With the financial difficulties that gaming has endured over the past several years, it’s somewhat surprising to see so much activity in the sector. From the Asian boom to the U.S. bust, the particular circumstances of each jurisdiction and industry segment has responded in kind. With a lackluster, but teasing, 2011 behind us, the new year represents what the industry may have been eyeing since the great collapse in 2007-08. Most jurisdictions have at least hit bottom and some have started a recovery.

Most interesting, however, are bold new jurisdictions that hope to use gaming to spark economic recovery. Massachusetts, Florida, Ohio and other states are looking to bring commercial casinos in to create jobs, infrastructure improvements and tax revenues.

Some of that commercial expansion could come at the expense of tribal gaming in states where it has a monopoly or a large piece of the gaming pie. New York, Washington, Arizona, Oregon, Florida and other states are all considering expansion, putting the gaming tribes in a difficult position, with little leverage and little to gain.

Online gaming hits another speed bump in the U.S. but continues its expansion in other areas of the world. But exactly what will be its impact on land-based casinos? That is still unknown.

All in all, 2012 will be an interesting year with many opportunities and challenges for the gaming industry. Strap in and hold on tight. The fun is just beginning.

ASIAN EXPANSION
Every few years, excitement ramps up about possible legalization in—take your choice 1) Japan, 2) Taiwan 3) Korea, 4) Thailand. And every few years something happens to quash that excitement. Maybe 2012 will be different, but don’t count on it. Yes, Japan is moving at a glacial pace. Yes, South Korea is considering integrated resorts. Yes, Taiwan has already legalized gaming on its outlying islands, but so for, no progress. And yes, Thailand has new leaders who may consider economic development.

But in reality, none of these opportunities are for sure or imminent. So we go back to square one and allow the policies to be development the legislation to be crafted, the bidding process to be outlined and casino actually open. And it won’t be in 2012.

The one exception is Vietnam, where the government is squarely behind the integrated resort idea. Asian Coast Development is proceeding with its Ho Tram Strip project, with MGM Grand Ho Tram scheduled to actually open in 2013. So maybe the rest of Asia won’t be too far behind.

ATLANTIC CITY
Will this be the year that Atlantic City emerges from a five-year revenue slump? It may be too soon to tell, but signs of positive growth have gaming analysts optimistic. Through legislation enacted in February, Governor Christie has streamlined New Jersey’s regulatory process, saving the casinos millions of dollars. His efforts have also lead to Revel casino securing its finance to complete the property, due to open in spring 2012.

Several casinos have begun producing positive cash flow with a reliance on non-gaming amenities. Others are still struggling, but revenues seem to have it bottom, if not rebounded as yet.

The biggest wild card in Atlantic City is the opening of Revel casino in May. Many believe the 2.4 billion megaresort will rejuvenate the Atlantic City casino industry. The property’s showcase of non-gaming attractions should broaden the appeal and be an example for future development at the shore.

And the establishment in 2011 of the Tourism District with services and safety controlled by the Casino Reinvestment Development Authority should help speed a cleanup and improve perceptions. A $30 million marketing fund established by the casinos and administered by the Atlantic City Alliance is aimed at portraying the city as a regional destination resort.

CALIFORNIA
Expect to see the issue of internet gaming rear its head again next year in the California legislature as lawmakers will again bring the issue back for more hearings and debate. It is possible that the proponents of internet gaming, which include several Indian tribes and card clubs, will strike a deal with the gaming tribes who have so far opposed them.

In addition, several efforts by landless tribes or tribes with land that is unsuitable for casinos will continue to generate controversy as they try to get land that is at a distance from their reservations put into federal trust. Senator Dianne Feinstein is a fierce opponent of off-reservation casinos and would be a serious blockade.

CANADA
The government-run casinos in Canada have not been immune from the economic downturn that has hit their U.S. commercial cousins. Although Ontario’s casinos have begun a slow and steady rebound, the shakeup in the province’s Crown corporation that owns the casinos is still reverberating.

In British Columbia, the bitter debate about moving Paragon Gaming’s suburban casino to downtown Vancouver is over—but not in the way gaming opponents wanted, so it may be just run up to an even more contentious debate.

Government- operated online gaming in British Columbia will soon spread east to Ontario and maybe the Atlantic provinces, but the dirty little secret is that market share hasn’t moved much since it debuted last year. Whether adding Ontario’s critical mass will make a difference—or even enforcement efforts against grey area online casinos—is still to be determined.

