Author: Casino Connection Staff

Croupiers at the Montreal Casino in Canada have begun a general strike against Loto-Québec demanding safer working conditions and higher pay for new employees. In Atlantic City, officials of Unite Here Local 54 say the casinos there have some catching up to do in terms of wages. Meanwhile, in Las Vegas, Resorts World has concluded contract negotiations with the Culinary Union, to mutual satisfaction.

The Montreal strike began May 21 with workers staging a demonstration and walking a picket line. The general strike was preceded by two work stoppages the weekend before.

The union represents 521 dealers, who have been working without a contract since March 2020, when Covid shutdowns began. Besides safety and salaries, they are protesting shorter shift schedules that force croupiers to sometimes work six days a week to get more than 30 hours.

Union representative Jean-Pierre Proulx told the Montreal Gazette, “One in two of our employees suffers physical injuries due to the nature of the work, which includes dealing nearly 10,000 cards a day, five to six days a week.”

He added, “After 15 years on the job, that starts to add up,” and leads to repetitive strain injuries such as tendinitis and carpal tunnel syndrome. “We are demanding better management of work shifts and rest breaks to avoid injuries.”

Loto-Québec, which operates all casinos in the province, said the facility will operate as usual, with gaming tables, dining, slot machines and performances operating without interruption. Only the poker lounge is closed.

In a statement, the lottery operator insisted that it provides safe working conditions. It added that croupiers at the Montreal Casino “are asking for 30 minutes of paid break for each hour worked. They would, therefore, spend more than 30 percent of their shift on paid break, which is unusual in the industry.”

Loto-Québec wants to decrease the starting salaries of new employees by 5 percent, from $18.40 an hour to $17.44, which it says is much higher than what is offered in the market. Proulx calls this irresponsible in view of labor shortages and unacceptable.

In Atlantic City, employee contract negotiations were due to expire May 31, the unofficial but very busy start of summer at the shore. If the city’s casinos and the workers’ union negotiate in good faith, the union would likely not take any strike action. But when fast-food restaurants are paying $15 an hour, UNITE HERE officials say the AC casino industry needs to step up its compensation.

They say casinos have come out from under the weight of the pandemic and are profitable as an industry. The casinos counter that April was the first month where in-person revenue mirrored a pre-pandemic month. And even that hopeful sign was questionable. According to the Associated Press, the bump might have been a factor of an extra weekend day and nothing more.

To turn up the heat, the union established a website, actravelalert.org, which provides a list of hotels in the city with contracts in place. The website also includes a large photo of striking union members picketing outside the former Trump Taj Mahal casino in 2016. It was a defining moment in labor relations in Atlantic City, and led billionaire Carl Icahn to close the property, which reopened as a Hard Rock casino resort.

“We’re not threatening anybody,” said Local 54 President Bob McDevitt. “But we’re very serious about leveraging whatever we need to leverage to get our members a good contract.”

Local 54 is in negotiations with Caesars Entertainment, which owns Caesars, Harrah’s, and the Tropicana, and MGM Resorts International, which owns the Borgata. Ocean Casino Resort and Bally’s will agree to the terms reached with the other casinos.

“The reality is there are very few people at Caesars and no one at MGM that has any kind of institutional knowledge of what a conflict can be like here,” McDevitt said.

It’s not all labor strife in the news. In Las Vegas, members of the Culinary Union, the UNITE HERE local, overwhelmingly approved a new contract with Resorts World, the first mega-resort to open on the Strip since the Cosmopolitan in 2010. The Genting Berhad property opened in June 2021 on the site of the former Stardust Casino.

Last Wednesday, Culinary Workers Local 226 announced that 99 percent of its members had ratified a three-year agreement with Resorts World following negotiations that began in December.

In a statement, Culinary Secretary-Treasurer Ted Pappageorge said Resorts World was receptive to a card-check neutrality agreement, in which management takes a hands-off stance as the union worked to recruit employees. He said that position “showed the city and employees that the company respected workers’ right to choose whether to form a union.”

