Author: Casino Connection Staff

Several weeks ago a new head of the Bureau of Indian Affairs, whose technical title is Assistant Secretary for Indian Affairs, was appointed: Tara Sweeney.

Sweeney’s first public action happened last week when she signed two documents that were published in the Federal Register. Both concerned gaming.

Sweeney, although a Native American, is relatively inexperienced when it comes to gaming since she comes from Alaska.

In one matter, she approved an extension of a Class III gaming compact between South Dakota and the Rosebud Sioux. The extension was needed because the two parties keep extending the compact without approving a new one. This has happened a dozen times since 2012.

Sweeney’s second action was to allow a Class III gaming compact between California and the Elk Valley Rancheria to go into effect by “deeming it approved” and publishing it in the Register. It thus has the force of law even though the state and the tribe have never agreed on it.

Sweeney is the first Assistant Secretary from the Last Frontier state and the first woman to hold the title for 20 years. She was confirmed by the Senate on June 28.

She commented, “I am honored to be able to serve Indian Country in this capacity,” adding, “My goal is to develop strong relationships with tribes, Alaska Native corporations, and Native Hawaiian organizations to work on innovative solutions for lifting up our communities.”

The International Olympic Committee partnered with the Global Association of International Sports Federations hosted a forum to discuss a possible future for eSports at the Olympics.

The forum was held at the Olympic Museum in Lausanne Switzerland. The forum was designed to begin a dialogue to build joint understanding and set a platform for future engagement between the esports and gaming industries and the Olympic Movement, the IOC said in a press release.

Participants included over 150 representatives from the eSports and gaming industry including players, publishers, teams, media, sponsors and event organizers. Form the IOC came various national Olympic committees, international sports federations, athletes, partners, broadcasters, the IOC and the GAISF, the release said

According to the IOC, the forum explored areas of commonality and potential collaboration, including the question of whether esports could be recognized as a sport—and in which form they could be represented within the Olympic Movement—when an organization does not currently exist that represents eSports globally. Because no such organization exists, including eSports on an Olympic program was not an immediate goal of the Esports forum.

“On behalf of GAISF and the IOC, I would like to thank all the participants at today’s forum” said GAISF President and IOC Member Patrick Baumann. One thing in particular was clear from these fascinating discussions. We are united by passion for our sports and a shared love of competition. That’s a positive starting point for further discussions about possible future cooperation between the Olympic and eSports communities.”

The eSports Forum follows the Olympic Summit held in October 2017, which asked the IOC, together with the GAISF, to explore this area in a dialogue with the gaming industry and players, the release said.

“The eSports Forum was a unique opportunity to hear from a wide variety of stakeholders, including some of the top players themselves,” IOC Sports Director Kit McConnell said. “There was a consensus that future collaboration will be based on ensuring that any activity supports and promotes the Olympic value and while the goal was not to develop a pathway towards the inclusion of eSports on the Olympic program, we have a strong plan for ongoing dialogue and engagement, and are in a strong position to coordinate and support the wider engagement of the Olympic Movement with esports.”

The IOC and the GAISF will now establish an eSports liaison group to continue communication and engagement between the Olympic Movement and eSports and gaming stakeholders in order to identify areas of potential collaboration.

Hard Rock International announced it plans to eliminate plastic straws at its hotels, cafes and casinos worldwide effective September 1, 2018. Durable, earth-friendly straws will be available upon request. Hard Rock properties also have been using only paper to-go bags since mid-August.

Hard Rock International Senior Vice President of Purchasing Tracy Bradford said, “One of Hard Rock’s founding mottos is to ‘Save the Planet,’ and this is only an extension of the commitment we made to do just that 47 years ago. Our vendors and partners have been and will continue to be instrumental in activating this endeavor across the globe, and we are proud to help make a difference in conscientious sustainability practices as a business. It’s the right thing to do.”

