Author: Casino Connection Staff

Massachusetts Removes Wynn’s Name From License

The Massachusetts Gaming Commission last week voted to remove Steve Wynn’s name from the license of the $2.5 billion casino his former company is building along the Mystic River overlooking Boston.

In its eight-page written order the commission said Wynn “can no longer exercise control or provide direction to Wynn MA, LLC or Wynn Resorts Ltd. in either of those capacities as a matter of law.” It added that there was “substantial evidence that the relationship between Mr. Wynn and Wynn Resorts has been terminated in a meaningful way such that Mr. Wynn no longer falls within the definition of qualifier at the conclusion of the upcoming annual shareholders meeting.” That meeting will happen May 16.

Wynn, who founded and led the company for 15 years, had in February resigned as chairman and chief executive officer and divested himself of all financial interests in the company in the wake of a sexual misconduct scandal that involved a $7.5 million payment by him to a massage therapist who claimed he raped her, as well as numerous other allegations—all of which he denied and continues to deny.

The removal of his name from the license signals a concession by the MGC that it is dealing with a different casino company than the one that its investigators have strenuously targeted since the Wall Street Journal report in January brought the Wynn accusations to light. But that doesn’t mean the investigation into the company’s continued fitness to operate a casino in the Bay State does not go forward.

Wynn and the company had requested that his name be removed as a “qualifier” for the casino. The commission’s legal definition of a “qualifier” is someone who has a “professional interest in a gaming license.”

As another signal that the company has completely severed ties with its founder, Wynn has renamed the Wynn Boston Harbor as the Encore Boston Harbor.

At the April 27 hearing previous to the ruling the new Wynn Resorts CEO Matt Maddox made a point of contrasting his style with that of the flamboyant Wynn, especially emphasizing his own small-town Arkansas origins and a man who is moving the company towards family values and sexual equality.

When one of the commissions, Gayle Cameron expressed skepticism about the company’s true motives in adding three new women to its board of directors, Maddox emphasized that he is from a new generation of leaders.

Cameron first observed that the women were “eminently qualified” to serve on the board but that they had been qualified five years ago. “I just have to make the point that there’s an issue around women, and now women are more valuable to the board. I see what you’re doing, but it just seems to me the company as a whole didn’t value women until they got in trouble at the Board level.”

Maddox replied that he was 42-year-old father, with two daughters and a son. “If you think for one second that I want my 10-year-old son to have any additional benefits or a better environment in the workplace than my daughters, that’s not true. I am part of the generation that believes this. I’m part of the generation that’s driving this. So, I don’t think it’s anything about what the company did do or didn’t do. Crisis sometimes creates opportunity. You can let crisis drive you down or you can take it and make something great out of it. That’s what I’m committed to do.”

Later Maddox suggested that reporters look at his entire career before deciding if he should be trusted to carry out this pledge. “Check with anyone I worked with at Bank of America or Caesar’s Entertainment. For people who have work with me while I’ve been at this company 16 years, you are going to hear that I do what I say. I’m a small-town kid from Arkansas. I grew up in a place where family and community values matter. It’s who I am and I would challenge anyone to come out and say that’s not who Matt Maddox is.”

During that same hearing Wynn attorneys provided large quantities of documents to buttress the contention that the founder is no longer connected with the company.

However, the commission was also keenly interested in whether Wynn’s influence lingers on, even though he himself does not. In other words, has the culture of the casino giant changed. That prompted Maddox’s 45-minute testimony about the actions he has taken since becoming head of the company.

He first held extensive meetings with employees around the world to shore up their confidence and launched a new campaign dubbed “We Are Wynn” to emphasize that the changes were not simply window dressing.

New banners have gone up at the construction site of the new Encore Boston Harbor, with pictures of employees displayed. Maddox’s picture is shown too, but no larger than the others. It is labeled simply as “leader.”

Maddox said, “I reminded them this company is not about a man and hasn’t been for 18 years. Steve Wynn is not Wynn Resorts. Wynn Resorts is about 25,000 employees and the people who grow this company every day…That’s what it represents.”

He also took actions to settle billions of dollars of litigation between the company and Universal Entertainment of Japan. These lawsuits were really personal disputes between Wynn himself and the other founder of the company.

Maddox settled the litigation for $2.4 billion. Then he persuaded the founder to sell his 12 million shares, which represented 13 percent of the company, not on the open market, but to handpicked investors, Capital Research, Galaxy Entertainment of China and T. Rowe Price, “so the company could have strong shareholders.”

He told the commission that while it may not seem like change is happening fast enough, “they’re moving at lightning speed.” The company

The additions of the three women to the board will be followed by other changes, Maddox and Legal Counsel Kim Sinatra promised. “The idea is to make an orderly transition. This is about as much as a publicly traded company can take at one swath,” said Sinatra.

To prevent Wynn from exerting influence at a distance, a new company policy request senior management and board members to report any contact they have with the former CEO in writing.

The company has also initiated a Culture and Diversity Department and brought on a third party to conduct sexual harassment training.

The commission did not issue a ruling on whether the company is suitable to operate a casino in Massachusetts after Maddox spoke. It is expected to do so by the summer.

Wynn Resorts is also under investigation by the Nevada equivalent of the commission.

Rather than focusing on the change in the company’s culture, investigators seek to know if executives were aware of Wynn’s misconduct at the time the company was seeking to qualify for a license to operate the Boston metro casino.

The commission could, if it chooses, revoke the license.

Because of the investigation and the possibility that it might lose the license, Wynn has been in contact with other companies, including MGM Resorts International, about selling the Everett property.

Maddox has admitted to the commission that these talks are taking place. He says Wynn wants to remain in the Boston market, but might sell if the commission rules against it.

Meanwhile, the casino, under construction in Everett, is moving toward a June 2019 opening.

 

MGM Springfield

With the $960 million MGM Springfield due to have its grand opening August 23, the casino has started rising signs by crane. The first read “Hotel” and included the MGM lion logo.” It was installed along Main Street.

This was followed by another sign on the rotunda of the hotel and included the MGM name mated with Springfield.

The casino will have 2,500 slots, 94 gaming tables, 23 poker tables, a spa, dining, cinema, bowling alley and rooftop garden.

To prepare for the opening MGM is hiring 3,000 employees, of which two thirds will be fulltime with benefits.

General Manager Alex Dixon says that they look for friendly people. At a recent job conference, he remarked, “One thing that never fades is a smile. And that’s the first thing that we look for when people walk through our doors looking to get hired.”

He noted that the casino is “pursuing our best effort” to hire more than a third of those from Springfield. Dixon was the keynoter at the Commonwealth Workforce Coalition annual conference. He said, “We can teach you how to deal cards, we can teach you how to make sure that you can construct a building and make sure it’s set, we can teach you how to pour a drink, but we cannot teach you how to smile.”

Urging friendly people to apply for casino jobs, Dixon said, “You’re going to walk in and you’re going to see the beautiful chandeliers, carpet underneath, the table games, the spa, the hotel, the food and beverage outlets. But none of it matters. None of it matters if we don’t have the right people in that spa, in security.”

MGM Springfield also hosted its first large-scale job fair last week at the MassMutual Center a few blocks for the casino. The event was by invitation. About 700 Job seekers were able to complete the hiring process and get an official welcome. Most still need to undergo background checks, drug screenings and in some cases obtain a license from the Massachusetts Gaming Commission. Most of the positions were for security employees, food and beverage workers and cage workers. Dealers are hired through a separate process.

Another, larger hiring event will be held in June at which time 1,500 potential employees will be invited, with about half expected to be office jobs, according to Mirikate Murren, vice president of human resources.

“The call to action here is to apply,” she said. “Apply for a position with us, and that begins the process.”

Despite an economic resurgence for most of the nation, Springfield still has a 6.5 percent unemployment rate.

The city has been working with a consultant on how to utilize the investment MGM is making to spark a renaissance downtown.

Recently city council members, city planners and casino officials met with the consultant who prepared the report “An Economic Development Strategy — The Renaissance of a Great American Downtown,” to discuss how to bring new developments to downtown, to help make Springfield a center for conventions, meetings and entertainment and to partner with companies and civic organizations to bring more accessible housing to the downtown. All while attracting more businesses and employees.

It seeks to “to try and capitalize on and leverage this large economic development project (MGM) through key economic strategies.”

The city and MGM split the $200,000 cost of the report, which offers a blueprint and action plan, which was developed by Chicago Consultants Studio.

Kevin Kennedy, Springfield’s chief development officer, told the group, “The area around the casino cannot be neglected,” adding, “We are planning to look at different strategies that will help everybody in the area surrounding the casino.”

City officials are painfully aware of and point to blighted parts of town and properties near the casino.

With the casino’s opening pending some tourism groups in the Berkshires, i.e. Western Massachusetts, are hoping to forge regional partnerships.

An estimated 9 million adults live within a 90-minute drive of Springfield. MGM has committed to spending $50 million with local vendors, to hold events near the city and partner with area tourism groups.

On the other hand, some area nonprofit performing arts centers worry that their sales could be hurt by the casino’s ability to spend more to book talent. The Mahaiwe Performing Arts Center in Great Barrington, while not noticing a decline in sales yet, is concerned that the casino could dry up its access to available artists.

The casino’s General Manager Alex Dixon believes that the whole region will benefit from the added activity level.

“From a player development or high-end guests standpoint, there are so many amenities within Berkshire County,” Dixon told the Berkshire Eagle. “It’s an opportunity for us to showcase what is great about Western Massachusetts.”

According to Dixon, most of the $50 million that the casino committed to spend locally is still being sought or negotiated. He could confirm that contracts with Berkshire Mountain Distillers in Sheffield and Berkshire Brewing Co. have been finalized. He said the casino’s food and beverage director has been working with these companies for some time.

MGM expects to hire about 3,000 fulltime employees and is well on its way to hiring them. Even though the Berkshires is half hour’s drive from the MGM, 160 people from that area have submitted applications.

Dixon said, “We’re thrilled about having that already in the queue and we’re still months away from fleshing out the whole team. Our jobs message is reaching out to Berkshire County … and we’re encouraged on that front.”

Southern Berkshire Chamber of Commerce Executive Director Betsy Andrus said she doesn’t believe that many people from the county will end up working at the casino because of the long commute.

The Massachusetts Cultural Council will get 2 percent of the taxes generated by all of the Bay State’s casinos or about $4 million annually. It will be making grants to help nonprofit arts groups and municipally owned venues impacted by gaming.

Executive Director Anita Walker told the Eagle, “There’s a strong feeling that [performing art centers will] feel the negative impact quickly. There will be a lot of excitement and enthusiasm; I’m sure the casinos are already booking, and arts centers are already facing that competition, I imagine.”

These grants could begin as early as this winter, although no official start date has been announced. “Rather than waiting for a whole year then distributing the money the following year — we wouldn’t want to wait much longer than six months,” said Walker.

Springfield’s License Commission last week approved two package store licenses that will allow the casino to sell bottles of wine and beer at the casino hotel and at a restaurant opening there: the Cal Mare. The latter is unheard of in Massachusetts.

Commission Chairman Peter Sygnator remarked on this last week. “The retail package store license for the Cal Mare Restaurant is very unique and I am looking forward to seeing the selections of wines offered by MGM.”

MGM Springfield spokesman Saverio Mancini commented, “The vision of incorporating Main Street store fronts into our resort allows us to naturally blend with the unique existing, historic atmosphere that is so important to the community.” He added, “Building in a high-end wine shop as an element of our Cal Mare restaurant creates an amenity that can be enjoyed by our guests, as well as Main Street visitors, business people, and residents.”

The Cal Mare plans to offer high-end wines, ranging from $50 to $900. The license allows customers to buy wines and take them with them. The Cal Mare will be operated by celebrity chef Michael Mina, and will feature coastal Italian cuisine.

Sports Betting Shuffle

The Supreme Court decision in early May that in effect legalized sports betting in the U.S. has had a wide range of impacts. It was already legal in Delaware, but only for the NFL and in a parlay situation. In New Jersey, Monmouth Park racetrack is ready to go but threats from state officials will keep it closed until a bill is approved. But Mississippi might be the dark horse, which opens the nation’s first sports books outside of Nevada. In alphabetical order, here’s the list of states that responded to the May 14 Supreme Court decision.


ALABAMA

A spokesman for Alabama Attorney General Steve Marshall said a constitutional amendment would be necessary to authorize sports betting. “It is our view that a constitutional amendment would be the only way to conclusively establish the legality of sports gambling. Monday’s U.S. Supreme Court decision is not about whether sports gambling should be legal, but whether states should have the right to decide that question for themselves. In Alabama, sports gambling is already against the law and the court ruling does not alter that fact.” 

Other experts said sports betting would be easier to establish in Alabama because, unlike lotteries, it is not explicitly banned in the state constitution. Cumberland School of Law Professor and former Magistrate Judge John Carroll said, “Right now only Section 65 of the state constitution prevents lotteries or gift enterprises. I don’t think we need a constitutional amendment. It’s up to the legislature to how they want to proceed.”

He said sports betting only would have to be approved by the legislature, then voters would have to approve it in a referendum.

Former Alabama Solicitor General John Neiman agreed, citing a 1979 Alabama Supreme Court opinion that legalized dog racing in the state.

“The rationale the court gave is a lottery is a type of game in which chance predominates over skill but the court said betting on dogs requires an amount of skill,” he said.

Similarly, betting on sports like college football would be a game of skill, Neiman said. “That bet requires knowledge about how Nick Saban (University of Alabama head coach) is going to coach, how Gus Malzahn (Auburn head coach) is going to coach, how the players are going to perform, and the like,” he said.

