Author: Casino Connection Staff

As of November 12, Atlantic County reported 6,012 cases of Covid-19, right behind Gloucester, but ahead of only six other counties. The numbers fall well behind those in populous Essex, Bergen, Hudson and Middlesex counties, all with over 20,000 cases, according to the latest data from Centers for Disease Control and Prevention.

Using cases per 100,000 residents as a yardstick, Atlantic County’s 2,280 also falls well behind most counties in North Jersey. Passaic County reported 4,607 cases per 100,000; Essex, 3,516; Union, 4,059; and Hudson, 3,777.

Yet if you run a restaurant or bar in Atlantic City, whether inside a casino or not, you fall in lock step with Governor Phil Murphy’s latest executive order to shut down at 10 p.m., a move designed to stem the growing number of cases in the state.

Does that seem fair?

Depends on who you ask.

“We do believe there should be a regional approach as many areas of the state don’t have high numbers and this will at least help those businesses,” said President Marilou Halvorsen, of the New Jersey Restaurant & Hospitality Association.

Then again, there is a point to be made that Atlantic County can’t go just by who lives in the county.

“I understand the desire to have a more targeted regional approach. But it would be difficult to make decisions based solely on number of cases per county per capita as visitors come to the city from multiple counties in New Jersey and several other states. The county by county approach is more feasible in non-resort locations where customers are typically locals,” said Jane F. Bokunewicz, coordinator of the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism at Stockton University.

Bokunewicz said the restrictions—which also include a ban on seating at a bar—seem a better solution than a complete shutdown of indoor dining.

Still, the restrictions will clearly impact customer service and limit guests’ ability to enjoy all the amenities Atlantic City has to offer, she said.

“Most casinos in Atlantic City have at least one 24-hour restaurant because casino guests enjoy dining at all hours while they are on vacation or on an overnight stay,” Bokunewicz said.

But even in areas prone to high risk, there are other options, more palatable ones, Halvorsen said. Instead of having no bar seating, put up Plexiglas partitions to achieve the same results without impacting livelihoods more than they do.

Worse still, is the uncertainly from week to week, she said. “Businesses need to plan and forecast.  Having specific data to look for and anticipate is critical,” Halvorsen said.

Food and beverage operations and their employees already feel the effects of the 25 percent indoor capacity limit, Bokunewicz said. Employers can only bring back a certain number of staff.

“Further restrictions could make recovery even more difficult. Requiring restaurants and other food and beverage services to close at 10 p.m. will reduce the number of staff members that can return to work and limit work hours for those employees who have already returned,” Bokunewicz said.

In a briefing in Trenton on November 9, Murphy defended his actions. “The last thing I want to do…is to shut our economy back down, and thankfully, we are not at that point. No one up here wants to take the type of broad and all-encompassing actions like those we had to take in March. We are acting with more precision-based actions on what we are seeing on the ground.”

Murphy’s new edict did not score high marks in South Jersey especially with the one-size-fits-all approach.

“Businesses in South Jersey are hurting. New blanket restrictions are not what we wanted to hear,” Assemblyman Vince Mazzeo, D-Atlantic, posted on Facebook. “These new restrictions were put in place due to soaring North Jersey Covid cases.”

The Chamber of Commerce of Southern New Jersey put out a statement 9 expressing disappointment with Murphy’s refusal to “consider the vast disparities in health metrics throughout different geographical areas of the state.”

John Exadaktilos, owner of Atlantic City’s Ducktown Tavern, said he was “sick to his stomach” following Murphy’s announcement. He already told his 27 employees to file for partial unemployment, according to the Press of Atlantic City.

“Anybody who wears the same shoes I wear is nervous and mentally irate at the decisions because it does not make sense,” he said.

Since July, there have been 251 reported positive cases among those who work at a casino, with more than 60 percent occurring in October, based on data collected by the state Division of Gaming Enforcement. Of the total, 172 involved employees who work directly for a casino hotel, among them executives, housekeepers, bell hops, security personnel, kitchen workers, administrative staff, slot attendants and dealers. Another 79 cases work at various restaurants and bars.

Indoor dining resumed in early September.

While 251 sounds high, the numbers represent little more than 1 percent of the casino workforce, based on September employment figures. The low numbers speak to the success of health and safety policies implemented as part of the reopening plan.

