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Showing posts with label Steve Norton. Show all posts
Showing posts with label Steve Norton. Show all posts

Monday, May 23, 2016

JOHN SOWINSKI: Only Casino Interests Push Casinos in Florida



Economic Development? 








Only Casino Interests Push Casinos in Florida



- See more at: http://www.sunshinestatenews.com/story/mostly-only-casinos-want-casinos-florida#sthash.hsSNkvoK.dpuf


As the president of No Casinos, I occasionally respond to the progambling missives of an industry that has the same interest in Florida that a tick has in a basset hound. 
But one that recently appeared in Sunshine State News is a bit novel. According to Steve Norton, who helped bring big-time casinos to Atlantic City and now wants to do the same favor for Florida, Orlando has blocked the rest of the state from gambling happily ever after [Ref: May 12 guest column, "Floridians Should Look Beyond Orlando to Weigh Casinos' Benefits"]
Yes, the nanny state in the middle of the state has stopped the dice from tumbling, the slots from spinning and the boom times from rolling. 
We would be one big, happy Las Vegas by the Sea. 
No Casinos gets singled out for its effectiveness in this effort and I certainly appreciate the shout-out, even if in his very first sentence, Horton spilled the beans that I get paid. I only wish I got paid as much as the people on his side. 
But seriously, and with all due humility, we are not as good as Horton implies. It’s not like casinos are some unknown quantity that we can spin a gullible public into opposing.
Casinos are multiplying in some parts of the country like amoebas in a petri dish, getting so crowded that they now are cannibalizing each other to survive. Raise your hand if you’ve ever been in one. So we don’t have to plot any voodoo marketing strategies. 
All we have to do is shine a light on the industry and say, “Hey, look everybody.” Rest assured, when Florida has said no to expanded gambling, time and again, it has done so with eyes wide open. 
Unfortunately, saying no to this industry is like saying no to a shoe-chewing puppy. No matter how many times you roll up the newspaper, they’re right back at it when you walk out of the room. 
As for Horton’s fixation with Orlando, let me begin by pointing out that Reuben Askew and Lawton Chiles were not from Orlando. Bob Graham and Jeb Bush are not from Orlando. In fact, both are both from Miami. 
Yet every one of these former governors strenuously opposed gambling expansion. Askew actually started No Casinos. 
Another person who is not from Orlando is Fabiola Santiago. The Miami Herald columnist recently had this advice for the Genting Group, which has been trying to open a casino on Biscayne Bay for almost five years now: “Enough already. Go away, Genting." 
You only say “go away’’ when you don’t need what someone is selling. In 2015, Miami set another tourism record, attracting 15.5 million overnight visitors, a 6 percent increase from last year. Have you ever heard someone say: “Gee, I’d pack up my bags for a week at South Beach but they don’t have slot machines." 
In fact, there already is a glut of pari-mutuel gambling halls in South Florida. Add a Genting casino to the mix and you’d spread too few customers among too many providers, a microcosm of what brought Atlantic City crashing down. The casino sellers just look at the rubble and say, “Carry on." 
The reason international gambling outfits like Genting are so desperate to tap Florida is because they are tapped out everywhere else. Google “casino saturation’’ and see for yourself. 
A common myth perpetuated by the industry is that more and bigger casinos spur economic development and create jobs. 
In fact, the state’s chief economist has dismissed that argument. Casinos don’t create new business. They simply divert money that would have been spent elsewhere to slot machines and card tables. 
In its comprehensive analysis of the Florida gambling market, the Spectrum Gaming Group reported that 93 percent of revenues from an expanded casino market would come from residents, not a stampede of high rollers flying in from around the globe. That means little economic benefit, no significant number of new jobs and no increases in local salaries. 
This is all public record, not No Casino spin. 
But for argument’s sake, why not? Why not open the door to more casinos? Here is my answer: Casinos create gambling addiction and then profit from it. Research indicates that living close to a casino doubles the chance of someone becoming a problem gambler, with a third or more of casino revenues coming from such problem gamblers. 
There also is growing research about the addictive nature of high-tech slot machines, which actually can transfix players in a zone, dribbling out just enough small winnings to keep them pumping in more money. It’s all about increasing seat time to maximize losses. 
As people are converted to problem gamblers, they become more prone to higher rates of suicide, divorce, crime and bankruptcy. 
What does it tell you that in 2014, the casino industry undertook an effort to stop parents from abandoning their children in parked cars while they gamble? 
Or that the FBI’s Boston office warned the growth of the casino industry in the region could lead to an increase in organized crime and public corruption. 
No Casinos and Orlando are not Steve Norton’s problem.
His product is his problem.
John Sowinski is president of No Casinos, a long-standing campaign to stop the expansion of gambling in Florida.
- See more at: http://www.sunshinestatenews.com/story/mostly-only-casinos-want-casinos-florida#sthash.hsSNkvoK.dpuf

Well done! 

