaurants, bars and a nightclub, offering customers other forms of entertainment aside from gambling. In the midst of all the extravagance, the facility also has a food court located on the outer edges of the casino, to cater to local customers who are on a tight budget, the food being priced not higher than $7.99. The facility, owned by Greenwood Gaming and Entertainment Inc., is situated on a 260,000-square foot lot, and the building is designed to provide space for future expansion, such as a hotel.

The Parx and the other casinos as well are giving the Atlantic City casinos a run for their money, particularly at this time when a bill allowing table games at the state’s slots parlors is at its final stages of being approved by Pennsylvania lawmakers. “It just gets worse for Atlantic City. I truly believe Atlantic City is permanently disfigured,” said Justin T. Sebastiano, gaming analyst for Morgan Joseph & Co. Inc. “I certainly think table games will hurt Atlantic City.”

Before now, the old Philly Park, being Pennsylvania’s highest-earning casino, has been a tough competitor for the Atlantic City casinos. It is located 20 miles north of Philadelphia proper, and in light traffic, it is just an hour’s drive away from Atlantic City. Parx will be offering more than 3,100 slot machines, and the best area in the middle of the casino floor has been assigned for table games. This, plus the new casino’s excellent amenities will certainly keep gamblers in Pennsylvania and away from Atlantic City.

“Everyone is going to want to see what the little Philly Park casino has been transformed into,” spokeswoman Carrie Nork Minelli said during quick look around the new facility. “Now we have Las Vegas-style or Atlantic City amenities, we really have captured it all, so I don’t see why we wouldn’t attract the Atlantic City crowds.”

December 15, 2009

Casino Group Offers California A Portion Of New Revenue If Poker Websites Are Legalized

A group, which includes the Morongo Band of Mission Indians and the Commerce Casino, is asking the state of California to legalize Internet poker sites and offered the state a share in the new revenue if their request is approved. The group is planning to submit the proposal to the state Legislature next month. Federal and state laws say it is unlawful to operate Web-based games in the U.S., but do not say in clear and definite terms that U.S. citizens are prohibited from playing Internet poker, although financial institutions are not allowed to transact money for payment or collection of online bets.

There are more than 1,000 existing Internet poker sites used by millions of U.S. residents, but since these sites are based abroad in order to avoid the law, the government is powerless to tax them.

"About 1 million Californians are playing poker offshore right now," said Patrick Dorinson, a spokesman for the Morongo band. He said the group wants the state to regulate such games so that players can be guaranteed their privacy, and can be assured of the legitimacy of the sites and the state can benefit from the revenue generated from the taxes.

At present, the state of California gets $361 million as its annual share of slot revenue from the Indian tribes that have been given exclusive right by the state to operate slot machines. Considering this, the California Legislature would have to be prudent in their legislative decision, as a breakdown in friendly relations with the Indian tribes could cost the state its share of slot revenue. State Sen. Roderick Wright (D-Inglewood), who is chairman of the committee which reviews gambling legislation says that Internet games would have to be legalized without authorizing the expansion of electronic gambling in casinos that would compete with the Indian tribes’ slots. And the bill would have the backing of the tribes. The Morongo tribe paid for Wright’s $50,000 television ads in support for his election bid last year.

Wright said that if Internet games would be regulated, he expects a great number of license applicants, including from many of the Indian casinos and from the non-Indian card clubs as well, and even from charitable groups. "There are 300 to 400 entities who could apply and say we want a piece of the action," Wright said.

Some say that legalizing Internet poker would decrease the state’s income from the casino revenue as gamblers are likely to shift their interest from the casinos to the online games. But other lawmakers see big money at stake for the state, although they have no estimate as yet. I. Nelson Rose, a gambling law expert said that if the state will get the same 25% share from online poker that it gets from the Indian tribes’ slots, the state could be seeing an additional $250 million for its treasury, a substantial relief for its budget shortfall.

December 14, 2009

$47 Million Spent By Issue 3 Supporters For Campaign
According to the secretary of state’s office in Ohio, reports on campaign contributions showed that the entire campaign for issue 3 had cost its supporters more than $47 million. The money was provided by Penn National Gaming Inc. which is based in Pennsylvania and Dan Gilbert, majority owner of the NBA’s Cleveland Cavaliers and founder of Quicken Loans which is based in Michigan. Both donors are from out of state.

As per the report, the two backers divided the total amount of $47.2 million, and Lakes Entertainment Inc. of Minnesota also put in a $1.9 million support. The total cost of $47.2 million was the biggest amount used on a campaign for a ballot issue in the history of Ohio or in any state for that matter, since 1998 when Indian gambling supporters raised $63 million to campaign for a measure that would allow casinos on Indian reservations in California. The amount also surpassed the $25.7 million that a gambling company spent to promote another casino measure that was rejected by Ohio voters last year.

Issue 3 was a ballot measure presented to Ohio voters last Nov. 3 that would authorize casinos in the cities of Cleveland, Cincinnati, Columbus and Toledo which was passed with a vote of about 53 percent, after a series of four gambling measures failed since 1990. The spokesman for the pro-casino Ohio Jobs and Growth Plan, Bob Tenenbaum said the record sum shared by Penn National and Dan Gilbert certainly provided the money needed for a strong campaign to get the vote out. "The feeling was, that was the amount needed to be sure that the issue would pass, and that's what happened," Tenenbaum said.

TruthPac, the anti-gambling group that headed the campaign against Issue 3, raised $9.1 million from MTR Gaming Group, a gambling operator based in West Virginia, and its chairman, Cleveland developer Jeffrey Jacobs, and Northfield Park. Families Against Issue 3 put up $2.4 million, all coming from MTR, Jacobs and Northfield excluding $4,900. Democrats Against Issue 3 declared contributions amounting to $370,000 in sum, $270,000 of that coming from Jacobs and his controlling company and $100,000 coming from Nationwide Mutual Insurance Co. Beulah Park racetrack and the Wheeling Island racetrack and casino in West Virginia also gave $307,000 to the group Citizens Against the Wrong Plan. Vote No Casinos raised $38,675, but not from contributions from gambling operators.

December 13, 2009

Icahn And Beal Bank To Jointly Reorganize Trump Casinos In Atlantic City

Trump Entertainment Resorts Inc., severely affected by the economic downturn, has sought bankruptcy protection for its three casinos in Atlantic City since February, confident that it would soon come out of bankruptcy after some reorganization. The company has been burdened with debt and the situation was aggravated by the decline in the economy and the increasing competition from neighboring states.

Since the time the company entered in bankruptcy, Donald Trump has made efforts to acquire the company and emerge it from its problems. Initially, he teamed up with Beal Bank to restructure the company, but last month he changed his mind and, together with his daughter, chose to support a bid by a group of bondholders to take control of the company’s three casinos, namely, Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino, and Trump Marina Hotel Casino. But Beal Bank has persisted with its plan to acquire the company, and lately Carl Icahn, billionaire investor and widely-known buyout expert has come into the picture by joining Beal Bank’s offer to take over the company.

Icahn announced Friday that he has purchased, through his affiliate entities, a majority of Beal Bank’s first-mortgage liens on the three casinos and he is backing the acquisition and restructuring proposal of Beal Bank. The bondholders have been critical of Mr. Beal’s restructuring plan, saying he has no knowledge in operating casinos and it is not typical for a bank to own a casino. Now, Mr. Icahn is saying his partnership with Mr. Beal has weakened that contention. “This completely takes away that criticism,” he said. For his part, Mr. Beal said he has joined forces with Mr. Icahn “to capitalize on his extensive experience both in the gaming industry and in turning around troubled companies.”

Icahn has fixed problematic gaming companies in the past and is currently completing restructuring at the Fontainebleau Las Vegas and Tropicana Entertainment. Icahn said his reorganization plan will ensure that the Trump company will be debt-free, and that it will be able to withstand and survive economic difficulties. "Despite the current problems in Atlantic City I continue to have great faith in the city's future," said Icahn, in a statement, "I will create the best outcome for all stakeholders, including customers, employees, and Atlantic City itself."

The two opposing factions are trying to discuss and compromise on a settlement, but if that effort fails, they will ask a U.S. bankruptcy court early next year to decide between their competing restructuring proposals.

December 12, 2009

Catholic Schools Stop Fundraising Through Gambling

The Catholiac Archdiocese of Edmonton is asking Catholic schools in the city through a formal policy to stop raising money by means of casinos. Catholic schools in Edmonton and in other cities and provinces have been raising funds through bingo and casinos. The money helps pay for the various needs of the different schools, like computers and their upgrades, music programs, field trips, team uniforms, nutrition programs, school payments for parents who cannot afford, for playgrounds and other school essentials.

The casino fundraising has been lucrative, bringing in as much as $6 million every 18 months as in the case of Edmonton’s Catholic schools. But the issue of propriety in using gambling to raise funds has long been debated ever since the matter was brought up in Alberta in 1998 when bishops released a pastoral letter tackling the escalation of gambling in the province. This recent move by the Archdiocese of Edmonton is the latest action on the issue which has not died down since. "What we are concerned about is not raffles or Grey Cup pools," says Lorraine Turchansky, director of communications for the Catholic Archdiocese of Edmonton. "The policy is specifically about casinos, video lotteries, and high stakes bingo."

Ms Turchansky says gambling addiction is what disturbs the Archdiocese and for the Church to offer an opportunity for such addiction to happen is morally wrong. The Edmonton Catholic School district is thinking of establishing a fundraising foundation akin to what the Calgary Catholic School district has started, which will organize events and look for private donors from other Catholic organizations. The Calgary district’s foundation will start on December 10 and the different schools in the district have already been given a list of fundraising opportunities. The Catholic school board in Calgary has decided to discontinue the money-making practice using bingo and casinos starting in 2006, but carried it on until March this year because of their previous commitments to gambling fundraisers.

This formal prohibition by the Archdiocese has raised concerns among parents about where the money for the schools’ needs will come from and whether they will be made to pay for the deficit, especially when the education budget of the province is reduced by $80 million this year. And the parents are not convinced that other fundraisers would be as lucrative as the casino fundraisers. Karilyn McAuley, the mother of two students at Holy Cross Academie Internationale says her children’s school gets around $70,000 every 18 months from the casinos. "Without the casino fundraisers we wouldn't have computers, we wouldn't have a playground, our teams wouldn't have uniforms, and the band wouldn't be affordable," says Mcauley.

December 11, 2009

No Help Seen For Horse Industry After Election

The ailing horse industry of Kentucky is at its wit’s end trying to come up with a plan on how to press forward a legislation allowing slot machines at racetracks after the defeat of the Democratic candidate that it strongly supported in Tuesday’s special state Senate election. The industry was counting a lot on the election of Democrat Jodie Haydon for a legislation on expanded gambling, and it spent hundreds of thousands of dollars on advertisements supporting Haydon and opposing Republican candidate Jimmy Higdon. "We didn't plan on losing, so we don't have a strategy other than we want to attempt to continue to have our voices heard," said Ric Waldman, of the group Keep Our Jobs in Kentucky Inc.

Senate Majority Leader Robert Stivers, R-Manchester said Wednesday the horse industry has made a great effort to try to reverse the political dominance in the Senate, even spending a lot of money, but after two costly elections, the Republicans have stayed in power. "If they spent the $1.9 million that we've heard that they've spent, I feel that they were not very good at spending their money," Stivers said. "Maybe they are not in as bad a shape as they claim to be if they can spend basically $2 million on an election." Stivers also said that Democratic Gov. Steve Beshear is the horse industry’s only hope and that the outcome of the expanded gambling legislation now lies in Beshear’s hands. For his part, Beshear did not say whether a particular bill is in the offing, but he did say that he has remained a supporter of a legislation allowing slots at the state’s racetracks. "All options are on the table, and helping the horse industry survive is a top priority, but we are still developing our legislative strategy for next year," Beshear said.

Racetracks and horse breeders have turned down a bill currently filed by Sen. Damon Thayer, R-Georgetown because it was for a constitutional amendment. Jay Blanton, spokesman for Keeneland said a constitutional amendment causes delay and "doesn't provide the kind of immediate, near-term relief the industry needs.". "We still prefer the statutory approach," said John Asher, Churchill Downs spokesman, referring to House Speaker Greg Stumbo's bill, which didn't require a constitutional amendment. The slots bill died in a Senate committee after Stumbo, D-Prestonsburg sponsored it in a special legislative session this summer. Stumbo is not planning on filing another slots bill again. "Until things change over in the Senate, I don't see why the House would want to consider it," he said.

Bill Farish of Lane’s End Farm, a Republican but an outspoken opponent of Senate President David Williams, R-Burkesville, said that with Williams in control, the likelihood of passing a slots bill in the General Assembly seems remote, so the industry heads will set their sights on next year’s election. "It's very, very hard to move the ball right now. We have no choice but to keep trying."

December 10, 2009

Pennsylvania Gambling Bill Runs Into A Snag In House

The session of the state House of representatives came to an unexpectedly sudden close Tuesday afternoon as legislators delayed voting on a gambling bill for the state. House Speaker Keith McCall, D-Carbon and House Majority Leader Todd Eachus, D-Luzerne did not pause to oblige reporters on the reason for the set back. But the chief of staff of McCall, Paul Parsells said Democratic leaders were still trying to solicit backing from the Republicans so as to gather a sufficient number of votes for the bill to pass. ”We don't have a majority yet," Parsells said.

Republicans in the House are against the bill, and before it can become a law, it has to be approved in the Senate which happens to be dominated by Republicans. A number of lawmakers also said they wanted more time to read and understand it before a vote. The bill aims to allow two more casinos in Pennsylvania and to legalize table games in the state’s nine casinos which have only slot machines.

The license fees that the casinos would have to pay to the state are in millions of dollars, and the tax rate would be at 14 percent until June 1, 2011 and 12 percent thereafter. House and Senate leaders have worked to find an area that would be mutually agreed upon by legislators both supporting and opposing the bill since gambling expansion in Pennsylvania is a vital element in last October’s budget agreement to create new tax revenue badly needed by the state government.

Expansion of gambling in Pennsylvania is expected to give the state more than $300 million in tax revenue in the next couple of years. Approval of the bill would also mean around $700 million in discretionary state funding for universities, museums and hospitals, but most of it going to the universities of Penn State, Temple and Pitt that said they would be forced to increase tuition fees for the second semester if funding is delayed. Gov. Ed Rendell has also stated that without help from additional gambling revenue, the state would be in a dire financial state next year.

Democratic leaders wanted to remove some writings of the present bill and add 131 pages of thoroughly new words and phrasing that was presented to legislators Monday afternoon. They were hoping that the chamber would follow their lead, but not even a preliminary vote took place on Tuesday, and a final House vote before Thursday is not promising.

December 9, 2009

Pierce County Council Committee Postpones Discussion Of Card Games Proposal Indefinitely

Pierce County Councilman Dick Muri, R-Steilacoom has recommended to the council a measure to allow “social” card games in local business establishments in unincorporated Pierce County. He reasons that there is already gambling going on in the county, such as pull tabs, a type of gambling that is legal in the area, and card games sponsored by nonprofit groups. “There is this concept that we don’t allow gambling in Pierce County. But we do,” Muri said during Monday’s meeting.

Muri’s proposal came up because of the issue of a certain commercial establishment, Walt’s Tavern of McKenna, that held regular poker games in the joint until state authorities revoked its license when the officials became aware that it was in unincorporated Pierce County where the local law banned games of that nature. The Washington State Gambling Commission had allowed the tavern to provide a venue for the games, which were not funded by the tavern, and where the customers who participated in the activity brought their own money and played against each other.

The acting manager at Walt’s, Lorna VanFleet told the committee there were no troubles encountered as a consequence of the games, which was confirmed by council attorney Jeff Cox through reports from the sheriff’s office. VanFleet estimated that a minimum of six people to a maximum of 20 took part in the games. Muri suggested social card games should be allowed at local establishments, but doing so would also compel the county to legalize bigger card games of up to 15 tables, as required by state law. That would make the entire unincorporated Pierce County amenable to larger games entailing as many as 150 people.

Such a scenario was a cause for concern for the council’s rules committee, which, as a result, voted 3-0 to put off discussion of the issue at an undetermined time. “To me, it looks an awful lot like a casino,” said council Chairman Roger Bush, R-Graham. “It would be akin to opening major card rooms and casinos throughout the county. I don’t think the people of Pierce County would support that.” “This has very, very little support on the council,” Bush concluded. “It’s not likely to go anywhere.” Which means that, since Muri is the only council member backing the proposal, the possibility of the council reviving the matter is very remote.

December 8, 2009

Gambler Sues Harrah’s After Losing $127M

Terrance Watanabe, a 52-year old businessman from Omaha who lost $127 million in 2007 has filed a civil suit against Harrah’s Entertainment Inc., claiming that the employees of the two casinos which it owns, Caesars Palace and Rio, loaded him with painkillers and alcohol to keep him gambling. For the whole of 2007, Watanabe was virtually living at the two casinos, gambling away the money he made from running the party-favor import business of his family. The two casinos tended to him lavishly. He was given a 3-bedroom suite for free, provided attendants, and served a seven-course meal while playing. He was also offered a half-million in credit at gift shops, provided $12,500 a month for plane tickets and granted 15% cash back on losses of more than $500,000 from table games.

Watanabe, an extravagant gambler, would be seen at the blackjack table, playing three hands of blackjack at the same time, each with a $50,000 limit, or roulette and the $25 multi-line slot machines non-stop for 24 hours. Watanabe was also said to have lost $5 million in one day. His bets for that year have totaled $825 million, and it was reported that 5.6% of Harrah’s total Las Vegas gambling revenue for 2007 was from Watanabe. His excessiveness even extended outside the gambling halls. Reports say he often gave bunches of $100 bills to employees at Caesars, and thousands of Tiffany gift cards and $100 coins to security guards, bartenders, and others.

A Harrah’s official, Jan Jones said that Watanabe’s legal action against Harrah’s was just his strategy to avoid paying a debt. "Mr. Watanabe is a criminal defendant who faces imprisonment." Watanabe has paid almost $112 million of his debt to the casinos, but some months ago, he was accused of refusing to pay Harrah’s the $14.7 million which the company says it offered to Watanabe as credit. It could mean an imprisonment of 28 years for the gambler. State law and casino rules state that anyone who is visibly intoxicated should not be allowed to gamble. Watanabe’s attorney said that his client “takes full responsibility” for his drinking, but the casinos took advantage and exploited his condition. Watanabe has claimed that the Wynn casino has banned him in 2007 because of his compulsive drinking and gambling.

"We're in the gambling business," Jones declared. "We had no reason to believe that Terry Watanabe was anything other than a big player with huge resources who made an adult decision to bet the money he did. Are we going to provide an environment that keeps him very happy? Of course we are." The Gaming Control Board of Nevada has looked into the charges of Harrah’s violation of gambling rules.
According to his sister, Watanabe has sold his mansion in Omaha and is now living near San Francisco, and has not set foot in a casino after being treated in a facility.

December 7, 2009

Governor’s Office Says Altered Gambling Machines Are Still Slots

In March this year, 105 bingo gaming machines were seized in a raid on the White Hall entertainment Center in Lowndes County. The operator of the gaming center, Cornerstone Community Outreach made several moves to avert more raids, which prompted Gov. Bob Riley through his Governor’s Task Force to turn to the court to request for a ruling on the legality of the machines. Last month, after almost a year of debate on the classification and legality of the machines, the court finally ruled that the so-called “electronic bingo machines” are in fact an illegal form of gambling, and they “operate almost exactly like slot machines” which are illegal in Alabama. The court likewise made a list of six features distinctive to the traditional game of bingo.

As a result of the court ruling and the half-dozen distinguishing traits of bingo established by the court, Alabama’s major gaming centers including the Country Crossing, Victoryland, and the White Hall Gaming Center are now altering their bingo machines to conform to the level acceptable by the court. In order for the machines to be considered bingo, the games must announce and display balls one at a time, must call for players to pay attention to the drawn balls and mark their cards correctly, refuse to pay players who don’t focus on the game, and have players competing against each other, not against the machine.

But the reconfigured machines still had the slot-like qualities like the blinking lights and the rotating reels, and the Governor’s office is not satisfied, saying the changes the casinos have made to the machines are not much, and the Task Force could be preparing to conduct more raids. "It just seems so ridiculous to me that they're still arguing that this is bingo," Todd Stacy, Riley's press secretary said. "It doesn't pass the smell test."

