Author: Casino Connection Staff

Developer Cherry Hill Towne Center Partners has said in a court filing that it’s close to a deal with a company to operate a sportsbook at the former Garden State Park site in Cherry Hill, New Jersey. But the former operators of the track are trying to block the opening of a sportsbook at the site.

The defendants, including Greenwood Racing, operator of the Parx casino north of Philadelphia, say that a 1999 document permanently forbids any wagering activity on the site other than by Garden State Park Racing and its affiliates or successors. Greenwood has asked a judge for a preliminary injunction against the developer. A ruling could come in the next two months.

The fight began after New Jersey passed a sports betting law in 2018 that allowed sportsbooks at racetracks, including two that are closed—Garden State Park and Atlantic City Racecourse.

Garden State Park hasn’t seen racing since 2001. Since then, Cherry Hill Towne Center Partners has developed part of the area as a mixed-use residential and retail center. The company sued last year for the right to open a sportsbook on the site of the former racetrack’s oval.

According to the Associated Press, the developer wrote in a court brief that it “expects to select one of the potential sports wagering operators shortly” and has begun to build a facility to hold a sportsbook.

The company claims the dispute over the 1999 document can’t stop it from applying for a sports betting license with the state and also noted that one of its controlling members, Jack Morris, also is an owner of the Hard Rock Atlantic City casino and is in good standing with state casino regulators, the AP report said.

In a recent conference call with analysts, Churchill Downs Chief Executive Officer Bill Carstanjen revealed that the Louisville facility will enclose the racetrack’s first turn area to build a hotel, a historical horseracing machine facility and premium seating for live racing. Carstanjen did not indicate the cost of the project but said the expansion should be completed in time for the 2021 Kentucky Derby.

In addition, he said Churchill Downs plans to expand Rivers Casino Des Plaines near Chicago; it purchased a 61 percent stake in the property for $407 million in March, and also will pursue of one of six new casino licenses allowed in Illinois’ new gambling expansion bill.

The plans highlight the success of the 10-month-old Derby City Gaming venue at Churchill Downs, featuring 1,000 historical horseracing machines. The location netted Churchill Downs $9 million on $21 million in revenue in the April-June quarter. “You can’t argue with a 42 percent earnings margin. It’s great,” Carstanjen said. The new historical horseracing facility also could offer up to 1,000 terminals, or more if the company can prove to the Kentucky Racing Commission “there is a market.”

Carstanjen added, “We obviously have a tremendous opportunity to utilize a hotel and that infrastructure around the Derby, but really, our meet as a whole. Anytime the Churchill Downs Racetrack is running is an opportunity to help fill the hotel. A big driver of the hotel will also be the attached historical racing machine facility. As you’re familiar, when you have an amenity like a hotel, you can keep guests longer and you can attract additional guests to the facility.”

Since 2010, Churchill Downs has spent $180 million on renovations and expansions, including a rooftop lounge, starting gates, new infield gate, large parking lot and new entryway on the racetrack’s west side.

Carstanjen said the Rivers Casino project will include adding 800 positions, for a total of about 2,000. The company will pay $24 million in licensing fees next year for the additional games allowed in the new gambling legislation, lifting the limit from 1,200 positions. Churchill Downs also will build a sportsbook, extend the parking garage and expand the gaming floor.

“To install the full 800 positions, Rivers will need to expand the existing building footprint, construct an extension of the parking garage and invest additional capital to support the expansion. However, Rivers can install approximately 200 to 250 additional positions quickly within its existing space,” said Carstanjen.

He noted the company also will apply for up to 1,200 gaming positions at its Arlington International Racecourse. The new expanded gambling law allows racetracks to add slots and table games. Carstanjen said, “The timing and full scope of the plan are still being sorted out.”

Also, he said Churchill Downs will pursue one of Illinois’ six new casino licenses at a cost of $10 million, but didn’t specify if the company would target the 4,000-position Chicago casino or a location in the south suburbs, Rockford, Danville, Waukegan or Williamson County.

“Illinois is really a puzzle because for anybody involved in the jurisdiction trying to figure out their plans—there are things you don’t know, like what your competitors are going to do, how many positions they might apply for and precisely where some of these new casinos are going to go, particularly in the Chicagoland market,” Carstanjen said.