The Poarch Band of Creek Indians operates three casinos in Atmore, Wetumpka and Montgomery. Those venues could start offering sports gambling if the tribe legalizes it. American Gaming Association Senior Director for Strategic Communications Will Green said, “The choice rests with the tribes.”

Green noted “It’s pretty obvious, especially in SEC country, that betting is going on at colleges. I think we’d all be naïve to think otherwise. Think how many students at Auburn are betting on their phone on a Caribbean website, and they don’t even know, a lot of times it’s illegal for that website to accept their bet.”

Green added, “Betting on convenient, shady websites is not legal, and it doesn’t seem like it’s a big deal, but it fuels the black market, and it fuels criminal enterprises, and it doesn’t protect consumers. College students are tempted with that choice every day. Think about not betting them on the illegal market. For the Iron Bowl next year, drive to Mississippi.”

State Rep. Joe Lovvorn said the sports betting ruling gives lawmakers much to consider.

“I would just know and hope that all my colleagues will get as educated as possible to start looking at the issues and that we don’t jump to any action that would, long-term affect Alabama in a negative way,” Lovvorn said.

 

CALIFORNIA

Indian gaming, which is an $8 billion business in the Golden State, operates off of the guarantee that Las Vegas-style gaming is their exclusive provenance, guaranteed by compacts and by the state constitution. Tribes claim that exclusivity guarantee extends to sports betting now that it is legal.

Rep. Adam Gray has introduced a bill that, if passed, would put an initiative on the November ballot that could amend the state constitution to allow sports betting. The deadline to make the ballot is late June.

The exact wording of that bill is likely to involve intense negotiating between all the players and lobbyists of the various interests, which, besides tribes, would include just about anyone who could offer sports betting, such as the state’s 90 cardrooms and its seven racetracks, but conceivably lottery vendors as well. Adding spice to this process is that any bill to amend the constitution must be approved by two-thirds of both houses. That implies that only a proposal where almost everybody is happy will make the cut.

Steve Stallings, chairman of CNIGA (California Nations Indian Gaming Association) sent a formal request last week that tribes have a place in any negotiations.

“California voters have, on numerous occasions, confirmed the exclusive right of California tribal governments to operate casino-style games,” he said. “Legalization of sports betting should not become a backdoor way to infringe upon exclusivity.”

The National Indian Gaming Commission (NIGC) issued a statement last week that echoes Stallings. It said, “As federal regulators, we have learned first-hand that there is tangible benefit to having tribes, as primary regulators, driving decisions as to how gaming will operate on their own lands. As federal and state governments consider how to address sports betting in light of yesterday’s decision, we anticipate that tribes will be given a seat at the table to voice their positions, bring their perspectives and collective expertise, and maintain regulatory and operational control over all the gaming that occurs on their lands.”

Tim Ritvo, chief operating officer of the group that owns Santa Anita Park, hopes racetracks will be included in sports betting, but he expects a fight from the tribes. He told the Los Angeles Times: “I thought the Indians would work together with the horse tracks and the brick-and-mortar card clubs to have brick-and-mortar betting operations,” he said.

Larry Flynt, owner of the Hustler and Lucky Lady card clubs, noted that such a fight would be tilted in the tribes’ favor.

“The Indians have a very powerful lobby,” he said. “Indians have a lot more money than the card clubs,” Flynt said. “It’s always a struggle on every issue because the Indians have a very powerful lobby.”

Because of all of the heavy lifting that would be needed, Gray concedes that the chance of making the November ballot with his proposed constitutional amendment is slim.

The fact that almost unanimous agreement is required to refer an amendment to the voters is similar to the long-simmering struggle to legalize online poker in California. Competing tribal interests have prevented such a deal from happening for ten years. They could prevent this deal too.

Jennifer Roberts, associate director of the International Center for Gaming Regulation at the University of Nevada in Las Vegas told the Los Angeles Times: “You can expect lots of money to be spent.”

In 2004 tribal interests spent $33 million to defeat an initiative that would have allowed the state’s card clubs and racetracks to have slot machines.

Stallings agrees. In an interview with the New York Times he said, “If you can’t solve internet poker, I don’t know how you solve something like sports betting.”

Doug Elmets, who is the public relations adviser to some of the largest gaming tribes in the state, thinks self-interest will fuel some sort of action. “As the fifth-largest economy in the world, California is not likely to sit by and watch potentially substantial amounts of revenue go to other states,” he told the New York Times.

 

COLORADO

Colorado Department of Revenue Executive Director Michael Hartman recently noted state law “specifically prohibits sports gambling. It makes sports gambling illegal. So the first thing that would need to take place is the legislature would have to change that prohibition. The second is constitutional related. So it’s possible we would also need a constitutional change, which would require a vote of the people.”

Hartman added, “Because Title 18 specifically outlaws sports betting at this point, today we can’t do anything and wouldn’t be able to participate regardless of what the recent Supreme Court ruling was. I think taking time to learn lessons from others is always a good thing.”

Colorado Gaming Association Executive Director Peggi O’Keefe said sports betting is at least 18-24 months off in Colorado. If the legislature allows it, sports wagering most likely will be offered at first in Black Hawk, Central City and Cripple Creek, where gambling infrastructure already is in place.

“We believe voters have spoken repeatedly that they like to keep gambling in those three mountain communities,” said O’Keefe. “Every time there’s been an attempt to allow gambling outside of the mountain communities it’s failed miserably—anywhere from 68 percent to 90 percent failure rate.”

O’Keefe added, “Folks like the idea of gambling limited up in the mountains, not in their backyard, not on the street corner, not adding transportation woes. Not adding concerns with what might be going on. They like it in the mountain towns, where it’s in a confined area.”

 

CONNECTICUT

Connecticut Governor Dannel P. Malloy met with lawmakers to discuss what comes next now that the state has the option of legalizing sports betting. He hasn’t ruled out holding a special session to address it.

“There’s a general understanding that the world has changed in light of the court’s decision” and Connecticut must “do something” said the governor. The legislative session ended May 9 before a bill could be adopted.

Malloy said he wants to ensure that the state’s revenue sharing with its gaming tribes isn’t endangered by any legislation.

Connecticut’s two gaming tribes, the Mashantucket Pequot Tribe and the Mohegans, operate Foxwoods and the Mohegan Sun respectively. Besides fighting off an attempt in the legislature to commercial gaming, the tribes are simultaneous claiming that if the state allows anyone but them to offer sports betting that will violate their compacts, resulting in the state losing the 25 percent of profits that they pay the state.

The compacts, signed in the 1990s, have resulted in billions of dollars in shared revenue to the state. Last year it was $270 million, although the amount has been steadily declining for several years.

Mohegan Attorney General Helga Woods fired a warning shot across the state’s bow recently warning that if a non-tribe was allowed to offer “video facsimile gaming” that would violate the exclusivity of the compacts. That apparently includes sports gaming.

Legislative leaders and state Attorney General George Jepsen differ with that interpretation. A bill in the legislature would allow the tribes, the Connecticut Lottery Corporation and Sportech, which operates OTB parlors, to offer sports betting.

Pequot Tribal Chairman Rodney Butler has offered to negotiate. “We have said, ‘We want to work with you,’” he told the New York Times. “Let’s work out an arrangement.”

Mohegan Chairman Kevin Brown appeared at least open to the idea of including the Connecticut Lottery Corporation and Sportech, which are mentioned in the proposed legislation, in negotiations.

“We don’t want to make it such a high hurdle,” said Brown, “that our exclusivity prevents us from being a first mover here.”

Gaming tribes all over the U.S. are maneuvering to get a slice of the sports betting pie, in some cases arguing that they should get all of it, depending on the state.

It could be a huge pie. In Great Britain, which has a sixth of the U.S.’s population, sports betting accounts for $20 billion. Illegal sports betting in the U.S. is estimated to be $150 billion annually.

Since the Indian Gaming Regulatory Act of 1988 tribal gaming has expanded to become a huge $31 billion industry. But those games were always confined to slot machines and table games. Nevada was the only jurisdiction that offered Sportsbook and it has been profitable: $10.6 billion last year. Now that will change.

Tribes are cinching up their belts for a long-term fight as some of them argue that existing tribal state gaming compacts reserve the new form of gambling to them—although IGRA never mentioned it, and neither do any compacts.

 

DELAWARE

Most expect New Jersey to be the first state to be up and running with sports betting in the wake of the U.S. Supreme Court decision, but many are saying the first state will be the First State, Delaware.

Delaware officials confirmed last week that the state’s casinos are free to open sports books immediately, under a state law passed in 2009. That law was challenge in a lawsuit from the sports leagues under PASPA, resulting in the courts restricting Delaware to three-game parlay bets on NFL games, the program that was in place prior to PASPA.

With PASPA no longer a valid law, the 2009 law is affirmed, according to a statement from the Delaware Department of Finance and state Attorney General Matt Venn.

“There are no legal obstacles to moving forward with full-scale sports betting in Delaware, including head-to-head-betting, which permits single-game wagering,” the statement said. “Under state law passed in 2009, Delaware may authorize betting on professional and collegiate sports, with the exception of games involving Delaware-based teams.”

According to a report from Delaware Online, the state could be ready to roll as early as the first week in June. That could give it first place in the race to implement new state-level sports betting.

Delaware is one of four states that had some form of PASPA exemption due to prior sports-betting programs developed by the state lottery. Nevada was the only grandfathered state with full-blown, single-game wagering.

Finance Secretary Rick Geisenberger’s statement said, “Following Monday’s ruling by the U.S. Supreme Court and consultation with the Delaware Attorney General’s Office, we are confident that Delaware has the legal and regulatory authority to authorize sports gaming in Delaware. The Delaware Lottery has had plans in place for months, and we will begin training lottery and casino staff early next week. We will continue to provide public updates as we prepare to launch full-scale sports gaming in Delaware next month.”

At least one casino is completely ready—after passage of the 2009 law, Dover Downs spent $1 million to build a state-of-the-art sports book. The lawsuit from the leagues forced the space into other purposes.

 

FLORIDA

Experts agree sports betting is unlikely to happen in Florida for quite a while. Two significant obstacles would have to be overcome for sports betting to take hold: the Seminole Tribe and Amendment 3. If it passes, the proposed constitutional amendment on the November ballot would give Florida voters future exclusive rights to make decisions about expanded gambling. Regarding the Seminoles, the tribe could see sports betting as expansion or competition.

Even if Amendment 3 fails, experts said it’s important to remember the legislature has not passed any comprehensive gambling measures for several years. But that could upset the parimutuel industry, which may see a sports book as a significant economic boost. However, its actual impact would depend on how the industry was regulated. For instance, if the state also approved mobile apps for betting, that might reduce the number of people who show up at casinos.

If Florida does approve sports betting, it could charge licensing fees to casinos and racetracks and take a share of the profits. Currently all of that money is handled illegally.

Under the Seminole compact, the tribe pays the state millions of dollars annually in exchange for exclusivity to offer blackjack and other banked card games, and more. If the state allows sports betting at racetracks or online, the tribe could be within its rights to stop the payments.

Attorney and author Darren Heitner said, “It’s all guesswork right now, but I imagine Florida will take a wait-and-see approach. It’s not a matter of two years, it’s probably more like five years away in Florida. I think they’ll look at other states and see if there is any increase in illegal activities because of gambling, and weigh that against the potential benefits and revenues.’’

 

ILLINOIS

Illinois state Rep. Napoleon Harris recently sponsored one of the measures that would set rules regarding sports betting taxation and regulation. “In my mind, there’s no question Illinois is going to approve a sports law allowing gambling on sporting events. It’s just a matter of when,” Harris said. The legislation would allow Illinois residents to bet on amateur, professional and college games at casinos and online.

Harris added he wants his colleagues to approve rules before neighboring states, including Wisconsin, Indiana and Iowa. “If they allow sports gambling in Indiana before they do Illinois, I can see a lot of Illinoisans just jumping the border, placing bets,” he said. He stated discussion over the legislation has speeded up since the Supreme Court’s decision.

Chicago Mayor Rahm Emanuel hasn’t announced a position but said if sports betting legislation passes, the city should get a share of any proceeds.

“First of all, you know that’s a question for Springfield, it’s not a question for Chicago. That said, if Springfield takes action, I want to make sure Chicago receives its resources back. But the first step has to be the action taken by Springfield,” he said.

State budget negotiators said they would not count on money from sports betting as they attempt to put together spending plan as the session heads to adjournment.

Representatives from casinos, horse racetracks, professional sports leagues and anti-gambling advocates gave testimony on sports betting in Illinois in April. Gambling supporters argued for low taxes and regulation to achieve a competitive market that would attract customers now betting illegally. Gambling opponents said sports betting, particularly online, could attract young people and lead them into addiction and debt.

An Eilers & Krejcik Gaming study indicated sports betting earnings could total around $680 million, with tens of millions going to the state in tax revenue.

 

KENTUCKY

Last September, Kentucky state Senator and former Governor Julian Carroll sponsored Senate Bill 22 in anticipation of the Supreme Court lifting the federal ban on sports betting. The bill went nowhere before the session ended. “It is very unfortunate that we did not pass Senate Bill 22 to put in place regulations necessary to collect new revenue from sports wagering in Kentucky once the ban was lifted. We could have been in front of this issue had we acted in the last session,” Carroll said.

State Rep. Steven Rudy said, “I guess anything’s possible in the future but it’s not really been on our radar. Who knows what the makeup of the legislature will be with at least 20 new members.” Rudy said he doesn’t see “any big groundswell” now but most likely the subject will be discussed between now and the 2019 session.

State Senator Danny Carroll commented, “I think people may be getting the impression sports betting would generate significant revenue. But I’m not getting the impression that would likely be the case at all, based on other states and the reading I’ve done. “There are a lot of different factors to understand how it would impact the state, and balancing that with having a basic opposition to expanding gaming. I’d also want to canvass my district and see what the people’s thinking about it is.”