The new contract begins June 1 and covers guest room attendants, cocktail and food servers, porters, bellmen, cooks, bartenders, laundry workers and kitchen workers. The Nevada Independent reported that it includes health care benefits, wage increases, successorship under an ownership change and a sexual harassment policy, among other benefits.

Resorts World President Scott Sibella said in a statement that the agreement “recognizes the value of our employees and their contributions to the property.”

The 53rd edition of the World Series of Poker (WSOP) is underway, in what will be the event’s first foray onto the famous Las Vegas Strip after many years at Binion’s Horseshoe and The Rio. This year’s event will be held at both Bally’s and Paris Las Vegas. Bally’s is being re-branded as a Horseshoe casino, which will bring the tournament full circle since it was founded by Benny Binion at the Horseshoe casino in Downtown Las Vegas, now known as Binion’s.

According to WSOP Vice President Jack Effel, over 1,000 dealers and just under 600 tables will be utilized between the two venues. A definitive player count is a little difficult to determine due to the range of different events, but officials are confident that interest will be high, thanks to the new venues as well as the loosening of Covid travel restrictions.

WSOP Executive Director Ty Stewart told US Bets that “ there’s no reason for us not to break the all-time Main Event record,” which is 8,773 players. The record was set back in 2006.

In fact, WSOP officials are expecting such a turnout that there are already discussions about whether tables will have to run 10-handed instead of the standard nine-hand configuration. Eiffel, however, reiterated that the officials were “going to make every effort to play as many nine-handed events as possible.”

Overall, there are 88 scheduled tournaments, but viewers are probably most familiar with the famous no-limit Main Event, in which the best players in the world play for a literal pile of cash stacked in the middle of the table. Winners also receive the coveted WSOP bracelet, a diamond-studded piece similar to championship rings in team sports. This year’s Main Event is scheduled to take place July 3-16.

Stewart also said at a recent press conference that this year a special Main Event bracelet will be unveiled, but didn’t disclose any details about its design.

The WSOP is buy-in based, and the range of stakes is quite large. Of the 88 total tournaments, 18 have a buy-in of less than $1,000, while 28 are over $10,000. Players range from enthusiasts all the way up to ranked professionals.

In 2016, Joe Morrissey lost the Richmond mayoral race to Levar Stoney. After that, Morrissey didn’t miss a beat. He ran for the state Senate and there he now sits, representing portions of Richmond and nearby Petersburg, according to the Richmond Times-Dispatch.

That backstory could be part of what’s driving the drama over a casino license. A 2020 gaming bill allowed struggling cities to ask their voters to favor a casino resort as a way to jumpstart the regional economy. Five cities qualified: Norfolk, Portsmouth, Bristol, Danville, and the capital, Richmond. Referendums were held in the five cities–only Richmond lost, and by a narrow margin. Casinos are already under construction in the four towns who said yes. The narrow Richmond vote surprised most residents and stunned city and casino leadership.

Now the city wants a second chance with voters.

At least, Richmond officials want a redo. After all, the proposed $565 million casino development had the backing of a partnership led by media conglomerate Urban One and casino operator Peninsula Pacific Entertainment. Backers of the failed Richmond casino outcome blamed white voters in the city’s more affluent areas for the defeat of the referendum.

This is where Morrissey returns to the story–he wants the fifth license to go to Petersburg, not to the do-over city of Richmond. He says the do-over vote smacks down the democratic process, so he introduced a bill to qualify Petersburg. But it failed in committee in February.

Undeterred, Morrissey convinced enough colleagues to add a provision in the budget bill that would bar Richmond from a second vote until 2023.

Not so fast, Joe.

In March, Richmond Circuit Court Judge Reilly Marchant ruled that Richmond does not have to wait until 2023 to ask city voters about a casino, thus overriding the budget provision.

Undeterred again, Morrissey went down another avenue. He had members of the Senate Finance and Appropriations and House Appropriations committees add a provision that required the General Assembly’s Joint Legislative Audit and Review Commission (JLARC) to consider the economic benefits of allowing Petersburg to get one of the casinos.

