A new month, a new war, and new record highs for oil prices. Actually, none of
that is really new. We have a July every year, Israel has been at war since the
founding of the state, and oil prices were higher thirty years ago if you adjust
the price for inflation. Gaming didn’t report anything new in revenue trends
either, just a continuation of moderate growth trends, except in those rare cases
where a hurricane or a governor has closed some casinos. New Jersey results next
month will reflect the closure and Mississippi will continue to reflect the effects
of Katrina until all of the casinos have reopened. The results are still good
and should give investors and other interested parties confidence in the future
of gaming.
Atlantic City: June gaming revenues rose 5.9% to $428.1 million. Alan R.
Woinski, Gaming Industry Weekly Report, 7-17-06
Colorado: June casino revenue increased to $63.5 million, up 1.9 percent
from 2005. Denver Post, 7-19-06
Detroit: May casino revenues rose 14.7% to $106.2 million. Alan R. Woinski,
Gaming Industry Weekly Report, 7-24-06
Connecticut: June slot win rose .9% [is .9% OK?] to $ 150.6 million. New
London Day, 7-15-06
Illinois: June gaming revenues rose 4.2% to $141.2 million. Alan R. Woinski,
Gaming Industry Weekly Report, 7-17-06
Indiana: June gaming revenue rose 7.2% to $203.2 million. Alan R. Woinski,
Gaming Industry Weekly Report, 7-17-06
Iowa casino revenues rose 13.7% in June to $102.1 million. Racetrack revenues
rose 22.8%. Alan R. Woinski, Gaming Industry Weekly Report, 7-17-06
Louisiana's casinos won $213.7 million compared with $196.1 million in June
2005, a 9% increase. Associated Press, 7-18-06
Mississippi: June gaming revenues decreased 12.7% to $203.3 million. Mississippi
Gaming Commission
Missouri’s gaming revenues rose 6% to $129 million in June. Alan R.
Woinski, Gaming Industry Weekly Report, 7-17-06
Nevada's May casino win rose 9% to $1.126 billion. Alan R. Woinski, Gaming
Industry Weekly Report, 7-17-06
6-26-06
Public debate is often couched in logic; each side attempts to demonstrate the
superiority of its argument. That is the foundation of our legal system and
of our political system, at least on the surface. There is usually a private
agenda at work under the surface and if you subscribe to the theory, a conspiracy
in the background pulling the strings. But at least in public, we debate an
issue on logic. Going into this year’s Congress, everyone knew that Internet
gambling would be debated as it has been in the past. This year, however, the
gaming industry was backing a study, and the exposure gaming on the Internet
has gotten through poker seemed to indicate the debate would be based on reality
and logic. Wrong! The Republican Party has decided to put Internet gambling
into the party’s platform as a fundamental moral issue – linked
with gay marriage, abortion, flag burning, and probably murder, incest, and
disrespecting one’s parents. No room for logic – if you oppose them
it is a moral flaw making you more like an Islamic extremist than a logical
businessperson.
Any hopes Las Vegas casinos had of the federal government gently starting
to loosen prohibitions on Internet gambling are likely stalled now that U.S.
House Republicans have decided to target online betting as a cornerstone of
their election-year American Values Agenda. The casinos have been watching
on the sidelines as the online jackpot has become a lucrative $15 billion
industry worldwide in just a few short years…Earlier this year, the
American Gaming Association called for a congressional study to determine
the feasibility of perhaps regulating online gambling, much as Nevada and
other states oversee rules for brick-and-mortar casinos. Nevada Reps. Jon
Porter, a Republican, and Shelley Berkley, a Democrat, joined forces this
spring to introduce legislation establishing a study commission…The
objective is essentially doomed now that House Republicans have made anti-gambling
legislation part of their conservative agenda of 10 bills - including bans
on gay marriage, flag burning and abortion - to be addressed in the run-up
to the November elections. Lisa Mascaro, Las Vegas Sun, 7-8-06
The House of Representatives passed an anti-gaming bill, without a study and
seemingly as much in reaction to the Abramoff scandals as anything else. What
better way to prove your innocence than vote against gaming – the major
subject of Abramoff’s lobbying efforts.
