Author: Casino Connection Staff

PA Board to Hold Hearing on Parx Mini-Casino

Posted on February 26, 2019 by -

The Pennsylvania Gaming Control Board will hold a public hearing March 25 in Shippensburg Township, at which residents can comment on the proposal of Greenwood Gaming to open a mini-casino under Greenwood’s license for Parx Casino in Bensalem.

Mini-casinos, created by the state’s 2017 gaming expansion law, are limited to 750 slot machines and 40 table games, with bids for first round of licenses restricted to current land-based casinos. The satellite facilities are theoretically situated to serve areas where there are no current casinos. None can be closer than 25 miles to a current facility.

Parx Casino is proposing to build a mini-casino near Exit 29 of Interstate 81 in Shippensburg Township. Parent Greenwood has indicated the facility could be open as early as August 2020—a miniature version of the Parx casino, opening with an initial 475 slots and 40 electronic table-game terminals, on which patrons bet on the spin of a live central roulette game or other live games.

The new property would employ about 200 people, 160 of them full time. Construction would temporarily employ about 350 workers and have an impact of $60 million.

Greenwood Gaming paid $8.1 million to the gaming board one year ago for the license—not much more than the $7.5 million minimum— to locate a small casino within a 30-mile-diameter circle centered around a point in South Newton Township, Cumberland County. The company went to Shippensburg Township after failing to get Carlisle and South Middleton Township to revoke their votes to ban mini-casinos in their jurisdictions.

The Parx mini casino would compete with Penn National’s larger Hollywood Casino in Grantville.

The Monday, March 25 hearing will take place at 4 p.m. in the second-floor Spinnaker Room in the SU Conference Center at Shippensburg University.

Individuals or groups that want to share oral or written testimony at the hearing must register ahead of time, by noon March 22. Do so online at gamingcontrolboard.pa.gov; click the “Parx Casino Shippensburg Public Input Hearing” link under the QuickLinks section of the home page.

A list of all parties who have registered to speak will be posted on the board’s website beginning one week before the hearing. It will be updated.

Those who cannot attend the public hearing but want to submit written comments can do so prior to the hearing date through the same web site link, by e-mail to boardclerk@pa.gov, or by fax to 717-265-7416. Mailed comments must be postmarked no later than March 22, 2019 and mailed to:

PA Gaming Control Board
P.O. Box 69060
Harrisburg, PA 17106
Attention: Board Clerk

All information the board receives during the hearing will be included in the record upon which the board will grant or deny a license.

There will be another public hearing later in Harrisburg. Greenwood representatives will give oral arguments, and gaming board members can ask questions before making a licensing decision.

D’Arrigo Out at MGM

Posted on February 26, 2019 by -

MGM CFO Dan D’Arrigo has become the first casualty of the recently announced corporate policy to slice $100 million from staffing costs by 2020. D’Arrigo announced his retirement last week after more than 23 years with the company. He will also relinquish his board seat with MGM China.

“D’Arrigo has chosen to take advantage of the voluntary resignation program offered as part of MGM 2020 and will be resigning from the company and the board of directors of MGM China,” a company statement said.

While the company did not reveal D’Arrigo’s salary, he reportedly took home around $4 million over the past three years.

D’Arrigo will be replaced by current COO Corey Sanders, who had previously served as CFO for MGM Grand Resorts. Moving into Sanders COO spot will be Bill Hornbuckle, who is also the company president.

“In the more than 23 years of service to the company, Dan has shown great leadership and is leaving us with an exemplary set of professionals who will support Corey in his new role,” said MGM Chairman Jim Murren in the statement.

“Corey’s expertise and intimate knowledge of both the operational and financial structures of MGM Resorts make him uniquely positioned to integrate those operational and financial activities in order to drive efficiency and execute our strategic priorities.”

The labor savings is part of the “MGM 2020” plan that is designed to increase profitability and transform the company digitally.

“Part of MGM 2020 is clarifying responsibilities and driving change. We are creating the path to success through the transformation with this team,” said Murren.

Pennsylvania Sports-Betting Revenue Modest

Posted on February 26, 2019 by -

Pennsylvania’s six sports books, currently located at five land-based casinos and one off-track betting facilities, generated just $32 million in handle during January, holding around 8 percent in revenue.

While the books are still only getting started—Hollywood at Penn National, SugarHouse and Rivers operated for the entire month of January while Parx, South Philly Turf Club, and Harrah’s all started in January—the modest results still have many calling for the start of online and mobile sports betting, which would vastly increase wagering handle.

The implementation of online sports betting in Pennsylvania was thrown into question by the recent U.S. Department of Justice memo holding that interstate transfer of wagering info, and data supporting it, may violate the federal 1962 Wire Act.

New Jersey sports betting generated 80 percent of revenue from mobile and online platforms in January, according to the Legal Sports Report website. The state generated nearly $400 million in handle with 11 live apps.

Mobile wagering is legal in Pennsylvania under the 2017 expansion law. Pennsylvania Gaming Control Board spokesman Doug Harbach told Legal Sports Report last month that a mobile launch timetable is undetermined. “We continue to work with the casinos and their partners to get everyone licensed and equipment/software tested. Once the casinos are ready, we can launch,” he said at the time.

Meanwhile, a bill introduced in the Pennsylvania House of Representatives would channel all state revenue from sports betting to property tax relief for the state’s homeowners. The state’s share of sports betting revenue is 34 percent of revenue after winners are paid.

