Table games approved by state House, Senate

That's good news if you like black jack and roulette, and even better news (at least, on its face) for the regional labor force -- table games are labor intensive, and introducing them to Pennsylvania casinos will mean thousands of extra jobs for dealers:

"We're waiting for the state to say go so we can run as fast as we can to get us to the opening [for table games]," said David Patent, acting general manager for Rivers Casino.

The introduction of table games not only will generate more revenue for the state but could mean as many as 1,500 more casino-related jobs in Western Pennsylvania.

Mr. Patent said Rivers is planning to hire another 300 to 350 employees, including dealers, supervisors and managers, to staff about 80 games and provide support.

A statewide perspective: "The state House gave final approval last night to Senate Bill 711, which permits table games to be added to slots casinos at racetracks, such as The Meadows in Washington County, and stand-alone casinos, such as the Rivers in Pittsburgh, and two smaller, resort hotel casinos, which could include Nemacolin Woodlands in Fayette County if it gets lucky. The House vote -- 103 to 89 (with 11 members absent) -- followed Senate approval Tuesday night. The bill now goes to Gov. Ed Rendell, who is expected to sign it by week's end."

That could mean table games will be here by the summer.

... It all happened so fast.* Less than two years ago, legislators and the governor's office were predicting that there wouldn't be any table games during Ed Rendell's administration. But recessions and budget deficits have a way of forcing politicians to break their promises ("Read my lips: No new taxes"). Thanks to casinos, the governor has been largely able to avoid major tax increases over the last several years. With the governor's 2010-2011 budget address just around the corner -- which is weird, because the table games bill actually represents the final piece of the 2009-2010 budget -- it should be interesting to see if Rendell stands pat on taxes, or tries again, in is lame duck year, to squeeze some tax revenues out of cigar peddlers and natural gas drillers.

Either way, to the degree that they present an easy fix for state revenue problems, casinos have been maxxed out for the time being, and the next governor won't have the casino card in his back pocket. He could always approve additional casinos, I suppose, or higher gambling tax rates, but that's something the existing casino owners aren't going to be thrilled about. You can only visit this well so many times.

But that's not Ed Rendell's problem anymore, is it?

*So a snail is heading out for the evening. He is mugged by a gang of turtles. He calls the police -- when they arrive, they ask the slug what happened. He says, "I don't know. It happened so fast."

... the table games will give the state a one-time infusion of revenue, thanks to the one-time license fee that each casino will have to pay in order to receive a table games certificate, but will the games really create more state revenue in the long run? Or will the table games merely draw away from the slots play? This guy -- who happens to sell slot machines for a living -- thinks we'll actually see less tax revenue once table games are allowed:

"For Rich Orlando, the dawn of table games in Pennsylvania would be no winning hand. As the largest supplier of electronic table games to the state's nine casinos, Mr. Orlando sees the legalization of live poker, blackjack and roulette as a losing proposition for his business, TDN Money Systems of Aston, near Philadelphia. ... Mr. Orlando also believes the demise of electronic table games could end up costing the state money. He argues that the games -- in essence slot machines -- produce on average more revenue than will the live versions, which are more labor intensive and will have a far lower tax rate. By his own analysis, he estimates the state could lose out on tens of millions of dollars a year in making the switch."

... Morning Call: "Paraphrasing Winston Churchill, Rep. Mark Cohen, D-Philadelphia, said table games are the worst way to raise revenues ''except for all the other worst ways.' ''

... The Three Rivers Poker blog is getting excited: "Rivers is currently planning a 15 to 20-table poker room. That's a little small. (For comparison, Wheeling Island has 20 tables) I'm betting -- and hoping -- that number increases at some point. The Meadows, meanwhile, has said repeatedly that their poker room will feature 25 tables."

... David LeVan throws his hat in the ring -- again: :Gettysburg businessman David LeVan called the state's passage of casino table game regulations Wednesday 'good news for Adams County.' Overall, the bill aims to legalize games like black jack and roulette at state casinos, and reopen the gaming application process to groups like Mason Dixon Resort and Casino, led by LeVan and business partner Joseph Lashinger."

Dispatches from the border

"The courts may still weigh in, but Penn National Gaming is moving forward on one of two planned casino projects in Ohio. The Wyomissing, Pa.-based regional casino operator purchased a 44-acre site in East Toledo, Ohio for a planned $250 million casino. The site cost $2.5 million. Penn National plans to open the Hollywood Casino Toledo in the second half of 2012. Penn National also plans to put a casino in Columbus, Ohio."

... The casinos won't open for a few years in Ohio, but you can train for a dealer's job well before that, at a card-dealing school.

Dispatches from the border from the border

A domino effect in action: "A top Indiana state senator said Wednesday that his committee will consider legislation that would allow riverboat casinos on Lake Michigan and the Ohio River to move inland in hopes of staving off new competition from neighboring states. Senate Appropriations Chairman Luke Kenley, R-Noblesville, said Indiana's casinos deserve to be protected because they are fairly clean and well-regulated, employ 16,000 people, and bring in about $1.1 billion in annual state and local tax revenue."