With bipartisan support and Jack Abramoff’s lobbying scandals haunting
Republican efforts to pass antigambling legislation, the House of Representatives
approved a crackdown on Internet wagering this afternoon that would ban not
just sports betting but online wagering for poker and other games. The House
voted 317 to 93 to pass a bill that would make it illegal for financial institutions
or intermediaries to process payments to offshore casinos through bettors’
credit cards, electronic funds transfers, checks, debits and other electronic
transactions. In addition, the bill updates the Wire Act of 1961 that forbids
the transmission of betting over telephone lines so that it specifically prohibits
online gambling through whatever communication network, making it a felony.
It would increase the penalties for convictions to five years in prison from
two years. Kate Phillips, New York Times, 7-11-06
That news has been creating a bit of discomfort around the world, particularly
on the London stock market, the home of most of the public online gaming companies.
That, however, wasn’t the worst news they received. On July 17th federal
agents arrested David Carruthers, CEO of BetOnSports, while he was passing through
an American airport. Carruthers is not an American; the company trades on the
London stock exchange and is headquartered in Costa Rica. The charges are racketeering,
tax evasion, and misleading advertising.
David Carruthers, chief executive of online gaming group BetonSports has
been detained by US federal authorities while changing planes in America.
He and his wife Carol were on their way from the UK to the group's operations
in Costa Rica. It is understood they were approached in the transit lounge
and Mr Carruthers was requested to accompany federal agents. Philip Robinson,
Times, 7-17-06
Betonsports Plc Chief Executive Officer David Carruthers was indicted by
a federal grand jury on charges of racketeering conspiracy in connection with
a U.S. gambling probe...The indictment, issued June 1 by a federal grand jury
in Missouri and unsealed today, charges nine other people and three additional
companies. Bloomberg, 7-17-06
According to the indictment, BetOnSports misleadingly advertised itself as
the "World’s Largest Legal and Licensed Sportsbook." The indictment
also alleges that [BetonSports founder] Kaplan failed to pay federal wagering
excise taxes on more than $3.3 billion in wagers taken from the United States
and seeks $4.5 billion from Kaplan and his co-defendants, as well as various
properties…in conjunction with the indictment, the United States has
filed a civil complaint in federal court to obtain an order requiring BetonSports
to stop taking sports bets from the United States, and to return money held
in wagering accounts to account holders in the United States. Philip Robinson,
Dominic Walsh and James Doran, Times, 7-17-06
The government is promising more prosecution and problems for online gambling
operators; those promises are raising some serious international issues. Antigua
has been pursuing a case against the United States with the WTO, claiming it
violates international trade agreements. Antigua is not the only country that
feels the United States is going a bit too far; they might even suggest American
actions have much in common with the Ministry of Vice and Virtue in some Muslim
countries, although no one has yet to make that comparison.
'Illegal commercial gambling across state and international borders is a
crime,' Catherine Hanaway, U.S. attorney said. 'This indictment is but one
step in a series of actions designed to punish and seize the profits of individuals
who disregard federal and state laws.' Bloomberg, 7-17-06
"The people were scared of the Vice and Virtues Ministry under the Taliban,
but this new ministry won't be like the Taliban's," Rahimi said. "It
will take into consideration moral and religious activities to help improve
Afghan society." The Afghan government announced plans Tuesday to re-establish
a Vice and Virtues Ministry…considered the most powerful in the ousted
Taliban government. It employed 32,000 people to enforce the Islamic zealots'
bans on girls' schools, on television, on card-playing and other gambling,
even on kite-flying and women's public baths. Amir Shah, Associated Press,
7-18-06
Going in the opposite online direction as the United States is the United
Kingdom. The ongoing process of revising decades-old gaming regulations is leading
to more opportunity and a more open environment for gaming – on land and
online. Legalizing advertising for both forms of gaming operations goes more
than just one regulatory step forward; it is a legitimizing step forward. The
American government and the English government are definitely marching to different
Internet drummers.
Casinos, betting shops and gambling websites will be allowed to advertise
on television and radio for the first time next year under guidelines published
today. Under draft rules announced by the advertising standards watchdog,
advertisements will be permitted if they are "socially responsible"
and do not target the young, the vulnerable or promote gambling as an alternative
to employment. The guidelines are part of the liberalisation of the betting
industries under the Gambling Act 2005. David Derbyshire, Telegraph, 7-17-06
It is not just in Washington, D.C. that gaming is being hotly debated. Ballot
initiatives are becoming a regular part of every election, and every November
four or five gaming initiatives are likely to be on the ballot. This coming
November is no exception. But it is not enough to get the signatures and place
an item on the ballot. The supporters have to draw voters’ attention to
their cause and get their supporters to the polls. The opposition can try to
stop the petitions with legal maneuvers, but once an initiative is approved
for the ballot, then the opposition is faced with the same challenges –
raise voter awareness. In both cases that means spending lots of money on television
advertising, and then getting their constituents to the polls.
