US IN FOCUS

The latest on the New York City casino race, 50/50 drawings proposed in Arkansas, fingers pointed for Jake’s 58 violations and more.

US IN FOCUS

New York Unions Favor Caesars Times Square

Representatives of some 16 trade unions put their support behind the proposed Caesars Palace Times Square casino. In a letter to Manhattan Borough President Mark Levine, state Assemblymember Tony Simone and City Councilmember Erik Bottcher, who represent the Times Square district, the union leaders said the casino proposed for the city’s vaunted theater district will benefit the entire city.

While the proposal, one of 11 expected to bid for casinos in and around New York City, has drawn some opposition from local residents and officials, it also has the support of several prominent Times Square tenants, and now, by the unions that stand to benefit from its construction.

“The team behind Caesars Palace Times Square knows and understands New York City,” wrote the union leaders. “They recognize that when Times Square thrives, the entire city thrives. And they are prepared to invest billions of dollars in converting the office building at 44th Street and Broadway into a world-class gaming, hospitality, and entertainment destination, an investment that will transform the economic life of Times Square.”

Signatories of the letter are as follows: Steamfitters Local 638, Mason Tenders’ District Council, Cement & Concrete Workers District Council #16, Sheet Metal, Air, Rail and Transportation Workers Local Union 137, Cement Masons’ Local 780, Plasterers’ Local 262, Tile, Marble & Terrazzo BAC Local Union No. 7 of New York & New Jersey, District Council 9, Painters and Allied Trades International Union, Roofers Local Union No. 8, Bricklayers & Allied Craftworkers Local Union No. 1, Sheet Metal Air, Rail and Transportation Workers Local Union 28, Local 12 Heat and Frost Insulators of New York City & Long Island, International Union of Elevator Constructors Local One, United Association of Journeymen & Apprentices of the Plumbing and Pipefitting Industry of the US & Canada, Plumbers Local 1, Building Material Teamsters Local 282, New York City and Vicinity District Council of Carpenters, International Brotherhood of Electrical Workers, Local Union No. 3.

 

Bill to Speed Up NY Casino Bids All but Dead

The bill cleared by both chambers of the New York state legislature that would have set clear deadlines for applications and approvals of three downstate casinos is all but dead.

The bill, S 9673A, would change the deadline for submitting applications for the three available licenses to Aug. 31. But New York Gov. Kathy Hochul has yet to make a move endorsing or rejecting the bill. With just over two weeks to go before the deadline set out in the bill, and several of the proposed projects mired in zoning issues with others still needing local approval, the bill will soon be moot.

The timeline will almost surely revert to the dates estimated earlier this year by the New York State Gaming Commission, which gives bidders until June 2025 to submit bids, with the state Facilities Location Board reaching a decision by the end of next year.

 

Saracen Casino Pushing for 50/50 Drawings for NIL Funds

Saracen Casino in Pine Bluff, Ark. is seeking to legalize 50/50 online raffles in hopes of raising funds for name, image and likeness (NIL) deals for athletes at the University of Arkansas.

According to the Arkansas Democrat Gazette, the state’s Department of Finance and Administration said that “the proposed NIL raffle is not authorized under existing Arkansas law and could not be implemented with just a rule change.” There is also “a statutory ban on online raffles that can be found at Arkansas Code Section 23-114-401.”

Carlton Saffa, Chief Market Officer for Saracen, has estimated that the new games could raise an additional $24 million in state taxes in the first year and as much as $90 million in three or four years. He pushed back on the department’s interpretation, saying that the word “raffle” does not appear in the proposal. Aside from revenue, the proposal is an attempt to bolster University of Arkansas athletics now that NIL deals are permitted by the NCAA.

 

MGM Facing Wrongful Termination Suits Related to Vaccine Mandate

MGM Resorts is facing six wrongful termination lawsuits from former employees who were let go after refusing to comply with the company’s Covid vaccine mandate for salaried employees in 2021. According to the Las Vegas Review-Journal, a federal judge is likely to consolidate the filings in the near future.

The former employees, who filed their claims from December 2022 to July 2024, said that their petitions for religious exemptions were denied despite completing the necessary steps. The employees worked at various MGM properties in Las Vegas, including MGM Grand and New York, New York. Their times of service ranged from seven to 28 years.

 

Delaware North Denies Liability for License Violations at Jake’s 58

Earlier this month, Jake’s 58 casino in Long Island, N.Y. was fined $26,000 by the New York State Gaming Commission for 26 violations related to employees who either did not have state gaming licenses or were working under expired licenses.