Odds and ends

During the recession, lots of casinos brought back penny and nickel slots. The same strategy is being applied in the introduction of low-stakes, $2 blacljack at Atlantic City casinos ... Tropicana bankruptcy update ... A nice look at casino performances across Pennsylvania ... Vegas is still hurting, with some well-known casinos offering rooms at less than $50 a night.

As a last resort ...

So much for dipping a few toes in the water -- not only is the governor now on board with table games, thanks to the budget crunch, but the Legislature is also looking at expanding the number of casinos. This, before we've even finished building the first round of casinos (thanks to the two holdouts in Philly, a racetrack casino that may or may not be built in Lawrence County, and a yet-unawarded resort casino license).

From the PG's Tom Barnes:

With major tourism sites such as a Valley Forge hotel, the Nemacolin Woodlands resort and now a hotel near Gettysburg thinking about adding slot machines, state legislators may increase the number of "resort hotel" slots licenses from the current two to as many as four or five to accommodate the demand. As part of the discussion to allow table games, the state Legislature is talking about "two to three additional Category 3 licenses" statewide, said Brett Marcy, spokesman for House Majority Leader Todd Eachus, D-Luzerne. The Legislature for more than a month has been working on the rules to allow table games -- the tax rate and license fee casinos would pay -- holding up subsidy money for colleges and nonprofit organizations that would be funded by expanded gambling.

Supply and demand is a tricky thing. While the demand for extra casino licenses might be there, the previous casino bidders made their bids on the assumption that there would be a certain number of casinos. Start adding to that number, competition increases for a finite number of gamblers.

... Will Rivers Casino ever come close to meeting revenue expectations?

"After a couple of big opening weeks, the casino saw gross terminal revenues falter, dropping to a low of $2.76 million during the week of the G-20 economic summit in Pittsburgh. The early results were far off the casino's own estimates for $427.8 million in gross terminal revenue in its first year of operation, prompting Standard & Poor's to downgrade the Rivers' credit rating from B to B minus and put it on its CreditWatch with negative implications. ... The last week of October, wagering climbed to more than $50 million and revenues hit almost $4 million for the first time since the second week of September. They have stayed in that general vicinity since then, although they still remain lower than projections."

... Who's the new guy?

"The newest member of the state Gaming Control Board is a Philadelphia lawyer who was part of a group that, three years ago, lost a bid for a slots license to operate a casino in Philadelphia. Former Philadelphia city solicitor Kenneth Trujillo was tapped by Gov. Ed Rendell to fill the seat on the gaming regulatory board that was vacated by Sanford Rivers of Pittsburgh, one of the governor's original three appointees in 2005. Mr. Rivers, a former Carnegie Mellon University official, recently resigned from the $145,000-a-year job. Mr. Trujillo, 50, was part of an unsuccessful group of investors that wanted to build a stand-alone slots casino called Riverwalk."

Dispatches from the border

So far, so good re: table games in West Virginia, says The Herald-Mail:

"Two years after three West Virginia counties voted to allow table games at area casinos, community leaders say their fears of crime and addiction were all for naught, unlike hopes for jobs and revenue. Voters in Hancock, Ohio, and Kanawha counties passed a measure allowing table games in the summer of 2007 after months of public debate.  Jefferson County voters rejected table games for Charles Town Races & Slots, but will be called upon Saturday, Dec. 5, to vote again on the issue ... In the Northern Panhandle, home of Mountaineer Casino Racetrack & Resort in Chester, W.Va., and Wheeling (W.Va.) Island Hotel Casino Racetrack, the benefits of expanded gaming have so far outweighed the costs, said state Rep. Orphy Klempa, D-Ohio. 'We added more gaming and we did not see more crime; the Mafia did not move in. All those fears were for naught,' he said. 'What we added were jobs for the people who live and depend on this area.'"

Then again, if the Mafia had moved in, it's not like they'd send out a "We've Moved" postcard.

Odds and ends

Isle of Capri rebounds, somewhat surprisingly  ... Kansas City, Kan., votes on a casino ... the latest from Ohio, whose voters approved casinos last month ... Are West Virginia casinos worried about Ohio yet? ...Emeril wants to open yet another restaurant at the Sands in Bethlehem.

Four years later, and we still don't know what the Foxwoods casino in Philadelphia will look like, says the Inky:

"Citing ongoing negotiations in the Pennsylvania legislature to change state gaming law, local investors in the Foxwoods casino have asked regulators for more time to produce a plan showing what their proposed slots parlor in South Philadelphia will look like. Last August, the Pennsylvania Gaming Control Board ordered the investors to submit by today architectual and artist renderings, conceptual proposals, engineering plans and 'any and all other documents relating to construction of a facilty.' The board threatened to revoke Foxwoods' license if the group failed to meet the deadline. In an interview today, Stephen A. Cozen, a lawyer for Foxwoods, said an extension until March 1, 2010, has been requested. Also by that date, a plan for financing the project must be submitted to the gaming board."