They officials in the governor’s office say that if the machines accept and eject money, which is what the state describes slot machines, they may still be illegal, even if the machines are altered extensively. “I don't care if you're playing tic-tac-toe," Stacy said, "if you're playing it on a slot machine in Alabama, it's illegal." They also argued that the casino operators are trying to broadly interpret the rules allowing bingo, when the court wants the rules to be “narrowly construed.”

When asked if the governor’s office is poised to conduct more raids on casinos soon, the Deputy Legal Advisor replied, “We’ll wait and see.”

December 6, 2009

Gambling ship’s onboard staff air gripes

About 40 crew members of the gambling cruise ship, the Palm Beach Princess went on strike Wednesday to complain about their safety and working conditions on the ship. They were among the 150 foreign workers who live and work on the ship. After the work stoppage that lasted for a day and a half, the ship’s management was able to resolve the disagreement that needed urgent attention, and the ship began sailing again Thursday night. The workers objected to their demanding working situation that is stretching them to the limit. Ross Toyne, attorney for the International Transportation Worker’s Federation said that some are forced to cope with additional tasks and working rotations are extended to more than 10 months, which is the standard, due to the dwindling staff.

Toyne, who was on the ship Thursday, said that some workers have worked and stayed on the ship for 15 straight months without a break, and others complained of having a hard time collecting overtime pay, and of paychecks arriving behind schedule. "The crew's been on the ship for so long now that people are starting to make mistakes," said Toyne. "As a general proposition, the economic component of their treatment is fine. What we're more concerned about is, long term, when you run a crew hard, you end up with people getting injured."

The Wednesday strike has in effect exposed management’s unfair and somewhat manipulative style of handling their employees and the rather abusive working conditions of the floating casino business. "They are virtual sweatshops at sea," Toyne said. Toyne bared that the average monthly income for a cocktail waitress is $50 plus tips, while those in the casino are paid $13 a day plus tips, and engine and deck workers get $400 a month. It is compulsory for crew members to work 6.5 days a week, 12 hours per day. The standard contract is for a 10-month period. The workers get free room and board on the ship. "All the major cruise lines have slashed their operating costs, basically recognizing that the passengers will pay the employment costs of their labor forces," Toyne said.

But there is still a demand for the jobs from foreigners because of the opportunity to earn precious dollars from tips. In accordance with the visa requirements for foreign workers, the Princess has to leave the U.S. every 28 days. Thus, the ship sails to the Bahamas every month for the crew to get their passports. The workers stay overnight and the following day the ship sails back to the port of Palm Beach to start its twice-a-day cruise-to-nowhere schedule.

Meanwhile, ship’s officials refute the allegations and say no worker has been forced to stay on the ship, and that anyone who wants to leave can do so. "I know we have some people asking for an extended contract, and when we have people ask for an extended contract, sometimes we say 'OK,'” Mauro Sebben, owner of the ship said.

December 5, 2009

Bank Official Says Financial Institutions Calling For Regulation Of Internet Gambling

Samuel Vallandingham, vice-president of the first State Bank of Barboursville, West Virginia, and vice-chairman of the Payments and Technology Committee of the Independent Community Bankers of America testified today before the House Services Committee assembly on online gambling. He made it known to Congress that the requirements imposed by the UIGEA on the banking institutions in the US on the online gambling ban are quite hard to meet.

He said that Barney Frank’s bill seeking to regulate Internet gambling and online casinos would be the solution to the complexities the financial industry is presently encountering as a consequence of the UIGEA ban. Although he declined to give his opinion and was reluctant to take a position on the advantages of legal Internet gambling, he was basically saying that the entire financial industry is throwing its full support behind Rep. Frank’s bill.

He also said that it is a difficult job for the financial institutions to try to prevent gambling Web sites from making and receiving payments through banks or other financial establishments. It is an extra responsibility that is just too hard for the banks to cope with. "The added burden of monitoring all payment transactions for the taint of unlawful Internet gambling would drain finite resources currently engaged in complying with anti-terrorism, anti-money laundering regulations, the plethora of new regulations emerging from the financial crisis and the daily operation of community banks to meet the financial needs of their customers," said Samuel Vallandingham, who is also an expert on banking technology.

Vallandingham also expressed disappointment that the much-criticized UIGEA does not give a clear and comprehensive definition of illegal online gambling. He said banks find it hard to verify and confirm the legitimacy of each and every client because there is no law currently available that supersedes the numerous state, federal and local laws. He said that credit card companies have a merchant coding method that enables them to identify gambling and casino dealings, but he stressed that coding relies on the merchants giving complete and secret information about themselves and their business operation, which is like making online gambling operators give themselves away.

At the close of his testimony, the bank executive told legislators, "ICBA strongly endorses H.R. 2267, the Internet Gambling Regulation, Consumer Protection and Enforcement Act which establishes a federal regulatory and enforcement framework for licensing Internet gambling operators."

December 4, 2009

McHenry Latest County To Opt Out Of Video Gambling

The members of the McHenry County Board voted Tuesday 13-10 with one abstaining, to ban video gambling in establishments in unincorporated areas. The county is the latest local government in Illinois to opt out of the state’s fundraising scheme, joining around 30 municipalities and the counties of Cook, DuPage and Lake. A county ban does not affect municipal governments, as they are entitled to their own decision. In July, state legislators of Illinois passed a law allowing video machines in establishments with liquor licenses to raise funds to help pay for the state’s $31 billion capital plan. The law gives counties and municipalities the right to opt out, but any local government that opts out will still be allocated its projects.

Sen. Pam Althoff, R-McHenry, who had appealed to the board not to be too quick to decide on a ban, informed the board members that under the General Assembly’s plan, McHenry County has at least $315 million in infrastructure projects. “Ultimately the decision was in the hands of the County Board, and they voted to ban it, and I will respect that decision,” Althoff said. Bob McDaniel, owner of Old Rivers Inn said a ban would be bad for his business, and Chris McSwain of A.H. Entertainers, a game machine company, said, “This county needs roads, bridges, bypasses and schools. That’s what this capital plan is all about, and this is what video gaming helps support.”

Although not one board member defended video gambling before the vote, some suggested delaying the ban until the Illinois Gaming Board has formulated rules and enforcement procedures. Board member Marc Munaretto, R-Algonquin suggested to postpone the vote until March, but was rejected. “This County Board has a history of making informed decisions, and by acting on this today, we are violating that work ethic,” Munaretto said. Board member Sandra Fay Salgado, R-McHenry said she would be willing to re-examine the ban when rules have been worked out by the gaming board. Rep. Jack Franks, D-Marengo, who is strongly against gambling, lauded the board for doing the right thing.

Board member Paula Yensen, D-Lake in the Hills, calling video gambling “a sucker’s bet”, said, “Supporters of video gambling love the idea of easy money for the state, but they ignore the very real and substantial law enforcement and social service costs.” “It’s not about the capital plan. It’s not about monies coming to our county. It’s about video poker,” McHenry resident Joyce Story said. “It’s not about jobs; it’s about addictions.”

Randy Donley, R-Union, the lone abstainer, was advised by McHenry County’s State’s Attorney’s Office to refrain from voting because his family owns Donley’s Old West Steakhouse which has a liquor license. “I represent a group in this county, and I was totally silenced,” Donley said, upset over the fact that he was not able to vote on the issue, let alone make a comment on the matter as a restaurant owner.

December 3, 2009

Gaming Board Approves Kansas Speedway Casino Plan

A Hollywood-inspired entertainment destination facility will soon rise in the Kansas Speedway site. The project will be developed and operated by the Kansas Entertainment LLC, a company owned by partners International Speedway Corp. and Penn national Gaming Inc. of Wyomissing, Pa. The casino plan was approved by the Kansas Lottery Gaming Facility Review Board by a unanimous 7-0 vote. The first phase of the project estimated to cost $386 million consists of a casino with a gaming room area of 100,000 square feet that could hold 2,300 slot machines and 86 table games, and a dining area of 28,000 square feet with restaurants, clubs and nighttime entertainment.

Additional phases would include a hotel, casino expansion, spa, and convention and entertainment center. Officials of the company say these would be built depending on the market’s demand. Penn National Gaming and International Speedway Corp. will equally divide the development costs of the project which include project financing, gaming equipment financing and owner equity contributions.

This is the first entry of International Speedway Corp. into the gambling business, and in its news release, Chief Executive Officer Lesa France Kennedy said, "International Speedway Corp. is committed to creating a world-class sports and leisure destination at Kansas Speedway, and we believe this effort will enable us to bring a second NASCAR Sprint Cup series date to the speedway." "Partnering with Penn National Gaming on this project will allow us to develop a property that will be well-positioned to maximize tourism, drive additional tax revenue, attract national media attention for the state of Kansas and our host community, Wyandotte County, and ultimately create value for our shareholders," Kennedy said.

Early this year, Penn National and International Speedway Corporation handed in separate and competing bids for the casino project and, in October, decided to merge and form a partnership that effectively combined Penn’s know-how in gaming operations and ISC’s NASCAR connection, and produced a very liquid corporation. Penn National Gaming owns and runs casinos and racing facilities that concentrate mainly on slot machines. ISC is owner and operator of 13 leading racetracks and sponsors more than 100 races annually.

As soon as the license is released next year, Kansas Entertainment would start construction of the first phase in the second half of 2010. The opening is scheduled on the first quarter of 2012. The Kansas Racing and Gaming Commission handles the background checking and the licensing of Kansas Entertainment.

December 2, 2009

Illinois Horse Tracks Offer To Accommodate Video Poker Machines

When state legislators passed a law that will allow establishments with liquor licenses to have up to five video gaming machines, their main objective was to raise funds from gaming revenue to pay for the state’s infrastructure projects. The state has been grappling with deficits in the budget owing to the economic instability. But the law also gave the state’s towns and counties an option to locally ban the machines, which was what some communities did, and which consequently posed a problem for the state. In banning the video poker machines, the communities have messed up a large amount of the projected gambling tax that has already been earmarked by the government for its infrastructure improvement plan.

In the midst of all this, the horseracing tracks across the state have decided to come to the aid of the government by offering to provide room for the gaming machines in their facilities. The representatives of the horseracing industry said in their emailed statements that if they are allowed to operate the video poker machines at their tracks, they will give the state its share, and the infrastructure plan could go on as intended. “It’s a no-brainer,” horse racing industry lobbyist Gary Mack was quoted as saying. He thinks that “no one would be opposed to it” given that there is already betting happening at the racetracks.

The horseracing industry may have smelled an opportunity here because for some time the racetracks have been trying to get slots at their facilities to attract more patrons and to boost their profits.

But they have always been blocked by the casino operators who are worried of the competition. Only this time the racetracks’ line of reasoning is to save the state’s infrastructure improvement plan by helping it raise the money.

But the casinos are also proposing the same idea for their establishment, although they still oppose allowing the video poker machines at the tracks. And, like the racetracks, they say they want to do it to help the state realize its infrastructure plan. “If the state would allow us to have more machines we could get them up and running,” says Tom Swoik, spokesman for the casinos. But anti-gambling lobbyist Anita Bedell says that gambling “is not a good way to raise revenue for the states.” She says that is exactly the reason why the state is having this trouble with projecting revenue from a new gambling law.

December 1, 2009

Philadelphia Gambling Has Beneficial Effects

Detractors of gambling have been saying that gambling has negative social and moral consequences and casinos have become a breeding ground for illicit and immoral activities. The critics also say that the disadvantages of gambling have always outweighed its advantages. But the state of Pennsylvania, and in particular the city of Philadelphia, has shown that this has not been so. The casinos, in coordination with the Gaming Control Board and the State Police have employed personnel with the task of overseeing and securing the area. They have also installed reliable systems to monitor activities within the property of the facilities. All the expenses for security are being shouldered by the casino operators.

The gambling-related criminal incidents have been petty and the suspects promptly arrested. Thus, the casinos in the state have become a secure and harmless place for visitors. When the first casino opened in Pennsylvania three years ago, the state and the city of Philadelphia have reaped substantial benefits. Currently, the nine casinos that are operating statewide have brought 8,346 steady jobs including those at Harrah’s Chester in Delaware County and Philadelphia Park in Bucks County. The construction of casinos throughout the state has also provided employment for a large number of qualified workers.

In the city of Philadelphia, the work on the initial stage of the Sugar House and Foxwoods casinos is projected to create around 2,500 jobs, and when they open, will hire 1,000 employees. And on the matter of revenue, since the first casino opened, the state has collected tax revenue of more than $3 billion. Two-thirds of that amount has been used to reduce wage or property taxes.

The residents of Pennsylvania have also been spending their gambling money within the confines of the state, finding no sense in traveling to New Jersey or other neighboring states, thus keeping gaming revenue inside the state. For the city of Philadelphia, wage-tax relief from revenues taken from casinos in other parts of Pennsylvania has amounted to $112 million, and that figure will certainly increase once the city’s two casinos open. After the two new casinos are completely operational, they are estimated to generate new tax revenue of more than $25 million a year for the city.

Casino revenue has also paid for the numerous projects and public works such as road improvements and constructions, community recreation and tourism programs. The sum of $220 million was given to the local governments where there are casinos or have casinos near them, for the purpose of funding those projects.

November 30, 2009

UIGEA Enforcement Postponed For Another Six Months

The Treasury Department and the Federal Reserve confirmed that the U.S. financial institutions are given an additional six months to implement the new regulations banning illegal Internet gambling. The agencies said that the new rules would take effect on June 1 of next year, instead of the initial schedule of Dec 1 this year. The new regulations, provided under the law called Unlawful Internet Gambling Enforcement Act which was passed in2006 are intended to control online gambling by prohibiting banks and credit card companies from transacting business with the gambling sites. Credit cards, checks and electronic fund transfers are the channels most commonly used by gamblers to settle online bets. The new rules were not clearly defined and were somewhat confusing and contradictory, prompting the financial institutions to complain that they would have difficulty enforcing them.

The federal agencies said in their announcement that their decision to delay was in reaction to appeals from Wells Fargo, the American Bankers Association, the Credit Union National Association, the different groups that had links with the gambling industry and Rep. Barney Frank. The agencies’ joint statement said, "The agencies acknowledge some of the challenges regulated entities are experiencing with the act's definition of 'unlawful Internet gambling.’ Moreover, several members of Congress have indicated interest in revising the Act. The agencies are thus persuaded that a limited extension of the compliance date for regulated entities is appropriate."

The announcement was welcomed by the Poker Players Alliance, a group that has an estimated 1 million members backing the overturn of the UIGEA. Rep. Barney Frank (D-Mass) also hailed the decision, saying “The Department of the Treasury and the Federal Reserve Board of Governors deserve a great deal of credit for suspending these midnight regulations promulgated by the Bush administration, which would curtail the freedom of Americans to use the internet as they choose and which would pose unrealistic burdens on the entire financial community. This will give us a chance to act in an unhurried manner on my legislation to undo this regulatory excess by the Bush administration and to undo this ill-advised law."

Rep. Frank authored a bill called the Internet Gambling Regulation, Consumer Protection and Enforcement Act, that would set up rules and principles that would provide the basis on which online gambling operators could acquire licenses to accept online bets from U.S. residents. The bill authorizes careful and methodical inquiries into license applicants and entails a system of technology to prevent juvenile gambling, money laundering and fraud.

But the Republican legislators who sponsored the UIGEA disagreed with the move, saying "Simply delaying the compliance date serves no interest except that of the Internet gambling enterprises that have long evaded American gambling laws and will continue to do so until effective enforcement is in place."

Internet gambling in the US is estimated to be a $10 billion-12 billion per year industry, according to experts.

November 29, 2009

South Florida May Give Gambling Hubs A Run For Their Money

South Florida is showing signs that it is now ready to become the country’s top gambling hub. Although at present the state’s gambling industry is under pressure due to a slump in the economy and as a result of a continuing conflict with the legislature, it has a huge potential for an extraordinary expansion.

The Seminole Tribe of Florida is asking the government to give them exclusive rights to offer table games like baccarat and blackjack at their Hard Rock casinos in Hollywood and Tampa in exchange for an annual payment of at least $150 million to the state. The tribe does not have to pay taxes because it is recognized as a sovereign nation. Also, the pari-mutuels in Miami-Dade and Broward that run casinos are seeking equality with the Seminoles, and are demanding for lower taxes and the option to offer table games.

Both sides have prepared expansion plans in case the legislature announces its decision which may be sooner than later, taking into consideration the state’s dire need for additional funding. Either side that the legislature takes could mean an occasion to expand. For the Seminoles, it could be a $3 billion plan to add hotel rooms, table games and slot machines. The pari-mutuels are also thinking of Vegas-style project expansion like the Mardi Gras Racetrack and Gaming in Hollywood whose investment could be more than $300 million.

The legislature could also likely decide on a compromise solution with both sides gaining and the state getting the much-needed revenue. If the Seminoles would be given exclusive rights on table games outside Miami-Dade and Broward and the pari-mutuels would have theirs in those counties, there could be a massive expansion in all aspect of the gambling industry. Beyond those two warring factions, expansion is also in every gambling operator’s mind. The Palm Beach Kennel Club wants to bring casino games at its facility in Palm Beach County. The Palm Beach Princess, which offers gambling with its day cruises, has thought of putting a land-based riverboat-style casino at the Port of Palm Beach. Some pari-mutuels in Miami Dade and Broward, Miami Jai-Alai and Hialeah Park have been allowed to offer slots. Calder Park, another pari-mutuel will open its casino in January. There is also a proposal to place slot machines at the Miami-Dade airport and a casino at one of the hotels in Miami Beach.

It has been said that the South Florida/Tampa gambling market is the third or fourth largest in the country, after Las Vegas, Atlantic City and Chicago, with an estimated annual revenue of $1.8 billion to $2.5 billion. The state also appeals to tourists and retirees because of its sunny weather. In fact, more visitors went to casinos than football games last year.

November 28, 2009

Further drops in California tribal casino revenue seen as gamblers spend less

At this time when the country is experiencing a recession, there is still a constant and heavy flow of customers at the tribal casinos in Southern California. But if one looks closely, one could perceive that the players are spending more time at the cheapest gaming tables and at the 25 cent and penny slot machines. The gamblers have altered their betting habits, shifting from high-rolling to the cheapest bets. Casino operators say players are now being careful and frugal on the way they spend their gambling money, and as a result, Indian tribal casinos saw an almost 6 percent drop in revenue last year.

“We have the same amount of people and they come in as frequently but they are just spending less,’’ said Mike Hiles, a tribal information officer for the Soboba Band of Luiseno Indians. The tribe runs a casino with 2,000 slot machines, 20 gaming tables, and two restaurants in San Jacinto, Calif. The Indian tribes in California still do not see a light at the end of the tunnel for the gambling industry, thus, most of the casinos have not yet added new slot machines to their facilities, although they are allowed to operate 62,000 units under an agreement settled with the Schwarzenegger administration in 2005.

Tribal officials say the recession’s effect on California’s tribal casinos could have been grimmer if not for the gamblers who decided to play locally instead of travelling to Las Vegas and Reno in order to reduce expenses. California tribes do not have to declare gambling profits, but the federal law requires them to present regular financial reports to the National Indian Gaming Commission. The Commission combines California’s 55 Indian casinos with four in Northern Nevada, and gives the entire sum for revenues only. As per the Commission’s release, the earnings for 2008 was $7.4 billion, a drop of 5.6 percent from $7.8 billion in 2007. Although data for 2009 are not yet available, casino operators said the decline has persisted.

California Indian tribes are not the only ones suffering the blow from the recession. All other tribal casinos across the country are in the same boat. And lower revenues have compelled the casinos to lay off employees, some have ordered salary reductions and others have deferred raises and suspended contributions to 401(k) accounts. Within the reservations, the tribes have discontinued the social services to members and stopped infrastructure projects due to decreased earnings.

It was once believed that the gambling business is recession-proof, but the continuous decline in casino revenues has shown that thinking to be false.

November 27, 2009

Off-reservation Indian Casinos Criticized

Several Indian tribal casinos throughout the United States are drifting away from their tribal lands, hoping to build casinos beyond, and quite a distance from their reservations. The Indian gaming business consisting of hundreds of tribal casinos is a $26 billion industry, and the greater bulk of those casinos are on Indian reservations, and far away from big cities. The 1988 federal law that created regulations for the industry specifically provided for that ruling, but there are exceptions that apply for tribes that have regained federal recognition and need to set up a reservation.

