When Cincinnati Reds CFO Doug Healy testified earlier this week before Ohio legislators regarding sports betting, he made the point of view from state’s pro teams very clear.

He urged the state Senate Select Committee on Gaming to create a bill that does not give casino operators a monopoly on sports betting licenses.

Instead, he said it needs to function like a “three-legged stool,” with casinos, the state and sports teams as legs. For that stool to have even legs, teams like the Reds need access to licenses, too. That would include a retail location on or near the team’s stadium and a mobile skin.

We are primary economic engines in our communities, and should benefit from this new revenue stream, particularly because sports betting is wholly derivative from our businesses,” Healy told lawmakers Wednesday. “Legalized sports betting in Ohio poses risks on our sports that we are willing to accept so long as we have access to the benefit of new revenue from that market.”

Ohio has eight major league franchises, three each in Cincinnati and Cleveland as well as two in Columbus. The Columbus area could qualify for a third if lawakers consider Muirfield Village Golf Club a professional sports venue. The course hosts the PGA Tour’s Memorial tournament.

The state is also home to four full-fledged casinos and seven racinos, which offer video lottery terminals.

Pro Teams Risk “Scandal”

The Reds actually have a history with sports betting, and definitely not a healthy one. A betting scandal tainted the team’s first World Series title in 1919. The Black Sox scandal led to the banishment of eight players.

Seventy years later, the Reds were associated with gambling again after MLB permanently banned Pete Rose, a legendary Reds player and then the team’s manager, after it determined he bet on games involving the Reds. Rose initially denied the allegations but in the years since has admitted doing so.

Healy didn’t address either directly but spoke about the risks sports betting present to sports teams.

“Our risk is scandal,” he said. “We have nothing if our fans don’t believe our athletes are trying their best each and every day, or believe that the outcomes are contrived in any way.”

He added that the state’s pro teams opposed last year’s bills in the state legislature because both did not truly recognize “the critical role that sports play” in wagering.

Teams Want Revenue Stream

There’s also an economic factor in this as well. Last year, the Reds and Cleveland Indians played truncated seasons with no fans at games because of COVID-19. That created a major economic hit. And while MLB plans a 162-game season this year, it remains uncertain if Cincinnati can host a capacity crowd.

The other pro sports teams experienced similar problems.

It’s quite possible some of the teams have a provider in mind as a partner. The Reds, Indians, and the NHL’s Columbus Blue Jackets broadcast their games on the soon-to-be rebranded Bally’s Sports regional networks. Bally’s paid Sinclair Broadcast Group for naming rights and has plans to incorporate sports betting technology into the content.

Bowling for Sports Betting Scraps

The sports franchises aren’t the only ones who want to offer sports betting alongside the casinos. A couple of weeks ago, a lobbyist for Ohio’s grocery stores made a pitch for supermarkets to offer sports betting in a similar setup to the lottery. On Wednesday, even the Bowling Centers Association of Ohio made their case in similar fashion.

Executive Vice President David Corey said casino operators estimate mobile apps will absorb 85 percent of the Ohio market. Retail sportsbooks would likely capture between 5 and 10 percent.

“So, really all we’re talking about are the scraps that will be left, but those scraps are so important to our local Ohio businesses,” Corey said. “We do not believe that Ohio should continue to give out-of-state operators yet another monopoly.”

JACK Exec Says Smaller Market Better for Ohio

At least one casino operator is skeptical about expanding sports betting control to sports teams and other businesses.

Dan Reinhard, senior vice president of governmental affairs for JACK Entertainment, said that the data from other sports betting states indicates that five operators will control about 95 percent of the market. That would leave very little market share for the remaining licensees.

“JACK believes that 11 mobile sportsbooks, along with the 11 retail sportsbooks in casinos and racinos will allow the state to maximize revenue while limiting the immense regulatory and administrative burden that would come along with licensing and regulating an unmanageable number of operators,” Reinhard said.

Late last year, Cleveland Cavaliers owner Dan Gilbert, who founded JACK Entertainment, sold his shares in the company to members of its executive team.

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The Palazzo reopened its hotel tower on Thursday, March 11, after keeping it closed for over four months. It joined several other Las Vegas properties that recently reopened fully and are now taking reservations seven days a week.

The Palazzo is part of the larger Venetian Resort Las Vegas. It features more than 3,000 luxury rooms and suites.

In March 2020, Nevada’s casinos and other non-essential businesses were ordered to close as the state was trying to abort the spread of the coronavirus. The properties stayed closed for nearly three months until they were finally allowed to reopen in June.