Governor Matt Bevin noted, “Sports betting has happened since the dawn of time. We just came off celebrating a Derby weekend where it happened at a pretty prolific rate.” Although Bevin has strongly opposed expanded gambling in the past, he recently said it is “too soon to tell” what will happen in Kentucky regarding sports betting.

 

MARYLAND

State law in Maryland allows betting on horseraces at racetracks and limited off-track betting sites, and also allows slot machines and table games at its six casinos. However, sports betting would require a constitutional amendment approved by voters in a statewide referendum.

A bill calling for a voter referendum on the issue failed to pass in the state Senate after moving through the House of Delegates this year. Therefore, any new proposal probably would have to wait until next year, and then the earliest sports betting could be offered would be 2020.

Sports betting could provide an economic boost for horseracing, since the total money wagered at tracks nationwide has declined from $15.2 billion in 2003 to under $11 billion, according to Equibase. Industry experts believe adding sports wagering would not divert bets typically placed on races to action in more popular sports. “We don’t think it’s a negative thing at all,” said Tiffani Steer, vice president of communications and events for Stronach Group, owners of Pimlico and Laurel Park, among other racetracks. “I think that what it does is offer actually more for a customer. So if you want to come and wager on horseracing and wager on an NBA or an NFL game, you can do that, too. And vice versa: I think it potentially opens up horseracing to perhaps a whole set of customers who may not normally consider horseracing or come to a track because perhaps they’re more attracted to traditional sports betting.”

 

MASSACHUSETTS

Massachusetts Governor Charlie Baker told reporters that he expects the legislature to move quickly to regulate sports betting.

“It’s hard for me to see how we could ignore this and choose not to pursue it,” he said.

The Bay State is known for its enthusiastic sports fans. “We’ve got the Red Sox here, the Patriots, the Bruins, the Celtics,” said Senator Eric Lesser, who is expected to be one of the key players in crafting legislation because he is chairman of the Senate’s economic development committee. He told the Republican, “It’s a huge sports town and now we have a gaming law, and two brick-and-mortar casinos opening on top of that.”

However, Lesser said he hasn’t decided if he supports sports betting. “There’s a lot of elements that need to be unpacked and we’re at the beginning of that process,” he told reporters.

For the better part of a year the Massachusetts Gaming Commission has been discussing the pending Supreme Court ruling, and what it might mean for the state. Several months ago, the panel was handed a 29-page white paper on sports betting.

The paper said, “The introduction of a new aspect of the emerging gaming industry in Massachusetts presents an opportunity to bring a significant amount of gaming activity and revenues out of the shadows and into the legal market.”

It noted that mobile platforms may be the dominant method of placing bets. “While bettors in Nevada can still physically place a bet at a sports book much of the business has now turned to placing bets online or via smartphone applications, the first of which was approved in 2010” It added, “As of 2018, there are eight different sports betting apps available in Nevada.”

Baker told Bloomberg News that people will be able to bet on games while they are happening. “And the whole notion of what’s going to be possible under this is dramatically different than having sports books in Vegas, period. I mean, this is a much more significant expansion.”

To make way for sports betting, the legislature would need to decriminalize it, “such as when conducted with a state approved sports book operator,” said the paper. “Additionally, Massachusetts would need to determine if regulation of the industry would be addressed specifically via statute or regulation, as well as who should regulate the field.”

The governor said lawmakers plan to include major sports leagues, and DraftKings, which plans to offer sports betting, in the discussion. But the white paper posited a much wider field of interested participants. “Other, more exotic forms of betting include virtual sports, where the outcome of a computer-generated event (such as a virtual soccer game) is determined by an algorithm, as well as a form of ‘futures’ betting where election and entertainment (e.g. reality show) outcomes are the contest on which wagers are made,” the paper says.

The Mashpee Wampanoag Tribe, which has been stymied in its efforts to build a casino in Taunton, could be interested in jumping into internet sports betting.

The white paper emphasized the importance of maintaining the integrity of the games in order to protect consumers. “The organizations that offer the contests that are being bet on have a shared interest in ensuring the integrity of the games, as it goes to the core of why fans want to watch and bettors want to bet,” says the paper.

The first hint of game fixing could badly hurt the burgeoning industry, said the paper.

House Speaker Robert DeLeo, whose job it would be to shepherd any legislation, said he expected the issue of integrity to be brought up right at the beginning. He told reporters, “I know that this is going to be an issue that’s going to be raised and re-raised a number of times.”

The amount of taxation of sports betting will be a factor in determining its viability, said the paper. Especially since bookmakers traditionally operate on small margins. Higher tax rates could keep the industry in the shadows. “The active black-market operators pay no taxes and no regulatory costs. So they already enjoy an advantage over any legal operator that would only be compounded by a high tax rate on legal operators,” said the paper.

Although Bay State lawmakers aren’t known for moving with alacrity, but the fact that every other state is thinking about the same thing might prompt them to move faster than usual.

Lesser wants to move expeditiously but thoughtfully. He said it is possible to put a bill on Baker’s desk by July 31 when the legislative session ends. If they miss that, they won’t have another opportunity until next January.

The president of the Boston Red Sox, Sam Kennedy, last week said that government regulation of sports betting will be a “positive thing.”

In a TV interview with the New England Sports Network Kennedy said, “There’s estimates that there’s a hundred billion to four hundred billion dollars of illegal or illicit activity going on sports betting around the world.” He added, “And so it’s better to protect the integrity of the game, to have the government involved and to have regulation involved. We’ve seen that in other parts of the world with sports betting. So it’s something that baseball is working really hard to protect and to be a part of in a pro-active way.”

He said Major League Baseball and been working with other sports governing bodies to prepare for the eventually of the ban being lifted, “just to make sure that there are protections in place for the consumers, for the sport. It’s a very complex issue, but it seemed inevitable so baseball, to their credit, got out in front of it and they’ve been talking to the elected officials and we’ll see.”

The lobbying firm Smith Costello & Crawford is representing Major League Baseball and the National Basketball Association to Massachusetts lawmakers as they consider sports betting legislation. Orrick, Herrington & Sutcliffe LLP represents the PGA Tour.

 

MICHIGAN

Michigan state Reps. Brandt Iden and Bob Kosowski have sponsored four sports betting bills. Iden’s bill, HB 4926, would authorize and regulate sports betting at all currently licensed casinos—13 commercial and 23 tribal casinos–along with online and mobile sports wagering. “With the Supreme Court decision, we’ve got a lot of moving pieces. My first goal is to move my iGaming bill that includes sports betting out of the House first. That’s the one that we’ve made the most progress on,” Iden said.

He stressed he’d like to see his bill passed into law before the legislature takes its summer recess next month, but realistically he said he doesn’t expect sports betting to actually happen until 2020.

Kosowski said, “This is a huge win for Michigan. We’re finally allowed to do something that only a few states can do. Now it’s an even playing field and we’ll have a source of revenues to fix the roads and better the state’s schools.” Kosowski’s three bills would allow people to place sports bets in casinos or at state lottery terminals.

He said he believes sports betting could be offered “maybe at the start of football season. But we have to have a lot of work groups, meet with the casinos in Detroit and the tribes. We’ve got to get everybody’s intake and go from there.” He noted once the House establishes sports betting work groups, legislation could move quickly, perhaps within a month of the work groups being formed.

State Rep. Alan Morrison, who also introduced sports betting legislation, said, “July 1, 2019 would be about the soonest” sports betting could be up and running in the state. He said a study committee has been put together for this summer and legislation likely would be introduced in the next session. He said authorizing sports betting could ensure the integrity of sports with built-in monitoring and other protections.

Morrison added he understands some Michiganders will oppose sports wagering no matter what. “We have to do a good job of educating on how it would be a benefit for the state, that tax proceeds could be used to provide money for everything from roads to education. We wouldn’t be creating the industry of sports wagering. All we would be doing is allowing our gaming operations to offer what is already a legal activity.”

The Nottawaseppi Huron Band of Indians, owners of FireKeepers Casino Hotel in Battle Creek, also is keeping tabs on the Michigan legislature’s actions regarding sports betting. Vice President of Marketing Jim Wise said, “We will continue to participate in discussions with other stakeholders and will monitor any rulemaking or legislative proposals. We will continue our internal due diligence to determine if and how the tribe may add sports wagering to its mix of offerings to our patrons and guests. We expect there will be a lot of discussion about this topic in the coming weeks and months, but until there is something more to react to, it’s probably premature to speculate.”

Michigan’s tribal gambling compacts would have to be renegotiated if sports betting becomes legal in the state. Most of the tribes have lobbied against sports wagering in the past but attitudes seem to be shifting, observers said.

 

MISSISSIPPI

In 2017, the Mississippi legislature authorized sports betting as part of a bill legalizing and regulating fantasy sports. As a result, Mississippi was ready to become one of the first states to allow sports betting. And now the state Gaming Commission has proposed rules to govern sports books at Mississippi’s 28 licensed casinos. The commission is likely to vote on the proposed rules at its next schedule meeting on June 21—meaning casinos could begin to take bets in late July, well before the start of football season.

Under the new law, sports betting will be limited to Mississippi’s casinos, although the rules state bets could be made on mobile devices inside a casino. Casinos would pay state and local taxes of 12 percent of the wagers minus payouts. The new law does not include the integrity fee sought by major league sports.

Mississippi casinos will be allowed to take bets on any professional, college or Olympics sports, or any other proposition approved by regulators, except for political elections. The commission will be able to veto any wagers “contrary to the public policies of the state.”

Casinos will not be allowed to take wagers from coaches or participants. Also, casinos are required to report suspicious bets of more than $5,000, and they cannot offer special bets or special odds to a single patron. Sports books will be required to provide detailed information on individuals betting or winning more than $10,000, and they will be allowed to take bets placed on behalf of others.

Analysts said Mississippi’s casinos hope sports betting will give them a competitive edge over casinos in neighboring states. They said sports book betting most likely will not generate a lot of revenue but might attract customers who will spend money on hotel rooms, dining and other gambling.

The 25-day public comment period has begun. Comments may be emailed to Allen Godfrey, chairman of the gaming commission, at agodfrey@mgc.state.ms.us.

 

NEW HAMPSHIRE

Senator Lou D’Allesandro, a stalwart supporter of expanded gaming in the Granite state for 20 years, has promised to introduce a bill to legalize sports betting if he is sent back to the statehouse by the voters in November.

“This is a multiple-billion-dollar industry, and guess what? Everybody plays,” said the senator. “It would be in the state’s best interest to control this and not let it get out of hand, which can happen.” He promised to have a bill “ready to go” if he is returned to office.

Governor Chris Sununu said he supports some form of sports betting. He made the comments during an interview with the Concord Monitor. Referring to D’Allesandro’s determination to expanding gaming, he added, “I wouldn’t bet against him.”

New Hampshire Lottery Executive Director Charles McIntyre, who would most likely be responsible for administering such a law, said the state would collect millions in taxes. “Nationally it’s $100 billion-$400 billion a year, and if New Hampshire is a half-one percent of that, the math is the math,” he said. “It’s hundreds of millions of dollars a year of gross revenues.”

The governor said many questions need to be answered before a bill is passed.

“Is it going to be a commercial industry? How’s it going to be taxed? What are the job implications? What are the workforce implications?” he said. “All of those pieces really come to bear. We’ll have to see, but I’m supportive of the concept.”

McIntyre said if the legislature hands the Lottery that responsibility it would take about six months before it could begin accepting bets.

 

NEW JERSEY

New Jersey Governor Phil Murphy stepped into the state’s sports betting picture in a big way by anticipating $13 million in sports betting tax revenue for the state’s budget and supporting the state legislature’s stance that sports betting won’t begin until a new regulatory framework is signed into law.

New Jersey’s state budget faces a June 30 deadline. Though Murphy’s proposed budget will anticipate the $13 million in revenue, the funds are not being slated for any specific expenditure, according to the Associated Press.

Murphy’s administration is anticipating a tax rate on sports betting of between 8 and 15 percent, which agrees with sports betting bills now in the legislature. The administration also considered figures from Nevada—where sports betting has been legal—which took in $16.8 million in tax revenue in 2017, officials said.

Murphy also said that he supports waiting on implementing sports betting in the state until the legislature approves a new sports betting law and regulatory framework. That could happen as early as June 7 when both houses of the legislature could vote on their respective bills.

Technically the state’s challenge of PASPA revolved around a current law that allows for self-regulated sports betting at casinos and racetracks. The state initially lost an attempt to overturn the federal ban as unconstitutional and later passed the second law as a way around PASPA. The high court, however, struck down PASPA completely.

Still, venues like Monmouth Park Racetrack in Oceanport NJ had hoped to begin sports betting on Memorial Day under the existing law. The legislature, however, has sought to block any start to sports betting without a new law in place by including language that would ban sports betting at any facility that begins taking bets before the law is passed.

Murphy backed that position.

“The good news is that we’re going to look back on this X years from now and say this was an historic step in the right direction and we started it,” Murphy said at a public event. “Whether it’s within seven or 10 days of each other, I’m not necessarily obsessed with. I would just say this, we’re working well with the legislative teams in both houses and we’re trying to get this done as fast as possible.”

Monmouth Park, which has already built a sports book facility and bar in partnership with William Hill has said it will wait for clearance from the state to begin taking bets.

The delay has brought criticism from former Governor Chris Christie, who led the state in its court battles over PASPA, but left office before the Supreme Court decision.

“We should allow Monmouth Park to start taking bets on Memorial Day,” Christie told NJ Advance Media. “You can’t just look at the tax revenue. You have to also look at the residual of more people coming to New Jersey.”

