Vol. 7 • No. 49 • December 28, 2009, NUTSHELL
NEWS & NOTES
Minnesota's gaming tribes have directed the lion's share of political contributions in the last decade to Democratic-Farm-Labor candidates in the state. Since 1998 tribal casinos have spent more than $4 million in political contributions. Republicans have received much less of this political largesse, although they do get some. Gambling spending may be key in next year's elections, when racetracks will have an initiative on the ballot that would allow them to deploy slot machines. A grassroots political organization has formed to push this initiative, and has recruited retiring Senate Minority Leader Dick Day as its leader. The organization is said to have raised $250,000 to push the issue. Tribal gaming interests oppose these efforts. • The Chickasaw Nation has been granted a license to operate Remington Park racetrack by the Oklahoma Horse Racing Commission. The nation, through a subsidiary, recently purchased the track from the bankrupt Magna Entertainment Corp. for $80.25 million. The sale becomes final at the end of 2009. The tribe expects to spend $12 million in the next few months. New machines will soon be added, bringing the total slot machines to 750. • The Ak-Chin Indian Community last week extended by five years Harrah's Entertainment Inc.'s management contract to run the tribe's casino resort in Maricopa, Arizona. Harrah's has run the Ak-Chin casino hotel for the past 15 years. • As expected, Pennsylvania table game legislation will wait until at least January 6 for resolution, although there were rumors of a deal last week. State House leaders did not like changes to the table-game bill made by the Senate, including a measure to create a 15th license, which would add a third 500-machine resort casino; and a tax rate of 14 percent that House Democrats feel is too low. The House adjourned without a vote on the bill. Governor Ed Rendell has threatened layoffs of state employees if the measure, which would provide $200 million to the state budget from taxes on table games, is not on his desk by January 8. • U.S. Bankruptcy Judge A. Jay Cristol has denied Fontainebleau Las Vegas' request to award $1 million in bonuses to the bankrupt resort's key employees. Cristol said the court "does not believe the payments do serve the interests of the creditors in this case," according to the Las Vegas Sun. · Minnesota's Upper Sioux Community may be planning a multi-million dollar renovation of its Prairie's Edge Casino Resort, if the rumors are true. Tribal Chair Kevin Jensvold recently told the Advocate Tribune that the tribe is currently considering some enhancements to Prairie's Edge, but would not confirm a timetable. • The closed Silver Club casino in Sparks, Nevada opened its doors for eight hours last Tuesday to keep its gaming license active. Nevada requires casinos operate for a minimum of eight hours each quarter to maintain their licenses. • Lawyers for the Pennsylvania Gaming Control Board reportedly are advising the board against granting an extension to Foxwoods Philadelphia to submit architectural renderings of its property. Last August, the board gave Foxwoods until May 2011 to have slots up and running at its waterfront location, and gave the developer a December 1 deadline to submit plans, which Foxwoods missed. In a recommendation for denial of the extension, board counsel Dale Miller wrote that Foxwoods had offered no facts supporting its request. The state Senate wrote an extension for Foxwoods into the table-game legislation sent to the state House, but that is one of several provisions unlikely to survive a compromise bill. • Florida regulators last month denied an application from Miami Dade County for a parimutuel license that would have allowed slot machines at Miami International Airport. The county hoped revenue from slots would help fund airport operations, but the Department of Business Professional Regulation cited statutes that deny any government, local or county, from receiving a parimutuel permit. • The U.S. Coast Guard has cleared the Palm Beach Princess casino ship to resume twice-daily gambling cruises out of Palm Beach, Florida, even though the 420-foot ship's main engine is dead. The Coast Guard cited safety concerns when it ordered the Princess to stop sailing on December 8. The company said it is shopping for a ship to replace the 46-year-old Princess, which does not meet new international maritime safety standards that will take effect in October 2010. • With its acquisition of Resorts Atlantic City, Credit Suisse AG has become the second European bank to assume control of a U.S. gaming resort since the fall of 2008. It joins Deutsche Bank AG, which is paying to complete and open the $3.9 billion Cosmopolitan Resort & Casino in Las Vegas. • A federal judge has ruled that Keystone Development Partners, a group including casino mogul Donald Trump and Trump Entertainment Resorts, can proceed with a lawsuit against the Pennsylvania Gaming Control Board over rejection of its application for the TrumpStreet Casino in Philadelphia. The Trump group is alleging that the board discriminated against the project because of its ties to Atlantic City when the panel awarded the two Philadelphia slot licenses to SugarHouse and Foxwoods. The partnership, which planned a casino at the former Budd industrial site in the city's Nicetown section, also includes former Philadelphia 76ers president Pat Croce. The lawsuit, which seeks unspecified financial damages, claims the gaming board unfairly favored in-state developers and excluded any company with ties to Atlantic City. The board and the owners of winning bidder SugarHouse had moved for dismissal of the case. • Standard & Poors has downgraded the credit rating of Pittsburgh's Rivers Casino for the second time since September. Citing week operating performance and concerns that the casino may not have the money to meet its debt obligations, Rivers was dropped two notches, from B-minus to CCC. • Philadelphia Mayor Michael Nutter said last week he will oppose a provision in the table-game bill as passed by the state Senate that involves distribution of the 2 percent local share of taxes. The Senate-passed table bill requires half of the local share to go to grants for nonprofit agencies, for education, child welfare, health care and other services. Nutter and other city leaders want the money to flow directly to the city's general fund.