Snake Eyes, Again

Another quarter, another series of lousy reports from the casino sector:

Shares of casinos and gaming companies dropped Tuesday as various companies reported disappointing quarterly earnings, showing gaming continues to be pressured by a weak environment. The sector saw quarterly results from casino operators Wynn Resorts Ltd. (WYNN) and Boyd Gaming Corp. (BYD), lottery systems provider Scientific Games Corp. (SGMS) and gaming device maker WMS Industries Inc. (WMS) ... 

... In recent trading, Wynn dropped 8.6% to $57.67, and Boyd fell 12% to $9.35. Scientific Games lost 26% to $13.11, and WMS declined 8.1% to $43.58. Other casinos trading lower included MGM Mirage (MGM), down 8.6% to $10.05, and Las Vegas Sands Corp. (LVS), down 6.9% to $14.96. Pinnacle Entertainment Inc. (PNK) dropped 3.7% to $10.32, while Penn National Gaming Inc. (PENN) declined 3.2% to $26.43. Gaylord Entertainment Co. (GET), which operates the Grand Ole Opry, fell 4.7% to $16.48. Gambling device and technology maker Bally Technologies Inc. (BYI) lost 5.1% to $40.90, and slot-machine maker International Game Technology (IGT) slid 5.6% to $19.39.

... Seems like a bad time to be getting into the casino business -- see Rivers Casino and its lackluster handle -- but Ohio seems bent on it. And much like Pennsylvania's casinos had to promise jobs to local residents, Ohio's casino backers are making the same pitch:

"Backers of the proposed constitutional amendment to allow casinos in Cleveland, Columbus, Cincinnati and Toledo on Tuesday, Oct. 27, pledged that 90 percent of all jobs in the casinos would go to residents of the four host cities and the surrounding metropolitan areas. That would amount to about 6,750 jobs, according to Bob Tenenbaum, spokesman for the pro-casino Ohio Jobs and Growth Committee."

Ohio gets to vote on the casino issue in just a few days, which means foes will be taking out all the stops:

"A new television ad tries to persuade Ohio voters to defeat a Nov. 3 ballot issue legalizing casinos by saying one of its operators was arrested for illegal bookmaking 28 years ago. TruthPAC, a group financed in part by Mountaineer Casino in West Virginia and horse tracks, discredits Cleveland Cavaliers' owner Dan Gilbert by publicizing a felony charge. Gilbert is the leading partner of casinos proposed at Cincinnati's Broadway Commons and in Cleveland. He was a freshman at Michigan State University at the time; the charge was removed from his record after he paid an unspecified fine and completed 100 hours of community service, according to newspaper accounts. At a Cleveland City Club Forum on Monday, Gilbert downplayed the arrest, saying the case was dropped 'a few months later and no money was ever exchanged.' USA TODAY identified it as a $114,000 ring."

Ooooh ... Michigan State. I wonder how Buckeye Nation feels about that?:

"Former Ohio State quarterback Art Schlichter says a November ballot proposal to build casinos is bad for the state. Schlichter, who played for the Buckeyes between 1978 and 1981 and whose career in the NFL was derailed by a gambling addiction, said Tuesday he wants Ohioans to consider how the state will handle an increase in crime and addictions if the casinos are built. ... Schlichter, who spent 10 years in prison for gambling-related crimes, said it's probably inevitable that Ohio will someday have gambling."

... After three weeks of ticking upward, revenues at Rivers Casino dipped down again last week. See Chris Briem's chart for all the visuals.

... Does it matter that the Flying Zappalas hold posts at a casino association?:

"During the final days of state budget negotiations, a flurry of press releases was sent to media, letters were sent to lawmakers and radio ads were sent over airwaves, all advocating low tax rates and license fees for casino table games. One statement threatened that four large casinos would sue the state if smaller ones were allowed to increase the number of slot machines at their locations. The communications all emanated from The Pennsylvania Casino Association, which has been run for the last two years by former state Supreme Court Chief Justice Stephen A. Zappala Sr. and his daughter Michele Zappala Peck, who is running for Allegheny Common Pleas Court."

Odds and ends

An ATM malfunction sends gamblers at The Meadows home unhappy, and without any bus fare ... And speaking of buses, seniors aboard a bus bound for The Meadows in Washington County had a surprise in store for them ... More smoke signals from the Bay State on a proposed casino ... Ditto from Kansas City ... The Morning Call's ace gambling reporter is subpoenaed in the ongoing Louis DeNaples saga (partly because of stories like this: "Reputed mobster William D'Elia gave prosecutors documents and photos that showed 'conclusive evidence of a long-standing relationship' with Scranton businessman Louis DeNaples, according to federal authorities.")

