Author: Casino Connection Staff

Elaine Wynn has taken her proxy fight with Wynn Resorts’ board of directors to state court in Nevada.

Wynn, who emerged as the company’s largest shareholder earlier this year following a sexual harassment scandal that ousted her ex-husband Steve Wynn as chairman and CEO, wants nominations for directorships reopened, claiming the current board has been altogether too cozy with Steve Wynn. She has targeted one director specifically, Idaho investor John Hagenbuch, reportedly a close friend of Steve Wynn’s, whose re-election she opposes.

Hagenbuch, a director since 2012, is on a special committee of the board investigating the sexual harassment allegations against Wynn, who has denied any misconduct and has since sold off all his stock.

Elaine Wynn got a powerful ally last week when the shareholder advisory group Glass Lewis backed her campaign to reject Hagenbuch.

“We are ultimately inclined to conclude there may be greater value in effectively objecting to Mr. Hagenbuch’s nomination,” said the Glass Lewis recommendation, “which should be considered against his questionable role on the special committee reviewing accusations against Mr. Wynn and his shared culpability for years of misaligned compensation practices that Glass Lewis continues to believe are problematic.”

The group went on to say that Wynn Resorts early response to the Steve Wynn harassment scandal backed Elaine’s contention that board members were subservient to Wynn when it released a February 6 statement saying that has “reluctantly” accepted Wynn’s resignation, calling him a “beloved leader and visionary.”

“Given the gravity of the allegations in question, the possibly adverse impact on portions of Wynn’s business and the decidedly nascent phase of the special committee’s process at that point in time, we consider the issuance of such a statement is fairly tone deaf in terms of timing and cultural context,” the advisory firm said.

Wynn Resorts responded to the report, which gave Wynn the lowest grade possible—“F”—for its pay-for-performance practices the past two years. Maddox received a $24 million pay package, which Elaine Wynn called “exorbitant for a first-time untested public company CEO.”

But a Wynn Resorts press release said that the Glass Lewis report was also critical of Elaine Wynn.

“Ms. Wynn was a company director from 2002 to 2015, during which Wynn maintained similarly restrictive corporate governance provisions…” the report. ”We continue to take a fairly dim view of language that seems to exculpate Ms. Wynn of her shared responsibility for Wynn’s more regressive machinery.”

The Wynn press release urged shareholder to approve Hagenbuch because, “Wynn’s Board and management team are continuing to drive growth at Wynn, move past the founder-led era of Steve Wynn, and evolve into a stronger company that is poised for long-term growth.”

After issuing an open letter to shareholders last month stating her aims, Elaine Wynn wants the court to compel the board to provide her with the contact information for all “non-objecting beneficial owners” of the stock, and she wants the company’s May 16 annual meeting postponed to give her time to reach out to them directly.

“Providing the NOBO list is standard practice under Delaware law, and both federal and state courts have ruled that shareholders of a Nevada corporation are entitled to the list,” she said in a statement accompanying her court filing. “Because a large percentage of Wynn’s shares are held by nominal holders such as brokers, the NOBO list is necessary to identify the actual beneficial owners of Wynn shares. Without knowing the voters, Ms. Wynn is unable run an effective director election campaign.”

After first denying her the list, the board has since acceded to the request. It has stood firm in support of Hagenbuch, however, and refuses to reopen nominations or postpone the meeting.

“Elaine Wynn once again has chosen to litigate rather than communicate, despite the company’s public offers to meet with her to discuss the current state of the business,” the company said in response to the suit.

Wynn has been battling Wynn Resorts for years to assert a say over the company’s affairs. Her 2010 divorce settlement left her with a sizable share of stock, more than 9 percent, but the terms of the agreement vested effective control of it with her ex-husband, who was battling for control of the company with Kazuo Okada, the Japanese machine gaming tycoon who had bankrolled Wynn’s 2002 IPO and was the largest individual shareholder. A bribery scandal tied to a resort development Okada was pursuing in the Philippines led to his ouster from the board in 2012 and his stock was cancelled. Elaine Wynn then sued her ex to regain control of her shares and was herself thrown off the board. It was their court battle that first lifted the lid on the sexual misconduct allegations, revealing the existence of a secret $7.5 million payment Wynn had made to a former Wynn Las Vegas manicurist who was one of his reputed victims. Elaine Wynn claims the board knew of the payment and for years had remained silent in the face of numerous reports of assaults against female employees by her ex-husband.

The allegations are the subject of investigations by regulators in Nevada, where the company own two marquee resorts on the Las Vegas Strip, and Massachusetts, where the company is developing a $2.5 billion gaming resort outside Boston.

Following up on her latest court filing, Elaine Wynn said, “My sole focus is on increasing shareholder value, reforming the company’s corporate governance practices and restoring the company’s reputation.”

In an open letter to shareholders seeking support for its nominees the board responded that it “acted swiftly and decisively to do what is right for the company and its shareholders,” citing the recent appointment of three outside business leaders, all women, as independent directors.

“Today, we are a very different company than we were three months ago, and we have a refreshed, diverse board in place that is committed to active oversight in leading the company forward. We have made great strides in restoring stability at Wynn, but we need your help to continue this progress.”

Steve Wynn, meanwhile, has emerged from obloquy to sue a former Wynn Resorts hair stylist, for defamation for statements he made in an explosive January story in The Wall Street Journal that led to the casino magnate’s downfall.

Jorgen Nielsen was one of only two people who spoke on the record for the story—the other was Elaine Wynn’s publicist—which contained a withering barrage of sexual harassment accusations by former Wynn employees, most of them salon and spa workers. Nielsen, who worked as a salon director at several Wynn hotels, was quoted as saying, “Everyone was petrified’’ of the billionaire, and that he and other employees informed company executives about the harassment, but “nobody was there to help us.”

Wynn has denied any misconduct and has blamed the article’s appearance on the machinations of his ex-wife, a claim the suit reprises by describing Nielsen as her personal stylist.

It characterizes Nielsen as a “disgruntled former employee” who “harbors a personal animus, dislike, and anger toward Mr. Wynn.” It claims his statements, which include an episode in which a salon manager hid in a bathroom to escape him, are blatantly and knowingly untrue.

‘’In falsely accusing Mr. Wynn of sexual misconduct in the #MeToo era, defendant Nielsen acted with the unlawful purpose of smearing Mr. Wynn and creating workplace issues for Mr. Wynn at a time when he was embroiled in highly contentious and public litigation with his ex-wife, Elaine Wynn,’’ the suit states.

Nielsen did not respond to media requests, according to local news reports. A spokeswoman for Elaine Wynn declined to comment.

Name Game

Meanwhile, the Wynn Boston Harbor in Everett, Massachusetts has a new name. The $2.5 billion casino that is rising towards completion in June 2019 along the banks of the Mystic River has been dubbed the Encore Boston Harbor, signaling the complete break between the founder who gave his name to his company, and that company.

