Except for Louisiana and Mississippi, gaming is showing growth, even if it is
relatively slow. For the stock market the year is winding down by winding up;
and gaming stocks are gaining back some of what they have been losing for the
last couple of months. Unemployment is down, job creation is up; the holiday buying
season, which kicked off the day after Thanksgiving, appears to be set for great
results. Even the two economic monsters of the year, crude oil prices and interest
rates, are taking a break; with reserves larger than predicted, oil is selling
at less than $60 a barrel and the feds promise they have raised interest rates
enough for the time being and are going to take a break. All of that is good news
for the gaming industry and should lead to a strong close of the year and strong
beginning to 2006.
Iowa October gaming revenues were up 0.3% to $92.2 million. Riverboat revenues
fell 1% while racinos were up 3%. Alan R. Woinski, Gaming Industry Weekly
Report, 11-14-05
Illinois October casino win rose 2.2% to $149 million. Alan R. Woinski, Gaming
Industry Weekly Report, 11-14-05
Nevada casino gambling revenue increased 9.63 percent in September from a
year earlier to $1.01 billion. Reuters, 11-10-05
Atlantic City October gaming revenues grew 10.3% year-over-year to $427.9
million from $388.1 million. Hotel Interactive, 11-11-05
Missouri's 11 casinos took in gross revenues of $128.7 million, up a modest
2.2 percent from October 2004. Rick Alm, Kansas City Star, 11-16-05
Connecticut casino revenue
grew slightly, to $141.6 million for October.
Rick Green, Hartford Courant, 11-16-05
Louisiana October gaming revenue fell 4% to $154 million. Alan R. Woinski,
Gaming Industry Weekly Report, 11-21-05
Mississippi October gaming revenue fell 34.8% to $140 million. Alan R. Woinski,
Gaming Industry Weekly Report, 11-28-05
Indiana October gaming revenue rose 0.5% to $201.3 million. Alan R. Woinski,
Gaming Industry Weekly Report, 11-28-05
When momentum switches, it switches. Immediately after Hurricane Katrina, it
looked like all of the opponents of gaming had suddenly come alive and were
going to attack gaming everywhere. In November, however, gaming got some different
news in the form of some research and polls. First, a professor at Purdue released
a study that draws a simple conclusion; people who gamble spend more in general
on entertainment. Why is that good news? In my opinion because it just says
that people who like to go out, like to go out, and a casino is just one of
the places that they like to go. Nothing moral in the conclusion, and the people
who gamble are not flawed, weak or in need of protection, they are just "out-going."
The second bit of news supports the conclusion that regular people are the people
who like to gamble. The survey targeted attitudes toward Indian gaming, but
included some other more general attitudes; 70 percent of the population is
in favor of legalized gaming, a number that continues to grow year over year
according to the survey.
Families that spend significant money on gambling are likely to also spend
more at restaurants or on alcohol and less inclined to save, a Purdue University
economist said. Larry DeBoer, a professor who often studies state tax policy,
told state lawmakers and others that it is unclear whether gambling causes
some families to save less or whether it is simply one part of their propensity
to spend more. DeBoer spoke Monday to state officials and organizations gathered
in the Indiana House of Representatives chamber for a family impact seminar
sponsored by Purdue. He used data from the federal Consumer Expenditure Survey,
conducted by the U.S. Census, to try to answer questions that typically emerge
during debates about gambling including: What would families be buying if
they weren't spending money on gambling? Can the taxes generated by gambling
be considered new revenue, or would they have been collected from other purchases
if not spent on gambling? DeBoer said neither question could be answered definitively
using the federal data. But he said gambling tax revenue probably can be considered
largely new money. Associated Press, Indianapolis Star, 11-23-05
There's a growing belief that Native American tribes, along with America
at large, are winning with Indian gaming, according to newly released survey
data. About 67 percent of the 1,000 U.S. residents responding in this year's
survey for the National Indian Gaming Association supported Native American
casinos, up from 64 percent in a 2002 survey
And 72 percent, 14 percentage
points more than three years ago, believed tribal gaming benefits states and
local communities.
