Missouri Casinos in St. Louis County Retain Smoking After Ordinance Extinguished

Missouri casinos in St. Louis County were facing a potential smoking ban after local government officials motioned to prohibit indoor smoking at the two gaming venues.

Missouri casinos smoking St. Louis County
A smoker puffs on a cigarette while a person in the background covers their face in an attempt to avoid secondhand smoke. Missouri casinos in St. Louis County will continue allowing indoor smoking on certain sections of their gaming floors after local officials decided against an indoor smoking ban. (Image: Adobe Stock)

St. Louis County borders the independent city of St. Louis. The county is home to two commercial casinos, Hollywood Casino St. Louis in Maryland Heights, and River City Casino Lemay. Both properties are operated by Penn Entertainment, which was Penn National Gaming until a year ago this month when the Pennsylvania-based gaming firm underwent a rebranding.

Dr. Kanika Cunningham, the county health department director, encouraged the casino smoking ban to be implemented. Currently, the two casinos can designate up to 30% of their gaming floors for indoor smoking.

Even if there are partial smoking restrictions, there’s no way to allow for smoke-free air,” Cunningham said before the council in May. “The current ventilation systems can reduce the odor but it does not reduce the level of hazardous exposure.”

Officials representing Penn Entertainment took the other side and petitioned the St. Louis County Council to vote against the proposal to eliminate indoor casino smoking. The company argued that such a regulation would place its two Missouri casinos at a competitive disadvantage with casinos elsewhere in the Show-Me State, including casinos in St. Louis proper and East St. Louis, Il.

Penn’s argument resonated, as the County Council shelved the no-smoking ordinance during its Tuesday night meeting.

Hollywood Casino reported to the Missouri Gaming Commission having 685 employees at the end of 2022. River City reported 610 employees.

Patchwork Smoking Regulatory Environment

Missouri lawmakers took a bit of an atypical approach to regulating indoor smoking when they passed the state’s Clean Indoor Air Law in 2002. The statute prohibits indoor tobacco use in most public and private places, including workplaces, most retail and commercial establishments, schools and places of learning, restaurants that don’t derive the majority of their revenue from alcohol or tobacco sales, childcare facilities, and health care facilities.

Exemptions were provided for bars and taverns, bowling alleys, billiard parlors, and gaming venues like casinos. The state law tasked counties and municipalities with determining whether to allow smoking inside those kinds of businesses. The state statute does limit indoor smoking to no more than 30% of the total indoor floor space.

The state law doesn’t require exempt places from offering indoor smoking areas.

Competitive Landscape

Missouri is home to 13 riverboat and land-based casinos, and all remain with indoor smoking sections. Penn’s two properties are among the most successful of the baker’s dozen of casinos.

During the state’s 2023 fiscal year that ended June 30, River City generated gross gaming revenue (GGR) of more than $254.8 million. That ranked second in the state behind only Ameristar Casino Resort St. Charles at $303 million. Penn’s Hollywood Casino ranked third at approximately $243.6 million.

Casinos share 21% of their gross gaming income with the state and, additionally, pay a $2 per person admission tax. River City counted about 4.1 million patrons during the 12-month period, while Hollywood Casino welcomed about 3.7 million guests.

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Ontario iGaming Q1 2023, Full Year 2022 Numbers Out – Casinos are Smashing It

ontario-igaming_q1_2023_full_year_2022_numbers_out_casinos_are_smashin_itOntario iGaming has released a market report for the first quarter of 2023, and online casinos continue to hammer online single-event sports betting in the free commercial market. More than 80% of the action (83%) and over 70% of the nascent market’s revenues came from casino gaming rather than sports betting.

The numbers starkly contrast with some of the projected estimates coming out of the Canadian province before the market opening in early 2022. Those numbers seem to have all but disappeared from the news, being overwhelmed by the sheer reality of what it is in fact, that Canadians like to bet on casino games a lot more than they care to bet on sports.

iGaming Ontario Fiscal Year Began April 1

When referring to first quarter numbers, the information relates to (Q1) of the 2023-24 fiscal year which ran from April 1 through June 30, 2023.

Outside and casual observers might also be surprised which sports got the most action with basketball leading hockey by orders of magnitude. Sports bettors were “turned off” by betting ads all over television and other media and the country hasn’t won a Stanley Cup in ice hockey for three decades.

That being said, online casinos dominated the money story with over 5x as much in wagers ($11.6B vs $2.B) than sports betting but operator win was much less as a percentage of turnover, as is to be expected, when comparing the amount of money players left on the tables, in the virtual slots, and on the book. Casinos produced $392M in revenue as opposed to the $182M that betting generated.