Christie also said the state’s eventual win before the court was gratifying.

“For a long time, I was told that this was a fool’s errand and that I was wasting money and that we weren’t going to win,” Christie said. “I think that hanging in there for as long as I did, spending the money that we did, is gratifying when the highest court in the land says you were right all along.”

The delay was also criticized by Monmouth Pak officials in the wake of reports that Delaware racinos may be able to offer sports betting before New Jersey racetracks.

“Is it going to bother me? If New Jersey’s not first, shame on us,’’ Dennis Drazin, president/CEO of Darby Development, Monmouth Park’s management group told the Asbury Park Press.

“I respect the legislative process. I respect our legislative leaders,’’ Drazin said. “I want to be part of moving the state forward in this important, historic area and I don’t want to be an obstacle. Could I do something different and take a different position? Sure. But, I’m not going to. In talking to the Senate President, they want to get it right. This is our chance to develop sports betting for the state. Whether, it’s first choice or not, I want to cooperate with the legislature and the governor and do whatever they ask me to do.”

Monmouth Park will have a ceremonial sports betting event for charity on May 28.

Former state Sen. Raymond Lesniak, one of the key lawmakers who led the legal fight for sports betting, told NJ.com that the state was missing a golden opportunity.

“It’s hard to fathom,” Lesniak said. “It would have been a great day for New Jersey, with national media attention. There would have been 30,000 fans at Monmouth Park that day. We’re missing a huge opportunity to promote New Jersey nationwide.”

Some controversy over the bills before the legislature has also emerged as New Jersey’s powerful State Senate president Stephen Sweeney came out against paying professional leagues an “integrity fee” as part of sports betting bills. New Jersey’s proposed state Assembly bill allows for such a fee, though the money would go to state regulators to monitor sports betting. The bill does contain a mechanism to funnel some of the money to the leagues.

The NBA and MLB among other sports leagues are calling for a national framework for sports betting and the imposition of an integrity fee to monitor sports betting trends.

Sweeney called on legislatures in all 50 states to reject the fee, calling it “extortion.”

Sweeney released a copy of a letter that he sent to governors and legislative leaders in each state detailing how New Jersey had spent years and about $10 million in legal fees fighting to overturn PASPA.

“Essentially, the leagues are asking to be paid to allow games to be played fairly,” Sweeney wrote. “Ironically, they are calling this extortion attempt an ‘integrity fee,’ even while fully aware that providing participants a stake in the volume of betting would amount to what could more accurately be called an ‘anti-integrity fee.’ And their demand begs the question of what they would now start doing to preserve the integrity of their games that they have not been doing for years.”

Sweeney also noted that Nevada or any other state has ever paid and integrity fee and he will not move to put the state at a disadvantage “by being the only state to pay the league extortion.”

Sweeney is the principal sponsor of the state Senate’s sports betting bill.

While both the state Senate and Assembly version of the bills call for an 8 percent tax on and a 12.5 percent tax on online bets, there are some differences. The Assembly’s proposal puts the revenue directly into the state budget, but the Senate bill would earmark the money schools and programs for seniors and disabled people. The bills are currently being rushed through the committee process.

Meanwhile, the Borgata casino in Atlantic City announced that it will join Monmouth Park by starting sports betting on the first day it is legal in the state.

Though the casino is planning to construct a new sports betting facility, casino officials said they will move quickly to begin taking bets at its horse racing simulcast book, combining it into The Race & Sports Book. The Borgata is the only Atlantic City casino currently running a race book.

“As soon as regulatory approvals are in place, we will begin taking sports wagers,” said Borgata President Marcus Glover in a press statement. “Borgata is uniquely prepared to begin operations as the only Atlantic City casino with an existing race book.”

Most of Atlantic City’s casinos have said they also plan to offer sports betting, including the two casinos reopening on June 28—the Hard Rock Atlantic City and the Ocean Resort Casino.

Frank Leone, CEO of Ocean Resort Casino, told the Press of Atlantic City that the property will offer sports betting online and in-house when it opens June 28, pending regulatory and license approval.

“We believe we’re well positioned having been working in anticipation of this outcome,” Leone said. “And we fully intend to offer a best-in-class sports betting experience in a high-energy, highly engaging environment.”

Leone said the casino is planning a 7,500-square-foot sports book “dead center” on the casino floor. He also told the Press that the casino has partnered with the “global sports book leader” but did not name the company.

Also, Monmouth Park officials say they will file an application in U.S. District Court seeking to recoup hundreds of millions of dollars in damages that resulted from opposition to sports betting from the major professional sports league and NCAA, the Asbury Park Press reported.

Finally, Rush Street Interactive and Kambi Group have entered into a multi-year partnership for sports betting. Rush Street will use Kambi’s sports betting tech in its proprietary online gambling platform. The deal covers both online and retail services.

Rush Street operates four casinos in Pennsylvania, which is also expected to legalize sports betting, and operates PlaySugarHouse online casino in New Jersey.

 

NEW YORK

The New York State Gaming Commission is crafting regulations to put sports betting in operation at the state’s four commercial casinos.

The news comes amid continuing legislative uncertainty over how to respond statewide to the U.S. Supreme Court’s recent overturning of a 26-year-old federal ban on the industry.

There is a Senate bill envisioning a comprehensive approach that also embraces racetracks, OTBs and Indian casinos, but it’s been floating in committee since its introduction in March, with no companion bill in the Assembly, while Governor Andrew Cuomo is on the record stating that the issues are too complicated for the Legislature to resolve before it adjourns for the year on June 20.

That leaves the four privately owned casinos that opened in the last 18 months—Tioga Downs Casino Resort in the Southern Tier, del Lago Resort & Casino in the Finger Lakes, Rivers Casino & Resort in Schenectady and Resorts World Catskills—where a clearer path to regulation exists by virtue of the 2013 New York Gaming Economic Development Act, the legislation that amended the state Constitution to authorize the casinos and provided for sports betting at their locations in the event of a change in federal law.

“Commission staff have long been working on regulations that would effectuate sports gambling under the existing statutory language,” said Ron Ochrym, acting executive director of the regulatory agency. “Staff anticipates being able to provide a draft for your review in the near term.”

The catch is, those regulations would apply only to the four casinos, a fact certain to generate an outcry in a crowded New York gaming market rife with competing and politically influential interests.

Which brings the focus back to the bill sponsored by Senator John Bonacic, who chairs the Racing, Gaming and Wagering Committee in the upper house. His bill cuts everybody in on the action at a business-friendly tax rate of 8.5 percent, and he’s recently amended it to allow players to register remotely. The changes also include creation of a grievance mechanism for bettors who believe they haven’t been properly paid and allows the Gaming Commission to enter into interstate agreements on sharing information for integrity monitoring purposes.

“We’ve talked to all the professional sports teams,” he said, “the casinos, everybody that has skin in the game. We took all their concerns and came up with what we think is a compromise bill that everybody can live with. So I’m not sure what the Assembly is going to do. The Assembly has always been late to the game when it comes to gaming issues. But in terms of time, we have enough time if there’s a will to do it.”

As of this writing, no bill had been introduced in the Assembly, but J. Gary Pretlow, Bonacic’s counterpart as chair of the Committee on Racing and Wagering in the lower house, said he was planning to expedite one similar in language to Bonacic’s.

“We anticipated this coming and put in a constitutional amendment to ensure that at least casinos have the ability to participate in sports betting,” he said, “but I wish we had gone further to include racinos. The legislation we need now is to fix that, and to allow for mobile betting and for some sort of relationship building between online casinos and other entities.”

Pretlow also is sponsoring a separate bill in the Assembly to regulate online poker and said he believes the regulation of sports betting will improve its chances of passing as well.

“There are more people interested in pursuing sports betting than pursuing online poker. For whatever reason, people consider online poker to be gambling but don’t consider sports betting to be gambling. I’m going to show them this is all gaming.”

 

OHIO

Penn National Gaming, which operates two of Ohio’s four casinos, is urging legislators to legalize sports betting so casinos can offer it.

Bob Tenenbaum of Penn National doesn’t expect huge returns, but as “an amenity that we can offer our customers. We think it will bring more visitors into our facilities. But sports betting, for the operators, is not a big money maker at all,” he said last week.

It would take what casino operators consider a reasonable tax rate for them to push for it.

Senator Bill Coley wants to revise the state’s gaming laws, to include fantasy sports, and to look at sports betting. But he won’t be an easy sell.

“If we decide to do it,” he says, “we must do it right, but if we decide that we don’t want to do it, I think it’s time that we empower the Casino Control Commission to investigate it and route it out of the state because there’s too much of it going on already and it’s time to clean it up.”

Senator Joe Schiavoni has introduced a bill. He told WKSU that besides already talking to his colleagues, “I also talked to some of the casino owners and operators about the nuts and bolts of this — whether or not it’s just going to be in-person betting, whether or not you’re going to be able to download an app.” He added, “There’s some different things that you can look at.”

He wants to use the extra revenue for education and local government.

“Our local communities don’t have the budgets to fill pothole-riddled streets, and schools are either forced to cut essential programs or put levies on the ballot,” he said. “This bill will help address some of these funding issues… It’s my goal that this will result in a strong, bipartisan proposal that will be ready for the legislature to take up in the fall.”

The Ohio Lottery Commission says it already has the authority to offer sportsbook. Lottery Director Dennis Berg told his nine-person board last week, “That’s our first blush look at it,” but added that Governor John Kasich, who opposes expanding gaming, has said he has no plans to authorize the games. His term runs out at the end of 2018.

“I can tell you that we will not have sports gambling in Ohio immediately, but we could have it in six months or a year, we don’t know,” said Berg. “We think this can be a lottery game, no different than keno, Lucky One, instant tickets. I don’t see it as a game of skill. It’s a game of chance.”

The issue has already become a political football since the state is in the midst of an election to pick a new governor. Democratic candidate Richard Cordray sees sports betting as a way to provide more funding for emergency services, teachers and to fight opioid addiction.

Last week he said, “You have activities like this that are going on right now, illegally, not regulated, no protection for individuals, no protection for the taxpayers and the citizens of the state. I think that we would be better off if we would license and regulate this activity and bring it out of the shadows and bring it into public view.”

Republican Mike DeWine, who has never supported expanded gaming, concedes that that bus has left the station. He says if there is extra money generated it should go to fund early childhood development and to cut pay-to-play sports fees. He insists on a state policy, however, before someone does an end run around the legislature with a ballot measure.

“They will write their own check to themselves, basically, and so I think we’re better off having the people’s representatives make these decisions rather than the special interests,” he said.

Someone is already poised to do so: developer Rick Lertzman, who has proposed a constitutional amendment that would allow sports betting in restaurants, bars, fraternal clubs and other venues. He’s OK with casinos offering it too but doesn’t want to limit it to them. He hopes to put the measure on the November 2019 ballot.

Lertzman declared, “By the time they act on this, every state around us, like we had in 2009, will have sports betting. West Virginia and Pennsylvania are on the verge of enacting legislation for it; New Jersey the same way. So, we can’t allow legislators to drag their feet.”

Opinions differ on whether the legislature has the power to allow sports betting, or if the state constitution would need to be amended. Some believe that the 2009 amendment that authorized the state’s four casinos includes language that allows sports betting.

If a similar tax rate of 33 percent was applied to sports betting, it would generate about $15 million for the state.

If sports betting is legalized it would create an interesting conundrum for Dan Gilbert, who owns two Jack Entertainment casinos in the Buckeye State but also owns the Cleveland Cavaliers basketball team.

Ohio went from a state with very little gaming to one of the largest. It added Keno in 2008 at local taverns. The voters authorized casino gaming in 2009. Slot machines were added to the seven racetracks in 2012.

 

PENNSYLVANIA

Pennsylvania was one of the four states with laws in place to immediately implement sports betting when the federal ban was removed by the U.S. Supreme Court on May 14. However, many are questioning whether sports betting will be viable with a tax rate that is by far the largest imposed on sports betting revenue yet.

Pennsylvania’s law taxes gross sports wagering revenue at 34 percent, with an additional 2 percent local-share assessment. By comparison, New Jersey’s sports betting tax is 8 percent, and Nevada’s is 6.75 percent. Pennsylvania’s application fee is $10 million—100 times higher than the $100,000 fee charged by West Virginia.

“It’s not even close,” Professor Chuck Berry, who teaches sports entertainment at Point Park University, told Pittsburgh’s KDKA-TV. “Most of the states are somewhere between 10 percent and 20 percent. Nevada is around 7 percent. And we’re going to be at 34 percent plus an extra 2 percent, 36 percent, and that doesn’t include the federal excise tax as well.”

Berry, though, predicted the high tax won’t keep casinos from applying to create sports books. “They’re going to complain about it, but at the end of the day, they have a choice,” said Pennsylvania state Senator Jay Costa, the Democratic Senate leader, on the TV station’s KD/PG Sunday Edition show. “They can decide not to participate in this type of gaming. They are going to be 9 or 10 or 11 other entities that would participate here.”

 

RHODE ISLAND

IGT, which is based in Providence, was the only company to respond to the Rhode Island Lottery’s RFP to operate sports betting in the state. IGT currently provides equipment and services to the Lottery.

It originally looked like there would be more competition. Eighteen firms took part in a pre-bid conference on the contract, including MGM Resorts International, Greek lottery company Intralot, and the daily fantasy sports site DraftKings, however only IGT submitted a bid by last week’s deadline.

Paul Grimaldi, spokesman for the Lottery, commented in an email, “We would have preferred more bidders.18 companies expressed an interest in the RFP. We’re not going to speculate as to why more bids weren’t submitted.”