Pennsylvania homeowners already receive property tax relief from casino revenues. The states’ 2004 gaming law stated that revenue for gaming would go primary to lower property taxes, with funds going to the Property tax Relief Fund created by the 2006 Taxpayer Relief Act. In 2017, Pennsylvania voters approved a constitutional amendment that allows lawmakers to exempt state homeowners from paying any property tax at all—as long as the revenue is replaced by another source. So far, other sources, including casino taxes, have not generated enough to relieve property taxes altogether.

In filing the bill, Davis, provided a memo to the House of Representatives stating, “Pennsylvania homeowners continue to face rising property taxes. Seniors on fixed incomes are especially challenged by the issue, particularly those who struggle to pay for food and medications and still be able to afford to keep their homes. Given this difficult and challenging situation, it is incumbent upon us as concerned public officials to do everything we can to help provide much-needed property tax relief to our citizens.”

The bill would redirect Pennsylvania sports betting revenue from the General Fund to the Property Tax Relief Fund.

Rhode Island Senate Approves Mobile Sports Wagering

Posted on February 26, 2019 by -

The Rhode Island Senate voted 31-4 last week for a measure to make sports betting on mobile platforms legal at the state’s two casinos. The measure now goes to the House.

Visitors to the Twin River casino in Lincoln and Tiverton now can make sports wagers on the premises. Under the bill players would be able to use apps and place wagers anywhere in the state, with locations being verified by geofencing technology. They would have to register in person at one of the two Twin River casinos for a mobile account.

This provision was included because some legislators had warned that expanding to mobile gaming would require an amendment to the state constitution and a vote of the people. It also avoids running afoul of the U.S. Department of Justice’s recent Wire Act opinion.

Senate Bill 0037’s sponsor was Senate President Dominick J. Ruggerio, who predicts sports betting will be good source of tax income for a state whose third largest source of government taxes is gaming. It could be used to fund “critical state services,” he said. He added that currently 97 percent of sports betting takes place illegally.

Ruggerio added, “Expanding to mobile gaming would provide a convenient option for those wishing to enjoy this form of entertainment, and open up the economic benefits beyond the walls of Twin River.”

Last year on the day after Thanksgiving Rhode Island joined six other states in legalizing sports betting.

Despite the lopsided vote there were opponents, such as Senator Sam Ball, who worried that it would create a monopoly on sports betting to the Twin River properties.

Once the House approves the measure it is likely to be signed by Governor Gina Raimondo, who has already included $3 million from sports betting in her proposed budget for 2019-2020.

West Virginia Racinos Could Open Satellite Locations

Posted on February 26, 2019 by -

The West Virginia House of Delegates will consider House Bill 2901, a measure that would allow the state’s four racetrack casinos to operate satellite locations within their home counties in any building they own or lease; the site could offer table games, slots, sports betting and possibly simulcast racing but not a racetrack or hotel.

Under the bill, the original host city would continue to receive its due portion of revenue and any revenue generated by the new site would be divided between the original and the new host city.

The West Virginia Racing Association supports the bill. Association President John Cavacini said Delaware North, owners of Wheeling Island and Mardi Gras casinos, would like to open a satellite location at the Highlands shopping, dining and entertainment development just outside of Wheeling. He said the company is concerned about diminished traffic at Wheeling Island from annual flooding and pending major construction work on the Interstate 70 bridges. Cavacini said none of the other racino owners have expressed an interest in satellite locations.

State Del. Erikka Storch said Wheeling Island Casino will face substantial losses when I-70 construction through Wheeling starts later this year. “All we’re trying to do is, for once, get in front of what we know is coming,” she said. Storch said Wheeling Island is difficult to access from I-70, even without road construction. She added it often must close due to flooding and competes with two Pittsburgh-area casinos.

The West Virginia Lottery would have to approve licenses for the satellite locations, assuring local ordinances and zoning issues are complied with.

Virginia House, Senate Disagree on Casino Study

Posted on February 26, 2019 by -

The Virginia legislature had until Saturday, February 23 to determine how the state will study casino gambling and sports betting. The House and Senate each introduced bills to study the issue after the Senate introduced a bill to allow residents in Bristol, Danville, Portsmouth, Norfolk and Richmond to hold voter referendums on whether they want a casino in their area. Economic development studies In Bristol, Danville and Portsmouth estimated casinos would create more than 15,000 jobs and generate $100 million in local tax revenue by the seventh year.

Earlier in the week, the House Rules Committee voted 12-5 to replace SB1126 with a version establishing a gambling study commission. SB1126 had been sponsored by state Senator Louise Lucas and state Senator Bill Carrico and approved by Senate 28-12.

Carrico said a casino “would be a huge game changer for Southwest Virginia and for the city of Bristol.” However, he said if voters reject a casino, “there’s no reason to spend money on the study. I never wanted to do a statewide referendum on these issues because I don’t want Northern Virginia telling Bristol what they can have,” Carrico said. Changes to his original bill, SB1126, require the voter referendum to be held after the Joint Legislative Audit and Review Commission completes the study, before November 1, 2019. 

Carrico said the Senate study would at least keep Bristol’s plans “on track. It takes 18 months to build a facility. Knowing that we’re moving in that

direction the developers can still look at how they would approach that.”

The modified Senate bill would have directed the Joint Legislative Audit and Review Commission to conduct the review of gambling and report its findings by November 1, 2019. It also would have established the framework for oversight by the Lottery Board and set up a time frame for referenda in Bristol, Danville and Portsmouth, the cities listed in the original bill, plus Norfolk and Richmond where the Pamunkey Indian Tribe is considering locating a casino.

The House substitute bill, HB2321, introduced last month by state Del. Christopher Peace, removes all references to a voter referendum, Lottery Board oversight, proposed tax rates and distribution of revenue. The substitute bill would establish a 15-member Gaming Study Commission to “analyze the current gaming industry” and present a report to the General Assembly by November 1.