There are already existing off-reservation casinos in Milwaukee and Spokane, Wash. that have been granted authorization in the 1990s. At present, roughly a dozen tribes have reportedly filed applications seeking to build casinos outside their reservations and very near populated areas. In six applications, the casinos are proposed on property more than a hundred miles from the tribal land.

Last year, the Bush administration declared that Indian casinos must be within commuting distance from the reservation. Consequently, more than twenty applications were denied. But the present Obama administration will likely relax the ruling, and the U.S. Bureau of Indian Affairs is currently re-examining the commuting-distance rule, making the tribes hopeful.

BIA spokesman Gary Garrison said remote tribes should be permitted to operate gambling activities outside their reservation. But he added: "We're also very conscious of whether the communities approve or disapprove. We don't want tribes willy-nilly going off reservation." The Guidiville Band of Pomo Indians is one such tribe that wants to build an impressive $1.5 billion casino resort on a 413-acre piece of land near the San Francisco Bay. The area is more than 100 miles from the Guidiville’s reservation.

The Scotts Valley Band of Pomo Indians is also proposing a less imposing casinos close by, but 113 miles from their tribal land. The two tribes are asking the government to declare the two areas sovereign land so they can build their casinos. They claim that their ancestral lands were in the Bay area, but they were forced to leave when the white settlers came. They say that the tribal lands they are presently dwelling in are not good locations for their casinos.

Some of the non-Indian casino operators welcome the move as they see it as an opportunity to be hired to run the gambling operations, while others see it as an intrusion on their territory. The Guidiville tribe is proposing to pay the city of Richmond $20 million a year for twenty years and to employ the city’s residents for almost half of its workers. "We have a responsibility to try to make lives better," said Donald Duncan, a top tribal official. But the trend has raised concerns among the gambling opponents who are worried about the social ramifications that gambling brings. They also protest that the tribes are cunningly manipulating the system in order to get nearer the more profitable urban markets.

November 26, 2009

Entire Kane County Board To Vote On Video Gambling Dec 8

After 45 minutes of discussing the significance of putting the issue of video gambling to a vote, the full board of Kane County decided Tuesday night to finally settle the result on Dec. 8. The board though is not giving any hint whether it is going to ban the machines or to allow them. All the board is saying is that it wants to vote on the issue. "I don't want to be accused of inaction and then all of sudden we have machines because we didn't opt out," county board member John Hoscheit said. "At some point we should vote on this. By waiting, we might as well just say that we're going to allow it to happen."

If the board votes to allow the video gambling machines in liquor establishments, it would be taking a different stand from the growing number of Illinois counties and communities that have banned them. Earlier this year, a state law was passed allowing up to five video poker machines in establishments with liquor pouring licenses intended to raise revenue to help fund $31 billion in capital projects. A portion of the tax revenue would be given to local municipalities. The law gives municipalities the option to locally ban the measure.

Last month, a three-man task force acting as an advisory committee, in a 2-1 vote, passed on to the Kane County Board a not-so-enthusiastic recommendation not to ban the gambling machines. County board member Jesse Vasquez who led the task force was quite hesitant to advise the board to support the committee’s recommendation because state regulators still have not formulated a system by which to regulate video gambling. "While I have expressed support for this law, I also recommend that we wait until the state has made some appropriate changes before we make any decision on this," Vazquez said. "I think it would be premature to act knowing that the state is going to make some changes to the law soon."

The single opposing vote in the task force was from Drew Frasz who said "I just don't see the benefit of it at all. I don't believe in reducing our social morals every time we have a budget problem." Frasz, who was concerned with the issues of monitoring and enforcement by the Illinois Gaming Board, said all the residents in his district of Elburn who he talked to were all for banning the machines. The third task force member Robert Kudlicki, although he voted in favor, said that it was regrettable that the state turns to gambling in order to raise revenue.

November 25, 2009

Cyprus Police Arrest Forty Two Elderly Women In Gambling Raid

Forty two women who were past middle age were arrested when police authorities raided a private house in the seaside town of Limassol in Cyprus. But the women, police found out, were just plain grandmothers who were idling away the hours socializing and playing cards. The police, in keeping with the law, were compelled to conduct the raid after receiving complaints from neighbors that retirees and senior citizens were gambling in a private house and were annoying the neighbors with so much noise.

The stake money found by the police were less than 100 euros, along with 830 playing cards and 536 poker chips, after they caught the grannies playing poker and gin rummy. Most of the women were aged between 75 and 85, the oldest was 95 years of age and the youngest, who was said to be the host of the session was 50 years old. The forty two elderly women were taken to a police station and were charged and released. The schedule for their court appearance has not been set as of this writing.

All of the forty two women, if convicted, would very likely just be fined. A more severe punishment would seem unjust, considering the age of the accused and the measly sum of their stake money. There were similar cases in the past where elderly women were arrested in gambling raids, and all claimed that they were playing only for “social recreation”

The police have been criticized for going after old women instead of hunting down tough criminals. A leading newspaper said it all, “The police raid was upsetting for these elderly women… They were only playing for small change which they hadn’t given to their grandchildren to use on fruit machines”

In Cyprus, gambling is considered a criminal offense even if done in private homes. The only legal forms of gambling in Cyprus are the state lottery, horse racing and football betting. But it has been said that gambling is the Greek Cypriots’ favorite vice. A lot of Greek Cypriots, in most cases middle class women, love to play cards. Unregulated online gambling is also popular among Cypriots, with an estimated annual bets reaching 100 million euros.

In the casinos situated in the northern part of Cyprus which is controlled by Turkish Cypriots, many Greek Cypriots are believed to splurge their money on gambling tables just as lavishly. They cross the green line that separates the north and the south, because Cyprus in the south, which is controlled by Greek Cypriots, does not have casinos.

November 24, 2009

Tribes Facing Financial Woes

Who would have thought that two giant tribal casinos, one of them known to be the world’s largest, would now be facing huge financial troubles? In 1992 the Mashantucket Pequot Indians borrowed $235 million from a family-owned Malaysian firm to build what is now known as Foxwoods. A few years after that, the Mohegans entered into an agreement with a South African billionaire and began building the Mohegan Sun.

In 1993 when Foxwoods opened, its earnings from slot machines reached $81 million and in 2005, slot profits even rose to an astounding $818 million. For the Mohegan Sun, slot earnings when it opened in 1997 was $227 million, and soared to $916 million after a decade. Foxwoods became the world’s largest with thousands of hotel rooms, dozens of restaurants and seven casinos. The Sun, aside from its other features offered three casinos and several hotels on its 3.1 million square foot area.

It seemed an endless growth for the two casinos until the economic recession set in and the two giants started feeling its effects. That, plus the billions of dollars in debt that have mounted up through the years due to over expansion and some questionable business deals that have impaired the pouring in of cash into the business. The competition from racinos in neighboring states is also making the tribes’ situation worse.

For the past two years, the Pequots’ debt rose to $2.1 billion and their slot revenue fell more than $100 million. Last week Standard and Poor’s dropped the Pequots’ credit rating to the lowest D. The tribe is still trying to pay its debt to the Malaysian firm that helped finance Foxwoods and to MGM Mirage that helped construct the MGM Grand at Foxwoods. The Mohegans have an outstanding debt of $1.6 billion, while its net income fell 23 percent in 2009, and it still has to pay the money it owes the South African mogul.

"The Connecticut tribes got in the same situation as commercial operators," said Megan Neuburger, a senior analyst with Fitch Ratings Services. "Revenue was up, and a lot of investor money was available. Now revenue is down. Did they overbuild? To some extent, I think so. There was easy access to capital for a half a decade. There was also a belief that this was a recession-proof industry."

Bradley Beecher, who worked for the Mohegan Gaming Commission, said he was witness to the tribe’s overspending during its building spree."It was crazy what they were paying. They imported wool carpet from London, glass beads from India. And it was all fast-track construction." "Ask yourself why they are in a bind when they pay no tax on 75 percent of their revenue," Beecher said. The tribes do not pay taxes because they are considered sovereign nations, although the state takes 25 percent of their revenue. As a result, employees of the two casinos have been laid off and expansion plans have been put on hold.

November 23, 2009

Atlantic City To Revamp, Liven Up Its Image

Atlantic City has been hit hard by the economic downturn and for months the city’s eleven casinos have been looking at double digit declines in gaming revenue. The managements of the different gambling establishments have been trying to find means to turn those numbers around. Its major tourist attraction is its casino gaming and about 90 percent of the city’s casino revenue comes from gambling. To add further to the city’s mounting problems is the strong competition from neighboring states that have offered expanded gambling at their racetracks.

Don Marrandino, top executive officer of Harrah’s Entertainment’s East Coast casino properties thinks that Atlantic City should have more glitz and glamour in order to regain its lost revenue and recall business from growing competition emerging from nearby racinos. "The old of way of thinking was, 'We don't care. We just want gamblers,'" Don Marrandino, said in an interview. But now that has changed. "We want people to come and have a good time and tell their friends."

The drop in gaming revenue has brought about this change in attitude for Harrah’s. As per data from the New Jersey Casino Control Commission, gaming revenue declined 12.6 percent in the third quarter of 2009. In view of this, a meeting will be held to be attended by the city’s local officials, business leaders and casino executives, Marrandino among them, to talk about measures on how to revamp and liven up the casino-dependent city for it to be more attractive and enticing to gamblers and non-gamblers alike, even in the face of a fragile economy.

Marrandino is hopeful that this discussion would be fruitful and could set in motion the awareness and interest of the non-gambling crowd in the city’s restaurants and shopping centers. Plus concerts by top artists and some titillating entertainment at the casinos, the city will surely draw crowds, Marradino predicted.

"When your back's against the wall, it's amazing how people unify," Marrandino said. "You'll see more done over the next 12 months in the city than you've seen in the last several years. We're trying to get some of the laws swiftly changed so there can be topless shows in Atlantic City, like there are in Las Vegas. It would be great if sports betting or sports gambling would be allowed in Atlantic City," he added.

Some of Harrah’s Entertainment’s properties in Atlantic City will soon be refurbished and entertainments like concerts and celebrity shows have been lined up at its four casinos.

November 22, 2009

Money, Vehicle Forfeited In Video Poker Raid, But No Charges Filed

In 2008, deputies of the sheriff of New Hanover County raided a establishment suspected to be offering illegal video poker games and confiscated cash in the amount of $114,985 and a Chrysler 4S and were turned over to the sheriff’s office for his use. Officials claimed that the money and the vehicle were alleged to be earnings of illegal gambling activity and as such should be forfeited as part of the process in the pursuit of legal action against the suspected owner for his criminal offense. But it was later found out that no criminal charges were filed against the proprietor.

Information from the sheriff’s office disclosed that New Hanover County Superior Court Judge W. Allen Cobb, Jr. signed the forfeiture order which was prepared by Buddy Allard, the attorney of the property owner. Sheriff Ed McMahon replaced former sheriff Sid Causey in July. The mistake was uncovered when a newspaper decided to investigate after a certain Brenda Curry, 65, alleged that sheriff’s deputies seized more money from her than they reported when they arrested her for illegal gambling activities more than four years ago. She is still awaiting trial.

When the newspaper examined court records pertaining to Curry’s case, they came across some search warrant inventories that did not state the amount of money the deputies seized. In answer to the newspaper’s inquiry as to the amount of money that was seized in the second case, the sheriff’s office provided a copy of the forfeiture order signed by Cobb and a record on New Hanover County Finance office letterhead saying the money was turned over to the county, for the sheriff’s office use. But the forfeiture order provided by the sheriff’s office has no case number, no court stamp and no copy was filed at the New Hanover County Court Clerk’s Office. When the newspaper faxed the order to Cobb, and after the sheriff met with Cobb and a representative of the County’s District Attorney’s office, it was learned that no criminal charges were filed when the forfeiture was carried out.

In his letter to the newspaper, McMahon explained, “The officer in charge of the investigation was promoted and transferred to another division. The requisite communication and coordination after the Detective’s transfer never occurred and this resulted in charges never being filed.

The case, in essence, fell through the cracks.” McMahon added in his letter that at this point that the mistake has been unearthed, no criminal charges will be filed retroactively against the property owner, but he would not be able to get the money back.

The sheriff also assured that he has taken action to make sure that there would not be a repeat of the oversight. “The professionalism and accountability of this Office must be reflected in each and every investigation,” he says. McMahon also said he wasn’t able to find any other lapses of the same kind.

November 21, 2009

Expanded Gambling Proposed For New Hampshire

Bill Wortman, chief executive officer of Millennium Gaming and share owner of Rockingham Park racetrack in Salem, made a presentation on his proposal for a gambling complex at Rockingham Park before state representatives and senators Wednesday evening. Local officials listened as Warton talked about the possibility of expanded gambling in New Hampshire, and debated its benefits and drawbacks over dinner at The Exeter Inn courtesy of Wortman.

Wortman said that if New Hampshire allows expanded gambling, Rockingham Park will be reconstructed and the new facility would have video lottery terminals and also "enhanced live horse racing and charity table games," and "a grandstand, gaming floor, entertainment pavilion, and restaurants operating without immediate competition." Las Vegas-based Millennium Gaming owns Cannery Casino & Hotel in North Las Vegas, Rampart Casino and Eastside Cannery both in Las Vegas, and the Meadows Racetrack & Casino in Washington County, Pa.

Wortman said that with no competition from Massachusetts, Millenium officials estimated the gross revenue of the facility to reach $418.2 million annually, and $204.9 million would be the state’s share, computed at a tax rate of 49 percent. "Our model shows that almost 63 percent of that money comes from outside the state," added Wortman. According to Wortman, the construction of the site would mean engaging 1,100 jobs, and the facility itself would employ "approximately 1,000 high quality permanent, family-sustaining jobs with good and meaningful career opportunities." "The creation of any jobs is positive in New Hampshire at this point," said state Rep. Amy Stasia Perkins.

When the issue over the moral implications of gambling came up, Wortman showed letters from the police chief of Washington County, Pa. where Meadows is situated, that confirmed there were "no discernible increase in crime" since the Meadows opened. "It's very, very difficult to put your arms around the social costs," Wortman said. "No doubt, there is a problem-gaming issue, but there is zero money in New Hampshire to deal with that.”

Nevertheless, $8.4 million taken from Rockingham Park revenue would provide for treatment of gambling addictions, "and any other social service, drug and alcohol problems," Wortman said.

Rep. Laura Pantelakos commented, "We have already had gambling in this state. We talk about gambling becoming an addiction in casinos. Look at the people that go to Bingo and lose $300 to $500 in the run of a night. I think we need to look at the big picture. We're in a sad state of affairs if we don't find some source of income to come in. It's the better of all evils. Nobody wants income tax. Nobody wants sales tax."

Perkins said that gambling was introduced in New Hampshire in the 1960s initially to support education. She thinks New Hampshire should adopt expanded gambling before neighboring states beat them to it. It won’t “balance the budget”, she admits, but it can ease the money problem. “We need to jump,” Perkins said.

The state’s Gambling Commission met Tuesday to look into the issue.

November 20, 2009

Bright Prospects For Slot Machine Makers

Slot machine manufacturers may be the ones to benefit from the current efforts of state and local governments to hugely expand gambling opportunities for their residents. Almost always, the reasons for the expansion of gambling in a state are economic, such as job creation and revenue generation to close the budget gaps. For the next few years, sales of slot machines could skyrocket due to the demand for the units in Illinois, at New York racetracks, at casinos in Pennsylvania and in other new areas throughout the world. And as the economy recovers, many casino operators are optimistic that the gambling industry will pick up and be restored to its former vigor.

At the Global Gaming Expo trade show this week, gambling device companies including forerunner International Game Technology (IGT), WMS Industries Inc. (WMS), Australia-based Aristocratic Leisure Ltd (ALL.AU) and Bally Technologies Inc. (BYI) were very generous and showy with their exhibitions and product launches.

The gambling operators who are out shopping for slot machines can choose from an ample and dazzling selection of machines. The old style mechanical reel slots which are still being used in some casinos are slowly being replaced with video machines equipped with mind-boggling sounds and graphics. The slot machines with the usual two or three-coin highest bet will soon become outdated and the newest craze will have pay lines moving in all directions across five or six reels.The new machines also allow players to put a number of bets on one spin, and players can now win not just horizontally, but also up, down, diagonally and even randomly. Manufacturers have also changed the themes from the customary and familiar cherries and diamonds to the latest and well-known TV shows complete with the show’s theme music and the actors’ faces on the reels.

Most operators though, have not replaced their old machines, but manufacturers are confident that in time, players will start to get bored with the old games, and the operators would soon end up buying new ones. "The new jurisdictions are helping to compensate for the slowdown in the replacement cycle," said Joe Weinert, vice-president of Spectrum Gaming, an industry consultancy. "A lot of existing operators are holding on to their machines for longer than they otherwise would have because replacing them just isn't in the budget right now. And most of the time, there is no pressing reason to change out a game."

Penn National Gaming Inc. is the only company that did not reduce its expenses on assets amid the economic recession, according to its Chief Executive Peter Carlino, because he said doing so would only mean “you have to spend more later.” He added, “our slot buyers are meeting with suppliers and prepping their orders for 2010.”

November 19, 2009

Loto-Quebec Plans To Offer Online Poker

Loto-Quebec has offered the Quebec government a proposal to partner with British Columbia and the four Atlantic provinces for an Internet gaming project. The corporation is planning to launch next summer an online poker Web site that is safe and regulated by the government. Alain Cousineau, president and chief executive officer of Loto-Quebec says the site would be responsibly supervised and would be a better option to the illegal gaming sites which are practically foreign, all 2,000 of them open and accessible to residents of Quebec and are frequented by a large number of online players.

Cousineau said unsupervised online gaming, such as having no system by which to confirm and authenticate the gambler’s age, and having no restrictions for those with gambling problems "has negative consequences for players and the general population. All the efforts we've made in the last 15 years (to control gaming) risk being obliterated by this diffuse, almost underground network that operates completely without supervision or controls.” Cousineau did not specifically name it, but he was clearly alluding to the Kahnawake Gaming Commission, the governing body regulating online gaming in the Mohawk reservation of Kahnawake.

The commission’s chairman Dean Montour seemed to welcome the proposal. “The fact that Quebec is now entering the online gaming business in partnership with the Atlantic provinces and British Columbia is an indication that the industry is thriving and is gaining wider acceptance," Montour said. "For over 10 years, the Kahnawake Gaming Commission has had a positive working relationship with online gaming regulators throughout the world and looks forward to sharing its knowledge and experience with the Régie des alcools des courses et des jeux."

Cousineau told the Board of Trade of Metropolitan Montreal in his speech yesterday that online gambling is now a global trend and “probably irreversible.” He said Canadians spent around $675 million on online bets in 2008 and the amount is seen to climb to $1 billion in 2012. Given that, Cousineau said it would be for the benefit of the people of Quebec if the provincial gaming corporation managed a portion of that amount. He informed that the gaming corporations of some countries like Norway, Sweden and Finland have already regulated Internet gambling in their part of the world.

In the last fiscal year, profits raised by Loto-Quebec for the government was $1.4 billion on revenue of $3.9 billion. Growing global competition, however, has caused the market to slow down the past ten years, Cousineau disclosed. There was as yet no reply from the Quebec government regarding the Loto-Quebec proposal.

November 18, 2009

SA Government Asked To Implement Interactive Gambling Regulations

Gambling operators in South Africa have appealed to the government to speed up the implementation of interactive gambling regulations. They say that further delays in legislation are causing them to miss the chance to benefit from the growing industry. In the latest public hearings on gambling regulations organized by the Parliament and the Department of Trade and Industry, the director of business development and compliance for Phumelela Gaming and Leisure, Mpho Ramafalo, who was one of the speakers, asked the government to promptly set up regulations for interactive gambling. “South Africans are already patronizing available interactive gambling sites elsewhere and local operators are lagging behind,” says Ramafalo.

A bill that was passed in May 2008 called the National Gambling Amendment Bill provided for Interactive gambling in South Africa. It was drafted following the earlier National Gambling Act which did not allow Interactive gambling and after the government had decided to form stricter regulations on interactive gambling and lessen control on offshore operations. In February, the interactive gambling regulations were published for public information and reaction, and in August, the Parliamentary Portfolio Committee on Trade and Industry asked to delay the implementation of the regulations as the committee deemed it necessary to have another look at the legislation.