Grimaldi said there was a possibility that the contract could be rebid if a flaw is discovered in the submission. The Lottery’s Technical Review Committee is going over the bid to see if it meets the Lottery’s requirements.

IGT did not comment. The company provided $53 million in services and equipment to the Lottery last year.

Governor Gina Raimondo already has the money sports betting will generate spent. In January’s budget she included $23.5 million, which is what the state would realize in taxes from $800 million in wagers at the state’s two casinos, Twin River and the casino being built in Tiverton.

But that might be only the beginning. Senate President Dominick Ruggerio supports expanding sports betting to satellite wagering venues and eventually online.

The RFP had asked bidders to show that they could adapt to “any future addictions to authorized sports betting” such as “innovative and cutting-edge options available as sports betting technology grows.”

IGT had anticipated the Supreme Court ruling and provided Lottery officials with updates on what other states were doing legislatively to prepare for legalization. IGT made available the adviser Ludovico Calvi, an expert on Italian sports betting.

Meanwhile, apparently sensing that the Rhode Island legislature was hostile towards paying Major League Baseball (MLB), the National Basketball Association (NBA) and the PGA Tour a 1 percent “integrity fee” representatives of the sports returned the state house last week with a proposal for a reduced percentage of 0.25 percent.

The leagues argue that they create the environment that sports betting would operate in and that they will incur an added expense to protect their sports from cheating and game fixing.

“We think it aligns interest and creates a true partnership model where we’re invested financially in the success of gaming in this state and can bring resources to bear to help grow gaming in this state,” David Miller, vice president and assistant general counsel of the PGA Tour, told lawmakers.

Dan Spillane, senior vice president and assistant general counsel for the NBA, added, “It’s meant to compensate for the risk that sports betting creates for sports leagues. Also, to fund the increased expenses that leagues are going to have to incur in order to protect the integrity of our sport.”

When the higher percentage was proposed several months ago sports betting operators had protested that this would amount to paying a 20 percent “off the top” expense because operators normally take 5 percent of the handle.

John Taylor, chairman of Twin River, is predicting that the Tiverton casino his company is building near the Rhode Island state line with Massachusetts will be open before the previously announced October 1 date—and it will be able to offer sports betting.

“I would think within the next week or so we’re going to have an announcement about a new date,” Taylor commented on the TV show Newsmakers. Both the Tiverton and Lincoln casinos Twin River owns are ready and able to accommodate sports betting should that be legalized in the state, he said. “Could we be ready with a social environment that could house this kind of equipment and this kind of product by October 1? I think we can.”

Taylor hopes sports betting will attract millennials to the two casinos. Twin River has been working on widening its appeal for years, he said. When it only offered slots, the demographic was women in their late 50s. When table games were added, men in their late 40s and 50s were added to the customer base.

Sports betting, he said, ought to widen that base further to include men in their 20s, 30s and 40s. “What we’re seeing now, and it may go to who is really the sport bettor today, is more social environments, so sports bar environment with couches and mini-environments where groups of people can get together and watch a game,” he said.

One question lawmakers are wrestling with is whether the state’s voters would need to amend Rhode Island’s constitution in order to authorize sports betting.

A representative from daily fantasy sports provider DraftKings sent the Senate Finance Committee a memo that asserts that the voters already authorized sports betting when they voted to allow “casino gaming.”

The memo was forwarded from Boies Schiller Flexner LLP. It said, “Rhode Island’s state-operated casinos can therefore offer in-state online sports gambling without a new referendum, allowing anyone in Rhode Island – even if they are not located on the casino’s property – to place bets with the casino, as long as the bet is accepted by the casino at the location approved in the voter referendum.”

Senate President Ruggerio has said he plans to ask the Rhode Island Supreme Court for an opinion on this issue in time for next year’s legislative session. That wouldn’t be in time to provide the funding that Governor Raimondo has already budget for next year.

 

WASHINGTON

The ilani casino and resort that opened in Washington last year is exploring adding sports betting, according to its manager, Mohegan Gaming & Entertainment, which operates a total of six casinos in various states.

It would only do so if the state jurisdictions legalized sports betting, said the gambling arm of the Mohegan tribe.

The $550 million casino opened in April 2017 on the Cowlitz Reservation near La Center.

The company issued a statement to the Columbian: “We look forward to working with the state governments for each of our properties to offer this form of entertainment in a legalized and regulated fashion. We have long felt that (we are) in a great position to offer this type of gaming at our properties.”

The Mohegans operate casinos in Pennsylvania, Louisiana, New Jersey, Connecticut and South Korea.

Cowlitz Tribal Chairman Bill Iyall, added his own comments: “We’re watching and waiting. We’ll work with other tribes, and we’ll have to chart out a path and see where it goes. Certainly we’ll be consulting with our management company as well.”

Washington state would have to legalize sports betting. Currently the only form of betting besides tribal casinos allowed is betting on horse racing. To alter that would require a two-thirds majority of the legislature placing a constitutional amendment on the ballot, according to the Seattle Times.

 

WEST VIRGINIA

During the 2018 legislative session, West Virginia passed a law allowing sports betting at the state’s four casinos and the Greenbrier, and on mobile phone or computer apps. State lawmakers and lottery officials estimate sports betting will bring in $5 million in the first year of implementation, $13.4 million by the third year and $28.7 million by the fifth.

State Lottery Director Alan Larrick said lottery officials have begun drafting rules and regulations, which then would be released for public comment within 30 days. “We’re going to try to beat that if we can. We’re excited, but we’ve got a lot of work to do,” Larrick said. He said the Lottery’s goal still is to have sports betting up and running in state casinos by the start of football season. “That’s certainly our goal, and we’re well toward that goal, but we’re not going to start until we know we can do it 100 percent correctly,” he said.

West Virginia Gaming and Racing Association President John Cavacini said casino owners have begun drawing up construction plans for where to physically locate sports books within their facilities. He noted any changes a state casino or racetrack must be approved by the state Lottery Commission.

 “What we’re hoping is, with the sports gaming, we’re going to have new people coming into the casinos. Those people, we feel very confident, are not only going to play sports gaming, but are going to use the other facilities of the casinos.”

Larrick added he’s optimistic people coming into West Virginia to place sports wagers using smartphone apps will patronize restaurants, clubs and other venues while in the state. Under the new law, bettors can register with casino sports books via smartphone or computer and place bets as long as they’re physically in the state.

Under the new legislation, West Virginia casinos will pay $100,000 for a 5-year sports gaming license and will be taxed at a rate of 10 percent on profits.

West Virginia University Athletic Director Shane Lyons said the school also is preparing for sports betting.

“My job is first and foremost is to protect the integrity of the institution of the athletic department and the other part is to protect the integrity of the institution as a whole. With legalized gambling coming up I will have to hire additional compliance staff for monitoring and looking at it as well as the educational aspect of it. There is going to be cost associated with that and we’re going to have to step our game up.”

Lyons added, “there is 100 percent” more potential for scandal as a result of sports betting.

State Senator Mike Romano said sports gambling could turn out to be a “scourge on citizens, that is going to drain their payroll checks out of their pockets, all to make people rich who are already rich.” Romano also criticized the amount of revenue the state will get from sports gaming, which he said would be 30 cents for every $10 bet on sports in West Virginia under the sports betting law. “West Virginia is giving up the ability to make hundreds of millions of dollars off sports betting in order to enrich the casinos of the state,” he said.

The Problem Gamblers Help Network of West Virginia also is gearing up for sports wagering. Communications Director Sheila Moran said the 1-800-GAMBLER helpline is planning a statewide training session on sports betting for their network therapists, and will offer treatment to anyone who asks for help for a sports betting addiction.

 

WISCONSIN

The Wisconsin state constitution prohibits gambling on sports and only allows lottery games and bingo. Assembly Speaker Robin Vos said changing the state constitution is “a huge hurdle” but he is “open minded to talk about it. I like the idea that 50 states get to make their own decision based on elected officials, who are closer to the people, than members of Congress. The decision has almost zero impact on Wisconsin as far as changing anything tomorrow.”

He added, “It’s a long process if it would ever happen in Wisconsin. That’s why I don’t think anything will change any time soon.” Changing the state constitution requires a bill to pass the Assembly and Senate in two consecutive sessions, followed by the approval of voters in a statewide referendum.

Governor Scott Walker said, “‘It’s in the constitution” that sports betting is banned. “It doesn’t matter what I think on that. It’s in the constitution. We’ve pointed that out before. That’s not going to change. It would take a change by the voters.” A spokesperson for Wisconsin’s Attorney General also said the Supreme Court decision “doesn’t mean much for Wisconsin other than federal law no longer favors Nevada over other states.” 

Gambling compacts with tribes like Forest County Potawatomi and Ho Chunk Nation would have to be amended to accommodate sports betting. Potawatomi Hotel and Casino Chief Executive Officer and General Manager Rodney Ferguson said, “‘I saw two emails come across from my staff but I haven’t read too deeply into them yet. We’ll be looking more closely into this as the week goes on.”

NFL, NCAA React to Sports Betting Decision

Leagues still pursuing a piece of the legal sports betting revenue pie

Leaders of the two sports leagues most opposed to sports betting issued statements last week setting out their positions on legal sports betting in the wake of the U.S. Supreme Court’s decision in Murphy v. NCAA, which held the Professional and Amateur Sports Protection Act (PASPA) and its ban on sports betting to be unconstitutional.

The commissioner of the National Football League and the president of the National Collegiate Athletic Association, two of the main plaintiffs in the case challenging the state of New Jersey’s sports betting law, both called for Congress to create a federal framework to oversee sports betting in the states.

NFL Commissioner Roger Goodell also implied the league should get a cut of sports betting revenue, through a call for recognition of NFL “content and intellectual property.”

Goodell, a week after the Supreme Court decision cleared the way for legal sports betting, said the decision had no effect on the league’s “unwavering commitment” to “protecting the integrity of our sport.” He said the best way to do that is through uniform federal standards.

“We have spent considerable time planning for the potential of broadly legalized sports gambling,” Goodell said in the statement, “and are prepared to address these changes in a thoughtful and comprehensive way, including substantial education and compliance trainings for our clubs, players, employees and partners.

“These efforts include supporting common-sense legislation that protects our players, coaches and fans and maintains public confidence in our games. We are asking Congress to enact uniform standards for states that choose to legalize sports betting that include, at a minimum, four core principles:

“1. There must be substantial consumer protections;

“2. Sports leagues can protect our content and intellectual property from those who attempt to steal or misuse it;

“3. Fans will have access to official, reliable league data; and

“4. Law enforcement will have the resources, monitoring and enforcement tools necessary to protect our fans and penalize bad actors here at home and abroad.”

Despite the reference to intellectual property, ESPN quoted league sources as saying the NFL is not interested in a direct cut of the action—only on data and video rights.

Lead Murphy plaintiff NCAA, like the NFL a longtime opponent to betting on its games, issued a statement supporting federal oversight of sports betting.

“To ensure integrity in sport, the NCAA supports a federal model addressing legalized gambling and has suspended its championship host policy related to sports wagering,” the statement said, referring to the league’s rule against holding collegiate championship games in host cities with casinos.

“Our highest priorities in any conversation about sports wagering are maintaining the integrity of competition and student-athlete well-being,” said NCAA President Mark Emmert in the statement. “Sports wagering can adversely impact student-athletes and undermine the games they play. We are committed to ensuring that laws and regulations promote a safe and fair environment for the nearly half a million students who play college athletics…

“While we recognize the critical role of state governments, strong federal standards are necessary to safeguard the integrity of college sports and the athletes who play these games at all levels.”

Retiring U.S. Senator Orrin Hatch—one of the original sponsors of PASPA—has already said he will introduce a bill to establish a federal regulatory framework for sports betting, but few give it a chance to pass this year.

“The odds of this bill passing before Hatch’s retirement is similar to the Miami Marlins winning the World Series this year,” opined Legal Sports Report’s Steve Ruddock in a column suggesting the leagues are shooting for a federal framework including an “intellectual property” or “integrity” fee because they have so far failed to convince any state lawmakers to include the fees in legislation.

“The rapid rise of the internet means that sports betting across state lines is now just a click away,” Hatch said immediately following the Supreme Court decision. “We cannot allow this practice to proliferate amid uneven enforcement and a patchwork race to the regulatory bottom. At stake here is the very integrity of sports.”

Experts say congressional action on sports betting is likely to fail because by the time anything could be enacted, sports betting could already be up and running in as many as six states, meaning Congress would be undoing generally popular state legislation and hurting businesses in those states—in an election year. And if it waits for next year’s session, it could be addressing laws in a dozen or more states.

Add to this the historic reluctance of Congress to supersede the states in gambling issues, and the fact that the Supreme Court decision explicitly leaves the states to decide on sports betting, and chances of passing a federal regulatory bill become even more slim.

The final obstacle is the inability of partisan congressmen to agree on anything.

“If you believe Congress is going to suddenly get its act together and have a kumbaya moment over sports betting I have a bridge in Brooklyn to sell you,” wrote Ruddock in Legal Sports Report.

American Gaming Association President Geoff Freeman said on a conference call directly after the Supreme Court decision that he doesn’t expect any federal action on a regulatory framework for sports betting.

“I’ve heard some interesting arguments regarding the benefits of some kind of federal legislation, and some of them can even be partly compelling at times,” Freeman said. “The problem for those making those arguments is that ship has sailed. America long ago decided that gaming would be regulated on a state-by-state basis. I’m not sure how you’re going to bring the federal government in here to tell the states what to do, given the states hold such great authority over betting.”

