Cordish: We Oppose LA iGaming, But Will Offer It, if Legal
At a Louisiana state legislature Senate Judiciary B Revenue and Fiscal Committee hearing Dec. 11, a sea of land-based casino operators threw their support behind legalizing iGaming. But the Cordish Companies were a rogue wave.
And one consultant called out Cordish for its contradictory stance. The company is lobbying against a digital expansion of gaming in Louisiana, but operates an online casino in Pennsylvania, reports iGB.
The anti position is not new for the Cordish Companies. The company has land-based casinos in Florida, Louisiana, Maryland and Pennsylvania. Earlier this year, it won the right to build locations in New Hampshire and Virginia. When Maryland lawmakers in 2024 made a push to legalize online casino, it was Cordish that pushed back. At that time, company representatives called iCasino a “jobs killer” with “inflated revenue projections” that will stymie economic development while “cannibaliz(ing) gaming tax revenue.”
But the company is in the minority among casino operators. Representatives from Boyd Gaming, which operates five gambling locations in Louisiana, and Caesars Entertainment, which owns three properties in Louisiana, enthusiastically support expansion. Former Michigan lawmaker Brandt Iden, now head of government relations for Fanatics Betting & Gaming, also spoke in support.
Representatives from Boyd and Caesars called igaming “additive” to their businesses.
But Cordish — along with the Louisiana Video Gaming Association (LVGA) — pushed a different agenda. During his opening remarks, Cordish General Counsel Mark Stewart called online casino a “bad bet” for Louisiana. He went on to show photos of land-based properties, some with casinos and some without. He also showed a photo of a job fair and said, “it’s important to point out that you will never see something like that with iGaming.”
Stewart went on to say that while the financial reward is significant — though overstated — the social cost of igaming is “too high.” He showed a Deutsche Bank slide that revealed an 11.7 percent decline in physical casino revenue in three states with live igaming. That was compared to a 17.7 percent increase in revenue in six states without legal iGaming.
Big Money in Illinois in FY2024
Data from the fiscal year 2024 edition of the “Wagering in Illinois” report from the legislature’s Commission on Government Forecasting and Accountability showed that the state’s gaming industry generated a record $2.08 billion in tax revenue in FY24, the most ever for the Prairie State, writes iGB.
According to the report, state tax revenue grew 4.8 percent year-over-year from $1.99 billion in FY23. Illinois has one of the strongest gaming industries in the U.S., with casino gaming, video gaming (slot routes), sports betting, horse racing and lottery.
The report covers not just the last fiscal year, but references financial reports dating back to legalisation dates for each genre of gambling.
The commission noted that FY24’s growth was “largely driven by the steady expansion of video gaming, elevated lottery sales and rapid growth in sports wagering.” The first two sectors generated the majority of tax revenues – $886 million from the lottery and $848 million from slot routes. Sports betting contributed $190 million in taxes and licensing fees, with horse racing contributing $6 million.
Casinos, meanwhile, generated $158 million, nearly identical to FY23’s total of $157 million. Two new casinos opened during the year, but authors wrote that that has not made “a pronounced impact” on tax revenues. This, they said, was “due to a number of factors including a reduced tax structure, credits issued and higher administrative costs.”
LVCVA’s Hill: This Year’s F1 Not the Same as ‘23
The second edition of the Formula One (F1) Las Vegas Grand Prix has come and gone, and while the event was still a success in that it helped supplement what is normally a down time, it didn’t quite match up to the record numbers from last year, according to Las Vegas Convention and Visitors Authority CEO Steve Hill.
“There are no economic impact numbers out yet,” Hill told the Las Vegas Review-Journal Dec. 10. “They’re certainly going to be lower than they were last year, we know that, and expected that. But it’s still a great weekend. It turns what is one of the slowest weeks of the year into one of the best weeks of the year. But from an economic standpoint, it’s not the same.”
With regard to improvements moving forward, Hill told the outlet that the biggest hurdle is still the building and tear-down of the race infrastructure. He said stakeholders will potentially bring in more workers to “shorten the timeframe” and become “more efficient with that set-up and teardown.”
Nassau Holds Hearing on Sands New York
A public hearing on the proposed $6 billion casino and resort at the Nassau Coliseum site drew parties on both sides of the issue to the Nassau Legislature Dec. 9.
The hearing was held to discuss the draft Environmental Impact Statement, which outlines plans to manage increased traffic by expanding a local highway. Las Vegas Sands has pledged $150 million for infrastructure improvements.
Some residents expressed doubts that the measures would mitigate the increased traffic that would result from a casino, and others expressed concern over the project’s projected daily water usage of 750,000 gallons.
Meanwhile, supporters pointed to the jobs, increased tourism and infrastructure improvements expected from a Sands casino.
Public comments on the impact statement will be accepted by Nassau County until Jan. 6. It is one of 11 proposed casinos vying for three available downstate licenses.
Local Residents, Officials Push Back on Richmond-Area Casino
At a Dec. 5 town hall meeting in Henrico County, Va., local officials and residents voiced their displeasure towards the development of a new Churchill Downs-operated Rosie’s Gaming Emporium, which will take over a shopping center vacancy. There is no current timeframe for the development of the casino, but the process of how it came to be has been controversial.