The gambling operators are objecting to the lopsided implementation of the present regulations in the different provinces, which does not give importance to business concerns, the plans to propose a stricter system for interactive gambling and the delay in licensing and regulation. In addition, Ramafalo said the registration procedures required by the proposed regulations were “lengthy and onerous” which could turn off prospective players registering on local Web sites.

“As payouts within the industry are limited, the amounts of money laundering incidences were found to be negligible – but there should be multiple monitoring systems,” says Lazelle Parton, corporate affairs manager for Thuo Gaming SA. She adds that the National Gambling Board should make the certification and licensing of operators and equipment compulsory and that the employees of the Financial Intelligence Centre Act should be required to check the equipment and report any irregularities.

Only 10 interactive gambling licenses will be issued by the National Gambling Board on a national level. The operator applying for a license will have to establish a local entity, and all banking transactions of his business will have to be done within South Africa.

November 17, 2009

Opponents Of Racinos Rush To Submit Signatures Before Deadline

When Gov. Ted Strickland’s proposal to authorize slot machines at Ohio’s seven racetracks was delayed by the Ohio Supreme Court’s ruling that the question should be subject to referendum, the Supreme Court had ruled in favor of a conservative group’s request to place the issue before voters in Nov., 2010. The group, calling itself LetOhioVote.org is composed of business organizations and groups opposed to gambling and has led the fight against racinos. The governor’s proposal would have allowed around 2,500 slot machines at all the seven racetracks and was estimated to raise $933 million as tax revenue for the first two years.

Now, the group is working to collect valid signatures of registered voters that must be submitted before the deadline on Dec. 18 in order for voters to decide next November on the question whether to allow slot machines at racetracks. The group, having prepared the petitions, is now recruiting volunteers and has hired a qualified firm, Arno Political Consultants of Carlsbad, Calif., to gather signatures. The required number of signatures is 241,465, and the group is optimistic that it can submit even up to 500,000. “Our effort is fully under way,"LetOhioVote.org spokesman LoParo said, but not disclosing the number of signatures already collected.

Racetrack owners want expanded gambling at their tracks. They claim that their business is dying because of low attendance and even lower wagering, and the slots could attract enough customers to keep their business going. If the group’s petition drive is unsuccessful, the tracks would get their slots, but they would be facing solid competition from the casinos once those facilities are in full operation in 2012. Last Nov. 3, voters in Ohio authorized casinos in the four major cities of Cincinnati, Cleveland, Columbus and Toledo, and analysts predict that these four locations would be the focal point of all gambling activity. The future casinos, having better locations and offering a wide variety of games, will have an edge over the racinos. Plus, they pay lower taxes.

Spokeswoman for the governor, Amanda Wurst, said Strickland is still planning to file a court case seeking a court’s approval for his proposal. But even if a court grants him that permission, analysts doubt if all seven racetracks would apply for a slots license. On the other hand, Rep. Lou Blessing, R-Colerain Township, and some legislators, are thinking of proposing some changes to the casino issue recently approved by voters. They plan to put a measure on the May ballot increasing the approved 33 percent casino tax to 50 or 60 percent of revenues. But other legislators are having second thoughts about changing a recently passed proposal.

Meanwhile, in Kentucky, after Ohio’s approval of casinos, some legislators are proposing to revive the legislation on installing slots at their racetracks. The bill was disapproved in a Senate committee this summer after the Kentucky House passed a measure to put the issue to referendum.

November 16, 2009

Too Many Casinos In Iowa Worry Gaming Commissioners

II the state of Iowa, four communities are applying for new gambling licenses for casinos planned to be put up in Ottumwa, Tama County, Lyon County and Ford Dodge. This move has caused the five members of the Iowa Racing and Gaming Commission to be concerned over the superfluity of casinos in the state which could result in new casinos taking away customers and earnings from existing ones.

Iowa’s casinos that are currently in operation have almost 10,000 employees, and for the fiscal year ending June 30 have had 23 million patrons and have generated $1.4 billion in revenue. In October, overall casino revenue dropped 2.3 percent to $117 million from the same month last year owing to the economic recession.

A study on Iowa’s gambling markets, done by the Innovation Group of Littleton, Colo., and backed by the state of Iowa, has calculated that a casino in Ottumwa would take approximately $22.2 million from currently present casinos, with Terrible’s Lakeside Casino in Osceola getting the hardest blow from losing about 15 percent of its annual revenue. A casino in Tama County would take about $16.2 million, particularly from Meskwaki casino; a casino in Lyon County, $6.5 million and in Fort Dodge, $14.6 million, possibly from Emmetsburg’s Wild Rose casino.

During interviews, the five commission members said they’re worried about the damage that could be done on existing casinos if new gambling licenses are granted. "I am open-minded to everybody," Chairman Greg Seyfer said. "They are all on equal footing right now.” He assured that they are not disqualifying any community asking for a license, and that they are going to regard each application completely. "No, I don't think it's likely that I am going to vote for four licenses," commission member Kate Cutler said. "We have done well so far in licenses that we have granted previously. We want to make sure that we don't do anything that negatively impacts what has been so positive the past few years."

Commissioner Toni Urban is worried that there might not be enough gambling money for an excessive number of casinos. "We want to be fair to every community, but we also want to be certain that we are not putting another casino out of business," Urban said. "The way the licenses have been granted, it really hasn't been a free market from the beginning. It is a process of granting licenses," Commissioner Paul Hayes said, disagreeing with the free-market approach being advocated by those critical of the commission’s licensing process.

Commissioner Andrea Rivera Harrison believes that good business competition makes businesses try hard to improve.” But I also have the concern with cannibalization of job losses," she said, "and I am never a proponent of that and what it does to a community."

The commission received the applications for licenses from the four communities last week and will have until May next year to decide on the granting of new licenses.

November 15, 2009

Slot-like Sweepstakes Machines at Ohio Racetracks

A horse-racing track in Central Ohio has installed 30 Sweepstakes games that resemble slot machines. Beulah Park’s latest move is quite risky in view of the fact that Ohio state law prohibits slot machines and other casino style gambling. Only the state lottery and some charitable games are permitted by the state. But Beulah Park management insisted that this is a Sweepstakes game, and the horse-racing track is willing to bet on it as the horse racing industry is taking a turn for the worse. Just two days ago, Ohio voters approved casinos in the state’s four major cities, and racetrack owners are saying the casinos would bleed their business dry. The four casinos are expected to be operational by 2012.

Ohio’s seven racetracks are struggling. Their recent bid for video slots was turned down by the Supreme Court. They face stiff competition from neighboring states that are building racinos, and wagering and attendance in their racetracks are sharply declining. Kurt Gearhiser, attorney for Inhouse Promotions, the games’ distributor in Ohio, said that he sees the games spreading rapidly throughout the state. . "It's a great product for them," he said. "I believe there will be exponential growth." He added that around 100 of these Sweepstakes games are installed in bowling alleys, parlors and Beulah Park.

Prepaid phone-Internet cards are purchased by players which are then swiped in a reader attached to a computer in a console just like in a video slot machine, with winnings credited back to the card. There are 21 games that a bettor can pick from, all of which are determined by chance and use names like Lucky Diamonds, Slots & Stripes and Scorchin’ Sevens. Games of skill are banned in Ohio. The maximum payout is $400 and the winnings can be redeemed for cash.

The machines look and sound like slot machines, but Charles Ruma, owner of Beulah Park, says they’re not. "You're playing, basically, for almost pennies. It's almost like a penny slot machine, if you have to equate it to something, but it's not a slot machine at all. They're just computers."

The other racetracks are waiting to see if the machines pass legal inspection and make profit, Ruma said. But customers’ response to the machines during lunchtime Tuesday at Beulah Park has contradicted the confidence of some as the machines were not frequented by patrons and there were minor technical malfunctions. The spokeswoman for Gov. Ted Strickland said the governor has not looked thoroughly into the machines. The governor has proposed lottery-run slot machines at the tracks last summer.

The office of Attorney General Richard Cordray has not given any comment on the legality of the machines.

November 14, 2009

Online Casino

November 13, 2009

Churchill Downs To Acquire Youbet

Youbet, the horse betting Web site will be acquired by Churchill Downs Inc., in a transaction valued at $126.8 million. Churchill Downs Inc. is the holding company for Churchill Downs Management Co., which owns the horse racing track where the famous Kentucky Derby is held. The company which is based in Louisville, Kentucky, said the deal is a sign that the company recognizes that there is a rising trend in the direction of online betting.

The acquisition would offer Youbet shareholders 0.059.8 shares of Churchill Downs common stock plus 97 cents per share in cash for each share of Youbet stock owned. At the close of the deal, Youbet shareholders will own about 16 percent of Churchill Downs stock. Shares of Youbet closed Wednesday at $2.41, up 8.6 percent, while shares of Churchill Downs closed at $31.57, up 1.2 percent.

Churchill Downs’ Chief Executive Bob Evans said less than 14 percent of betting on US thoroughbred racing is done online and the company will be concentrating on the expansion of its online horse-wagering. "This is about capturing the opportunity to take horse racing [wagers] in the U.S. and possibly on a broader geographic scale online," Mr. Evans stated. "We think it's going to grow substantially in coming years," he added, noting that the merger will give them the funding needed to promote the growth.

The deal is expected to give Churchill Downs an annual savings of up to $10 million as a result of a combined effort between the two companies.
Youbet.com is an online horse-race betting and handicapping site which is based in Burbank, California that offers gamblers more than 180 international tracks to bet on. Youbet.com’s stock rose more than 180 percent since the start of the year after supporters of regulated online gaming got some toehold and became hopeful of the US government’s legalization of some form of Internet gambling.Youbet.com is deemed as the company that is most prepared to profit from that eventuality because it has the technology needed for the business.

The agreement was announced as Youbet reported a 4 percent decline to $22.5 million in its third quarter earnings. The deal was unanimously approved by the boards of directors of the two companies, but is awaiting approval from Youbet shareholders and regulators. The sale will most likely be concluded in the first half of next year.

November 12, 2009

Nevada casinos see 9 percent drop in casino win in September

The state of Nevada is still feeling the impact of the economic disaster that hit the world. It has been rough for the state, whose economy largely relies on tourism through its world-renowned gambling facilities, when gamblers, leisure travelers and businessmen are putting a restraint on their spending. The Nevada Gaming Control Board reported $911 million as winnings from gamblers for the month of September, or a 9 percent drop in casino wins compared with the same month a year ago. The decline in casino wins has been experienced by casinos throughout the state for the past 21 consecutive months.

Taxes collected for September amounted to $54.3 million, or a drop of 14.6 percent from the same month in 2008. For the fiscal year beginning July 1, casino wins dropped 10.3 percent. For the month of September, bets placed by gamblers on table games and slot machines totaled $11.6 billion, a decrease of 4.2 percent from same period a year ago. Around 30 percent of the state’s general fund comes from taxes on casino wins.

Although this is not all good news, information from gambling regulators revealed that casino wins throughout the state went beyond $900 million for September, the first time since March. Another positive sign is the declines in September that have remained in single digits for the second month since August. Double-digit drops have been recorded since May, said control board analyst Frank Streshley. In Las Vegas, casino wins totaled $506.4 million or a decline of 3.6 percent. This is the lowest decline since June 2008. Approximately half of the state’s gambling revenue comes from the Strip.

In Nevada’s population and tourism center, Clark County, casino wins fell 9.3 percent or $774 million from $853.5 million from last year, same period. In Washoe County which includes Reno, casino win was $72.1 million or an almost 6.4 percent drop. Down Lake Tahoe’s south shore, a 10.8 percent drop was seen, in Elko County, 7 percent; 3.9 percent in Carson Valley and 15 percent in Churchill County.

The Floyd Mayweather-Juan Manuel Marquez boxing bout at the MGM last Sept 19 drew high-stakes gamblers to the baccarat table. As a result, revenue from baccarat upped 29.2 percent from the same month last year, or a total of $99 million. If not for that, statewide casino wins would have seen a double-digit drop of 12.2 percent in September.

The long Labor Day weekend which all fell on the month of September, unlike last year when the first two days fell on August, also helped reduce September’s decline.

November 11, 2009

Possibly Another Casino Proposal For Maine Voters Next Year

Maine voters could vote on another casino issue in November 2010 after a group of western Maine investors claims it has gathered almost 100,000 signatures, a lot more than the required number to put the proposal to a statewide vote. The office of the Secretary of State needs more than 55,000 certified signatures in order for Mainers to vote on the issue.

Black Bear Entertainment, the group that plans to build a gambling resort in the town of Oxford, through its spokesman Peter Martin said the signatures are proof that the residents have shown their support for a gambling complex because it would mean more jobs for them and more revenue for the state. “It took us 20 days to collect 99,000 signatures, give or take a few either side of that; as far as I know, that could be record for the state of Maine on a ballot issue," says Peter Martin of Black Bear Entertainment.

Last year, voters rejected a ballot question for a casino in Oxford County. This time Martin says Black Bear is confident that its proposal would be more acceptable to the voters because it has better features. He also said the Oxford casino would have a considerable distance from Bangor where Hollywood Slots is located so as not to draw away its patrons. Hollywood Slots is the only gambling establishment in Maine that is approved by voters.

"Our bill calls for a limit on slot machines of 1,500, where there were no limits on the past referendum; it does not call for the gambling age to be reduced, that stays the same; and it will have the full array of table games, from blackjack to poker, what you would expect in a full casino, but much smaller -- this isn't Foxwoods," Martin said. Martin pointed out that those who towns who were once against gambling are now reconsidering their position, and this change in attitude, he believes is brought about by these hard times.

“Towns like Freeport, Yarmouth, Cumberland, Kennebunk, these affluent areas along the coast that in the past haven't been that supportive of casino measures," he says. "But it just goes to show you this great recession that we're having, even Maine's most affluent communities are feeling it, and they are understanding that this state had better start turning the tide and providing jobs." But gambling opponents are of the opinion that casinos are not the solution for attaining economic growth. Dennis Bailey of the group Casinos No! says the Oxford casino will never keep its word on job creation and criticized the casino’s supporters of paying workers $170,000 to collect the signatures.

Black Bear will submit the signature petitions to the office of the Secretary of State next month after they have been verified by city and town officials, and for the fourth time in seven years, Maine voters may once again be presented with another casino question next year.

November 10, 2009

Sands China Plans To Raise Up to $3.4 Billion In HK IPO

Sands China Ltd., the Macau unit of Las Vegas Sands Corp. is planning to list in Hong Kong, and the initial public offering, if successful, could raise as much as HK$26 billion ($3.4 billion), people having knowledge of the situation said. Sands China will sell 1.87 billion shares, priced between HK$10.38 and HK$13.88 per share according to information from the people who refused to be identified. The sale assesses Sands China at as much as HK$111 billion or 16.6 times its forecast 2010 earnings.

Las Vegas Sands spokesman Ron Reese did not comment on the IPO pricing. Listing on the Hong Kong stock exchange is scheduled for Nov. 30, the source said. BNP Paribas SA, Barclays Plc, Citigroup Inc., Goldman Sachs Group Inc. and UBS AG will organize the offering. “There are so many IPOs coming up, and we don’t know how long loan growth in China can last,” Gabriel Chan, an analyst at Credit Suisse Group AG in Hong Kong, said. “It’s better to do it now than later.”

Sands China’s initial public offering will probably be the second biggest this year in Hong Kong, next to that of China Minsheng Banking Corp., which aims to raise HK$31.54 billion. Proceeds from Sands China’s IPO will be used to resume works on a 13.3 million square foot resort in Macau. Construction on the two phases known as parcels 5 and 6 was halted as Sheldon Adelson’s giant company Las Vegas Sands suffered a decline in income in the US due to a sluggish economy. “The problem is they don’t have enough funding to complete parcels 5 and 6 and they still have to raise funds after the IPO,” Chan said.

Sands China said in its draft IPO prospectus that the company plans to use a portion of the IPO sale plus “supplemental financing” it is asking from a group of lenders to restart construction on parcels 5 and 6. “Capitalized construction costs” on the two parcels amounted to $1.7 billion as of June 30 and completion costs are estimated at $2.2 billion.

The uncompleted sites of parcels 5 and 6 are beside City of Dreams of Melco Crown Entertainment and across the street from the world’s biggest casino, Sands’ Venetian Macao. The two parcels contain 670 gambling tables, 2,200 slot machines and 6,000 hotel rooms from world famous hotel brands like the Shangri-la, Traders and Sheraton and St. Regis.

As arrivals from mainland China increase due to the easing of travel permits, and as government relaxes its restrictions causing lending in China to balloon to $1.27 trillion this year, casino revenue in Macau is expected to hit a record this year. Revenue climbed 22 percent in the third quarter from the same period last year and according to an analyst, gambling revenue may grow 10 percent next year.

November 9, 2009

Video Gambling Opponents Facing Setback

When Gov. Pat Quinn signed this summer the legislation allowing video gambling machines in any establishment with a liquor license including truck stops and fraternal clubs, video gambling foes, despite feeling defeated, still clung to the possibility that the Illinois Gaming Board would not be able to present the new gambling machines to the public because of lack of funds. But it looks as if that hope is lost after lawmakers last week endorsed millions of dollars that would be used to pay additional workforce that would formulate the rules and evaluate numerous permits.

The sum of $8 million will be earmarked for the gambling regulators whose objective is to have the new machines operational by the end of 2010. No less than $2.5 million of that will be used to gradually launch the machines. Gambling regulators will discuss today and devise a draft of the rules on how to conduct the launching. The General Assembly approved the measure easily and without much resistance from the lawmakers. All the suburban lawmakers who voted against it were Republicans.

Although Gov. Pat Quinn by and large supports video gambling expansion, there was still no word on whether he will give his written authorization to approve the measure, as it will still be “closely reviewed”, his spokesman Bob Reed said Thursday. The Illinois Gaming Board will also have a hearing today regarding the rules that would govern the regulation of thousands of video poker machines in a way that would effectively keep corruption out and ensure security for gambling addicts.

The video gambling critics, though, are not giving up. They are determined to carry on their effort of putting a stop to this huge expansion and exposing its ill effects. "We are going to speak out about our concerns," said Anita Bedell, director of the group Illinois Church Action on Alcohol and Addiction Problems. "We are going to continue to do what we have been doing."

Part of their activities involves persuading counties and some areas to ban the gambling machines within their control, and to date, a number of places have heeded their call, like the communities of Bloomingdale, Buffalo Grove, East Dundee, Elburn, Elmhurst, Itasca, Kildeer, Libertyville, Naperville, Mettawa, Rosemont, Villa Park and Wheaton. In the unincorporated areas, Cook, Dupage and Lake have done likewise.

But the critics’ voice seem muted in contrast to the legislation’s loud promise of jobs through the repair and building of roads, transits, schools and other construction projects, funding of which are to be taken from the estimated $400 million state’s share of video gambling revenue.

November 8, 2009

Two Gambling Companies Keen On Getting A Share Of Ohio Gambling Market

Two companies, MTR Gaming Group Inc. and Lakes Entertainment Inc. have vested interests in the gambling activities in the state of Ohio. MTR Gaming which operates Scioto Downs in southern Franklin County in Ohio said it will continue its bid to install slot machines there even after the passage of Issue 3. The four casinos that will soon be built in Ohio by MTR Gaming’s competitors will surely step up competition for the company, but it may also eventually prove advantageous to its campaign to install slots at Scioto Downs, the company said.

“We are considering several different alternatives in order to proactively prepare for the new competition,” MTR Gaming CEO Robert Griffin said. “Although this may appear to be a negative, we believe that it may result in slots at tracks, as (Gov. Ted Strickland) has proposed, with better economic terms than were originally discussed. To that end, we are working diligently to have this initiative reintroduced in the state.”

Gov. Strickland has proposed to install video slot machines at the seven racetracks in Ohio, including Scioto Downs and Beulah Park in Grove City, but the proposal was put on hold when the Ohio Supreme Court ruled that the plan should be submitted to Ohio voters in a statewide referendum next November. The tax revenue and license fees from those slots would have been used to help fund the state’s budget deficit.