In a statement, the Casino Association of New Jersey, which represents the nine casinos, said such policies are working.

“The industry has taken extraordinary measures to safely welcome back thousands of hardworking employees and valued guests, while also helping to minimize the exposure to Covid-19,” President Steve Callender said in the statement. “We will continue to work to give our guests the exciting experience they have come to expect from our first-class properties.”

And, he said indoor dining outlets remain open except between 10 p.m. and 5 a.m. Room service is available 24/7. So is the casino floor.

“As we see a rise in cases across New Jersey, we are focused on the health and safety of our employees, guests and fellow residents and will continue to work with AtlantiCare, our regional healthcare provider, as well as local and state officials, to refine and update protocols as local and state mandates evolve,” Callender said. “We remain dedicated to complying with, or exceeding, local or state-imposed mandates, restrictions and occupancy limits to try to maintain a healthy environment.”

(Casino) operators have to maintain the highest level of vigilance to stem the spread of this virus, said industry consultant, Daniel Heneghan. “A number this small shouldn’t come as any great surprise.”

Nothing spells optimism for a sunny future than pools, RVs and boats.

On January 26, the Pool & Spa Show returns to the Atlantic City Convention Center. A couple weeks later on February 12, the Atlantic City RV and Camping Show comes back, and two weeks after that, the Progressive Atlantic City Boat Show.

All three are annual winter staples on the convention center calendar, and expect to draw more than 60,000 visitors in total. But the cloud of Covid-19 hangs over these and other trade and public shows on the docket. The pandemic wiped out just about all the shows for November and December, and unless the number of cases diminishes, the same fate could await the January and February calendar.

“While we have a few events remaining on the calendar for 2020, we are closely monitoring the guidelines set forth by the governor and the CDC and will pivot accordingly, if necessary,” said Jessica Kasunich, communications manager for Meet AC. “We are still holding onto our first quarter events and remain hopeful that we will continue to see positive signs in the new year.”

Good riddance to 2020; hello to 2021.

The millions of dollars forfeited in 2020 when the New Jersey Education Association and New Jersey State League of Municipalities scuttled their annual conventions in Atlantic City in favor of virtual events, which do nothing for business in or out of the casinos. Meet AC, the resort’s group sales and marketing organization, lost over $182 million in convention economic activity through October 29.

Casino operators fear the limitations imposed by the state will result in a ripple effect on the hospitality industry, according to the Press of Atlantic City. The lack of meetings exacerbates an already exasperating situation, especially this time of year and especially midweek, when conventions fill otherwise vacant hotel rooms.

“The lack of volume midweek has always presented favorable midweek hotel pricing when compared to Philadelphia and New York City. However, it has become a dire need and more meaningful with business being negatively impacted by Covid-19,” Property President, Joe Lupo, Hard Rock Hotel & Casino Atlantic City said.

Without midweek conventions, you have less hotel rooms occupied, less volume in restaurants, less banquet and catering business, less gaming and less business to the local operators of Atlantic City as well, Lupo said. Limiting the number of participants to 25 per meeting has scratched any bookings at Hard Rock. And without an increase in capacity for meetings in hotels and in the convention center, the dominoes fall.

Bottom line: it is the convention business that keeps the city afloat during the offseason. “This will further cripple the industry and may have a very negative long term impact if a casino does not survive this,” said Michael Busler, Ph.D., Professor of Finance at Stockton University.

State lawmakers, city officials, casino executives and labor union leaders have asked Governor Phil Murphy to ease the restrictions on indoor gatherings. But with an increasing number of Covid cases, it’s unlikely he will fully allow conventions to return to Atlantic City. ”Since the virus tends to grow during the colder weather, allowing conventions anytime soon will probably not happen,” Busler said.

The longer restrictions keep conventions away, the more the long term damage.

“We need meetings and conventions, and an increase to 50 percent (for indoor dining). We feel pretty passionate that we can do this, and we can do this well,” said Steve Callender, president of the Casino Association of New Jersey and regional president of Caesars Entertainment Inc., which operates four of the city’s nine casinos.

Because of their massive size, state-approved health and safety protocols, top of the line ventilation systems, and rigorous regulatory oversight, Atlantic City’s casinos believe they are uniquely equipped to resume holding larger indoor gatherings.

