Category: Casino

  • Advocates Push for Smoke-Free Policies in New Jersey Casinos

    Advocates Push for Smoke-Free Policies in New Jersey Casinos

  • MGM’s BetMGM Platform Poised to Define 2025 Growth Strategy

    MGM’s BetMGM Platform Poised to Define 2025 Growth Strategy

  • Colombia’s Casinos and Bingos Funnel Over $79 Million to Health System in 2024

    Colombia’s Casinos and Bingos Funnel Over $79 Million to Health System in 2024

  • Las Vegas Locals Gaming Market to See Modest Growth in 2025, Deutsche Bank Predicts

    Las Vegas Locals Gaming Market to See Modest Growth in 2025, Deutsche Bank Predicts

    The Las Vegas locals gaming market is on track for modest growth in 2025, buoyed by new developments and tempered by economic challenges, according to Deutsche Bank’s year-end analysis. The report paints a mixed picture, with growth opportunities tempered by operational headwinds, including rising costs and softer same-store revenue trends.

    Durango Casino: A Double-Edged Sword

    Durango Casino & Resort, which opened in late 2023, has been a standout performer, becoming a key driver of market activity. Deutsche Bank projects the property to generate $160 million in EBITDAR in 2024, alongside an estimated $260 million in gross gaming revenue. However, the casino’s success has created ripples in the market.

    • Same-store gaming revenue has declined by 3% year-to-date through October.
    • Market-wide EBITDAR for 2024 is expected to drop by high single digits compared to 2023.

    The cannibalization effect, where new properties pull revenue from existing ones, is contributing to this slowdown. Analyst Carlo Santarelli emphasized that while Durango has outperformed expectations, its broader impact is a cautionary tale for market dynamics.

    Post-Pandemic Growth and Workforce Trends

    Since 2019, the locals market has experienced robust recovery, with gaming revenue growing at an impressive 5.1% compound annual growth rate (CAGR). This outpaces workforce growth, which has been sluggish at just 0.9% CAGR.

    Interestingly, gaming revenue per worker rose by 4.2% over the last 12 months. Santarelli attributes much of this to Durango’s success but warns of potential challenges in 2025 due to slowing workforce growth and tougher year-over-year comparisons.

    Operators’ Strategic Moves for Growth

    Major operators in the locals market, including Boyd Gaming and Red Rock Resorts, are focusing on capital investments to sustain and grow revenue streams.

    Boyd Gaming

    • Renovations at The Orleans and Suncoast are aimed at boosting non-gaming revenue.
    • Suncoast’s overhaul includes a new food hall and expanded meeting spaces.

    Red Rock Resorts

    • Undertaking a $53 million renovation at Sunset Station, causing a $5.4 million EBITDA impact.
    • A $150 million room remodel at Green Valley Ranch is expected to disrupt $11.5 million in EBITDA but yield benefits in 2026.

    Golden Entertainment

    Golden Entertainment, meanwhile, is struggling to keep pace. The operator’s stock performance lagged in 2024, and its market share has declined compared to peers.

    Managing Costs in a Challenging Environment

    Operators are taking a cautious approach to expense growth after the sharp increases seen in 2022. Labor, insurance, and energy costs remain persistent challenges. Santarelli praised the operators’ ability to control costs while adapting to a softer revenue environment.

    “Margins are likely to hold steady with modest revenue growth in 2025,” he said, adding that profitability will depend heavily on revenue performance.

    Mixed Non-Gaming Revenue Outlook

    The non-gaming revenue picture for 2025 is a mixed bag:

    • Boyd Gaming’s renovations could boost revenue in the near term.
    • Red Rock Resorts’ disruptions from renovations might weigh on performance, with benefits likely materializing in 2026.

    These investments highlight a longer-term vision but present short-term hurdles.

    The Path Ahead

    Deutsche Bank described the locals market as “frothy,” reflecting a level of growth that surpasses historical norms. However, the report stresses the importance of sustainable growth. Santarelli concluded that a healthy gaming revenue cadence in 2025 would be crucial for operators like Boyd and Red Rock to outperform.

