Atlantic City Casinos Growing Worried Over Summer Slump
The July revenue figures from the New Jersey Division of Gaming Enforcement (NJDGE) showed that retail casinos brought in $272 million, a 6.1 percent decrease from the same period last year. iGaming ($195 million) and sports betting ($80 million), however, posted year-over-year gains of 26 percent and 31 percent, respectively.
The figures are the latest indication that revenue cannibalization fears may be more warranted than previously thought. Atlantic City’s nine casinos had hoped to see a summer surge before the winter season.
“While many were hopeful that the summer of 2024 for Atlantic City casinos would see a rebound in drive-in visitors after last year’s trend of people taking their ‘dream vacation’ and flying to destinations, the July in-person gaming numbers suggest that is not the case,” Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, told NorthJersey.com.
Sanborn Files Mystery Lawsuit as NH Casino Drama Drags On
Former New Hampshire state Sen. Andy Sanborn filed a civil suit against Attorney General John Formella July 30, according to NHJournal. The complaint was sealed, but documents indicate that Sanborn is seeking some kind of injunction.
Both parties have been engaged in legal limbo for the last year—Formella publicly accused Sanborn of misappropriating over $800,000 in Covid relief funds for his Concord Casino. He reportedly used the money to buy luxury cars and pocketed large sums, but has not been charged.
Sanborn was ordered to sell his casino but the deadline has been pushed to the end of September. He has accused the state of trying to stall a potential sale, and the state has accused him of trying to stall the deadline. Potential suitors for the casino have reportedly been unwilling to pursue the license over the extended drama surrounding it.
Changes Made to Latest Norfolk Casino Proposal
In a presentation to Norfolk’s Architectural Review Board (ARB), officials from HKS Architects unveiled an updated proposal for the Pamunkey Tribe’s Headwaters Resort & Casino, and it appears the name may be dropped after all. According to WAVY, developers were noncommittal with board members about the name and said discussions are still ongoing.
The plans themselves also changed, as the latest proposal features a 200-room, single-phase construction hotel tower as opposed to a 300-room tower as originally planned. The orientation and design of the hotel were also changed.
In order for the project to move forward the ARB must sign off. That could come as soon as next month. Norfolk voters approved a casino referendum in 2020, and state law says that developers have five years to begin accepting bets.
Borgata Fined by NJDGE for Underpaying Taxes
Atlantic City’s Borgata Casino has been fined $75,000 by the New Jersey Division of Gaming Enforcement (NJDGE) for underpaying its state taxes by $365,161 in June. The casino reportedly overstated its iGaming promo credits by over $4.5 million between October 2023 and May 2024.
This is the second time Borgata was found to have underpaid taxes in the last 18 months. In March 2023, the NJDGE discovered that the casino had overstated the promo credits by $10 million, resulting in an underpayment of over $787,000.
According to Casino Beats, NJDGE Director Mary Jo Flaherty said in a letter to Borgata that ““The fact that this conduct was repeated less than 18 months after the Division warned an additional violation of this type could result in a civil penalty is also to be considered.”
NGCB Discusses Potential Expansion of Wagering Accounts
On Aug. 21, the Nevada Gaming Control Board (NGCB) held a workshop discussing the possibility of expanding wagering accounts to be used for other purchases in casino-resorts. Currently, gaming accounts may only be used to fund gaming activities.
The board was supportive of the idea but only if the expansion applies only to casino properties and not beyond them. The idea will require further discussion at a later date.
“The operators are interested in implementing such a change, because significant fees are involved in the movement of money,” said Jennifer Carleton, chief legal officer for Sightline Payments, per CDC Gaming Reports. “If you move money in or out of a wagering account, there’s a fee involved. If there’s an ability to utilize a wagering account directly for funding to obviate some of those fees, that’s going to be a significant saving for the operator. As long as the same safeguards are in place with regard to anti-money laundering that you have with a traditional bank account, it makes sense for an operator to implement that type of a system.”
Red Rock Cleared to Launch Tavern Brand
On Aug. 22, the Nevada Gaming Commission voted unanimously to approve the launch of Red Rock Resorts’ new tavern brand, Seventy Six. The company has two locations set to open in North Las Vegas by the end of the year and seven total by January 2026.
Red Rock attorney Marc Rubenstein told commissioners the expansion is a “natural progression” of the company’s business model. Red Rock previously said it planned to double its Las Vegas footprint by 2030.
The launch of Seventy Six introduces an interesting storyline between Red Rock and Golden Entertainment. Golden, another locals-focused operator, has long dominated the tavern business, with 71 locations. Its CEO Blake Sartini is also the brother-in-law of Red Rock CEO Frank Fertitta III and vice chairman Lorenzo Fertitta.
Alabama Authorities Close 5 Illegal Casinos
On Aug. 19, the Alabama Attorney General’s Office ordered the closure of five illegal gambling facilities in Selma. Temporary restraining orders have been obtained and the properties are blocked from making any financial transactions.
“These facilities are operating with complete disregard to Alabama law,” Attorney General Steve Marshall said, per the Montgomery Advertiser. “I applaud Dallas County Sheriff Granthum’s dedication to combat this blight, and willingness to invite our team to assist in addressing these criminal enterprises.”
Live! Casino Maryland to Announce Grants
The Cordish Companies, Live! Casino & Hotel Maryland and Anne Arundel County LDC officials will host a grant distribution luncheon to announce the recipients of $17.5 million in local impact grants for the 2025 fiscal year.
Cordish Companies Principal Joseph Weinberg, CFO Travis Lamb, Cordish Gaming President Rob Norton, Live! Casino & Hotel Maryland EVP and General Manager Ryan Eller, Anne Arundel County Executive Steuart Pittman and members of the Local Development Council (LDC) will be joined September 10 by funding recipients, including representatives from county operational and capital programs, education, health and human services, and community associations and Anne Arundel County elected officials.
The LDC recommends potential recipients and helps to manage the distribution of the county’s gaming tax revenue to support community organizations working to better the lives of Anne Arundel County residents.
Bally’s Dover Named Favorite in CP Poll
Bally’s Dover Casino announced it has received 10 first-place awards in the Casino Player 2024 Best of Gaming Awards.
The casino was chosen for the following awards among Delaware’s three casinos:
- Favorite Casino Resort to Vacation
- Best VIP Lounge/Services
- Best Hotel Staff
- Best Hotel
- Best Suites
- Best Hotel Lobby
- Best Pool
- Best Carnival Games
- Best Blackjack
- Best Overall Sportsbook
“We are immensely grateful to our dedicated team and loyal guests who made this achievement possible,” said Nick Polcino, Bally’s Dover vice president and general manager. “These accolades are a testament to the hard work and dedication of our entire team, and we are truly honored to be recognized as a leader in the gaming and hospitality industry.”