We all know how Atlantic City's Fairy Tale became a nightmare....leaving Atlantic City on the brink of bankruptcy because of Gambling Market Saturation. Were the streets ever paved with the GOLD that was promised? 

When the Casino Fever was contagious in Massachusetts, Steve Norton was salivating to invade....at the time, a poster employing the name 'Steve Norton' continued to post endlessly in response to each newspaper article promoting the great wonders of Predatory Gambling, to paraphrase: "and you don't even need to graduate from high school to get one of those great jobs...' 

At the time, Centaur, Mr. Norton's Indiana endeavor had filed for bankruptcy to essentially re-negotiate terms with the state...while also buying another casino out of bankruptcy. In response, the "Steve Norton" poster wrote:

 You mention Centaur, which is not in Bankruptcy, but has been unable to pay interest due. But you fail to mention the extraordinary up front fee to Indiana of $250 million for 2,000 slots and a tax that averages nearly 50%. Part of the reply: 

If you made a poor business decision, should a state bail you out? Steve Norton wrote an Op Ed, printed in the New Bedford Standard Times that began: 

I have no problem with anyone being opposed to gaming, whether on moral, religious or even economic reasons. 

Didn't Mr. Norton also file for bankruptcy in Pennsylvania to preserve a Gambling License? All so very complicated! 

When the Gambling Market becomes saturated, the bankruptcy court allows 're-negotiation' of terms, such as Twin River in Rhode Island that was approved to preserve greyhound racing and jettisoned it in bankruptcy court, along with other issues. Mr. Norton paints a rosy picture. 



Sunday, May 8, 2016

Workers are losing ground as Atlantic City casinos struggle






MAY 6, 2016

Workers are losing ground as Atlantic City casinos struggle







A casino worker holds a sign critical of billionaire Carl Icahn, who owns the Tropicana and Trump Taj Mahal casinos in Atlantic City, N.J,. during a protest outside the Tropicana on Friday May 6, 2016. Atlantic City casino workers have seen their wages increase by just 80 cents an hour over the last 12 years, and have begun what will likely be their toughest negotiations in nearly four decades as the casinos struggle to recover from the contraction of the gambling industry, and the city itself teeters on the edge of bankruptcy and a state takeover. Wayne Parry AP Photo




Read more here: http://www.charlotteobserver.com/news/article76070647.html#storylink=cpy

Monday, February 16, 2015

In Maryland, more voters object to growing casino industry, poll finds




In Maryland, more voters object to growing casino industry, poll finds



A new Washington Post-University of Maryland poll shows that 38 percent of state voters said the expansion of casino gambling, such as the slot machines at Maryland Live, has been a “bad thing.” (Mark Gail/THE WASHINGTON POST)

February 15 
 
Maryland has gone all in on gambling. But with its sixth casino set to open next year, more voters are voicing opposition to the bet.

In one of the country’s most concentrated casino markets, 38 percent of Free State voters said the expansion of casino gambling has been a “bad thing” in a new Washington Post-University of Maryland poll. That’s up 11 points from a 2012 poll, when 27 percent of respondents felt negatively toward the state’s addition of slots casinos.

The growing disapproval comes as the $925 million MGM National Harbor prepares to open next year in Prince George’s County.

Negative views about gambling increased primarily in Baltimore and Baltimore County and in rural parts of Maryland. Baltimore is home to the Horseshoe Casino Baltimore, which opened in August.

The $422 million casino, with its 122,000-square-foot gambling floor, is located just off of Interstate 95 in the shadow of the city’s sports stadiums, making it easily accessible to city residents and out-of-towners alike.

According to the new poll, the share of respondents who said casinos are bad for the state rose 15 points in Baltimore and Baltimore County.
“To me, it’s not good,” said Richard Bunn, 60, who lives in East Baltimore. “It’s taking away from people who can’t afford it.”

Bunn said he had elderly neighbors who recently held a yard sale to raise money to go to the casino.

“How many times are you going to do that before you’re out there selling your furniture?” he wondered.

Judy Gifford, 57, who lives in Kennedyville on Maryland’s Eastern Shore, is suspect of gambling as a way to supplement the state’s budget.

“My general feeling about gambling is that it’s a regressive tax and it’s not a thoughtful way to raise money,” Gifford said. And the expansion of gambling is also a concern.

“There’s a limited pool of people who will gamble,” she said. “Then what do you do? If you look at a place like Atlantic City, it’s not a pretty picture.”

Over half of Maryland voters — 53 percent — continue to express positive feelings about casinos in the state. That is virtually unchanged from 2012. Much of the increased opposition to gambling seems to have come from people who previously were undecided on the issue. In 2012, 16 percent of respondents expressed no opinion on whether gambling was bad for the state. In the new poll, just 4 percent did not express an opinion.