What does this mean for Richmond? The state may not issue their casino license until the Petersburg study concludes.

“They [Richmond] can have a referendum if they want to, but we just won’t agree to issue the license,” said House Appropriations Chair Barry Knight, one of the sponsors of legislation two years ago that allowed referendums on legalized casino gaming in five cities, including Richmond.

Petersburg Mayor Samuel Parham believes his residents will be behind a casino, which brings new jobs, tax revenue, and economic activity to the region.

“It can transform the City of Petersburg,” Parham said last December.

Relocating Richmond’s casino license to Petersburg could also be a boon for Morrissey’s re-election bid next year. The Times-Dispatch reports that Morrissey’s Senate district is considered a swing seat. And with the Democrats maintaining a narrow two-seat advantage over Republicans in the 40-seat Senate, the party will work hard to keep Morrissey in office.

While Morrissey’s 16th District includes parts of Richmond, the majority of the district’s votes come from south of the capital, in Petersburg and the surrounding towns.

In the first regulatory action since a public-input hearing last August, the Pennsylvania Gaming Control Board has officially capped the public comment period on a mini-casino planned by Ira Lubert and his SC Gaming, LLC, along with Bally’s Corp., for a Category 4 mini-casino at the Nittany Mall in Centre County, near State College and the campus of Pennsylvania State University.

Last August’s hearing, at which residents expressed concerns about the project and local businesses championed it, kicked off the period when public comments were accepted by the board via online, email, fax or mail. Last week, the board set 5 p.m. June 12 as the cutoff for comment.

The next move is for the board to schedule another public hearing, after which the license can officially be granted. Since the board normally uses its monthly meetings for such hearings, the next three possible dates are June 15, July 20 and August 17.

Board spokesman Doug Harbach told the Centre Daily Times that contributing factors to the prolonged comment period were the lingering pandemic and significant background work.

“Many investigations take a good bit of time, sometimes because we have to continue asking for more and better info,” Harbach said. “Remember that we do background investigations for the licensing of many different gaming entities such as manufacturers, suppliers, etc., not just casinos. Many have taken a considerable amount of time.”

Then there’s the pending lawsuit from losing bidder Cordish Companies challenging the award of the license to Lubert, but Harbach told the newspaper the delay had nothing to do with that. Most license awards in the state have been challenged by losing bidders, but none have been successful.

Lubert, a Penn State alumnus and sole official of SG Gaming, won the license at the first auction open to bidders outside of current casino licensees—that’s one of the issues being challenged in the Cordish lawsuit.

Category 4 casinos, limited to 750 slots and 40 table games, were originally available only as satellites to current Category 1 (racino) and Category 2 (stand-alone casino) licensees.

The proposed 94,000-square-foot casino has a $123 million budget. Besides the casino, it would include a sportsbook and a sports-themed restaurant and bar with live entertainment, and a multi-outlet food court.

The plan would use the existing structure of the former Macy’s anchor store in Nittany Mall. Construction would take about a year, and the casino is expected to create 350-400 full-time equivalent jobs.

The Iowa Racing and Gaming Commission (IRGC) recently decided not to take action on a Cedar Rapids investor group‘s application for a Linn County gaming license.

Commissioners said they wanted to see if Governor Kim Reynolds will sign legislation allowing a 2-year moratorium on accepting new license applications. The measure would place a ban on new casino licenses retroactively from June 1, 2022 through July 2024, if it’s signed by Reynolds, who has not indicated where she stands.

Gaming commissioners expressed concern that the legislation brings politics into Iowa’s gaming operations. Commissioner Lance Horbach, a former Republican lawmaker, noted, “My concern is if this is signed, politics is now in Iowa’s gaming industry.” Horbach said the purpose of an independent commission is to keep politics, money and influence away from regulating Iowa casinos.

Commissioner Mark Campbell stated he and other commissioners “were all surprised” by the legislature’s action. He said, “We value the integrity of the process, and I think this commission values that and is going to work extremely hard to maintain that in the process of licensing regulation and how we move forward.”