Last week, Freeman doubled down on this opinion in a letter to Congress outlining the industry’s priorities concerning legal sports betting:

“Below are the priorities the gaming industry will pursue:

 

Empower State Regulation: More than 40 states and 260 jurisdictions have proven to be effective gaming regulators. AGA will be a resource to state policymakers and regulators as they consider sports betting legalization. AGA will also combat any attempts by the federal government to neuter state regulatory power.

 

Place Consumers First: AGA encourages all stakeholders to understand the intricacies of the illegal marketplace and why consumers turn to it. AGA will promote strong consumer protections – which the illegal market fails to offer – and consumer-centric conveniences such as intrastate mobile wagering.

 

Strengthen Game Integrity: Rigorous sports betting regulation strengthens game integrity, a primary aim shared by the gaming industry and sporting bodies. New technologies make it possible to track legal wagering and identify suspicious activities. The gaming industry supports establishing a national data repository to share any suspicious betting information with law enforcement, gaming regulators and sporting bodies.

 

Promote Responsible Gaming and Responsible Advertising: The gaming industry encourages effective responsible gaming programs in all jurisdictions that enact regulated sports betting. To this end, the gaming industry will voluntarily pursue the creation of a self-regulatory model to guide sports betting advertising.

 

Encourage Contracts over Statutes: Sports betting can benefit sporting bodies and gaming companies alike. The gaming industry supports strong contracts between these parties to address issues such as data and the value of other activities. The gaming industry will vigorously oppose efforts to use federal or state legislation to set basic business terms.”

The AGA’s stance on state control of sports betting regulation was supported last week by the U.S. State Gaming Regulators Forum, which is part of the International Center for Gaming Regulation at the University of Nevada, Las Vegas.

“Sports betting in Nevada has already been regulated with integrity and success, and gaming jurisdictions across the United States, including tribal jurisdictions, have demonstrated their ability to oversee gaming of all sorts while adhering to the highest standards,” the statement said.

U.S. Rep. Dina Titus (D-Nevada), whose district includes Las Vegas Strip, agreed with Freeman in an interview with the Las Vegas Review-Journal. “I don’t think you’ll see it happen here in Congress,” she said. “For one thing, this is not a priority with them. They are not even very knowledgeable about how gaming works and certainly not about PASPA. It’s going to be very hard to roll all of that back and push it into one federal bill.”

Titus also chided the leagues for continuing to pursue “integrity fees.” “You can call it an integrity fee, but I call it a piece of the action,” she said.

The statement from the UNLV regulators’ forum also criticized the idea of a fee to the leagues. “Additional fees … increase the costs of legal sports betting, siphon much-needed tax revenues away from state coffers, and increase state regulatory burdens,” said the statement, which was signed by Nevada Gaming Control Board Chairwoman Becky Harris, Massachusetts Gaming Commission Chairman Stephen P. Crosby, Louisiana Gaming Control Board Chairman Ronnie Jones and Michigan Gaming Control Board Executive Director Rick Kalm.

“The regulators couldn’t have said it better,” said Freeman in a separate statement last week. “They have our full support, and we look forward to providing any assistance they may need.”

The leagues, though, continue to lobby state lawmakers to include fees to the leagues in sports betting bills. The National Basketball Association and Major League Baseball are now leading the charge in lobbying states. The NBA and MLB are still seeking a tax on all wagers to go to the leagues as an integrity or royalty fee (depending on the state), although it more recently scaled back the proposed portion from 1 percent of wagers to 0.25 percent of wagers.

Major League Baseball is urging state lawmakers to proceed carefully. “This is really a key moment now for baseball and the other sports leagues,” Bryan Seeley, the league’s senior vice president of investigations, compliance and security, said in an interview with ESPN. “It’s pretty rare that you have a huge industry that gets unlocked almost all at one time. The conversations about this and the decisions that state legislators and regulators are going to make in the next year and the next few years are going to have significant effects on our game. It’s really important that we get this right.”

The Professional Golfers’ Association has joined the NBA and MLB in seeking some sort of fee in exchange for its product, but the PGA outlook is a bit different. Last week, a senior PGA official told Legal Sports Report it envisions shot-by-shot betting on professional golf tournaments, which invariably would require the league to provide the data stream.

“The only way to really have active in-play betting, particularly with our sport, is to use official league data,” said Andy Levinson, senior vice president of tournament administration for the PGA.

The leagues are still meeting resistance to any fee in some states, notably New Jersey, where lawmakers say they will refuse to impose any such fee, and Nevada, which has never paid such a fee.

The statement from the UNLV regulators’ forum last week criticized the idea of a fee to the leagues.

Meanwhile, decrying the Supreme Court ruling striking down PASPA last week was none other than Bill Bradley, the former U.S. senator from New Jersey—and former NBA star—who helped to author the law, sometimes known as the “Bradley Act.”

Bradley told the Bergen Record and NorthJersey.com in an interview last week that betting will ruin sports, even mistakenly declaring that the Supreme Court ruling would allow betting by high school students. “This has no restrictions whatsoever,” he said, as if the ruling set regulations, when it actually allows the states to regulate it as with other gambling.

“I regret the ruling,” Bradley said in the interview. “I think the court ignored the impact that the ruling will have on sports in America and values you learn form sports. I mean, they’ve turned every basketball player, football player and baseball player into a roulette chip. And that doesn’t mean pros only. Because now you can bet on college; you could even bet on high school. You could even bet on AAU, 14-year-olds playing in the finals of the AAU. And the only winner here are casinos, in my opinion….

“I think the game will be corrupted. Do you really want to go to your son’s high school basketball or football game and see people in the crowd who are betting, who are not rooting for your child to win or lose, but are betting on a spread? It’ll be pervasive. It is destructive. But again, it’s the Supreme Court making a decision on very narrow grounds.”

 

Poll: Half of Americans Favor Sports Betting

A new poll has found that 50 percent of Americans favor sports betting. The poll, conducted by Fairleigh Dickinson University shortly before the U.S. Supreme Court decision that struck down the federal ban on sports betting, found that 50 percent of Americans favor it, with 37 percent opposed.

“Sports betting is about two things: It is about legalizing what millions of Americans already do every day (and) it is about intensifying the engagement of a nation of sports fans,” poll director Krista Jenkins, a professor of political science at the New Jersey university, told the Associated Press. “It will now be a race to see who can benefit the most and the earliest from this changed landscape.”

Maryland Live! to Open Hotel June 6

The Cordish Companies announced that it will open the 310-room luxury hotel at its Maryland Live! Casino outside of Baltimore on June 6.

The $200 million hotel is seen as necessary to compete with Maryland market-leader MGM at National Harbor, which has siphoned business from Live!, the former market leader, since it opened with a hotel in December 2016.

The hotel comprises 350,000 square feet of space, and includes a spa and gym, several dining options and meeting space. The second phase, to be completed next year, will expand the meeting and banquet space to 40,000 square feet and enlarge the capacity of the event center to 4,000 seats. Cordish has said it plans to use the space for special events such as local school graduations as well as conventions and concerts.

Florida Greyhound Group Wants Ballot Issue Removed

The Florida Constitution Revision Commission will place on the November ballot a proposed constitutional amendment that would decouple greyhound racing from other gambling activities by 2020. But the Florida Greyhound Association recently filed a complaint in Leon County Circuit Court asking that the issue be removed from the ballot. The group claims the amendment contains numerous flaws, including that the ballot title and summary don’t fully inform voters about the amendment’s impact if it is approved.

Plaintiffs stated the proposal does not advise voters that dog racetracks still would be allowed to broadcast live greyhound races from other states. Also, the complaint says the measure only would ban “commercial” dog racing, meaning that kennel clubs still would be allowed to continue dog competitions.

In addition, the lawsuit alleges the proposal’s text, which voters won’t see on the ballot, could have implications far beyond the greyhound-racing industry. For example, the proposed amendment states, “The humane treatment of animals is a fundamental value of the people of the state of Florida.” Plaintiffs’ attorneys Jeff Kottkamp, a former lieutenant governor, and Paul Hawkes, a former appellate judge, noted that language “might ultimately apply to animals other than dogs. Would this statement, once adopted by voters who were not informed that it was contained in the amendment, be utilized in the future to limit horseracing? To limit the use of hunting dogs? A voter who favors ending dog racing might very well decline to pass an amendment with such a broadly stated provision for fear that once adopted as status quo in connection to dog racing, such a statement might be expanded to limit or prohibit other activities or livelihoods that involve other animals.”

The Florida Supreme Court reviews the wording of constitutional amendments, but, Kottkamp and Hawkes said, its review is limited, so only proposals that are “clearly and conclusively defective” don’t stand up to scrutiny.

Constitution Revision Commission Style and Drafting Committee Chairman Brecht Heuchan said three legal experts helped draft the amendments. “They approved every single word that was in every single ballot summary and ballot title. That doesn’t mean that some other sets of people, including some other courts, may disagree,” Heuchan said. He added the lawsuit was “bound to happen. When you don’t like the policy, you go to court,” he said.

Humane Society of the United States Florida Director Kate MacFall said, “This lawsuit is dead on arrival. It is a desperate attempt to prevent voters from having a voice on whether greyhound confinement and deaths should continue. It was filed because greyhound breeders know that when Amendment 13 appears on the ballot, Floridians will vote yes for the dogs.”

Florida Attorney General Pam Bondi has called greyhound racing and the treatment of the dogs a “black eye on our state.” She said, “We all know these dogs end up with broken legs, serious injuries and they’re shipped from track to track until they’re dead or can no longer race at all.”

However, greyhound association lobbyist Jack Cory said the amendment “has nothing to do with animal-rights issues.” He noted, “We are the animal-rights people. The proponents are political activists using animals for fundraising purposes,” referring to the Humane Society and Massachusetts-based advocacy group GREY2K . “All they do is run sad puppy commercials on TV to gain donations,” Cory said.

Ending greyhound racing could eliminate thousands of jobs and destroy a $200 million-a-year industry, Cory stated. He said more than $80 million was bet last year on live greyhound races in Florida, despite reports that wagering on greyhound racing declining. “Just because we’ve got a couple of very aggressive political action groups from out of state is no reason for us to change our business plan in the state of Florida,” Cory commented.

Big Easy, Formerly Mardi Gras, Fully Reopened

Hurricane Irma walloped the former Mardi Gras Casino, now called the Big Easy, in Hallandale Beach, Florida last September 10. Manager Dan Adkins said, “This place was destroyed.” But the poker room reopened in December and slots were up and running again on May 14. Adkins said 512 slots are in operation now and another 300 are coming soon. Also the smokers’ patio has reopened with 18 slots, and an expansion including 90 machines and a bar is planned.

“Players keep calling, asking us when they can see what we’ve done. They are going to be very happy with the results,” Adkins said. He noted simulcast wagering relocated to its pre-hurricane spot and the first floor has a new ceiling and carpeting.

Adkins said, “The employees saved this building. We had employees working round-the-clock with pumps, brooms and shovels. We had a waterfall in here.” A small group of employees remained while the property was closed but many had to be let go. Now, Adkins said, as business picks up, jobs are being refilled.

Meanwhile, the property, owned by Hartman and Tyner, Inc., was purchased by Jeffrey Soffer, owner of the Fontainebleau Resort and the Aventura Mall. Soffer said he will redevelop the Big Easy or possibly get permission from the Florida Legislature to move the license and operate a casino elsewhere in South Florida.

Adkins, who first worked at the property in 1981, stayed on to manage the casino. He said he’s hopeful voters in the November election will pass an amendment banning dog racing in the state. “If so, we could use that space for redevelopment,” Adkins said.

MGM Springfield’s First Performer Will be Stevie Wonder

Pop star legend Stevie Wonder will open the MGM Springfield on September 1, about a week after its August 24 grand opening. The 2 million square foot center  that is spread over three city blocks will include a hotel with 250 rooms, retail, dining, and a casino with 2,550 slots and 120 table games

Talia Spera, executive director of  Arena Operations for the $960 million MGM Springfield said the concert will “usher in a new era of exciting world-class entertainment for the city.”  Wonder will be performing at the MassMutual Center, which the casino is managing.

Decades ago, when it was known as the Springfield Civic Center it played host to Elvis Presley, Bruce Springsteen, Prince, Bob Hope, Robin Williams and Eddie Murphy.

Florida Amendment Reaps Disney, Seminole Millions

According to recently filed campaign records, in April, Disney Worldwide Services and the Seminole Tribe of Florida each donated $5 million to Voters in Charge, the group behind Amendment 3 which will appear on the November ballot and would give Florida voters exclusive rights to approve future casinos. The amendment would “ensure that Florida voters shall have the exclusive right to decide whether to authorize casino gambling,” according to the ballot summary.

John Sowinski, chairman of the group, said the effort “continues to gain momentum in critical areas, including fundraising, grassroots and social media. We have the support of over 1.1 million Florida voters who signed petitions, strong voter support, a growing regiment of grassroots leaders across Florida, committed donors and an experienced team in place. Where we are today is just the tip of the iceberg in terms what our campaign will look like as Election Day approaches.”

Sowinski said the Disney and Seminole funds will be used “to buy advertising for the final advocacy phase of the campaign.” If 60 percent of voters approve, the amendment would become law. In a statement, Voters in Charge said, “A poll released in February showed 76 percent of likely voters supported voter approval to authorize casino gambling in the state when initially asked about the amendment. That number increased to 84 percent when respondents were presented with balanced arguments for and against the amendment.”

Since fundraising began in October 2015, Voters in Charge has raised more than $16 million, including the $10 million contributed in April, officials said. They added the group still has $10.1 million cash on hand.

The statement also said Voters in Charge is stepping up its social media presence to add to its 23,000-plus likes on Facebook, and has teams of volunteers and paid professionals actively involved in grassroots efforts throughout the state.

Twin River Sells Newport Grand Property

Twin River Management Group has sold the 22.5-acre site of the Newport Grand casino in Newport, Rhode Island for $10.2 million to the Carpionato Group.