For years, there was significant opposition to gambling in Maryland, but that receded as gamblers took their money to casinos in neighboring Delaware and West Virginia. In 2008, voters overwhelmingly approved slots at five locations. Two years later, Hollywood Casino Perryville became the first gambling venue to open in Maryland, followed by Ocean Downs, Maryland Live, Rocky Gap and Horseshoe. In 2012, voters agreed by a narrow margin to add table games and a sixth casino, which is now rising along the Potomac River in Prince George’s. The explosion of casino gambling has produced a huge windfall for the state, generating $2.3 billion in revenue over the past five years.

Sharon DiGioia, who lives in Western Maryland, says she understands why people object to casinos, but she supports them because they raise money for the state. She also believes that if Maryland didn’t have casinos, residents would simply travel to nearby states to gamble.

“Our economy sucks here more than the rest of the state,” said DiGioia, 55, an elementary school art teacher. “So as long as it’s regulated and the money is going to education and elder care, I think it’s okay.”

Broadly, the poll revealed that there are not many differences among demographic groups on the gambling issue. Political, racial, income and regional divides are relatively small compared with other issues, such as support for political leaders and tax policies. Conservative Republicans express the most opposition to casino expansion. Fifty-four percent of them said casino expansion is a bad thing for the state, compared with 37 percent who see it as a good thing

Some of the increased opposition is probably a result of vocal criticism of gambling by politicians and anti-gambling groups, said Steven Norton, who runs a consulting company that advises casinos and gambling interests across the country.

“Sometimes the complaints are justified, but many times they’re not,” said Norton, who argues that casinos are economic drivers that bolster local and state economies.

Maryland Sen. Paul Pinsky (D-Prince George’s), who has long been a vocal opponent of gambling in the state, said he’s not sure why there has been an uptick in negative feeling about gambling, but he thinks it may have to do with the very visible troubles faced by casinos elsewhere.

“As we’ve seen, Atlantic City is getting crushed,” he said. “They’re closing casinos every day. Delaware is being hit. It may be people starting to realize that we are suffering or we will be suffering those same things.”

He said: “I don’t want to be in an I-told-you-so mode. I just have always said, you don’t build your economy in a sustainable way on gambling. You build it with jobs that have more permanence and hopefully you’re creating a societal value.”

This Washington Post-
University of Maryland poll was conducted by telephone Feb. 5-8 among a random sample of 1,003 adult residents of Maryland. Interviews were conducted by live interviewers on both conventional and cellular phones. The margin of error among 911 registered voters in the poll is plus or minus four percentage points.



http://www.washingtonpost.com/local/in-maryland-more-voters-object-to-growing-casino-industry-poll-finds/2015/02/15/12b91ce6-b216-11e4-854b-a38d13486ba1_story.html




Scott Clement and Peyton Craighill contributed to this report.

Thursday, December 18, 2014

AGA Whines that Their PROPAGANDA isn't Respected, Steve Norton, Snake Oil Salesman Returns!



A comment was posted by "Steve Norton" in response to this article [posted below]...it would seem it's the very same Steve Norton of Atlantic City Fame who apparently never saw the underage gambling and much else. And is that the Steve Norton whose racino filed for bankruptcy to avoid its commitment?

On the right side is a list of categories. Click on Steve Norton to view some of his history.

Steve Norton has been a Snake Oil Salesman forever!


[Great Book BTW: "TEMPLES OF CHANCE How America Inc. Bought Out Murder Inc. to Win Control of the Casino Business" by David (Cay) Johnston. New Jersey closed its eyes to a great deal as long as the $$$ rolled in. As you know, David Cay Johnston has written extensively on financial/economic issues and his writing are well researched, heavily footnoted. Simply breathtaking! Ya wanna know how/why the NJ Gambling Commission ignored Trump's Money Laundering under Steve Perskie's Chairmanship? If that the same Steve Perskie that dazzled the Massachusetts Gambling Commission who were too lazy to conduct even a simple google search?]








American Gaming Association 'extremely disappointed' in Boston FBI agents saying casino gaming will increase public corruption in Massachusetts




Vincent Lisi
FBI Special Agent in Charge Vincent Lisi, head of the FBI's Boston office, takes questions from reporters during a news conference, Monday, Dec. 15, 2014, in Boston. Lisi, whose office covers Massachusetts, Maine, New Hampshire and Rhode Island, said he's concerned the expansion of casino gambling might lead to an increase in public corruption and financial and organized crime. The American Gaming Association, which represents the gambling industry, said Lisi's concerns were off base but the group hopes they opens the door for a more constructive relationship with the FBI going forward. (AP Photo/Steven Senne) (Steven Senne)
 
 
By Robert Rizzuto | rrizzuto@repub.commasslive.com
Email the author | Follow on Twitter
on December 17, 2014 at 9:35 AM, updated December 18, 2014 at 7:29 AM
 
 

The American Gaming Association is taking issue with the FBI in Boston warning that the proliferation of casino gaming will bring renewed issues of public corruption and organized crime to Massachusetts.
 
