Author: Casino Connection Staff

The governments of Latvia, Lithuania and Greece have announced closures dur to the coronavirus pandemic affect casinos and betting shops.

They join shutdowns in Europe including much of the UK as well as the Netherlands, Belgium France, Germany and Italy.

Lithuania’s government announced a temporary lockdown which will see the closure of all catering establishments, restaurants and cafes, as well as entertainment and gaming venues across the nation. The lockdown is scheduled from November 7 to November 29.

The country’s gambling revenue in the first half of 2020 fell by 15.9 percent to €43.8m as a result of lockdown restrictions imposed in the first half of the year.

Greece has also announced a 3-week suspension of land-based gaming as part of another national lockdown, to be imposed from November 7 until November 30. The restrictions will see former OPAP close, as well as its Play-branded gaming halls, as well lotteries and the horseracing facility at Markopoulo.

OPAP will continue to offer its range of products online, but the operator’s revenue is down 34.8% year-on-year for the first half of 2020.

Latvia is imposing a longer lockdown, from November 9 to December 6. The country has seen a 33.2% year-on-year decline for the year.

Meanwhile, bookmakers in the UK have agreed pay additional fees on existing streaming and data deals until December 2 to help prop up the racing industry during the latest pandemic shutdown. The extra revenue from online operators will help racecourses to make up for some of the funding shortfall caused by the widespread closure of betting shops in the UK and Ireland for the next month, according to SBC News.

Cedric Cromwell, longtime chairman of the Mashpee Wampanoag Tribe of Massachusetts was arrested Friday on two federal counts of accepting bribes. The arrest was announced by U.S. Attorney for Massachusetts Andrew E. Lelling and the FBI.

Previously Lelling’s office issued indictments charging Cromwell and David DeQuarttro, owner of Robinson Green Beretta Corp, a Rhode Island architectural firm the tribe used to design its $1 billion First Light casino resort in Taunton—which was never built—on two counts of accepting or paying bribes and one count of conspiring to commit bribery.

The U.S. Attorney told reporters, “The charges allege that Mr. Cromwell violated the trust he owed the Mashpee Wampanoag Tribe by committing extortion, accepting bribes and otherwise abusing his position.” Lelling added, “Many American Indians face a host of difficult financial and social issues. They require – and deserve – real leadership. But it appears that Cromwell’s priority was not to serve his people, but to line his own pockets. We will continue to aggressively investigate public corruption, including by those who purport to serve our American Indian tribes.”

For three years, DeQuarttro paid Cromwell money and benefits totally more than $57,000, including $44,000 in personal checks written to CM International Consulting LLC, which was owned by a personal friend of Cromwell. That company then paid checks to Cromwell’ shell company One Nation Development. In return the tribe paid the architecture firm nearly $5 million.

Allegedly Cromwell spent all the bribe money on personal expenses, including payments to a mistress. He also received a free gym membership and free hotel stays.

Both men pleaded not guilty and were released on $25,000 prior to a planned December arraignment.

Cromwell became chairman of the 3,000-member tribe in 2009. The tribe is one of the earliest tribes that British colonists encountered when they settled the New World. The Mashpees are considered to be the tribe that greeted the Pilgrims shortly after they landed at Plymouth in 1620. It achieved federal recognition in 2007.

Cromwell has been much in the news in 2020, primarily because the Department of the Interior announced that it was removing the tribe’s reservation of more than 300 acres in Taunton and Martha’s Vineyard from trust. The land had previously been put in trust by the previous administration and had started building a casino before it was halted by an adverse ruling of a federal judge.

The action by the department to remove the land from trust was halted for the moment by a ruling of different federal judge.

A bill that would put the Mashpee land into trust by Act of Congress has been passed by the House of Representatives but stalled in the Senate after President Trump publicly opposed the idea.

A few days before Cromwell had been part of an event assembled by the National Congress of American Indians to give input on Indian issues to the incoming Biden administration.

Members of the tribal council tried on the Monday after Cromwell was arrested to remove him as chairman, but the motion was defeated by a vote of 4-3.

A hint of what was to come occurred three months ago after the U.S. Attorney subpoenaed financial documents from the Mashpee Wampanoag Tribal Gaming Authority three times in the last few months. Besides being chairman of the tribe, Cromwell also heads the Authority.

The Grand Jury also sought information related to the 2013 and 2017 elections of Cromwell. The tribal Treasurer Gordon Harris was also subpoenaed about a year ago.