CONNECTICUT
With the approval of gaming in Massachusetts a new dynamic in casino competition has entered the New England market. When it comes to Connecticut, all eyes turn to the two tribal properties operating there, Mohegan Sun and Foxwoods Casino. According to surveys, approximately 36 percent of all visits to the casinos come from Massachusetts, and gaming in the Bay State could have a major impact on these markets.

Already hit hard by a sluggish economy, both properties experienced shuffles in personnel early in 2011. At Mohegan Sun, Mitchell Grossinger Estes stepped down as chief executive officer to take on more responsibility as CEO of Mohegan Tribal Gaming Authority, the development arm of the Mohegan tribe. Jeffrey Hartmann replaced him. At Foxwoods, refinancing whiz Scott Butera took over as president and CEO. Both casinos have now gotten their new teams in place, and are moving forward in 2012 with a more stable corporate environment.

Both tribes have been working closely with Governor Dannel P. Malloy to explore expanded gaming ideas, even online wagering. Malloy has become an ally to the tribes, a relationship that is mutually beneficial, as Connecticut gets a 25 percent cut of the gross profits from their slot machines.

DENMARK
One of the more sensible approaches to online gaming regulation is being seen in Denmark. Not just the letter of the law, but the spirit of the regulators involved demonstrates a willingness to face the reality of a new gaming paradigm that is based on ever-evolving technology and increasing personal access and responsibility.

But the good news only applies to online gaming. For the traditional land-based casino operator, nothing has changed—especially on the tax front. The European Commission has decided it is fine to tax online gaming at 20 percent but to continue to tax land-based operators at 40 to 70 percent. Why anyone thinks this is good or fair will be a topic of discussion for years to come. Unfortunately.

The online market opens January 1, 2012.

FLORIDA
The New Year could hold big changes for Florida’s gaming landscape. Twin bills before the House and Senate, sponsored by state Senator Ellyn Bogdanoff and Rep. Erik Fresen, call for up to three “destination resorts” in Miami-Dade and Broward counties.

According to the legislation, each casino operator would be required to guarantee a $2 billion investment to be considered. Interested parties thus far include the Las Vegas Sands Corp., Wynn Resorts, and MGM Resorts International.

But none of those players has been as aggressive as Genting, the Malaysian casino giant that has already bought up $300 million worth of real estate in Miami, including the Biscayne Bay location of the Miami Herald newspaper. Genting says it will create a world-class resort in the region with or without gambling.

There’s lots of opposition to the plan. Influential critics include the Walt Disney Company, which is jealously guarding its hold on tourism in Orlando, the Florida Chamber of Commerce, and recently, a spate of lawmakers in Southern Florida, including Miami Beach commissioners, who voted unanimously on December 14 to oppose the casino expansion.

A casino bill would also have to pass muster with a Republican-dominated legislature and Governor Rick Scott, who has taken no stance on the matter so far.
 

GERMANY
All eyes have been on the continuing battle over online gaming legislation between the “Liberalize it!” state of Schleswig-Holstein and the other 15 German Lander. The traditionally change-resistant gaming authorities have been shaken up by the lone upstart, which is calling for an open but still heftily taxed 21^st century market.

But Germany has other issues as well, including a steadily deteriorating land-based casino industry. Here, too, Schleswig-Holstein wants to take the lead, by selling off its money-losing, state-owned casinos. In this, the state is not alone, with political parties in Bavaria calling for the same plan for its casinos. In other states, where casinos are privately owned, the situation for casinos not much better.

The culprits in the casino abuse are easy to spot: absurdly high taxes, lack of will on the part of operators in dealing with government, a casino “tradition” that cripples attempts at creative change, and strong competition for the slot player from the easily accessible street market.

Add to this mix the hard times to come as the other euro lands force Germans to party like it’s 2008 all over again. And Schleswig-Holstein’s reformers may be out after the May elections.

GREECE
Considering that it is the first of the euro zone nations to feel the full force of the current crisis, Greece has remained remarkably true to form when it comes to gaming. Presented with an opportunity to open up the online gaming and new VLT markets to complete competition and sell off the state-owned shares of lottery and betting operator OPAP, the government chose to do none of the above.

Instead, Greece has extended OPAP’s monopoly license in exchange for some cash up front. OPAP is also empowered to handle the ownership of VLT licenses as it sees fit, with 16,500 devices staying within its own operation and the rest being awarded to whomever it chooses.