At a press conference held on Monday in Boston, Special Agent Vincent Lisi said the expansion of casino gaming creates "fertile ground" for a slew of criminal problems, most notably public corruption cases as "you have a heavy amount of regulation, along with a lucrative business."
 
The AGA, a trade group representing the gambling industry, took issue with the FBI's assertions that Massachusetts licensing up to three casinos and a slots parlor will create such a public integrity crisis to necessitate it launching a "Stop Corruption Now" awareness campaign.
 
"As casino entertainment has expanded in a safe and beneficial manner to countless communities across the United States over the last twenty years, tired stereotypes of public corruption and organized crime have been proven false," said AGA President and CEO Geoff Freeman in a statement.
 
American Gaming Association Logo
 
"The American Gaming Association and our entire industry are committed to working with law enforcement to ensure the integrity of our product, the safety of our customers and the best interests of the communities in which we do business," he continued. "We hope these unfortunate comments will open the door to a more constructive dialogue and a lasting partnership with the FBI in Massachusetts and beyond."
 
In Massachusetts, the state's 2011 Expanded Gaming Act which paved the way for casino gaming required that companies wishing to do business here be vetted to eliminate any potential bad eggs among the group.
 
The Mass. Gaming Commission put each casino company and its executives through an investigative process and each of the companies which have been licensed were put on the spot over a variety of topics ranging from the actions of past employees to doing business in Macau, China. In the end, Caesars Entertainment withdrew its application and now is suing the state. The commission determined Ourway Realty, which owned the Plainridge harness race track, was unsuitable to do business in Massachusetts gaming.
 
Since then, Penn National Gaming took over that project and was licensed for its $225 million Plainridge Park Casino slots parlor in Plainville; MGM Resorts International was licensed for its $800 million resort casino in Springfield and Wynn Resorts was licensed for its $1.6 billion resort casino in Everett.
 
Of the three, only Wynn has had issues regarding peripheral criminal implications as joint owners of the land it is to develop are charged with trying to hide that a convicted felon stands to profit from the property transaction. Additionally, a recent New York Times report that Wynn was under investigation by the IRS led to the state gaming commission to probe the matter.

[MONEY LAUNDERING]


This story was amended on Thursday morning to clarify that Caesars Entertainment pulled out of the application process.



http://www.masslive.com/politics/index.ssf/2014/12/american_gaming_association_ex.html


 
Most US gaming jurisdictions have an enviable reputation of keeping undesirable investors and individuals away from their casino industry. You have to go back to Nevada, prior to the 60's to find any mob involvement in legal casino gaming. Governor Grant Sawyer eliminated mob investment in Las Vegas in the 1960's. In New Jersey, under the leadership of ex Prosecutor, Governor Brendan Byrne, it was tougher to qualify as an operator, investor or supplier of an Atlantic City casino, than any other position in government or business in the United States. And states like Massachusetts, have followed suit, with detailed investigations of operators, and soon executives, suppliers and investors. The new FBI anti corruption tip line will get very little action from the casino industry, as too many eyes are already watching every financial transaction. The FBI will find its attention more deserved in other industries.


 
 
 

Sunday, June 22, 2014

Revel's 2nd Bankruptcy,Gambling Market Saturation, Declining Revenues and Tax Breaks


Declining Gambling Revenues in Louisiana:

Even with Margaritaville bringing in nearly $11.4 million, statewide gambling revenues were lower in May than they were a year before. The 14 riverboats, four racetrack casinos and Harrah’s land-based casino brought in $213.9 million during May, compared with $214.2 million the year before. That was the third consecutive month in a row the state’s gambling winnings were down.

What’s going on in Louisiana is mirrored in other casino markets.

According to The New York Times, casino revenues in Atlantic City were $3 billion for 2013, down 41 percent from the 2006 peak of $5.2 billion. One Atlantic City casino already has closed this year, and the operators of the $2.4 billion Revel Casino Hotel said earlier this week that the property could close by mid-August if a buyer is not found.

Nevada gaming revenues have been down three times for the first four months of the year when compared with 2013 figures, according to The Las Vegas Review-Journal.

In neighboring Mississippi, casino revenues are down nearly 5 percent through May when compared with 2013 figures. The decline could become worse: On June 2, Harrah’s Tunica, the largest casino in the state, shut down, putting nearly 1,000 employees out of work. Caesars Entertainment said it closed the casino after years of trying to find a buyer because it wasn’t making enough money to keep the property going.