A new report from the American Gaming Association shows a significant rebound in U.S. commercial gaming revenues for the third quarter of 2020, with a huge jump over Covid-restricted Q2 revenues and inching closer to pre-pandemic levels.

U.S. commercial gaming revenue for Q3 2020 totaled $9.04 billion, reaching 81 percent of the industry’s pre-Covid levels in Q3 2019, according to the AGA’s Commercial Gaming Revenue Tracker. Q3 revenue is up 294 percent from the historic lows of Q2, caused by pandemic-driven, mandatory closures.

Covid-19 health and safety measures, including social distancing and capacity restrictions, have contributed to the gaming industry’s recovery lagging the country’s broader economic recovery. Gaming revenue is down 36.5 percent year-over-year (YoY) in the first nine months of 2020, compared to the U.S. GDP’s 3 percent decline in the same period.

“Our industry continues to prioritize the health and safety of our employees, customers, and communities above all else,” said Bill Miller, AGA president and CEO. “While these quarterly results are promising, the reality is a full recovery is dependent on continued public health measures to control prevalence rates.

“As state and local officials respond to current Covid-19 outbreaks with additional restrictions, urgent congressional action to provide Covid-19 relief is even more crucial. Gaming employees and communities depend on it,” Miller added.

More than 100 casinos reopened between July and September with 902 commercial and tribal casinos (90.8 percent of total) operational by the end of the third quarter, compared to 800 (80.8 percent of total) at the start of July.

Many states that saw encouraging gaming revenue growth in Q2 continued the positive trend in Q3 despite continued capacity restraints. Five states—Arkansas (+.3 percent), Mississippi (2.8 percent), Ohio (+7.5 percent), Pennsylvania (+3.8 percent), and South Dakota (+6.1 percent)—outperformed their Q3 2019 revenue figures. Looking only at the most recent month, September, the recovery trends continue with both Maryland (+1 percent) and New Jersey (+6.5 percent) also returning to YoY gaming revenue growth.

While nationwide slot and table game revenue remained down compared to Q3 2019, sports betting revenue bounced back in Q3 2020, bolstered by an unusually crowded sports calendar and strong consumer interest in new legal betting markets in Colorado, Illinois, Michigan and Washington, D.C. Americans legally wagered a record $5.95 billion in Q3, generating $352.3 million in gaming revenue—the second-highest ever quarterly total.

iGaming continued to grow in Q3 2020, due, in part, to West Virginia launching in July. iGaming generated $435 million in Q3, up 8 percent from Q2 and 232 percent from Q3 2019.

The report also shows that smoke-free casinos in Arkansas, Maryland, New Jersey, Pennsylvania, Ohio and South Dakota have experienced year-on-year revenue increases, prompting advocacy group American Nonsmokers’ Rights to release a statement urging more casinos to ban smoking.

“AGA’s report shows that casinos with smoke-free policies have experienced year-over-year revenue increases or remained relatively stable, a remarkable feat given unprecedented capacity restrictions due to Covid-19,” said Bronson Frick, director of advocacy of Americans Nonsmokers’ Rights. “Most importantly, casinos with 100 percent smoke-free policies, such as in New Jersey and Pennsylvania, have kept nearly all of their employees Covid-free.

“It makes no sense to allow guests to remove their mask and blow secondhand smoke along with droplets carrying a potentially life-threatening disease into shared indoor air. We urge gaming operators everywhere to adopt 100 percent smoke-free indoor policies to protect the health of their employees and guests, nearly 75 percent of whom prefer smoke-free casinos.”

Most casino jurisdictions have banned smoking on casino floors to prevent the spread of Covid-19, with the notable exception of Nevada.

Back in May and June, when Connecticut’s two gaming tribes were very publicly defying that state’s governor in reopening, California was acting out a similar tableau, but with dozens of tribal casinos considering ignoring Governor Gavin Newsom’s wishes about the safety of reopening.

One of these was Harrah’s Resort Southern California, whose general manager, Darrell Pilant, quit his job rather than reopen the resort in May, which he argued was unsafe. He later sued for wrongful termination—and is pushing back at Caesars Entertainment’s attempt to move the case to federal court—which would probably quash the suit.

Pilant’s “whistleblower” suit was filed in the Superior Court of the State of California, County of San Diego in September. In October Caesars Enterprise Services LLC, a subsidiary of Caesars Entertainment Inc., filed to remove the suit to the federal United States District Court for the Southern District of California.