Supporters of the Bristol Casino said in a statement, “This is all part of the legislative process, and the House and Senate will need to work out their differing versions of the legislation. When the General Assembly adjourns February 23, we are optimistic that the final outcome will provide Bristol, and the other impacted communities, a way to continue the momentum in making these projects a reality.”

The House version of the bill has not yet been heard in the Senate. The House bill, HB2321, would include a study without a voter referendum. Bill sponsor state Del. Chris Peace said, “You don’t want to pick the winners and losers before they have a chance to study the framework.” Peace said his version of the bill would allow a “holistic approach” to a study. “The House plan calls for a comprehensive study of all gaming, not just the bills introduced this session,” Peace said.

A separate commission would oversee the study, also to be completed by November 1, 2019, which would review financial and social impacts of gambling.

Florida Lawmaker Proposes Online Lottery Sales Ban

Posted on February 26, 2019 by -

The Florida House Gaming Control Subcommittee recently passed House Bill 629 which would ban the sale of lottery tickets and games online, including smartphone, mobile, tablet, desktop and laptop sales and via any other devices that can connect to the internet. Introduced by state Rep. William Cloud Robinson, the bill would limit lottery sales to physical purchases only. It the measure passes the legislature, it would take effect July 1, making Florida only the second state to limit lottery ticket sales; a similar bill was introduced in New Mexico earlier this month.

Robinson said numerous third-party websites claim to be affiliated with the Florida Lottery, but they simply mark up prices. He noted, “These fraudulent websites are, in my view, illegally advertising when they are not related to the lottery system at all.”

Robinson cited an incident reported last year involving a woman who bought a winning ticket through TheLotter.com. An attorney for the company said it worked with the store in Campbellton which printed a pay slip and scanned an image to send to the Israel-based website, from which the consumer purchased the ticket at a marked-up price. Officials had no knowledge of the website until the woman showed up to claim a $30 million jackpot from a store she had never visited. The state ultimately paid the woman her prize but canceled the contract with the retailer.

Robinson wants to make clear no ticket purchased electronically will be considered valid. “Once you start allowing mobile devices, you are expanding the scope of the lottery. The state of Florida wants to make sure the right thing is being sold,” he said.

Robinson’s bill also would include warnings on the front of all lottery tickets, advertising and promotional materials, stating: “Warning: Playing a lottery game constitutes gambling and may lead to addiction and/or compulsive behavior. The chances of winning a big prize are very low”.

State Rep. Emily Slosberg objected to warnings, stating, “To add a warning that says playing the lottery game constitutes gambling and may lead to addiction is misleading, is deceptive disclosure to the people of Florida. There’s not one supported case of a person that wakes up every morning that goes to the gas station to buy Florida Lottery tickets and sits there all day addicted to the Florida Lottery. This disclosure that we add is unnecessary, and I can’t support the bill.”

However, state Rep. Randy Fine, who formerly ran a casino consulting company in Las Vegas, disagreed. “The research proves that there are people that become addicted to gambling, and whether it’s 1 percent or 5 percent, people do at times become susceptible to this. I know this from my prior life.” He added, “If it doesn’t matter, if nobody actually has issues, there will be no fiscal impact, because nobody would buy any fewer lottery tickets. And if there is an issue, this might dissuade one or two, or one percent, of the world from falling susceptible to this. I don’t think we do any damage either to the lottery or to the lives of people simply by letting them know that there could be an issue with this.”

PayPal Criticized in UK for Fueling Gambling Debt

Posted on February 26, 2019 by -

As the UK readies to begin studying a ban on credit card use with bookmakers, attention has turned to PayPal, an online payment system which many say problem gamblers use to bypass banking limits on bets.

The Department for Digital, Culture, Media and Sport recently said the UK Gambling Commission could consider payment providers as part of its review of gambling on credit cards.

The UK newspaper The Guardian recently outlined in a report one problem gambler who lost £150,000 in one night using PayPal.

 “The first time I ever heard about a gambler using PayPal to pay for online gambling occurred about two weeks ago in clinic, when a young man came accompanied by one of his parents. The patient was 20 years old, with no savings,” Henrietta Bowden-Jones, a psychiatrist who founded the NHS’s only specialist gambling clinic told the paper.

“He had been online gambling, had reached his limit on his bank card but somehow managed to withdraw by direct debit £2,000 every few minutes to continue gambling whilst his parents were asleep next door,” she said. “When they woke up the next day, he had lost £150,000. I was horrified when I heard that this had been a legitimate use of PayPal.”

PayPal told the newspaper it was “extremely concerned” to hear the service was being misused to fund “excessive online gambling.” The company said it had reviewed its online controls and was tightening rules around payments.

Tom Watson, the deputy Labor leader, also said companies such as PayPal needed to be “more responsible in identifying problem behavior and stopping gamblers racking up huge debts through their service.”

PayPal’s service is tied to bank accounts, but officials said a lag of about 48 hours between withdrawing money and the service contacting a bank can allow huge debts to racked up quickly. The company also has not had limits on gambling activity.

The criticism comes as the UK gambling Commission is about to launch a review on whether to ban the use of credit cards in gambling. Several UK banks have also begun allowing problem gamblers to voluntarily block themselves in payments to bookmakers and other types of retailers.

A spokesman for the commission told The Guardian it will seek a wide range of submissions for thee review.

As part of its review, the commission will hear evidence on the use of credit in gambling and consult with the gambling companies. The UK’s leading problem gambling charity, GambleAware, has also backed the measure.