Bradford said Hard Rock will announce more “Save the Planet” initiatives in the next few months, including partnerships with key charities that share Hard Rock’s goals to help protect the earth’s natural resources and environment.

MGM Resorts recently banned all straws at its properties.

The $960 million MGM Springfield opened in the Bay State’s third largest city on August 24. It was the first true casino to open since the legislature passed the Expanded Gaming Act of 2011.

It has 2,550 slot machines, 120 gaming tables and 23 poker tables. The gaming floor sits amidst restaurants, bars, retail shopping, a ten-lane bowling alley, eight screen movie theater, event center and 250-room hotel, all on a 14.5 acre footprint.

The final acts before opening played out, with Commissioner Bruce Stebbins, of the Massachusetts Gaming Commission reviewing the site before granting a certificate of operations.

The day before the opening MGM held a press conference attended by various VIPs who commented on the opening.

MGM Resorts International CEO Jim Murren declared that his company was “investing in the revival of a great American city. We didn’t just build a beautiful building,” he said. “For you in labor, you were cementing the spirit of Springfield … you’re building the future of Springfield.”

Massachusetts Governor Charlie Baker, Lt. Governor Karyn Polito and U.S. Rep. Richard Neal attended the presser after touring the casino.

Baker called the opening “a big statement about the people of Springfield and the folks who never quit.”

The governor said he had “no doubt there will be many big days associated with the impact this enterprise and this project is going to have on the community and this region,” and added, “This is a big day.”

Baker said of the casino: “It’s creative, it’s incredibly Springfield-centric,” he said. “There are so many elements of this place that are subtle but speak loudly about the commitment that everybody made to honor the history and all that makes this part of Massachusetts special.”

Then on Friday morning came a grand parade of thousands of employees, state and city VIPs all led by the Budweiser Clydesdales.

MGM expects to attract up to six million visitors a year, many of which will be repeat visitors.

“We’ve got a really robust database with hundreds of thousands of customers that are loyal to us in Vegas and other markets, and we believed if we put a flagship here in western New England, we would be able to generate visitation from those existing customers as well as find new customers,” declared Michael Mathis, president of MGM Springfield.

It is appropriate that a sculpture of a tornado will be one of the first things visitors to the just opened MGM Springfield will see. It was the freak tornado of 2011 that provided the catalyst that brought MGM to Springfield to begin with.

The EF-3 tornado ripped through the city’s South End like a scythe. When Murren saw the damage several weeks later, the germ of the idea of locating a casino at that area to help begin the rebuilding of Springfield began to grow. He had been thinking about building a casino in Boston. He dropped that idea. He told the Worcester Telegram: “I admit, I lost all interest in Boston at that point. And I thought I better see whether I can help this city.”

The tornado sculpture, located in the lobby of the casino hotel, wraps around the interior of the entrance. Artist Mia Pearlman’s work: “The Flying Tidings Whirled” celebrates the resilience of the people of the city and its ability to bounce back. The title comes from a poem by Emily Dickinson, a native of the region, the “Belle of Amherst.” Pearlman intended to highlight the people’s triumph after the storm, and to suggest “the energy and the drama” of the storm.

One of MGM’s design goals was to employ local culture, history and personages to celebrate the Pioneer Valley (the larger geographical area that includes Springfield) within all of the casino facilities.

The décor of the casino resort has been described by the Boston Globe’s Mark Arsenault as “offbeat” and “It looks like no casino you’ve ever seen, as un-Vegas as Springfield itself. And that is exactly the idea.” It recognizes the city and the area’s history. Much of it blends into the existing look of the South End, which involves employing existing facades with new insides. It is not trying to stand out from the cityscape, but to meld into it.

Instead of one overarching entrance, it has a dozen that all lead towards the center, where the gaming floor is located. The casino has dozens of examples of antique furniture and has a large 19^th century chandelier hanging over one elevator vestibule.

The lobby has, of all things anachronistic: walls of books, including some written by the many authors who called Western Massachusetts home.