The market currently has 71 gambling sites in operation, five less than at the end of the year but has picked up one additional operator. The number of active accounts has shrunken a bit as well to less than one million.

However, it must be kept in mind that it does not mean there are a million online gamblers in the province that play at regulated, taxed, and licensed websites as each account is counted separately.

The minimum number of participants could be as few as 12,958 or as many as 920,000. Among other reasons, since many operators only allow one bonus across all of their websites, it’s highly unlikely any but a small handful of customers have over 50 separate accounts, but it’s also a stretch to think that nearly anyone has less than half a dozen – making the probable number of actual active players fall somewhere on the lower end of the spectrum, but still in the hundreds of thousands.

The average spend per active player account during Q1 was $197.

Money wagered on slots was more than that wagered on all table games combined, and here again the apples and oranges must be sorted out. Slots spins happen more rapidly than table game bets in succession so the games will see a lot more betting, however, table game bets – both virtual and live dealer casino bets, are usually larger. Regardless, slots made up some 48% of all wagers while live casino games made up about 32% of all gaming wagers with virtual random number generator-based table games accounting for at least 8% of the remainder while peer-to-peer bingo games made up the rest.

This quarterly report was the first time that game-by-game volumes could be extracted from an iGaming Ontario report.

First Full-Year Numbers Released in Tandem

Following is a breakdown of the 2022/2023 fiscal year numbers (FY2022-23 – April 4, 2022, to March 31, 2023) as provided by the authority.

  • Last year, casino games, including slots, live and computer-based table games as well as peer-to-peer bingo, accounted for nearly $28B (78%) of total wagers and $940M (67%) of gaming revenue.
  • Betting, including traditional sports, esports, proposition, and novelty bets accounted for $7B (20%) of total wagers and $433M (31%) of gaming revenue last year.
  • P2P poker accounted for $992M (3%) of total wagers and $40M (3%) of gaming revenue last year.

None of the numbers above in any section include Ontario Lottery and Gaming Corp. (OLG) information, which will be released at a later date. As such, it is not possible to directly infer any amount of direct losses or cannibalization to the long-existing Crown Corporation public/private partnership operation which formerly ran a monopoly on Canadian-licensed casino games through its PlayOLG website.

As always, Canadians in Ontario and other provinces are free to bet at offshore casinos as well – with those numbers still obscured by a lack of centralized regulatory reporting in jurisdictions such as Malta or any reporting from licensing jurisdictions like Curacao which handle those operators.

The Kahnawake Gaming Commission does not provide market reports either.

As part of its commitment to sharing aggregate revenue and market insight reports, iGO intends to continue releasing, at minimum, a market report every quarter,” iGO said Wednesday.

Source: iGaming Ontario’s FY 2023-24 Q1 Market Performance Report, iGaming Ontario, July 19, 2023

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Cyberattack – 14 Canadian Casinos Shut Down Since April 16

cyberattack_14_canadian_casinos_shut_down_since_april_16Canada’s Gateway Casinos & Entertainment Ltd. has officially confirmed that the company has been the subject of a cyberattack. All 14 of the company’s casinos in the province of Ontario were shut down starting with Casino Rama Resort which closed on April 16th. The casinos were hit with a ransomware attack that reportedly created an IT outage.

When Casino Ramma was shut down abruptly at about 1 p.m. CDT on Sunday the 16th, the company only said that an IT outage was to blame, not what caused the outage. All gaming operations were shut down with the company statement reading only: “Gateway casino sites across Ontario experienced a system-wide IT outage.”

Restaurants, Hotel Still Open at Casino Rama

The casino’s Instagram feed most recently stated: “Casino Rama Resort’s Hotel, Balance In Life Spa, Weirs, and St. Germain’s restaurants remain open. St. Germain’s is open Wednesday – Sunday.”

Very little more information was meted out over the next several days until Gateway announced the reasoning behind the closures on Friday, nearly a week later. The company now says that it has no knowledge of any confidential or private information being compromised. Investigation of the incident is still underway with many of the firm’s 7,000 employees being idled.

iHeart Radio was reporting on Friday that all casinos would remain shuttered indefinitely while cyber professionals do their work to reassure the integrity of the systems.

The Chris de Burgh concert scheduled for Friday was postponed until April 27. The Quiet Riot, Warrant, and Helix concert scheduled for Saturday was reset to October 7. All tickets purchased through My Club Rewards and Ticketmaster will be valid on the new dates. No mention of refunds was made. The event center st Casino Rama can seat up to 5,000 people.