The government still says it will sell its stake in OPAP when the market conditions improve. As for online gaming, a limited number of licenses will be offered. But in general, expect the future to be business as usual.

ILLINOIS
None of Illinois' 10 casinos are located in Springfield, but that's where the hottest gaming action will be in 2012 as lawmakers and the governor battle over legislation. Many lawmakers who favor expanded gambling also want slots at race tracks, as in neighboring Indiana. These two issues, adding new casinos and creating racinos, have become inexorably intertwined, sung to the tune of "you can't have one without the other."

Except Governor Pat Quinn doesn't like that tune. He does not want racinos, arguing that would steal business from existing casinos. He has vowed to veto any bill that places slots at the tracks.

The city of Chicago really wants a casino, but prospects are slim to none unless legislation includes racinos. Chicago Mayor Rahm Emanuel and Senate President John Cullerton both are pushing the legislation, and with Quinn in opposition. So look to the statehouse I 2012 for the ultimate gaming action.

IRELAND
Big changes are on the way for the gaming industry in Ireland. Not “super-casino” big, maybe, but big enough that slot machines will become legal inside of real casinos. The blueprint the government is following is understood to allow casinos of reasonable size but not what it considers to be unsustainable casino resorts. And who knows? Given gasoline prices close to $10 a gallon, they might have a point.

In any case, online gaming will be “in” and those fixed-odds betting terminals—slot machines—inside sports betting shops “out.” Exactly how things will shake out should be revealed in Spring 2012 when the completed draft legislation is published.

ITALY
For years, foreign casino operators wracked their brains to find a way into the Italian gaming market. As it turns out, the road into Italy was not a superhighway but a footpath, dotted with VLT parlors and hundreds of thousands of centrally monitored street slots.

Licensed online gaming has been fully integrated into the Italian mix, with casino and cash poker games joining tournament poker, sports betting and all other forms of gaming online this past summer.

The march towards a full complement of 57,000 VLTs continues, while the street slot market continues to generate trackable tax revenue. With Italy hard hit by the current debt crisis, the government will need every billion euro it can wring from this thriving industry.

KANSAS
In February, the four casinos on the Missouri side of the Kansas City metro area will take notice when the new kid on the block, the $411 million Hollywood Casino at Kansas Speedway, opens for business. The complex, featuring a 95,000 square foot gaming floor, is a joint venture of Penn National Gaming and Kansas Speedway parent International Speedway Corporation. Restaurants at the property will include a sports bar with a view of the second turn at the Speedway. Operated by the Kansas Lottery, the casino estimates it will attract four million visitors annually.

In south central Kansas, the newly opened (December 26) Kansas Star Casino will tap into the population base of the state's largest city, Wichita. No other casinos are nearby, so the complex, with floor space for 1,500 slots, should have a metro population of over 600,000 all to itself. A greyhound track on the north side of the city has an on-going campaign to become a racino, but Governor Sam Brownback has already said that the 2012 legislature has too much on its plate to consider any gaming legislation.

KENTUCKY
Governor Steve Beshear views his easy re-election—a contest in which he handily whipped state Senate President David Williams—as a mandate to expand gaming, by adding at least slots, and maybe full-blown casinos, to the state’s storied racetracks.

The anti-gaming Williams beat back every one of the gaming bills Beshear supported during his first term, sending gaming expansion measures to defeat in four consecutive years. The only expansion that has managed to pass in Kentucky is the addition of slot-like Instant Racing machines, which are really extensions of the parimutuel racing already permitted. (Instant Racing allows wagering on historical races, and then runs the races on video gaming machine monitors.)

Beshear wants racinos, and support for them in the legislature is appearing, with the first 2012 bill already pre-filed. The measure calls for both full-blown casinos and slot-only casinos at racetracks. With money from the full-blown casino at Aqueduct in New York already beginning to attract prime thoroughbred sires (see USA in this week’s GGB News), the Kentucky racino issue is taking on new urgency.

Look for Beshear to go the constitutional amendment referendum route if the bills don’t pass—his mandate means that might be the best chance for Kentucky racinos.

LATIN AMERICA
There are a multitude of markets within the region known as Latin America, with regulation in Argentina down at the provincial level, for example. Still, the trend as elsewhere is towards more regulation, not less, in all sectors, and at varying speeds. Except of course in Brazil, which appears to be caught in some inescapable web.