Suffolk OTB, owners of Jake’s 58, said at the time that the violations stemmed from when Delaware North ran the casino, which it did from early 2017 to mid-2021.

But in a statement to PlayNY, Delaware pushed back on that accusation, saying that it “did not receive any notices of employee licensing violations during its period of managing Jake’s 58 on behalf of SROTB. Delaware North is strongly committed to gaming compliance, including employee licensing, at our casinos and other gaming venues in New York, seven other states and Australia.”

 

Resorts World Guests Upset Over Room Inspections

Guests staying at Resorts World Las Vegas were displeased with mandatory room inspections that most felt were related to a computer hacking conference that was in town Aug. 8-11. The conference, called DEF CON 32, took place at the Las Vegas Convention Center.

According to TravelPulse, one guest said that the casino’s security “had no idea what they were looking for. They knocked and came in, and showed me a big, long list of stuff that they wanted to look for. It had things like random cables and a USB thumb drive. I said, ‘You have these things.’”

Both MGM Resorts and Caesars Entertainment were hit with massive cyberattacks last September that caused system disruptions and several millions in losses.

 

Penn to Launch iGaming Platform in Michigan

Penn Entertainment CEO Jay Snowden announced that the operator will launch a new iGaming platform in Michigan early in 2025.

Snowden announced on the company’s second-quarter earnings call on Thursday morning that its Hollywood casino app is expected to launch in Michigan early in the new year. Currently, PENN online customers access the Hollywood MI online casino via the company’s ESPN BET sportsbook site.

“By early 2025, we expect to introduce our first standalone casino app, which will allow us to better leverage the strength of the Hollywood brands and our robust casino database,” said Snowden, according to PlayMichigan.

“We are continuing to improve our high casino product offering by adding exciting new game titles from PENN Game Studios, while increasing the breadth of our third party content and expanding our promotional capabilities.”

 

Maryland Gaming Revenues Down Slightly

The Maryland State Lottery & Gaming Control Agency (MLGCA) has published its casino revenue report for July 2024. The state’s six land-based casinos collected $169.8 million in revenue, representing a 2.6 percent decrease from last year’s $174.3 million. At the same time, revenue was up around 4.2% month-on-month, compared with the $162.9 million generated in June.

Almost $116.5 million of July’s revenue came from video lottery terminals (VLTs), and the remaining $53.4 million was generated by table games. While July marks the beginning of FY 2025, the figures have brought the calendar year total above $1 billion.

MGM National Harbor took the top spot with nearly $72 million in revenue, representing the smallest drop of just 0.2 percent from last July. Live! Casino & Hotel came in second place with $62.6 million in revenue, down 0.3 percent. In third place, Horseshoe Casino saw the largest year-on-year decrease of 16.9 percent, collecting $13.3 million.

Ocean Downs Casino reported $9.6 million in revenue, down 4.6% year-on-year. Hollywood Casino followed with $7.3 million, a 2.8% decrease. Rocky Gap Casino came last with $5.0 million in revenue, down 13.4% year-on-year.

 

Music Festival Hopes to Draw Crowds to Downtown LV During F1

Casinos and venues in Downtown Las Vegas are coming together to organize a free music festival–dubbed the Neon City Festival– that will take place during the Formula One (F1) Las Vegas Grand Prix in an attempt to disperse crowds more evenly throughout the city rather than just the Strip.

The F1 race, scheduled for Nov. 21-23, did well to drive revenue and visitation in its inaugural edition last year, but many business owners outside the Strip have urged officials to make it more inclusive around the city this time around.

A first draft of the entertainment and culinary offerings for the festival is expected to be released by the end of the month. The exact footprint of the festival is also unconfirmed, but organizers have said that performances will take place at the Fremont Street Experience and the Downtown Las Vegas Events Center.

 

Bally’s Chicago Opens VIP Lounge

Bally’s Corp. opened a VIP lounge at its temporary Chicago casino at Medinah Temple on Aug. 12. The space is located on the third floor of the casino near the table games area, and features seating for up to 30 people. A VIP Player Services window was also opened nearby.

“As an exclusive benefit for VIP Bally Rewards members, the Bally’s Chicago VIP Lounge offers a relaxing space away from the gaming floor to socialize and enjoy complimentary food and non-alcoholic drinks,” Vice President and General Manager Mark Wong said in a statement. “Combined with our new high limit slots and VIP Player Services window, all located conveniently on the third floor, our highly tailored VIP experience makes for an exceptional time at Bally’s Chicago Casino.”

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