The Friday announcement confirmed that a criminal breach had occurred and that all of the casinos would remain closed through the weekend at a minimum. As of Sunday evening, no change had been announced.

The company website still stated the following which was initially posted on Friday, April 21: “Gateway Casinos and Entertainment locations in Ontario will remain closed through the coming weekend as we continue to work on resolving a cybersecurity incident and put in place the plans for reopening at each location. While we cannot confirm a re-opening date at this time, we continue to work with all relevant parties to do everything we can to restore our IT systems, reopen our sites, and get our employees back to work.”

Not all cash has stopped flowing for the company however as 15 other casinos in different provinces remain open.

Catalyst Capital Group is the company’s majority stockholder and gateway manages the gaming venues for the respective provincial governments where they operate, sharing revenues with them which is used for the common good.

The company announcement also stated: “We want to reiterate that we have notified the relevant privacy officials, law enforcement, and government regulators about the cyber incident.”

30 Year History in Canada

Last year, Gateway celebrated 30 years of participation in the gaming and entertainment business in Canada. Casino Rama opened on July 31, 1996, and remained open continuously until forced to shutter operations during the world health emergency in 2020.

The company said it is working “with third-party experts” around the clock 7 days per week “to determine if there has been any impact on personal information in this case,”

Oddly enough, just a few days prior to the cyberattack, Global News ran an article warning of the increased risk of Russian cyberattacks on Canada in response to the country’s support of Ukraine. While there is no indication yet that Russian state actors are responsible for the most recent attack on a Canadian business it has been identified as a criminal hacking group and that ransom was demanded. Gateway has not confirmed or denied whether it paid and was hit anyway.

Pro-Russian groups have taken credit for several recent cyberattacks in Canada, including on Prime Minister Trudeau’s website and the websites of the Port of Québec and Laurentian Bank.

For a listing of all significant cyber attacks on Canadian government institutions and businesses, see the Kon Briefing (here).

Source: Gateway Casinos Confirms Cyberattack on Ontario IT Infrastructure, Casino.org, April 22, 2023

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Station Casinos Brings Down Fiesta Rancho in North Las Vegas

Demolition of the Fiesta Rancho in North Las Vegas began this week, with most of the resort’s five-story hotel tower reduced to rubble. Owner Station Casinos announced last July that the Fiesta Rancho would be demolished along with its other North Las Vegas property, Texas Station, which was leveled in February.

Another Fiesta takes a permanent siesta. (Image: FOX5/Vegas)

Both casinos had been closed since the COVID-19 pandemic began, as was Station’s Fiesta Henderson casino. Despite the popularity of the casinos, Station said, their customers switched over to other casinos owned by the company. So they opted to sell the land to buyers who, as part of the deal, promised not to open competing casinos on the sites.

The Fiesta Henderson, which was also demolished in February, was purchased for $32M by the city of Henderson, which intends to use its 35 acres for an indoor youth sports facility. No buyer has been announced for the Fiesta Rancho or Texas Station sites.

“These properties have been an important part of our business over many years, so it is not without sadness that we announce these permanent closures,” Station Casinos president Scott Kreeger said in a statement last July. “We would like to recognize and thank our former team members who worked at these properties for making them a place where our guests always felt welcome. We are pleased that approximately one-third of the team members from each of these three properties are already working at another Station Casinos property, and we hope that number will grow. We also want to thank our loyal guests for their support.”

The ice rink at Fiesta Rancho will remain open, Red Rock Resorts said.

Doubling Up

Red Rock plans to double its Southern Nevada presence by 2030. The locals-focused casino giant opened a new a new Wildfire casino in downtown Las Vegas in February. And it pumped $750M into its Durango Casino & Resort, a new 73K square-foot casino, sportsbook, and 200-room hotel on Durango Drive in Southwest Las Vegas that’s on target to open later this year.

Red Rock also recently closed on the purchase of nearly 67 acres in North Las Vegas for $55 million, after it received approvals for a new 75,700 square-foot casino and 600-room hotel on the site. (That casino is likely to be much more upscale than the Fiesta Rancho or Texas Station.) And, in July, it purchased 126 acres south of the Strip for $172 million — boosting its unused land holdings in the Las Vegas Valley to nearly 430 acres.

Red Rock’s land portfolio shrunk by 21 acres when the company sold excess land surrounding Durango to a housing developer last December for $23.9M. Its total strategic landholdings now total about 522 acres, about 120 of which are under contract or being actively shopped for divesting.

In addition to the Red Rock Resort and Green Valley Ranch, Red Rock currently operates multiple gaming properties under the Station brand throughout the Las Vegas area. The company also runs 10 Wildfire casinos, including seven in Henderson.