  • DraftKings and Fanatics End Legal Battle Over Former Executive Michael Hermalyn

    DraftKings and Fanatics End Legal Battle Over Former Executive Michael Hermalyn

  • California Tribes Sue Cardrooms Over Las Vegas-Style Games, Challenging State Gambling Industry

    California Tribes Sue Cardrooms Over Las Vegas-Style Games, Challenging State Gambling Industry

    California’s gambling industry faces a new legal battle as seven Native American tribes have filed lawsuits against dozens of cardrooms, accusing them of illegally offering Las Vegas-style games. The lawsuits, filed on Thursday, aim to reinforce tribal exclusivity over casino games like blackjack and baccarat, a right enshrined in state compacts. This legal move follows the enactment of the “Tribal Nations Access to Justice Act” (Senate Bill 549), which grants tribes enhanced authority to challenge the legality of such games.

    Tribes Push to Protect Exclusive Gaming Rights

    The lawsuit, filed by prominent San Francisco law firm Keker, Van Nest & Peters, underscores a long-standing conflict between tribal casinos and privately owned cardrooms in California. Tribal compacts with the state grant Native American tribes exclusive rights to offer “banked” games—games where the house, or a designated banker, directly pays winners and collects losses.

    “For years, California cardrooms and their partner third-party proposition players have ignored the law and refused to recognize tribes’ exclusive rights,” the complaint states. The tribes allege that these cardrooms have illegally partnered with third-party proposition players who essentially act as the “bank,” creating gaming experiences similar to those in Nevada and New Jersey casinos.

    Who Filed the Suit?

    The lawsuit was brought by a coalition of prominent tribes:

    • Agua Caliente Band of Cahuilla Indians
    • Barona Band of Mission Indians
    • Pechanga Band of Indians
    • Sycuan Band of the Kumeyaay Nation
    • Viejas Band of Kumeyaay Indians
    • Yocha Dehe Wintun Nation
    • Yuhaaviatam of San Manuel Nation

    These tribes argue that the cardrooms’ practices not only violate tribal compacts but also contravene the California Constitution, Penal Code, and relevant judicial rulings.

    Cardrooms Defend Their Practices

    The California Gaming Association, representing the state’s cardrooms, responded forcefully to the lawsuit, asserting that its members operate in full compliance with the law. “This attempt by tribal casinos to shut down lawful competition by tax-paying California businesses will fail,” the association stated.

    The association emphasized the economic benefits cardrooms bring to the state, including thousands of jobs and hundreds of millions in tax revenue. It also highlighted that the games in question are licensed and reviewed by the California Department of Justice, adhering to strict regulatory standards.

    Legal Implications for California’s Gambling Industry

    If successful, the tribes’ lawsuit could significantly alter California’s gambling landscape. The potential shutdown of these card games would impact small, privately owned gambling halls that serve urban and suburban areas. Experts believe this could reshape the industry, consolidating power further within tribal casinos.

    California has long been a battleground for tribal sovereignty and gaming rights. The 1987 Supreme Court ruling in California v. Cabazon Band of Mission Indians affirmed tribal sovereignty over gaming on reservation lands, setting a precedent for tribal casinos across the nation.

    This new lawsuit is a continuation of the struggle to delineate the boundaries between tribal gaming rights and state-licensed cardroom operations.

    Broader Context: Sovereignty and Tribal Identity

    This legal battle in California echoes broader movements by Indigenous tribes nationwide to assert sovereignty and address issues like political representation and tribal membership. For example, the Cherokee Nation is working to reform federal laws governing criminal jurisdiction over tribal citizens, challenging outdated “blood quantum” requirements.

    The lawsuit also reflects a growing willingness among tribes to push back against perceived encroachments on their rights. In California, tribes have consistently advocated for their gaming exclusivity as a critical part of their sovereignty and economic independence.

    What’s at Stake?