France Sees Online Gambling Growth in 2018

Posted on February 26, 2019 by -

France saw online gambling revenue grow by 25 percent in 2018 over 2017 with online sports betting accounting for more than half of revenue.

Revenue grew to €1.2 billion ($1.4 billion) with €691 million coming from sports betting. Players wagered €11.4 billion on all gambling products, up 24 percent from 2017.

Poker rake for cash games and tournaments grew 5 percent to €258m, while revenue from horse racing betting was also up 5 percent to €256m.

However, the country’s iGaming regulator L’Autorité de régulation des jeux en ligne said that despite strong full-year figures the market was still fragile due to marginal growth in poker and horse racing betting.

That could mean France will consider reforming its online gambling tax rate to apply to revenue rather than total turnover, such as a tax on sports betting currently being discussed in the French legislature, the regulator said, noting that a change would bring France in line with its European partners.

ARJEL estimated that around 2.7m players gambled online over the year, an increase of 40 percent from 2017.

Sports betting saw revenue grow 32 percent to €215 million with amounts wagered rising 51 percent to €1.1 billion. The majority of wagering was on soccer which accounted for €662.9m of total stakes, up 54 percent from Q4 2017.

Online poker benefitted from player sharing with Spain and Portugal and saw amounts wagered in cash games grow 11 percent to €1.0 billion for the year.

Netherlands Adopts Remote Gambling Act

Posted on February 26, 2019 by -

The Netherlands Senate has approved a new Remote Gambling Act that sets a tax rate of 29 percent of gross gaming revenue.

The bill was first passed by the lower house of the country’s Parliament more than two years ago. The new regulations are scheduled to go into effect with the issuing of new licenses in mid-2020.

Under the bill, unlicensed operators who illegally targeted Dutch bettors will face a two-year blackout on licensing, as well as a possibility that the state will move to block their sites in the future.

The country’s Ministry of Justice and Security confirmed the act had been adopted and emphasized a need to eliminate the unregulated online market in the country. The act also includes “an extensive package of measures to prevent gambling addiction”.

Online players will be required to create a personal profile indicating their comfortable level of gambling. A central register will also be created to temporarily exclude problem players from gambling and also to allow for health referrals for treatment of problem gambling.

“We see that society is digitizing and more than half a million Dutch people are participating unprotected in online gambling at the moment,” said Sander Dekker, Dutch Minister for Legal Protection in a press release. “This involves big risks such as gambling addiction and fraud. I am happy that we can now offer players a secure offer so that games of chance can be played online in a responsible manner.”

The new act is gaining support in the industry.

One party welcoming this introduction is online gambling group Betsson, whose CEO Pontus Lindwall commented: “Finally, there will be modern gambling legislation in one more big monopolistic market in Europe,” said Betsson CEO Pontus Lindwall in a press release. “Betsson Group already has 12 local licenses in Europe, and we are looking forward to the Netherlands following the suit of other European countries in opening up the market to competition.”

According to local reports, about 300 gambling firms have expressed interest in seeking Dutch licensing and about 50 firms are expected to formally apply for licenses.

Malta Suspends Gambling Licenses

Posted on February 26, 2019 by -

The Malta Gaming Authority has put four gambling firms under investigation and suspended their licensing.

The authority, however, did not identify the focus on the investigations.

The authority has moved to suspend the licenses of German/Turkish online bookmaker Betixx Limited, and Silema–based industry games developer Morpheus Games. It has also moved to terminate the operator license of World-of-bets EU Limited and also for Bet Service Group.

The authority has instructed Betixx—an MGA licensee since 2013—to cease all operations related to registering new players and accepting deposits. Betixx associated websites have been instructed to remove content and promotions related to the bookmaker.

The authority has also ordered Betixx to submit data and documentation to assist with its investigation.

“Due to the suspension of the license, Betixx Limited is therefore not authorized to continue conducting gaming by means of distance communications under an Authority license,” the authority said in a press release.

Morpheus Games, an MGA licensee since 2017, has been ordered to remove its games inventory from associated partners and websites.

The authority has also moved to terminate the license of World-of-bets EU Limited, a registered MGA licensee incumbent since 2008. Bet Service Group, the gambling operator behind the Gamenet brand, has also been told to publish a notice on its main website and all affiliated sites that its license has been cancelled.

The authority urged players owed money by the websites to contact support.mga@mga.org.mt with required personal information.

Meanwhile, Norway has banned transactions with six Malta-based gaming firms which it accuses of operating “illegally” within its territory, the Times of Malta reported.

A spokesman for the Norwegian Gaming Authority told the paper the regulator had ordered banks in its jurisdiction to block payments to and from accounts identified as being used for processing gambling transactions.

According to the paper, The Betsson Group, Co-Gaming Ltd, L&L Europe Players Ltd and the Gaming Innovation Group were sent warning letters last November about their “illegal” operations in Norway. Another two warnings were received by the Kindred Group and Lucky Dino Gaming Ltd this month.

Only two gaming companies are licensed to operate gambling services in Norway.

AGS Partners with Ainsworth to go Online in Mexico

Posted on February 26, 2019 by -

Las Vegas-based gaming supplier AGS announced an agreement to provide its real-money game content to Ainsworth Game Technology’s first online casino, Mustang Money Mexico.

“With a robust land-based business in Mexico, where our games are very popular with Mexico players, we are confident that our online titles will resonate equally as well and even help propel the popularity of our retail content,” said Bryan Bennett, AGS senior vice president, interactive. “This is our first cross-channel opportunity to offer games in both a real-money online and land-based market, and reflects our focus on distributing our entertaining content online into other regulated real-money gaming markets as we continue to grow our interactive business.”