Among the other results of the survey: 29 percent
of respondents opposed legalized gambling, down from 36 percent in 2002. In
both years' surveys, 7 percent more people supported Indian casinos than Las
Vegas-style, corporate-run casinos. About 79 percent felt tribal gaming enables
Native Americans to be self-reliant, up from 73 percent in 2002. Andy Behrendt,
Green Bay Press Gazette, 11-22-05
Although there are still opponents, in light of the growing acceptance of gaming
in general, they seem more like lone crusaders than leaders with a large constituency
behind them. Take Reverend Tom Grey, for example; he travels to every battle,
but he doesn't seem to have many peers and at this point looks more like Don
Quijote than King Richard leading the faithful to liberate the holy land.
National anti-gambling proponent, the Rev. Tom Grey, is returning to help
a local group oppose a proposed Turtle Mountain Indian casino in Grand Forks.
Grey has visited Grand Forks several times during the past decade to warn
North Dakotans against allowing video gaming machines that act like miniature
"casinos" and to compare the lottery to an "entry-level drug."
Grey, a Methodist minister from Illinois, travels across the country to speak
on behalf of the National Coalition Against Legalized Gambling, and he is
executive director of the National Coalition Against Expansion of Gambling.
Grand Forks Herald, 11-22-05
Pennsylvania is still in "the process" of developing its gaming industry
and welcoming the long heralded 60,000 slot machines. Wall Street is eager as
the sale of that many slot machines will drive the price of IGT, Alliance, Aristocrat
(okay they are traded on the Australian Exchange and not an American one), Williams
and a host of smaller companies' stock. When the slot parlors, as they are called
in the local press, open, they will also have an impact on some of the larger
operating companies. Harrah's, Las Vegas Sands, Aztar (but not Ameristar, they
decided the process was too risky) and others are vying for cities and locations.
And that is the Pennsylvania story for this month, as it was last month and
will be next and probably until the middle of next year. The infighting over
regulations that will control the sale of slot machines, the struggles over
locations and operators, and the individual municipalities trying to add another
level of regulation and control continue to slow the process.
...Senate also is expected to vote today on some amendments to the state's
slot machine law, but most of the attention will be focused on the pay raises.
Tom Barnes, Pittsburgh Post-Gazette, 11-2-05
The gaming board had hoped to issue licenses for the seven tracks by March
or April. It now looks as if licenses won't be issued until late June or possibly
later, because of an ongoing dispute over procedures to create slots equipment
distribution companies. Mark Belko, Pittsburgh Post-Gazette, 11-7-05
The state Gaming Control Board opened the door yesterday to competitors interested
in securing licenses for five slot machine casinos and two resort parlors
up for grabs in Pennsylvania
deadline for applications is Dec. 28. Mark
Belko, Pittsburgh Post-Gazette, 11-7-05
Winner of city casino license not yet decided - Mayor Tom Murphy yesterday
said he regretted saying the "fix is in" on who would be awarded
a casino license for Pittsburgh. "I should have chosen my words more
carefully," he said. At the same time he affirmed his right as mayor
"to demand an open, honest and transparent selection process" for
the city's casino. Pennsylvania Gaming Control Board Chairman Tad Decker,
who has strongly denied that a decision on the license has been made, said
earlier yesterday that Mr. Murphy should produce evidence of such a fix or
retract his statement
Mr. Decker said applicants for licenses to be
issued by the board -- casino operators, slots manufacturers, slots distributors,
and non-gaming vendors -- will be judged impartially and fairly and political
influence won't play a part. Tom Barnes, Pittsburgh Post-Gazette, 11-3-05
Shick and Centaur are competing against each other for the single remaining
harness track/slots casino license in Pennsylvania, and the charges are flying
The
winner of the last remaining harness racing license will become one of only
four harness tracks in the state
have the opportunity to build slot
machine casinos. Bill Toland, Pittsburgh Post-Gazette, 11-7-05
Hoping to ensure that slots gambling in the city is a success, Mayor Street
is to meet with gambling companies with an eye toward making a recommendation
on where to build the two mandated city casinos. John Sullivan, Philadelphia
Inquirer, 11-7-05
The owner of the Planet Hollywood chain of theme restaurants presented city
officials with plans for a $380 million casino along the Penn's Landing waterfront
yesterday. Suzette Parmley, Philadelphia Inquirer, 11-4-05
Donald J. Trump's casino company has partnered with Philadelphia-area investors,
including former 76ers president Pat Croce, to apply for a slots license in
the city
"I'm psyched to work with the Donald and his new executive
team," Croce said today. "It will be great to have the Donald in
our town." Under the partnership, Croce said he and a handful of local
investors will be minority shareholders, with Trump being the operator, developer
and majority shareholder. Suzette Parmley, Philadelphia Inquirer, 11-30-05
Magna Entertainment Corp., the track's owner, has begun engineering work
and bidding to relocate the paddock, now next to the grandstand, to the other
side of the track to clear the way for the casino. The move is expected to
free up land for a larger building that will include the slots parlor and
a new grandstand
Mark Belko, Pittsburgh Post-Gazette, 11-7-05
Ameristar Casinos Inc. said Thursday that it will drop its plan to seek a
slot-machine gambling license on Philadelphia's riverfront because the state's
high taxes will prevent it from making enough money to warrant the expense.