“I think that the state is being as cautious as they can,” McDevitt said. “The only thing that we’ve asked is that they be creative in the way that they deal with this situation. … I think, with all the precautions that are already in place, probably one of the safest places to be is in a ballroom of an Atlantic City casino.”

Bob McDevitt, president of UNITE HERE Local 54, the union that represents some 10,000 casino workers said the return of meetings and conventions and the additional business they bring would mean more hours and more money.

“My best guess is that assuming a vaccine is available by the end of the year, sometime in early spring conventions will be allowed,” Busler said.

The impact of the loss of midweek business is felt in the already struggling casinos and the lack of revenue from casinos erodes the contributions to the Casino Reinvestment Development Authority, which erodes its ability to repay interest and debt on bonds secured to finance projects. Bonds become riskier.

So it isn’t any surprise that Fitch Ratings reduced the CRDA rating. $215 million worth of bonds went from BBB+ to BBB, according to CalvinAyre.com.

While the agency still believes the default risk for the bonds is low, a rating of BBB indicates “adverse business or economic conditions are more likely to impair” the risk, Fitch wrote in a report.

The cancellation of conventions, trade shows and other events reduce the likelihood of recovery in revenues to support the luxury tax bonds Fitch rates, said Doug Offerman, senior director at Fitch. In this case the bonds relate to the luxury tax on rooms, alcoholic beverages and entertainment.

“These are many of the things that make Atlantic City a popular destination and generate the luxury tax,” Offerman said. “If the tax falls below historical levels we won’t see recovery right away. This is a signal to bondholders that we are concerned about the risk related to revenue stream.”

Said Busler, “When the credit rating agencies come up with the bond ratings, their primary concern is the bond issuer’s ability to pay the annual interest charges and to re-pay the debt when it matures. As the issuer’s cash flow position weakens, the risk of default increases and so the bond rating falls.”

The downgrade means that CRDA’s borrowing cost will increase, leaving them with less money to pay for the projects that they usually approve, Busler said.

Gross gaming revenues, a percentage of which funds the CRDA dropped 15.1 percent in September to $190.5 million. The online segment the one bright spot, helped limit the losses, but some are concerned that the switch from physical casino gambling to online gambling will become permanent. “This will place further pressure on the CRDA, as well as on brick-and-mortar casinos in Atlantic City,” Fitch said.

But if the restrictions ease up and planned conventions are held, revenues generated for the luxury tax would show up in a few weeks, Offerman said.

“That would help cushion against the risk we have another economic contraction,” he said.

Despite facing campaigns that repeated all the warnings of the “evils” of gaming, six states and one California city approved expansions of gaming, completing a unanimous win for gaming ballot measures in last week’s elections.

Sports betting was legalized in Louisiana, Maryland and South Dakota and expanded casino gaming in Colorado, Nebraska and Virginia. San Jose, California voter agreed to allow more tables at two local cardrooms.

“As a result of successful ballot measures in six gaming states, more Americans will have access to much needed job opportunities, dedicated tax revenue, and safe, regulated entertainment options closer to home,” said Bill Miller, president and CEO of the American Gaming Association.

“Some form of legal gaming is currently authorized in 44 states, and more than 45 percent of American adults—115 million—live in states with legal, regulated sports betting and the safeguards these markets provide.

“Our industry has a long history of working successfully with federal and state governments that span party lines, and we look forward to our continued collaboration with champions in Washington, DC to shape a favorable policy environment for gaming.

“The AGA will work with the bipartisan Congressional Gaming Caucus in the 117th Congress to ensure policymakers understand our industry’s commitment to responsibility and the positive economic impact we have in communities across the country.

“We also look forward to continuing to work with members on both sides of the aisle to address overly burdensome and unnecessary regulations and taxes, as well as reducing illegal gambling operations that continue to pose a risk to the American public and the economic success of our industry.”

VIRGINIA

By a ratio of nearly two to one, voters overwhelmingly supported referendums in Bristol, Danville, Norfolk and Portsmouth, Virginia, which will allow a commercial casino to be built in each of those cities.

In Danville, with all 17 precincts reporting, 68.7 percent of in-person voters approved the $400 million Caesars Entertainment Inc. casino resort. In Bristol, with all five precincts reporting, 71 percent of voters approved the $400 million Hard Rock casino to be built at the former Bristol Mall. In Norfolk, with 46 of 49 in-person precincts reporting, 65 percent of voters voted approved a $500 million casino. And in Portsmouth, with all 32 in-person precincts reporting, 66.7 percent of voters approved the $300 million casino referendum.