If this succeeds, Pilant’s lawsuit could end up dead in the water, or so he argues. He would not be able to sue in federal court since he was not an employee of the Rincon Band of Luiseño Indians, which owns Harrah’s, he says.

Caesars, in its motion to move the case, argues that because the tribe owns the casino resort it must be included as a defendant since sovereign tribes may not be sued in state court. It calls the tribe an “indispensable party” to the lawsuit since it was the tribe’s decision to reopen rather than Caesars’.

Pilant retorts that he would be unable to pursue his case if it is moved, because he can’t sue a sovereign tribe.

Pilant’s wrongful termination complaint alleges violation of Cal. Labor Code§ 6310, violation of Cal. Labor Code§ 1102.1 and breach of written employment agreement.

He claims the Rincon tribe told him Governor Gavin Newsom

was “on board” with reopening. He later learned that was not true and he refused to reopen the casino. He was pressured to resign, an action he calls

wrongful termination.

In his filing, Pilant quotes from Governor Newsom’s May 15, 2020 letter: “[The plan to reopen casinos] deeply concerns me, and I urge tribal governments to reconsider…. I cannot stress enough that the risk of COVID-19 transmission remains a serious threat for all Californians. … [It] is in the best interest of public health to move toward a reopening in concert [with California’s phased reopening plan].”

On May 18 Pilant shared the letter with Caesars’s executives N. Lynne Hughes (VP Legal Affairs and Chief Legal Officer), Robert Livingston (Regional President and Pilant’s immediate supervisor} and Tom Jenkin (Global President}. Livingston later replaced Pilant as general manager.

Pilant, “expressed his health and safety concerns about reopening in contravention of advice and counsel of Governor Newsom. Later that evening, Mr. Pilant had a telephone call with Ms. Hughes and Mr. Livingston and was told that Caesars was going to proceed with the reopening on May 22, 2020,” according to Pilant’s filing.

Livingston replied to Pilant with an email later that night, CC’ing Hughes and Jenkin: “Did anyone else open today besides Viejas and Jamul? I feel better about opening in defiance of the Governor with others open.”

The next day: “Mr. Pilant telephoned Mr. Livingston and again reiterated his concerns that reopening the casino posed a serious health and safety risk. Mr. Pilant told Mr. Livingston that in good conscience he could not carry out the reopening and he felt he had no choice but to resign. Mr. Livingston confirmed that he knew Caesars’ plan to reopen was contrary to the advice of the Governor and he never once disagreed with Mr. Pilant regarding his concerns about employee and public health and safety. Nevertheless, Mr. Livingston urged Mr. Pilant to stay on and carry out the reopening.”

Caesars’ motion to remove the case to federal jurisdiction is based on two grounds:

1) federal question jurisdiction, pursuant to 28 U.S.C. sections 1331 and 1441(a), under the Indian Gaming Regulatory Act (“IGRA,” 25 U.S.C. §2701, et seq.); and (2) diversity of citizenship, pursuant to 28 U.S.C. sections 1332(a), 1441(b), 13 and 1446(b) as amended by the Federal Courts Jurisdiction and Venue Clarification Act of 2011, Pub. L. No. 112-63, 125 Stat. 758 (2011).

It argues that federal law states that “district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” It also argues “that Article I Section 8 of the United States Constitution, which provides that the real party-in-interest is a federally-recognized Indian Tribe and, thus, a domestic sovereign nation.”

It notes that the casino is on the Rincon Reservation, which

It points out that the casino is located on the Rincon Reservation, and “is wholly owned and controlled by the Rincon Band pursuant to IGRA, which establishes the regulatory framework that governs Indian gaming, as well as under government-to-government agreements between the Rincon Band and the State of California and, subsequently, with the United States Department of the Interior. It also “exercises ultimate authority and control over civil regulatory matters within the Rincon Reservation, including operations and decisions concerning the business, maintenance, and management of the Rincon Casino.”

Caesars maintains that it can’t be sued about reopening the casino without including the tribe, which actually made the decision: “On May 22, 2020, consistent with the Tribal Council’s directive to reopen essential businesses, the Rincon Casino reopened along with at least 6 other local tribal casinos. Specially Appearing Defendants CES and CEI had no role whatsoever in the decision to reopen the Rincon Casino when it reopened on May 22, 2020.”

Pilant is seeking redress because he disagreed with the tribe’s action reopening the casino, says the filing.