FROM: BR casino revenues down again


RACETRACK casinos used to contribute as much as $US240 million ($255m) a year to Delaware’s tax coffers. But as the northeast becomes saturated with gambling venues, the state’s casino revenue has tumbled, prompting a new industry request — for a tax break.

“It’s a different world for the Delaware casinos,” said Democratic Governor Jack Markell, who supports reducing the tax burden on casinos by $US20m a year to help them compete.

FROM:


WDEL 1150AM

US northeast's chips are down in casino boom
But as the northeast becomes saturated with gambling venues, the US state's casino revenue has tumbled, prompting a new industry request — for a






 
 
ATLANTIC CITY, N.J. (AP) — A luxury casino goes bankrupt and threatens to close, struggling to survive in a cutthroat market. The world's largest poker website renews its efforts to operate in New Jersey. A new agency ramps up its drive to attract more midweek convention business.
 
That all happened this past week, showing three of the major changes buffeting Atlantic City and reshaping the nation's third-largest gambling market.
 
The biggest development came Thursday, when Revel Casino Hotel filed for bankruptcy for the second time in a little over a year. But this time, the casino that cost $2.4 billion to build warned that it will be forced to close this summer if a buyer can't be found through a bankruptcy court auction.
 
It is the latest manifestation of a problem that has been afflicting Atlantic City since 2007, shortly after the first casino opened in neighboring Pennsylvania: close-by competition in an increasingly saturated market taking customers and dollars away from Atlantic City. The casino that many had hoped would be a game-changer when it opened just two years ago didn't change the game after all; it just lost it.
 
"They did so much in the early days to be a resort hotel that had a casino rather than a casino hotel and that turned off a lot of casino customers," said Steve Norton, an Indiana casino analyst who was vice president of Resorts when it opened in 1978 as Atlantic City's first casino. "They've done a lot since then to change that."
 
If a buyer can be found, Revel is expected to sell at a steep discount. Such a buyer could succeed where two previous sets of owners have failed, Norton said.
 
"They'll be getting it for pennies on the dollar, and coming in that low, as long as their varying revenue can cover their expenses, they'll do well," he said.
 
The day before Revel's bankruptcy filing, a Canadian company that's buying the PokerStars website began talks to get it licensed for Internet gambling. PokerStars, the world's largest poker site, had tried twice to get approved in New Jersey, one of three states that have legalized Internet gambling.
 
PokerStars tried to buy the Atlantic Club Casino Hotel, but the deal fell apart, and the casino closed in January. PokerStars then teamed with Resorts as its online partner, but New Jersey's Division of Gaming Enforcement suspended PokerStars' application for up to two years, citing an unresolved indictment against the company's founder for the alleged violation of federal gambling statutes and the involvement of certain PokerStars executives with Internet gambling operations in the United States after they were outlawed.
 
But now that Amaya Gaming Group is buying PokerStars and Full Tilt Poker for nearly $5 billion, the PokerStars executives who concerned New Jersey regulators are stepping down. Amaya began talks with the gaming enforcement division Thursday, and its director, David Rebuck, said he is optimistic Amaya could get PokerStars licensed by fall.
 
The presence of PokerStars, which had 70 percent of the U.S. Internet gambling market before it became illegal, could breathe new life into New Jersey's fledgling Internet gambling market, which has hit a wall after just six months. The online market has declined for two months in a row and is taking in a fraction of the $1 billion that Gov. Chris Christie predicted for its first year of operation.
 
And Meet AC, a new group set up to attract meeting and convention business to Atlantic City, hired an executive director with experience running convention bureaus in Kentucky and Rhode Island.
 
Atlantic City has been working for eight years to try to diversify itself and not rely solely on gambling revenue, which has been plunging for seven straight years. Attracting more meetings and conventions would help fill casino hotel rooms during the week, when hotels are much less busy and rooms sell for break-even prices or even at a loss.
 
Caesars Entertainment, which is building a $126 million convention center near Harrah's Resort Atlantic City, estimates Atlantic City gets 1 percent of the $16 billion Northeast U.S. convention and meetings market.
 
 
 



 

Wednesday, August 21, 2013

Atlantic City’s losing streak





Atlantic City’s losing streak, as more states compete for gambling revenue and jobs


By J. Freedom du Lac
Published: August 19


The billboard hard by the Atlantic City Expressway is supposed to speak for a single casino, not an entire company town. But Revel Casino Resort’s marketing slogan resonates loudly throughout this struggling seaside resort.

“Gamblers Wanted,” it says. And how.

Atlantic City, the erstwhile East Coast gambling mecca, is on an epic losing streak; over the past six years, competitive and economic forces have crushed the local casino economy, driving revenue down more than 40 percent.