Since it opened in 2011, Rivers Casino has generated far more revenue than any other Illinois casino. It posted about $442 million in adjusted gross receipts in 2018 and took in more than $219 million by the end of June, according to Illinois Gaming Board records.

Senator John Hoeven, a North Dakota Republican and chairman of the Senate Committee on Indian Affairs, announced last week that the committee has approved the nomination of E. Sequoyah Simermeyer to serve as chairman of the National Indian Gaming Commission (NIGC).

“The committee unanimously voted to confirm Mr. Simermeyer, a member of the Coharie Indian Tribe of North Carolina to serve as chairman of the National Indian Gaming Commission,” said Hoeven in a statement. “Given his legal background, work experience, and current position at the NIGC, Mr. Simermeyer is well qualified for this appointment. I look forward to the moving his nomination to the full Senate for confirmation.”

On his nomination by President Donald Trump in June, Simermeyer received endorsements from many quarters including Interior Secretary David Bernhardt, who called him “the ideal candidate… I urge Congress to confirm him quickly.”

Earlier in his career, the nominee was counselor and deputy chief of staff to the Department of the Interior’s Assistant Secretary for Indian Affairs. He was also counsel for the Senate Committee on Indian Affairs.

Simermeyer is a graduate of Dartmouth College, Vermont Law School and Cornell Law School. Oklahoma attorney Gary Pitchlynn told Casino.org that the NIGC chairman “sets the tone for the relationship of the commission with tribes while policing the industry” and has “significant authority” under IGRA as the “first-line decision maker” in enforcement actions. He said Simermeyer “has a great deal of experience working with Congressional staff and tribes and can provide strength and credibility to the commission’s relationship with both.”

Colorado attorney Rory Dilweg said Simermeyer “has always been a fierce and compassionate advocate of Indian tribes. I expect he will remain so in his new position as chairman even while he must uphold the letter and intent of the Indian Gaming Regulatory Act.”

The NIGC oversees some 512 tribal gaming venues operating in 29 states. There are 114 full-time employees who work out of seven regional NIGC offices. The commission’s budget was about $25 million in the 2019 fiscal year. Its operations are funded through fees paid by tribal gaming operations.

If approved by the full Senate, Simermeyer will succeed Jonodev Osceola Chaudhuri in the role. Chaudhuri, a member of the Muscogee (Creek) Nation, left to become chairman of the Indian Law and Policy Group at Quarles & Brady in Washington, D.C.

The NIGC has jurisdiction over 512 licensed gaming establishments operated by 246 Indian tribes in 29 states. In fiscal year 2017, tribal gaming revenues reached approximately $32.4 billion. The commission currently has 114 full-time employees in seven regional offices wand operates with an annual budget of $25 million. The budget is funded through fees paid by tribal gaming operations and can be up to 0.080 percent of gross gaming revenue in keeping with the Indian Gaming Regulatory Act.

Unless Genting Malaysia acquires a controlling stake in Empire Resorts with plans to take the parent company of New York’s struggling Resorts World Catskills private, Empire has informed the Securities and Exchange Commission that it may have to declare bankruptcy.

Genting Group already exercises indirect control over publicly traded Empire (Nasdaq: NYNY) through Kien Huat Realty III, a family trust headed by Genting Chairman and CEO Lim Kok Thay and Empire’s majority shareholder.

The acquisition appears to signal that the global resort conglomerate has decided to take a direct role in managing the fortunes of Resorts World Catskills, which opened in February 2018 as the largest and most expensive of New York’s four new commercial casinos. It has failed to live up to its billing as the market’s category-killer and has lost millions of dollars every quarter.

Genting Malaysia, the group’s Kuala Lumpur-traded subsidiary, has proposed to invest US$128.6 million in cash through its Genting USA subsidiary to buy 13.2 million of Kien Huat’s Empire shares, representing roughly a 33.5 percent of Empire’s equity.

Genting USA and Kien Huat also propose to acquire the outstanding shares held by Empire’s minority shareholders for $9.74 a share, which will lead to Empire’s privatization as a joint venture between Kien Huat and Genting USA.