Besides Scioto Downs, MTR Gaming also owns Mountaineer Casino, Racetrack & Resort in Chester, W.Va., and Presque Isle Downs & Casino in Erie, Pa. The company helped finance TruthPac, the group that led the anti-casino movement in Ohio. In the case of Lakes Entertainment, the company said that it has an option to take a 10 percent ownership share in the casinos that will be built by Penn National Gaming Inc. in Columbus and Toledo and Rock Ohio Ventures LLC in Cleveland and Cincinnati because it helped fund 10 percent of the campaign costs for Issue 3 and agreed to finance 10 percent of the cost to build the four casinos.

“We are pleased that the voters of Ohio approved the casino plan which is expected to bring thousands of jobs and millions of dollars to the state of Ohio,” said Tim Cope, president of Lakes Entertainment, in a release. “There is still much work to do before these casinos become a reality, but we believe this investment will add value to our company which will benefit our shareholders for many years to come.”

November 7, 2009

State Officials Have Conflicting Opinions On Bingo Issue

Gov. Bob Riley has always been against electronic bingo machines and he has been carrying on the fight to stop electronic bingo operations in Alabama. His contention is that the electronic bingo machines are in actual fact slot machines which are illegal under Alabama state law. “Those who support this proposal use the excuse: ‘Well, gambling is here, so we ought to tax it,’” Riley said in his press release early in January. “I say: Illegal gambling shouldn’t be here. Rather than legalize it, we should rid Alabama of illegal gambling.”

On the other hand, Alabama Attorney General Troy King released a report in 2004 based on the result of his gambling review that showed cases where bingo could be played on machines legally. His 2004 statement claims that in those counties where bingo is legal, playing it on machines is the same as playing it on paper. “It cannot be concluded, as some have, that just because the game is being played on video consoles, it is not ‘bingo,’” King said in the 2004 release. “Just as no one would contend that e-mails are any less a form of correspondence than are letters written with a quill pen, but instead represent a technological evolution in correspondence, similarly, bingo games that are depicted on a video console can still be bingo — albeit a technologically advanced form of bingo — but bingo nonetheless.”

In late October, circuit court judges in Jefferson and Walker counties ordered to cease operations and activities of all electronic bingo machines, which Riley considered to be some form of victory for his campaign against illegal gambling. The order from Walker County Circuit Judge Robert Vance said the games that were being played on the machines were not bingo, and Jefferson County Circuit Judge said in his order that the machines were categorized as slot machines “in every way that matters.”

“The message sent today is crystal clear,” Riley said in his news releases after the circuit courts issued the orders.. “This is not bingo. These are slot machines, plain and simple.” David Lanoue, chairman of the University of Alabama political science department said that the complexity of the bingo issue is what caused the two leaders to have differing opinions. He said the argument seemed to arise from the fact that Riley has a much more limited view on gambling than King has. Also, Riley sees gambling from a moral perspective, while King views it from a legal angle.

Lanoue added that there are others who take an economic position on the issue, like those who believe that the residents of Alabama should keep their money in the state instead of losing it to gambling in neighboring states.

It is when these three conflicting viewpoints run into each other that makes the issue difficult and complicated.

November 6, 2009

Hollywood Slots Requests Permit For New Type Of Slot Machines; Gambling Board To Decide Next Month

Hollywood Slots in Bangor, Maine wants to add a new kind of slot machine to their racino. The new machines are tagged “hosted” slot machines because instead of players inserting money into the slots, an employee of the racino, as the “host” does it for them. But the machines are still automated. Up to five players can play one machine at one time, but they would not be playing against each other, but against the machine. Although the machines are automated, playing the machines seems to give the feeling or experience of playing at table games.

Since Hollywood Slots opened in Bangor in 2005, many have been speculating that the racino would eventually add traditional table games to their facility. But such action would require approval from Legislature and Gov. John Baldacci has made past pronouncements that he would veto any bill on any form of gambling expansion. The Gambling Control Board had long-winded discussions on the matter after Bob Welch, the board’s executive director brought the Hollywood Slots’ request to the board Wednesday.

Some Board members said that the new machine conforms to the technical definition of slot machine under state law, which is rather broad. “It seems to me that nowhere in the statute does it demand the player has to put money in the machine,” board Chairman George McHale said. “I don’t see any grounds to deny the request.” But other members had a different point of view. “To me it’s a card game,” board member Peter Danton said. He added that he wants the Legislature’s Legal and Veterans Affairs Committee to make a ruling to clarify whether the new machine would fall under the category of table games or just a slot machine in its latest version. “I agree [with Danton] that we need to have this clarified,” Board Member Richard Arnold said.

But another Board Member, Cushing Samp, did not like the idea, saying it’s the job of the Gaming Control Board to make judgment of this sort and it would not look good for the Board if they turned this over to the Legislature. “I don’t want to go back to the Legislature and say we don’t know how to do our job. It sets a bad precedent,” she said. Welch said that if the Board approved Hollywood Slots’ request, the racino would probably add two machines at most for testing. The slots machines currently number around 1,000.

The Board decided that it needs more facts and details before it can make an appropriate ruling on the request. For that reason, the Board agreed to discuss the matter again and make a ruling in December.

November 5, 2009

Ohio Voters Approve Gambling and Casinos, Pass Issue 3

Issue 3, the constitutional amendment that would allow putting up of four casinos, one in each of the cities of Cleveland, Columbus, Cincinnati and Toledo was approved Tuesday by Ohio voters with 53 percent of the vote, and mostly coming from Northeast and Southwest Ohio. In the past twenty years, Ohio voters have turned down four gambling proposals. Now, the state of Ohio will soon be in the list of states that have casinos offering slot machines, table games and live entertainment.

The Issue 3 campaign has advertised the proposal as a tourism attraction, an economic incentive for Ohio and a guarantee for thousands of jobs. Under the proposal, the casinos will give the state a 33 percent tax from casino revenues after payouts to gamblers. According to a report from the Department of Taxation, the state of Ohio could get around $648 million in taxes in the first year of operation of all four casinos.

Cleveland Cavaliers majority owner Dan Gilbert has vowed to start the construction of the $600 million casino in Cleveland in the second half of next year. He and Penn National Gaming of Pennsylvania are the financial backers of Issue 3. He said the Cleveland casino will not be a closed and isolated compound, but one that would be open and easily accessible to the downtown area. "We're going to deliver something very special," said Gilbert. "The fifth time is the charm," Tim Wilmot, president of Penn National was quoted as saying, referring to the past four rejections of gambling proposals in the state. "It's been a great, great partnership, and we look forward to building four world-class facilities in Ohio."

The license fee for each casino location is $50 million, a meager sum if compared to what the other states charge their casinos. The opponents of Issue 3 were not at all pleased with the passage of the proposal. "We'll probably have to put another constitutional amendment on in May to correct some things to make it more fair for the people of Ohio," said state Rep. Louis Blessing, a Cincinnati Republican and co-chair of TruthPAC. He said his amendment would call for an increase in the tax rate on casino revenues, clear the issue of taxing cash betting, authorize official background checks on potential casino operators and bid out licenses for casinos.

But Issue 3 got a surprising and unexpected endorsement from some groups who were known to be longtime opponents and critics of casinos. The Ohio Fraternal Order of Police reversed their stand and became wholehearted backers of the proposal. The labor union of blue-collar workers also showed their full support.

The people of Ohio have shown their full backing and support for Issue 3; they are, in turn, hoping that the proposal’s promises would be kept.

November 4, 2009

Legislators May Push For Gambling Expansion To Compete With Seminole Casinos

There have been indications that the Republican legislators are toning down on their opposition to gambling expansion. After meeting Monday for the first time since Gov. Charlie Crist changed the Seminole casino deal proposed by the Republican-led Legislature, the House Committee on Seminole gambling virtually declared the Seminole gambling deal dead. Contrasting and evaluating the two deals, the legislators found the governor’s proposal limiting casinos to tribal lands to be unfavorable mostly because it prohibits gambling expansion at pari-mutuel facilities.

"It certainly would be an easier vote [for legislators] than it was in the past," said Rep. Bill Galvano, R-Bradenton, on the chance that Crist's deal wouldn't pass. "Are we at a point here we have to look elsewhere ? The answer is yes." The legislators disclosed that they are discussing the likelihood of asking voters if they want to allow expanded gambling that would compete with the Seminole casinos. Legislators from both parties agree that voters should be given the choice whether to authorize expanded gambling in the state constitution in a statewide vote. The different communities would then hold referendums on blackjack and other table games like roulette and craps which are still illegal under state law.

Taking on casino gambling "will change the future of Florida, so the residents of Florida should have a vote," said Rep. Joseph Abruzzo, D-Wellington. Rep. Ellyn Bogdanoff, R- Fort Lauderdale, said if the legislators confirmed the Seminole gambling deal, "they are going to become a destination location and we're going to be left out of the revenue stream." She, together with some legislators suggested another course of action, which is to allow casino games in counties that want them.

"As anti-gaming as I was, it's here, and it's not going away," Bogdanoff said. "You go to Plan B, which is free market."

Rep. Alan Hays, R-Umatilla, proposed that the state make a contract with private operators to run casinos, just like how the state runs the $4 billion-a-year Lottery. The state would then be able to keep a larger share of casino profits. "We can compete head on with the tribe," he said. "We need to say absolutely no to this compact ; period."

Another idea also came up, which was to allow table games at pari-mutuels and other gambling sites in order to compete with the tribe’s Hard Rock casinos in Tampa and Hollywood. Bogdanoff observed that the state could draw conferences and conventions to casino-hotels because a “lot of America likes to gamble."It's not about how do we limit gaming, it's how do we harness it to make it a part of the economy of this state in a tasteful way," she said.
Florida's gambling industry generates $7 billion annually, which includes revenues from the Lottery, 27 pari-mutuel facilities and eight tribal casinos.

November 3, 2009

E-gambling Thrives In The Isle Of Man

The Isle of Man is an island in the Irish Sea, between Great Britain and Ireland. It is a British Crown dependency, but it has its own rules and tax laws. It has a population of about 81,000. The small island has become a center for offshore online gambling after the Isle of Man government passed legislation in 2001 specially intended to promote the gambling and e-gambling business and to provide full protection to customers. After several changes in recent years, strict and efficient regulations have been set which are more flexible to the needs of the gambling industry.

Garth Kimber from the island’s Department of Trade and Industry said, “Legislative change is important because it is a fast-moving industry. We want to avoid regulations that exclude new games. ”The government has also attracted e-gambling companies because of its low taxes, excellent infrastructure and support services of expert accountants and lawyers.

The island has two undersea broadband communication cables and in the past three years four data centers have cost 30 million pounds sterling in investment. “What e-gaming has done is brought substantial investment in infrastructure that no jurisdiction this size in the world has. Not only do we have the financial and professional community, there is that crucial infrastructure they need,” said Chris Corlett, chief executive of the Department of Trade and Industry.

The government charges zero corporation tax and a betting tax of only 1.5 percent of gross profits, compared to 15 percent in the United Kingdom. Corlett said, “e-gaming has had continual growth. Many organizations are seeing growth of 30 per cent plus annually as well as investment from Asia.” To date, 20 companies have been issued licenses by the island’s Gambling Supervision Commission and 18 more are going through the process.

The e-gambling business has generated 500 jobs in five years, at an average salary of 52,000 pounds sterling with the labor force numbering 42,000. Garth Kimber said: “We should create 160 more jobs this year and generate more than £6m in license fees and duties.” Mr. Kimber says that in order to obtain an e-gaming license from the gambling commission, a company must set up an entity on the island, hire local directors and all banking transactions must be done on the island. The license application fee costs 1,000 pounds sterling and the annual license fee for a betting site is 35,000 pounds sterling.

“We have concentrated on attracting reputable companies. Playtech, SBOBet, 888Bet, these are very much the premiership of gaming. They enhance the Isle of Man’s reputation,” Mr. Corlett says.

The Isle of Man is included in the Organization for Economic Co-operation and Development white list of tax havens that co-operate with international investigations.

November 2, 2009

India To Regulate Online Gambling

Online gambling companies are scrambling to be the first to obtain gambling licenses in India after it was reported that India will offer licenses to gambling brands as it is now poised to regulate Internet gambling.

Top gambling companies such as Betfair and William Hill are preparing to acquire gambling licenses. Bwin, though still unconfirmed, is also reported to be interested in getting a license. These are among some of the gambling operators who are willing to be the first ones to tap India’s new and untried online gambling market.

India’s huge and growing population of 1.2 billion offers a lot of promise for Internet gambling in the country. Although not all parts of the nation have knowledge of the Internet, particularly the rural areas, the Internet has stretched to a wider scope in the richer sections of India.

Information has it that only three licenses will be given out, but not less than thirteen gambling companies are competing for the licenses. The Province of Sikkim will be the first region in India that will offer online gambling licenses. After a company has been established to have obtained a license, it will be qualified to make online gambling services available throughout India.

Under Indian law, new business ventures within the nation should be partnered with a local and India-based corporation. Therefore, Betfair is believed to be linked with Agilisys Managed Services and William Hill with Global Torrent International.

Some companies who are interested in getting a license however, are taking a wait-and see approach, letting the other companies take the lead and test the waters before they venture into something untried like India’s online gambling market and India’s government policies. Many companies have questions regarding the permits and rules that would control the operation of their sites, and as long as these questions remain unanswered, they remain reluctant to be part of India’s gambling industry.

There is also the matter of the effect of Internet gambling on India’s society, and some concerns over whether the benefits to the general public would outweigh the dangers.

For most companies, there are a lot of obstructions yet to be straightened before they could reach a final decision. But for those gambling companies who get to be the first ones to obtain licenses to operate online gambling in India, they may have stumbled upon a lucrative idea if indeed the Indian gambling market turns out to be as profitable as some see it to be.

November 1, 2009

Current Video Gambling Profit Cut For Bar Stays But Contract Shortened

The present economic crisis has made public schools in Oregon wanting for funds. A group called Stand for Children which is composed of school advocates has led the fight for a lower rate of compensation on video lottery machine earnings for taverns and bars who are offering those gambling machines. The group has called for the introduction of lower rates over the term of the contracts.

But lottery commissioners say such a proposal could be bad for the bars and taverns as their business is already being hurt by declining lottery sales, the implementation of the smoking ban last January and the economic downturn. Oregon Lottery Director Dale Penn has suggested that bars and taverns keep the existing rates for a six-year contract, but Lottery Commissioner Steven Ungar said the commission has been receiving complaints that the contracts the lottery is giving the bars and taverns are too long. He expressed annoyance over comments from the public that the commission is showing favor and support towards bars and taverns.

"There's been a lot of pressure on the commission to make it far lower," Ungar said in reference to the contracts' duration. "We're not in anybody's pocket," Ungar added. "We're not providing subsidies inappropriately by the decisions we make." Consequently, the Oregon Lottery Commission voted unanimously Friday and agreed to let bars and taverns keep the existing cut of video gambling earnings, but shortened their contracts by one year.

Under the current rate, video lottery retailers get 24 percent of the total earnings from the video lottery machines in their drinking establishments. The average rate will drop if lottery sales will increase and it will also go up if sales will decline. Penn says under the five-year contract, bars and restaurants will still be able to plan for the future and he expects lottery sales will start to recover when the contracts end in 2015.

In 2007-09, the lottery raised $1.4 billion for the state budget, but in the next two years, slower business is expected, or about $1.1 billion. Money from lottery mostly goes to education, parks, and bonds for state projects. Penn claimed that many bars and taverns would close if lottery cut the compensation rates, and if many establishments close, it would harshly affect lottery sales. Since last year, video gambling sales showed a considerable drop of almost one fourth.

Critics like Dana Hepper of Stand for Children say Penn’s claim that total sales would drop because bars and restaurants got lower rates was not properly substantiated. "The lottery could have gone a lot further," said Hepper

October 31, 2009

Regulated internet gambling estimated to bring billions in new revenue

On Thursday Rep. Jim McDermott (D-WA) released analysis from the Joint Committee on Taxation that said regulating Internet gambling would generate nearly $42 billion within ten years. The analysis is based on the provision of a federal license that would allow operators to offer online gambling all over the United States, at the same time abiding by the existing federal ban on sports betting in any form.

The analysis has backed up Rep. Barney Frank (D-MA) and other Internet gambling supporters’ stand that Internet gambling regulations would bring billions to the government that would help pay for health care reforms and other important government spending.

Rep. Barney Frank (D-MA) and Rep. Jim McDermott (D-WA) have introduced bills seeking to regulate online gambling. "This analysis further reinforces the fact that a regulated environment will generate billions in new revenue to offset the costs of health care reform or other vital government programs," said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative. "With the completed analysis, and support for Internet gambling regulation growing daily, it's only a matter of time before Congress acts and begins allocating the billions in new revenue sitting on the table to one program or another."

"We believe this tax revenue analysis will encourage immediate discussions and consideration of pending legislation to regulate Internet gambling," added Waxman. "With everyone acknowledging that attempts to prohibit the activity have failed, this provides even more incentive for Congress to act."

Rep. Barney Franks’ legislation, the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267) would outline rules to allow licensed gambling operators to accept bets from eligible players in the U.S. It provides important consumer protections such as those against
underage and compulsive gambling, fraud and identity theft and money laundering. It also gives each state the right to decide whether to allow online gambling for individuals accessing the Internet within the state and to apply the necessary restrictions on Internet gambling. Furthermore, it ensures the reliability of financial transactions.

House Committee on Financial Services Chairman Frank, who introduced his bill in May, has made known his plan to hold a hearing on his legislation in the months to come. More than 60 co-sponsors have signed onto the bill.

Rep. McDermott’s companion bill, the Internet Gambling Regulation and Tax Enforcement Act (H.R. 2268) seeks to raise revenue by means of ensuring that individual and corporate taxes and license fees on regulated Internet gambling are paid and collected.

At present, millions of Americans bet billions of dollars online without consumer protections and revenue stays uncollected.

October 30, 2009

SD gambling town to offer craps, roulette

Gambling in the historic town of Deadwood in South Dakota has been legalized for two decades. When it began in Deadwood on Nov, 1, 1989, an actor portraying Wild Bill Hickok, along with a woman portraying Calamity Jane fired a revolver into the air. Hickok was shot while playing poker in Deadwood in 1876. Following the voters’ approval to legalize gambling in 1989, the South Dakota Constitution allowed casinos in Deadwood to offer only slot machines and blackjack and poker card games.

Now, casino operators are mulling over the plan of adding roulette and craps to the card games. But any addition or change would have to be presented to voters throughout the state for approval. The casino operators, however, are still not prepared to ask the Legislature to put the proposal on the general election ballot for statewide permission, although they are very much conscious of competition from neighboring states, particularly casinos in Colorado that were allowed roulette and craps in July.

But there might not be a change in the bet limit, which was set at $5 in 1989 and increased to $100 in 2000. The gambling industry has done a lot of good for the historic Black Hills town. It has created 2,000 jobs, supplied money needed to repair the town’s buildings and roads and generated profits in millions of dollars. In August, a Gaming Commission report said that Deadwood casinos operated around 3,500 slot machines and around 100 card tables. Roughly 1,500 people were licensed as dealers and other casino employees. Annual salaries totaling $40 million are paid to about 2,000 employees, including 500 waiters and others who do not need a license.

Deadwood residents were also able to renovate the outside of their historic homes using loans and grants funded by taxes from gambling. In over 19 years of operation, deadwood casinos paid $191.7 million in taxes and fees. After deducting $20 million for the operating expenses of the Gaming Commission in regulating casinos, not less than $171 million was shared by the state and local governments.

Deadwood’s share was $116 million which was used to repair the infrastructure and improve the water system needed to prevent the fires that used to hit the town. South Dakota’s promotion campaign got $27.7 million and the state treasury got $15 million for general purposes. Lawrence County got $8.2 million, other cities in the county got $1.4 million and local school districts got $1.4 million and historic preservation efforts took $1.4 million.

Reports say that as of June 30, 2008, gamblers had bet $11.6 billion in Deadwood casinos and won back close to $10.6 billion. More than $1 billion was left for the casinos as gross revenue.

Before gambling was legalized in Deadwood, businesses were failing, and dilapidated buildings and houses could be seen around. Now, gambling has brought a constant flow of visitors to the town and not only between Memorial Day and Labor Day or during ski season.