Pilant’s lawyers argue against dismissing the case because “Caesars waived its arguments because it entered into an employment agreement with Mr. Pilant expressly providing that Mr. Pilant has a right to pursue employment law claims against Caesars (not the tribe) arising out of his employment at Harrah’s.”

They write: “Caesars has not met its burden of providing that disposing of the action in the tribe’s absence would leave Caesars subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations.” They add, “Plaintiff would have no remedy, much less an adequate remedy, if the case is dismissed.”

Pilant’s attorneys argue, “This is a case between an individual employee (who worked and resided in San Diego County), and a multi-billion corporation . . . It is not s dispute between Plaintiff and the Rincon Band.”

All the causes for action are made under state law. “The employment law claims are properly brought only against Caesars, which undeniably was Mr. Pilant’s employer. Mr. Pilant was not employed by the tribe. Mr. Pilant had no contract with the tribe. Mr. Pilant’s only employment relationship and only contractual relationship was with Caesars.”

Besides trying to deprive Pilant of his day in court. “The decision that is at the crux of this case is Caesars’ decision to send its own workforce back into the workplace that was unsafe and unhealthy.”

The attorneys declare, “Not only is the tribe not a proper party to this action (much less an indispensable party), but Mr. Pilant could not sue the Rincon Band even if the tribe were his employer.”

The rebranding of the former Hard Rock Hotel in Las Vegas to Virgin Hotels Las Vegas, is more than a mere cosmetic makeover. More substantive changes are the works as the new owner prepares to open January 15. It’s already started to accept reservations.

It is a drastic renovation that rivals any that have taken place heretofore in Las Vegas. Few sections of the property have been untouched, such as the addition of a five acre pool and entertainment complex, the “backyard.”

Richard “Boz” Bosworth, president and chief executive officer of JC Hospitality, owner of Virgin Las Vegas, told the Las Vegas Sun, “I think what makes us different from some of the other transformations and renovations is that it looks so much different. Bars have been moved, sightlines are different, our eco-systems and the way you can move around the property have changed.”

He added, “Out on our pool deck, where the Rehab pool party was, there’s no pool. It’s our event lawn and it has fire pits, birdcage seating, shrubbery and block walls, and it’s an area where you can have entertainment such as a concert in a Hollywood Bowl-type of experience, or you can put up a tent and have a wedding and get married there.”

It will enhance a pool that was always used for parties and concerts, but will be larger and will link to nearby restaurants via the Promenade. The restaurants along this pathway will include Olives, Casa Calavera, Kassi Beach Club and the Money Baby sports bar.

Bosworth believes the resort pool was never used to its full potential, and so, “it’s been completely reimagined with daybeds and cabanas to really become an entertainment and dining environment.” He added, “It’s a place to go as a hotel guest or to dine while surrounded by palm trees and beautiful landscaping, and your server can bring you your food from any number of restaurants. We think it’s truly going to be an experience much different than what you see in any current resort.”

This law space, when can be used for all sorts of events, will connect to the Manor, an indoor event space.

The resorts postponed its original November 2020, and has had the advantage of watching how other properties have reacted to the Covid pandemic, and has been able to pick and choose from among them. It is, said Bosworth, “the benefit of sitting on the sidelines watching best practices and seeing what works and what does not work.” He added, “We’re very conscious of where we are from a COVID perspective and like everyone else, we’re hoping science catches up quickly and our industry normalizes as soon as possible,” he told the Sun.

This will involve some apparent contradictions, such as creating intimate-seeming events that are also Covid-safe.

Reservations are being taken at the resort’s more than 1,500 rooms, which each include a dressing room and lounge, ergonomic beds, high-def televisions, reading nooks and even rooms devoted to our canine friends.

The hotel will have three towers, Opal, Canyon and the Ruby Tower, which will be nothing but suites.

The impending opening of Virgin Hotels Las Vegas, may have prompted a local developer, Michael Ochoa, to buy 12.1 acres almost adjacent to the resort for $12.5 million from Chinese investors.

But that’s just one of a number of real estate transaction east of the Strip that were beginning to peak before the arrival of Covid-19 let the air out of tourism, at least for several months.

Ochoa’s company, Ochoa Development Corp., told CDC Gaming Reports, that the group wanted to assemble a “really cool project,” that would be built within the two to three years but wouldn’t elaborate.