Mustang Money Mexico is live at mustangmoney.mx, available throughout the Mexico regulated gaming market. Through its AxSys Games Marketplace game aggregation platform, AGS will provide content to the online casino, including top-performing AGS game titles like Golden Wins, Jade Wins and Longhorn Jackpots, as well as game content from AGS’ rapidly expanding network of third-party suppliers.

Ainsworth Game Technology General Manager of Online Gaming and Interactive Jason Lim said, “We have been working with the AGS iGaming team for some time now as a supplier of third-party game content, and we’re thrilled to take our relationship to the next level by making AGS our game aggregator of choice in Mexico. We are especially excited about the AGS game content, because we know it has been proven to perform in land-based casinos in Mexico and the United States.”

New Jersey First State to Allow Oscar Bets

Posted on February 21, 2019 by -

New Jersey has beaten Nevada to the punch by becoming the first state where you can bet on which film will win best picture at the Oscars.

There was a little confusion at first as the state’s Division of Gaming Enforcement sent an e-mail to the state’s sportsbooks allowing Oscar bets, but then asked that the odds be taken down.

“We saw something we wanted to look into a little more closely,” David Rebuck, director of New Jersey’s Division of Gaming Enforcement told reporters after betting resumed, but did not say what specific issue was reviewed.

With betting resumed, the state’s sportsbook operators are looking for a chance to entice non-sports fans to their facilities.

“We have customers who aren’t huge sports fans, but enjoy playing games like bingo or roulette with us,” Mattias Stetz, chief operating officer of Rush Street Interactive, which operates PlaySugarHouse.com in New Jersey told the Associated Press. “We believe a new audience may be fans of the Oscars and want to make their viewing experience even more exciting by placing a bet on their favorite movie.”

Betting on the Oscars varies by sites, which include a strong online presence for sportsbooks in the state. SugarHouse, for example has the film “Roma” as a favorite to win best picture at the February 24 ceremony. Some sportsbooks are accepting bets only on best picture nominees, while others are offering more options, like best director, best actress and best actor, according to the AP.

Nick Bogdanovich, William Hill’s director of trading, told the wire service that Lady Gaga—nominated for best actress—has been the most popular choice among bettors. Fifteen of the 82 tickets that William Hill—which runs sportsbooks at Monmouth park racetrack and in Atlantic City—had taken on the event February 8 named Gaga.

“I don’t know if that’s horrible, great or what because it’s the first go round,” Bogdanovich said of the total number of tickets. “But I guess 82 tickets is 82 tickets regardless of whether it is on NBA, baseball or whatever. I was just happy that we were able to book it… The more diverse we can get the better.”

New Jersey’s move did elicit some reactions in Nevada, which has resisted allowing bets on non-sports events.

A.G. Burnett, former chairman of the regulatory Nevada Gaming Control Board, told the AP that the state’s decision to approve bets on non-sporting events considers how the event is supervised and whether the event’s outcome is verifiable and generated by a reliable and independent process.

Wire Act Memo Under Fire

Posted on February 21, 2019 by -

The gaming industry is apparently not going to take the new Department of Justice opinion on the Wire Act laying down. The memo reversed a previous 2011 DOJ memo that said the act applied only to sports betting. The new opinion puts at risk legal online gaming and online lottery ticket sales in several states, as well as mobile sports betting.

MGM Resorts Chairman and CEO Jim Murren was asked about the new interpretation of the Wire Act in an earnings conference call last week.

“This latest missive from the DOJ is perplexing is an understatement,” Murren said. “It’s just, we think, an absurdly poorly written and unenforceable opinion, and I don’t think anyone in the industry, the gaming industry, the sports betting industry, feels any differently.”

Murren pointed out that, if strictly interpreted, the new memo could potentially make multi-state lottery games, like Powerball, illegal.

And that’s one reason why New Hampshire is the latest state ready to sue the Department of Justice over its recently revised opinion on online betting as it seeks to protect its online lottery profits, which help fund the state’s schools.

That state makes about $5 million a year in lottery profits and officials say they will fight to protect them. The DOJ recently issued a revised opinion of the 1961 Wire Act saying it makes illegal all types of online gambling that cross state lines.

The new opinion has called into question all online lotteries, especially those run interstate such as Powerball and Mega Millions. New Hampshire is one of six states that also offer online lottery games.

New Hampshire Lottery Executive Director Charles McIntyre told the state’s Union Leader newspaper that opinion would make it illegal to purchase New Hampshire lottery products online.

“Certainly, at the very narrowest interpretation we are looking at $4 million to $6 million this year and $6 million to $8 million next year, as this represents what we are selling now through the internet online channel,” McIntyre said. “This revenue is growing month by month and profitability now is more than $300,000 a month.

The North American Association of State and Provincial Lotteries also issued a statement this week criticizing the opinion.

“The recent United States Department of Justice, reinterpretation of the Wire Act of 1961 creates a substantially detrimental impact on the lottery industry, including traditional retail-based draw and instant lottery games, as well as traditional lottery games offered over the Internet, and the billions of dollars for good causes lotteries provide,” the statement said.

McIntyre told the Union Leader that New Hampshire and other states that began online lottery sales did so thinking the practice would be permitted.

“We went forward with the best of intentions believing that all of this would be allowed and that’s what is so troubling about this development,” McIntyre said.

He also said he has discussed the issue with Governor Chris Sununu and Attorney General Gordon J. MacDonald about the matter.

“This is a serious enough threat to a major revenue source that I wanted them to be aware of it and to discuss what our options are,” McIntyre said.

Analysts pointed out that New Hampshire would be an ideal sate to file a challenge to the ruling since the U.S. Circuit Court of Appeals in Boston, Mass. ruled in 2014 that only interstate sports betting was illegal under the Wire Act.