The Las Vegas-based company, citing Pennsylvania's 54 percent tax rate on
slots revenues, said it will not apply during the license application period
that opened Tuesday and closes at the end of the year. "We concluded
we can't earn an adequate return on our investment to justify the kind of
investment we're talking about," Steve Eisner, Ameristar's vice president
for development, said in a telephone interview. Marc Levy, Associated Press,
11-4-05
Pennsylvania isn't the only state with slots on the mind. Racetrack owners
everywhere have slots on their minds. There are only two kinds of racetracks
in the country, those with slot machines and those without. The without-ers
are either closing or threatening to close - if they don't get slots; some just
close and some convert into housing and commercial development, like Bay Meadows
in California.
Geneva Lakes dog track has held its last race
Sunday drew about 550
customers
The dog track is one of five that opened in Wisconsin during
the 1990s. The Fox Valley Greyhound Park in Kaukauna, the Wisconsin Dells
Greyhound Park in Lake Delton and the St. Croix Meadows Greyhound Racing Park
in Hudson closed earlier, leaving only the Dairyland Greyhound Park in Kenosha.
Roth blamed competition from casinos and, more recently, restrictions against
expansion into other gaming for declining attendance and the closing of Geneva
Lakes. Associated Press, Duluth News Tribune, 11-05
The San Mateo City Council approved plans Monday night for a housing and
commercial development that would lead to the demolition of Bay Meadows racetrack
Bay
Meadows Land Co. has argued that horse racing will not be economically viable
in the future in California because, unlike many other states, slot machines
are not permitted
Dave Murphy, San Francisco Chronicle, 11-8-05
The racetracks with slot machines or the ones that can add slot machines experience
a completely different destiny. Tracks in Oklahoma, Arkansas and Maine are adding
slots for the first time after recently passing legislation that allows for
slots or in Arkansas, slot-like games. In Rhode Island a racetrack with slots
is worth another $125 million investment, not much compared to the $400 or $500
million the track owners are putting into their facilities in Pennsylvania.
The Birmingham Race Course is being revamped to make way for an electronic
"sweepstakes" operation that will look like a casino, run on casino
hours and operate as much like a casino as the fine print of the law will
allow. No doubt, track owner Milton McGregor is hoping to hit the jackpot
with his new gambling enterprise.
planning to open his new casino-like
operation Dec. 15, using every possible loophole and maneuver to adhere to
a law that permits "promotional sweepstakes." Birmingham News, 11-23-05
A new 650-machine casino will open next week at Remington Park, and owners
hope the $35 million renovation project will rescue the 17-year-old racetrack.
Remington Park's opening caused quite a stir in Oklahoma in the late 1980s,
but attendance dropped off dramatically in the 1990s and continued to suffer
with the rise of Oklahoma's tribal casino industry. State Treasurer Scott
Meacham predicts the casino will make $65 million a year. As mandated by the
law that legalized racinos in Oklahoma, the state will receive between 10
and 25 percent of the cut of the profit. Associated Press, 11-14-05
Hollywood Slots at Bangor open
with 475 machines. A red carpet and James
Dean and Marilyn Monroe impersonators will welcome the first customers
opportunity
for Mainers to play the slots follows more than two decades of debate
Mark Peters, Portland Press Herald, 11-4-05
Bitter winds and rain couldn't dampen the glitz and glamour Tuesday as three
prominent business partners pledged $125 million to transform the tired Lincoln
Park dog track into the Ocean State's premier entertainment destination featuring
thousands of video slots, top entertainment acts and upscale dining
Lincoln
Park, which first opened in the early 1940s as a thoroughbred racing track
moved into greyhound racing during the 1970s, and in 1992 was allowed to revive
its sagging fortunes by installing video lottery terminals, or VLTs as they're
called in Rhode Island
now offers pari-mutuel betting at its year-round
dog track and gaming at its 3,600 video terminals. Anthony Cronin, New London
Day, 11-23-05
For those racetracks that don't have slot machines but still have hope, there
are two possibilities: legislation or initiative, both options are in play.