The hotel takes up five floors over the casino. Each room is unique. As MGM describes it, rooms are “inspired by the historic significance, iconic architecture and literary legacy of its urban surroundings.”

For example, one of the priciest rooms is devoted to a celebration of the author Dr. Seuss, and includes a chandelier made up of hats. Large antique Merriam-Webster dictionaries (published in Springfield, of course) can be found on stands.

MGM Springfield has promised to create more than 3,000 jobs; 35 percent will go to Springfield and Western Massachusetts residents. It also committed to a diverse workforce and has been praised by local officials for largely achieving that goal.

The MGM Springfield is a culmination of a long effort to bring casino gaming to the Bay State. In 2011 lawmakers approved of and Governor Deval Patrick signed a measure that authorized one slots parlor and three Las Vegas style casinos in different geographic zones. The slots parlor, Plainridge Park, has been operating for more than two years. The Springfield casino is the first to truly put the 2011 legislation into action.

It was also the first to receive a license for an integrated resort. It was given that license by the Massachusetts Gaming Commission, the five-person panel created by the legislation. The MGC has overseen the selection process that approved of the Springfield casino, as well as the pending $2.4 billion Encore Boston Harbor, set to open next year.

Unlike the mayors of some Bay State cities, who held up their hands against a casino in their towns, Springfield Mayor Domenic Sarno not only welcomed the idea with open arms, he set up a process that required various developers to vie for his support, which would then be forwarded to the MGC. MGM won, and the also ran, Penn National Gaming, went on to eventually get the license to operate Plainridge Park.

When MGM was given the license, in 2014, it was for a $800 million project. Later the price tag grew to $960 million. MGM was the first gaming developer to present a detailed proposal for a casino in the state.

After getting the license, MGM broke ground in March 2015. Almost immediately MGM was forced to retrench somewhat and present a modified version that reduced the hotel from a 25-story tower to a six story building.

The casino was originally supposed to open in 2017, but improvements to the road network necessary to serve the project, including large-scale upgrades to Interstate 91 delayed that by about a year.

Many local officials see the opening of the casino as the beginning of a renaissance of redevelopment for what has been a city with a depressed economy.

Kevin Kennedy, the city’s chief development officer, who has worked with MGM officials from the beginning, told the Boston Globe, “It’s going to bring very large numbers of people on a daily basis and that’s going to contribute to the overall atmosphere. The ingredients are there for a long-term economic revival.”

Mayor Sarno told 22News that MGM’s efforts are part of an overall $3.7 billion redevelopment of the downtown. “About $13 million dollars, annually, will be invested,” he said. “This is combination of city money, MGM money and state money in working in public safety.” In addition, the developer will pay the city $25 million annually while payroll totaling about $100 million will return to the community.

The MGC has estimated that the MGM Springfield and Encore Boston Harbor will each pay the state as much as $100 million annually, with about $300 million coming in annually once all authorized casinos are in operation.

Fine dining will definitely be one of the MGM Springfield’s attractions. Eateries such as Chef Michael Mina’s Italian eatery, Cal Mare; or the Chandler Steak House brought to fruition by executive Chef Meghan Gill. There is also the South End Market and the TAP Sports Bar. The Commonwealth Bar & Lounge, which offers a drink called the “Indian Sidecar” to celebrate the fact, you guessed it, that the Indian Motorcycle originated in Springfield. The drink is pricey: $25,000, but you get a bottle of 1901 cognac and an actual motorcycle.

To further enhance your Indian Motorcycle experience you can visit the only shop devoted to Indian Motorcycle apparel.

That will take the visitor to the outdoor plaza, where live events will be staged and where the Farmers Market will operate in good weather and an ice rink will freeze over during winter.

The MGM Springfield will offer a Voluntary Self-Exclusion Program on the very first day, which is required under the gaming law in the state. The program allows person to exclude themselves from the gaming floor for any amount of time from six months to forever. Someone who does so and is then recognized will be escorted off premises and their wagered money forfeited.