With 332 rooms and suites, 1,600 machine games and 150 live table games, Resorts World Catskills is, for all intents and purposes, Empire’s sole meaningful asset. The company closed its 1,100-machine racino at nearby Monticello Casino and Raceway earlier this year, and the ailing harness track that remains also faces an uncertain future.

Empire, meanwhile, has been losing money for years—2018’s net loss exceeded $138 million—and Resorts World has been its biggest disappointment. Despite being the closest of the commercial casinos to New York City, about 90 miles north of the metropolis in Sullivan County, its daily slot win is the lowest of the group, and earlier this year, it was granted approval from state regulators to slash its machine gaming inventory by 550 units from the 2,150 it opened with.

Kien Huat says the company is “unable to become financially self-sustaining” and stands at a “critical juncture”—thus the move by Genting Malaysia to take the operational reins.

Genting Malaysia said the acquisition will “better position” the Resorts World brand in the Northeast gaming market “through more effective cross-marketing” with Resorts World New York City, the mega-racino at Aqueduct Racetrack in Queens that is owned by another Genting Group subsidiary.

Genting said also that it plans to save money “by eliminating duplicative costs at Empire and RWNYC.”

When Jon Sloane first heard that the Illinois state legislature had approved an expanded gaming bill, he said, “Frankly, our first reaction was now let’s hope Governor Pritzker signs it.”

Other gaming bills under previous governors had come and gone, said Sloane, spokesman for Fairmount Park racetrack in Collinsville. “But we were confident (Pritzker) would sign it,” said Sloane. “He had been very encouraging before the bill passed.”

Not only did Pritzker sign the bill, which allows the 94-year old racetrack to offer casino-style gaming and sports betting, he also stopped by to celebrate. At the ceremony, Sloane said, Fairmount Park honored a 94-year old employee who has worked at the track 67 years.

The changes at Fairmount Park won’t happen immediately. “We hope to build a casino in 2020, but keep in mind, the first thing is various administrative bodies have to set up the parameters and procedures. It’s a massive undertaking at the beginning,” Sloane said. “But then our intent is to be up and running as soon as possible.”

Fairmount Park owners will invest about $50 million to upgrade the venue, he said. “It’s going to be a very big deal. It’s very exciting. We’ve been trying at least 20 years to get just slots, and this bill gives us everything we possibly could have wanted. But it’s still going to take a great effort and a big investment to physically transform the place.”

Pritzker said the expanded gaming measure will result in “more horses, more races, more days—and that means more jobs to this area.” State Rep. Jay Hoffman, whose 113^th House District includes Fairmount Park, said, “The beauty of the bill is it also provides a very specific number of live races required to receive the additional gaming. So there has to be a minimum of 100 racing dates, up from 41.” In the past, he said, some of those races had fields of only four horses.

Hoffman old GGB News, “Illinois is the only state in the U.S. with casino gaming and horseracing without either revenue-sharing to help the racing purses or gaming at the tracks. As a result, the horseracing industry has gone through a steady decline. At Fairmount, we were just hanging on against great odds. We couldn’t offer the purses that attract the top horses. They’d go to Arkansas or Indiana to get bigger purses. This new law is a total game-changer.”

Hoffman, who was instrumental in getting the new law passed, explained why the timing was right, at last. “Three things occurred that made it a reality. First, we got a new governor who was interested in making sure the horseracing industry remained viable. Second, the gambling revenue will help pay for the governor’s $45 billion infrastructure program.”

Third, Hoffman said, “We were very vocal that we wouldn’t support further casinos, including one in Chicago, without making sure the horseracing industry would benefit from allowing expanded gaming at the racetracks. So there was the willingness and the need to find revenue for a capital bill. It all came together, things we had been working on for two decades.”

Sloane said casino gaming and sports betting are sure to attract new visitors from the St. Louis area. Pritzker emphasized, however, “Our goal is to expand the market, not to cannibalize from other casinos.”

Despite the challenges it’s faced, Fairmount Park has consistently had higher attendance per racing date than the other two tracks in Illinois, Arlington International Racecourse in Arlington Heights and Hawthorne Race Course in Cicero. “There’s a lot of interest in horseracing in the metro St. Louis area,” said Sloane. “All you have to do is go to Fairmount Park on a Tuesday afternoon.”