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France Reg Flexes Delisting Muscle, Australia Adds to List of Blocked Online Casinos

france_reg_flexes_delisting_muscle_australia_adds_to_list_of_blocked_online_casinos.France’s gambling regulator, l’Autorité Nationale des Jeux (ANJ) has issued blocking and delisting orders against online gambling sites and has created and published a public blacklist in the form of a downloadable CSV spreadsheet of illegal gambling sites while the Australian Communications and Media Authority (ACMA) has ordered eight more sites to be blocked, including an advertiser as well as gambling operators.

The French blacklist can be found through a link on the government’s official announcement page (here). It includes well over 500 entries, most of which are redirects or mirrors of sites that were obviously targeting players in markets the operators were not welcome in with operators such as VegasPlus accounting for nearly 10% of the total through more than 45 unique URLs relying on various reiterations of the core name.

Obvious Attempted Circumventions

MaChance casino accounted for more than 50 iterations while Unique / WinUnique clocked nearly 50 entries.

The internal list shared with legal authorities, certain operators, and internet service providers in France has tracked 532 websites from over 150 operators since June of last year but has finally been made public, albeit in a non-user-friendly format. The list will be updated monthly according to the ANJ.

Several months before the then-nascent list was compiled, the regulator was given extraordinary powers to block or demand the blocking of gambling websites as well as the power to delist them through requests or demands delivered to search engines and other indexing databases.

Legal censorship in the name of the public good is a craft the French regulatory body is perfecting with each new development and the ANJ no longer has to wade through 4-6 months of red tape to get the job done. Now, they can simply request that ISPs (internet service providers) block the sites after a quick consultation with an administrative judge, and the marketing websites as well as any known iterations of the gambling domains can be blocked within 30-60 days.

Only about 18 online gambling websites are sanctioned by the government in France as well as internationally in French-administered jurisdictions while La Française des Jeux enjoys an exclusive monopoly on lotteries and related games throughout French law-administered governments worldwide.

Google addresses delisting thusly: “Google may temporarily or permanently remove sites from its index and search results if it believes it is obligated to do so by law; if the sites do not meet Google’s quality guidelines, or for other reasons.”

A ruling by the European Court of Justice, the EU’s highest court confirmed in 2011 that France’s monopoly on horse race betting was justified and legal as long as its purpose was to prevent harm to the public and was applied in a consistent manner. The case (a law allowing Pari Mutuel Urbain a monopoly on horse-race betting) set the stage for further breaks in anti-monopoly law interpretations and upset the assured competition among member states throughout Europe.

The ANJ stated on its website last Wednesday: “Indeed, when a French Internet user plays on an illegal site (for example, in France, all online casino sites are illegal, no casino license can be granted under the legal framework in force), it exposes you to multiple risks:

  • Collection of personal data;
  • Payment fraud;
  • Installation of malicious computer programs on the computer or mobile phone without the knowledge of the player;
  • Frequent non-payment of winnings;
  • Absence of any measure to prevent excessive gambling and underage gambling;
  • Total absence of legal recourse in the event of a dispute with the site.

There are no known empirical data that shows the French are any more vulnerable to those risks than players in any other jurisdiction. The government relies on code enforcement on the supply side and the statements above to dissuade French gamblers from straying from the French-approved sites. Online gamblers in France are not subject to criminal penalties.

Australia Continues Crackdown on Unlicensed Sites.

As is the case in France, gamblers in Australia are not subject to criminal penalties. However, operators that offer unlicensed services to citizens can be punished civilly and criminally if they find themselves within reach of the law. All publicly traded companies have left the market, yet private companies continue to serve the market as Australians are among the most passionate and prolific gamblers in the world.

Offering online gambling services in Australia is not actually illegal as long as an operator is licensed in a state or territory. However, none have developed a framework nor issued any licenses for casino gambling.

The Australian Communications and Media Authority (ACMA) has issued new orders for another handful of gambling sites to be blocked by Australian ISPs from allowing residents to access the websites.

As has often been the case in the past, the order affects not only illegal operators but their promoters as well. The latest batch of names includes Casino Jax, Kosmonaut Casino, Mirax Casino, N1 Bet Casino, Rolling Slots, Slotozen, and Wild Fortune Casino as well as an affiliate website that was purportedly directly marketing to Australian players.

The regulatory body has blocked well over 700 gambling websites since the Gambling Act Amendment of 2001 was strengthened in 2017.

Source: French regulator publishes gambling website blacklist, iGaming Business, March 14, 2023

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