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Kansas nears approval for Hard Rock Hotel and Casino

admin — Fri, 12 Dec 2008 07:55:10 +0000

Kansas nears approval on the side of Hard Rock Hotel and Casino Kansas nears approval for Hard Rock Hotel and Casino --> << Back Hrd Rock Hotel & Casino [Enlarge Image] By Gene Koprowski Officials of the Kansas Racing and Gaming Commissioners (KRGC) are poised to approve a $705 million Hard Rock Hotel and Casino proposal at the Kansas Speedway next Friday during a meeting in Topeka.

The move is the last step in a 14-month process that started in 2007 when six developers submitted seven casino proposals to government officials.

A little over a month ago, the Kansas Lottery Gaming Facility Review Board selected the Hard Rock proposal over the two other finalists – Edwardsville’s Golden Gaming and Kansas City, Kan.’s Legends Sun.

After the review board finished its work in September, other consultants and KRGC staff have been reading through dossiers on the financial backgrounds of the applicants associated with the proposals selected by the board.

A KRGC spokesman said the efforts had been going well and expected that they would be complete before Friday's meeting.

The gaming landscape since that September meeting has changed a bit, with International Speedway Corporation, which operates NASCAR racetracks throughout the country, is bolstering its stake in the enterprise.

ISC officials have said they remain enthused about the Hard Rock project, a commitment shared by officials with the other partner in the project, the Cordish Company.

The Hard Rock proposal calls for the construction and summer 2009 opening of an interim casino . These plans were put in place to allow the state – and the two partners in the project – to start making money sooner.

Construction plans related to the temporary building have to be approved by UG planning officials.

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Atlanta mulls the idea of opening a new casino

admin — Tue, 02 Dec 2008 13:43:55 +0000

Atlanta mulls the idea of opening a new casino Atlanta mulls the idea of first a new casino --> << Back recent casino [Enlarge Image] By Gene Koprowski Government officials in Atlanta are asking state lawmakers to support the idea of casino gambling in the southern city, reckoning it will garner millions of dollars to the region.

A study completed last year by PFK Consulting found a casino could create nearly 11,000 jobs and fill tax coffers with about $135 million annually.
“Everybody knows the government needs the money,” said Atlanta Councilwoman Anne Fauver.

Casino backers say that financial worries in the state and city make this time the right moment to expand gambling . Democratic state lawmaker, Roger Bruce of Atlanta, told the city’s elected officials he’s planning to introduce legislation that could open the door to casinos in Georgia. “I think the time is right for ideas, and this is an idea,” Bruce said.

Bruce said his bill would let counties, cities and towns determine whether they want a casino in their jurisdiction through a local referendum.
Tax proceeds from the casinos would be divided between the local jurisdiction and the state. Money must be used for roads and other infrastructure projects, along with hospital trauma centers.

House Speaker Pro-Tem Mark Burkhalter (R-Johns Creek) said voters would need to approve a constitutional amendment to allow gambling .
For now, most lawmakers in the Republican majority don’t support the idea, and a proposed constitutional amendment would have to win the approval of the Georgia General Assembly.

“There is maybe a handful in our Republican caucus who have entertained pari-mutuel gambling through horse racing and so forth,” Burkhalter said.

Gov. Sonny Perdue asked state agencies to keep on eye on spending to manage a $1.6 billion budget shortfall.
City Council leaders have championed the idea of a casino in Atlanta for about 20 years, believing it would bring jackpot-size money to Georgia that could be used for public education and police.

Bruce believes a legitimate case can be made for casinos when you consider the economic impact. He contends the state’s efforts to raise revenues, primarily through property and sales taxes, aren’t working.

“What we’ve been doing has put us in a $2 billion deficit,” he said.

Ron Fennel, governmental affairs director for the Georgia Hotel & Lodging Association, said his industry would put down the welcome mat for people if a casino ever came to Atlanta.