As the announcement was being made workers at the construction site began taking down banners with the old name and replacing them with new banners.

Wynn Resorts dropped the Wynn name from the casino under intense pressure from many Bay State officials in the wake of multiple accusations of rape and sexual harassment that surfaced against Steve Wynn in January in the Wall Street Journal—accusations that prompted his resignation as chief executive officer and his selling of all of his shares in the company.

That wasn’t sufficient for many people, who felt that keeping his name on what will be the largest casino in Massachusetts was degrading to women and to the state’s nascent gaming industry. The Massachusetts Gaming Commission had signaled that the company’s hold on its gaming license was tenuous and could be severed if commission investigators found any proof that company executives had helped hide Wynn’s $7.5 million payment to a massage therapist who accused him of rape when the company was applying for its gaming license in 2014.

The name change, that flushes the Wynn name into the memory hole, was announced at last week’s commission meeting by CEO Matt Maddox. Encore is not a new name for the company, but simply another brand that Wynn Resorts uses, especially for its overseas luxury properties. Wynn runs two Encore hotels in Las Vegas and Macau.

The company hopes this will put enough space between the disgraced founder—who vehemently denies all charges—and his company, which is desperately trying to preserve its right to operate a casino in Everett. Meanwhile, Wynn has filed a defamation suit against the Associated Press for some of its reporting on allegations against him.

“The Wynn brand is strong,” Maddox told the commission. “I also understand the cultural sensitivity here.” He said the company had taken “rapid and decisive actions” put as much space between itself and the founder as possible.

Maddox released the name change at a hearing before the commission on a request by his company to have the founder removed as an “individual qualifier” linked to the casino license. Such qualifiers, who also include company officers and large shareholders, are required to pass state background checks. Wynn divested himself of his 12 percent ownership in the company two months ago. He also moved out of his former villa at the Wynn Las Vegas hotel complex.

The director of the Boston Area Rape Crisis Center, Gina Scaramella, called the action “a positive step” and called it “the first of what we hope will be many steps to create a workplace in which all employees are safe.”

However, members of the commission remained silent on the change.

About 1,500 construction workers are currently at the construction site of a hotel that will have 671 rooms, 13 bars and restaurants, and will, along with the casino, require about 4,000 full time employees. Wynn has so far spent $1.4 billion.

Recently several news reports have revealed that MGM and Wynn have been in discussions about selling the Everett casino to MGM. This would greatly complicate MGM’s situation since state law does not allow a casino owner to hold more than one license in the state. This in turn has fueled speculation about MGM “trading up” by purchasing the Boston Harbor and then selling its interests in the MGM Springfield.

However, at this point that is all that is: speculation. Maddox has deemphasized that possibility in his public statements in which he has said that the company wants to open the resort, but he alluded to the possibility of a sale if the commission’s investigation reaches a negative conclusion. During his talk last week, Maddox noted that the company has added three women to the 11-seat board of directors.

Commissioner Gayle Cameron interrupted the CEO: “I just have to make the point, 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.”

Maddox, who is 42, countered that the drive to change was being brought about by a new generation, including himself. “I am part of the generation that believes this. I’m part of the generation that’s driving this.” He added, “Things are moving at lightning speed. We are moving this company forward. We’re taking these issues very seriously.”

One of the new female board members, Betsy Atkins told the Boston Globe, “They are very eager to work with the gaming regulators and satisfy those questions and make sure they have full the support from the gaming commission. They have every desire to go forward.”

Some, like Steve Wynn’s former wife, Elaine Wynn, says the company isn’t going far enough in changing its culture. In a filing last week with the Securities and Exchange Commission, she wrote, “I do not believe these steps go far enough toward changing ‘business as usual’ in Wynn’s boardroom.”

She wants to purge the board of Wynn’s old associates on the board, whose ties to Wynn are too strong.

Atkins disagrees. She told the Globe, “I don’t think it’s a founder-dominated environment at all. I don’t think anyone at the company said it is done.” And if the MGC demands that more heads be chopped off?

“We are in hypothetical land,” she answered. “We will make a business judgment to maximize the value of the company’s assets. That’s the obligation to our shareholders and to mitigate the risk.”

The commission is expected to issue its report within the next week.

In a conference call with investors that followed the commission hearing Maddox told investors that Boston remains a highly attractive location for the company.

“We love the market. We are going to continue to actively cooperate with the regulators there and move forward,” he said.

He reaffirmed that stance in an interview with CNBC: “Boston is not up for sale. What Boston represents for us is a good growth opportunity. I like that market. I found the land. I pursued that deal.”

The mayor of Everett, Carlo DeMaria, spoke approvingly of the name change, which officials including Governor Charlie Baker and Attorney General Maura Healey had publicly called for. “There were a lot of serious allegations made,” he said. “If those prove to be true, they’re not appropriate and a name change is in the best interests of the project.”

He later told the Boston Globe “I don’t see the board allowing this license to slip away, because it is such a lucrative license. The board has an obligation to its shareholders, and they would have to remove those that aren’t suitable.”

MGM Springfield

MGM is putting the “spring” into Springfield by sprinting ahead even faster in its headlong rush to open the $960 million MGM Springfield—with the announcement last week that it has moved its opening forward from September to August 24.

MGM Reports President Bill Hornbuckle told the Republican “It has just come together amazingly well.” He added, “It’s extremely exciting. Our commitment is to Springfield. Our commitment is to get this open successfully. We are well on track to do that.”

You’d think that after waiting seven years there wouldn’t be that much of a hurry. But apparently there is. That sense of urgency was assisted by two mild winters and the faster-than-expected completion of the Interstate 91 rehabilitation project that the casino was depending on being finished before it opens next to the freeway.

The relationship between the city and the company stretches back to the fall of 2011, according to Hornbuckle. It grew to include preserving as much of the city’s historic architecture by combining it with the practical requirements of the casino resort.

MGM boasts of its efforts to preserve buildings such as “the First Spiritualist Church, Springfield Armory and Chandler Union Hotel — where Presidents Polk and Buchanan both stayed.”

MGM has dubbed its creation: “New England’s first integrated luxury resort and entertainment destination.” MGM Springfield President Michael Mathis describes it as “what we believe will become the region’s premier entertainment destination and play a role in an exciting renaissance for Springfield.”

He added, “A testament to a decade of collaboration between the City of Springfield and MGM Resorts, MGM Springfield will pay tribute to the city’s legacy and celebrate its bright future, while introducing a stellar array of hospitality and entertainment experiences that will attract guests from New England and beyond,”

The grand opening will occur as a national insurance convention takes place a few blocks away at the Springfield Sheraton Monarch Place and MassMutual Center.