Even though the elections are still three months away, the politician positioning
is already underway, and the big names, big budgets, and big guns are rolling
out their arsenals, as they are in Ohio and Nebraska.
Betty Montgomery doesn’t want to see gambling expanded in Ohio, but
if it will happen anyway, she wants the state to be in charge. Montgomery,
Ohio’s auditor and Republican candidate for attorney general, brought
her stand against gambling to Lima on Monday, campaigning against a possible
November ballot issue that would allow slot machines in racetracks and casinos
in Cleveland and possibly Cincinnati. Jim Sabin, Lima News, 7-18-06
U.S. Sen. George Voinovich said Monday he’s ready to battle again with
gambling proponents who want to expand legalized gambling in the state but
warned that this time the foe is much stronger. Voinovich, who opposes putting
any proposal for slot machines in Ohio on the Nov. 7 ballot, told reporters
and editors at The Chronicle-Telegram the costs of gambling far outweigh any
benefit…Voinovich cautioned voters that only people running the slot
machines will benefit in the long run because of the money those billions
of dollars that will be lost in state revenue, and therefore programs. “They’re
trying to pass this off as something good for higher education, and it’s
not,” he said. “Is this really the way we want to raise money
for higher education?” The amendment is flawed, too, because it does
not include a provision for moving the slot machines, so the constitution
would have to be amended yet again for that to happen, he said. Jason Miller,
Elyria Chronicle, 7-18-06
Congressman Tom Osborne sounded the warning during a Monday news conference
announcing an anti-gambling group is activating its statewide network…The
keno petition is a change in state law, not a change in the constitution.
And the anti-gambling group believes that the gambling industry cannot legally
get video keno without changing the constitution…Two other Nebraska
leaders, Ron Brown, director of Fellowship of Christian Athletes, and Dave
Bydalek, director of Family First, a division of Focus on the Family, spoke
at the news conference. Nancy Hicks, Lincoln Journal Star, 7-18-06
Gaming is on the campaign trail in other states also – when the issue
is big enough, the candidates for governor and sometimes candidates for other
state constitutional offices cannot avoid taking a position, as in the campaigns
in Kansas and Maine.
Voters in next month's Republican gubernatorial primary could influence the
future debate in Kansas over legalized gambling. Two of the three leading
GOP contenders oppose gambling on social and economic grounds. If either wins,
and later unseats incumbent Democratic Gov. Kathleen Sebelius, the debate
over gaming could be all but over for the next four years. Gambling supporters
in the Legislature have come close to passing casino legislation in recent
years, with Sebelius' support, but each time it has failed to gain enough
votes to get over the top. Steve Painter, Wichita Eagle, 7-18-06
If you're looking for an issue that separates Maine's seven gubernatorial
candidates, gambling is a safe bet. Neither Gov. John Baldacci nor his Republican
re-election challenger Chandler Woodcock is a fan of casino gambling, but
that's about all they agree on. The issue elicited a variety of views from
the other contestants in the seven-person Blaine House field. But all acknowledge
that voters have spoken on the matter, and said yes… The first referendum
question asks whether the Passamaquoddy tribe should be allowed to run a harness-racing
track with slot machines and high-stakes beano games in Washington County.
The second asks whether slot machines should be banned in Maine. Associated
Press, Maine Today, 7-18-06
With November just around the corner, gaming on the ballot and candidates on
gaming will continue to make the news. However, if we have learned anything
from Pennsylvania and Florida, approving slot machines is not the same thing
as installing slot machines. And with the elections coming up, the politicians
in Washington may not have any more time for dealing with gaming; the House
of Representatives has made its gesture, so now they can get out on the campaign
trail. If that sounds cynical it is because I am; I don’t believe Congress
is dealing honestly with gaming – Internet, Indian, or any other form.
It is my opinion that they are using their Washington stage to pander to voters.