The future of regulated online gaming has inspired discussions on both sides of the success argument. Those who are optimists cheer the growing economic power of the consumer, while the more pessimistic point to the long road still ahead for such necessities as broadband internet and credit cards.

Land-based casinos seem to have retained their appeal across much of the region, with continued development and reinvestment occurring regularly.

MACAU
Is the sky falling? No, but Macau gaming revenues over the last few months are up “only” 35 percent. This decline in the increase percentage of gross gaming win is adding to the nervousness investors are experiencing over the slowing Chinese economy.

Local operators have more immediate concerns, however, including increased scrutiny of the VIP market by Macau officials and international regulators, a tight labor market and slow but steady progress toward land concessions in Cotai for the companies not currently there—Wynn Macau, SJM and Sands China. Melco Crown will continue to make its case to build Macau Studio City, which previously had received government approvals.

The rise of Galaxy Entertainment in 2011 should be followed by the growth of the mass-market dominant Sands China as it opens two new casinos in 2012, Cotai Central.

MARYLAND
The new year will finally see long-awaited growth in Maryland’s nascent slot market. The big event of the year will be the opening of the state’s largest casino, Maryland Live!, adjacent to the Arundel Mills Mall in Anne Arundel County. The $500 million project of Baltimore’s Cordish Companies, slated to open in the summer, will add 4,750 slots to a state that has opened only two of the five casinos originally authorized in 2008.

Construction on two more new casinos should get under way in 2012, one of them—in the city of Baltimore—nearly as large as the Anne Arundel casino. Although not officially licensed yet, the only bid for the Baltimore casino is from a partnership of Caesars Entertainment, Cleveland’s Rock Gaming and several local partners to build a major casino and entertainment complex next to M&T Bank Stadium, home of the NFL’s Baltimore Ravens.

Elsewhere, state regulators will choose after February from two bids for the casino at Rocky Gap Lodge, on state park land in rural western Maryland. A lower tax rate and other enticements finally has drawn suitors to what was an unpopular prospect of turning around a money-losing, state-owned hotel.

The other thing to watch in Maryland is Rosecroft Raceway, just reopened by new owner Penn National. Penn is lobbying state lawmakers hard to add Prince George’s County, the suburban Washington, D.C., location of the track, to the list of locations authorized for slots.

And finally, look for movement in the state legislature on adding table games to the mix in Maryland. All of the new casinos will have electronic table games, but all of them want the real thing, and increasing competition in surrounding states may finally turn the tide.

MASSACHUSETTS
Don’t look for any of the three regional casinos, or even the slots parlor approved by the legislature to open in 2012. Instead, expect to see the new Massachusetts Gaming Commission find its footing and write the new regulations that will create the platform for and govern the battle royal that will probably begin in 2013 as some of the gaming’s industry’s most important players jockey for position in the meantime.

About the only issue that could be decided in 2012 will be whether the Mashpee Wampanoag tribe is able to meet the conditions of the Expanded Gaming Act and line up all of its ducks in a row by July 31, the deadline for the tribe to agree to a state compact. If not, the license goes out for bid to all comers.

Looming on the horizon will be the lawsuit that a would-be developer in New Bedford has filed in federal court challenging the constitutionality of the provision that gives the tribe the exclusive right to a license.

MINNESOTA
Will they or won’t they? That’s the question that will dominate Minnesota gaming in 2012 as lawmakers seek ways—including expanded gambling--to keep the Minnesota Vikings from moving to Los Angeles if they don’t get a new stadium fast. The 30-year lease on the problem-ridden Metrodome in Minneapolis will expire on February 1.

Suggestions for funding the estimated $1.1 billion stadium—and the state’s share of $300 million--are coming in from various sources. Governor Mark Dayton supports using taxes from electronic pull-tabs and bingo games. Another idea features state-run video lottery terminals. There’s a proposal for a casino in downtown Minneapolis. And racinos have been suggested at Canterbury Park in Shakopee and Running Aces Harness Park in Columbus.

And out of the blue, the White Earth Tribal Council said it would build, operate and maintain a casino in Arden Hills—funding the state’s entire portion of a new stadium. That’s enough to start a war among the 11 Indian tribes that run 18 casinos throughout Minnesota.