The city anticipates that the Independent Insurance Agents & Brokers of America Inc. is visiting Springfield for its 2018 Fall Leadership Conference will introduce more than 600 insurance professionals to the city. It hopes they may want to party.

Mayor Domenic J. Sarno, who supported the casino from the beginning, is returning the love. He told the Republican, “I look forward to work with MGM Springfield for many years to come. They’re a world-class company and an outstanding corporate citizen.”

Of course, the city is happy that the casino has pledged to hire at least 3,000 employees, of which 2,200 will be full-time with benefits, and with many positions varying from $40,000-$55,000. It has also committed to hiring more than a third from Springfield, and no more than 10 percent from outside of the area, along with goals of hiring women, veterans and minorities, all of which it so far claims to be exceeding.

MGM has aggressively recruited locally and helped fund training and such things a culinary classes and dealer’s schools in conjunction with area community colleges.

One city, Holyoke, squeezed a mitigation agreement out of MGM that calls for hundreds of its residents being hired.

Another city that is using mitigation money from MGM to try to benefit itself is Northampton, which is creating a marketing plan to attract diners and shoppers from the casino. It is using a $15,000 grant from the state’s casino mitigation fund to pay for the plan and then the remaining $85,000 to implement the plan.

Questioned about the possibility that MGM might purchase the Encore Boston Harbor from Wynn Resorts, a possibility that sends shivers down the spine of some Springfield officials, Hornbuckle said, in essence, “no comment,” although he said that MGM is fully committed to the city.

The relationship between MGM and Springfield has hit some potholes. The city chose MGM from among other bidders in 2013. Springfield voters approved of the host community agreement in July of that year by a margin of 58 to 42 percent. The groundbreaking was March of 2015.

When completed the resort casino will boast:

A five-story hotel with 250 rooms that will incorporate some of the city’s iconic architecture.

A casino with 125,000 square feet of gaming and 2,550 slot machines, 120 table games, a poker room and high limit VIP area.

Dining, including an Italian restaurant, Cal Mare; the Chandler Steak House, featuring Meghan Gill, a winner from the Hell’s Kitchen TV series, the TAP Sports Bar. The South End Market, a food court, will feature a variety of venues.

MGM plans to bring several shows a year to the MassMutual Center, which it will be operating for the city in partnership with Symphony Hall and CityStage. It will also manage an eight-screen cinema, a bowling alley, spa and swimming pool located within a terraced rooftop garden.

Street level retail shops will operate adjacent to the casino and lead to an open-air plaza that is being built around the restored State Armory building where events, include live music, art shows and farmers markets will vie for attention.

The casino will also rent out 42,500 square feet of business space that can be used for meetings and events.

Still Popular

The level of support that was shown when Springfield voters approved of the casino has only grown over the years.

A just released survey by Western New England University showed that 61 percent of residents support the casino project, compared to 26 percent against.

Tim Vercellotti, director of the WNEU Polling Institute last week told New England Public Radio, “That’s a pretty significant margin, when you consider that ages ago, the actual project was approved by a somewhat narrower margin of 58-42 back in July of 2013.”

In the survey, which was, for the first time for such a “quality of life survey,” conducted in both English and Spanish, the casino is more popular with men than with women. Newcomers are more likely to support it than longtime residents. Young people were more likely to support the casino than older people.

Vercellotti told NEPR: “We did see there’s a tremendous amount of public awareness of it. When we asked people how much information have you heard or read about the casino project, a large majority said they had heard a lot, or some, information about the project ahead of time.”

Among the supporters 64 percent said they expected the MGM to generate jobs, economic activity and to revitalize the city. A secondary reason for supporting it was the increase tax revenue.

The most common reason (40 percent listed this) opponents gave was the expectation of increase crime downtown. Traffic concerns was the next most common.

Another point of interest was that the city’s level of optimism had risen during the same period covered by the approval and construction of the casino.

Vercellotti commented, “What we found is there is a strong statistical connection between optimism about the economy and support for the casino.” He added, “Among supporters of the casino, two-thirds — 67 percent — expect Springfield’s economy to be ‘much’ or ‘somewhat better’ in five years. Among opponents of the casino it’s only 40 percent.”

New Jersey is preparing to modify its own law to regulate sports betting as it awaits a U.S. Supreme Court decision on its challenge to the federal Professional and Amateur Sports Protection act, which bans sports betting in all but four states.

A bill introduced in the State Assembly would establish regulations to license and operate sports betting at New Jersey’s casinos and racetracks and also on the state’s online gambling sites.

New Jersey’s challenge of PASPA, however, actually supports an earlier state law that would have allowed casinos and racetracks to offer a self-regulated form of sports betting. The state had initially challenged PASPA as unconstitutional, but the High Court did not hear that appeal. New Jersey then put forward the self-regulating plan as a way around PASPA. That law was also struck down by federal courts, but the Supreme Court agreed to hear the state’s second appeal.

The new bill would allow the state to put in restrictions such as blocking bets on any New Jersey college or high school athletic events, however, collegiate tournaments, such as the NCAA men’s basketball tournament would be excluded.

The state Division of Gaming Enforcement would issue sports betting licenses and enforce regulations while the New Jersey Racing Commission would also be involved in approving the operation of sports pools at a racetrack, according to an analysis of the bill by the Press of Atlantic City.

Sports wagering revenue would be taxed at 8 percent and online sports betting would be taxed at 12.5 percent.

Also, casinos and racetracks would pay an annual sports betting “integrity fee” which would be equal to the lesser of $7.5 million or 2.5 percent of their gross sports wagering revenue, according to the Press. The fee would fund investigations into the integrity of sports games by the state. The bill, however, does contain a mechanism to pay some of the integrity fee to professional leagues. The NBA and MLB have begun lobbying for such a fee ahead of the Supreme Court decision.

Assemblyman Eric Houghtaling, a Monmouth County Democrat and a co-sponsor of the bill, said sports betting could be a “great opportunity” for the state. He said the bill was still a “work in progress” and that legislators would continue working with casinos and racetracks going forward.

“We are open to feedback and look forward to bringing the New Jersey gambling industry forward,” Houghtaling said in a news release.

Mess in Missouri

In Missouri, state Rep. Bart Korman’s HB 2320, which would allow sports betting at casinos, through the lottery and on daily fantasy sites, is one of six sports betting bills that have been introduced this session. It’s also the one with the best chances of passage, but not until the 2019 legislative session, Korman said. “I wanted to put out a structure that would put us ahead of the game. If the Supreme Court passes so that it can become a reality, then I think next year, you’ll see a lot more movement on this,” he stated. The bill has not yet been scheduled for debate.

He noted gambling and other legislation is not moving through the legislature as it would be without the distraction of Governor Eric Greitens’ two felony charges.

Korman said during the current session, which ends May 18, lawmakers will study, discuss and come to some agreement on sports betting, laying the foundation for quick passage of legislation next year.