Commissioner Daryl Olsen also said commissioners were “surprised” and “disappointed” with the moratorium. He said, “I truly believe these decisions should stay at the level of the commission, but our job is to regulate and not legislate, so we will continue to regulate.”

Senate Majority Leader Jack Whitver said the moratorium bill, which passed quickly in the waning hours of the session, succeeded because of “gaming fatigue within the Capitol.” He stated, “People just said, ‘We want a pause and see how this shakes out over the next couple of years. Especially after the sports gaming bill that passed, there’s so many ads, so much talk about gaming, that people said: ‘We just need to put a pause on this.’”

In response, Cedar Rapids Mayor Tiffany O’Donnell sent a letter to Reynolds, asking her to veto the measure. She wrote, “The best course for Iowa is to keep gaming decisions under the purview of the Iowa Racing and Gaming Commission. They are best suited to determine the appropriate path forward for our gaming industry.”

O’Connell noted Whitver commented on Iowa PBS’ “Iowa Press” that lawmakers discussed the moratorium for “probably 20 seconds.” She also noted the legislation does not consider the threat of expanded gambling in Nebraska and the net revenue gain of more than $50 million from a Linn County casino.

“Given that the amended bill was filed and passed both chambers in a matter of hours, the city and commission were unable to share this critically important information with the legislature,” O’Donnell wrote.

The moratorium was rushed through the legislature by state Senator Roby Smith, who along with other Republican lawmakers, have received campaign contributions from Dan Kehl, chief executive officer at Elite Casino Resorts. Elite operates casinos in Riverside and Davenport; Kehl has been a vocal opponent of a Cedar Rapids casino.

Meanwhile, the Cedar Rapids Development Group, consisting of mostly local investors, and the Linn County Gaming Association, the nonprofit that would allocate a portion of gaming revenue to local organizations, released plans for the $250 million Cedar Crossing entertainment complex, located near downtown on the site of the former Cooper’s Mill.

Jonathan Swain, president of Peninsula Pacific Entertainment, the city’s preferred casino operator, previously said the company would remain committed to Cedar Rapids and Linn County even if Reynolds signs the moratorium measure. He said, “Whatever the outcome is, whether there’s a veto or not a veto, we will be there for Linn County. We look forward to eventually bringing this project to fruition and bringing all the benefits to the nonprofits, jobs and all the economic opportunity that Cedar Crossing brings. Whatever happens, we’re ready for it, so let’s go.”

California Governor Gavin Newsom has signed SB 900, which ratifies tribal state gaming compacts for two tribes and exempts certain projects from environmental review.

The bill, authored by Senator Melissa Hurtato, names the Santa Rosa Rancheria Tachi Yokut Tribe and the Middletown Rancheria Band of Pomo Indians. It also exempts certain projects from review by the California Environmental Quality Act (CEQA), which typically involves extensive public review and hearings.

The senator released a statement coinciding with the signing: “For decades the Tachi Yokut Tribe has been a valuable partner in the Kings County Community. The tribe provides scholarship assistance, job training and adult education programs, health and welfare assistance and other social services. I am pleased that the Tachi Yokut Tribe will receive the recognition they deserve.”

The Tachi Yokut tribe issued a statement thanking both governor and senator and adding, “We are pleased to continue our role as a positive economic force in the local community while maintaining the important opportunities and resources for our members, many of which are made possible by our gaming enterprise.”

Chicago’s city council voted 41-7 to approve Bally’s proposal for a $1.7 billion casino-resort at the Tribune Publishing site in River West/ But the vote was preceded by a combative meeting and verbal fisticuffs between Mayor Lori Lightfoot and aldermen.

On May 4, Lightfoot announced her selection of Bally’s over Hard Rock and Rush Street Gaming after creating a special council committee to review “all things” related to the casino. But critics said the committee rarely met and lacked proper time to perform due diligence on the three competitors before Lightfoot picked Bally’s. Now the Illinois Gaming Board must sign off on the project.