Due to weak demand, the Palazzo, as well as other Las Vegas properties, stopped taking mid-week reservations in July. And as the state implemented a series of restrictions in December to contain a new Covid-19 surge, the hotel tower stopped accepting reservations completely.

Some of its restaurants and boutiques as well as its casino floor and parking garage remained open. As mentioned above, The Palazzo joined other Strip properties that recently reopened fully and resumed mid-week reservations, sparking a new wave of hopes that demand in Las Vegas is finally picking up after a turbulent 2020.

In early March, MGM Resorts International reopened its Mandalay Bay, Park MGM, and Mirage resorts and these are now operational seven days a week.

In addition, the city is also soon about to welcome its newest casino complex. After postponing its launch several times, Virgin Hotels Las Vegas has announced that it will open doors on March 25.

The Venetian Has a New Owner

The Palazzo reopened shortly after news emerged that the complex will undergo a change of ownership. US buyout firm Apollo Global Management has entered into an agreement to add the property to its bulging portfolio of casino and hospitality assets.

The company is set to pay $2.25 billion to acquire the operating company of the Venetian, the Palazzo, and the adjacent Sands Expo and Convention Center. All three are currently owned by Las Vegas Sands.

In addition, VICI Properties, a real estate investment trust associated with Caesars Entertainment Inc., will pay $4 billion for the land and real estate assets of the above three properties. The transaction thus values these at $6.25 billion. Once it closes, Apollo will enter into a long-term, triple net lease agreement with VICI for the gambling complex, the hotel tower, and the convention venue.

Subject to regulatory approval, the deal is anticipated to close in the fourth quarter of 2021.
Las Vegas Sands first announced that the sale of the Venetian and the Sands Expo and Convention Center was under discussion back in October. Company officials said at the time that offloading these properties would make it easier for Sands to focus its efforts entirely on the Asian market as it has been forming the casino operator’s backbone for a while now.

The gaming and hospitality powerhouse, whose founder and long-time CEO Sheldon Adelson passed away in January, currently manages integrated resorts in Macau and Singapore and these account for more than 85% of its entire revenue.

Source: “The Palazzo Reopens Its Hotel Seven Days a Week on the Las Vegas Strip”, Eater Vegas, March 11, 2021

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The problem with time is that it always changes. There is never a way to stop the clock, no matter how much we wish it could happen. Ultimately, that means we all have to face new situations and challenges and prepare to be taken on new paths. However, each of those new paths is a chance to learn and grow, embracing all of the experience and knowledge that has been accumulated to forge a better future. It may be a little unnerving, not knowing which path to take and what the future may hold, but it has to be completely accepted for what it is – an opportunity that we have the ability to explore and nurture. 

That’s where I am now, having accepted the fact that the CalvinAyre and CoinGeek chapters of my life are coming to a close. For the past three years, I have been part of a unique and incredible group that has worked tirelessly to spread the word on the gaming and cryptocurrency industries that we felt would provide a positive impact for our readers. I, like everyone else, have always endeavored to be consistent and factual with the words I put on virtual paper, even though I know, based on some of the emails I have received, that I have also ruffled a few feathers. At the end of the day, though, I can rest easy in the knowledge that I was always transparent and factual. 

I would be lying if I said it’s going to be easy to accept this transition and to refocus my efforts elsewhere. However, I am eternally grateful for having been given this excellent opportunity and have enjoyed every aspect of being involved in the Calvin Ayre organization. What is coming next may still not be defined, but that’s what is going to make the next chapter exciting; it can bring essentially anything and everything. What I know, regardless of what happens next, is that I will continue to be who I am and will continue to provide the same level of professionalism and integrity that have brought me this far, and which are paramount for everyone involved with Calvin Ayre. I thank everyone at the organization for their undeniable commitment to excellence and thank all of our supporters and readers for allowing us to share with them our experiences and knowledge. 

If anyone wants to reach out to me, I can always be found on LinkedIn.

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Chicago will hopefully select the preferred developer of the city’s planned casino by the end of the year, Mayor Lori Lightfoot said this week.

A request for proposals is set to be launched in early April and the Illinois Gaming Board is expected choose the winning bidder for the city’s sole casino license over the following months. The regulator will consider input from local officials before announcing its final decision.

Under provisions in Illinois’ gambling law that were approved by Gov. J. B. Pritzker in the summer of 2019, up to six new casinos can be built in the state in the coming years. Chicago, one of the nation’s largest cities, was selected as one of the preferred hosts of a new gambling establishment.

The process of bringing casino gambling to the city faced a major delay after state officials adopted measures making the project quite unattractive for potential operators. The coronavirus outbreak in the spring of 2020 further hampered the scheme’s progress.