Once, the city that inspired the board game Monopoly had its own gambling monopoly on this side of the country. Now, it’s more Marvin Gardens than Boardwalk, with states from Maryland to Maine lining up to join the high-stakes game for tax revenue and middle-class jobs.

In 2006, when gambling in Atlantic City reached record levels, there were 27 commercial and tribal casinos, slots parlors and racetrack casinos in the Mid-Atlantic and Northeast, according to the University of Massachusetts at Dartmouth’s Center for Policy Analysis. Now, there are 55 — with more casinos coming in Maryland, Pennsylvania and Massachusetts.

Pennsylvania, which first allowed casino gambling in 2006, surpassed New Jersey last year as the second-largest U.S. gambling market (after Nevada), with players choosing convenience (a single casino close to home) over critical mass (there are a dozen casinos in Atlantic City, that state’s only gambling locale).

In Maryland, which has embarked on its own massive gambling expansion, casino revenue tripled in the latest fiscal year. Thirteen months after opening, Maryland Live Casino — which has hired dozens of dealers and gaming supervisors away from Atlantic City — rivals the ocean resort’s biggest player, Borgata Hotel Casino and Spa. In July, Maryland’s largest casino collected $52.4 million from its slot machines and table games, compared with $64.2 million at Borgata.

This month, the Arundel Mills casino will open a 52-table poker room that analysts say is likely to pull even more business out of Atlantic City. As if to punctuate the shifting fortunes, poker at Maryland Live will launch Aug. 28 just as the opulent if oft-empty poker room closes at Revel, a $2.4 billion beachfront property that filed for bankruptcy less than a year after it opened.

There are still profits being made around Atlantic City, where the first casino opened on the historic boardwalk 31/2 decades ago. But the barrier-island town has been losing its lifeblood business at a breathtaking clip. In 2006, gross gambling revenue here was a record $5.2 billion. The total has gone down every year since; in 2012, the number was barely over $3 billion — the lowest mark since 1991.

“The situation there has become catastrophic,” said Steve Norton, a gambling analyst with a long history in Atlantic City, where he opened the first casino, Resorts International, in 1978. (His son, Robert Norton, runs Maryland Live.)

And the outlook isn’t any better this year, even as surveys suggest Atlantic City’s image is improving: In the first half of 2013, gambling revenue was off by nearly 11 percent.

Officials tout increased luxury-tax and occupancy-tax revenue, which indicate increased spending on non-gambling activities and attractions and on lodging in roughly 20,000 rooms. But Atlantic City is a gambling-dependent city with a gambling-based economy that is shrinking rapidly.

“It’s dismal,” said David G. Schwartz, director of the Center for Gaming Research at the University of Nevada at Las Vegas. “They have serious issues.”

And more threats loom. In November, New Yorkers will vote on a major casino-expansion measure.

Rebranding a gambling city

One recent morning, in the shadow of the Trump Taj Mahal, men and women in suits went about the work of saving Atlantic City.

“What we need to do is try to rebrand and reimagine Atlantic City as a national destination,” said John Palmieri, who was appointed by New Jersey Gov. Chris Christie (R) to run the Casino Reinvestment Development Authority.

Christie has called the city’s revitalization “a key priority” of his administration. His photo is displayed in the lobby of the converted firehouse, where state employees have been tasked with turning his bet into a winner.

Legal sports books at casinos and horse tracks around the state could help. New Jersey voters approved a sports-betting measure in 2011, but it was blocked by a federal judge. The state has appealed.

Palmieri’s agency is not directly responsible for improving gambling revenue. Instead it focuses on making Atlantic City a more attractive place to visit and on trying to gin up more convention and meeting business. (Atlantic City has just a tiny fraction of the $16 billion meetings market in the Northeast, according to the reinvestment authority.)

“We need market,” said Tom Ballance, the president and chief operating officer of Borgata, where revenue has declined at a more modest rate than most other Atlantic City properties.

More than 27 million people visited Atlantic City last year, according to South Jersey Transportation Authority estimates. But blight and crime have been scaring visitors away, Palmieri said. So the reinvestment authority, which takes a cut of gambling revenue from the casinos to fund its efforts, has been trying to clean up the city by knocking down eyesores, opening neighborhood parks, adding art installations and new landscaping and underwriting commercial and residential projects.

“We need to make it more inviting and give people a sense of comfort,” Palmieri said. “We are trying to make a statement to people who haven’t visited Atlantic City for years because they think it isn’t safe.”

Reality hasn’t fully cooperated: Shortly before Memorial Day last year, two Canadian tourists — an 80-year-old woman and her daughter — were stabbed to death in broad daylight near Bally’s Casino.
Wander too far from the casinos now, and you’ll quickly be reminded that it’s been years since Atlantic City was a prosperous place. Revel, an eye-popping glass high-rise that screams Las Vegas luxe, is close to a run-down housing project. There’s a soup kitchen next to the reinvestment authority’s parking lot and a methadone clinic nearby. Pawn shops are everywhere.