Lightfoot’s office said Bally’s revenue estimates were slightly higher than the other two, with a shorter anticipated turnaround time. Analysts project the casino will generate $200 million in tax revenue by its second year of operations to offset the city’s police and fire pension debt; the resort is expected to open in late 2025 or early 2026. A temporary casino at the Medinah Temple, expected to open in summer 2023, is projected to produce $55 million in tax revenue, city officials said.

Observers added Lightfoot likely chose Bally’s since it committed to provide an upfront payment of $40 million to the city and $4 million in annual payments after that. In addition, Bally’s was first to make a deal with labor unions, and the Rhode Island-based company had no competing casinos in the area, officials said.

The deal has been loudly criticized by neighbors and aldermen. Residents expressed concerns over traffic congestion, crime and social problems. But the most intense opposition came from city council members.

Second Ward Alderman Brian Hopkins said the 64-page agreement between Bally’s “has so many holes in it, Swiss cheese would be jealous.” He said Bally’s had an “unfair advantage” and the company’s bid was “by far the least desirable” of the three finalists.

“This is a mistake and the ramifications of this mistake will continue on into the future,” Hopkins said.

Forty-Second Ward Alderman Brendan Reilly argued, “This has gone far too quickly at a breakneck speed. All of us have been put in this pressure-cooker artificially.”

He said the casino must perform “on super steroids” to generate the $200 million in annual revenue Bally’s has promised by 2027. Reilly added, “The funding allocation for security for the permanent and temporary sites is totally insufficient. Whomever came up with those numbers pulled them out of thin air. Why? Because a public safety assessment was never prepared for either location, there are no legitimate estimates for what it will truly cost to secure these locations.”

Reilly also blasted Lightfoot’s last-minute “switcheroo” of the temporary casino to Medinah Temple, which would be exempt from the liquor ban on that block. He argued the move will lead to an increase in River North crime and that the already congested area won’t be able to handle more traffic. Reilly said, “That’s a big deal. When the nightclubs shut down, that’s when all of the nonsense starts.”

But the biggest fireworks prior to the vote took place during a screaming match between Lightfoot and 25th Ward Alderman Byron Sigcho-Lopez.

“I know Mayor Lightfoot does not want to hear the facts, and it’s convenient to ignore the facts,” he stated. “I think as legislators we have the responsibility to review this process, a failed process, in an administration that is more worried about campaign contributions than doing the right thing for the city of Chicago.”

Lightfoot shouted back, “You are a liar. You are a liar, sir. And you are out of order. I will not tolerate you besmirching the hard work of so many people who have worked on this. You may not agree. Then vote no. But I will not sit here silently while you besmirch my reputation and the people that work for me from your pettiness and the things that you’re trying to do that expose this city to liability, sir. You can express your comments and your views. But you will not tear down the integrity of people who are working just as hard as you are. That is absolutely unacceptable.”

At a post-vote press conference, Lightfoot called the casino a “major, major milestone for our city. I’m not patting myself on the back. I’m not doing a victory lap. What I’m saying is that, after 30 years of futility, the men and women of this city will have good-paying jobs that they can build a future on. What I’m also saying is that the taxpayers of this city will not have to be called upon again to shore up our police and fire pensions.”

Soo Hyung Kim, chairman of Rhode Island-based Bally’s, said the venue will showcase “authentic” Chicago.

“We understand what a responsibility it really is and how many promises it allows the city of Chicago to keep to its police and firemen, to the hard-hit workers in the in the trades,” he said. “All of the underrepresented groups of black and brown people that have missed out on economic prosperity. We know all of these promises for all of these opportunities that can be shared with all these groups, and this casino allows for all of it.”

The project will include a gaming floor with 3,400 slots and 173 table games, 500-room hotel, 3,000-seat entertainment center, 1,000-seat outdoor music venue, six restaurants, food hall, three bars, fitness center, sun deck and pool spa, sportsbook and exhibition space including a Chicago sports museum. Bally’s officials said the facility will create 3,000 permanent jobs, including 60 percent minorities. The company also will invest $75 million in infrastructure improvements around the casino site, including synchronized traffic signals and road widening.