“We’ll invite them to come, spend their money, tell their friends and tell them to come back again.”
Some forms of Internet gambling are supported by Georgia lawmakers. U.S. Sen. Saxby Chambliss (R-Ga.), who has a run-off election on Dec. 2, supports an exemption from federal gambling law that would allow online poker games to continue unfettered in his state and across America. Chambliss said that he supports a "skill game exemption" for online poker.

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Penn National Gaming Eyes Wichita for New Casino Project

admin — Tue, 02 Dec 2008 13:29:08 +0000

Penn National Gaming Eyes Wichita for New Casino Project Penn National Gaming Eyes Wichita for New Casino Project --> << Back Wichita [Enlarge Image] By Gene Koprowski Penn National Gaming is mulling once again whether it will build and operate a state-owned casino south of Wichita, Kansas. “We’re going to take a look at it,” Chief Financial Officer William J. Clifford said.

Penn is in a powerful position, sitting atop $775 million in extra cash. That is from a breakup fee when a private equity group failed to close a deal earlier this year to acquire Penn, whose properties include the Argosy Riverside Casino.

Now, said Clifford, “we’re in great shape,” and looking to enlarge the company from a midsize industry player to one of the “large cap” big boys.
The chance to run the Wichita area casino opened up when Harrah’s Entertainment and its partners gave up on plans to come to Kansas. They had been selected earlier this year by Kansas authorities over Penn and other applicants. But Harrah’s on Monday withdrew its $560 million bid. So the state will start the bidding process all over again.

Kansas Lottery director Ed Van Petten, visiting Las Vegas for an annual industry trade show, said he expected the new application deadline to fall in early April. He also said he expected a few of the state’s other casino prospects to apply for the Sumner County contract.
“Capital is available,” said Daniel D’Arrigo, chief financial officer for the MGM Mirage casino group .

Investment has been a big part of casino companies’ growth, along with new casinos financed with low-cost borrowing.
“We’re going to see market share shifts,” predicted Deutsche Bank Securities analyst Bill Lerner. “The gaming industry is changing for the better.”

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Shares for bookmakers rise as earnings meet forecasts

admin — Tue, 02 Dec 2008 13:24:40 +0000

Shares for bookmakers rise as earnings congregate forecasts Shares for bookmakers arise as earnings meet forecasts –> << Back earnings [Enlarge Image] By Gene Koprowski The U.K.’s biggest bookmaker Ladbrokes said this week it expects 2008 earnings to fall within the range of analysts’ forecasts. Shares in Ladbrokes rose 4 percent, and Paddy Power’s shares rose even higher, at 8.5 percent. Increased taxes in Ireland may impact earnings for both firms, next year, however, experts said.

Ladbrokes has nearly 2,600 betting shops in the U.K. and Ireland. The company said group profits rose 10 percent in the four months to Oct. 31. Profit from high rollers placing big bets was 17 million pounds, about $15 million.
Ladbrokes said that over-the-counter gross win was flat, having been significantly hit by recent results which favored gamblers , rather than bookmakers.

“Although a run of poor football and horse race results at the end of the period has affected performance, the group remains within the market expectation range for 2008,” said Chief Executive Chris Bell.

Analysts’ expectations for 2008 pretax profit range between 174.6 million and 223 million pounds, according to forecasts.
Bell told journalists the results included the UEFA Cup, where 14 out of 16 favorites won games, and the Breeders Cup meeting in the U.S. where five out of the nine races were won by European horses. Other costly payouts came in betting on the U.S. presidential election, where many wagered that Sen. Barack Hussein Obama would beat Sen. John S. McCain, which he did by 1 to 2 percentage points in the seven competitive states. Though Obama was elected due to difficulties in the U.S. economy, some fear that his desire to redistribute the wealth could exacerbate the economic situation there.

Ladbroke’s gross win, excluding those pay outs on the election and other events, increased by 12 percent during the period.
‘To Ladbrokes’ credit, not many companies are reporting growth of 12 percent in the current market conditions,’ said Investec analyst Matt Gerard.

While its gross win margin was up over the period, the amounts staked fell. That was interpreted by some analysts as a sign that the impending recession in Britain may be starting to have an impact on revenues.