Arkansas, Oklahoma, Florida and Pennsylvania are example of successful initiatives.
Alaska, Arkansas with a casino proposal, Indiana, Kansas, Kentucky, Massachusetts,
Maine and Ohio are states where there is some momentum to bring slots, sometimes
for racetracks, sometimes for casinos. Makes one think that slot manufacturers'
stock should be a good long-term play, doesn't it? Appearing on a ballot, or
having supporters in the legislature is no guarantee that gaming will pass;
it is, however, guaranteed that without appearing on the ballot or without supporters
in the legislature, there will not be new gaming jurisdictions.
Who Alaska's next governor will be may top the ballot in next November's
general election, but a handful of citizen initiatives are currently competing
for signatures in the hope of finding a place on the ballot. If proponents
for seven ballot measures get their way, voters will decide whether the state
should legalize gambling, ban aerial predator hunting, restrict the use of
pesticides around children, tax leaseholders for not developing the state's
natural gas reserves, do away with the current system for taxing oil production
and reduce the amount of time lawmakers spend in Juneau each year. An initiative
to establish a state video lottery is still under review by the state attorney
general's office and the lieutenant governor. Sponsors of most of the initiatives,
however, are already collecting signatures from registered voters around the
state. R.A. Dillon, Fairbanks Daily News-Miner. 11-23-05
A Texas businessman has registered his tourism company with the Arkansas
secretary of state's office in an effort to bring casino gambling, bingo and
a lottery to the state. Michael Wasserman, who owns Arkansas Resorts and Hotels,
had announced previously his plans to put a gambling initiative on the November
2006 ballot. Associated Press, Little Rock KATV-7, 11-28-05
Indiana bar owners are trying to mobilize a grassroots campaign to lobby
the Indiana legislature to legalize video gambling machines. The Indiana Licensed
Beverage Association is holding 10 meetings around the state, building a database
of bar owners and social-club patrons willing to contact legislators. Eric
Berman and Cheryl Miller, WIBC 1070, 11-29-05
Sumner County Commissioners [Kansas] have finalized plans to hold a public
vote on the question of whether there is support for a destination casino
in Sumner County. Sumner County Clerk Shane Shields says on about Dec. 7,
2005, a special non-binding advisory question election ballot will be delivered
by mail to every voter who was registered in Sumner County on Nov. 19, 2005
Do you support a destination resort casino in Sumner County, in the
event such is legally permitted by the state and is otherwise deemed in the
best interest of the county by the board of County Commissioners? Wellington
Daily News, 11-10-05
[Kentucky] Pre-filed pro-gambling bills include BR 18 which calls for a constitutional
amendment authorizing the state to operate casinos, BR 19 which would allow
nine casinos across the commonwealth and BR 29 which would permit video lottery
terminals across the state. Trennis Henderson, Western Recorder, 11-29-05
House Speaker Salvatore F. DiMasi signaled yesterday that the House might
ignore legislation, passed last month by the Senate, that would allow the
state's four struggling racetracks to install slot machines. The speaker's
remarks were a blow to an industry that has pinned its hopes on the bill and
spent lavishly to lobby lawmakers for its swift passage. If passed, the measure
would allow the racetracks to install 2,000 slot machines each, to buoy the
4,000 jobs they support, backers say
Michael Levenson, Boston Globe,
11-7-05
Supporters of a tribal racetrack casino in eastern Maine collected more than
20,000 signatures last week in their effort to force a referendum on the issue
on the 2006 ballot. Associated Press, Portland Press Herald, 11-14-05
Next November, Ohio voters will select a new governor, choose an attorney
general, auditor, treasurer, secretary of state, representatives in Washington
and Columbus and local officials. Then, they won't be done. They also will
be asked to decide - twice, possibly - if they want to limit state government
spending and taxes, and also may vote on a statewide indoor public smoking
ban, an increase in Ohio's minimum wage, to allow casino gambling and require
that 65 percent of schools' budgets be spent in classrooms. All of this would
be a year after voters trounced four of five statewide ballot issues Nov.
