Las Vegas NBA Arena-Casino Project OK’d by County Zoning Commission
The Clark County Commission Dec. 4 approved use permits, design reviews and development waivers to developers LVXP for its project that would include an 18,000-seat, NBA-ready arena, a hotel with about 2,300 rooms, 260 condominiums, a casino and a theater.
If constructed, the development would be located on the Strip between the Fontainebleau and the Sahara, at the site of the former Wet n’ Wild waterpark. The site was also eyed for the now-defunct All Net arena project that was shut down last year.
According to KSNV, some residents voiced concern at the meeting about whether this project will actually come to fruition following the collapse of the All Net project. LVXP said previously that it could fully pursue financing options after it was granted county approval and asserted that interested parties had already been in contact. Another concern was the height of the hotel tower—at 752 feet, it would be the tallest structure in Las Vegas. To that end, the Federal Aviation Administration gave its blessing to the project in November.
NGCB Recommends New Operators for Virgin Las Vegas
The Nevada Gaming Control Board (NGCB) gave unanimous recommendation Dec. 4 to two partners seeking to take over as the casino operators of Virgin Hotels Las Vegas. Cliff Atkinson, the current president of the property and Chad Konrad, chief financial officer of JC Hospitality, will now go before the Nevada Gaming Commission later this month for final approval. If Atkinson and Konrad are approved, the change is expected to take place early next year.
Union workers at the property have been on strike since Nov. 15. They are seeking similar deals to those signed at other casinos in the city over the last year, but Virgin leadership has remained adamant that that is not economically viable for the off-Strip casino.
“Our whole goal here is to save the property and jobs associated with it,” Atkinson told the board, according to CDC Gaming. The casino first opened as Hard Rock Las Vegas but was reopened under the Virgin Group brand in 2021. Since then, the casino has been operated by the Mohegan Tribe, but the arrangement has been unsuccessful and the tribe announced in May that it would end the partnership after this year.
National iGaming Model: Successes, Failures
A group of U.S. lawmakers have come together to craft model igaming legislation in the hopes of helping their peers push through bills in 2025. The proposal bans sweepstakes, funding accounts with credit cards and sets the wagering age at 21. It also suggests that states should limit the number of operators in a state and have the power to set bet limits.
The National Council of Legislators from Gaming States (NCLGS) started the public process of developing a template for igaming legislation at its annual convention in July. At that time, former Florida state Senator Steve Geller led the conversation. He laid out seven pillars that model legislation should include:
- Revenue generation
- Responsible gaming
- The cannibalization question
- Advertising guidelines
- Licensing
- Age limits
- Data sharing
The current proposed model, analyzed by iGB, touches on all seven themes. It also calls for lawmakers to keep tax rates between 15-25 percent of gross gaming revenue. Regulators are given critical powers – including setting application and renewal fees – that in many legal betting states are determined by the legislature. The draft model is open for public comment until Dec. 31, at which point a NCLGS committee will refine it and share it with lawmakers.
No U.S. state legalized iGaming in 2024. Lawmakers in Maryland held discussions, hearings and votes, but could not get the issue to the governor’s desk. A legal igaming bill was filed in Ohio in September and lawmakers in several other states say they will tackle the issue. Igaming is legal in seven U.S. states – Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia. Michigan, New Jersey and Pennsylvania are the only three of the 10 biggest legal sports betting states to offer it.
The NCLGS proposed model igaming legislation wasn’t easy to come by. Council President Shawn Fluharty had hoped to have it ready by the start of August. But sources say coordinating state lawmakers across the country and trying to gain consensus on certain issues was tougher than expected.
Public Hearing Set for Sands New York
Las Vegas Sands has cleared a hurdle in its quest to build a $4 billion integrated resort at the site of the Nassau Coliseum on Long Island.
The environmental plan for Sands New York, one of 11 proposals in and around New York City seeking one of three available downstate casino licences, was approved by the state legislature. The 28,000-page environmental impact plan is available for review and public comment on the Nassau legislature’s website. Public comments will be accepted until Jan. 6.
The casino plan has met substantial opposition, mostly from nearby schools including Hofstra University and Kellenberg High School. Local communities also have opposed the casino, citing potential crime, addiction, traffic congestion and environmental issues. There is an organized opposition group called “Say No to the Casino” that has called on its members to attend the Jan. 6 public meeting to oppose the project.
U.S. Bank: Fisher Family has Funds for A’s Ballpark
The family of soon-to-be Las Vegas A’s owner John Fisher does have the funds necessary to finance approximately $1.1 billion in costs associated with the construction of the team’s new stadium on the Strip, according to a letter from Stephen Vogel, senior vice president at U.S. Bank. The letter was submitted to the Las Vegas Stadium Authority and reported by the Las Vegas Review-Journal Dec. 3.
