New Jersey governor Chris Christie is laying down the law on Atlantic City's casinos. He is giving them the year of 2014 to make strides to improve their financial health. The Press of Atlantic City story quotes Christie:
"It's obviously a critical year because we need to begin to see progress in Atlantic City or we're going to start considering alternatives," and, "It's a year when we have to show some significant results."
Can't be much clearer than that. So, what happens if results aren't obtained? Well, Atlantic City's casino gambling monopoly would be at risk. Competing interests, such as the horse racing industry, are desirous of getting casino gaming at their properties. Another lackluster year out of Atlantic City would only fuel that fire.
How Atlantic City will intend to meet this hurdle is to consolidate - reduce the number of casinos and to an extent, reduce the number of hotel rooms. The remaining casinos would hopefully be in better shape as they will make more money on a per property basis, even if the result would be less overall revenue, from both gaming and non-gaming sources. If not, the competing interests will want to move casino gambling outside of Atlantic City to make their venues more competitive with increased casino gaming in adjoining states like New York, Pennsylvania and Delaware.
Time may be running out on Atlantic City's casino monopoly.
Tuesday, December 31, 2013
Wednesday, December 11, 2013
Common Sense: Casino Gaming Needs to Return to Cuba...Viva Casino!
Professor Nelson Rose, an expert on gaming law, penned a recent article entitled, "Cuba Needs Casinos." In it, he describes past and recent history and noted how when liberalization comes to Cuba (it will, just a matter of time), that casino gaming and the revenues generated therefrom, will help bring Cuba back economically.
They had gambling back before Castro, but organized crime took in the lion's share of the revenues. Now, with regulated wagering in place, all parties will benefit. Notice that governments, even authoritarian ones like Vietnam and China, have casino gambling. It is become apparent that the issue with gambling from governments is not the right or wrong with gambling; it's who is getting the money. If the government is getting enough money, in its view, gambling is fine.
That fact bodes well for Cuba. Proper regulated gambling, coupled with the great resort venue Cuba was, and will be again, makes Cuba an excellent bet for gambling reintroduction. I'm betting on Cuba reintroducing gambling within the next ten years.
Another venue that is a great opportunity for casino gambling is Hawaii. Why there aren't a casino resorts on Waikiki, Kona, Maui and Kauai is a travesty. If Macao and Singapore are enjoying great casino gambling success, just think what success a resort venue like Hawaii would enjoy? They do well now with regard to tourism, but add casino gambling and Hawaii would rival Macao and Singapore with regard to casino revenues. This similar resort locale profile is why there was interest in opening casino gambling in Miami a couple of years back. Sooner or later government will see the light and make a play for that revenue.
As gambling becomes even more mainstream, gambling will be increasingly viewed as a painless tax. If locales like Havana, Miami and Maui embrace casino gambling, Las Vegas will have even more worries.
To check out more of Professor Rose's excellent articles, go to his website.
They had gambling back before Castro, but organized crime took in the lion's share of the revenues. Now, with regulated wagering in place, all parties will benefit. Notice that governments, even authoritarian ones like Vietnam and China, have casino gambling. It is become apparent that the issue with gambling from governments is not the right or wrong with gambling; it's who is getting the money. If the government is getting enough money, in its view, gambling is fine.
That fact bodes well for Cuba. Proper regulated gambling, coupled with the great resort venue Cuba was, and will be again, makes Cuba an excellent bet for gambling reintroduction. I'm betting on Cuba reintroducing gambling within the next ten years.
Another venue that is a great opportunity for casino gambling is Hawaii. Why there aren't a casino resorts on Waikiki, Kona, Maui and Kauai is a travesty. If Macao and Singapore are enjoying great casino gambling success, just think what success a resort venue like Hawaii would enjoy? They do well now with regard to tourism, but add casino gambling and Hawaii would rival Macao and Singapore with regard to casino revenues. This similar resort locale profile is why there was interest in opening casino gambling in Miami a couple of years back. Sooner or later government will see the light and make a play for that revenue.