Shifting Role

Now that the commission’s licensing role is over at Springfield, its regulatory role will begin.

The commission will have a permanent office in Springfield. Crosby told the Lowell Sun: “We have, I think, 19 or 20 formal law enforcement officers, a unit made up of both State Police and Springfield officers who are a part of our Investigations and Enforcement Bureau and under our management authority on-site.”

The chairman added, “We also have a whole host of gaming agents, I think around the same number 20 or so, who are there to keep an eye on the operations of the machines and the table games and so forth.”

Effect on the Lottery

The opening of the MGM Springfield is not expected to cut into the profits of the $5 billion Massachusetts Lottery, according to State Treasurer Deborah B. Goldberg.

That’s partially because of a provision in the 2011 that requires casinos to provide spaces for lottery kiosks.

The lottery disaster that was predicted when the Plainridge Park Casino in Plainville opened did not materialize, which apparently changed Goldberg’s mind. Last week she told the Boston Herald that the opening of the MGM Springfield, will not harm the lottery in any way,” Goldberg told the Herald. “I’m cautiously optimistic. But I never count any money until it’s in.”

The slots parlor put $3.6 million into the lottery’s coffers last year. Lottery sales increased 25 percent in Plainville the first year after the casino opened in 2015.

That doesn’t guarantee the same result for the MGM Springfield. Boston College gaming expert Richard McCowan told the Herald that’s because the demographics of the two cities are different.

“I would probably say the typical person who’s going to go to MGM, at least at the beginning, is going to be a little more well off than Plainridge,” he said.

The MGM will have six lottery kiosks as well as a gift shop where tickets will be on sale.

Goldberg has been preaching that the lottery needs to modernize and appeal to a younger generation through online and mobile platform sales. She urged the legislature to authorize that last year, but the bill she filed did not pass.

“I believe that is something we must do to stay with the 21st century,” she said. “We will need to modernize the Lottery to stay in step.”

Legislators are more likely to take up sports betting in January than to modernize the lottery. Governor Baker has been meeting with representatives of the major sports leagues to get their point of view on the issue.

Unlike other gaming, the Lottery funnels money directly to towns and cities. Mayor Mark Hawke of Gardner, president of the Massachusetts Municipal Association reiterates the towns’ dependence on the money. “We rely greatly on this revenue,” he said. “We have very few ways to raise money, it’s the real estate tax and local aid,” he said. “Lottery aid is key.”

The Pennsylvania Gaming Control Board has issued licenses for five mini-casinos to open across the state. One will be located in Hempfield in Westmoreland County and another in Mount Airy in Beaver County. Originally the gaming board planned to auction off 10 licenses for the smaller casinos but ended the process at five after no bids were received at the spring auction.

Stadium Casino LLC paid $40.1 million for the Hempfield casino license. The venue would be located in a former department store at Westmoreland Mall. Pennsylvania Gaming Control Board spokesman Doug Harbach said no votes have been scheduled on Stadium Casino’s application, which was filed last month. “With every month that goes by, it will be clearer and clearer when it will open. We know the location, but we don’t know entirely what it is going to look like,” he said.

The application proposes a 100,000 square foot casino complex with 750 slot machines and up to 40 table games, employing 600 people.

Harbach said when the application review process is finished, a public comment period will begin. He said the gaming board will hold a public hearing in Hempfield to gather local input about the proposal. He noted background checks, traffic studies and local permitting will be required before the casino can open. “The process could be 12 to 18 months,” Harbach stated.

Mount Airy Casino Resort in the Poconos also recently announced plans to break ground later this year on a $21.19 million mini casino on 110 acres in Beaver County. Mount Airy #1 LLC was awarded a gaming license by the state gaming control board in February. The facility is expected to be completed in late 2019 and feature 750 slot machines, 30 table games and a high-limit area plus a buffet restaurant. Phase two will offer a hotel, convention center, fine dining restaurant, pool, spa, salon and other amenities.