    The lawsuit revolves around the economic and cultural stakes of tribal exclusivity in gaming:

    • Economic Impact: Tribal casinos are a vital economic engine for many Indigenous communities. They argue that cardrooms’ actions undermine this source of revenue.
    • Legal Precedents: A ruling in favour of the tribes could reinforce their exclusive rights and establish a precedent for similar disputes nationwide.
    • State Revenue: Cardrooms contribute significantly to state and local tax revenues, and any disruption to their operations could have broader fiscal implications.

    Table: Key Facts About the Lawsuit

    Aspect Details
    Plaintiffs Seven Native American tribes
    Defendants Dozens of California cardrooms
    Key Issue Legality of offering “banked” games like blackjack
    Law in Question Tribal Nations Access to Justice Act (Senate Bill 549)
    Potential Impact Possible shutdown of Vegas-style games in California cardrooms
    Plaintiffs’ Argument Cardrooms violate tribal exclusivity by using third-party “bankers.”
    Defendants’ Defence Cardrooms operate legally under state oversight.

    Future of California Gambling Hangs in the Balance

    As this legal battle unfolds, the implications extend beyond the courtroom. The outcome could redefine how gambling operates in California and influence similar disputes across the United States. For now, the stakes remain high, with tribal sovereignty and economic interests at the forefront of the debate.

  • Mississippi Set for 2025 Showdown Over Online Sports Betting

    Mississippi Set for 2025 Showdown Over Online Sports Betting

    Mississippi lawmakers are gearing up for a heated debate on online sports betting as the 2025 legislative session approaches. After previous efforts failed to cross the finish line, advocates and opponents are preparing for another round of discussions that could reshape the state’s gaming landscape.

    The 2024 Push That Stalled

    In 2024, Mississippi House Bill 774 passed overwhelmingly in the House (97-14) and cleared the Senate with a 36-15 vote. However, progress stalled when a bipartisan conference committee failed to reconcile key disagreements, leaving the bill unresolved. The session ended without a consensus, highlighting the divisions over licensing, taxation, and the broader implications for Mississippi’s gaming industry.

    Central to the stalemate were concerns about licensing frameworks and the exclusion of online casino gaming. Some senators expressed fears that online sports betting might harm the state’s 26 commercial casinos, a critical economic driver generating $2.5 billion in gross gaming revenue annually. Others argued that a narrow focus on sports betting was short-sighted, given the rapid evolution of online gambling in neighboring states.

    Casinos Weigh In: A Boost or a Threat?

    Mississippi’s commercial casinos, including MGM Resorts and Caesars Entertainment, strongly back the legalization of online sports betting. They argue that online platforms would complement, not compete with, their physical operations. Proponents claim that allowing online sports betting could help Mississippi retain its competitive edge in the gaming market while addressing the growing issue of illegal offshore betting.

    Casinos’ support stems from a financial reality. States like New Jersey demonstrate that online platforms dominate the sports betting market. In 2024, New Jersey’s online sportsbooks brought in $130.3 million in tax revenue, dwarfing the $2.8 million from brick-and-mortar locations.

    Meanwhile, Mississippi’s restrictive policy—limiting sports betting to in-person wagers at casino properties—has pushed residents toward illegal platforms or into neighboring states like Louisiana and Tennessee, where online betting is legal.

    Lawmakers’ Mixed Signals

    State Senator David Blount, chair of the Senate Gaming Committee, has indicated a cautious approach. While open to considering a Senate bill, he stressed the importance of consumer protections and a narrow focus on sports betting. Blount’s stance reflects a broader concern: how to balance the economic benefits of online betting with the potential risks to local casinos and consumers.

    On the other side, the Mississippi Gaming Commission (MGC) has taken a neutral stance. Executive Director Jay McDaniel highlighted that while online betting is technically legal within casino premises, the commission has not pushed for legislative changes. McDaniel emphasized that any proposed bill would need to align with state interests and include robust safeguards.