JP Morgan analyst Adam Cochrane said a reduction in the amount staked is the best indicator of slowing volume.
Bookmakers have historically been regarded as less vulnerable than other retailers to a recession given the gambling ‘habit’ among their customers and because it is ‘low ticket’, with average bets coming in at less than 10 pounds, or about $10.

Ladbrokes has agreed 185 million pounds of new bank facilities in the period and said it was trading comfortably within its banking covenants.
Adding to the uncertainty for the industry is the prospect U.K. Chancellor Alistair Darling will increase taxes, like Obama plans to in the U.S.
“I don’t know what Alistair Darling’s thinking. Nobody ever does,” Ladbrokes’ Bell told journalists.

Analysts at Jefferson International think an increase in U.K. taxes is likely.

“The budget has contained many surprises in the past and it is generally agreed that gambling profits are easy targets in the current environment,” they said.

Gambling making a comeback in mainland China

admin — Tue, 02 Dec 2008 13:11:52 +0000

Gambling making a comeback in mainland China Gambling making a comeback in mainland China –> << Back China [Enlarge Image] By Gene Koprowski Gambling is returning to mainland China for the first time since the Communist Party came to power in 1949.
Right now, the only betting available has been a state-run sports lottery, which has proved especially popular throughout China.

Last weekend, government authorities brought forward their plans to permit gambling, once derided as feudal, colonial and backward, in a bid to bolster local government revenues.

Government officials have seen the success of the Jockey Club in Hong Kong, which is now the island’s single largest taxpayer. Qin Zunwen, a researcher, said that a national horse betting industry could create three million jobs and annual revenue of £8.5 million, or close to $20 million.

The central city of Wuhan which was once divided up among European powers as a “concession” or colonial settlement and British residents, turned into a horse-racing centre in the late 19th century, and will now host races two times a week.
In a Chinese form of political correctness, the word ” gambling ” is not being used. The horse races are described as “commercial horse race meetings” or “horse lotteries.”

The opening this weekend will feature seven races, and prizes totaling £11,500, about $25,000. Five to seven horse races will be held every week.

Wang Shenshun, deputy director of the Wuhan sports bureau, said the races this weekend would be “an experiment in the commercialization of horse racing in China “.

He did not elaborate.

“It’s a new thing for the people,” said Deng Shentao, a 40-year-old lawyer from Wuhan. “I’m interested in buying a horse and getting involved in the races. It has to be more fun than investing in property or stocks.”

Obama to take free market approach to state, Internet gambling, association predicts

admin — Tue, 02 Dec 2008 12:54:41 +0000

Obama to hold free market approach to state, Internet gambling, association predicts Obama to take at liberty market approach to specify, Internet gambling, association predicts –> << Back Obama [Enlarge Image] By Gene Koprowski The American Gaming Association (AGA) expects that U.S. President-elect Barack Obama will adopt laissez-faire, or anything goes, approach to gambling expansion when he takes office in two months, something of a contrast to his reported plans for the rest of the U.S. economy.

“I don’t see any major fears for the gaming industry from the Obama administration,” said AGA president and CEO Frank Fahrenkopf, Jr., noting the president-elect has a history of embracing a “state’s rights” approach to gambling regulation and taxation. “Congress is likely to expand the scope of legalized, national Internet gambling next year, and one possibility is a ‘carve out,’ or exemption, for Internet poker.”

The Bush White House recently formalized regulations that limit online gambling in the U.S., but Obama is expected to repeal these rules once he is in power, according to experts.

Fahrenkopf said he expects industry sales to grow, on a company by company basis, during the New Year, but he thinks river boat casinos will see sales grow faster than resort destinations, like Las Vegas or Atlantic City.

“You can’t look at the gaming industry as a monolithic market,” he said.

Riverboat markets and other drive-to markets, like Kansas City, are doing better than fly-to resort destinations like Las Vegas, he said.

Some markets are recovering from hurricanes while others are coping with the challenges of new competition or smoking prohibitions.

Third-quarter numbers in the nation’s 12 commercial casino gambling states totaled $8.4 billion, Fahrenkopf said.