Analysts predict the Bristol casino will create 2,000 jobs and generate $130 million in revenue and $35 million in taxes annually, and attract more than 4 million people to the region. Investors Jim McGlothlin and Clyde Stacy, along with Jim Allen, chairman of Hard Rock International Inc., said in a statement: “We are incredibly grateful for the strong support we have received from the voters of Bristol, Virginia. Today’s referendum vote to bring a Hard Rock Hotel & Casino to Bristol is a vote in favor of more jobs and greater economic opportunity for local residents. This is a win for Bristol and a win for the entire region.”

McGlothlin added, “When Clyde and I launched this idea over two years ago, we called it a ‘moonshot.’ Well, thanks to the voters in Bristol, Virginia, for providing the fuel, with passage of the referendum, to launch us to that successful landing.” The project includes a 2-level casino floor, outdoor entertainment venue with 20,000 capacity, 3,200-seat indoor theater, seven restaurants, four bars, retail shopping, convention and meeting space and a 350-room hotel.

Officials said a temporary casino will open in the former Belk location in the mall in the third or fourth quarter of 2021 in the mall while the property is renovated. The permanent casino is expected to open in late 2022.

In Danville, Caesars Entertainment plans to build a casino resort in the Schoolfield neighborhood. The deal includes a one-time payment of $20 million to the city, including $5 million to purchase the property. An analysis indicated the project will generate at least $190 million in direct revenue and $51 million in tax revenue annually by 2025.

Caesars Chief Executive Officer Tom Reeg said, “Caesars Entertainment thanks the voters of Danville for their support of the referendum that will bring Caesars Virginia to Danville. We look forward to fulfilling the trust the voters have placed in us by bringing 1,300 good-paying jobs, tourism dollars and economic development to the city, and we are incredibly excited to begin construction. We would also like to express our deep gratitude to the many respected business owners and citizens who shared the positive impact this resort will bring to the community with their customers, friends and neighbors. We are pleased to be welcomed into the Danville community and look forward to a long, successful future.”

The Pamunkey Indian Tribe and its partner, Tennessee billionaire Jon Yarbrough, estimated the Norfolk casino will create 1,500 permanent jobs and generate $185 million in annual revenue including $50 million in annual taxes. , according to JLARC projections. The tribe has said it plans to use the casino income to invest in the Norfolk community and its tribal lands in King William County. Officials said 90 percent of the resort jobs will be filled with area residents, including 50 percent from minority groups. The tribe also committed $150,000 to help open a grocery store in the St. Paul’s neighborhood.

Pamunkey Chief Robert Gray said, “We are moved beyond words by the tremendous display of support we’ve received from the Norfolk community. To everyone who advocated on our behalf, shared our message with their friends and neighbors, put up a yard sign, wore a sticker or simply voted yes, we cannot thank you enough. We look forward to working with you to make Norfolk even stronger for decades to come.” The Pamunkey casino resort will feature 3,000 slots and 150 table games, plus a 300-room full-service hotel, steak and seafood restaurant, sports bar and grill, cafe, spa and 2,500-seat entertainment venue.

Chicago-based Rush Street Gaming LLC will operate the Portsmouth casino resort, which is expected to generate $167 million in annual revenue and $45 million in annual gaming taxes, and create 1,380 permanent jobs. Rush Street officials pledged to solicit 5 percent of the equity or $5 million, whichever is greater, from local minority owned businesses or private, accredited investors who are minorities.

Company officials issued a statement saying, “Rush Street Gaming is excited that Portsmouth residents have approved the casino gaming referendum. Rivers Casino Portsmouth will be a proud community partner, a great workplace and a strong economic engine for Portsmouth and Hampton Roads.”

The referendums represent the last step in a process approved by the General Assembly earlier this year to legalize casinos in five economically struggling cities. Richmond is the fifth but officials there chose to wait until 2021 to put a casino referendum on the ballot. The Pamunkey Tribe has expressed interest in building a casino resort there.