October 29, 2009

Gamblers’ Reduction In Spending Pushes Down Wynn 3Q Profit

The entire casino industry is making a great effort to deal with the challenges and difficulties that have come with the economic recession. The slump in the economy has compelled gamblers to hold back on their spending on table games and slot machines as money has become scarce and expenses have gone up. Gamblers are also going to casinos less often. Businessmen and leisure travelers are on a tight budget and are closely watching their spending.

Wynn Resorts Ltd., the company run by major stockholder and billionaire Steve Wynn said Tuesday its profit for the third quarter has dropped for the second consecutive quarter this year. As gamblers keep on spending less in casinos, gambling revenue continued to decline. However, Wynn reported that profits from room, food and beverage and entertainment and retail got better during the quarter.

Wynn has also reported an increase in its expenses and operational costs, from $691.5 million to $693.6 million. The company has also allotted more money for promotions, with the sum amounting to $63.8 million compared with $57.9 million last year. The company said its net income fell 33 percent to $34.2 million, or 28 cents per share, for the third quarter ended Sept. 30. That’s down from $51.2 million, or 49 cents per share from last year.

Profit was 33 cents per share, excluding property charges and other items. Its stock dropped $1.15 to m$61.02 in premarket trading. Wynn, which raised $1.63 billion earlier this month with an initial public offering on the Hong Kong Stock Exchange, said third-quarter revenue went up 1 percent to $773.1 million from $769.2 million.

The addition of the $2.3 billion Encore at Wynn Las Vegas casino resort that was unveiled in December 2008 has helped Wynn’s quarterly results. The prior-year period did not include results from that property. Analysts surveyed by Thomson Reuters predicted a profit of 15 cents per share on revenue of $743.1 million. Analysts usually exclude one-time items.

October 28, 2009

County Board To Decide On Gambling Ban Or Referendum

In July Illinois governor Pat Quinn signed a legislation that authorized the installing of video gambling machines in restaurants, bars and fraternal organizations that have licenses to sell and serve liquor. No more than five video machines are allowed for every establishment. The legislation was passed with the aim to use the revenue from the video machines to help fund the state’s $31 billion capital plan. The local governments were given the right to opt out by the state, and to date, around twenty four municipalities and three county boards have used that right.

The McHenry County Board Liquor and License Committee voted Monday to pass on two resolutions on video gambling to the full County Board for a decision next week. The board would decide whether to ban video gambling in unincorporated areas in the county, or to put that ban to referendum in February.

Earlier, the committee members agreed to put an advisory referendum on the February primary ballot after an Oct. 7 public hearing was convened by the committee and attended by about 90 people who were mostly supporters of the legislation to help local establishments and to ease the unemployment problem. But the committee decided to include the ban resolution after reading in a leading Springfield political blog that the General Assembly might end the opt-out clause. Of the five committee members, three said they are in favor of a referendum over a ban.

The County Board has jurisdiction only over the unincorporated areas, and a decision by the board to ban video gambling would affect the 44 establishments in the areas that have licenses to serve liquor. These establishments are very near the border of the neighboring state which allows such gambling, thereby decreasing the revenue prospects of these establishments with liquor licenses and no gambling machines.

A vending and game machine business owner told the committee that opting out could put at risk the funding of the capital plan which could create hundreds of thousands of jobs over the years, considering that an increasing number of Illinois residents are in need of jobs.

“This bill gives them hope.” Webb said. “Do you want to take that hope away?”

Opponents of video gambling, however, argued that it is not a good idea to fund state government with gambling.

The committee thinks it might be sensible to let the voters decide in a referendum in February, but the decision whether to adopt a resolution to ban or to adopt a resolution to put the issue in a referendum will be up to the County Board when it decides on Nov. 3.

October 27, 2009

Khazei Not In Favor Of Casino Gambling, Asks Chamber To Drop Support

In a forum hosted by the Greater Boston Chamber of Commerce presenting the four Democratic candidates in a special election for a U.S. Senate seat vacated by the late Edward Kennedy, one of the candidates, Alan Khazei, City Year founder and a neophyte in politics, came out against casino gambling.

In his closing speech, Khazei pointed his remarks toward the Chamber, conveying his disappointment in the Chamber’s indication of support for expanded gaming and urging it to drop its backing for casino gambling.

“Casino gambling will irrevocably change the culture and fabric of our state,” he said. “At this time of economic suffering, it preys most on low-income people and on addicts ... I urge all of you to reverse your position on casino gambling.” The business-friendly assembly gave the speech a timid reception that made Khazei to comment later to reporters that he had not expected it and that he was unsure if he got the sympathy of the Chamber members. He further told reporters that he would push for the national regulation of casinos if elected in the senate.

Chamber officials on the other hand say that what they did was not to take a stand on the issue, but only to stress and emphasize that expanded gambling should result in new jobs and more employment, higher revenue for Massachusetts and increased capital investment.

“We have a lottery. Most of the folks that go to Connecticut [to gamble] come from Massachusetts,” Chamber President Paul Guzzi said after the forum. “I think it is much more an issue about the principles. Will it create jobs? Will it create revenue for the state? Will it create capital investment?”

Khazei is the only Democratic candidate who is totally opposed to casinos in Massachusetts. Another candidate, Attorney General Martha Coakley said she will be neutral on the issue because her office is working on outlining regulations for a possible expansion of gambling. U.S. Rep. Michael Capuano, also a candidate, said he would support casinos only if they set their sights on tourism dollars and not on the dollars of residents. The fourth candidate, Boston Celtics co-owner and Bain Capital Managing Director Steve Pagliuca said he is still looking carefully at the issue and needs more facts before taking a stand.

On Thursday, state lawmakers will hear a number of bills related to expansion of gambling in Massachusetts. Those who are in favor of casinos and slot parlors say the state would see a remarkable increase in revenue, more jobs would be generated and casinos would be good for the state’s tourism. Those who oppose argue that casinos would encourage crime and increase poverty and the revenue raised would likely come from money from local residents who would have become gambling addicts.

October 26, 2009

CityCenter to provide jobs in Vegas

Las Vegas is set to provide more jobs with the construction of the anticipated CityCenter, an $8.5 billion collection of shops, boutiques and condos that is expected to open this December. The 4,000-room hotel casino was designed by a world-renowned architect to make it more appealing to potential customers. The huge project is set to provide 12,000 jobs in the area. Michael Peltyn, CityCenter’s vice president of the human resource department describes the upcoming building as the "single biggest hiring opportunity in the history of the U.S." Last Monday, the company started filling out the positions and has accepted numerous applicants from the total 160,000 who applied.

Five hundred applicants from different states arrived on the first day and gathered in a shed. Personnel form the MGM-Mirage went from station to station to pick out prospective hires from the mob. Reporters and photographers, on the other hand were observing the entire recruitment process, interviewing applicants and jotting down notes the whole time on how things are done.

The hires were mainly from Vegas but there were also those from New York City, Los Angeles and the town of Ohio. "Looking for work and looking for work.

I put in anywhere from 50 to 100 applications every week." Deborah Peterson, one of the new hires, said. Deborah is going to be a linen attendant as the CityCenter opens this December. "I enjoy the textiles and knowing the difference between a nice spun polyester and a full-cotton product or Egyptian cotton. I'm so excited. I don't know what to do. When does December get here?" Deborah added.

The CityCenter construction plan was first announced in the year 2004 and later on gained popularity and anticipation especially with the economic downturn that started in the late 2007. There were buildings unfinished and other shops closing in Vegas strip which led to job losses. CityCenter now shoulders the responsibility of employing these people with an 8,000 vacant positions for the upcoming casino.

Alan Feldman, MGM-Mirage senior vice president commented: “In good times we've had states fall all over themselves to try to get that kind of economic activity, we’d be happy as a community to have someone do a $100 million tower.” There were several issues regarding construction-work-deaths, defects and malfunctioning of equipment and lack of funds that threatened the making of CityCenter a reality. But everything is going well now and the dream casino hotel will be up and running this December.

October 25, 2009

Video gaming returns to Iowa

Video gaming during the last decade has increased in number in gasoline stations along with bars in Iowa. More than 6,000 slot machines were reported to have been in full operation which caused a severe reaction from certain local politicians as well as the people. The abrupt growth in the gaming industry pushed the legislators to encourage the video gaming owners to withdraw their machines and cease operating in the area.

After three years, legislators are now considering to bring back video gaming in Iowa. Public discussions are presently occurring to make people aware of government plans. They consider this as a strategic move to alleviate the current budget crunch that is now experienced by the state. TouchPlay machines are expected to bring in additional revenue to the state which can be used for projects although only a few are in favor of the proposal.

State Representative Mary Gaskill is still waiting for the results of the discussions made. She thinks that this proposal has a potential to regain customers to the state since a huge number was lost due to its smoking ban. She stands on neutral grounds as of the moment and is still weighing things down along with Curt Hanson, the Fairfield Democrat who was elected as the state’s newest representative. “I’d want to think about that a lot,” Hanson said.

Just last week, Governor Chet Culver allowed a cutback of 10 percent from the state budget. More of this is expected once the legislature comes to Des Moines by January. The machines have a high record of revenue during its time of operation. It was recorded that a sum of $27.75 million was earned in the year 2006. This made local politicians consider allowing certain businessmen to engage in video gaming again since it can definitely increase tax revenues.

State Sen. Paul McKinley opposes the notion of bringing back video gaming into the district. He thinks that Iowa does not need money; it’s just that the state’s budget is set very high and thus less government spending is a better option. Also, relying on video gaming to have additional revenue can badly hurt the government since it will become dependent on it and will fail to acquire money within its means. “The supposition is that we needed the revenue. That’s like giving a recovering alcoholic a case of gin.” Sen. McKinley said.

Children near these gambling institutions are also one of the concerns of other legislatures who are not in favor of the proposal. They are worried that these video gaming machines would have adverse effects on children. If the plan was set into motion, local government should also be ready for worse backlashes from its people.

October 24, 2009

Cretul wishes to ban Seminole tribes to operate its gambling machines

Just when everyone thought that the gambling controversy in Florida was over, politicians stir it up again. Governor Charlie Crist and representatives of the Seminole Tribe has long reached an agreement some time in August which showed that majority of the votes were in favor of gambling. This was seen as the supposed end of the unceasing debate regarding the gaming industry although recently, the state House is acting as though the deal was never made saying that the majority of its lawmakers did not favor the said package deal.

House Speaker Larry Cretul wrote a letter to the National Indian Gaming stating his request to coerce casino establishments by the Seminole tribe to stop operations especially its offering of Class III slots to the public. In his letter to chairman George Skibine in Washington, Cretul stated: "Furthermore, it is my opinion that we have reached an impasse that can only be remedied with your intervention." Cretul said that the current Crist contract is a deadlock and pushes for the monitoring of the players in the gambling industry in Florida.

In response to this, Crist said: "I don't know that we've reached an impasse. I don't agree with that assessment yet." Together with the Seminole tribe, Crist contends Cretul’s proposal to cease the operation of slot machines and card games by the tribe.

Indian lawyers, on the other hand, looks at the Crist deal of 2007 as legal and binding. Although Crist went beyond his scope of authority, it cannot be denied that the agreement made between the Seminole tribe and Crist was and continues to be recognized by the State, as declared by the state Supreme Court. The tribe is open for further negotiation but wishes to continue its current operation until a new agreement is sealed. It understands the situation and is willing to cooperate as long as their right with regards to the existing contract is respected. They will continue to operate as stated by the Crist deal of 2007 until the matter is settled.

"One big issue is who has the authority to decide if a compact is valid or not," NIGC Chairman George Skibine said. In the past years, tribal compacts were settled by the federal government instead of the state government. Full registration as well as monitoring is also within the authority of the federal government.

October 23, 2009

Senators push for gambling expansion in Kentucky

Gambling expansion is now one of the forefront issues in Kentucky with two high-profile Senate Republicans planning several gaming amendments. Last Tuesday, a meeting between Senate President David Williams, Senator Damon Thayer and horse industry leaders were held at the Kentucky Horse Park. During the said meeting, Williams presented his proposed amendments regarding the expansion in the gambling industry. He said that there will be no gambling expansion unless a consensus is reached by the people of Kentucky.

"This will resolve any sort of questions. We have four attorney generals who've ruled one way and two attorney generals who've ruled the other, and whatever piece of legislation had come out of this last session or the next, obviously, would be litigated." Williams said.
On the other hand, Senator Thayer proposed an expansion plan for seven counties which already have race tracks. He iterates that the people will have the final say in the said proposal. “It would be run by the Kentucky Lottery, and the most important factor, I believe, is that it would lock in, in the constitution, the amount of money dedicated to the horse industry.”, Thayer said. The amount is expected to be $100 million per year which will be used for infrastructure projects and to pay off state debts.

Senate Minority Leader, Ed Worley, is uncertain about the said bill. "I can tell you right now, that any proposal that comes forth that requires 17 Democrats and three or four Republicans - if I can borrow from Sen. Williams and what he has said the in the past - is dead on arrival," stated Worley.

When asked, Don Robinson of the Kentucky Thoroughbred Association said they were not in favor of the constitutional amendments proposed by Williams and Thayer. "Really, our position is by acclamation that we support the Senate having a full hearing of the bill that was presented to the House, that cleared the House this spring, and that's what we're all about," he said.

The bill was said to include video slots and horse tracks approval and did not include voter approval. This caused some people to talk about the issue and raise questions. Most of horse track owners and residents in the areas concerned are also not in favor of the constitutional amendments proposed by Wlliams and Thayer.

"I don't know what their reason is for doing it, but I think the horse industry, like every other industry in the state, is gonna pursue trying to get people elected that agree with our positions," said Bill Farrish of Lane's End Farm in Woodford County, "And it's no different from any other industry in the state."

Governor Beshear accused the two Senators of "playing politics with the $4 billion horse industry" since the ones majorly benefited would not be the industry. Their constitutional amendments are, as what Governor Beshear said, "a cynical maneuver designed to take pressure off of some members who regret their unwillingness to help the industry and our state just a few months ago." House Speaker Greg Stumbo was absent during the meeting and thus refused to comment about the issue.

October 22, 2009

Libertyville Opposed To Video Gambling

It looks as if the video gambling idea to generate revenue in counties and villages is not quite a popular one as more and more communities are voicing their opposition to the scheme. Among the latest to join the growing number of suburbs that signified their intention to ban video gambling is Libertyville in Illinois. During its regular meeting this week, the main topic discussed by the village board is the ordinance prohibiting video gambling in their vicinity.

One of the board’s committees and two other board members have by now expressed their opposition to the gambling devices, so it is very likely that the video gambling concept will be rejected by the board even before state rules are prepared. The board’s finance committee’s recommendation is to ban the machines, saying profits from them would not be worth impending problems. "This is not a substantial revenue stream," said Trustee Rich Moras, a member of the license and permits committee. "There's a section of the population where this is a tax on hope."

In July, Gov Pat Quinn signed into law measures that were seen to have the makings of becoming revenue generators for the state. Video gambling is one of these measures, and revenue raised from it would be used for a $31 billion public works program. "The only reason they have this is to potentially raise money for the state. Personally, I'm not in favor of it," said Trustee Jay Justice, who chairs the committee. He and Moras voted to recommend for its banning.

Libertyville mayor Terry Weppler and Trustee Nick Proepper who were in the meeting were also against the idea. "Right now, we have to look at any revenue source we can but I don't see this as a revenue generator," Weppler said. "No matter what the guidelines are from the state, we see no reason to allow it." Only establishments with a license to sell liquors are eligible to install a maximum of five video gambling machines, and there are twenty six of these business establishments in Libertyville. But village officials estimate that no more than ten businesses would be interested to have the machines installed.

As per the estimate of Village Administrator Kevin Bowens, each machine is likely to generate $2,250 as the village’s share of net income. Libertyville’s share of the revenue is estimated at $114,000 annually, if ten establishments installed the devices. If a majority of the village board supports the plan, an ordinance would be presented in a vote at next month’s meeting to make the measure official.

October 21, 2009

The need for online gambling regulation in U.S. reinforced by the creation of new task force

The enactment of the Unlawful Internet Gambling Enforcement Act in the United States was intended to get rid of online gambling in the country and to prohibit the use of credit cards and bank accounts to pay for online gambling transactions.

Yet, the law appears not to have succeeded as a deterrent, since online gambling operations and illegal financial dealings continue to exist. The rules of the Act seem to be confusing and unclear, making it harder for people to grasp and appreciate US online gambling laws.

Thus, a new team called Assets Forfeiture and Financial Crimes task force was created by the US Attorney’s Office in Baltimore, Maryland that will target online gambling operations in the country. But the fact that this task force was formed chiefly to pursue online gambling businesses and other related transactions shows that there is truly an urgent need to regulate Internet gambling.

The task force has already started its work, and has seized several bank accounts in Maryland and other states, that were used to pay prize money to US online gamblers. "Seizing and forfeiting ill-gotten gains enables us to take the profit out of crime and use the proceeds to compensate victims," said US Attorney Rod J. Rosenstein, as reported on Gambling911. But as proponents of online gambling regulation would claim, there would be no victims in a properly regulated online gambling system; instead, players would be protected, as safeguards would be well-defined. Customers would play in the gaming sites they are using without having to worry that they will be duped. This is just one of the reasons why Representative Barney Frank and other lawmakers are trying to pass a law abolishing the UIGEA and regulating Internet gambling.

In the House, Representative Frank has submitted two bills that would outline the rules for a regulated online gambling industry in the US., and in the Senate, Senator Robert Menendez introduced a bill that would legalize online poker, and Senator Ron Wyden recently proposed an amendment that would make use of the gambling revenue from Frank’s Consumer Protection and Enforcement Act (HR 2267) to compensate costs from health care reform.

CGW Online Gaming Analyst Roger Wheeler rightly summed it up, saying, "Most people within the online gambling community knew that when the UIGEA was put in place, it would bring to light all of the corruption that currently exists within the online gambling industry. The more seizures this new task force makes in relation to online gambling, the more it will prove Rep. Frank's theory that people in the US need to be protected."

October 20, 2009

France to open online betting market to foreign companies

A legislation will be presented to the French Parliament October 7 that will terminate the monopolies of state lottery provider Groupe Francaise des Jeux and gambling and horseracing operator Pari Mutuel Urbain and thereby open sports betting and poker to foreign operators starting next year.

This has been welcome news for gambling companies such as PartyGaming Plc, William Hill Plc and 888 Holdings Plc that are tackling slow business in the UK owing to the weakened economy that forced customers to control their spending.

“The size of the population and the appetite for gambling, and the group’s historically cautious approach to France make this a particularly exciting opportunity for us,” said Jim Ryan, chief executive officer of PartyGaming, U.K.’s biggest online-gaming company by revenue.The French market is “large and sophisticated,” Martin Higginson, CEO of Net Play TV Plc, a Lancaster, U.K.-based electronic-gaming company said. “As it becomes more liberalized, it will be as big as the U.K.”

A spokesman for 888 Holdings said the company is “watching closely” the proceedings at the French Parliament so it will be ready to apply for an online gambling license. William Hill spokesman David Hood said the company is “very aware” of potential breaks in France. “We would have ambitions to attract business from there”, he added. “The U.K. is fairly flat if you like, or at least slowing down,” said Simon Holliday, director at H2 Gambling Capital, a consulting firm based in Manchester, England. France is “the largest single market on the horizon.”

Budget Minister Eric Woerth disclosed that France decided to liberalize its market because of the illegal gambling sites available in France, numbering around 25,000, a fourth of which are in French, and responsible for 75% of Web bets. Also, the pressure from the European Commission ordering European Union states to reform gambling markets has been another deciding factor. As a result of this new legislation, France will more than double sales from electronic gambling next year, and another 53% increase the following year, as per estimates from consulting firm, H2 gambling Capital.

But the foreign investors applying for gambling licenses will have to take into consideration the tax rates and other rules. “The tax conditions that have been put in place by the French question how economically viable this is going to be” for new operators, Sigrid Ligne, secretary-general of the European Gaming and Betting association said.

There were also “huge concerns about how the project is going to allow fair access” to outside companies, Ligne said. “The law does not protect monopoly activity,” a spokeswoman for the French budget ministry said. Current gambling companies “will have to file an application for approval and conform to specifications. Only lottery, scratchcards, and games of random chance remain under monopoly” of Francaise des Jeux, she said.