He does not believe sports betting legislation should include the “betting right and integrity fee” sought by the National Basketball Association and Major League Baseball. He said his measure would keep money that already is being wagered within the state.

Korman’s bill proposes sports betting at casinos, the lottery and DFS sites because, he said, “We’re restricted on our casinos. They have to be on the riverboats and there is a limit of licenses. So, if you cap it and say only the casinos can do it, then it limits things, and keeps the black market thriving in a sense. That’s why I kept in the DFS, it’s really gambling and it is sports, so why not?”

He added, “And then I looked at the lottery, To be honest, they haven’t updated in years, but I think they should have the ability to do that. Private businesses kind of already bet on sports. If a home run is hit in the seventh inning, then everyone in town gets a free pizza. So, sports and a potential win of something else is already out there.”

Still, it remains unclear if sports wagering would generate enough revenue to make it worth legalizing. If a state adds too many taxes and restrictions, plus an integrity fee for the pro leagues, gaming operators may decide to not offer sports betting, or the odds and sports book offerings may be less attractive, causing some bettors to wager offshore or in a neighboring state.

The current tax rate proposed for sports betting in Missouri is 12 percent–nearly double the 6.75 percent sports books pay in Nevada. Korman said he’d prefer a tax rate around 20 percent. But, he noted, “I think the tax rate shouldn’t be part of the debate. I understand that if the tax rate does get lowered and is somewhat comparative to Nevada or surrounding states, that needs to be looked at.”

Arizona Ascending

Arizona is one of the states waiting impatiently to see if the U.S. Supreme Court will rule on the legality of the ban on sports betting that applies to all but four states.

Lots of average Joe’s would like to be able to legally bet on their favorite teams without resorting to the black market or traveling to Las Vegas.

Jason Logan, managing editor of Covers.com, recently told Cronkite News: “Gamblers are guys like me,” and added, “It’s not a ‘in the shadows type’ thing, nor should it be. It becomes legalized and you are going to get that overall experience. It’s not just something you do only in Las Vegas anymore.”

The high court is expected to rule on the ban by June.

State Senator Sonny Borrelli says he will sponsor a bill to legalize it in Arizona and use some of the taxes to help fund teachers’ salaries. He says the state is sending this revenue to other states now.

Some critics worry that sports betting could corrupt games like they corrupted baseball at the beginning of the 20^th century during the Black Sox scandal. More recently two Arizona State basketball players were accused of shaving points in 1994. Of course, even if sports betting is legalized, most proposals would continue the ban against betting on collegiate sports.

Pete Rose, who would probably be listed in the Baseball Hall of Fame as one of the greatest players of all time missed out on that honor because he bet on the game when he was manager and player for the Cincinnati Reds.

None of these scandals are associated with the legal betting conducted in Las Vegas. Supporters of legalizing the practice throughout the U.S. said that would make it easier to track unethical practices.

In recent years the wheel of public opinion has slowly been turning in favor of legalized sports betting.

Earlier this year NBA Commission Adam Silver wrote an Op-Ed in the New York Times that it was time to consider legalization.

Players Associations for most of the professional leagues last month issued a statement that called for giving players a voice in this decision.

U.K.’s Premier League supports integrity fee idea

As stakeholders across the U.S. anticipate a decision from the U.S. Supreme Court by June in Christie (Murphy) v. NCAA that could remove the federal ban on sports betting, the American Gaming Association held an event to bring together state-level stakeholders in a potential legal U.S. betting market.

Last week, the AGA held its first-ever State Stakeholders Summit, convening industry experts and invested stakeholders to drive the evolving national debate on expanding legalized, regulated sports betting. Held at the Hall of States, the event focused on potential policy solutions for state and federal legislatures and regulatory bodies. Drawing upon critical guidance from gaming regulators and AGA policy principles, stakeholders discussed the need for sound policy that would enhance law enforcement resources and drive customers to a legal, regulated sports betting market.

The Supreme Court, before its June recess, is expected to issue a decision in the case brought by the NCAA and four professional sports leagues challenging a law signed in 2014 by then-Governor Chris Christie creating a self-regulated sports betting program. The leagues contend the law violates the 1992 Professional and Amateur Sports Protection Act (PASPA), which bans sports betting in all but four states, and bans single-game betting everywhere but Nevada.

The AGA has made repeal of PASPA a primary focus, contending the law restricts state and federal economic benefits, exhausts law enforcement resources and perpetuates a thriving illegal sports betting market in the U.S. estimated to be in excess of $150 billion annually.

Participants in the State Stakeholders Summit included those who joined AGA in filing amicus briefs with the Supreme Court in support of New Jersey.

“This meeting was an opportunity to continue our longstanding dialogue about shutting down the illegal sports betting market with some of the most important stakeholders in the debate,” said AGA Senior Vice President of Public Affairs Sara Slane. “States are anticipating and are preparing to offer legal, regulated sports betting in a way that meets the needs of their constituents. The organizations represented are central to advancing effective and sensible sports betting laws and regulations, and enacting and enforcing these new rules.”

Participants included members of AGA’s Sports Betting Task Force, former and current gaming regulators, and representatives from the National Governors Association, Conference of Western Attorneys General, National Conference of State Legislatures, American Legislative Exchange Council, Fraternal Order of Police, Major County Sheriffs of America, National Association of Counties and the Council of State Chambers, among others.

The Stakeholder Summit preceded a meeting of AGA’s Public Policy Committee, which convenes biannually to discuss industry policy priorities and activities.

AGA will issue an after-action report outlining lessons learned from the summit, and next steps for advancing sound sports betting policy that shuts down the illegal market.

Meanwhile, the very leagues that brought the original lawsuit challenging the New Jersey law are continuing their efforts to get a piece of the sports betting action should PASPA be overturned. The effort initiated by the National Basketball Association to have lawmakers in more than 20 states include what they first termed an “integrity fee” has evolved to the point where league officials were joined by Major League Baseball representatives have been meeting privately with officials in New Jersey to negotiate a fee.

The “integrity fee” originally proposed by the NBA was 1 percent of all wagers on its league’s games. Various proposals have placed the proposed fee as low as 0.25 percent of wagers. NBA lawyers, cognizant of the fact that regulated sports betting is more likely to support integrity in sports than endanger it, are now calling the proposed fees a “royalty” for casinos or racetracks that profit from the league’s “product.”

Speaking at the National Indian Gaming Association’s Indian Gaming Tradeshow in Las Vegas, NBA Senior Vice President and Assistant General Counsel Dan Spillane said the league “doesn’t call it an integrity fee” anymore, although that language I used in state-level bills to regulate sports betting.