Now the casinos’ operators must submit gaming license applications to the Virginia Lottery Board, which will regulate the venues. By law, lottery officials have up to 12 months to review the application,

When the General Assembly legalized commercial casino gambling, it also created a treatment and support fund for problem gambling services. The first $200 million of adjusted gross receipts will be taxed at 6 percent; between $200 million and $400 million at 7 percent; and revenue exceeding $400 million at 8 percent; 0.8 percent of the tax revenue will be directed to the treatment fund according to state law.

MARYLAND

The voters of Maryland last week overwhelmingly approved amending the state constitution to allow sports betting. The vote, which was “yes” on sports betting by a 2-to-1 margin, caps two years of waiting for the state’s proponents of sports betting, after the state legislature failed to vote the measure onto the 2018 election ballot.

The constitutional amendment path was chosen because the state General Assembly was consistently unable to agree on legislation to legalize sports betting, and state officials decided not to add sports betting as a new game under the Maryland Lottery.

Regardless of those facts, the legislature will now be charged with agreeing on the terms of sports betting in Maryland, including how fans would place bets. Wagers could be limited to casino sportsbooks and/or lottery outlets, since the Maryland Lottery and Gaming Control Agency is the regulator of both the lottery and the casinos. The issue of online/mobile sports betting needs to be addressed as well.

Another issue to be resolved is the state’s cut of revenues. Maryland has one of the highest gaming tax rates in the nation, so there no doubt will be discussion of keeping the tax lower on sports betting to compete not only with neighboring jurisdictions like Pennsylvania, the District of Columbia and New Jersey, but also with illegal sportsbooks.

A nonpartisan analysis performed for the legislature assumed a 20 percent tax for sports betting, mirroring the revenue tax on table games at the state’ six casinos. D.C. taxes sports betting at 10 percent, Pennsylvania at 37 percent, New Jersey at 8.5 percent.

The analysis estimated Maryland could generate $18.2 million per year in revenue from retail and mobile sports betting, assuming the 20 percent tax.

The ballot measure linked sports betting proceeds to education funding, asking if sports betting should be authorized “for the primary purpose of raising revenue for education.”

Before the details are hammered out, lawmakers will examine the results of a “disparity study” to determine whether provisions in the enabling legislation should guarantee participation by women and minority groups.

The successful ballot drive was supported by sportsbook vendors, casinos, the horse racing industry and the Washington NFL football team, whose stadium is in Maryland—and whose owner threatened to move the team to D.C., where sports betting is legal and where other Washington teams like the NHL’s Capitals are considering creating stadium-based sportsbooks.

COLORADO

Colorado voters approved Amendment 77 to the state’s constitution in last week’s election, giving residents of Central City, Black Hawk and Cripple Creek the authority to approve or veto new casino games and to raise single-wager limits.

With 84 percent of precincts reporting, 60 percent of Colorado’s voters approved of the amendment. Voters in the three casino host municipalities are expected to vote to expand the available games beyond slots, blackjack, poker, craps and roulette, the only currently allowable games; and to increase the limit on a single wager, set at $100 in 2008. The gaming industry and local politicians had complained that the low limit was pushing gamblers to other jurisdictions where the limits were higher.

“We appreciate that Coloradans supported our town’s right to determine our future so we can improve economic opportunities for the people who live and work here,” said Bruce Brown, Cripple Creek’s former mayor and a proponent of Amendment 77, in an interview with Denver7 TV news. “Things won’t change overnight, but I believe this will help us get back on our feet.”

“Hopefully, a modest boost in revenue will help as these towns rebuild their economies, as well as help students stay in school and graduate,” added former state Senate President Bill Cadman, who also supported the measure.

NEBRASKA

Nebraska voters ended the state’s ban on the gaming industry, approving three measures on November 3 that will allow Ho-Chunk Inc. to $300 million to build casinos at existing racetracks in the state’s largest cities, Omaha and Lincoln that will open next year. They will be followed by a racino at Atokad.

The voters approved the three constitutional amendments—Initiatives 429, 430 and 431—needed to make this happen by about two-thirds. This, despite opposition from Governor Pete Ricketss, who donated $250,000 of his own money to fight the measure.

Ho-Chunk President and CEO Lance Morgan, was a main mover behind Keep Money in Nebraska, backers of the initiative. The other was the Nebraska Horsemen’s Benevolent and Protective Association.