    Economic Stakes: Revenue and Competition

    Proponents of online sports betting point to significant economic opportunities. The 2024 bill estimated $25 million in annual tax revenue, earmarked for critical infrastructure improvements. For comparison, states like New Jersey and Pennsylvania have reaped substantial financial rewards from legalizing online platforms. Mississippi, with its strong gaming tradition, could capture a share of this growing market while curbing illegal gambling.

    Mississippi’s neighbors have already embraced online sports betting:

    • Louisiana: Launched online wagering in 2022, capturing millions in monthly revenue.
    • Tennessee: Operates an entirely online sports betting market.
    • Arkansas: Expanded to include online sports betting in early 2022.

    These states provide easy access for Mississippi residents, further highlighting the competitive pressures facing local casinos.

    Challenges Ahead

    Despite the potential benefits, opposition remains strong. Critics argue that expanding online betting could exacerbate problem gambling and harm the state’s brick-and-mortar casinos. The debate also extends to the scope of legalization—whether to include online casino gaming alongside sports betting.

    Another hurdle is the lack of a unified legislative front. The split between the House and Senate in 2024 reflects deeper disagreements over how to structure and regulate the market. Without a clear consensus, passing a bill in 2025 could prove just as challenging.

  • Vietnam Suspends Local Gambling Trial at Phu Quoc’s Corona Resort

    Vietnam Suspends Local Gambling Trial at Phu Quoc’s Corona Resort

    Vietnam’s groundbreaking pilot program allowing its citizens to gamble at the Corona Resort & Casino on Phu Quoc Island has officially ended. The initiative, which began in 2019, was halted on December 31, 2024, with the suspension taking effect from midnight on January 1, 2025. The government has provided no timeline for its reinstatement.

    A First for Vietnamese Gamblers

    This trial marked a historic shift in Vietnam’s stance on gambling. Previously, locals were barred from casinos, which catered exclusively to foreign visitors. Under the pilot, Vietnamese citizens could gamble provided they met stringent criteria, including a minimum monthly income of VND10 million ($400) and payment of entry fees set at VND1 million ($25) per day or VND25 million per month.

    The program aimed to assess whether legalizing local participation could help curb gambling tourism abroad and boost domestic economic growth. Initially set to conclude in 2022, the pilot was extended due to the disruptions caused by the COVID-19 pandemic.

    • Entry requirements included proof of income and payment of fees.
    • Corona Resort & Casino was the only venue authorized for local participation.
    • The program was seen as a potential solution to Vietnam’s outbound gambling activities.

    Financial Struggles Despite Growing Tourism

    While the trial had its merits, it didn’t come without challenges. Corona Resort & Casino reported significant financial losses of VND300 billion ($12.7 million) in the first half of 2024. High operational costs, including depreciation and interest expenses, were compounded by a drop in local participants, contributing to these struggles.

    However, the broader tourism landscape in Phu Quoc tells a different story. The island saw a sharp rise in visitors, hitting 6 million in 2024—a 49% increase compared to 2019. With substantial investments of VND388.41 trillion in its tourism infrastructure and favourable visa policies, Phu Quoc has emerged as a global travel hotspot. Esteemed publications like Travel+Leisure and Condé Nast Traveler have spotlighted it as a top destination for 2025.

    A single paragraph here highlights Phu Quoc’s resilience, despite the casino’s financial issues.

    The Future of Local Gambling in Vietnam

    The conclusion of this pilot program has left the future of local participation in Vietnam’s casino industry in limbo. A second venue in Van Don, which was approved under the program, remains unopened. This has raised questions about whether the government will pursue similar initiatives or focus solely on foreign patrons in the long term.

    The suspension doesn’t affect foreign visitors, including Vietnamese nationals holding foreign passports, who remain eligible to gamble at the resort.

    Challenges and Considerations:

    • Will the government explore alternative approaches to integrating locals into casino operations?
    • How might economic pressures influence future policy decisions?