Nearly a third of the 40,000 residents here live below the federal poverty line, and the homeless problem is serious enough that the reinvestment authority runs daily sweeps beneath the boardwalk to flush out guests from “the Underwood Hotel,” as some locals call it.

Cashing in on the beach

Still, there are signs of improvement all over Atlantic City, most significantly on the boardwalk, which has been cleaned up — and opened up by the casinos, some of which once limited physical and visual access to the waterfront in an effort to keep customers inside.

At Resorts, where ocean-facing windows were once covered with brick, the new Jimmy Buffett’s Margaritaville restaurant spills onto the boardwalk, across from the Landshark bar, where a song by Kenny Chesney was blaring on a recent afternoon.

Hundreds of people were on the beach near the bar.

“You never used to see that,” said Don Guardian, director of the reinvestment authority’s special improvement division. “People went for the casino, not for the resort.”

The changes will be showcased in September when the Miss America pageant returns to its birthplace for the first time since moving to Las Vegas in 2006. Earlier this month, in anticipation of the pageant’s homecoming, a crew was replacing the sidewalks around Boardwalk Hall, which was glistening after a power wash.

Miss America was a marketing gambit itself, cooked up to sell the idea of Atlantic City as a year-round resort (or at least one that didn’t shut down after Labor Day). With the pageant’s return, that message can be reamplified along with another, more urgent one: Atlantic City is back, with more to do than ever. (In reality, Atlantic City never went anywhere — not even after Hurricane Sandy, which blew through without much incident.)

There are more nightclubs, more restaurants, more concerts, more burlesque shows, more shopping, more outdoor activities, more walkable spaces, more stuff, including beach volleyball courts and a high-tech light show that’s beamed onto the backside of Boardwalk Hall every night.

“We’re trying to change the old perception that there’s not enough to do here,” said Liza Cartmell, president of the Atlantic City Alliance, a casino-funded nonprofit organization that’s responsible for the city’s marketing. A “Do AC” campaign is being pushed aggressively up and down the East Coast.

In Baltimore, an important secondary feeder market, the Atlantic City Alliance is spending nearly $2 million on advertising in 2013.

According to the most recent internal research, positive perceptions of Atlantic City are on the rise.

“We’re making progress,” Cartmell said. But her bosses — the eight casino executives on the Atlantic City Alliance board — probably won’t be applauding her at a meeting anytime soon. Gamblers still wanted, she said.

“They won’t be happy until they see their gaming revenues go up.”


http://www.washingtonpost.com/local/atlantic-city-on-losing-streak-as-more-states-compete-for-gambling-revenue-and-jobs/2013/08/19/e7891b48-01ef-11e3-9a3e-916de805f65d_story_2.html

Tuesday, January 29, 2013

Centaur


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Racinos ask permission to use mobile devices for gambling

The Indiana Gaming Commission might allow the use of casino issued iPads for gambling on casino premises.
 

Friday, January 11, 2013

Indiana Slot Barn Bankruptcy

On the right side of this blog are categories that contain historical articles. [Click 'Older Posts' at the bottom to see additional articles.]

Centaur previously filed bankruptcy and is now purchasing another Slot Barn out of bankruptcy.

In addition, the overstated projections seem to be discredited with this comment:

The two racinos employ about 2,000 people altogether.

There is no indication that Slot Barns increase attendance at horse races, merely rewarding already wealthy investors.


Gaming board OKs sale of Shelbyville casino

Published : Thursday, 10 Jan 2013

INDIANAPOLIS (WISH) - The Indiana Gaming Commission on Thursday approved the sale of Indiana Downs and Grand Casino in Shelbyville, 24-Hour News 8 news partner The Herald Bulletin reports .

The owners of the Shelbyville casino and racetrack filed for bankruptcy in 2011.

Last fall, Centaur – owner of the racino in Anderson, Hoosier Park - made the winning bid for Indiana Downs and Grand Casino. A bankruptcy judge approved the deal in November, but it still needed regulatory approval from the Gaming and Horse Racing commissions. Centaur was to pay $500 million and assume the second racino’s debts.

The Horse Racing Commission approved the sale last month. A final review by the chairman of the Indiana Horse Racing Commission and several financing and federal regulatory and legal approvals will complete the purchase.

The two racinos employ about 2,000 people altogether.

http://www.wishtv.com/dpp/news/local/east_central/racinos-fate-in-hands-of-gaming-board

Saturday, September 29, 2012

Ignoring the Truth





Mohegan Sun casino layoffs in Connecticut get mixed reaction in Palmer

Published: Friday, September 28, 2012

Mohegan Sun Layoffs 2012.jpg

Associated Press file | Jessica Hill

The Mohegan Sun casino is seen earlier this year in Uncasville, Conn. The casino is laying off more than 300 employees and replacing its CEO, the Mohegan Tribal Gaming Authority's chief executive said Thursday.