Essentially, Churchill has the right to operate up to 175 historical horse racing (HHR) machines up until midnight without needing approval or public hearings. But the company submitted its application for the casino days before a new ordinance was enacted in June that would have required such steps, and many feel that Churchill is rushing its way through the development process to skirt those responsibilities.
“They knew that after Tuesday, June 25, that the actions of my colleagues and I, unanimously, would require — when we passed that amendment — public input,” Brookland District Supervisor Dan Schmitt said at the meeting, per WRIC. “At every single turn, they navigated a pathway to avoid hearing you [the public].”
In response, Churchill issued a statement to the outlet saying that it was “excited to have received the necessary approvals from Henrico County to develop a new boutique gaming concept that will allow us to create jobs, generate tax revenue, and offer exciting entertainment options.”
Peoria to Hire Consultants, Attorneys in Hopes of New Boyd Casino
The Peoria City Council voted unanimously Dec. 10 to authorize the hiring of a financial consultant and outside council as the city continues to ramp up efforts to entice Boyd Gaming to move away from its riverboat complex in East Peoria in favor of a new land-based casino in Peoria. Innovation Capital will be hired as the consultant and the firm Elias, Meginnes & Seghetti will be hired as counsel—contracts will initially be for six months with the expectation that the process could take a year or more.
“A major casino expansion is a significant financial undertaking, and in order to approach Boyd with the best team and scenarios possible, we felt it very important to retain (an) industry leading investment banking firm to help us with the financial advice,” city attorney Patrick Hayes said during the meeting, per WCBU.
Boyd said during a regulatory meeting in the spring that it intends to file applications for a new facility sometime in 2025 or 2026. A previous revenue sharing agreement between Peoria and East Peoria stipulates that any future land-based casinos be located in Peoria, and Hayes told Mayor Rita Ali that that language is explicit and straightforward. Boyd has operated its riverboat in East Peoria since 1996.
“It’s our view that this matter should take somewhere between six months to a year to determine the outcome. It may take longer, but that’s the best estimate we can provide today,” Hayes. “One reason that we know that most of that activity will take place during 2025 is that the Boyd and the gaming board have indicated that their facilities expansion plan is due in March of 2026.”
Caesars Virginia Opening Pushed to Dec. 17
On Dec. 6, Caesars Virginia announced that it will push back the grand opening of the property to Dec. 17 rather than the originally announced date of Dec. 12. The company didn’t offer a reason for the delay but did say that Pro Basketball Hall of Famer Dennis Rodman will attend the event and place the ceremonial first sports bet. The doors will open at noon but festivities will start at 10:15 a.m.
“We know that there is tremendous excitement for our grand opening, and we appreciate everyone’s patience with this short delay,” Caesars Virginia General Manager Chris Albrecht said in a release. “The team has been working around the clock to officially open the doors.”
Churchill Downs Sets Feb. 12 Opening Date for Owensboro Casino
Churchill Downs’ latest Kentucky casino, Owensboro Racing & Gaming, will open Feb. 12, the company announced Dec. 6. The $100 million property will feature 600 historical horse racing (HHR) machines, a sportsbook, food and beverage options and more.
“The entire team is incredibly excited to welcome the public to our grand opening festivities on February 12,” said General Manager Steve Roof, per the Owensboro Times. “The day will feature a ceremonial ribbon cutting, giveaways, promotions, and live entertainment. It will be the perfect kickoff to all the thrills that await our guests at what is sure to be a premier regional entertainment destination.”
Fertitta Expected to be Tapped for Ambassador Role
CBS News reported Dec. 11 that billionaire casino owner Tilman Fertitta is widely expected to be named as the U.S. ambassador to Italy as president-elect Donald Trump continues to fill positions for his upcoming transition back to the White House.
Fertitta owns several Golden Nugget-branded casinos around the country, including one in downtown Las Vegas. He also recently became the largest individual shareholder in Wynn Resorts, although reports have said that he has no intention of taking over the gaming giant.
Fontainebleau Celebrates 1-Year Anniversary
Dec. 13 is the one-year anniversary for the opening of the Fontainebleau Las Vegas, and its first 12 months of operation were nothing if not eventful. The property, which had been in development for nearly 20 years, went through a slew of executives in its first few months and also faced a lawsuit from Wynn Resorts for poaching its executives. But as 2025 approaches, stakeholders feel confident that the ship has been righted.
“Next year we’re in a tail wind because, I think we’ve now established ourselves as a destination with not just great hotel or food and beverage or beautiful property, but it really is about the people that work here and in the service that they provide,” President Maurice Wooden told the Las Vegas Review-Journal.
IGSA Updates Membership Tiers/ Dues
The International Gaming Standards Association (IGSA) Dec. 11 announced new changes to its membership and due structures. Under its previous framework, members were categorized as bronze, silver or gold with annual dues ranging from $11,200-$89,500. The new fee structure will now range from $5,000-$50,000, with the following membership tiers:
- Director Level: For companies looking to set the overall IGSA strategic direction
- Industry Level: For companies operating in the land-based and online sectors
- Vertical Level: For companies operating in the land-based or online sectors
- Operator Level: For land-based or online casino and sports betting operators
- Committee Level: For companies looking to participate in only one or two committees