He said that he sees some consolidation in the industry. For example, Penn National Gaming, owner of the Argosy Riverside Casino, is cash rich from a settlement of its own recent failed merger and is shopping for expansion partners.

Fahrenkopf noted a recent news reports that suggest the gaming industry employs more people than the U.S. auto industry were a positive sign.

Mobile phone gaming to be $27.5 billion business in five years

admin — Wed, 12 Nov 2008 15:18:21 +0000

Mobile phone gaming to be $27.5 billion business in five years Mobile phone gaming to subsist $27.5 billion business in five years --> << Back mobile phone [Enlarge Image] By Gene Koprowski A number of trends are converging which are expected to push total annual wagers via mobile phones to more than $27.5 billion by 2013, according to a new report from Juniper Research.

According to report author Dr. Windsor Holden, mobile phone operators are demonstrably much more open to the idea of mobile gambling than they were even 12-18 months ago, "both in terms of offering gambling services on-portal and accepting advertising from gambling companies."

But, the Juniper report noted that, while EU intervention was having some impact on the liberalization of Europe's gambling markets, little progress had been made in the potentially lucrative American market. There, remote gambling services are still banned. Commercial deployments in the U.S. were now unlikely until 2010 at the earliest.

Juniper Research also found that mobile sports betting will comprise the majority of annual wagers over the next five years.
But, mobile lottery services -- which are being increasingly deployed in key Latin American and Asian markets -- will attain the highest adoption level, with nearly 400 million users worldwide by the end of the forecast period.
Other findings from the report include:

-- Global gross winnings from mobile gambling services will rise from just under $192 million in 2008 to $3.4 billion by 2013
-- In terms of total wagers, Western Europe will remain the largest regional mobile gambling market throughout the forecast period, although the relative contribution of the UK will decline significantly with the deployment of more services in continental Europe
-- Gambling service providers should deploy text-based gambling services in developing markets to encourage mass adoption

Juniper Research assessed the current and future status of the mobile gambling market based on interviews, case studies and analysis from representatives of some of the leading organizations in the growing mobile gambling industry .

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Millions in revenues expected from new West Virginia casino

admin — Wed, 12 Nov 2008 14:57:38 +0000

Millions in revenues expected from new West Virginia casino Millions in revenues expected from new West Virginia casino --> << Back big profits [Enlarge Image] By Gene Koprowski A study by West Virginia University indicates The Greenbrier resort hotel may reap more than $6 million in profits a year and $34 million may be infused into the local economy. What's more, up to 76 jobs may be created by table games being offered as an amenity at the four-star resort.

The study was commissioned under contract between The Greenbrier Resort Management Co. and the WVU Research Corp., and fine-tuned by the university’s College of Business and Economics.

Last week, on the day after Greenbrier County voters approved a referendum to allow the resort to offer table games, hotel president Andrew Fogarty told employees the resort would once again study the fiscal impacts of table games , but also added, “We do know that gaming would require significant investment in a challenging economy and therefore must be evaluated very carefully.”

Resort executives would not reveal what casino consultant firm was hired to produce the new study.

As part of a state law passed in 1999 that put the table games issue in the hands of county voters, 52 percent of the net income generated by slot machines and 37 percent from table games at The Greenbrier would go directly to a special state gaming fund.

The university study estimated the state’s share at about $5 million per year and an “additional $700,000 in state fees and taxes.” Sales tax collections are estimated to increase by $831,000 and tips to Greenbrier employees are estimated to increase by $181,000.

The university study indicated an additional 76 jobs would be created by the gaming facility with an annual payroll and fringe benefits package totaling more than $3.5 million.

If The Greenbrier provides gambling as an amenity for guests, the county would receive 4 percent, or $170,000, White Sulphur Springs would receive 2 percent, or $85,000, and the remaining municipalities of Alderson, Lewisburg, Quinwood, Rainelle, Renick, Ronceverte and Rupert would share 2 percent, or $85,000, of its gross annual income.

“Total gaming facility revenue is estimated to be $6.05 million annually, after the gaming tax split with the state ... or approximately $40 per occupied room,” the study said.