The Las Vegas Review calls table games in Pennsylvania "the golden goose":

"Pennsylvania's Legislature is considering adding table games to the state's slots-only casinos. This growing, expedient interest in expanding American gaming is a mixed bag for Nevada. If millions more Midwestern and Eastern residents have convenient, increasingly local options to gamble, they're less likely to hop on a plane to Las Vegas. That affects the profitability of airlines and Strip hotels, the income of tens of thousands of tip earners and the state's room, gaming and sales tax collections. However, these states present Nevada-based gaming companies with new opportunities. The chance to expand into new areas with limited competition can help them remain profitable even when their Nevada numbers are falling through the floor."

Blackjack, baby!

A colleague and I were discussing this the other day -- it took literally two decades for any type of casino gambling to be legalized in Pennsylvania. From the early 1980s' discussions about slots, to the mid-1990s' flirtations with riverboat gambling, through the 2000s, when casinos were finally approved -- you might not have agreed with the final decision, but you can't deny that the subject was debated, off and on, fairly thoroughly, for years and years. There's methodical, and then there's plodding.

We all knew that the slots legalization was the camel's nose in the tent -- the rest of the camel, table games, was going to get in eventually. But that it happened (tentatively -- there is no budget yet) so quickly, and with such little debate or dissent or fanfare, is remarkable. In Pennsylvania, where we have a Prohibition relic selling booze and 500 school districts and hundreds of sewer authorities, this is some accomplishment. 

Philly.com has some details:

"Typically, a casino will have 50 to 100 table games. Tables would mean about a 10 percent to 15 percent increase in customers, because table-game players spend more than slot players, according to industry experts. For operators, table games are less profitable than slot machines because they require, on average, six to eight card dealers, croupiers, and other employees to run. In contrast, slots require little overhead. But to the state, that's a selling point for table games: They generate jobs. That helps explain why the tax rates would be different. In Pennsylvania, the tax on slots revenue is 55 percent. On table games, lawmakers are haggling over whether it should be 12 percent or 21 percent. Table operations, too, are important for bringing more traffic and customers to casinos. The table-game crowd tends to be younger and more predominantly male than the slot-machine market."

... Table games will be a Band-Aid for this year's budget problems, but little more than that, says YDR:

"If other states are any indication, the novelty factor will fade. At some point, neighboring states Maryland and Ohio will likely up the ante by passing their own table-game laws. Just like gamblers in eastern Pennsylvania might have traded a night in Atlantic City for Bethlehem last year, some people would stop making the trip here."

... Yes, it might be a short-term novelty, but that doesn't mean Atlantic City is thrilled about it:

While table games are a potential boon for Pennsylvania, the prospect of the state's slot parlors becoming full-fledged casinos is more bad news for Atlantic City in what has been a dismal year for the resort's gambling industry.

Competitors already are smelling blood.

"This makes us full gaming houses," George Toth, chief executive officer of the Mount Airy Casino Resort, said. "We can compete with Atlantic City on equal footing. This is what we've been waiting for."

... Table games will come (if they come) not a moment too soon for Rivers casino, which is already missing revenue expectations:

Less than two months after it opened, the Rivers Casino has become a riskier bet for one prominent New York credit rating agency. Standard & Poor's downgraded the credit rating for casino affiliate Holdings Gaming Borrower one notch yesterday, from B to B-minus, citing concerns about the Rivers' "weak operating performance" and its ability to meet debt service payments if there's no change in fortunes.

At the same time, the agency put Holdings Gaming on its CreditWatch, with negative implications, meaning there's about a 50 percent chance the rating could be dropped again. The moves come as the North Shore casino, which opened with great fanfare Aug. 9, fails to produce revenues anywhere close to its own estimates or even those of the rating agency.

For the week of Sept. 14-20, the casino suffered its worst seven-day stretch since its opening, generating $3.6 million in gross terminal revenue on $45.1 million in wagers, ranking it seventh among the nine slots venues in the state. It continued a slide that began after a big opening week.

So is it the recession, which has bitten casinos from Vegas to Atlantic City? Or is it something worse? It's not just that the casino is below expectations -- it's also performing well below its in-state peers. Maybe Station Square was a better location all along. If the numbers stay this bad, "the casino may not produce enough revenue to meet its debt service obligations once it has exhausted interest reserve accounts set up to provide a cushion." How could the projections have been so far off?

... Chris Briem ponders the meaning of it all:

"People get up in arms over a pay raise for some legislators, yet this all goes without the least bit of consternation. I don't get it. The No Dice folks must be having a conniption. ... Speaking of funny numbers: I heard the casino's community guy George Matta on TV say the casino has 90 full time police officers and that it was more than some local municipalities. Well, looking at the list I compiled last month of local police officers by municipality it turns out that the casino has more police officers than ALL police departments in the county other than the City of Pittsburgh and Allegheny County itself. Go figure."