The Winnebago tribe owns one of the racetracks and the WinnaVegas Casino Resort in Iowa, however, Ho Chunk Inc. has no connection with the latter—just the racetrack. Ho Chunk Inc.’s original purpose was to diversify from gaming. By backing the Keep the Money in Nebraska effort, however, it is returning to gaming.

Morgan told the Associated Press, “We want to come out swinging with a high-quality, competitive product. We’re not going to slow down. We’re going to press down on the gas a little bit.”

To accomplish that, Ho-Chunk this week formed WarHorse Gaming LLC to operate the casinos. The Horsemen’s Association will be partnering with Ho-Chunk in operating the racinos.

Morgan told the Sioux City Journal, “This represented a large investment for us. I think it’s going to be a huge deal for Nebraska.” He added, “You don’t get more of a mandate than 65 percent – 70 percent on something. For it to come through, with all the hurdles is a huge deal.”

The amendment allows any of the six racetracks to become racinos. Moreover, new racetracks could be built. Some of the money raised in taxes will provide property tax relief. However, each individual casino will require the nod from state regulators.

Locations for possible racinos include Lincoln, Horsemen’s Park in Omaha, Fonner Park in Grand Island, Ag Park in Columbus, Atokad in South Sioux City, and Hastings.

Many Nebraska residents who voted for the measure said they supported the referendum because of the casino in Council Bluffs, Iowa, which attracts most of its patrons from Nebraska, who cross the Missouri River to reach it. Some estimate that they spend $500 million annually there.

Riverboat casinos in Council Bluffs, proved too much for Omaha’s Ak-Sar-Ben Race Track, which closed in the 1990s.

Proponents have estimated that the state will collect $65 million in taxes from the new industry.

LOUISIANA

Voters in at least 52 of Louisiana’s 64 parishes agreed to legalize wagering in their parishes on sports events. Three parishes, however, voted not to allow gambling in their legal limits. Results in another nine parishes were still being tabulated.

The parishes that approved the sports betting measure cover most of the state’s population and major urban areas. Louisiana already allows casinos, a lottery and video poker and slot machines at racetracks.

While the sports betting measure did well, state lawmakers must still set regulations and tax rates. That process could take up to a year, according to an analysis by the Associated Press.

The fight for sports betting saw more than $2 million in advertising from the political action committee called Louisiana Wins, which was supported by gambling companies. The measure was opposed by many local pastors and the conservative Louisiana Family Forum.

“The people of Louisiana have spoken. Louisiana was missing out on tax revenue from not having legal sports wagering, and now we will be able to raise revenue to support our state’s many needs,” Ryan Berni with Louisiana Wins said in a press statement.

Parishes where voters refused to legalize sports betting include rural Franklin, LaSalle and West Carroll. In nine parishes, the decision remained unclear: Beauregard, Caldwell, Catahoula, Grant, Jackson, Richland, Sabine, Union and Winn, according to the AP.

The state legislature must now determine which sports can be bet on, where the wagers can happen and how the activity will be taxed. The legislature agreed in a two-thirds vote to let parishes decide whether to legalize sports betting.

SOUTH DAKOTA

Deadwood has a storied past, one partly revived with the introduction of casino games. Thanks to the support of voters in South Dakota for Amendment B, sports betting can join the list of approved games.

The South Dakota Attorney General said any approval would also be allowed at on-reservation tribal casinos, according to KELO. The tribal governments that could offer sports betting include the Sisseton-Wahpeton Sioux, Yankton Sioux, Flandreau Santee Sioux, Lower Brule Sioux, Crow Creek Sioux, Rosebud Sioux, Oglala Sioux, Cheyenne River Sioux and Standing Rock Sioux.

Supporters say the amendment would boost tourism and add new tax revenue to help local cities, schools and the state.

CALIFORNIA

Although not an important issue to gaming in general, voters in San Joes approved a measure that would increase taxes on two local cardrooms, but also increase the number of tables they can offer.

The city’s two cardrooms, Bay101 and CasinoMatrix, can now spread 64 games rather than the previous limit, 49 games. The extra 15 tables will cost the casinos an increase in taxes from 15 percent to 16.5 percent. Proponents said it would add another $15 million to city coffers. City council voted 10-1 to place the measure on the ballot and it was approved by more than 70 percent of the voters. It was quietly supported by the cardrooms.

NEW YORK

Although New York had no gaming measures on the ballot, the results could spur some action for online sports betting in the state legislature.