MISSOURI
Shades of the Civil War: Missouri's main threat to gaming revenue growth will come from just beyond its western border in Kansas, where the $411 million Hollywood Casino at Kansas Speedway will open in early 2012. Four Missouri-side casinos and one small tribal establishment in Kansas City, Kansas, currently divide the metro market share. With the Hollywood Casino estimated an annual guest count of four million, numbers on the Missouri side could take a hit.

Things should be brighter across the state in the Mississippi River town of Cape Girardeau, about 100 miles south of St. Louis. Construction has begun on the Isle of Capri Casino, a $125 million complex slated to debut late in 2012. The nearest casino to the south is in Caruthersville, Missouri, about 90 miles away, and Tunica, Mississippi, is 200 miles away. So despite Cape being a small market, it will pull from a wide region.

And while the Cape project has taken the last available gaming license available in Missouri, the newest Missouri casino, River City, opened by Pinnacle Entertainment in 2010 in south Saint Louis, has announced an $82 million expansion plan which includes a hotel and parking garage. Construction will begin in 2012 and everything should be up and running in 2013.

NEVADA
The rebound in Las Vegas revenues should continue as there has been a steady increase in visitors, conventions, room and occupancy rates, and even gaming revenues during 2011. The Strip has led the way, but local casinos have shown signs of life over the past few months.

Except for the opening of the 600-room Octavius Tower at Caesars Palace, 2012 will mark the second year that no new supply will be added to the Las Vegas gaming market. The Cosmopolitan was the last totally new casino to open in December 2010 with none planned for the foreseeable future.

In Reno, the new normal has taken hold. Gaming revenues continue to decline as tribal casinos in its principal northern California market continue to grow into large resorts. Today, the region is counting on non-gaming tourism to survive—eco-tourism, adventure tourism and historic tourism have all taken hold.

NEW YORK
New York Governor Andrew Cuomo’s second year in office could be a game-changer for the Empire State.

In 2011, Cuomo officially came out on the side of expanded Las Vegas-style gaming in the state. In 2012, he is expected to press his advantages of personal popularity and political clout to advance the proposal, which is largely undefined and certain to be both complex and controversial.

New York’s nine racinos favor the expansion, but will lobby to limit the expansion to their operations. Some commercial developers want to open the door to a widespread expansion, particularly in the Catskill Mountains, a former resort hub that is eager to see a revival.

The state’s tribal casino operators oppose the expansion, fearing that new competition will siphon off much of their revenues. If the state approves Vegas-style gambling, it will effectively nullify the state-tribe compacts, and allow the Indians to keep all their gaming revenues.

Though many ideas and opinions are on the table, the change will not come quickly. Any gaming expansion in New York would require a change in the state constitution, as well as approval by two consecutive legislatures and a statewide public referendum. That means new casinos could not be created until 2014 at the very earliest.


OHIO
In Ohio, some snags to the opening of the state’s four casinos are being created by background checks that some of the casino’s financial backers are balking at, and by the fact that the state gaming commission, which will oversee really only got established this year. However, these complications should not prevent at least two of the authorized casinos from opening in the spring in Toledo and Cleveland, creating thousands of jobs and millions in tax revenues. In doing so, Ohio will be one of the quickest states to go from referendum to opening.

In addition, the state’s seven racetracks will probably start to make the necessary renovations or changes in location before they reopen as racinos under the law that allows them to deploy as many as 27,500 video lottery terminals.

ONLINE GAMING
The failure of the U.S. Congress to approve any bill legalizing online poker seems to have kicked the issue back to the states. Nevada has already approved rules and regulations for online poker play but will not implement it unless it gets the OK from the U.S. Justice Department. Not so New Jersey, which is set to take up the issue again, a year after Governor Christie vetoed a bill that would have legalized the wager and based it in Atlantic City. Iowa and California are likely to take up the issue again, while the District of Columbia tries to figure out how to offer the measure via the D.C. Lottery in the nation’s capital.

In Europe, anti-monopoly regulations have opened up the market to online gaming, but still permitting individual countries to offer their own versions of the business. But varying tax rates and oversight makes online gaming a somewhat risky proposition for investors. Australia’s schizophrenic gaming industry has a love/hate relationship with online gaming, and Asia, Africa and South America are just beginning to consider it.

Meanwhile, mobile gaming threatens to blow by betting on your computer. Even in Nevada, mobile sports betting on androids and iPhones is transforming what was once a very static industry.