The property was originally a jai alai arena and then became a slots casino in 2008. Carpionato Group intends to redevelop it into a mixed-use project once the casino closes and relocates to Tiverton, where Twin River is building a casino close to the state’s border with Massachusetts.

A spokesman for the purchaser said, “Newport Grand is well positioned for redevelopment into a vibrant mixed-use destination. The property represents a truly generational opportunity in a high barrier-to-entry market.”

Horseshoe Casino Lures Topgolf to Baltimore

The Horseshoe Casino in Baltimore has lured the high-tech driving range company Topgolf into joining it in developing vacant waterfront property into a family-friendly entertainment complex with an expected opening of 2020.

Caesars Entertainment, owner of the Horseshoe and city officials made the announcement last week in the company of the Baltimore City Council President Bernard C. “Jack” Young and other VIPs.

The entertainment complex will take up six acres that lies between the Horseshoe Casino Baltimore, which controls the property, and the M&T Bank Stadium.

The project is part of what the city calls transforming the “southern gateway” to the city.

Eric Chamberlin, regional president of Caesars Entertainment Corp. and general manager of the casino, told the crowd,  “We had a vision to be more than a casino. We wanted to be a catalyst for job creation and economic development. …This is the city’s next entertainment district.”

Topgolf is the first new tenant for the corridor. Caesars is working with the city to entice other entertainment companies into a corridor that still has a gritty, industrial vibe crisscrossed by railroad tracks and bordered by highway overpasses. But it also sits adjacent to a football stadium and Oriole Park.

The area has also attracted the new version of the old Baltimore concert hall and club Hammerjacks, which will open next year. Offices and apartments are also in the works.

Topgolf has 41 locations in the U.S. with others on the way. Many of its customers are in the 18 to 34 demographic, which also happens to be an age group that the gaming industry is working hard to attract. The company will also hire 500 fulltime employees and promises to inject $264 million into the local economy over the next ten years.

Atlantic County Releases Casino Tax Settlement Terms

Atlantic County will receive 13.5 percent of Atlantic City’s casino payments in lieu of taxes for six years under a lawsuit settlement with the state.

Officials said the county will receive about $37.2 million more from the settlement rather than accepting a state-set 10.4 percent, according to a letter sent to mayors of all county municipalities.

According to an analysis by the Press of Atlantic City, the county would stay at 10.4 percent of $120 million for the PILOT’s first year of 2017, then go up to 12 percent of this year’s $130 million payment, and back to 12 percent in the final two years of 2025 to 2026. The county will receive 13.5 percent of the funds from 2019 to 2024.

The county also agreed to increase shared-services savings to Atlantic City to $2.1 million from about $1.1 million today, officials said.

The county had filed a lawsuit challenging the constitutionality of the PILOT law. The county sued after former Governor Chris Christie promised the county would receive 13.5 percent of the payments, then announced the amount would be 10.4 percent.

Boyd Gaming Buys Illinois Route Operator

Las Vegas-based Boyd Gaming Corporation recently announced it has an agreement to purchase video gambling machine operator Lattner Entertainment Group in Ottawa, Illinois for $100 million. The deal, expected to close by the end of June, gives Boyd Gaming nearly 1,000 machines in 220 locations across Illinois. Boyd Gaming owns the Par-A-Dice Hotel and Casino in East Peoria, Illinois.

Boyd Gaming President and Chief Executive Officer Keith Smith said, “The acquisition of Lattner is a strategic opportunity to further diversify and expand our business. Lattner will provide us a valuable new avenue to access gaming customers, and a platform to participate in the expansion of distributed gaming. We are excited to welcome the Lattner team to Boyd Gaming, and look forward to establishing ourselves as one of the leading distributed gaming operators in the country.”

Boyd Gaming spokesman David Strow noted, “It’s worth emphasizing the whole Lattner team is coming on board with us. They have built a lot of great relationships with local tavern owners over the years. We have not had a presence in video gaming until now. By buying Lattner and joining forces it allows us to take part in that growth. We see it as a very complimentary business.”

According to the Illinois Gaming Board, adjusted gross receipts at Par-A-Dice dropped 32 percent since video gambling machines came online in late 2012, falling from $116 million in 2012—before the games were introduced—to $107 million in 2013—the first full year of video gambling terminals in bars and restaurants—to less than $79 million in 2017.

Statewide, gaming board figures indicate casino adjusted gross receipts peaked in 2007 at nearly $2 billion. A 10th casino license was added in 2011. In 2013, adjusted gross receipts from the state’s 10 casinos dropped to about $1.55 billion. At the time, 3,271 establishments offered 13,374 video gambling machines, generating a total net income of $300 million. In 2017, according to the latest figures, 6,359 establishments offer 28,271 video gaming machines, more than quadrupling annual net income to $1.3 billion. Meanwhile, casino adjusted gross receipts decreased to $1.41 billion for the year.

Boyd Gaming owns or operates 24 gaming entertainment properties in seven states, offering more than 30,000 gaming machines, 630 table games, 9,400 hotel rooms and 280 food and beverage outlets.

Pennsylvania Opens Online Gambling Licensing

Pennsylvania is now accepting applications for online gaming licenses from the state’s 12 casinos.

Pennsylvania Gaming Control Board Director of Communications Doug Harbach told Online Poker Report that the application season is now open for $10 million licenses that would allow existing casinos to run websites with poker, table games, and slots. The fee in New Jersey in 2013 was only $400,000.

 “It’s a little different than just an application, they have to send in a legal petition that we’re to receive,” Harbach told the website. “We were just talking about that today, as a matter of fact, because there’s a litany of things from the act that they have to supply in that petition.”

Pennsylvania’s 12 casinos have until July 15 to turn in their applications. After that, they can apply for $4 million a-la-carte licenses for online poker, online table games, or online slots. Since the tax rate for online slots is the same as in land-based casinos—54 percent—it’s likely that few casinos will apply for that license. Online table game and poker taxes are also the same as the land-based casinos, but are a more reasonable 16 percent.

According to the October 2017 legislation that allowed for online gaming in the state, the petition must include a list of games the licensee plans to offer and an overview of how their license provide “economic benefits” to the Commonwealth.

A launch date for online gaming has not been set.

Virginia Eyes Tribal Casino, Historical Racing

Virginia is one of 10 states without casino gambling. Its neighbors Maryland, West Virginia and North Carolina legalized casinos long ago and have been reaping economic benefits. But Virginia’s status could change, as the Pamunkey Indian Tribe, which was federally recognized in 2016, announced it purchased 600 acres in New Kent County where it could build a $700 million casino resort.

Just a few days later, Revolutionary Racing announced it would buy the shuttered Colonia Downs horse racetrack for $20 million, since the state legislature passed and Governor Ralph Northam signed a bill legalizing historic racing machines. A study commissioned by Revolutionary Racing indicated a revitalized Colonial Downs could generate $41.6 million annually in state and local tax revenue. At its height it generated $750,000 in annual revenue. Racing is set to start there next spring.

Republican state Delegate Michael J. Webert sponsored the historical racing machines measure, which passed the House and Senate with bipartisan support. He said he felt this year was the right time to push for it, and that giving Colonial Downs new life would have “a much broader impact than most people believe.” Webert noted, “The makeup of the House is different.” Young Democrats, who could be more open to gambling measures, gained several seats in the House of Delegates last fall.

Webert said the Pamunkey casino could be an excellent neighbor for Colonial Downs. “Now that Maryland has opened their casino, we have gambling in pretty much all the states around Virginia. There are folks who believe the morality side of gambling is bad, but, well, if they could spend that money here and the commonwealth could harness some of that revenue and put it to good use, why not?”

Republican state Delegate Chris Peace, who represents New Kent, added, “I think the mores, the social concerns over that have weakened a bit. New Kent is a very hospitable community and wants progress and would be a good partner.”

Officials at the MGM Grand casino, located across the Potomac River in Maryland, estimate about 40 percent of visitors come from Virginia So far this year, Maryland’s six casinos took in more than $414 million, with nearly $150 million going to state and local governments. In March alone, those casinos generated more than $44 million for education.

Regarding casino gambling, Northam said, “I think there is the potential for it. Obviously, we’re going to take it one step at the time. If that’s something Virginians want to participate in, why not look at doing it here in Virginia, rather than those resources going to other states?”

Pamunkey Chief Robert Gray said his tribe, with fewer than 400 members, “would love to not be reliant on federal programs, to have our own economic drivers funding the programs that we want to provide for our tribal members, like housing, medical, job placement, education. It’d be great if we could just pay for that ourselves.”

The tribe said the casino resort would include a 1,200-room hotel, a spa and multiple restaurants and would create 4,000 jobs. Other sites may still be considered. The venue is still years away, since the land would have to be placed in federal trust, and a state compact would be required to offer Class III gaming. Also, competitors are likely to challenge the project. The backers of the MGM Grand lobbied the federal government against recognizing the Pamunkey during the tribe’s application process.

Paddy Power Betfair Acquires FanDuel

Paddy Power Betfair has confirmed the rumors that it was working to acquire U.S. daily fantasy sports giant FanDuel by announcing an agreement to combine its U.S. operations with the DFS company.

The move will strengthen Paddy Power’s U.S. presence as it plans to enter the newly formed sports betting market in the country after the U.S. Supreme Court overruled a federal ban on sports betting. The company said it is aligning itself with “a strong brand, large existing customer base and talented team.”

Paddy Power Betfair said the move creates the No. 1 U.S. online operator with more than 7 million registered customers across 45 states.

“We are excited to add FanDuel to the group’s portfolio of leading sports brands,” said Paddy Power Betfair CEO Peter Jackson in a press statement. “This combination creates the industry’s largest online business in the U.S., with a large sports-focused customer base and an extensive nationwide footprint. The Group has leading sports betting operating capabilities globally and strong operations on the ground in the U.S. Together with our substantial financial firepower, we believe we are now exceptionally well placed to target the prospective U.S. sport betting opportunity.”

FanDuel has been preparing its own sports betting platform in anticipation of the Supreme Court ruling.

“FanDuel and Betfair US share an enthusiasm for innovation and, as a result of today’s announcement, are prepared to lead the charge into the U.S. sports betting market,” said FanDuel CEO Matt King. “The combination of our brands and team, along with a shared culture and vision for the future, will allow us to create the leading gaming destination for sports fans everywhere.”

FanDuel is thought to control about 40 percent of the U.S. DFS market—behind rival DraftKings—and claims 7 million registered customers—though only 1.3 million were listed as active customers—and across 40 states producing $124 million in revenue in 2017.

According to Paddy Power’s announcement, the agreement calls for its contribution of existing U.S. assets of about $612 million along with $158 million of cash, which will be used to pay down existing FanDuel debt—estimated at about $76 million—and fund working capital of the combined business.

Paddy Power’s U.S. assets include an online casino operation in New Jersey, a horse racing betting exchange platform, the third-place DFS site “Draft” and TVG, the horse-racing television network and major Advance Deposit Wagering platform.

When the deal is completed, Paddy Power will control 61 percent of the combined business, with existing FanDuel investors owning 39 percent, the announcement said. The deal allows FanDuel investors to roll their investment into the combined business with an agreed mechanism that could give Paddy Power ownership of 80 percent of the business within three years and 100 percent after five years.

Paddy Power will have operational control of the business, which will become a fully consolidated subsidiary, and will have the right to appoint the CEO and a majority of the Board of Directors. Existing FanDuel investors will continue to have Board representation. The deal is expected to close by September.

In a related story, Jackson recently said the company is also “very keen” on making further acquisitions in Australia, where it already leads the online betting market through its Sportsbet subsidiary.

Speaking at the company’s annual general meeting and prior to the FanDuel announcement, Jackson said consolidation in Australia is likely as various Australian states are considering point of consumption taxes on online gambling.

The Australian state of Victoria recently adopted an 8 percent levy on online bets. Several other state are considering taxing online bets at about 15 percent. Those taxes could make it difficult for many smaller companies to compete, Jackson said.

“We’d be very keen to look at opportunities at sensible prices and without disrupting our existing business. We are interested in bolt-on acquisitions in the regulated markets in which we operate,” he said.

WSOP Celebrates Player Sharing With Major Online Tournament

WSOP.com in Nevada has begun player sharing with New Jersey players and is celebrating with a tournament event featuring more than $1 million in guaranteed prize pools.

Dubbed the Coast to Coast Classic tournament series—despite Nevada being a landlocked state—began May 11 and runs to May 20. It offers 32 tournaments with buy-ins ranging from $11 to $1,000. Prize pool guarantees run from $10,000 to the Main Event’s $200,000.

Players in Nevada and New Jersey can play against each other under the player sharing agreement, which was signed by New Jersey late last year. Players from Delaware can also compete in tournaments with New Jersey and Nevada players under the 888 Poker brand. Nevada and Delaware began player sharing in 2015.

As an added bonus, players at WSOP NJ and WSOP Nevada who plays in three Coast to Coast Classic events receives a freeroll ticket into a 20-seat guarantee satellite for the a $365 Online WSOP gold bracelet event. The World Series of Poker, which begins May 29 in Las Vegas, is offering four online bracelet events. Players in New Jersey can participate in the events.

Connecticut House Approves Commercial Casino Bill

Under pressure from Connecticut’s Bridgeport delegation the House approved a bill that could lead to a $500 million casino. The vote was 77-73, reflected regional, rather than partisan rivalries.

The bill faced an uncertain fate in the Senate—where most lawmakers felt there wasn’t enough time to pass it before the legislative session ended on May 9. Supporters conceded as much as the deadline for adjournment approached.