Can the lawmaker occasionally be spotted in the stands? “I enjoy it but I’m not very good at picking horses,” Hoffman said. “I like watching the crowds.”

Blackjack players have filed a class action lawsuit against MGM Springfield in Massachusetts, saying it’s paying less than state regulations permit on winning hands at some tables.

The lawsuit, filed last week in Hampden Superior Court, echoes a similar suit filed recently against Wynn Resorts’ Encore Boston Harbor.

MGM Springfield denies the allegations and said it follows state regulations on the payouts. “We comply with all Massachusetts Gaming Commission regulations and feel confident that this lawsuit will be found to have no merit,” said MGM Springfield spokesman Saverio Mancini.

The lawsuit alleges that the casino paid customers odds of 6-to-5 when a player was dealt a blackjack. According to Massachusetts Gaming Commission rules, winning bets pay out 1-to-1 unless the player is dealt a blackjack, in which case the winning bets is paid out at odds of 3-to-2 or odds of 6-to-5. The odds are posted at each table.

In response to the suit against Encore, the Massachusetts Gaming Commission investigation and Enforcement Bureau issued a memo July 18 explaining the two different blackjack variations and it included photos of the odds on the blackjack table.

Elaine Driscoll, spokeswoman for the Massachusetts Gaming Commission, told MassLive.com that the commission is aware of the lawsuit and is determining the next steps.

The Chicago Director of Planning and Economic Development received six proposals for a Waukegan, Illinois casino by the August 5 deadline. The proposals include one from Potawatomi Hotel & Casino, operators of a Milwaukee gaming resort and Warner Gaming, partnering with Tap Room Gaming owner and former state Senator Michael Bond.

Potawatomi Hotel & Casino is owned and operated by the Forest County Potawatomi Community in northern Wisconsin. Chief Executive Officer and General Manager Rodney Ferguson said, “Having successfully operated in this gaming market for several decades, Potawatomi Hotel & Casino is a natural fit to develop this project and create the entertainment destination that Waukegan is seeking.” He noted its Milwaukee casino is one of the largest entertainment destinations in the Midwest with 6 million annual visitors.

Ferguson said the Waukegan Potawatomi Casino would be located at the Fountain Square development in Waukegan; the city has been holding the 32-acre site it owns specifically for a possible casino. He said a Waukegan casino would likely impact Milwaukee casino revenue, but that would happen if the Potawatomi or another developer operates the casino. “Our job is to minimize the impact,” he said.

Bond, noted for record-setting spending during the Waukegan alderman races this spring, said he expects the city’s selection process to be “fair, open and transparent.” He said his group’s proposal has the “winning formula” since it emphasizes partnerships with local restaurants, local hiring and the “great team” it established.

Bond’s partner, Warner Gaming, is noted for its locally specific approach to developing its facilities, Chief Executive Officer Bill Warner said. He stated his company could set up a temporary casino within four months of receiving a gaming license from the state—but only if it’s the city’s sole selection. Then construction could begin on the permanent location as early as April 2020. However, Warner said, if the city chooses to send several choices to the state, the schedule could be pushed back up to a year and a half.

Next, Waukegan city staff will vet the casino-license applicants and come up with a short list around August 26. Interviews with the remaining candidates will take place after Labor Day and a public hearing will be held in September. The Waukegan city council will forward their chosen finalists to the Illinois Gaming Board by October 25.

On August 9, Rivers Casino Pittsburgh marked its 10th anniversary.

Rush Street Gaming and Walton Street Capital rescued a stalled Pittsburgh casino project from bankruptcy, rebranded it as Rivers and opened on August 9, 2009 with 3,000 slot machines, a handful of restaurants and a significant list of community commitments.

Ten years later, Rivers Casino Pittsburgh is among the city’s most vibrant and vital entertainment destinations thanks to continually expanding its value proposition and ongoing property-wide enhancements. “Time and time again, it’s proven to be a great place to work, a strong economic engine and a proud community partner,” said a press release from the company.