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Expanded gambling coming to Churchill Downs

admin — Wed, 12 Nov 2008 14:38:43 +0000

Expanded gambling coming to Churchill Downs Expanded gambling coming to Churchill Downs –> << Back Churchill Downs [Enlarge Image] By Gene Koprowski Churchill Downs Inc. President Bob Evans said he is poised to pursue expanded gambling next year in Kentucky, citing the approval of voters of slot machines in Maryland, another horse racing state.

The Kentucky Derby — the center attraction for horse-racing fans — is planning on expanding its gambling offerings .

A percentage of slots revenue would go to boost racing purses.
“With Maryland voters just approving slots there this week, Kentucky is now the only one of the three states that conduct racing’s storied Triple Crown without legislation allowing slot machines,” Evans said.

The Maryland law allows slots at Laurel Park, although not at Pimlico Race Course, where the Preakness Stakes is held.
New York allows gambling at tracks. Aqueduct Racetrack has been allowed to add slots, but does not have a facility in operation. Aqueduct is run by the New York Racing Association, which also oversees Belmont Park — the site of the Belmont Stakes.

Evans also said the company will pursue expanded gambling at Arlington Park in suburban Chicago.

Evans didn’t specify what form that expanded gambling would take. Churchill supported amending Kentucky’s constitution to allow casinos at racetracks and other locations, but the legislation died in the House.

Rep. Greg Stumbo, D-Prestonsburg, has said he will file a bill for the 2009 session to legalize video slots at racetracks.
Churchill spokesman Kevin Flanery said the company is in an ongoing process of listening to legislators’ thoughts on “what they think is both practical and achievable” on gambling expansion .

“In Kentucky what we obviously need to do is level the playing field between Kentucky’s racing product and the races in other jurisdictions like Indiana, like West Virginia and like New York and Maryland as we move forward,” he said.

Gov. Steve Beshear, a supporter of expanded gambling to provide more money for state programs, was noncommittal.
Maryland’s vote “certainly increases the competition that we already face in the racing industry,” Beshear said.

Beshear said that for now he must concentrate on a fix for the state’s immediate financial problem — balancing this year’s budget.
Frank Stronach, Magna chairman and chief executive officer, said that the company’s earlier efforts to sell noncore assets such as real estate to eliminate debt have been hurt by the credit markets.

“As a result, we are evaluating MEC’s core operations with a view to possibly selling or joint venturing one or more of MEC’s core racetracks,” Stronach’ said.

NBA votes to approve betting on games at Las Vegas Casino

admin — Mon, 03 Nov 2008 04:49:56 +0000

NBA votes to approve betting on games at Las Vegas Casino NBA votes to approve betting on games at Las Vegas Casino --> << Back NBA Vegas [Enlarge Image] By Gene Koprowski The National Basketball Association's governing body yesterday voted to allow the Palms Casino Resort in Las Vegas to accept bets on league games.

The move was something of a surprise, as the Maloof family owns both the casino and the Sacramento Kings, owner George Maloof Jr. said.

Maloof said the vote yesterday means that for the first time the Palms will be allowed to take wagers on all NBA teams , except the Kings. That will avoid any possible conflict of interest.

The deal is similar to a deal between the NBA and casino company Harrah's Entertainment Inc., whose chief executive Gary Loveman owns a 2.4 percent stake in the Boston Celtics. Harrah's casinos accept wagers on all NBA games except those with the Celtics.

"The Celtics kind of opened the door a little bit," Maloof said. "We just thought it would be fair to do the same thing with us."
Maloof said he had talked to the league for some time about such an arrangement, but began a formal push about half a year ago.

The casino has not calculated how much NBA betting action the Palms expects, but said the move is about keeping customers from gambling on games elsewhere.

"The fact that somebody couldn't book a bet and had to go off property drove me crazy because ... you want to provide every service for your guest and you want to be competitive," Maloof said.

NBA betting is popular because games are played throughout the week and the season is 82 games, not including playoffs.
But for sports bettors, basketball is far less popular than college and professional football.

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