Dispatches from the border

Rivers casino employs 1,000 people, so in one sense, it clearly is a creator of jobs. But are those net jobs? Or is just pulling a cocktail waitress away from Applebees and into the North Side?:

"An economic study commissioned by Ohio's bar owners says a casino proposal is a zero-sum game that will simply replace established jobs. The Hiram College Public Policy Research Group released a study Tuesday questioning the jobs promised by the casino plan, and proposed tax rates and license fees. The Ohio Jobs and Growth Committee is promoting the ballot proposal to put casinos in Cleveland, Columbus, Cincinnati and Toledo. It has said the plan will create 34,000 jobs. But the Hiram College study says the casinos would largely be frequented by locals and take business from surrounding interests such as bars. The study also says the number of jobs promised per casino is significantly more than the number employed at casinos in surrounding states."

... Ohioans, start your engines.

Odd and ends

Can Atlantic City survive? ... Atlantic City, Redux: the casinos will again take up the smoking ban ... Atlantic City, Redux Redux:15,000 AC casino workers have agreed to a new labor deal, averting a casino shut-down ... Don't expect a gambling bill to be produced by the Bay State this calendar year ... Again with the casino protests in Philadelphia ... This time, Ohioans might actually approve casino gambling, if this poll is any indication ... Don Barden might move (and shutter) his Gary, Ind., gambling "empire"  ... Probably because the tax rate is killing him.

Money money money

For a recsssion, y'all have a lot of disposable income:

"The casino's first eight days of operations produced one big haul, generating $6.5 million in gross terminal revenue on $73.7 million in wagering. Of the $6.5 million, 55 percent, or $3.6 million, went to the state in taxes. About $2.2 million of that will go for property tax relief. The casino kept $2.9 million."

... Rivers bends on its steep game-day parking fee:

"Gamblers no longer will have to wager at least $80 to get free parking in the Rivers Casino garage during Steeler game days. Now customers who gamble any amount of money will receive free parking at the garage during football games. During Thursday's preseason game, players had to wager at least $80 at slot machines in order to get free parking and avoid a $50 fee. The casino also has decided to drop the garage fee on Steeler game days from $50 to $20 for those fans who don't gamble."

... Day One:

Three hours until the ribbon cutting. Mr. Fasulo is meeting with his senior staff, about 20 men and women, in a second-floor conference room. On the agenda: logistics, scheduling, and nagging computer troubles.

"Is it us, or is it Konami?" he asks. At last week's test run, the casino's tech and finance teams discovered that some of the slot machines weren't properly recording the wagers. Thousands of dollars "disappear," meaning the money isn't showing up on slots machine audits.

Dispatches from the border

Like a broken record, this item:

"Atlantic City casino profits took a dive in the second quarter of 2009, as the resort's gaming halls earned 19.8 percent less than the prior year, according to figures released today by the state Casino Control Commission. Gross operating profits totaled $198.4 million for April to June, down from $247.3 million collected in the same three-month period in 2008."

... High stakes in Delaware: "While officials of Delaware's three horse-track-based casinos say they have spent a combined $12 million upgrading their facilities, the cash-strapped state government has racked up tens of thousands on outside lawyers to fight a fierce legal challenge by the major sports leagues and the NCAA."

... In Ohio, they've settled on wording for the casino referendum, to be placed on the ballot this November.The "proposed constitutional amendment that would allow full-scale casinos in Columbus, Cleveland, Cincinnati and Toledo."

The Big Day

Five years, one month and two days after Gov. Ed Rendell signed Act 71 of 2004, otherwise known as the Gaming Act, Pittsburgh's casino, The Rivers, is about to become a reality.

It's been a long road. Act 71 was preceded by a decade of riverboat gambling talk. (Never happened.) Then came the passage of the law. (Took forever.) Then came the three-way race for a casino in Pittsburgh. (Also took forever). Then the "fix was in" for Harrah's and Forrest City. (Said Mayor Murphy.) Then came all those noisome Penguins fans in support of Isle of Capri. (Like Mark Madden). Then Don Barden and the Majestic Star somehow won the casino license. (Whoa!) Then there were a bunch of appeals and lawsuits from The Riverlife Task Force, the Steelers and Pirates, and the losing casino bidders. (Bummer.) Then there was concern Don Barden couldn't build his casino on time, and then there was concern -- well founded, it turned out -- that he couldn't build it at all. (Whoops.) Then Neil Bluhm saved the day. (Yay!)

... Guide to coverage: The P-G's Mark belko will have a story in Sunday's paper, telling us everything we need to know about slot machines. On Monday, expect a story about opening day, as well as a behind-the-scenes profile of the casino's general manager, Ed Fasulo.

... If you go: Expect lots of traffic on day one. Doors open at noon. Free concert at 8:30 p.m. Fireworks to follow.

And be sure to visit post-gazette.com on Sunday and Monday for updates, photos and videos.