October 19, 2009

BACK TO WORK.Ukraine's new set of gambling regulations

Countries all over the world are expanding their gambling industries for government to recompense for their losses incurred due to the global financial crisis. Ukraine now faces a trade off decision as to whether or not establish gambling sites to gain additional income. The State entrepreneurship committee proposed a bill on gambling regulations. This will set limits and standards for each gambling institution in the area after the bill is authorized and implemented. It was part of the plan to have six gambling zones to be constructed in Ukraine. These gambling zones will be in Kyiv, Kharkiv, Donetsk, Odesa, Lviv, Crimea and Kommersant.

The building of gambling centers is permitted only inside trading center premises with a an area of 15,000 square meters. Cultural and entertaining businesses are to built in an area of at least 2,000 square meters. Interested entrepreneurs who want to get into the gambling business should have an authorized fund of at least 10 mn of hryvnias with the license to run the business costing the same. An additional license for opening new halls will cost 500,000 hryvnias.

Gambling was formerly prohibited in Ukraine during the earlier part of this year. This was perhaps in the fear of social issues that might arise. But some time this year, the Cabinet of Ministers was ordered to create a bill proposing a plan on gambling regulations as well as the zones that gambling could be deemed legal. An allotted period of three months was given to the cabinet to have the bill passed so it can be approved immediately.

Plenty of businessmen were not in favor of he said gambling prerequisites because of the really high costs. Ihor Kulyk, Extreli-Ukraine president commented, “A businessman needs 1.5 mn of dollars for opening one hall”, then added, “It is very expensive for us, and we will not be able to work on the new terms”. The chairman of the Union of Businessmen in the gambling sector. Oleksandr Boyko made a comment about the rise in license prices with place restrictions and the union's belief that businesses would not be able to sustain their businesses because of these hindrances. They expect that only 20-30 companies will be able to survive in the industry compared before that 200 operators were given licenses easily. The head of the Illinois State Entrepreneurship Committee, Oleksandra Kuzhel, on the other hand said: “But it is good for us to control only 5-10 companies.”

October 18, 2009

Barney Frank Internet Regulation to sustain the health care reform

The local Washington government is finding other means to gain funds for projects and other government expenditures. Funds for the current health care program is also a big issue for the legislatures since they want the program to be pushed through as soon as possible. Senator Ron Wyden, an American politician from Oregon, suggested for that the Barney Frank Internet Regulation, Consumer Protection and Enforcement Act (H.R. 2267) be used to finance the health care reform program. The proceeds of this online gambling venture will be utilized to support low income subsidies, as stated by America's Healthy Future Act of 2009.

"We applaud Senator Wyden's proposal to collect and put to good use tens of billions in Internet gambling revenue that would otherwise be lost in the underground marketplace," said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative, and then added, "The Senate Finance Committee should approve the resolution, finally putting to an end a failed prohibition on Internet gambling that leaves Americans unprotected and unlicensed offshore operators as the only beneficiary in a thriving marketplace." The said bill would generate an expected 62 billion US dollars over the next 10 years. This amount would be sufficient to start off the health care reform and thus, other politicians are banking on this.

H.R. 2267 or the Barney Frank Internet Regulation is supported by 58 varied representatives and is in a better position of being approved compared to when Frank originally proposed the bill years ago. The Senate Finance Committee is believed to be in favor of the bill and so, the approval will not take a very long process, as legislatures would like to believe.

Other concerned parties are also helping make this bill legal and are in fact, launching promotions and advertisements for the program. They also want the UIGEA to be abolished and in its place would be the H.R. 2267. Online players want to enjoy games at their own pace and within unlimited boundaries. Local officials want to generate substantial cash to fund projects. There is no better way to meet both wants than to legalize online gambling, as stated in a report. A spectator who loves to gamble also said as a means to promote the passing of the bill H.R. 2267: “If you have not yet done so, please write your Congress members and push for the regulation of online gambling. There is no point in sending American dollars overseas when we can keep the money within our borders.”

October 17, 2009

Bob Barr’s Views On The Future Of Internet Gambling In The US

Several indications are slowly being revealed showing that the lawmakers are getting down to business on the issue of online gambling, and that a law legalizing Internet gambling would soon be passed, this time with clear and specific guidelines and provisions.

Well-known columnist of the Atlanta Journal-Constitution, Bob Barr sees the legislation forthcoming. In his weekly column “The Barr Code”, Barr wrote his latest chapter entitled “Get Ready To Ante Up To Congress”. In this entry Barr implied that the bill called Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR2267) authored and introduced in the House by Congressman Barney Frank (D-MA) would soon be subject to a hearing in Congress this fall. Frank’s bill strives to overturn the Unlawful Internet Gambling Enforcement Act (UIGEA) and apply a federalized system to tax and license online gaming sites. Barr mentioned that aside from Frank’s bill, there are at least two pieces of legislation intended to invalidate the UIGEA.

Frank also sponsored another bill besides the one mentioned above, entitled the Reasonable Prudence in Regulation Act (HR 226) which seeks to give financial institutions a one year delay from the December deadline to comply with the measures set by the UIGEA.

Barr continued to say that one of the reasons why the support for the regulation of online gambling has increased over the months is the economy. Barr wrote, “It is likely that testimony in support of the legislation will be based as much on economics as on the principle that individuals should be able to gamble online if they want to.” Barr went on to say, echoing the oft-repeated line of many online gambling supporters: “The economics of taxing Internet gambling are indeed impressive.”

Basing his computations on a PricewaterhouseCoopers study, Barr estimated that in the first ten years of operation of online casinos, the United States Government could earn $51 billion. This huge amount has led many in Washington to take a second look at the issue. Barr said that even the traditional brick-and mortar casinos that oppose online gambling are beginning to show their support and commitment. As what Poker Players Alliance (PPA) Executive Director John Pappas had said that in countries where online gambling is legal, many gamblers still go to nearby casinos to play.

Barr reminded the readers of his column that there are still those who continue to oppose online gambling such as institutions like the National Football League and those people with moral convictions, despite the growing number of supporters. Barr predicted that the fight will not be an easy one in the months to come, taking into account the dismal financial situation of the country owing to the weakened economy. He concluded, “Moralists and business that see online gambling as competition can be expected to continue to oppose efforts to resuscitate the Internet gambling industry. The poor economy and profligate government spending may have become their most serious adversaries.”

October 16, 2009

Caesars Windsor cuts down costs on its operations

The aftermath of the economic crisis has left businessmen laying off workers or shutting down some branches. Small time industry players have suffered the most from it and are having a hard time getting back on track while some were left with no choice but to stop operations. Caesars Windsor is one of the businesses that have been slowed down by the recession and this has caused the head of its local union to worry about the business's state which could result in the termination of some employees.

“Business just isn't there,” Rick Laporte, the president of Canadian Auto Workers Local 444, said during a membership meeting held recently and then added, "It's down considerably. The only solution, at the end of the day, may be, in fact, a layoff." The business employs 2,934 cashiers, pit clerks, bus greeters and other casino staff.

Holly Ward, director of communications and community affairs said: “Laying off is a last option. It is not something we take lightly. To prevent them, the casino is trying to reduce its operating costs across the board." In an attempt to resolve the casino's financial problem, management has cut down working hours in one of its restaurants and as a strategic promotional move, added breakfast to its menu to entice more customers to come. "We tweak stuff every day," Ward said. The team is devising innovative and creative ways to attract people to come to the place, love it and tell others about their experience.

Since business is still recovering, Laporte and top management decided to cut down costs by shortening staff shifts. Employees are to finish their work early so salaries paid would decrease. This is probably better than laying off lots and lots of workers. "They're only getting half of their pay sometimes, 20 hours in out of the 40 hours," Laporte said. "It's concerning."

The newly established US passport regulations together with the recession were the major factors that Laporte and Ward believes to have caused the slowed growth of the business. US border rules require that every person entering the state should be able to present a valid passport, if not,a valid identification card like that of a driver's license. Any American tourist that goes to Canada now has to show their passports once they go back to their states. Since majority of the Americans do not carry their passports or have these renewed, the bigger market that comprises the company's once higher sales are now gone. Ward noticed a significant drop in sales from the date the US border rule was implemented.

October 15, 2009

Customers Control Spending, Lottery Sales Plummet

Lottery retailers all over the United States are one in saying that they are feeling the blow quite piercingly now as sales of lottery tickets are noticeably dropping month after month. Lottery gambling is the highest contributor of gambling revenue to the government among all other forms of gambling. Lottery vendors have noticed how people nowadays are reluctant to part with their money, especially on things that are not a necessity, like lottery tickets.

"At the very beginning it kind of went up when the economy did its little back flip," said Denise Grabski, manager at the Smoke Shop in Merrillville. "Right away people started playing the lottery more, thinking they'd hit the big one," Grabski said. "When they realized it wasn't that easy to hit anything, they were wasting their money and they were low on money anyway. Now everybody's kind of watching it because money's so tight." Doug Kralek of Cedar Lake said he's spent maybe a total of $4 on lottery tickets. "It's a setup. The odds are against it," he said. "I don't donate my money."

And because they are on a strict budget, those customers who still bought tickets, bought the cheaper ones. Sales of higher-cost tickets have significantly dropped, while sales of the cheaper tickets have increased, said Kathryn Densborn, executive director of the Hoosier Lottery. "They're spending less, and they're spending differently," she said. "We're a good 10 percent down" from last year and the year before,” Sandy Nicholls, manager of the Mobil station at U.S. 30 and Cline Avenue in Schererville said. "But we're selling fewer in the $1 category and more in the $5 and $2 category."

According to a study on state-run gambling by the Nelson A. Rockefeller Institute of Government at the State University of New York, Indiana's lottery profits dropped 17.5 percent in the last fiscal year ended June 30. In terms of millions, profits of $217 million in 2008 fiscal year fell to $178 million in fiscal year 2009, or a drop of nearly $40 million in one fiscal year.

Aside from Indiana, two other states showing two-digit drops in lottery ticket sales were Oregon and Arizona. Lottery vendors have noticed that on Powerball day- Wednesday and Saturday- lottery ticket sales go up. People are looking for a hope and a prayer on those days, the retailers commented. Well, the lottery vendors are also one in hoping and praying that the economy would recover soon, and so would their lottery sales.

October 14, 2009

Periera debunks talks that casinos give rise to corruption

Joseph Periera, Deputy Principal of the University of the West Indies, dismissed as nonsense fears that the bringing in of casino gambling to Jamaica would be the cause of corruption among its government officials and its people. He added that Jamaica is already corrupt as it is, therefore, nothing, especially not casino gambling can make it more corrupt. Speaking in the quarterly luncheon of the Montego Bay Chamber of Commerce and Industry at the Wexford Hotel, Periera said, "talks that casino gambling will lead to more corruption in the country are baseless. Let me be disrespectful and say, I don’t think that we Jamaicans can have any more corruption of our morals; we are already nice and firmly corrupted.”

He revealed that the University is conducting studies and surveys on the subject of the introduction of casino gambling in Jamaica, and the studies concluded that economic advancement can be attained throughout the island once casinos are permitted in Jamaica. Periera wants the casinos to start their operations in the islands immediately, seeing the positive effect it can have on the region’s economy. He sees no reason for the concept to be discussed and debated at length, regarding the delay as a waste of precious time.

"Let me say, I have no qualms whatsoever in promoting casino gambling and that we promote it as quickly as possible. It is not meant to be a controversial issue at all, only good can come out of it," Periera said. “What I have noticed is that in countries where casino is legal, the benefits are tremendous for the people and economy of those countries. This is true for a number of countries, and Jamaica should not be an exception," he added.

Periera said, though, that the introduction of casinos should have specific conditions and requirements affixed to it. "We should exclude locals from gambling in the casinos and reserve it for foreigners only,” he said. Since Jamaica is a tourist destination, the casinos would not be lacking in customers. For the tourism officials in the island, the entry of casino gambling is bound to happen, and they have seen it coming, although they also expect heavy opposition from the locals. Periera’s statements, therefore could provoke more arguments and controversy.

The comments of Periera were set off by talks of the introduction of casinos in the island, and the idea is currently being debated and discussed.

October 13, 2009

Expert says that the passing of Frank Bill should not be deferred

The Internet Gambling Regulation Consumer Protection & Enforcement Act, proposed by Barney Frank, is gaining more support from the US Congress today. But expert, Tony Cabot opposes the passing of such bill and says that it is not yet the right time to implement it. The bill was supposed to give the US Treasury Department authority on how online gaming is to be done as well as the acquisition of licenses. The termination of licenses for those who will violate the new set of laws will also be under the Treasury's jurisdiction.

PokerStars and Full Tilt Poker are expected to strongly oppose the passing of the bill since these two belong to the sites that are receiving much revenue from online casinos. Cabot believes that these sites would be top on the list of sites receiving licenses if the bill is approved. Big time online casino operators would perhaps use their resources to prevent the passing of the legislation. This insight along with others were imparted to the media last week at the International Masters of Gaming Law seminar in Amsterdam.

Some of the land based casino entrepreneurs in Las Vegas are also not in conformity with the internet gambling regulation. Steve Wynn, for one, has hired people to go against the Barney Frank Bill. Some,on the other hand, are pushing and supporting its regulation.

The bill has certainly gained the attention of many and Cabot's perspective on the bill's wrong timing was questioned by other lawmakers. During the past weeks, politician Bob Barr said that the high revenues that these online operators are generating, are too good for the government to pass. Just recently, Senator Ron Wyden had a proposal on using revenue generated through online gambling support part of the health care reform program although at a later date, he withdrew his position on the matter since there are too many issues to be tackled at the same time.

Cabot insists that nothing will happen this year and added “Barney Frank has already pushed his (legislation proposal) back, and once we get into next year we will be into an election cycle. The Democrats, in particular, are under a lot of stress at the moment and the last thing Democrats want to get involved in is an unpopular fight because the Republicans will be all over it.”

October 12, 2009

Golden Gate Hotel and Casino gets a facelift

Golden Gate owners Derek Stevens and Mark Brandenburg recently refurbished their 103-year old property. For the past 18 months, improvements were done on the casino hotel, including modifying the 106 hotel rooms, adding a player-tracking system, upgrading the 15 table games and the floor with 270 slots machines and adding more television sets in the bar and casino areas. An ownership partnership facilitated the capital used for the renovations.

"It has all really changed the feel of the place," Brandenburg said. "When we did our slot floor and put in new slot machines, that in itself, particularly for a small business like us, is a huge investment." Recently, a proposal was endorsed by casino regulators for Stevens to become chief executive officer of the downtown property. This happened at the time when Desert Rock Enterprises, the investment firm of Derek Stevens raised its ownership share in the property to 60 percent from 50 percent.

The remaining 40 percent is owned by Mark Brandenburg, who sits as the president of the historic Golden Gate. Mark has been an owner of the property since 1990. Steven also owns a close to 15 percent passive share in Riviera Holdings, Corp. He said his investment in Golden Gate has allowed him to witness and be involved in the business operations of a casino establishment.

Stevens’ former job was as a manufacturer of auto parts in Michigan, then he went on to become owner and executive of Las Vegas 51s baseball team, and now as part owner of Golden Gate, he has become a gaming executive. "You only really have an opportunity to (own and operate a Las Vegas casino) at a certain level," Stevens said. "For me, who I partner with was critical because I wanted to make sure it was someone that had a background that I could learn from and trust and be able to work with on a going-forward basis."

Stevens could oftentimes be seen on the casino floor mingling with customers, a trait reminiscent of past casino owners. Brandenburg, whose family had owned the property in different capacities since 1955, said the partnership had given him the resources to make the necessary improvements to the property, which he could not have done by himself.

Last Sept. 18, they opened the new One Bar, the first permanent outside bar on Fremont Street. It is a slush and beer bar that is powered by a geothermal system that enables the bar to serve very cold beer even if the temperature outside reached 110 degrees. The technology was designed by Derek’s brother, Greg Stevens who has an engineering background and who is also a co-investor in the property.

The partnership of Brandenburg and Stevens started in March 2008, when, after some negotiations, a 50% sale of the property to Stevens was approved by casino regulators. The share was raised this month when Stevens made a loan to the property that was converted to equity.

October 11, 2009

Gambling issues in the Caribbean

Gambling in its various forms has become an issue of major concern and contention for a number of Caribbean countries. Trinidad and Tobago are not spared from the heated debate regarding gambling most especially since policies and the public impression regarding the activity are based on criminalization and contradiction.

The gambling industry in the region is divided into a private sector which has gambling activities that are illegal in nature and the state sector whose activities are regulated by the National Lotteries Control Board. The launching of the national lottery in 1968 marked Trinidad and Tobago’s involvement in the gambling arena. Whereas gambling in the private sector had already been practiced more than a century earlier.

One prominent gambling activity in Trinidad’s private sector would be horse racing. It has garnered much support from the state in the form of provisions of its legislative framework, help in the acquisition of lands and infrastructures and subsidies for its regulatory body, among others. Consequently, the horse racing industry in the region is relatively successful and repays the state with employment for an estimated 5,000 workers.

The national lottery also earned similar legislative and material support as horse racing and in 1994, two online gambling games, national lotto and “play whe”, were also endorsed by the state. The state’s involvement in the gambling arena has reaped quite a harvest. The two computerized games have been classified as cash cow sources for government funds and are generating billions of dollars in revenues, yearly.

Casino gambling however has not been endowed with similar support from the state, as it remains illegal. Despite its illegal nature, however, casinos are proliferating in the last decade due to a loophole provided in the Gambling and Betting Act. The act legalizes the Private Members Club to engage in gambling and the operation of slot machines and tables. Currently, the casino sector employs around 7,000 workers and generates millions in revenues.
In October 2006, however, the Government announced that it does not support casino and online gambling and is initiating activities to eliminate the entire system. Following the announcement, the government made amendments to the Gambling and Betting Act to fix the loophole.

However, the implementation of the policy has been delayed due to intense protests staged by Association of Members Clubs and Union of Members Clubs and Lottery Workers. The government has opted to provide a five-year period for casino owners to scrape off operations otherwise would be deemed illegal and retrain their workforce.

The future of the casino industry would only be positive if there is a close partnership between the government and civil society. Decriminalization is necessary as well as establishing the legal and regulatory framework to back it up. Further research is also important to understand why there is a difference in how the public perceives casino gambling compared to the other accepted forms of gambling.

October 10, 2009

No NASCAR Gambling AT Dover

There will be no betting on the NASCAR race at the Dover Downs casino this weekend. When Delaware state officials and gambling operators submitted a proposal for the state to offer betting on single games in several sports, the court rejected the plan, citing the state’s ban on sports betting. Instead the court allowed only parlay betting or laying one bet on not more than three NFL games.

Attorneys for the state are appealing the court’s decision and state leaders and casino operators are still looking forward to the time when the court will finally grant the state authority to accept bets on single games and on many different sports. As a result of the court ruling, sports fans and gamblers, instead of betting on the NASCAR race at the Dover Downs casino this Sunday, and heading to the Dover International Speedway to see if they won, would only be watching the race on the big TV screens at the recently opened Race & Sports Book.

"We're a small state with a small population and we need all the help we can get," Dover Motorsports president Denis McGlynn said. "I think the sports betting could have had the ability to draw new people into NASCAR just to give them some other reason to watch." Sports betting officially started on Sept. 10, but the total sport bets at the state’s three racetrack casinos amounted only to $257,870 during the first week. In all likelihood, if the court had ruled in favor of sports betting, a number of bettors would have trooped to the sports betting parlor on a Friday night. But now, most people go there just to watch games on TV and to have some beer and burger.

But even without the betting and with a slumped economy, track officials still estimate the fans to reach 100,000 on Sunday. Another problem confronting the NASCAR race at Dover aside from the sports betting issue is the lack of funds that resulted in the freezing of the five-year improvement project that was started in2006. Though some of the major jobs were finished, like the expanded pit road on the Monster Mile, some parts of the development plan have yet to be started, like the new garage that would feature rooftop viewing for fans, and the new ticket and merchandise sales buildings.

"With the economy the way it is and the finance industry being so slow to lend money, we've got to wait a little while," McGlynn said. "Maybe another year or two, but we're going to do it."

October 9, 2009

Areas in Illinois set to ban video gambling

The ongoing debate regarding the continued legalized video gambling or its banning has gained heat among Illinois state lawmakers The legalization was originally created to help fund the $31 billion worth of government projects for the local area, but now, officials are contemplating on banning the installation of gambling machines. Many of local officials in certain parts of Illinois have enacted laws prohibiting gambling in their respective districts. Others are merely waiting to see what happens for a certain period since these gambling endeavors might be beneficial for them.