Mount Airy Casino Resort owner and Managing Trustee Lisa DeNaples said, “We’re thrilled to bring our 4-diamond customer service, high-quality entertainment and luxurious amenities to Beaver County and the surrounding communities, while contributing a positive lasting impact on the local economy.” She said the project will create 700 new jobs.

Beaver County Tourism Director Tim Ishman added, “This is going to attract a market of people who are going to another place right now. Short of agriculture, tourism is the largest economic driver in the state. We’ve been a major player in that and have a good thing going here. Mount Airy’s casino is going to continue that. Hopefully, those visitors won’t spend all of their money at the casino, but will enjoy our restaurants and our museums, too.”

According to Florida Division of Elections records, on July 30 both Disney Worldwide and the Seminole Tribe of Florida donated $5 million to Voters in Charge, the political group behind the Voter Control of Gambling Amendment. The group collected enough qualified signatures for the proposal to appear on the November ballot as Amendment 3, which would give Florida voters the “exclusive right to decide whether to authorize casino gambling” in the future.

The amendment requires 60 percent approval to pass. A Florida Chamber of Commerce poll released in June indicated 61 percent of respondents said they support Amendment 3; however, the poll had a +/-4.0 percent margin of error. Another poll, by Mason-Dixon Polling & Research, found only 8 percent of Floridians favor expanding casino gambling.

Since 2017, Disney has contributed more than $14.6 million to the organization and the Seminoles have contributed more than $11.7 million. Together the two groups’ donations total nearly 99 percent of Voters in Charge’s contributions.

In its latest financial filing, Voters in Charge reported $20 million cash on hand and indicated it is planning a massive pro-Amendment 3 advertising blitz leading up to the November 6 election.

Meanwhile, Citizens for the Truth About Amendment 3, a political group formed to oppose the ballot issue, reported having $1 million in cash on hand. Those funds came from the parimutuels Jacksonville Greyhound Racing and Elevated LLC which each donated $500,000. The group also received $250,000 from the Fontainebleau Miami Beach hotel owned by billionaire Jeffrey Schorr, who also owns the Big Easy Casino in Hallandale Beach.

Democratic candidates for governor of Florida, competing in the August 28 primary, recently expressed their positions on Amendment 3. U.S. Rep. Gwen Graham, the daughter of former Florida Governor Bob Graham, stated, “I am against the expansion of gambling” regarding both issues. Her close competitor Philip Levine, the former mayor of Miami, also stated, “I am against the expansion of gambling.” Tallahassee Mayor Andrew Gillum said he supports Amendment 3. “I am always in favor of the voters having a say on momentous issues,” he said. Real estate developer Jeff Greene also said casino expansion should be left up to local communities.

The Massachusetts Gaming Commission is near to reaching its findings on the “suitability” of Wynn Resorts to operate the $2.5 billion Encore Boston Harbor, which is less than a year from being completed along the banks of the Mystic River.

During its regular monthly meeting the commission’s Executive Director Ed Bedrosian reported that the Enforcement Bureau (IEB,) which is including information provided by an internal investigation, would be completed by the end of August.

The commission’s investigators interviewed 114 people and reviewed more than three million documents.

In December 2013 the commission found the company suitable for the license, but the scandal that arose in January from accusations of sexual misdeeds against the company’s founder and CEO Steve Wynn led to another investigation of the company after Wynn’s involuntary departure.

Wynn under its new CEO Matthew Maddox conducted an internal investigation, whose findings were presented to the company’s board of directors three weeks ago.

MGC did a similar investigation in 2013 into the CEO of Ourway Realty, the owner of Plainridge Racecourse, who had improperly skimmed money from the operation for many years. The CEO, Gary T. Piontkowski, was forced to resign from the company. The commission then forced Ourway to sell the racetrack to Penn National Gaming before the commission would grant a license to Plainridge to host the casino.