PALMER News that Mohegan Sun casino laid off more than 300 employees and replaced its chief executive officer doesn't worry some proponents of the Connecticut-based company's plan to build a resort casino here.

But others are questioning whether or not Mohegan, which has long wanted to build a casino off Thorndike Street (Route 32), has the financial means to make the project happen, and if this is a sign that the market already is saturated with too many casinos.

Town Council President Philip J. Hebert said he was called personally by Paul I. Brody, Mohegan's vice president of development, about the layoffs.

Hebert said he's not sure what to think of the news, but wondered if there are already too many casinos for any of them to be prosperous.

"Has the industry become too saturated?" Hebert questioned.

Brody said the Connecticut casino is facing competition from the new Resorts World Casino at the Aqueduct racetrack in New York City, but he said what is happening in Connecticut has no impact, and no relevance, on the company's plans for Palmer.

"It's really a very different set of circumstances," Brody said.

The downsizing will help match the volume of business in Connecticut, he said.


Stephen Norton, a gaming consultant from Illinois and a director of the company leasing land in Palmer to the Mohegan Sun, also said the layoffs are separate from the company's casino plans for Palmer.

"That's good management -- bringing employment in line with supply and demand," Norton said of the layoffs. [Since Mr. Norton has had his share of bankruptcies, he should know.]

Mohegan is one of several casino operators competing for the sole Western Massachusetts casino license. Under the state gaming law approved in November 2011, three casino licenses and one slot parlor license will be awarded. The state gaming Commission, which is overseeing the process, has announced a draft master schedule that calls for granting a license for a casino or a slots parlor by February 2014.

"I think they are still viable, assuming they find the right financial partner," At-large Town Councilor Paul E. Burns said.

Brody said they are still working on identifying a financial partner.

Both Norton and Iris L. Cardin, co-chair of Quaboag Valley Against Casinos, said they are concerned that Mohegan has yet to announce a financial partner for Palmer.

Cardin said "it's looking bad" for Mohegan.

"They need to just cut and run and leave us alone," Cardin said.

Burns, a casino proponent, said it would show Mohegan's commitment and truly show evidence of its viability if the $400,000 gaming application fee was paid. One competitor for the Western Massachusetts license - MGM Resorts International, which has a proposal for Springfield's south end - has paid the fee.

Brody said they still plan to pay the fee when the application is submitted, which may be as soon as December.

Town Manager Charles T. Blanchard said Mohegan has indicated its commitment to the town, and its desire to expand to the Massachusetts market. Blanchard said studies are ongoing to evaluate a casino's impacts on traffic the town. This week, consultants interviewed department heads about fiscal issues.

Wonder if they made available the Citizens' Casino Study Report indicating the cost to host Mohegan Sun would be $18 MILLION to $39 MILLION annually, not including the $50 MILLION to bring water from the Quabbin.

Said District 4 Town Councilor Donald Blais Jr. about Mohegan, "I'm not too worried . . . I think they'll be alright."

Jennifer L. Baruffaldi, a spokeswoman for the pro-casino group, Citizens for Jobs & Growth in Palmer, said she remains positive about the Palmer project. She said Mohegan has the same struggles as other casino operators.  [Ms. Baruffaldi is a very pleasant person lacking education in financial reporting. Because Mohegan Sun's debt is publicly traded, their SEC filings are available online for review.]

Edward S. Harrison, chairman of the Western Massachusetts Casino Task Force, a neutral group, questioned if bringing casinos to Massachusetts makes sense if the casino industry is having difficulty.

"Is it really going to be profitable?" Harrison said.

Harrison asked what will happen if the casinos are built, then the companies resort to layoffs.

Mitchell G. Etess, the chief executive of the Mohegan Tribal Gaming Authority, told The Day of New London that the layoffs affect workers in nearly every department and job level. About 8,000 employees remain. Etess blamed the layoffs on the weak economy and competition from the New York City casino.

“You have to put this in the context of the amazing decline in business we’ve experienced,” Etess told The Day.

James Ferrerra III, Springfield City Council president, said the layoffs do not surprise him.
"Casino companies are not immune to the economic climate out there," Ferrerra said.

Etess told The Day of New London that Jeffrey Hartmann will be replaced by Bobby Soper, chief executive officer of Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa. Hartman, a Mohegan Sun executive since 1996, was the casino’s chief executive officer since 2011.

Staff writer Dan Ring contributed to this report.


http://www.masslive.com/news/index.ssf/2012/09/reaction_to_mohegan_sun_layoff.html


Palmer Casino Backers React to Mohegan Layoffs