“Based on this review, we conclude that the Fisher family and their related entities have financial assets (excluding their interest in the Athletics Major League Baseball franchise) more than sufficient to fund the equity portion of the proposed capital structure for the Athletics’ Las Vegas Stadium,” Vogel said in the letter, per the Review-Journal.
The cost of the stadium has risen from the original projection of $1.5 billion to $1.75 billion, with the team attributing this to rising construction costs and design changes. Up to $380 million of that will come from public financing approved last year, with an additional $300 million coming from a construction loan, leaving Fisher and his family the remaining $1.1 billion.
Decreases Abound in Nevada’s October Revenue Report
October gambling revenue figures released Dec. 4 by the Nevada Gaming Control Board (NGCB) showed that the state brought in $1.28 billion in gross gaming revenue (GGR) for the month, a year-over-year decline of just over 2 percent.
Figures for the Las Vegas Strip were the highlight of the report, but not for good reasons. The Strip’s October GGR total of $692 million was a 3 percent drop year-over-year. That’s the fourth consecutive month of year-over-year declines for America’s gaming capital, which had its best year ever in 2023. For the fiscal year-to-date, the Strip is down more than 6 percent.
All of Washoe County reported decreases, most notably a 3 percent decline in Reno ($68.1 million). Despite this, the market is still flat year-to-date. The Carson Valley is also more or less flat, both for the month (+1.8 percent) and for the fiscal year-to-date (+1.1 percent).
If the plethora of GGR decreases was not enough, state sports betting also saw steep drops. Statewide sports betting GGR was $28.9 million, down 57.5 percent from last year. GGR from mobile betting was $18.7 million, down 46.4 percent year-over-year. The Las Vegas Strip posted $13.3 million in sports betting GGR, down 50 percent from a year ago. Its mobile GGR of $6.2 million was also a decline of more than 40 percent.
Jake’s 58 Holds Topping-Off Ceremony for Expansion Building
Jake’s 58 in Islandia, NY recently held a ceremony to commemorate the topping-off of its new 110,500-square-foot, $210 million expansion building. The facility will house the 1,000 additional video lottery terminals it was granted last year, as well as a 200-seat food court. Other aspects of the property’s expansion efforts include a new 500-space parking garage, hotel room and casino renovations and more, expected to be completed by early 2026.
“The topping-off ceremony marks a significant construction milestone in our journey to enhance Jake’s 58 Casino and deliver additional amenities for our guests,” said Phil Boyle, president and CEO of Suffolk OTB, according to Long Island Business News. “This expansion is not only a testament to our commitment to growth, but it also represents the creation of more union jobs, providing a boost to the local economy.”
Non-Smoking Bills Introduced in Kansas, Missouri
Bills looking to ban smoking in casinos have been prefiled in Missouri and Kansas, and lawmakers will debate the issue once the states begin their legislative sessions on Jan. 8 and Jan. 13, respectively.
The advocacy group Casino Employees Against Smoking Effects (CEASE), which has argued on behalf of smoking bans for years in New Jersey, Pennsylvania and elsewhere, has a Kansas and Missouri chapter that will support the movement.
“85 percent of Kansans and Missourians do not smoke,” CEASE Kansas and Missouri Founder Joe Hafley told KCTV. “We have lots and lots of support from different groups, American Heart, American Lung, Americans for Non-Smokers’ Rights.”
MGM Increases Resort, Parking Fees at Strip Properties
Beginning at 10 a.m. Dec. 4, MGM Resorts implemented increased resort and parking fees for its properties on and around the Las Vegas Strip. With regard to resort fees, guests at Bellagio, the Cosmopolitan, Aria and Vdara will see those rise to $55 per day. Fees at Mandalay Bay, MGM Grand, Delano, the Signature, ParkMGM and Nomad will increase to $50 per day, and Luxor, New York-New York and Excalibur will charge daily fees of $45.
As for parking, those fees will jump to $20 Monday-Friday and $25 on the weekends. Valet parking will now be $40 at all properties.
Alabama City Makes Payroll Amid Bingo Legal Battle
The city of Lipscomb, Ala. was able to make payroll Dec. 4 after the state Attorney General’s Office (AGO) unfroze $107,000 of the city’s funds to cover expenses, according to WBRC. The AGO originally froze the assets in a dispute over the legality of electronic bingo halls currently operating in the city.
Under state law, electronic bingo is not legal, but halls have popped up all over the state. Their revenue has become a key source of funds for cities like Lipscomb. While the money for payroll was released, additional funds are still tied up and the matter will be adjudicated in hearings next week.