PENNSYLVANIA
Pennsylvania has been the only bright spot in the U.S. gaming landscape for the past several years, a rare gaming market that has seen only revenue growth as other jurisdictions have struggled.

The new year may finally bring the Pennsylvania market close to answering the question of where the saturation point for gaming expansion lies. New capacity will come on line first in the spring, with the opening of the state’s first Category 3 resort-class casino adjacent to the Valley Forge Convention Center. The Valley Forge Casino Resort will have 600 slot machines and 50 table games, competing in an increasingly crowded market in the eastern part of the state.

With fresh expansions complete at Parx, Mount Airy and Sands Bethlehem, a major expansion under way at SugarHouse in Philadelphia and a hotel expansion soon to commence at Mohegan Sun at Pocono Downs, the casino market in Eastern Pennsylvania—squeezed by new competition in Maryland, New York City and soon, in the Catskills, possibly in Delaware and farther north in Massachusetts—could be reaching the limits of its growth.

That’s what state lawmakers are saying about the second Philadelphia casino license, stripped from the Foxwoods partners for failure to meet construction and financing plan deadlines. Look for state lawmakers to advance several bills in 2012 to re-bid that license elsewhere in the state, possibly around Johnstown, the only metropolitan area without a casino.

Meanwhile, the western part of the state faces the same capacity issues, with the last originally planned racetrack casino under construction in Lawrence County and the other resort casino being built at Nemacolin Woodlands, facing oncoming competition from new casinos in Ohio and western Maryland.

PHILIPPINES
With the debut of Resorts World Manila a couple of years ago, major investors realized that the Philippines had more gaming potential than previously thought. The idea of an Entertainment City on reclaimed land adjacent to Manila Bay seemed to make more sense.

Over the past year, progress have finally arrived on the site, with four parcels reserved for projects that cost at least $1 billion. Clearly the best idea of the previous administration in charge at the Philippine Amusement and Gaming Corp. (PAGCOR)—now embroiled in charges of fraud and corruption—Entertainment City could become a major gaming stop in Asia.

But don’t underestimate the plans for the former Clark Air Force Base, about an hour from Manila. Several companies have announced plans for mixed-use casino developments on the special economic region. And if that is successful, the former Subic Bay naval base could be next.

SINGAPORE
All hail Sheldon Adelson, who proved once again that he’s got the pulse of Asia by building a massive and iconic integrated resort in Singapore that is dominating the market. The three soaring towers and 2,000 rooms and suites are full most of the time. And when his million-square-foot convention center if at capacity sometime in 2012, Marina Bay Sands will be running on all cylinders.

Not to denigrate Genting’s Resorts World Sentosa, which has impressive family oriented amenities like amusement parks and aquariums, MBS has a finely honed gaming operation that Genting just can’t match.

But the Singapore government is cracking down on locals gambling, fearful that more and more of its citizens will “waste” their income, by limiting advertising and promotion within the island nation. But will Malaysia and Indonesia attempt to limit the gambling travel of their citizens to Singapore? Not yet…

SLOT MARKET
The big story in the slot market for the past several years has been a non-story—the absence of capital expenditure to renew slot floors. The major slot manufacturers are looking to 2012 as the year operators are finally going to spend money on replacement games.

This is by no means a certain proposition, but slot-makers can take solace in the fact that new capacity is coming in several U.S. markets—Ohio, Kansas, Massachusetts, and quite possibly in the form of new commercial resorts in Florida. Other salvation lies in Europe and Asia, as Greece and other countries look to follow the lead of Italy in creating a new market for video lottery terminals, and as new capacity in Macau and elsewhere in Asia becomes a reality.

Meanwhile, the other big story in the slot market for 2012 should be the maturation of the server-based element on slot floors. WMS will continue to add networked elements to production games; Bally Technologies will expand the iVIEW Display Manager system, linking slots to new floor-wide features; and IGT is making conversion to server-based applications easier and more economical by placing the server function on the internet cloud. Bally, of course, has also been planning cloud-based content services, and other slot-makers are sure to fall in line.

The slot market in 2012 will also begin to move to new media—the point of placing content on the cloud is to have each manufacturer’s content available to operators for use in brick-and-mortar casinos, online where approved, and on mobile devices where those are approved.

In short, the new year may see slots begin to expand from the floor.