“It’s a ‘sports betting rights and integrity’ fee,” Spillane said. “It’s a royalty in a way… These are our games. They are the backbone of the whole business of sports betting, and we think it makes sense for us to be compensated. We’ve invested billions of dollars in creating this product. You can’t have sports betting without our game. We generate a lot of fan interest… that translates into people participating in sports betting. We think it’s reasonable for us to be compensated for that input just like every other supplier.”

He said the “integrity” term is relevant because there is a “risk to our business” even with regulated sports betting.

“The risk from (a potential) sports betting scandal or integrity incident would be devastating to our brand,” Spillane said. “People (need to) trust that the competition is fair and real… we think it makes sense that we should be compensated for (that) risk.”

He added that expanded sports betting will cause the league to spend more money to scrutinize wagering activity. “If betting becomes widely legal, that is going to cost money,” Spillane said. “The integrity fee is intended to cover those expenses.”

The AGA has criticized the integrity fee as unworkable, because it would cut into an already-thin profit margin for bookmakers, making them unable to compete with illegal bookmaker. At the Las Vegas event, a senior official of NIGA voiced a similar opinion.

“That makes it less viable for us as an amenity, so I think there needs to be more discussion and compromise,” said Deborah Skenandore-Thundercloud, chief of staff for NIGA. “We have federal, state and tribal regulation, and if we put a lot of dollars into that and (also) fees for other entities participating, it is not fair to us.”

Despite the opposition, the U.S. leagues gained support last week for the fees from one of the world’s largest legal sports betting markets, the U.K. In an interview with ESPN, the rights holder for England’s Premier League football (soccer), spoke out in support of a fee.

“Broadly, we don’t think what the leagues are asking for is fundamentally wrong, if you’re trying to come up with a framework that works for both parties,” said Adrian Ford, general manager of Football DataCo, the official rights holder for the Premier League and all professional soccer leagues in England and Scotland.

“We would not see why there would be an issue about sports getting a return from betting,” Ford told ESPN. “We’d echo some of the high-level statements the NBA has made. If someone is making money off us, there’s no reason why we shouldn’t be interested in that and why we shouldn’t have some level of involvement in the commercial return.”

The latest expert predictions logged by sportshandle.com have the U.S. Supreme Court narrowly holding PASPA to be unconstitutional. “I predict that by a 5-4 vote, the Supreme Court will find PASPA to be unconstitutional under the 10th Amendment in a way that allows any state to legalize sports betting, because four states were grandfathered in in the original legislation,” said Barry Lieberman, a Las Vegas-based sports, horse racing, and internet gaming attorney and former attorney in the U.S. Justice Department. “This is a broader ground than a narrow holding that would allow only New Jersey to conduct sports wagering if they repeal all laws regulating sports wagering.”

Kate Lowenhar-Fisher, a Las Vegas-based gaming attorney for law firm of Dickinson Wright, also predicted a win for New Jersey, although not a complete win. “SCOTUS strikes down two parts of PASPA that are unconstitutional: (1) The disparate treatment (grandfathering) of states violates the equal sovereignty doctrine and (2) The delegation of regulatory power to private sports leagues violates the private non-delegation doctrine,” she said. “The unconstitutional parts of PASPA are severable, so the rest of the law remains intact, and we have mass confusion!

“The vote: 6:3. Ginsburg, Sotomayor, and Kagan dissent. Concurring opinions among the 6 lead to serious head-scratching.”

In New Jersey, operators are preparing for a decision that repeals PASPA and allows the sports-betting program to begin quickly. In addition to sports books in Atlantic City casinos, racetracks like the Meadowlands and Monmouth Park are ready to immediately begin accepting wagers.

Connecticut Lawmakers Wrestle with Sports Betting

Connecticut Attorney General George Jepsen said last week that if a federal ban is lifted on sports betting, and if the state legalizes it, the state’s gaming tribes would not have a monopoly on it.

Jepsen’s opinion, issued at the request of the legislature, said, “It is our opinion that if sports betting were to become lawful in Connecticut, the tribes would not have an exclusive right under the existing compacts and memoranda of understanding between the state and the tribes, or ‘MOUs’ to offer it.”

That opinion makes it even less likely that a sports betting bill, HB 5307, will be voted out of the Public Safety & Security Committee and onto the floor. Currently its status is “tabled.” It is an open-ended bill that would authorize the state’s consumer protection commission to create regulations governing it.

Another bill, this one originating in the Senate, is friendly towards requests by Major League Baseball and other leagues that they be given a share of any sports betting taxes.

The advice is similar to an opinion Jepsen offered several weeks ago but adds detail. For example, Jepsen writes, “The tribal-state compact and agreements set out a list of authorized games. Sports betting is not listed as an authorized game. By contrast, for example, parimutuel betting on horse and dog racing and jai alai games are authorized games. The exclusion of sports betting from the specific list of authorized games is compelling evidence that the compacts do not presently authorize it.”

The tribes differ with the AG. In March, Seth Young of Foxwoods Resort Casino, submitted a written testimony: “While I am not a lawyer for Foxwoods or the tribe, I will also state for the record that I know the tribes believe sports gambling, daily fantasy sports betting, and iGaming fall under the exclusivity agreement.”

If the tribes are correct and not giving them exclusive rights violates the gaming compacts, that would threaten the $250 million or so that both tribal casinos are currently paying in revenue sharing. That 25 percent of slots revenue is considerably higher than any amount the state is likely to collect from sports betting.

The fate of the 1992 law is before the U.S. Supreme Court, which could issue a decision on it any day now.

The Mississippi Gaming Commission approved Penn National Gaming’s $2.8 billion acquisition of Pinnacle Entertainment. Gaming regulators in Pennsylvania, Illinois and West Virginia previously approved the purchase. The deal also was OK’d by the Pennsylvania State Horse Racing Commission, as well as the majority of Penn National and Pinnacle shareholders. Officials at Wyomissing, Pennsylvania-based Penn National said the deal will save the company $100 million annually.

Once the merger with Las Vegas-based Pinnacle is completed, Penn National will operate a total of 41 properties in 20 states, with approximately 53,500 slot machines, 1,300 table games and 8,300 hotel rooms in the U.S. The transaction will allow Penn to enter three new states: Colorado, Louisiana and Iowa.

After the transaction was announced in December, to avoid anti-trust violations, Pinnacle said it would sell four of its Ameristar properties to Boyd Gaming Corporation for $575 million. At the same time, Boyd would sign a lease agreement with Gaming and Leisure Properties Inc., the landlord for Penn National and Pinnacle.

In March, the Federal Trade Commission issued a second request for “additional information and documentary material” regarding Penn National’s purchase of Pinnacle; the reason remains unclear.

In a call with investors, Penn National Chief Executive Officer Tim Wilmott said, “Having visited all of the Pinnacle properties, as well as their Las Vegas Service Center on multiple occasions, we remain very impressed by their talented property and corporate teams and continue to make meaningful progress with our integration planning. As we’ve learned more about Pinnacle’s operations and processes, we are confident our $100 million of cost synergy objectives are well within reach.”