Today, Rivers Casino Pittsburgh welcomes approximately 3 million guests annually. Rivers has repeatedly been recognized with awards for progressive workplace development initiatives, its steadfast community engagement, its restaurants and its robust gaming floor—a favorite of slot players, table players and poker players alike.

“A decade ago we saw great potential for Rivers Casino in Pittsburgh,” said Rush Street CEO Greg Carlin. “And we still do. The gaming industry is always evolving and increasingly competitive, and we’re committed to keeping Rivers Casino Pittsburgh at the forefront. We’re grateful to the community for its continued support.”

Rush Street Gaming and its affiliates own and operate Rivers Casino Pittsburgh, along with three other market-leading casinos in Philadelphia, Pennsylvania; Des Plaines, Illinois; and Schenectady, New York.

In the past year alone, Rivers Casino Pittsburgh opened gourmet burger and shake restaurant FLIPT; added the Event Center, a new 25,000-square-foot grand hall for concerts, expos and galas; debuted the state’s top-performing Rivers Sportsbook; launched mobile and online sports betting; and recently unveiled plans for the Landing Hotel, opening in 2021.

Rivers Casino General Manager Bill Keena said, “Rivers’ tremendous team members have been instrumental in advancing our shared vision. For example, we built and launched our temporary sportsbook in 43 days. And now we’re expanding with a permanent state-of-the-art sportsbook opening this fall, plus adding a hotel. Our team members move mountains.”

Rivers has celebrated its 10th anniversary all summer long with a series of anniversary-themed promotions, such as a $10,000 cash drawing, a $10 Monday-Tuesday lunch at the casino’s popular Grand View Buffet, $10 in free slot play for $10 donations to 10 local charities, and an anniversary weekend concert with Frankie Valli and The Four Seasons, Aug. 10 and 11.

Rivers’ approximately 1,700 employees have voted Rivers Casino a “Best Place to Work in Pittsburgh” and “Top Workplace” multiple times since opening. Rivers has lived up to its commitment to hire local, with 93 percent of its workforce from Pittsburgh and the surrounding area. Approximately 40 percent of Rivers’ total workforce are women, many in executive and management positions. And 33 percent are African American, Hispanic or Asian, comparing very favorably to the diversity of Allegheny County overall.

Approximately 164 employees have been with the casino since Day One, and Rivers has announced more than 1,400 internal staff promotions since opening.

Day One employees and their guests have been invited to a special 10-year appreciation and recognition dinner on August 13, during which Rush Street Gaming and property leaders will be on hand to personally thank them for their contributions.

Since opening in August 2009, Rivers Casino has generated more than $1.5 billion in total tax revenue for the city of Pittsburgh, Allegheny County and the state. Of that amount, $11.5 million has been distributed to Pittsburgh and Allegheny County libraries.

The Landing Hotel Pittsburgh, a $60 million privately funded addition that breaks ground this summer, is expected to generate approximately $10.6 million in new annual tax revenues for the city, the county and the state. The Landing Hotel will bring approximately 128 permanent new hotel and casino jobs, along with 1,400 temporary construction jobs. Local construction firm Massaro Corporation will build the hotel.

Importantly, Rivers has also contributed $75 million to fund construction expenses for the NHL Pittsburgh Penguins’ PPG Paints Arena to date, and will continue to pay $7.5 million annually through 2038.

Over the years, Rivers has contributed $5 million to various Pittsburgh and Western Pennsylvania nonprofits, benefiting more than 100 local charities annually. Rivers Casino also has contributed $3 million to the Northside Leadership Conference and $3 million to the Greater Hill District Development Growth Fund.

Rivers Casino “Community Champions” volunteer more than 2,000 staff hours annually around town for painting shelters, riverfront cleanups and more. The casino chooses a monthly charity partner for featuring and fundraising on its gaming floor, and Rivers Casino’s leadership team is engaged on nonprofit boards of directors throughout the city.

The Las Vegas Raiders’ $1.8 billion Las Vegas home celebrated its topping off last week with the announcement that it will be called Allegiant Stadium. The Vegas-based airline emerged victorious from months of negotiations between the NFL team and other companies vying to place their brands on the 65,000-seat domed stadium that’s set to open by next year’s NFL season.