... this week was "crushing" for Don Barden. He got to see his casino open -- but it was no longer his:

"As Mr. Barden stood outside the casino's main entrance yesterday, he said the day was "crushing in a sense emotionally." But he added he took pride in seeing the casino completed largely in accordance with his vision. 'I promised first class and that's what people got,' he said."

... the casino's 93-person security force will be watching you if you show up this Sunday.

... The Rivers thinks it can take in $400 million in year one.

... The casino foes from No Dice Pa (who plan to stage a protest / press conference outside the casino on Sunday at 11:30 a.m.) say "we told you so":

"We said the promises of property tax "relief" were unrealistic. Five years later, my tax bill hasn't gone down. Gov. Ed Rendell boasts of reducing tax bills by an average of $200 while seeking to raise the income tax by an average of $250 per household. A shell game, perhaps, but not relief ... Enjoy your favorite Downtown or North Shore eatery or watering hole now. Many of them will close in the next few years, unable to compete with the Rivers Casino's glitz and discounted food and drinks."

Odd and ends

A computer hacker (and a former Mt. Airy Casino employee) tries to break into a casino computer ... The Donald squares off against his bondholders ... Pennsylvania's daily slots revenue exceeded $3 million in July ... It's getting heated in Ohio again ... Same is true in Baltimore, where they want to build a casino ... Same is true in New England.

Ohio approves slots referendum ...

... yet again:

"The idea for building four, full-service casinos in Ohio will be decided by voters in November. The Ohio Secretary of State's Office today said a group backing the constitutional amendment calling for full-service gambling facilities in Cleveland, Columbus, Cincinnati and Toledo have gathered enough signatures to place the issue on the Nov. 3 ballot."

Some of the signatures, naturally, seem to have come from dead people, the Plain Dealer reports:

"There were nearly as many signatures deemed invalid for not being verifiable for whatever reason. In some cases, names of dead people appeared on petitions. ... The amendment would rewrite Ohio's constitution to allow the four casinos to be built and controlled by Cleveland Cavaliers majority owner Dan Gilbert and Penn National Gaming of Pennsylvania."

That seems odd. All the casinos belong to one ownership group?

More:

"The gambling facilities could include slot machines and table games and could have attached restaurants and entertainment venues."

That's different than the "slots-lite" machines that had been proposed for Ohio's racetracks -- these sound like full-fledged casinos, and as such would be more of a threat to Pennsylvania's border casinos in Pittsburgh, Erie, Washington County and (someday, maybe) Lawrence County. But Ohio casinos will be a threat only if they actually open, and the referendum is approved by voters -- but several times in the past two decades, Ohio voters have had a chance to approve casinos, and they've shot it down each time. 

... more from around the state of Pennsylvania:

"Many of the country's largest casino companies have cut pay for their executives and managers," reports the AP. "Harrah's Entertainment cut its managers' pay by 5 percent. Wynn Resorts cut pay 15 percent for managers making $150,000 or more, and 10 percent for the rest. And the Mohegan Tribal Authority cut bosses' pay by up to 10 percent in Connecticut and Pennsylvania. In Atlantic City, the three Trump casinos, the Tropicana Casino and Resort, and Resorts Atlantic City all cut or froze pay for managers."

So the casino executive definitely feel your pain.

... Careful using your ATM card at the casino:

"A 55-year-old woman with a gambling problem tried 23 times to take money from casino-goers' bank accounts, Pennsylvania State Police report. Shoumin Chai of New York City, took $1,110 on three successful tries on June 19 and 20 at Sands Casino Resort Bethlehem ... Chai stood nearby when patrons used an ATM on the casino floor, police said. When the patrons left, police said, Chai was able to enter their personal identification numbers and access their accounts without a bank card."

I'm no ATM security whiz, but it seems like you should need a bank card in order to do that.

... Speaking of the Sands, its in a fierce competition with Mt. Airy casino, just up the road:

"George Toth, Mount Airy Casino Resort's president and chief executive officer, knew Sands Casino Resort Bethlehem's opening would hurt his bottom line. And it has: Sands opened May 22, and Mount Airy's June revenue was down 14.5 percent from June 2008."

In case you missed it ...

... The Meadows just opened its bowling alleys.

Odds and ends

The Meadows Racetrack & Casino will host the finals of 1250 ESPN Radio's "Top Fan 2" at 2 p.m. Thursday, July 23 in Silks Lounge ... MTR Gaming (which ownes Presque Isle in Erie) is refinancing its debt ... Atlantic City's casinos are still taking a beating from Pennsylvania's casinos ... You will be stunned to learn that legislatures across the country are looking to expanded gambling to fill the holes in their 2009 and 2010 budgets ... Mark your (2010) calendars: The New England Gaming Summit will be held September 13 and 14, 2010, at Foxwoods Resort Casino in Ledyard, Conn.

A harbinger?