In that past investigation the commission was extremely interested in how the company itself reacted when it discovered what its CEO had done and how it rid itself of him. It was also very interested in how his successor worked to change the company’s underlying culture.

The commission at that time wrote: “Though he (Piontkowski) is no longer part of the organization, we must consider the systemic issues that allowed those practices to take place, what has been done to remedy those deficiencies, and what the outlook for the future is vis-à-vis the operation of a category 2 (slots) gaming establishment.”

After raking Ourway for allowing the abuses to take place and not detecting them, it forced the company to sell the racetrack to Penn.

The question is, will it reach a similar decision regarding the new Wynn management?

The new management is still involved in housecleaning. It recently forced the resignation of Kim Sinatra, general counsel, who Wynn’s ex-wife claimed to have given her information about other settlements Steve Wynn had made to accusers.

Wynn Resorts is also being investigated by gaming regulators in China and Nevada. One thing all the regulators seem to worry about how much of Wynn’s power and influence over every detail of the business he founded remains.

It did not go unnoticed that Wynn’s board of directors accepted his resignation with “a heavy heart,” instead of saying “good riddance” and the board’s “lack of diversity” was also heavily criticized.

In the case of Piontkowski’s departure, the MGC criticized the company for not punishing him more, for giving him severance pay: “Though the principals described the decision not to hold Piontkowski accountable as one that would essentially help them avoid the disruption of likely protracted litigation at a critical juncture, it sends the wrong message not only to the Commission, but to the other employees who see this wrongdoing being rewarded in this fashion. Indeed, this was seemingly the first big decision of the new administration.”

On the other hand, the commission is very aware that if it takes away the license this might have the effect of punishing the city of Everett—and catastrophic for the project itself.

The board could decide that the new management has taken appropriate actions since Steve Wynn’s departure, including implementing new procedures that demonstrate a new company culture.

At last week’s meeting Bedrosian told the panel, “We have repeatedly stated from the beginning that one of the four primary elements of the IEB’s review centers on an assessment of Wynn Resorts and the board’s response to the findings of its independent review. Investigators will now review and evaluate this additional information and expect to conclude their work by the end of this month.”

Although Wynn Resorts is in hot water because of its former leader’s anti-woman attitudes and sexual harassment, somewhat ironically the construction crew for the $2.5 billion project is exceeding the project’s goals for women in the workforce by 0.3 percent, with 328 women currently working at the site. The hiring goal was 6.9 percent.

The Northeast Center for Tradeswomen’s Equity has set a goal of 20 percent in the building trades by 2020.

Illinois state Rep. Bob Rita will hold the first of two hearings on sports betting before the Gaming and Sales and Other Taxes House subcommittees on August 29 in Chicago. Rita said the goal of the hearings is to bring together stakeholders and lawmakers to draw up sports betting legislation for the 2019 session.

Rita said, “As I have said from the beginning in working on this issue, gaming expansion presents many tremendous opportunities to create revenue, jobs and economic growth in Illinois. The gaming landscape has changed significantly since I took on this issue five years ago, and I want to use these hearings to understand how those changes present new opportunities for us to put the right package together as we look to meet budget needs and provide a spark for our economy.”

Rita will outline his proposed measure, SB 7, which was introduced in the last legislation session, and would create a Chicago Gaming Authority, amend the Illinois Lottery law and establish an internet gaming board. Rita has proposed amending the bill to lay the foundation for sports betting.

Speakers, besides Rita, will include members of the State Legislature’s Commission on Government Forecasting and Accountability; officials from the cities of Chicago, Rockford Waukegan and Danville and the South Suburbs; representatives from Fairmount, Hawthorne and Arlington horse racetracks seeking slots and table games; companies seeking to legalize sweepstakes machines; video gaming organizations; and opponents of SB 7.