In the House the lawmakers from Bridgeport and New Haven supported the House Bill 5305, the Competitive Process bill while those from the southeastern part of the state, where the Mohegan Sun and Foxwoods Resort Casino are located, voted no.

“Our delegation’s backs are against the wall, and we need to do something about it,” said Rep. Christopher Rosario, who represents part of Bridgeport. “The last time I checked the city of Bridgeport was in the state of Connecticut. … And we are facing death by a thousand cuts.”

The state’s largest city has been harmed by the decline of social services, he says. This has prompted him and other representatives of the city to fight for a process that might land a casino in the city.

The operators of Foxwoods Resort Casino, and the Mohegan Sun, are opposed. Last year the tribes persuaded the legislature to authorize them to build a third, commercial, casino in East Windsor. Operating that casino is contingent upon getting federal approval of the amendment to the state tribal gaming compact that the tribes currently operate under.

The Bridgeport alternative has arisen because MGM Resorts International, which vehemently opposes the tribe’s third casino, last year proposed opening up the state commercial casinos and competitive bidding and started off by proposed a $650 million casino in Bridgeport.

MGM is also apparently at least partially responsible for the fact that the Department of the Interior has so far declined to give the approval for the amendment to the compacts that the tribes seek.

Last week 13 lawmakers, mostly from the part of the state where the casinos are located, wrote a letter to the General Assembly saying that a casino study such as is sought by the Bridgeport representatives “is meant to derail the East Windsor project.”

“Thousands of jobs are at risk,” said one of the signatories. “and hundreds of millions in revenue.” The state expects to collect $274 million in taxes from slots this year, although that number is expected to plummet once the MGM Springfield opens 14 miles from East Windsor.

Senator Cathy Osten, who chairs the Appropriations Committee, said she would fight a casino study in the Senate. “It is a fairness issue for two of our largest employers,” she said.

HB 5305 is a two-part bill that would direct the state’s consumer protection agency to invite casino bids with a minimum investment of $500 million and minimum jobs generation of 2,000. Responses would be due by January 1, 2019.

A casino developer would need to pay a $50 million licensing fee and $5 million application fee and agree to pay 25 percent of profits and a minimum of $8 million each year to the host city.

The bill, says supporters, would only invite bids, and would not authorize a casino, so it would not abrogate the tribal compacts.

Rep. J.P. Sredzinski commented, “We have a lot of members … that really appreciate the free market and want to see what is out there and what Connecticut could get.”

“We need the process to be played out. We need to gather the data and then we will have the information to make a decision,” added Rep. Juan Candelaria, who represents New Haven.

MGM spokesman Uri Clinton issued a statement supporting the bill. “We would like to make significant investments in the community and help spur economic growth in the region and the state. We remain ready and willing to participate in an open, transparent, competitive process, consistent with industry best practices, that offers a chance to compete to do business in Connecticut. … It is the best way for the state to maximize jobs, economic growth and revenue.”

MGM has been strongly lobbying the bill. It promises to build a “destination resort” in Bridgeport with 2,000 jobs, 5,779 indirect jobs and $675 million in investment.

After the House vote Clinton added, “We’re fighting. We’ve got some initial counts that are favorable. We’ve got a long way to go. Just like we had a long way to go in the House. But we’re fighting and the enthusiasm for the process is there.”

Opponents warn that the bill imperils the 25 percent revenue sharing the tribes pay each year to the state. They also accuse MGM of not wanting to build a casino much as to scuttle the one that the tribes want to build in East Windsor.

Rep. Chris Davis, R-Ellington, said MGM is trying to “delay, delay, delay” the tribal casino.

Republican Rep. Doug Dubitsky, added, “Nobody is planning to build a casino in Bridgeport. Nobody. The numbers simply don’t work — not for the casino, not for MGM, not for the state,” he said. “This bill would simply delay the tribe’s East Windsor casino and the state will wind up losing millions of dollars.”

Rep. Joe DelaCruz, using a marriage metaphor, warned, “We lose the kids, the house, the car and everything. There is no middle ground here. If we break the compact, we lose $270 million the next day. That’s a fact.”

“I don’t think there’s one person in this chamber that wants to do something that would put that money at risk,” said Rep. Joe Verrrengia, who supported the bill. “But as leaders, we need to look past today. We need to have the ability to say, ‘OK, this is what our gaming industry looks like today, but what’s it going to look like in the future?’”

Bridgeport Mayor Joe Ganim hailed the House vote: “This vote sends a strong signal to the business community that we support fair play in the marketplace, we support open competition and we open for business.” He added, “If we do invest in real growth on the Bridgeport waterfront, we can attract tourists and investors from the New York City region, the largest metropolitan area in the country, and beyond.”

Several area chambers of commerce have thrown their support behind HB 5305.

Frank Borres president of the American View Productions and chairman of the Bridgeport Chamber of Commerce, declared, “The Legislature owes it to its citizenry to make the best deal possible for its taxpayers. That deal is an open competition for gaming that can bring in the most revenue and quite frankly that’s with a resort that can tap the huge New York market.”

“A project of this magnitude will definitely help our community,” Stratford Chamber Board Chairman Chris Pia told the Stratford Star.

“There are very few projects that have a huge economic impact on entire region as the potential gaming opportunity that would be made available with the passing of HB 5305,” said Jeff Bishop, executive director of the Trumbull Chamber of Commerce.

Despite all this support, most supporters conceded that the bill wouldn’t pass in the Senate in time to become law. They stopped pushing for a vote. Which means the issue probably won’t come up again until the legislature meets in January.

Supporters of the Bridgeport casino said they were encouraged by how far they had gotten with it, given the opposition.

Rep. Steven Stafsfrom of Bridgeport said, “We’re excited about where we’ve brought this this year and we think it gives us some real momentum going into the 2019 session.”

Even if the bill passed the Senate, it is likely that Governor Dannel P. Malloy would veto it.

A spokesman for the governor told the Day, “We will continue to monitor this proposal as it works its way through the legislative process. With that said, Governor Malloy has consistently cautioned that in regards to gaming issues in Connecticut, we must ensure that we are honoring our existing compact with the tribal nations and that we continue to prioritize Connecticut jobs.”

Senator Katherine Osten, who has opposed HB 5305, wondered out loud why the tribes didn’t simply go ahead with building the casino, in spite of the federal foot-dragging. “MMCT should be authorized for construction today,” she said. “They don’t have to wait for federal approval.”

The state Senate is equally divided between Republicans and Democrats and may be about as divided between supporters and opponents of the bill.

Senator Toni Boucher, a Republican, observed of his party’s caucus, “People are all over the place.”

Some who oppose it don’t believe MGM’s casino could provide enough revenue to make up for the 25 percent that tribes would stop paying if the compact is broached.

Andrew Doba, spokesman for MMCT Venture, the tribal gaming authority, referenced that fear: “Any legislator who votes for this bill is going to have to head back to their community and explain why they voted to place millions in funding in jeopardy, funding that helps with providing services and keeping taxes down.”

Attorney General George Jepsen has said that the bill would not violate the compacts. That would only happen, he says, if the legislatures accepts one of the bids and authorizes it to move forward.

Meanwhile MGM found itself defending its $50,000 donation that it made to create a pop-up grocery store in Bridgeport. Some doubted the company’s motives.

I’ve got nothing to defend. This is how we do business,” said Clinton, MGM’s spokesman. “We invest in communities where we want to do business.” He added, “Shame on anyone that would question it without having looked first.”

As part of its campaign to pass HB 5305 MGM sent a busload of people in green MGM T-shirts to the capital. In the first months of 2018 the company has spent $700,000 in lobbying in Connecticut.

 

IG Investigation

Meanwhile the Department of the Interior’s Office of the Inspector General has begun an investigation of how the department handled the tribes’ applications to obtain approval of the compact amendments.

The investigation follows on the heels of revelations by Politico that provided details on MGM’s extensive lobbying of the department to prevent it from issuing the approval the tribes needed to operate a casino.

Documents show that the department was on the verge of issuing the approvals when orders were issued to halt the process, which left the tribes’ application hanging. The Politico reported prompted several of the Connecticut congressional delegation to request an IG investigation.

Andrew Doba, spokesman for the joint tribal authority MMCT, commented, “We are grateful there’s an IG investigation into this issue because since last fall, none of the department’s actions have passed the smell test. Something clearly happened to pollute the process, which should be problematic for an administration that promised to drain the swamp.”

The law that authorizes the tribes to build in East Windsor also requires the blessing by the department. The law required the tribes to amend their compacts to document that the commercial casino they would be building did not violate the compacts’ guarantee of exclusivity for the tribes. In other words, the law requires that the tribes show they are not violating the compact themselves by operating a commercial casino.

The intense lobbying was only part of MGM’s campaign against a tribal casino that has also included challenges in federal court. MGM claims that the bill was unfair because it did not allow them to compete to build a commercial casino in the state.

While the drama unfolded that led to the House voting on the commercial casino bill, tribal leaders were meeting with lawmakers with a request of their own, to amend the bill passed last year to remove the requirement that the Department of the Interior give the amendment to the compacts its blessing.

Mohegan Tribal Chairman Kevin Brown and Mashantucket Pequot Tribal Chairman Rodney Butler lobbied the lawmakers, meeting with Speaker Joe Aresimowicz.

Brown commented, “Let’s go back to the beginning and see if there’s a way that we can strip that requirement and move forward.” The tribes have always argued that the satellite casino they want to build is a shield against the MGM Springfield stripping away money and jobs.

They have demolished the old Showcase cinema building and are waiting for a go-ahead to begin building the 200,000 square foot satellite casino.

Although the tribes contend that by its inaction the Department has essentially not objected to the amendment, Attorney General George Jepsen has opined that the federal approval is required.

Butler countered, “It’s an opinion, right? And we expect the leaders in the General Assembly to do exactly that, be leaders in a sense, and take that as an opinion and take into consideration what’s in the best interest of the state.”

Poker Pro Gordon Vayo Sues PokerStars

Poker pro Gordon Vayo has filed a lawsuit against PokerStars saying the company owes him about $692,000 in damages after denying him payment resulting from his May 2017 first place finish in “Event 1-H” of the PokerStars Spring Championship of Online Poker.

PokerStars maintains that Vayo played some parts of the tournament while in the U.S., violating geolocation rules.

According to Online Poker Report, the suit claims that after winning the event Vayo tried to withdraw his PokerStars account balance. He was then notified by PokerStars that the funds were being “frozen for investigation of suspicious activity” related to Vayo’s physical location during a portion of the event in question.

Vayo says the investigation by PokerStars lasted approximately one year, during which he was the victim of a “campaign of harassment” that included “prying into every aspect of his record” and demanding Vayo produce detailed retroactive proof of his location.

Vayo says he cooperated with the PokerStars investigation and “provided evidence showing that he was in Canada during the entirety of his play in the SCOOP tournament.”

However, PokerStars determined, “despite the evidence produced by Vayo, it was ‘not inconceivable’ that Mr. Vayo was in the U.S. at some point during the SCOOP tournament.” PokerStars informed him that he “had failed to produce evidence sufficient to ‘rebut’ their suspicion that Mr. Vayo was in the U.S. during a portion of the SCOOP tournament, and, as a result, Vayo would not be paid.”

Vayo argues in the lawsuit that the US District Court for the Central District of California “has subject matter jurisdiction over this action” and that the “Plaintiff asserts federal claims under the 1946 Lanham Act” pertaining to U.S. trademark laws.

Nevada Casino Fined for Promoting Illegal Web Gambling

Nevada regulators have fined Reno’s Boomtown Casino Hotel $40,000 for promoting offshore internet gambling to visitors to its website.

As part of a stipulated settlement with the state Gaming Control Board, Boomtown also agreed to donate to the Reno Problem Gaming Center a sum equal to the commissions the casino received based on the net losses of the players it referred to the sites.

Boomtown management admitted it used Affiliate Edge and Deck Media, skins based in the Caribbean nation of Curacao, to allow customers to gamble online between March and August of last year. According to a May complaint filed with the Control Board, Boomtown listed links on its website to “Play Online” and “Play Even Away,” which were links to the offshore sites.

The settlement also requires Boomtown to implement “suitable written procedures” and increase employee training “to prevent violations of the standards and requirements relevant to its gaming and related marketing activities, including its website and links placed on its website.”

In accordance with federal law prohibiting offshore gambling operators from marketing to U.S. players, Nevada prohibits companies from offering interactive gaming unless they are licensed by the state.

GAN Raises £7.5 Million for U.S. Sports Betting

Internet gaming software firm GAN announced it had raised £7.5 million for entry into a new U.S. Sports betting market in the wake of the U.S. Supreme Court decision overturning a federal ban on sports betting.

The developer and supplier of enterprise-level B2B internet gaming software, services and online gaming content in the U.S., said in a press release it had conditionally raised £7.5 million through an over-subscribed subscription of 15 million ordinary shares of £0.01 per share, at an issue price of £0.50 a share.

The new shares will represent 17.6 percent of the enlarged issued share capital of the company. GAN had a market capitalization of some €55 million on the Irish Stock Exchange ahead of the transaction.

GAN said it would use the proceeds in several ways including “substantially” increasing its software engineering resources to serve existing major U.S. clients. The company also hopes to launch new U.S. clients and services.

The proceeds will be used to repay a £2 million convertible unsecured loan note in full, “in order to strengthen the company’s balance sheet.” The company also expects to increase software engineering resources at its office in Sofia, Bulgaria.

“This strategic capital raising exercise positions GAN to consolidate its US market position and capture substantial incremental revenue opportunities available resulting from both internet gaming and sports betting regulation in New Jersey, Pennsylvania and other U.S. States expected to regulate internet gambling in the near future,” said Dermot Smurfit, chief executive, in the release.