8. John McCarthy, Associated Press, Chillicothe Gazette, 11-23-05
Periodically it is useful to pose the question: What is the world's largest
gaming corporation up to today? As the year winds down, Harrah's is answering
that question. In the last month Harrah's has announced joint ventures in the
Bahamas, Slovenia, Singapore and Spain. Each of the projects is forecast to
cost over $500 million and give Harrah's access to new markets and new money
with the joint venture partners. The rumors are getting stronger about a major
project on the Strip. Up to this point Harrah's has been adding to the Strip
property it owns, and like the Boyd and Stardust sites, being coy about the
plans. And, finally as one would expect, Harrah's is selling off the locations
or properties that don't fit in the long-range plans of the company.
Harrah's, the world's largest casino operator, on Monday unveiled plans with
US hotelier Starwood and developer Baha Mar Resorts to build a $1.6bn (£910m,
€1.35bn) casino-resort in the Bahamas in what will be the largest resort
in the Caribbean. Amy Yee, MSNBC, 11-8-05
Harrah's
announced today that it signed a memorandum of understanding
with Hit Group, a premier Slovenian company that operates nine casinos, to
form a joint venture to develop a large-scale casino resort in Nova Gorica,
Slovenia, a city on the border with Italy.
The preliminary proposal
is for an investment of approximately US$700 million through a proposed 50/50
partnership of Harrah's and Hit. Business Wire, Yahoo! Finance, 11-29-05
Harrah's said it signed an agreement with El Reino de Don Quijote de La Mancha
to develop a Caesars casino resort in the master-planned El Reino community
of Ciudad Real, 118 miles south of Madrid
expect to invest $670 million
in the project, which also includes hotels, golf courses, spas and entertainment,
retail and residential development. Yahoo! Finance, 11-30-05
Word out of the Harrah's corporate offices seems to indicate the company
is considering a massive redevelopment of several of its flagship Las Vegas
properties that could wind up being the biggest project in the city's history.
This is all just rumor and conjecture so far, based on rather opaque comments
from the company's executives, but what they are apparently considering is
taking a wrecking ball to everything between Harrah's and Flamingo Road. This
would include Harrah's, the Imperial Palace, the Flamingo, O'Shea's, the now-closed
Bourbon Street hotel and Barbary Coast if it is bought from competitor Boyd
Gaming. All of this is in addition to consideration being given to revamping
or perhaps starting over on the Bally's property. Rick Garman, Vegas4Visitors,
11-29-05
The appointment of John Payne as regional president of Harrah's Atlantic
City
"Our recently announced $550 million expansion of Harrah's
is just the first step in an ambitious plan to create an unsurpassed entertainment
experience in Atlantic City
John is uniquely qualified to direct this
effort," Harrah's Eastern Division President Carlos Tolosa said
Donald Wittkowski, Press of Atlantic City, 11-30-05
Casino giant Harrah's Entertainment Inc. said Tuesday it agreed to sell its
Flamingo Laughlin hotel and casino outside of Las Vegas, and an undeveloped
land parcel in Atlantic City, N.J., for $170 million in cash to affiliates
of American Real Estate Partners LP, an investment arm of billionaire Carl
Icahn. Associated Press, Yahoo! Finance, 11-29-05
The gaming industry looks pretty healthy as the year 2005 winds down. Revenues
in most jurisdictions are up, the economy is looking healthier with lower oil
prices, strong, early holiday shopping numbers, and consumer confidence up.
Pennsylvania is getting closer to the starting line, slower than one might hope,
but progressing. Oklahoma and Arkansas are adding games to racetracks. Florida
is not moving, but the governor (you remember him, the other Bush) has called
a special session of the legislature in December to draft the regulations, so
we can expect some movement.
Eight other states appear to be moving toward at least a vote on the expansion
of gaming. All of this is good news for slot machine companies. The real opportunity
for the major operating companies does not seem to be in the domestic market.
As the Harrah's story illustrates, there is opportunity in Europe and Asia.
Asia has gotten the most attention this year; next year we could well see new
opportunity in Japan, Taiwan, Thailand and elsewhere. Next year the UK will
heat up, but at this point it is difficult to tell if any American companies
will profit from the opportunity. However, someone will profit in the Untied
Kingdom, and a couple of American companies still have options in England. We
may see more international joint ventures; certainly whoever gets the license
in Singapore will be part of a joint venture combining gaming companies with
hotel and entertainment companies. Australia, America, Asia, South Africa and
the United Kingdom each have large gaming companies that will seek to be players
in each other's market and work together to enter new markets. Gaming is really
global and the major players will over time, lose their national identities
and become simply international gaming corporations.