Also among those attending the hearing will be Rockford Mayor Tom McNamara. Rockford is in a race with Beloit, Wisconsin to build a casino just across the Wisconsin state line. “We’re seeing Ho Chunk Casino wanting to build a $450 million hotel complex just 15-20 minutes from us.

My hope is that the legislature will have the courage to move this legislation forward once again, expand gaming and bring in some much needed revenue to the City of Rockford,” McNamara said.

State Senator Dave Syverson who represents Rockford said he plans to emphasize the importance of moving quickly. “That means we lose a whole year on construction, and that becomes a real problem. I’m hoping that those attending the hearing are going to stress the fact that we don’t have time to play games with this.” He added, “A casino could bring millions of dollars a year in revenue to the city and to the county, which takes pressure off of property taxpayers. It could add a couple hundred of good paying jobs.”

A second hearing will be held in Springfield in October, and will address sports betting, online gaming, fantasy sports.

The Pennsylvania Gaming Control Board recently levied $80,000 fines against both Washington Trotting Association Inc., operator of the Meadows Racetrack & Casino in Washington, and Valley Forge Convention Center Partners L.P., operator of the Valley Forge Casino Resort in King of Prussia.

The Washington Trotting Association fine was the result of unauthorized employees at the Meadows Racetrack & Casino issuing more than $830,000 in complimentary services during an 8-month period from 2009 to 2017. State-licensed facilities are required to specify a predetermined group of employees to be authorized to award complimentary services valued at a set amount.

Valley Forge Convention Center Partners was issued two fines totaling $80,000. One $50,000 fine was the result of Valley Forge Casino Resort’s failure to safeguard its revenues and assets and failure to maintain reliable and accurate financial records, including ensuring access, conducting regular audits and ensuring segregation of audit functions and responsibilities. These actions were traced to a single employee who attempted to fraudulently collect reimbursements related to work. Criminal charges have been filed against the employee.

In addition, Valley Forge Convention Center Partners was fined $30,000 for the casino’s noncompliance with board-approved guidelines and rules for Spanish 21.

Just three months after the U.S. Supreme Court legalized sports betting, five Mississippi casinos now are accepting sports bets, and several more are getting ready to open their sports books before the professional and SEC college football seasons start in less than two weeks.

MGM Resorts International’s two Mississippi properties–Beau Rivage Resort and Casino in Biloxi and Gold Strike Casino in Tunica–were the first in the state to offer sports betting, on August 1, the 26th anniversary of legal casino gambling in the state. Boyd Gaming’s IP Casino Resort in Biloxi and Sam’s Town in Tunica followed two days later, and Horseshoe Casino in Tunica opened its sports book one week ago.

Officials at Native American casinos said no dates have been set but they expect to offer sports betting before Labor Day. Construction is under way at Golden Moon Hotel and Casino in Choctaw for the Sportsbook at Timeout Lounge. Sports betting also will be available at Bok Homa Casino near Laurel.

And Penn National Gaming said last week sports betting at its five Mississippi casinos— Hollywood Casino Gulf Coast, Boomtown Casino Biloxi, Hollywood Casino Tunica, 1st Jackpot Casino Tunica, and Resorts Casino Tunica—would all be up and running by the end of August.

At present, sports bets only may be placed at betting windows in a designated area within the casino. That will change in the near future as casinos develop mobile apps to allow customers to place a bet on their mobile devices from anywhere on a casino property, including their rooms, restaurants, lounges and at gaming tables and machines. Mobile or online betting is not allowed off the casino grounds, which would require separate legislation.

Gold Strike President and Chief Operating Officer David Tsai said the debut of sports betting there has been “smooth with no issues.” He added, “The handle amount of money bet has been lower than we expect long-term. The better gauge for long-term volumes will be once football season kicks off in September. That said, our handle and betting volumes already exceed that in many Vegas casinos. We are seeing hundreds of guests coming on property to place sports wagers in our new sports book.”