Wilmott added the company will continue to seek additional regulatory approvals as it looks to close the transaction in the second half of 2018.

Florida Governor Rick Scott recently announced a deal with the Seminole Tribe, which would continue paying $19.5 million a month, or $300 million annually to the state through the 2019 legislative session. In return, the tribe would continue to have exclusive rights to offer blackjack at its casinos and slots outside Miami-Dade and Broward counties.

Scott said, “Today, I am proud to announce that the state of Florida has reached an agreement with the Seminole Tribe which ensures the tribe’s current commitment remains intact. Since I took office, the 2010 Seminole compact has generated more than $1.75 billion which has helped our state make historic investments in things like Florida’s education and environment.” He added “the Florida Department of Business and Professional Regulation will continue its work of aggressively following and enforcing Florida’s strict gaming laws and rules.”

Meanwhile, Senate President Joe Negron confirmed that because of “budget unpredictability, uncertainty as to the effect of a proposed constitutional amendment and potential challenges in limiting the scope of the call,” a special session will not be held.

Incoming House Speaker state Rep. Jose Oliva and incoming Senate President state Senator Bill Galvano continue to negotiate gambling legislation before the November election, when voters will consider Amendment 3, backed by Disney Worldwide and the Seminole Tribe. If the constitutional amendment gets the 60 percent of the vote, it would give voters, not lawmakers, control over future gambling expansion.

Galvano stated, “The constitutional amendment will either change the playing field completely, or leave the status quo and, if we wanted to make legislative decisions that might otherwise be wrested away from us if the amendment passes, we would need to do that before November.”

Finalizing a compromise gambling bill between HB 7067 and SB 840 before November also would benefit House and Senate leaders up for re-election, seeking campaign contributions from the gaming industry. In general, the Senate measure supports expanding designated player games, but the House bill declares them illegal. The Senate bill legalizes fantasy sports betting and the House does not. The Senate legislation would “partially decouple” horse and greyhound racetracks from requiring them to offer slots only during live racing events.

Also the Senate bill would allow slots in six counties where voters have approved them, and only at parimutuels that have purchased a live permit from another parimutuel operator elsewhere in the state; this would allow lawmakers to say they’ve reduced gaming in the state. The new gambling venues would be required to guarantee a certain level of revenue to the state. In Broward County, Jeff Soffer, owner of the Fontainebleau Hotel in Miami Beach, would be allowed to move the permit from the Mardi Gras Casino and Racetrack in Hallandale Beach to another location, but only within Broward County and not to his Miami Beach hotel.

Galvano said since this legislative proposal would violate the 2010 Seminole compact, the governor would be given the authority to renegotiate the deal and give the tribe additional games and locations, and the tribe would pay less to the state. Oliva added, “The goal is foremost a contraction” in the total amount of gaming in Florida. He said he’s seeking “a mechanism that is equitable to all.”

The new agreement would guarantee until May 2019 that the tribe would continue to pay a share of gambling revenue to the state. The tribe never threatened to end the payments; however, tribal attorney Barry Richard said that would be within their rights, given a federal judge’s ruling. He said the new deal “was intended as a level of comfort to anybody in the legislature or the governor’s office or anywhere else that had any concerns that the tribe was intending to end the payments, which we never intended to do. So we gave people comfort.”

Seminole Tribe Chairman Marcellus Osceola Jr. said the new pact will give the tribe the certainty it needs to invest more than $2.4 billion in expanding casinos in Tampa and Hollywood and begin “hiring thousands of Floridians to fill jobs in construction and as permanent team members.” He stated, “The gaming compact, which runs through the year 2030, is good for the people of Florida and good for the members of the Seminole Tribe, which intends to continue making revenue sharing payments as spelled out in the agreement.”

One cause for cancelling payments, however, would be if a legislative package included daily fantasy sports. If DFS would qualify as gambling, it would be considered an expansion of online gaming in the state, which the Seminole compact specifies could lead to reducing or stopping gaming revenue payments to the state.

Sports betting would have to be limited to brick-and-mortar locations to avoid violating the current compact. However, the Seminole Tribe could eventually want to open sports books at their Hard Rock-themed venues throughout the state. The tribe is expected to open a sports at its Hard Rock property in Atlantic City.

Caesars Entertainment has announced plans for a 5-Star non-gaming $200 million Caesars Palace Resort along the beach in Puerto Los Cabos, Mexico. It will be the company’s first venture in that country.

Caesars will do the development in concert with the Mexican developer Grupo Questro. Caesars will manage the property in return for licensing and a management fee.

The development is part of the company’s campaign to expand its holdings globally. The week before the company announced that it would be managing two luxury hotels and a beach club in Dubai. Both will be the company’s first non-gaming ventures.

Caesars CEO Mark Frissora said in a statement, “Bringing Caesars Palace to Puerto Los Cabos will represent further progress on our strategy to expand the company’s non-gaming businesses into premiere resort and gateway destinations.”

The non-casino resort will include a luxury hotel with 500 rooms, a 40,000 square foot convention center, spa, concert venue, pools, cabanas, fitness center, three fine dining restaurants and access to two golf courses. It is scheduled to open next year.

Two weeks ago, Caesars announced it was going to open and manage two luxury hotels and a beach club in Dubai. No gaming is planned for this project either.

Bay State Governor Charlie Baker warned against “drawing too many conclusions” over the talks between MGM International and Wynn Resorts of the possible purchase by MGM of the half-completed $2.4 billion casino overlooking the Mystic River.

During an appearance at the State House he told reporters, “There are so many rumors out there right now about what’s going on with Wynn and MGM and Mohegan Sun and the Gaming Commission and all the rest, that I think we should all be careful about drawing too many conclusions about where this is or where it’s going.”

Baker noted that state law bans the same casino company from owning more than one property in the state. That means if MGM buys Boston Harbor, it would have to sell it quickly or divest itself of the $960 million MGM Springfield.

Baker noted that the Massachusetts Gaming Commission has the fate of the Boston Harbor in its hands. It is conducting an investigation of the company to determine if it was complicit in keeping the facts of former owner Steve Wynn’s $7 million settlement with a massage therapist who accused him of rape—as well as other accusations against Wynn—from the commission when it was determining Wynn’s suitability for a gaming license. Wynn has denied all allegations.

During the investigation commission Chairman Steven Crosby has been careful to tell the company’s representatives that it is proceeding “at risk” with the project.

Baker said the commission, and not he, has “far more information about what’s currently going on in those discussions than any of us do.” He expressed confidence that the commission would do the right thing once it wraps up the investigation.

That could come as early as this summer. Meanwhile Wynn is moving towards a June 2019 opening of the mega-casino.