New Hampshire joins New Jersey and Pennsylvania in threatening legal action on the opinion. The state attorneys general for both states strongly criticized the opinion. New Jersey Attorney General Gurbir S. Grewal said he has also filed freedom of information act requests to determine what role Adelson played in the release of the new opinion.

Last week, New Jersey Senate President Steve Sweeney sent a letter to Assistant Attorney General Rod Rosenstein saying that he would direct former state Senator Ray Lesniak to file suit in U.S. District Court unless the ruling is rescinded, calling it “arbitrary and capricious.”

Meanwhile, federal Acting Attorney General Matthew Whitaker was challenged on the new ruling before Congress and denied the opinion was issued as a concession to Las Vegas Sands owner Sheldon Adelson, a major republican donor who has been financing a personal lobbying effort to ban online gaming. A recent report by The Wall Street Journal, however, said the new opinion was heavily influenced by a memo from a lobbying firm working for Adelson.

Whitaker said he had no involvement in the new opinion and has never met with Adelson in a hearing before the before the House Judiciary Committee, responding to questions from Congressman Jamie Raskin.

Raskin questioned Whitaker about his relationships with anti-online-gambling groups and casino interests. Whitaker, however, said he was recused from involvement with the opinion.

Whitaker also defended the new opinion.

“The first OLC opinion that preceded the one we just issued in November was done—and the state of Illinois provided a white paper regarding the position on the Wire Act. So, I think it is very consistent, and your inferences on how that process was corrupted or corrupt is absolutely wrong. And the premise of your question I reject,” he said.

For his part, Raskin told the Huffington Post he was unsatisfied with Whitaker’s answers.

“This definitely bears further investigation,” Raskin said. “When and where and by whom remains to be seen.”

Whitaker, however, will now be replaced by President Donald Trump’s Attorney General nominee William Barr, who has not commented on the issue. Barr was confirmed last week.

Borgata Wins Motion on Ivey Assets

Posted on February 21, 2019 by -

The Borgata Casino in Atlantic City will be able to seek out assets belonging to poker pro Phil Ivey in Nevada as it seeks a $10,6 million judgement against the player a federal judge has ruled.

The casino is still owed $10.16 million from Ivey after winning a lawsuit in 2016 for baccarat winnings Ivey and his partner, Cheng Yin Sun, won in 2012. The two used a practice called “edge sorting” which allowed them to spot defects on the backs of cards to gain an advantage on the house.

Ivey and Sun won about $9.6 million from the Borgata’s baccarat tables and Ivey won another $500,000 victory at the craps table. Judge Noel Hillman ruled Ivey had to return the $10.16 million in winnings.

The casino, however, could no find substantial assets belonging to Ivey in New Jersey and filed a motion to seek out Ivey’s assets in Nevada. The casino said it identified assets of about $100 million in Nevada.

Hillman signed the order last month and Ivey’s lawyers reportedly did not protest the decision.

New Jersey Regulators Ban OddsShark

Posted on February 21, 2019 by -

New Jersey’s Division of Gaming Enforcement has taken severe action against affiliate betting site Oddsshark for promoting brands that offer unlicensed internet gaming and sports betting to New Jersey residents.

The division said it reviewed the OddsShark website and found that along with promotional links to authorized New Jersey sports betting sites, the website also promoted Bovada, BetOnline and 5Dimes, all of which are unlicensed in the state.

The division said affiliate marketers cannot operate in New Jersey’s licensed market while continuing to serve illegal offshore operators. The division’s ruling states that all New jersey licensed sites must cease doing business with OddsShark regardless if the site is also promoting their online platform.

The division said it has also referred the matter to New Jersey’s Division of Criminal Justice.

New Jersey Sets New Sports Betting High in January

Posted on February 21, 2019 by -

Sports betting and online casino gaming saw big increases in January for Atlantic City’s casinos and New Jersey sports books set a new record of $385 million in sports betting handle for the state.

Coupled with better than $33 million in revenue for Atlantic City’s nine casinos from online gambling, the resort saw a 20 percent increase in revenue for the month compared to last year. However, the opening of two new casinos in June continues to impact the city’s now nine casinos as five casinos saw revenue declines.

According to figures released by the state Division of Gaming Enforcement, about $305 million of the sports betting handle was placed through online or mobile devices. The total $385 million topped the previous record of $330 million set in November. January features the NFL playoffs and run up to the Super Bowl, played February 3.

Atlantic City casinos made about $10 million in revenue from sports betting while the state’s two racetracks that offer sports betting made about 9 million. Monmouth Park brought in $2 million while the Meadowlands made about $7 million, bringing the total for all sportsbooks to $18.8 million. The win, however, was down from about $21 million in December.

Atlantic City’s nine casinos also saw an about 20 percent increase in revenue compared to January 2017 at about $220 million. The revenue was buoyed by a strong month for online casino gaming which took in $33.5 million, up about 53 percent over 2017.

“Atlantic City held its own in January, a month when gaming figures have traditionally dropped off in the resort,” said James Plousis, chairman of the state Casino Control Commission in a press release. “The figures seem to be a good first chapter for Atlantic City’s 2019 gaming story.”

Still, the impact of the opening of the Hard Rock casino in June, along with the Ocean Resort casino the same month continued to raise questions of whether the city’s market can maintain nine casinos.

Five city casinos reported revenue declines. Caesars casino saw revenue decline 21.3 percent in January to $17.1 million. Harrah’s was down 8.6 percent to $21.5 million and Tropicana was down 6.2 percent to $24.5 million. Borgata, the city’s market leader, was down 3.4 percent to $55.8 million, and Bally’s was down 1.1 percent to $12.6 million.