RHODE ISLAND/NEW HAMPSHIRE
Both Rhode Island and New Hampshire are feeling the pressure of expanded gaming in neighboring Massachusetts. As the Bay State has approved the building of one slot parlor and three full-scale casinos, Rhode Island and New Hampshire could be lagging behind in the race for gambling dollars.

The Twin River slot parlor, in Lincoln, Rhode Island, has been trying to expand to a full-scale table game casino for over a year. Political wrangling and a complex financial reorganization to emerge from a 2009 bankruptcy have slowed the progress. As it stands, a question has been placed on the November 2012 ballot asking the public for approval of table games at Twin River. It is likely that the referendum will pass, as gaming advocates have pushed hard for it and the general public seem open to the idea.

As for New Hampshire, with no casinos and only horse and dog racing tracks, the state is in the worst position in New England to attract casino dollars. This could change if bill that would allow two casinos with 5,000 slot machines each is passed. But Governor John Lynch has also vowed to veto any expanded gaming bill that comes across his desk, which could effectively destroy any chances of casinos in the state.

SPAIN
Spain is about half-way through a very dynamic period as far as gaming is concerned. Shaking off the failed casino resort attempts of the mid-2000s, the nation is now embarking on an online adventure that is almost guaranteed to meet with success. After all, the reality is that Spanish players have been avid fans of the genre in its unregulated form for years. Now at least the local and national governments will be able to benefit.

On the land-based front, there are still some who believe the opportunity exists to go big with casino resort development—if the right conditions can be met. Given the economic situation, there are pros and cons to 2012 being the year this could happen—understanding of course that this is the land of Don Quixote.

TRIBAL GAMING
The “Carcieri” fix will continue to be a hot topic in the U.S. Congress in 2012, but since it will be an election year it is unlikely that either the Senate or the House will do anything to alienate either the Indian tribes or those who oppose more gaming expansion.

Tribes argue that the U.S. Supreme Court’s “Carcieri” is unrelated to gaming but directly attacks tribal sovereignty. Opponents of “reservation shopping,” however, such as California U.S. Senator Dianne Feinstein, and possibly Arizona Senators John McCain and Jon Kyl, will probably try to tie the issues together.

Tribes will also push Washington into adopting some form of internet gaming that recognizes a sovereign tribal role in this form of gaming, while commercial interests will argue that tribes should compete in the field just like everyone else. But divisions among the tribes on whether internet gaming should even be legalized will cause tribal supporters to scratch their heads. The only thing that seems to unite the tribes is a plan that might allow the tribes to conduct online gaming like commercial casinos and be subject to the same rules and regulations—and taxes—as any online business.

UNITED KINGDOM
More than four years after introducing the 2005 Gambling Act, the U.K. government is finally taking a serious look at the disappointing results. The push for the move comes from the National Casino Industry Forum, the trade body for casino operators that supplanted the long-ineffectual British Casino Association.

No, the results will not be a complete overturn of policy. There will be no Singapore-sized integrated resorts springing up in Brighton or Blackpool. The NCiF will be happy if all casinos are allowed to have more than 20 slot machines. At present, only the 16 casinos authorized by the 2005 regulation may have 80 or 150 slots, depending on their classification. And so far, only one of those has opened.

U.K. operators—and all slot suppliers—will be keeping their fingers crossed. The decision from the Department of Culture, Media and Sports could mean an additional 10,000-20,000 gaming machines.

WASHINGTON/OREGON/ARIZONA
Washington State could see the end of the gaming monopoly that gaming tribes have enjoyed as lawmakers mull over the possibility of allowing thousands of slot machines in the state’s more than 60 card rooms. Like most states Washington is facing a large deficit. The idea of collecting some extra taxes from commercial gaming enterprises may prove to tempting to resist, especially since state tribes contribute little directly to the state.

Arizona, one of the few states where Indian gaming revenues have been up in recent years, will probably continue its winning ways as Arizona tribes continue to build new casinos and renovate old ones, following the example of casinos such as Casino del Sol, which recently expanded its operation to include a medium-sized hotel. But efforts to add slots to racetracks and build stand-alone casinos are always on the back burner. Again, little contribution from state tribes could be an issue.

Breaking the Indian monopoly on gaming in Oregon will also continue to be the goal of some entrepreneurs—as opposed to lawmakers. But to do it they will need the cooperation of the voters, who have so far, under pressure from Indian casinos, failed to approve of such proposals.

By Staff