Towns such as Kildeer, Buffalo Grove and Mettawa are only some of those who are prohibiting the installation of gambling machines together with the DuPage County Board. Now, talk has it that Lake County Board is following the other towns' lead. The place is planning to ban video gambling entirely with Wednesday as the schedule for the board of finance committee's meeting for them to decide on the pressing gambling issue. The issue concerning the permission of machines to be installed in restaurants, bars and clubs in incorporated regions within Illinois will be tackled in the meeting.

The said meeting will start at 1 pm in downtown Waukegan. "That's the first discussion. I don't know what's going to come from that. There are a number of ways they could go." Barry Burton, County Administrator, said. Commissioners were asked which side they are favoring and the results revealed that most of them are in the side of restricting, if not, prohibiting the rising gambling industry. Vernon Hills Republican, Aaron Lawlor, is one of the people who is siding with the prohibition of video gambling in the area. In fact, he thinks that funding government projects with revenue derived from gambling is inappropriate and a bit unethical. Government should find other means to fund their projects and proceed with the banning since these can cause major social issues in the long run.

Supporters, on the other hand, are unyielding in their stand to continue with video gambling and let the industry rise accordingly. A program supporter, Corky Anderson who is an owner of a beach park bar as well as the presiding president of the Lake County Tavern Owners Association thinks local entertainment hubs and hangout places would potentially lose a lot of customers if the ban was pushed through. Many people want to gamble and taking away the major factor that drives these people to the place will result in opportunity losses.

October 8, 2009

Investors coming out with the recession impairing the casino industry

With the detrimental impact of the recent recession on the casino industry, many casino institutions are on the brink of bankruptcy while others struggle to survive. Small time players are often the ones greatly affected and are bought out by larger companies. Fontainebleau, for one, has filed for bankruptcy and because of this; Apollo Management is eyeing it as a potential investment. There are several opportunists taking advantage of some casino companies’ misfortune and go straight ahead for ownership. Acquisition through buying out smaller or companies in trouble was a rare situation if one considers the casino industry’s state before the recession.

Before, investors merely purchase shares of stocks from these gambling businesses but today, the transfer of ownership from one person to another is already rampant. Some people pay for lumps of debts these companies have incurred due to the economic crisis and when the company is on the brink of bankruptcy, these new creditors have a high probability of owning the business. At times, these things are decided by consensus among the creditors.

Harrah has just purchased a share of Planet Hollywood’s debt to increase its leverage over the company. Analysts say that the former Aladdin in the year 2004 was renamed into what is now known as Planet Hollywood in the year 2007. Harrah also owns clusters of properties and have these situated in very good locations. The company has its own set of financial problems and aims to resolve this through buying back its own debts and applying and cheaper refinancing. Analysts predict that Apollo, with $30.7 billion worth of financial support to Harrah, would be interested to continually provide the company with additional funds for it to get back on track since the recession occurred. Apollo, when asked about this, refused to comment.

Among the casino companies being eyed by investors are Planet Hollywood, Riviera, Green Valley Ranch Station Casino and Hooters. It was found out that Riviera’s debt has risen at eleven percent during the past month, Green Valley’s debt rose up to five percent while Hooter having an unaltered debt ratio.

Onex Corporation, a newcomer in the gambling industry, has gained more than $200 million worth of Tropicana’s debt in 2008. It was not long ago when the company’s net worth was $1 billion, but within years after establishment, the company declared bankruptcy. Because of this scenario, plenty of creditors are coming out in the hopes of gaining ownership of a company with a thriving financial status. “They’re more willing to invest now versus a year ago,” Frank Schreck, Las Vegas attorney said, “Because they know what to expect.”

October 7, 2009

Only 25 and above for betfair poker ads

Controversy has erupted from an online betting firm’s poker advertisement. The e-mail advertisement of the betting firm, Betfair, featured a photograph of a young woman with a tag line, “online experience is measured in games, not years. Join the new breed,” and was signed “Annette Obrestad - ‘Annette--15’.
Annette Obrestad, a 21-year-old Norwegian, is a member of the gambling firm’s Betfair Poker Pro team and one of the world’s best online multi-table poker tournament players. A complainant charged the ad as “irresponsible” because it endorsed gambling among young people and children.

Betfair was thus ordered to stop featuring people who are below 25 years old in any of their poker commercials. The betting firm which hosts betting exchanges in Britain and Australia stated that the e-mail was sent only to the people who registered for Lucky Lotto and the registration requires members to confirm that they are over 18 years old. Betfair emphasized that its target market does not include those aged under 18 years.

The firm also maintained that they have exercised the necessary precaution and measures to prevent young people from gambling and using the products on the Betfair site. A team has been tasked with verifying the age and identity of the people who log onto the website. Betfair added that Obrestad was chosen as endorser because of her reputation as a poker champion and not because of her age. They also countered that Obrestad qualifies as an adult under the advertising code or Gambling Act.

The Advertising Standards Authority (ASA), however, maintains its side with the complaint and stated that while they understand that the ad was not intended directly at young people, the advertising code holds that “marketing communications should not likely to be of particular appeal to children or young persons, especially by reflecting or being associated with youth culture."

The ASA also pointed out that the tag line showed Obrestad’s online handle as 15 years old, thus implying that was even younger and, albeit indirectly, promoted gambling among young people. The adjudication stated that ‘‘Because Ms Obrestad was 20 years old and because, as a professional poker player, she played a significant role in gambling in the ad, we concluded the ad breached the provisions of the code."

The ASA has now ordered Betfair to stop distributing and using the ad in its current presentation and emphasizes that the firm keep from using and featuring anyone who is and seems to be aged less than 25 years old in upcoming advertisements.

October 6, 2009

Toledoans' Feedback on Casino Openings

It has become an uncontested fact that casinos are synonymous with gambling; and the continuing trend toward the legalization of gambling in Ohio includes putting to a vote the opening of casinos in four cities including Toledo.

There are two sides of the argument when it comes to the Toledoans' insights regarding the issue of Casinos opening in their city. For one, Debbie Smith thinks that “it's (casino) going to bring more revenue” in the city, and that she does not have to go to Michigan to have a good time. On the other hand, people like Mr. Renfroe said that “casinos would create as many, if not more, problems”.The debate arising from the issue includes the subject on whether casinos would bring benefits and opportunities, or otherwise.

From the point of view of citizen Mike Skaff, he said that any business would mean jobs and if it is in Toledo then majority of the jobs would help people from the area. This idea is backed by Ms Bryson who said that “it will be cool to have more jobs” for the people in Toledo. While people such as Mr. Skaff and Ms Bryson look at the positive side of the possibility of casinos, Mr. Renfroe has his doubts. He said, “The jobs they are talking about creating are going to be for people imported from the industry as it is” and that they won't be creating new jobs and training people.

The effect of gambling on families and communities were also subjected to much debate. A family's financial position would be greatly compromised, as suggested by Mr. Renfroe. Furthermore, Neil Bornstein understands the social problems that arise from gambling. He had witnessed people giving their paychecks thinking of doubling their fortunes but instead were loosing it to casinos. He felt repulsed of the idea that the money they need to pay their bills were gambled and lost like a bubble. People on the same side also worry about the element of crime and tax issues.

But even the presence of these concerns, it did not stop Debbie Smith looking forward for a fun casino night. She said, “I think we can get it in place and manage it properly, and I don't think it's going to be a hindrance.” The same goes for Tabitha Bryson who brushes off the problems of casino and gambling voiced by the others. “It probably will bring some problems, but there will be problems regardless.”, she said.

October 5, 2009

Speaker presents achievements of video gambling in South Dakota to Illinois Municipal Officials

The Video Gaming Act has been debated in many cities and unincorporated counties in Illinois as to whether or not to participate in this proposal. The pros and cons have been carefully weighed in view of the present economic crisis besetting the entire nation. The Video Gaming Act would allow certain establishments such as bars and restaurants that have liquor pouring licenses to install and operate as much as five of these video gaming devices, as long as these machines are located in areas which are off-limits to minors.

The municipalities are given an opt-out provision by the act. As to the sharing of revenues, 25 percent of the proceeds from these machines will go to the state to finance the $31 billion capital bill, and another 5 percent will be given to the local municipality where the machines are to be found. As an offshoot of this debate, a conference of all members of the Illinois Municipal League (IML) was called. Larry A. Mann, a former commissioner of Lead City, South Dakota and a public affairs consultant to the mining and gaming industries was invited to the 96th conference of the IML to speak about the accomplishments brought to South Dakota by the video gambling machines.

In his presentation, Mann told the members of the organization of municipalities in Illinois that, "video gaming has been a significant and stable source of revenue in South Dakota for almost 20 years without creating the negative social impact that many detractors predicted." "In South Dakota, video gaming is second only to sales tax as a source of revenue," says Mann. "It has reduced property taxes significantly." Mann referred to a study of South Dakota gaming conducted in1998 by Deloitte & Touche which confirms that the possible negative impact of video gaming on society is very insignificant compared to its positive effect on annual revenue.

"In 2000, a referendum to repeal gaming was defeated by 53 percent of the voters. In 2006, 64 percent defeated a similar referendum," he said, emphasizing the fact that the number of people opposing video gambling in South Dakota has been gradually declining. "One of the myths perpetuated about video gaming is that it hasn't worked in other states. Mann's presentation refutes that assertion," says ICMOA President Tom Fiedler of Champaign.

The Illinois Coin Machine Operators Association invited Mann to the IML conference.

October 4, 2009

Gambling in Massachusetts may push through

Casino gambling in Massachusetts may well be on its way to becoming a legislation. With the backing of House Speaker Robert DeLeo, Gov. Deval Patrick and Senate President Therese Murray, casinos in Massachusetts are almost a sure bet.
The governor and the legislative leaders are frantically seeking for new ways from which to draw resources given that government revenue is in such a state of deterioration. And they believe that the casino industry is one good new source of money.

DeLeo sees casinos as “economic development” and a study from the Boston Chamber of Commerce has projected 11,500 jobs for building construction, 21,000 jobs for casino work and $429 million a year in state tax revenue. Murray is concerned about the “hundreds of jobs” and “hundreds of millions of dollars” from Massachusetts residents that go to casinos in Connecticut.

But, the Rockefeller Institute of Government, in its report, told state legislators that, "new gambling operations that are intended to pay for normal increases in general state spending may add to, rather than ease, long-term budget imbalances." And there are also legislators who remain firm in their opposition and who have consistently resisted any move toward legalization of casino gambling in the state, like Sen. Susan Tucker of Andover who says casino gambling is a “reverse Robin Hood”, meaning, taking from the poor to give to the rich.

Unfortunately, the reality is that the casinos today are in such a bad shape because of the slumped economy. Casino revenues are falling and there is competition every which way you look. As a matter of fact, report from the Rockefeller Institute of Government shows that revenue from authorized commercial casinos (tribal casinos excluded) is 2.8 percent less in fiscal year 2009 than in 2008, the first drop ever recorded.

And here are some tales of woe from casinos in nearby states: slots revenues at Foxwoods and Mohegan Sun casinos in southeastern Connecticut dropped 7.5 percent in the first half of 2009 as reported by the Providence Journal. Foxwoods has laid off more than 700 workers, and Mohegan Sun laid off 500, the New London Day said. The Pequot council chairman said Foxwoods is in “dire financial times” and has a debt of around $2 billion. The Twin Rivers slot casino in Lincoln, Rhode Island also has debts almost ten times the assets, and has gone bankrupt. If it will be turned over to the hands of new owners, the new operators will definitely ask to reduce the state’s 60 percent share of revenue which could be a setback for Rhode Island since gambling is the state’s third largest source of revenue.

Additionally, on the matter of competition from nearby states, Massachusetts has to consider these developments: Pennsylvania and Delaware are adding table games to its slots casinos, New Hampshire is thinking of putting slots at racetracks, and Ohio will vote this November on the issue of authorizing casinos in its four cities.

October 3, 2009

Fixing online gambling issues

The online gambling industry has seen much growth since its inception about ten years ago. Coupling this continuous expansion are the efforts made by online gambling operators to build and strengthen the industry’s legal framework. Internet gambling has peaked and is surely buildings its own economy. However, the industry is facing just as much obstacles as it is enjoying its relative success.

One of these obstacles comes in the form of legislative and regulatory measures. The processes involved in imposing and maintaining the regulatory measures governing remote gambling are quite complex and might leave average individuals confused. There are multiple variables involved and the presence of several jurisdictions might ensue in conflicting policies and legal “black holes”. Not only are online gambling operators pressured to find their way through the labyrinth of laws and jurisdiction, lawmakers are also faced with the challenge of creating a stable and clear regulatory structure despite all these conflicts and lack of clarity.

The legislative maze in the online world was built relative to how activities and operations take place in the physical world and that has not made it any easier for both lawmakers and online gambling operators because of the Internet’s incessant and rapid development. Enforcing laws regularly is thus becoming a very tough undertaking.

Despite all these complications, however, Malta has strived to streamline the regulatory issues and has opted to pave a clear way through the tangles of legal loopholes and obstacles. Malta’s achievements in smoothing its Internet gambling operations include being the first member of the European Union to fully regulate its online gambling operators. In 2005, the country’s Lotteries and Gaming Authority introduced the Malta Remote Gaming Council, a forum, which aimed to provide a medium for facilitating discussions among all stakeholders, ISP providers and representatives of the legal and financial sectors of the Malta remote gaming industry.

The principles behind Malta’s efforts are founded on effectively and actively enforcing licenses, preserving the collective interests of Malta-based licensees as well as safeguarding the interest of players. The Lotteries and Gaming Authority is currently renowned as the leading jurisdiction in remote gaming and this esteem was the result of Malta’s successful application of its principles.

The Online gambling industry is slowly building into a vast empire. In 2008 alone, the industry generated revenues of €15.6 billion, worldwide. To aid the progression of this dynamic industry, gambling operators has made the establishment of a solid legal framework for operations a priority.

October 2, 2009

Future of US online gambling bleak

Tony Cabot expressed his views on the future of the online gambling industry in United States. At the International Masters of Gaming Law conference held in Amsterdam, last week, the online gambling legal expert implies that the future is bleak for online gambling in terms of getting it legalized in the US. And the legislations forwarded by Senator Robert Mendez and Congressman Barney Frank are only complicating matters.

Cabot expects “nothing to happen this year”. Despite all the support that Barney Frank’s bill is gaining from congress, Cabot believes the time is not right for the bill’s passage. He adds that “Barney Frank has already pushed his [legislative proposal HR 2267] back, and once we get into next year we will be into an election cycle. The Democrats in particular are under a lot of stress at the moment and the last thing the Democrats want to get involved in is an unpopular fight because the Republicans would be all over it.” He also predicts the chance of the bill’s passage to be about 5%.

Additionally, Cabot also believes that giant poker sites like PokerStars and Full Tilt Poker will be significant players in keeping Rep. Frank’s bill from passing. The theory presented is that because the two poker sites are currently accepting US players, there is possibility that they will be ranked low on the list of online casino operators that could possibly be granted with licenses in a reformed US gambling industry.

Cabot also suggests that the state governments should have jurisdiction over the issue at hand and not the federal government. Despite this, however, efforts made by California and Massachusetts legislatures have not reaped any success any more than it did in the federal context.

Sen. Mendez’s proposal, despite having successfully conveyed the idea that many online gambling games somehow require a degree of skill, has not garnered the support of the Democrat Majority Leader, Harry Reid. This will only further blockade the proponents from obtaining any results. As Cabot puts it, “There is a lack of consensus. The senior senator from Nevada (Reid) will not budge until there is a clear consensus on the issue, and this is not present. Harrah’s wants to push this hard because they own the World Series of Poker. [But] Steve Wynn… has hired lobbyists to go against it.”

Cabot’s conclusion is that “We have the conservative republicans and the Ralph Nader Democrats who oppose the bills – so it doesn’t even break on party lines. And one thing we know about the United States is that it is a lot easier to kill something than what it is to get something passed.”

October 1, 2009

Casino to open at Greenbrier Resort

The Greenbrier is a luxury resort and hotel in White Sulphur Springs, West Virginia. The resort has recently been sold and has now a new owner. Resort officials are planning to open Tavern Casino, as the resort’s temporary, initial gambling facility. The opening is scheduled this week until approval from the West Virginia Lottery Commission.

“We understand that the hotel would like to offer limited games by the first of October," Lottery spokeswoman Nancy Bulla said. "But as a regulatory agency we have to be absolutely certain that every I is dotted and T is crossed under the statute and rules and regulations governing The Greenbrier's casino operation. The rules and regulations cannot be compromised," she said.

Greenbrier spokeswoman Lynn Swann said that table games like three-card poker, roulette and blackjack will be offered in the 3,700 square-foot facility that will be limited to the members of the Greenbrier Sporting Club, the resort’s tennis club, convention attendees and resort guests.

Slot machines will also be available later in October, while waiting for the proper approval. Scientific Games will provide the machines. Bulla said the casino could open without the slot machines, but the table games should conform to the rules and regulations of the lottery commission.

"There are a list of things that have to be met under the statute," Bulla said. “Casino regulations require a count room, a vault, a specific security camera and online phone lines between the Greenbrier and the Lottery's central system. Also, machines must have software that has been tested and certified. The list literally goes on and on," Bulla said.

Officials of the West Virginia lottery commission will schedule a walk –through with the hotel staff to monitor the casino’s progress.

The historic hotel filed for bankruptcy in May and shortly after that, it was sold to Greenbrier County businessman Jim Justice. Many say opening a casino at the luxury hotel would help keep it going.

"The Lottery is doing everything it can to support the Greenbrier and to move it forward toward opening casino games. If they're in compliance with the statute and the rules and regulations, we'll give them the go-ahead," Bulla said.

The Casino will eventually open at the Greenbrier in April 2010 that will offer gambling in its 80,000 square-foot facility, with a restaurant and retail space. By that time, the Tavern Casino will only be used for groups or private occasions.

September 30, 2009

Gambling expansion in Ukraine

Gambling centers are anticipated to rise in several Ukrainian cities. Despite a previous law enacted against operating gambling businesses in Ukraine, the State Committee of Ukraine for Regulatory Policy and Entrepreneurship has passed a proposal that would finally allow the establishment of gambling firms in cities like Kyiv, Donetsk, Odesa, Kharkiv, Lviv and in Crimea.

The committee’s website features the draft law “on gambling” responsible for the change. Posting the draft law online has made it available for public consideration.

The adoption of this draft law will not only allow the placement of gambling establishments in select areas, particularly in retail centers and entertainment and culture complexes but also pave the way for the legal regulation of social relations in the gambling enterprise. It will also be responsible for setting the allowable number of establishments as well as the special areas where the activity will be allowed. Finally, the draft law also seeks to identify the peculiarities of the licensing process of the gambling industry and the requirements and standards to be complied with by the licensed parties. All these are aimed at the minimization of illegal gambling operations and improve control over the organization of gambling industry and the allocation of its revenues to the state budget.

The law "On Prohibition of Gambling Business in Ukraine" No. 1334-VI (the Gambling Prohibition Law) went into effect on 25 June 2009 and was published in the Ukrainian press. Its provisions include temporarily prohibiting any gambling activities and operations in Ukraine.

A number of negative effects have ensued after the Gambling Prohibition Law took effect. Some of these include the suspension of granting gambling licenses and even the termination of recently purchased licenses. Terminations occurred on the date the Gambling Prohibition Law took effect.

Despite all the complications that have risen, however, the law has not indicated how it will address the issues. The Gambling Prohibition Law has not stated whether reimbursements for the licensees should be made available. There is also no mention of what mechanism for compensation will be applied.
The prohibition will last until a legislation indicating special zones that will allow gambling activities and establishments is drafted. The Cabinet of Ministers was tasked with drafting within a period of three months the special law on the gambling business in Ukraine.

September 25 was the date set for the expiration of an elaboration of a special draft law on the gambling business in Ukraine and special territories for the said gambling activities.

September 29, 2009

Online casinos provide jobs

It is very essential for online casinos to have people responsible in every process and aspect in the operation of their company. Since handling and monitoring an online casino is no easy task, it should be a must for website developers to be on edge all the time. Since the growth of online casinos, competition has risen greatly and in order to make sure that the games they offer attract players, online casinos need