The Golden Nugget, however, was up 14.3 percent in January to nearly $26.8 million and Resorts casino was up 10.9 percent to nearly $12.9 million.

For the new casinos, which were not operating in January 2017, Hard Rock took in $17.2 million in January, and Ocean Resort won $14.1 million. Ocean Resort has been struggling in the market and is currently being taken over by one of its main lenders.

For online gaming, the Golden Nugget continued to lead the market with more than $12 million in online winnings in January, up 67 percent from a year earlier. Resorts Digital was second at $6.4 million.

Arena Football League Announces 2019 Schedule

Posted on February 15, 2019 by -

The Arena Football League has announced its 2019 season schedule, along with rule changes for the upcoming season. AFL teams will play 12 regular-season games beginning on April 26. The League will retain the playoff format adopted last season, with four teams advancing to the playoffs. The new rule changes will take effect this season and are designed to improve players’ safety, speed up the game and enhance the fans’ gameday experience.

“AFL football is the most exciting, high-scoring, innovative brand of football and we’re looking forward to bringing it to even more fans this season,” said Randall Boe, Commissioner of the AFL. “The rule changes will make the AFL game more thrilling and engaging as they speed play up, making the game last closer to two hours—which we think is the optimal amount of time.”

The AFL season will begin with a rematch of 2018’s ArenaBowl XXXI, when the Baltimore Brigade hosts the reigning ArenaBowl champions, the Washington Valor. In 2019, each team will play 12 regular-season games over the course of 13 weeks, allowing for one bye week per team. The regular season concludes on July 21, and playoffs begin on July 27.

The postseason will follow the same format as the 2018 postseason, with the top four teams qualifying for the playoffs. There will be a pair of home-and-home series between the opponents in the first round of the playoffs. The two teams with the highest aggregate score following these games will advance to ArenaBowl XXXII, to be played in the second weekend of August. The ArenaBowl game is played as a traditional single-event game, with the winner being crowned the World Champions of Arena Football.

The new rules are aimed at shortening the length of games, with the ultimate goal of enhancing the action in a game already filled with intensity. Rule changes were made to the second-quarter timing rules, the fourth-quarter timing rules, media timeouts, coaches’ timeouts and timing after extra-point kicks.

 

Rule Changes

  • The first-half’s one-minute timing rules will be eliminated. There will be no automatic clock stoppage at the one-minute mark in the second quarter and the game clock will follow regular guidelines. Additionally, in the fourth quarter, the traditional AFL clock stoppage rules will not take effect until the   thirty second mark.
  •  The number and duration of media timeouts will be reduced.
  •  Each team will have three timeouts per half. Two of the three timeouts will be clock-stoppage timeouts only: the game clock will stop and the play clock will reset immediately. The third team timeout in each half will remain a traditional timeout.
  •  A 60-second play clock will be implemented following the extra-point attempt, and/or two-point conversion attempt, with the exception of media timeouts.

 

2019 Atlantic City AFL Schedule:

 

The Arena Football League’s newest franchise, Atlantic City AFL, will begin play in Spring 2018 at Boardwalk Hall. Season memberships for the inaugural 2019 season are on sale now. Fans can secure their season tickets now with a $50 deposit per seat ($75 for VIP seats) by calling 609-783-9494 or by going to AtlanticCityAFL.com. 

A team representative will contact those that have submitted a deposit within a week to select your specific seats, which will be done in order in which deposits were received.

Trustee Appointed for Atlantic City’s Ocean Resort Ownership Change

Posted on February 12, 2019 by -

The New Jersey Casino Control Commission approved the appointment Eric Matejevich as trustee for Atlantic City’s Ocean Resort casino as the New York-based hedge fund Luxor Capital moves to take over the troubled property.

Matejevich is a veteran casino executive in the Atlantic City casino market as a former COO of the Atlantic Club casino and will oversee Luxor’s pending $70 million investment in the property while the company seeks casino licensing in the state.

However, financial information released from the sale show that the Ocean Resort—formerly the Revel casino—is in serious financial trouble again and has been losing money since September.

Luxor is talking over the property from Colorado-based developer Bruce Deifik, who led the group which re-opened the casino in June. Luxor lent Deifik’s investment group $122.5 million when he purchased the casino for a reported $229 million in 2018. The hedge fund has said it plans to invest another $70 million into the property.

In the meantime, Ocean Resort has been facing some serious financial concerns. New Jersey requires the casino to maintain at least $36 million on hand at all times, but that figure has recently fallen below $20 million. The casino has not met the minimum balance requirements since November, Sara Ben-David, a deputy attorney general told the AP.

Reports also show that Ocean Resort has not turned a profit since August. According to the AP, the casino lost $3.2 million in September; $4.1 million in October; $5.5 million in November and $5.8 million in December. Overall, the casino reportedly lost about $23 million since opening in June.

The casino responded to the losses by reducing its cash and reserves and delaying payment on bills, regulators told the wire service.

The New Jersey Division of Gaming Enforcement wrote that the casino’s liquidity levels “are now a serious concern,” in a recent report. The report said the casino cannot currently meet its legal requirement to prove it can meet operating expenses and maintain continuous and stable casino operations.

That raised concerns among commission members.

“This property has clearly had a very challenging past, and I’m very, very concerned about its future,” said commission Vice Chairwoman Alisa Cooper. “I sincerely hope that this arrangement before us today will be successful and enable this property to survive.”

The commission approved a joint petition for a divestiture trust agreement between Deifik, and Luxor Capital Group.