Last year, state lawmakers tweaked some the requirements interested operators would have had to agree to in order to be able to participate in the race for the gaming license. One of the most important changes made by officials was to reduce the original tax rate from more than 70% to 40%.

Another license term that was also revised included the license fee, which the preferred operator will now be able to pay over six years instead of two.

The company that will be selected to build and manage Chicago’s only casino will be able to operate up to 4,000 gaming positions and place some of these at Midway International Airport and O’Hare International Airport, one of America’s busiest airports.

Mayor Lightfoot Hopes for Expedited Licensing Process

The city is set to release the timeline for the upcoming request for proposals in the coming few weeks. Mayor Lightfoot said that they will work with state gambling regulators on an expedited approval and licensing process that could pave the way for Chicago’s casino to open doors by 2025.

Since she stepped in as the city’s top official in 2019, Mayor Lightfoot envisioned a casino as a new source for much-needed revenue that will help officials chip away at least some of the constantly rising public services costs and cover some of Chicago’s unfunded pension liability.

A location for the future gambling venue is yet to be selected. Mayor Lightfoot said this week that they are “going to be flexible” and will let interested operators come to her with their own preferred locations.

According to the mayor, a casino could act as the anchor for a larger complex that will also feature a casino, dining and entertainment options, and more. A resort destination of this kind is hoped to attract both locals and tourists.

Mayor Lightfoot said they envision a Vegas-style complex as in her view, “Las Vegas is the gold standard for casino gaming.”

And the city’s exclusive casino license indeed saw interest from some Las Vegas operators which responded to a request for information launched by officials last year. Wynn Resorts and MGM Resorts International were two of these.

A spokesperson for Wynn said that “when a large city of significance decides to consider a gaming resort, we are interested” and that “Chicago fits that profile.”

An MGM spokesman said that they did respond to the request for information but that does not necessarily mean they will apply for the license when the time comes.

Hard Rock International and Rush Street Gaming were also among the companies that responded to the city’s request. Hard Rock is currently building a gambling venue in Rockford in the Greater Chicago area.

Source: “Chicago Mayor Says Casino Bidder Could Be Picked This Year”, Bloomberg, March 10, 2021

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The Wilton Rancheria tribe finally broke ground Tuesday, March 9, on its planned casino resort after years of wrangling with project opponents and other obstacles.

Las Vegas-based casino operator Boyd Gaming will build the property and operate it on behalf of the tribe. It is scheduled to open doors in late 2022.

The casino complex will be raised from the ground up on a 35.9-acre site adjacent to an unfinished shopping mall in the California City of Elk Grove in the Greater Sacramento area. The US Department of the Interior placed the land into federal trust in 2017. Late last year, Boyd purchased the vacant mall site that will too be used for project purposes.

During the Tuesday groundbreaking ceremony, attended by tribal members, city leaders, and others, tribal officials said the future complex will operate as Sky River Casino. The cost to build it exceeds $500 million, it also became known.

The property will feature a 110,000-square-foot casino with more than 2,000 slot machines and 80 table games. A 12-story hotel tower with over 300 rooms and suites will accommodate guests of the resort. It will also include a fitness and spa center, food and beverage outlets, a luxury pool complex, and more than 30,000 square feet of meeting space, a conference center, a ballroom and an entertainment venue that will host events of different nature.

Construction is set to generate 1,600 jobs, while 1,750 full-time positions are expected to be created when the casino-hotel complex becomes fully operational a year and a half from now.

Resort to Help Tribe Gain Self-Sufficiency

The groundbreaking ceremony evoked “a flood of emotion, elation, and tears”, the tribe’s former chair, Raymond Hitchcock, said Tuesday. He served as the tribe’s top official from 2012 to 2020.

The casino project has been long time in the making and Wilton Rancheria has gone through many ups and downs until it was finally able to commence construction. The tribe and the Elk Grove City Council signed a memorandum of understanding in 2016, under which the former agreed to pay $186 million to the city over a 20-year period in exchange for the right to build the property within city limits.

The agreement had to be approved by the US Department of the Interior. The approval came in early 2017, but was contested by a group opposing casino-style gambling. The Interior Department denied the motion in the summer of 2017.

During Tuesday’s ceremony, tribal chair Jesus Tarango said that finally breaking ground on their casino demonstrated “the hard-fought determination of generations of tribal members to create a future of dignity and self-sufficiency for Wilton Rancheria.”

Mr. Tarango further noted that the property will help the tribe secure funds for investing in housing, education, and health care for its 853 members and preserve their language, culture, and community.

Source: “Groundbreaking held for Elk Grove’s Sky River Casino”, Elk Grove Citizen, March 9, 2021

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