Surley the executives at the new Sands casino in Bethlehem, Pa., were hoping that the novelty of the casino would have lasted a bit longer than a month-and-a-half:

"After opening to packed houses, the Sands Bethlehem Casino has seen business drop quickly, as the casino has fallen to fourth in revenue among the state’s eight operating casinos. Las Vegas Sands officials say the decline is normal and expected, as the newness wears off. According to figures released by the Pennsylvania State Gaming Control Board, slot income at the Bethlehem gambling venue show a 30 percent decline since opening week. A decline is normal, say gaming analysts, but the drop for Sands is occurring extremely early in the operation’s existence. The casino only opened its doors in May."

These numbers have gotta be making the folks at The Rivers casino a wee bit nervous. Pennsylvania had been the one industry anomally -- casino revenues were crashing in Vegas, Atlantic City and just about everywhere else because of the recession, but we had been somewhat insulated from the effects of the recession because the casinos here are all shiny and new. Maybe that insulation is wearing thin?

... Harbinger: c.1471, herbengar "one sent ahead to arrange lodgings" (for a monarch, an army, etc.), alt. of M.E. herberger "provider of shelter, innkeeper" (c.1175), from O.Fr. herbergeor, from herbergier "provide lodging," from herber "lodging, shelter," from Frank. *heriberga "lodging, inn" (cf. O.S., O.H.G. heriberga "army shelter," from heri "army" + berga "shelter"). 

The "berga" that makes up the second half of the word is similar, but seemingly unrelated, to the sense of shelter that we find at the end of Pittsburgh --  that burgh is a "castle, manor house, fortified place" (related to beorg "hill"), from P.Gmc. *burgs "fortress" (cf. O.N. borg "wall, castle," Ger. Burg "castle," Goth. baurgs "city"), from PIE *bhrgh "high," with derivatives referring to hills, hill forts, fortified elevations.

OK, enough of that book learnin'.

From the pages of the P-G

Two items for the price of one. A story from Mark Belko:

"State Gaming Control Board members may be forced to intervene to resolve a dispute between the Rivers Casino and a local authority over when the North Shore slots venue is to start paying its share of funding for the new arena. The city-Allegheny County Sports & Exhibition Authority wants the casino to begin making the payments -- $7.5 million a year for 30 years -- starting Sept. 15, little more than a month after the gambling venue's grand opening Aug. 9. But that's not what the casino's ownership group was told last year, when it was in discussions to rescue the project from near bankruptcy after Detroit businessman Don Barden failed to secure permanent financing."

... and an editorial, about casino execs and their ability to make campaign contributions:

"Our objection regards the marquee provision -- a ban on contributions by gambling industry officials to political candidates. While casino proponents have given plenty, excessive contributions go to politicians from individuals or political action committees representing a host of special interests -- trial lawyers, labor unions, business groups and advocates for social causes. The Legislature should impose strict caps, as the federal government does, on all political contributions -- not just those from a targeted industry. If lawmakers are subject to influence by big checks from pro-gambling forces, then what about all that dough from polluters, doctors and the insurance industry?"

... bonus story, in case you missed it the first time around -- the company that operates the racetrack side of The Meadows Racetrack & Casino in Washington County (called MEC Pennsylvania Racing Services) has filed for bankruptcy.

Speaking of The Meadows ...

... when it opened a few months ago, a few elements were unfinished, including its bowling alley -- the bowling alley is now scheduled to open next Tuesday, July 14.

Notes from the A.C.

The Donald is getting aggressive in trying to remind Pennsylvania gamblers of all Atlantic City has to offer:

"Some new casino billboards have been popping up in the Lehigh Valley, home turf of the $743 million Sands Casino Resort, Pennsylvania's newest and most expensive slots parlor. But instead of beckoning customers to the Sands, the billboards invite gamblers to the Trump casinos in Atlantic City, about 120 miles away," reports The Press of Atlantic City. "They feature a side-by-side comparison of the amenities the resort-style casinos in Atlantic City have and the more modest slot parlors in Pennsylvania do not. The billboards are part of a marketing effort by casinos to entice Pennsylvania gamblers to Atlantic City this summer, the peak time for tourism."

Odds and ends

The founder and chairman of Isle Of Capri Casinos (which had wanted to build a casino in Uptown / Lower Hill) has died ... Sands may be down from its opening week, but its July 4 revenues were up ... Philadelphia's casino plans are moving along slowly ... Two Connecticut rivals (Foxwoods and Mohegan Sun) are teaming up to take on Atlantic City ...An Ohio study suggests that the legalization of gambling in Ohio could add 34,000 jobs to the economy ... Moscow has imposed a gambling ban in parts of Russia.

Last item:

"The woman in charge of promotions at the casino at Yonkers Raceway was indicted Tuesday on charges she arranged for friends and relatives to win contests. Donna Cronin, 44, and two co-defendants at Empire City Casino helped their acquaintances win money, flat-screen televisions, laptop computers and Broadway tickets, Westchester District Attorney Janet DiFiore said. Sometimes they demanded kickbacks, she said."