“It speaks volumes about the Raiders and their commitment to Southern Nevada to be able to pick a local Las Vegas-based company,” Allegiant Air Chief Marketing Officer Scott DeAngelo said. “There is clear demand for Las Vegas as an NFL destination.”

At a ceremony held at the carrier’s Summerlin headquarters, Raiders owner Mark Davis told Allegiant CEO Maurice Gallagher, “The Raider family is very tight, and we’re just excited for you to join ours. I think we’re in the middle of a great relationship. I look forward to learning a lot more about the Allegiant brand. We’ve got 30 years ahead of us, so let’s make the best of it.”

Raiders President Marc Badain saluted the airline, saying, “What you’ve built here is very, very impressive, and we’re really excited to see how you all grow and grow with us. Obviously, the stadium project will raise your brand and raise awareness (of the brand).”

DeAngelo said he expects more Allegiant flights to and from Las Vegas on weekends the Raiders have home games.

Founded in 1997 as WestJet Express, Allegiant currently flies direct from Las Vegas to eight markets with NFL teams.

“We did a lot of research and Allegiant fans are NFL fans,” DeAngelo said. “We’re here to make Allegiant Stadium and Raiders games more accessible to the customers and fans we all serve.”

The stadium, located at the southern end of Las Vegas Boulevard, just west of the Strip near Interstate 15, is reported to be 55 to 65 percent finished and on target to open on time for the 2020 football season.

The venue, which will also host the home games of the football team of the University of Las Vegas, Nevada and other large-scale events, was funded in part by the Raiders and in part by taxpayer-backed bonds.

Tim Wilmott joined Penn National Gaming in 2008 when it was a relatively small regional casino company, controlled by Peter Carlino, who was the chairman and CEO at that time. The company had completed the purchases of Hollywood Casino Corp. and Argosy Gaming before Wilmott came on board.

Wilmott, who worked his way up through the Harrah’s organization, first as a prestigious president’s associate and later as a regional vice president, was the perfect candidate to organize the organizational efficiencies that were required following those mergers.

Wilmott has also be chairman of the American Gaming Association since 2018, and his term is about to expire.

In 2012 Carlino set up the first gaming real estate investment trust (REIT) Gaming and Leisure Properties Inc. (GLPI) that set the stage for subsequent acquisitions,.

Under Wilmott’s watch, the company bought the M Resort at the far southern end of Las Vegas Boulevard and in 2015 came closer to the Strip with the purchase of the Tropicana.

But the big buy came in late 2018 when Penn bought Pinnacle Entertainment for $2.8 billion in cash and stock. Several other properties were sold to obtain regulatory approval, but the GLPI connection made that deal possible.

Last year, Penn went to another REIT, Vici Properties, a Caesars spinoff, the buy the Margaritaville Casino in Bossier City, Louisiana and the Greektown casino in Detroit.

Replacing Wilmott will be Jay Snowden, another Harrah’s/Caesars alumni, who joined Penn as COO in 2014, becoming president in 2017.

Wilmott says the timing was right for the transition.

“It was important for me to leave Penn when it was well-positioned to continue to grow and create shareholder value for the foreseeable future,” Wilmott said. “We now have a geographic footprint that in the long-term will create value for our shareholders. I’m also leaving at a time where we have a very strong management team that continues to run the businesses more efficiently and more effectively than anyone else in the regional gaming space, as evidenced by our results today. And finally, it was important to me to be able to turn over the keys to someone I can trust, who can take Penn to higher levels of excellence and value creation for shareholders.”

Penn Chairman David Holder said the chemistry was right.

“Tim and Jay have partnered closely over the last eight years, laying a strong foundation for sustained long-term value creation at Penn National, making Jay ideally suited to serve as our next chief executive officer,” he said.

Snowden said he’s ready for the challenge.

“Along with our board, senior management, corporate and property teams, we will continue to build on the foundation laid by (former Penn Chairman and CEO) Peter Carlino and Tim Wilmott,” Snowden said. “We are entering a very dynamic time for our company and I couldn’t be more excited, honored and humbled to lead this amazing company into the future.”