Meantime the commission has declined to say how much it knows about talks between MGM and Wynn. Officials in Springfield are noticeably nervous about the possibility that the casino they have pinned their economic hopes on might suddenly be sold by MGM to allow it to purchase the Boston Harbor.

Connecticut’s two gaming tribes, the Pequots and Mohegans disagree with Attorney General George Jepsen that if sports betting becomes legal it won’t be the exclusive property of the tribes to exploit.

Because the tribes feel so strongly about it, they have threatened to withhold their 25 percent revenue slots sharing that they pay the state in return for exclusivity of casino gaming.

Last week as legislator saw their objection and raised them by proposing an amendment to a proposed bill legalizing the practice to specifically exclude sports betting from what the state considers gambling. That would get around the provision in the compact by redefining what gambling is.

The Mohegans operate the Mohegan Sun and the Mashantucket Pequots operate Foxwoods Resort Casino.

Of course, until the U.S. Supreme Court rules on the legality of a 1992 federal ban on sports betting it remains illegal in all but four states. Until then Professional and Amateur Sports Protection Act (PASPA) remains the law of the land.

The Supremes are reviewing the case of Murphy v NCAA and are expected to issue a ruling before the summer recess.

House Speaker Jo Aresimowitz told the Connecticut Post that he considered the tribal threat to be basically a negotiating tactic. “The tribes have been great partners and I’m sure we will have conversations,” he said.

Despite the tribal protestations, sports betting is not defined as a Class III game under federal law, although it is treated as such in Nevada. Since it is not authorized in any tribal state gaming compact, the argument could be made—and probably will be made—that it is not allowed under any compact.

In Jepsen’s opinion he writes, “Moreover, it is our opinion that if sports betting were to become lawful in Connecticut, the Tribes would not have an exclusive right under the existing Compacts and MOUs to offer it … Sports betting is not listed as an authorized game. By contrast, for example, pari-mutuel betting on horse and dog racing and jai alai games are authorized games. Id. The exclusion of sports betting from the specific list of authorized games is compelling evidence that the Compacts do not presently authorize it …”

Jepsen opines that amendments to the existing compacts are necessary to authorize tribal sports betting.

The tribes, in fighting Jepsen’s view, are hoping to introduce sports betting kiosks at their two casinos. Their argument is that they have a monopoly on “video facsimile” gaming, which they choose to define as including betting kiosks.

Mohegan Attorney General Helga Woods told the Post “If the state authorizes video facsimile gaming, the exclusivity provisions of the compacts would be violated and our obligations to make the slot contributions cease.” Together the two tribal casinos paid about $260 million last year.

Jepsen’s opinion leaves open the slightest possibility that the tribes may be right when he writes, “Although it is our view that sports wagering is not a video facsimile, whether it is a ‘commercial casino game’ is an open question.”

Woods reacted: “While Attorney General Jepsen calls it an ‘open question,’ we believe that sports betting is a ‘commercial casino game’ as that term is used in the (agreement’s) exclusivity provisions.”

While reacting mildly to the tribes’ threats the speaker noted that the state could revoke authorization for slot machines on the reservation but added “No one wants to do that. The tribes would be part of anything we do, we know that.”

House Majority Leader Matt Ritter said he agreed with Aresimowitz about the tribes’ position. “Their argument is a little less credible because when the compact (gaming agreements) was signed, there was no sports gaming in Connecticut. It was never contemplated, the specific words were never used, and here we are 26 years later and they’re raising it for the first time,” he said. “I’ve heard better legal arguments than that one.”

Woods said the tribes would be open to an agreement similar to the one that was reached in 2015 over keno. The compacts were amended so that the games were available statewide as part of the Lottery and on the reservation.

Lori Potter, a spokesman for Pequots said, “We are confident that gaming opportunities such as sports betting can be achieved within the framework of our existing agreements without jeopardizing the continuance of our payments.”

While these discussions continued in the media the legislature’s Judiciary Committee voted 28-5 to move HB 5307, a bill that would direct the state’s consumer protection department to adopt regulations for sports betting. This sends the bill back to the House. The Public Safety and Security Committee had previously approved the bill.

A similar bill is undergoing scrutiny in the Senate: SB 540. It has been approved by the Finance, Bonding and Revenue Committee but so far, no calendar date has been set for a vote.

A legislative analyst projects that, if the state Lottery is put in charge of sports betting revenues would increase as much as $2 million the first year and rise to $4 million by 2020 and as high as $16 million eventually.

In neighboring Rhode Island that state government is already planning on bringing in $23.5 million the first year.

SB 540 includes a “sports betting right and integrity” of 25 percent that sports leagues have asked for, although the House bill does not.

Just weeks after partnering with Gaming and Leisure Properties Inc. to acquire Carl Icahn’s Tropicana Entertainment for $1.85 billion, Reno-based Eldorado Resorts announced it will team with the Cordish Companies of Baltimore to build a mixed-use development in Pompano, Florida, on 223 acres around Eldorado’s Isle Casino Racing. Terms of the deal were not disclosed. Eldorado Resorts acquired the Pompano Beach property as part of its $1.7 billion purchase of Isle of Capri Casinos in 2017.

Officials said the project will include a hotel, residential housing, corporate office center, dining and retail.

Eldorado Resorts Chief Executive Officer Gary Carano said, “The Cordish Companies is one of the leading developers of high profile, mixed use destinations in the country. This development is an incredible opportunity to complement our existing gaming and racing facilities on the site and will become a vibrant destination for visitors to South Florida.”

Cordish Companies Chairman David Cordish said, “Together we are committed to delivering a unique mixed use development that creates thousands of new jobs for the city of Pompano and South Florida, provides new amenities and attractions to the local population and attracts substantial new visitation to the region. I plan personally to spend significant time on the ground working to bring the development to fruition.”

Pompano Beach Mayor Lamar Fisher said city officials “look forward to working closely together with the Cordish Companies and Eldorado Resorts in creating a destination like no other.”

Founded in 1973 by Don Carano, Eldorado Resorts has been acquiring new properties since merging with MTR Gaming Group and going public in 2014. On the same day as the Tropicana deal, the company purchased the Grand Victoria Casino in Elgin, Illinois for $327.5 million. Today Eldorado owns and operates 20 casino properties in 10 states.

Casino-style gambling is coming to Virginia—specifically, to New Kent County, population 22,000—the location of Colonial Downs racetrack and possibly the Pamunkey Indian Tribe’s new casino.

Revolutionary Racing and Peninsula Pacific Gaming recently finalized their purchase of Colonia Downs in New Kent, Virginia from Jacobs Entertainment for “in excess of $20 million,” according to a statement. The deal was made possible following the passage of legislation allowing historic racing machines at the racetrack and up to 10 off-track betting facilities throughout the state. Officials said the racetrack may reopen in 2019.