“The proposed divestiture trust represents a unique vehicle through which Luxor, a qualified financial source of Ocean Resort, but not yet a casino licensee or casino licensee applicant, can invest in Ocean Resort to support it maintaining its financial stability,” said commission Chairman James Plousis. “With approval of the divestiture trust agreement and qualification of the trustee, we will not only maintain public confidence and trust in the credibility and integrity of the regulatory apparatus, but will advance the economic stability of Ocean Resort’s casino operations.”

When Deifik acquired the property in January 2018, Luxor Capital and JPMorgan Chase Bank were primary lenders of the reported $229 million price. The financing consisted of two bridge loans: $110 million from JPMorgan Chase and $122.5 million from Luxor. The JPMorgan loan was repaid in June with a second loan of $175 million from the bank, according to the Press of Atlantic City.

According to the petition, $50 million of Luxor’s new $70 million investment will be used to reduce the principal balance owed to JPMorgan. The remaining $20 million will be used to acquire majority ownership interest.

Luxor has also said it plans to finish 12 uncompleted hotel floors at the property, which would add an additional 500 rooms to the existing 1,399, the Press reported.

The troubles of the casino are nothing new for the property, which cost $2.4 billion to build and has never been profitable while operating.

In fact, the only owner of the property to see a profit on the property never actually opened it for operation.

Florida developer Glenn Straub bought the property out of bankruptcy in 2015 for $82 million. Despite a volatile reign over the property which included high-profile battles with state regulators, he never re-opened the casino and sold it to Deifik’s group for a reported $229 million.

In an interview with the AP, Straub would not say how much profit he saw from the sale, but did say he derives no pleasure from “the bath that they took” on the deal.

State officials said that Straub is the only investor in the property who appears to have made money.

“The good news is that Ocean Resort is open for business and will remain open for business and we’re excited about its future,” said David Rebuck, director of the state Division of Gaming Enforcement told the AP. “The bad news is that another investor lost their funds and did not succeed.”

In another story involving the sale of a former casino, the Press reports that a notice of settlement has been filed for the former Atlantic Club Casino Hotel, but the owner of the closed property denies there has been a sale.

The notice, filed Jan. 15, lists the seller as Florida-based TJM Properties and the buyer as Jeffrey Smolinsky, on behalf of North American Acquisitions. A spokesman for TJM told the Press there is no active contract and he was unsure why it was filed. Smolinsky did not return requests for comment.

No sale price was listed in the notice of settlement, the paper reported.

For Bettors, Bookies, a Super Sleeper

Posted on February 12, 2019 by -

Super Bowl LIII, the first to see legal betting outside Nevada proved as underwhelming for the nation’s bookmakers as it appears to have been for football fans.

Figures released by gaming regulators in Nevada, New Jersey and Mississippi show roughly $185.4 million was risked by bettors in the three states. There was also action in Rhode Island, Delaware and West Virginia, at three casinos in Pennsylvania and one location in New Mexico, but results from those jurisdictions were not immediately available.

For CBS, the New England Patriots’ 13-3 victory over the Los Angeles Rams in Atlanta—a lackluster affair compared to the Philadelphia Eagles’ 41-33 upset of the Patriots in 2018—drew the lowest viewership in 10 years.

“I thought the enthusiasm for the game was less this year,” said Joe Asher, chief executive of Las Vegas-based William Hill US. “The Rams just don’t have the passionate fan base the Eagles do, and the Patriots fans have had plenty of chances to take in a Super Bowl in Vegas.”

The game arrived with lofty predictions for betting volumes after the U.S. Supreme Court last spring overturned a decades-long federal ban on sports betting outside Nevada and sent states rushing to legalize and get in on the action.

Yet, the $145.9 million in wagers Nevada’s 190-plus books took on the game was off $12.6 million from last year, an 8 percent decline on a difficult comparison with 2018’s record handle of $158.6 million, and the first year-on-year drop since 2015.

The low score—it was, in fact, the lowest-scoring Super Bowl ever—didn’t help. For Dominic Mansour, CEO of Bragg Gaming Group, a sports-betting news site in the UK, it probably meant there were fewer in-play bets, which can make up as much as 70 percent of a game’s action.

“When a game is that boring, it’s bad for the sport-betting sites,” he said.

On the plus side, Nevada’s books kept $10.8 million of wagers on the game for a better-than-average win percentage of 7.4 percent. Last year, they won only 1 percent of bets.

“I would characterize it as a solid day. It wasn’t a bad day or a great day; it was right in the middle,” said Jay Kornegay, vice president of race and sports book operations at Westgate Las Vegas Superbook.

New Jersey’s first foray in the legal Super Bowl market resulted in sports books at Atlantic City’s casinos and the state’s racetracks paying out $39.5 million on $34.9 million in bets for a loss of $4.6 million. There, too, the handle was far lower than many analysts expected. But that’s not to say the books weren’t pleased overall. Asher called it “by far our biggest day ever in New Jersey in terms of handle”.

DraftKings, which runs mobile wagering in the state and an in-person book at Resorts Casino Hotel, said its handle set a company record. But its online operation wound up paying out $11 million and took a “relatively small” loss, said sports book director Johnny Avello.

FanDuel, which operates online and at the Meadowlands Racetrack outside New York City, had a tougher day. Seventy-five percent of its wagers came in on the winning Patriots. The site wound up losing $5 million.

A similar slant to the action occurred in Rhode Island, where betting was “especially strong,” said Asher. “There are a lot of Patriots fans back there, so our pockets are a little light today.”

In Mississippi, the only other state to report, the commercial casinos took $4.67 million in bets.

“Business was slow and the game was dull,” an insider there told betting news website Sports Handle.