As gambling becomes even more mainstream, gambling will be increasingly viewed as a painless tax. If locales like Havana, Miami and Maui embrace casino gambling, Las Vegas will have even more worries.
To check out more of Professor Rose's excellent articles, go to his website.
Wednesday, November 27, 2013
New Jersey Taking Sports Betting Fight to US Supreme Court
The Las Vegas Review-Journal reports that Governor Christie of New Jersey is not giving up on the fight to allow sports betting in New Jersey. After the appeals court declined to rehear the case, this is the only option left for New Jersey.
I have provided my views on this several times, where I think New Jersey is in the right in this case. Each state has the ability on their own to decide what kinds of gambling, if any, should exist within their states.
My view is that the Supreme Court will take up this case due to the controversy between federal and state powers, which is the kind of topic the Supreme Court was designed to handle.
Other posts on this topic can be found here, here, here and here.
I have provided my views on this several times, where I think New Jersey is in the right in this case. Each state has the ability on their own to decide what kinds of gambling, if any, should exist within their states.
My view is that the Supreme Court will take up this case due to the controversy between federal and state powers, which is the kind of topic the Supreme Court was designed to handle.
Other posts on this topic can be found here, here, here and here.
Friday, November 15, 2013
New Tribal Casino Near San Francisco Offers Close Alternative to Nevada Casinos
Nevada casinos have been facing the threat from California tribal gaming for years. Having a large property within an hour's drive from San Francisco ups this by a couple of notches. The San Francisco area has around 11 million people. Having a large gaming property within a 60-90 minute drive can not be good news to Lake Tahoe and Reno casino properties.
The Casino Journal reports "after years of planning and 16 months of construction, Graton Resort & Casino officially opened its doors to the public earlier this week. The $800‐million facility is the closest full‐service casino to the Bay Area, and ushers in a new level of sophistication and excitement to Northern California." The property will have 3,000 slot machines and almost 150 table games, along with over a dozen restaurants. This is a big operation and will definitely draw, in my opinion.
What is new is that with this property near San Francisco, this property might draw customers that would have traveled to other Northern California tribal casinos. A previous post regarding a tribal property near a large metro area is here. Do not be surprised if more tribes will attempt to build facilities as close as possible to the major population centers. That effort might run into trouble with regard to on/off reservation regulations regarding properties, historical lands and the like, but with so much money in gambling, the trend is set. Another post regarding tribal casino economic impact can be found here and a post highlighting the strong competition California tribal gaming is to Nevada casinos is here.
I've discussed earlier what Reno and Lake Tahoe casinos could do to combat this threat. It is controversial in nature, but desperate threats could make controversial solutions more palatable. To learn about what Nevada casinos could do to differentiate themselves from California casinos, read this post.
The Casino Journal reports "after years of planning and 16 months of construction, Graton Resort & Casino officially opened its doors to the public earlier this week. The $800‐million facility is the closest full‐service casino to the Bay Area, and ushers in a new level of sophistication and excitement to Northern California." The property will have 3,000 slot machines and almost 150 table games, along with over a dozen restaurants. This is a big operation and will definitely draw, in my opinion.
What is new is that with this property near San Francisco, this property might draw customers that would have traveled to other Northern California tribal casinos. A previous post regarding a tribal property near a large metro area is here. Do not be surprised if more tribes will attempt to build facilities as close as possible to the major population centers. That effort might run into trouble with regard to on/off reservation regulations regarding properties, historical lands and the like, but with so much money in gambling, the trend is set. Another post regarding tribal casino economic impact can be found here and a post highlighting the strong competition California tribal gaming is to Nevada casinos is here.
I've discussed earlier what Reno and Lake Tahoe casinos could do to combat this threat. It is controversial in nature, but desperate threats could make controversial solutions more palatable. To learn about what Nevada casinos could do to differentiate themselves from California casinos, read this post.
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