Beau Rivage Vice President of Marketing Brandon Dardeau said, “We’ve had a steady flow of people even though we opened the sports book at a slow time of the sports season. We’re really happy with the way we’ve started off.” Bettors there can wager on everything from Major League baseball to professional golf to NASCAR, plus the first weekend of college and NFL football, as well as the number of games a particular football team will win this coming season.

Mississippi Gaming Commission Executive Director Allen Godfrey said no financial figures will be available until the end of the month. He noted sports betting is not expected to be a significant producer of revenue for Mississippi casinos, which could be $35 million-$150 million. For example, in Nevada, Godfrey said, sports betting accounted for 2.5 percent of overall casino gambling revenue in 2017; slots generated 63 percent of overall profits and table games 33 percent. In Mississippi, casino revenue is taxed at 12 percent with 8 percent going to the state and 4 percent to local government.

Statewide, in 2017 casino revenue fell more than $40 million to $2.08 billion. Revenue was slightly up for Gulf Coast casinos, but was down about 5 percent at the river casinos.

Dardeau said, “It won’t be anything like the revenue from slot machines or table games. It will be a very small percentage. In our view, it’s more like another amenity to bring people to the casinos. It’s something else we can offer as part of the total experience. It’s more about driving traffic.”

Mississippi was among the first states to approve sports betting, since lawmakers passed legislation in 2017 to allow it if the U.S. Supreme Court lifted the federal ban. Sports betting still is illegal in bordering states of Alabama, Louisiana, Arkansas and Tennessee. Mississippi casinos are planning intensive marketing campaigns in those states.

Eldorado Resorts, Inc. has reached an agreement with Churchill Downs Inc. (CDI) to transfer operations of its Lady Luck Casino Nemacolin Farmington, Pennsylvania for a consideration of $100,000 cash.

This managerial agreement was a condition of the closing of the previous agreement to sell Eldorado’s Presque Isle Downs & Casino to Churchill. CDI will pay a $5 million termination fee associated with the termination of the agreement to buy Eldorado’s Lady Luck Casino Vicksburg. The sales are expected to close in the fourth quarter of 2018.

The Louisville, Kentucky-based Churchill Downs announced in a press release last week that it would assume management of the Lady Luck. The convoluted negotiations between Churchill and Eldorado began several months ago when CDI agreed to buy both Presque Isle Downs and the Lady Luck, with the goal being to be in a position to enter the sports book industry.

Then the Federal Trade Commission objected to the transaction on anti-trust grounds. This prompted Eldorado to propose a revised offer that included managerial rights to another Lady Luck property.

In July Eldorado CEO Gary Carano announced the deal: “We are delighted to work with the team at Churchill Downs to move forward with our planned divestiture of Presque Isle Downs and believe the transfer of the management of Lady Luck Nemacolin to Churchill will allow Eldorado Resorts to realize meaningful tax benefits.”

The deals are contingent upon gaming licenses being issued by the Pennsylvania Gaming Control Board. Earlier the control board approved of the Presque Isle transaction.

It was also contingent upon the operational acquisition of the Lady Luck Nemacolin, which required early termination of the normal waiting period. The Federal Trade Commission granted the early termination August 3.

Once the deal is consummated CDI will have gaming interests in seven states. Ever since the Supreme Court lifted the federal ban on sports betting CDI has been maneuvering to be in a position to take advantage of that in as many states as possible.

Around the same time as the Supreme Court decision CDI finalized a partnership with SBTech to assemble an online platform “consisting of the consumer website, mobile apps, and back-office systems to manage iGaming and sports wagering.”

SBTech CEO Richard Carter said at that time that his company was “thrilled to have Churchill Downs as our first U.S. partner. The combination of Churchill’s leading presence in the U.S. market, coupled with SBTech’s deep expertise in regulated sports betting markets globally, makes for an ideal partnership as we enter this monumental chapter in the U.S. gaming industry.”

Concurrent to that partnership CDI announced plans to offer online gaming in New Jersey using the Golden Nugget gaming license.