Larry Lucas, chairman of Chicago-based Revolutionary Racing, said, “We are thrilled to take yet another important step forward in the effort to help revitalize Virginia’s longstanding horse industry. A vibrant and successful Colonial Downs is critical to ensuring that horse racing can thrive and grow in the Commonwealth.”

Virginia Racing Commission Chairman D. G. VanClief Jr. stated, “We’ve moved from what most people thought was impossible to ‘goal achieved’ in about 12 months.” New Kent County Administrator Rodney Hathaway added, “We’re excited about the tourism opportunities. That’s great for the economy.”

Colonial Downs opened in 1997. The last live horserace was run there in 2013, when Jacobs Entertainment voluntarily surrendered its license after failing to reach an agreement about race dates with local horsemen. For years, Jacobs unsuccessfully lobbied the legislature for authorization to offer slot machines or other casino games at the track.

VanClief said the commission will review historical racing regulations in Kentucky and other states where it’s allowed, and hopefully have Virginia’s regulations ready for approval when the new law takes effect in July.

About 12 miles from Colonial Downs in New Kent County, the Pamunkey Indian Tribe announced it may build a $700 million casino resort on 600 acres purchased for $3.05 billion by hedge fund billionaire Jon Yarbrough. The tribe, which has a reservation in King William County, was federally recognized in 2015 after a 33-year effort. Tribal officials said other sites also are being considered.

Wherever the Pamunkey tribe decides to locate its casino, the land must be taken into trust by the federal Bureau of Indian Affairs and the tribe must enter into a gambling compact with the state. Pamunkey Chief Robert Gray noted the New Kent County land was priced right. “Let’s grab this before someone else does because it might prove as a viable location for a casino resort,” he said.

According to the tribe, the casino resort would include a 1,200-room hotel, concert venue and numerous dining options. Gray said the Pamunkeys also hope to acquire land for a health center, tribal offices, housing and a tribal museum. “Our young people need educational and job opportunities and our older tribe members need better access to health care and housing, and this is not something we intend to wait five years for. For us the future is now and we will make every effort and bring whatever resources are necessary to make it happen,” Gray said.

Governor Ralph Northam recently said Virginia needs to be “open-minded” regarding casino-style gambling, particularly since

MGM National Harbor casino opened across the Potomac River in Maryland. A Northam spokesman said the governor is “open to a conversation about keeping that revenue in the commonwealth.”

CBAC Gaming, the partnership group of Caesars Entertainment, Rock Gaming and Caves Valley Partners (CVP) that owns the Horseshoe Casino Baltimore, has made another stride in its effort to transform the district on Warner Street between the casino and the Baltimore Ravens’ M&T Bank Stadium into what it calls an “Entertainment District.”

Last week, CBAC Gaming bought up another Warner Street property, a 41,193-square-foot building on a 1.476-acre property. It is the former home of the Second Chance art and furniture store. The Game sports bar remains open on a one-story section at the south end of the building. CBAC told the SouthBMore.com news site that the company has no immediate plans for the building.

CBAC now owns all but one property on Warner Street between Horseshoe Baltimore and the stadium—a Public Storage facility. Arthur Adler, a partner in CBAC partner CVP, told SouthBMore.com that the operator will keep an eye out for future developments there. “Public Storage is a viable and strong company,” Adler said. “We are going to keep ourselves busy with the properties we acquired, but who knows what the future holds?

“This is a continuation of our efforts to improve the Warner St. corridor. When you leave the stadium and go to the casino, there’s a lot of vacant buildings. We want to activate it.”

MGM Resorts last week announced it had sold the Mandarin Oriental in Las Vegas in the CityCenter project. CityCenter Holdings, LLC, the 50-50 joint venture between MGM Resorts International and Infinity World Development Corp, a subsidiary of Dubai World, will receive $214 million for the luxury hotel. MGM Resorts said it will apply its portion of the proceeds to reducing debt. A buyer was not announced.

CityCenter costs approximately $9.2 billion when it opened in 2009, at the time the most expensive private project ever developed in the United States. Mandarin includes 392 hotel rooms and 227 condos.

The “CityCenter’ moniker has largely been dropped to focus on the Aria Casino Resort. The project also includes the Vdara Condominium hotel with 1,495 suites and the Veer Towers with 669 condos. The former Harman Tower was demolished in 2016 after it was determined that construction problems made it uninhabitable.

The slow slide of horseracing profits over much of the United States could be halted and even reversed if sports betting becomes legal, according to some supporters.

Many eyes in the industry are focused on the U.S. Supreme Court which is expected to issue a ruling soon on the legality of PASPA, which bans sports betting in all but four states.

In 2003 $15.2 billion was wagered on horse races in the U.S. Eleven years later that number had fallen to $10.5 billion. That number has reversed slightly in the last four years.

Some in the industry say repealing PASPA would boost betting on horses, even though that is actually legal in most states. It might also boost interest in Major League Baseball, the NFL and other sports leagues.

In anticipation of such an action by the Supreme Court some existing off-track betting facilities are making subtle changes that would enable them to quickly take advantage of sports betting if the ban is lifted.

New Jersey attorney Dennis Drazin, who is helping a local racetrack, Monmouth Park, set up a sports bar that could be converted into a sportsbook told ESPN “New Jersey has created a chance for racetracks and casinos to be involved in sports betting. I believe that the Supreme Court will rule in our favor, so the racetracks obviously will benefit. We’ll get people to come back to the racetrack — people that will stay because there will probably be in-play wagering also, so people will be engaged.”

Such facilities could off crossover betting between industries. Monmouth is looking at expanding the existing bar into the grandstand.

Drazin commented, “When you go into the grandstand, you can probably put another 5,000 to 7,500 [people]. We think the demand is gonna be that big. We would anticipate that being ready to go within two weeks of the date the Supreme Court rules.”

Kip Levin, chief executive officer of Paddy Power Betfair US & TVG told ESPN “If you look at other markets where [horse] racing is growing — and I think Australia is probably the best example — horse racing in Australia 10 years ago was in a multiyear decline. It was similar to the U.S. in that it was pari-mutuel only. And when online sports betting started to take off, you saw a shift.”

The New York Racing Association believes that lifting the ban will help the industry. David O’Rourke, NYRA vice president and chief revenue officer, told ESPN: “We definitely feel positive in the sense that these products are complementary. Right now, we handle wagers on horse racing as a sporting event. There’s likely betting on other sports going on that’s not in a regulated format, and we feel that if legal sports betting was expanded to include these other sports, it would give us the opportunity to cross-sell.”

Jay Komegay, vice president of the Las Vegas Hotel & Casino SuperBook, agrees. “I can only project that if sports gaming is expanded across the country, some of these new jurisdictions will be at racetracks. I can only see that as a positive for these racetracks, as we know a lot of them are struggling right now.”

There are skeptics, who point out that there is already a sports betting industry, just a black-market version. Whether it will come into the sun is an open question.