State Senator Joseph Addabbo is still the chief cheerleader for online sports betting. He hopes he can muster enough support from his colleagues to approve a law by the end of the year.

Addabbo, chairman of the Racing, Gaming, and Wagering Committee, said Senate Bill 17D can bring in revenue for worthy programs. The bill failed to receive the required support in the previous legislative session.

Right now, sports betting is only allowed at upstate commercial casinos and tribal gaming properties. New York Governor Andrew Cuomo opposed statewide mobile sports betting, calling it unconstitutional, according to Casino.org.

Addabbo has continued to hammer home the loss of $1 billion a year in revenue as bettors place with wagers online in New Jersey and Pennsylvania.

“We can’t decline opportunities for revenue,” Addabbo said. “We don’t have the luxury.”

The senator also wants the three unassigned New York downstate gaming licenses issued sooner than 2023, the current plan.

The New Jersey Casino Control Commission granted Twin River Worldwide Holdings an interim casino authorization to purchase Bally’s Atlantic City from Caesars on November 5. The move is a preliminary step towards a full license.

The transaction expects to close by the end of this year.

Meanwhile, third-quarter results that beat Wall Street projections and a pending brand change to Bally Corporation put shares of Twin River Casinos Worldwide up 59 cents, or 2.48 percent, last week.

In a Thursday morning statement, Twin River announced net income of $6.7 million, or 22 cents per share, for the three months ended September 30. Despite its properties operating at 50 percent capacity, the profit was down much less than projected compared to net income of $7 million, or 18 cents per share, for the same quarter in 2019. Analysts had projected earnings 13 cents per share for the quarter.

Twin River’s earnings before interest, taxes, depreciation, and amortization, a cash flow measure that excludes one-time costs, rose 6.7 percent to $38 million from $35.6 million.

Twin River announced on October 11 that it will change its company name to Bally Corporation effective November 9, as its acquisition of Bally’s Atlantic City is pending regulatory approvals. The company announced it will rebrand most of its 14 properties in 10 states with the Bally’s name.

In announcing the third-quarter results Twin River CEO George Papanier said results at the Isle of Capri Casino in Kansas City, Missouri, and the Lady Luck in Vicksburg, Mississippi, which Twin River bought for $230 million from Eldorado Resorts in July 2019, drove the EBITDA increase.

“Our disciplined approach has preserved flexibility and moderated financial leverage to levels that have allowed us to have the liquidity to better deal with the kind of uncontrollable events 2020 has dealt us,” Papanier said. “Our first announced sale-leaseback transaction highlights, even during these challenging times, the untapped potential of our predominantly owned real estate portfolio.”

In Atlantic City, Caesars Entertainment Inc. operated the property until the commission agreed to the authorization. VICI Properties owns the land and building. The sale will pay the real estate investment trust $19 million with $6 million heading to Caesars.

When the acquisition concludes, the Wild Wild West Casino and the William Hill Sportsbook will move from Bally’s ownership to Caesars Atlantic City.

To deal with the loss of the William Hill sportsbook, FanDuel will open an in-person sports betting site at Bally’s. At that point, each of the nine casinos will contain retail sportsbooks, a boost to New Jersey’s growing fortunes as a sports betting capital.

FanDuel told The Associated Press the plan is to construct a temporary sportsbook by the end of the year and a permanent venue on the casino floor by next spring.

“They are great partners and we are thrilled to work with them in another exciting, gaming-centric market like Atlantic City,” said George Papanier, Twin River’s president and CEO. “The permanent sportsbook location is going to be one of the many changes we have in store for the Bally’s property.”

The Bally’s sportsbook will be FanDuel’s second in New Jersey, the other being at the Meadowlands Racetrack outside New York.

An investment of $90 million will help make Bally’s “a place to see and be seen” again. The money will refurbish rooms, add suites, bring in new restaurant brands and more gaming options, and renovate meeting and convention space, among other improvements.

“We want to make sure Bally’s is competitive again and return it to its former glory,” said Marc Crisafulli, a Twin River executive vice president. “We’re committed to making it a signature property again at the center of the Boardwalk.”

These days, Bally’s often finishes last among the nine casinos. For the first nine months of this year, Bally’s has won nearly $72 million; in contrast, the city’s top casino, the Borgata, won $373 million over that same period.