If so, Ochoa has gotten the parcel at bargain basement prices, since it was on the market for $47 million in 2017. One disadvantage of the property is that it has limited frontage on Paradise Road.

In Virginia, referendums to allow casinos in Bristol, Danville, Norfolk and Portsmouth all were approved by voters in the November 3 election. Local electoral boards have certified the results and now each city and its preferred casino partner may move forward.

A simple majority was required for passage. Bristol, Danville and Portsmouth approved the measures with two-thirds of the vote and Norfolk came close. The official results are as follows:

• Bristol (Hard Rock Casino and Resort Bristol)
Yes: 5,490 (71.1 percent)
No: 2,227 (28.9 percent)

• Danville (Caesars Casino Resort Danville)
Yes: 13,151 (68.7 percent)
No: 5,983 (31.3 percent)

• Norfolk (Pamunkey Casino Resort Norfolk)
Yes: 57,741 (65.1 percent)
No: 31,015 (34.9 percent)

• Portsmouth (Rivers Portsmouth Casino Resort)
Yes: 29,169 (66.7 percent)
No: 14,530 (33.3 percent)

Under Virginia law, this is the next step: “If a majority of those voting in a referendum held pursuant to § 58.1-4123 vote in the affirmative, the eligible host city shall certify its preferred casino gaming operator and submit such certification to the Department within 30 days.”

The Virginia Lottery, which will oversee casino gambling, has until April 7, 2021 to draft regulations. Once those are published, casino operators can formally apply for a license. The lottery then will have up to 12 months to review the application, conduct background and financial checks and issue a decision. Virginia Lottery Director Kevin Hall said the four new casinos could open in spring 2022. “While that feels like a long way off, it is well within the timelines of construction for each of the casinos,” he said.

However, before any casino opens, sports betting could launch early next year, Hall said. He said the lottery has received 25 sports betting applications for its 12 available licenses. “There is a high level of interest from national and international operators. We are now reviewing the applications and will do suitability and background checks,” he said. Applicants include BetMGM, DraftKings, FanDuel, PointsBet and WynnBet. Hard Rock (Bristol), Rush Street (Portsmouth), and William Hill/Caesars (Danville) already are partnered with casinos. In Norfolk, the Pamunkey Tribe has not yet announced a gaming operator.

Under the law, the deadline for sports betting applications was October 31. The lottery has 90 days from then to approve the applications. That’s January 29, one week before Super Bowl LV set for February 7 in Tampa.

As a result, if the lottery uses the full 90 days for review, the earliest sports wagers could be placed would be late January or early February.

FanDuel, operator of wagering and casino gambling platforms, announced it will make a multi-million-dollar investment in Fairmount Park Racetrack in Collinsville, Illinois, which will be rebranded as FanDuel Sportsbook and Horse Racing. The 95-year-old venue will undergo “a full revitalization,” according to FanDuel Group Chief Executive Officer Matt King. He said, “This is the first time we’ve put our brand on the overall track. We’re investing broadly to revitalize the track itself. Fairmount is an iconic state landmark which we plan to modernize, bringing innovative technology and entertainment offerings only FanDuel can deliver.” No dollar amount was given for the renovations.

FanDuel has worked with Fairmount for several years to offer track betting. The new retail sportsbook will take wagers on football, baseball and other non-racetrack sports. Pending Illinois Gaming Board approval, FanDuel Group will transfer its sports betting license from Par-A-Dice Casino in Peoria to the Collinsville venue.

Fairmount Park General Manager Melissa Helton said, “Fairmount Park is excited to extend our partnership with FanDuel Group to now include their sports gaming platform. This partnership will allow the park to remain an important economic driver for the surrounding communities.”

FanDuel Group and its popular horse racetrack wagering and television service TVG also pledged to fund Fairmount Park’s signature event, the $250,000 St. Louis Derby, which has not been run since 2006 due to finances.

The Collinsville track is one of three horseracing venues operating in Illinois and the only one outside the Chicago metro area. Opened in 1925, it features thoroughbred flat racing on a 1-mile dirt oval. The Ogden Corporation owned it for more than 30 years and sold it in 2000 in William Stiritz, then-chairman of Ralston Purina. The track offered racing this year but without fans due to Covid-19.

FanDuel officials said Fairmount Park has been approved to host 53 live racing days in 2021, plus daily simulcast wagering on tracks throughout the U.S. The venue offers simulcast wagering at its four off-track betting facilities in Alton, Carbondale, Springfield and Sauget.