That just so happens to be the New York casino owned by the Rooney family.

A small delay

If you asked for a vacation day on Aug. 5 so you could be the first in line at the new casino, you may want to reschedule:

"The Rivers Casino is seeking to delay its opening by four days because of water damage to slot machines caused by last week's storms. In a statement this morning, casino officials said they had asked the state Gaming Control Board to push back the opening from Aug. 5 to Aug. 9. They said the request was a result of minor water damage to a small number of slot machines during the bad weather as well as damage to some slot machines during their transport to the North Shore venue."

... also from the pages of the P-G:

"As a Senate panel moved to resurrect a law banning casino officials from donating politically to legislators and other elected officials, a citizens watchdog group said such high-powered gaming interests gave $4.4 million to state politicians from 2001-08. Lawyers and lobbyists for the 14 casinos authorized by a 2004 state law contributed an additional $12.3 million, according to a report by Common Cause/Pennsylvania released yesterday."

And:

"Pennsylvania could get an additional $165 million in annual gaming revenue if table games were in operation at all 12 of the state's larger casinos, an analyst hired by three casinos said today. The revenue would consist of $104 million generated by the table games themselves -- poker, blackjack, roulette and dice -- plus another $61 million in additional revenue from slots."

Around the state

Those slot machines at The Rivers were saturated because of the storm. Have Pennsylvania's casino revenues likewise reached their saturation point?

"State slots revenue continues to grow, but are the latest figures showing saturation? Or just the realities of heavier discounting in a weaker economy - a way to compete for scarcer discretionary spending? Overall gaming revenues were up 19 percent last week compared to a year ago, but only 5 percent when factoring out the newly opened, 3,000-machine Sands Bethlehem. And revenues per machine declined substantially over last year's figures. Wagers, which grew faster than revenues, jumped by 26 percent to $506 billion last week."

... "A Senate committee gave unanimous approval [Tuesday] to a major overhaul of Pennsylvania's 5-year-old slots casino law, and the full Senate might act as early as next week. The bill would reimpose a ban on casino officials contributing to the political campaigns of legislators and other state officials, a ban that was contained in the 2004 slots law but was recently struck down by the state Supreme Court."

... The new Sands casino is performing well.

... $41 million wagered at Presque Isle last week.

Dispatches from the border

Ohio's governor has a full-blown case of slots fever:

"Gov. Ted Strickland's plan to balance the budget with gambling money includes legalizing up to 15,250 slot machines at Ohio's seven horse racetracks, with most of the games plugged in by next May. The governor's office estimates the machines will rake in nearly $1 billion in 14 months -- from May 2010 to the end of the 2011 fiscal year. The plan would allow the state to collect 48 percent of that revenue for education spending while the other 52 percent would be split among the seven track owners and pay administrative and operational expenses, including payouts to lucky winners."

So close you can taste it

We're just two months away from the opening of the Rivers Casino on the North Shore. Today, the casino released a list of charites that will benefit from the pre-grand opening test run (the test nights are scheduled for Saturday Aug. 1, 2009 and Monday August 3, 2009).

The beneficiaries will be the Allegheny County World War II Memorial, the Urban League of Greater Pittsburgh, The Greater Pittsburgh Food Bank, and Allegheny General Hospital.

Moving on ...

... If you haven't been to The Rivers' Web site lately, they've been busy updating it with the names of all the bars and restaurants, plus promotional information.

... Pennsylvania slots revenues are up almost a fifth, year over year: "Slot machines in Pennsylvania generated $178.4 million in gross revenue last month, an 18 percent gain compared to May 2008, regulators said Tuesday. Numbers were helped by the new Sands Casino Resort Bethlehem, which generated $10 million in revenue in May. Comparing the seven casinos that existed a year ago, revenue was up 10.8 percent."

... Follow the money:

"It doesn't happen exactly as it does in 'Ocean's Eleven,' but every dollar of the more than $1 million netted by the Sands each day is tracked. From the time a bill leaves a person's wallet until it is loaded into an armored car, it goes through a gantlet of check points that includes surveillance by employees watching 42 high-definition monitors above the casino floor, and counting in massive machines in a bunker-like room beneath the Sands. It's all part of an almost obsessive effort by casino operators and state regulators charged with seeing that Pennsylvania gets every penny of its 55 percent cut."

Dispatches from the border

"Backers of a proposed four-casino ballot measure already have spent thousands of dollars to gather signatures to get on the November ballot. But could they be having second thoughts? Penn National Gaming Inc., the Pennsylvania gambling conglomerate that's supplying much of the money and strategic mettle for the proposed Ohio ballot measure, might yet back out in order to shoot for the 2010 ballot, analysts concluded after meeting with the company's senior management." (Via the Columbus Dispatch.)

... Allowing table games in Delaware would mean more jobs.

Until next time ...