    Optimism Amid Uncertainty

    Despite the suspension, Corona Resort & Casino remains optimistic about the potential reinstatement of the program. In a statement, the casino expressed gratitude to its customers and hope for the future. “We firmly believe that, with proper adjustments, we will soon resume operations to serve our valued customers and partners,” the resort noted.

    The casino’s commitment reflects broader optimism about the potential for casino gambling to play a role in Vietnam’s economic strategy. Whether through reintroducing the program or developing new models, the industry’s path forward will be closely watched.

  • Blackjack Player Sues Horseshoe Baltimore and Caesars Entertainment for $3 Million Over Alleged Unlawful Detention

    Blackjack Player Sues Horseshoe Baltimore and Caesars Entertainment for $3 Million Over Alleged Unlawful Detention

  • Virginia Breaks Sports Betting Records in November: A Banner Month for Revenue and Handle

    Virginia Breaks Sports Betting Records in November: A Banner Month for Revenue and Handle

    Virginia’s sports betting industry reached unprecedented heights in November, smashing records for both revenue and betting handle. The latest data from the Virginia Lottery paints a vivid picture of a state embracing sports wagering with remarkable enthusiasm and profitability.

    A Historic Surge in Revenue

    November saw Virginia’s gross sports betting revenue soar to $80.6 million, a figure that dwarfs November 2023’s earnings by an impressive 121.4%. It also stands 64.5% higher than the previous month, October 2024. This surge eclipses the earlier adjusted gross revenue (AGR) record of $67.5 million, set in January 2024, by a substantial 19.4%.

    Interestingly, nearly all AGR—$79.9 million—originated from online betting platforms. Traditional retail sportsbooks contributed a modest $666,689, highlighting the dominance of mobile and online betting in the state.

    Handle Hits New Heights

    November’s sports wagering handle climbed to an all-time high of $761 million. This is the second consecutive month Virginia has set a new record, breaking October’s $696.1 million mark by 9.3%. It’s also the first time the state surpassed the $700 million milestone in a single month.

    • Online bets: $756.8 million
    • Retail bets: $4.2 million

    Players reaped $674.6 million in winnings, leaving sportsbooks with a hold rate of 10.60%, a healthy margin reflecting both player interest and operator efficiency.

    Record-Breaking Tax Revenue

    The surge in activity also meant a windfall for the state, which collected an all-time high of $12.1 million in sports betting taxes. Of this, $11.8 million was channelled into the General Fund Allocation, supporting essential public services. Another $302,529 went to the Problem Gambling Treatment and Support Fund Allocation, demonstrating the state’s commitment to responsible gambling initiatives.

    Virginia’s sports betting tax rate of 15% on adjusted gross revenue has proven to be a robust revenue generator. The previous monthly high for tax revenue was January 2024, with $9.9 million collected—a mark November comfortably surpassed.

    A Snapshot of Monthly Growth

    The figures underline a year of rapid growth for Virginia’s sports betting industry, particularly in November 2024:

    Metric November 2024 October 2024 November 2023 % Change (YoY)
    Gross Revenue $80.6 million $49 million $36.4 million +121.4%
    Handle $761 million $696.1 million $638.8 million +19.1%
    Taxes Collected $12.1 million $9.9 million $7.2 million +68.1%

    Online Betting Takes the Lead

    One standout trend is the dominance of online betting. Of the $761 million total handle, $756.8 million came from online platforms, a staggering 99.45%. Retail betting at land-based casinos accounted for a mere $4.2 million. This shift underscores the convenience and accessibility of mobile betting apps, which continue to outpace their brick-and-mortar counterparts.

    Implications for the Industry

    Virginia’s sports betting boom has implications that extend beyond its borders. The state’s success story could influence other regions considering the expansion of gambling legislation. The record-setting numbers also highlight the potential for robust tax revenues, which can fund state programs and services.

    The Problem Gambling Treatment and Support Fund Allocation’s growth indicates a responsible approach to addressing gambling addiction risks. By earmarking funds for prevention and treatment, Virginia ensures its gambling industry operates with public welfare in mind.