Monthly Archives: August 2020

New York casino workers set to take over the state capitol

As did other states across the U.S., New York ordered casinos to shut down in the middle of March in order to try and prevent the coronavirus from spreading. While other states have rescinded their lockdowns, the Empire State has kept its four commercial casinos closed (tribal gaming facilities set their own rules), and employees of those venues are becoming increasingly frustrated. They have announced their intention to voice their opinions loud and clear this week and are planning on making a run on the state Capitol to ensure the message is heard. 

This Thursday at 11 AM Eastern Time, casino workers plan on holding a rally outside the Capitol in Albany. The turnout could be significant, given the fact that the four casinos employ about 5,200 people. In addition to those venues, there are another eight properties that offer video gambling, which also provide jobs for around the same number. Over 10,000 people suddenly crashing the Capitol is certainly going to draw some attention. 

Casino.org received an email from Freeman Kloppott, a spokesperson for the New York State Division of the Budget, who tried to explain why the casinos remain closed. He asserted, “Casinos remain closed, along with similar activities across the state, as they invite social gatherings with customers in proximity to each other while eating and drinking, activities that don’t allow for consistent mask-wearing.”

However, that argument doesn’t hold up to scrutiny, as other states have been able to figure out how to allow their gambling facilities to return to business while adhering to strict health and safety protocols. Granted, the protocols haven’t always been effective, but, for the most part, they’re serving their purpose. 

Macau gaming scholar wants to dump 20-year casino licenses

If it were up to Wang Changbin, the licenses provided to casino operators in Macau would not be valid for 20 years. Wang, a reputable gaming scholar and the director of the Centre for Gaming and Tourism Studies at the Macao Polytechnic Institute, gave remarks recently on the subject of Macau’s concession renewal process, explaining that the licenses should only be valid for a maximum of ten years, with other restrictions put in place, as well. Should Macau decide to go that route, it’s doubtful that any operator would give up on the gambling city, but there would certainly be considerable backlash. 

Some casino concessions were set to expire this year, with others ending in 2022. The Macau government approved a measure to offer those expiring this year to be given two-year extensions, which allowed all casino operators to see their concessions end simultaneously. The city still hasn’t come forward publicly with details on how it will structure the renewal process in 2022, and Wang’s comments might possibly play a role in any new policies created. 

Casino concessions won’t technically be eligible for renewal in 2022, at least not in the strictest definition of the word. Casino operators are limited to how many renewals are allowed, and the upcoming license-issuing process would, in theory, be based on a complete review of an operator’s activity as if they were entering Macau for the first time, and a new public tender. However, in practice, the odds of an existing operator losing its license are about as long as those for the Cleveland Browns to win the next Super Bowl. 

Still, this doesn’t mean that Macau won’t change how the concessions are issued, essentially tying the casino operators’ hands. If Wang’s input, described in his article, “The Casino Gaming Concession System In Macao: Past, Present And Future,” is included in policy changes, licenses would only be good for ten years, and would be subject to review and renewal after just five. This, he asserts, would allow the government to be able to react better to changing conditions in the market or in operations. 

Tennessee could launch sports gambling, just after most action ends

It can’t be an easy task to implement major legislation such as legalized sports gambling, but some states have figured out how to take care of business within a matter of just a few months, allowing them to get up and running quickly. Tennessee can’t be included in that group, as it is still waiting to launch legalized sports gambling. The Volunteer State approved the activity in July of last year, and then thought it would be able to see the launch of regulated sportsbooks by February. However, it would be April before regulations were approved by the Tennessee Education Lottery’s (TEL) Sports Wagering Advisory Council, and the process has been moving slower than molasses ever since. It looks like the state is finally ready to get going and has a projected start date for legalized sports gambling; however, it comes right after most major sports leagues in the US will have wrapped up their seasons.

According to Rebecca Hargrove, the president and CEO of the TEL, legalized sportsbooks will start appearing on the digital landscape as of November 1. The state will be the first to offer a completely virtual sports gambling experience, since no brick-and-mortar casinos exist in Tennessee. If that timetable remains intact, by the time the first wagers are able to be placed, the NBA, the NHL and MLB will have completed their runs and found their season champions. What would remain are the NFL, which is a huge target, and MLS, which is expected to complete its season in December.

There are reportedly four sportsbooks already with their hand on the switch to go hot as soon as they’re allowed to start taking bets. They haven’t been identified yet, but it’s likely the state will see the normal players – DraftKings, FanDuel, BetMGM and, possibly, FOX Bet. Others have indicated they have an interest in the market, but everyone first has to get over the $750,000 license fee and outrageous hold caps (10%) the state has put in place. With COVID-19 causing cash shortages, some operators may have to bring in partners to foot the bill. 

Also troublesome for entry are the tax rate of 20% and the requirement that sportsbooks use official league data in creating their lines. This implies an additional expense, and surfaced as a way for leagues to make money after states began to scoff at the idea of paying them an “integrity fee.”

Jade Entertainment’s Joe Pisano on COVID recovery

Jade Entertainment and Gaming CEO Joe Pisano remains confident that the casino industry in Asia is headed for a strong post COVID-19 recovery heading into 2021. Pisano took some time out to talk with our very own Becky Liggero Fontana on what he sees next for brick and mortar gaming in the east.

The Jade Entertainment boss pointed out that we are already seeing signs of recovery in the industry amongst land-based casinos. “Vietnam has already opened up, with Cambodia and the Philippines are also looking to open up as well,” he said.

The problem won’t be getting people to the properties, it will be regulating how many people are allowed through the front door, under new social distancing guidelines for land-based casinos. “Until there’s a vaccine, temperature checks and cleaning of machines will be the new norm,” Pisano added.

[youtube https://www.youtube.com/watch?v=qbPx-ziZ1lE?start=1&feature=oembed]

Crown Resorts ekes out small profit in ‘extremely challenging year’

Australian casino operator Crown Resorts managed to eke out a small profit in its most recent fiscal year despite the COVID carnage in the year’s final quarter.

Figures released Wednesday show Crown generated revenue of AU$2.21b (US$1.6b) in the 12 months ending June 30, a 25.7% reduction from fiscal 2019. Earnings fell 40.6% to AU$504.6m and net profit after tax tumbled 80.2% to AU$79.5m.

Aussie operators love to report ‘theoretical’ figures that assume a constant win rate in their volatile VIP gambling operations, while this year’s pretend numbers also eliminate costs associated with the impacts of COVID-19, which forced Crown to shut all its casinos in late-March (and Crown Melbourne remains shut to this day).

Anyway, the make-believe revenue would have been slightly lower (AU$2.1b), while fantasy earnings would have fallen only one-third to AU$504m and pretend profits would have plunged a mere 56.3% to AU$161m. Oh, and so long as we’re making stuff up, I’d be happily married to Jane Fonda circa 1965 or thereabouts.

Suncity warns of H1 losses but Alvin Chau digs deep to ensure casino expansion

An affiliated company of Asia’s leading casino junket operator Suncity Group says it’s still losing millions, but its controlling shareholder is stepping up with billions of bailout cash.  

On Tuesday, Suncity Group Holdings informed the Hong Kong Stock Exchange that it expects to book a net loss of around RMB108m (US$15.6m) when it delivers its financial report card for the six months ending June 30. However, the company was keen to stress that this was a far more preferable situation than the RMB1.25b it lost in the first half of 2019. So cheer up.

Suncity Group Holdings is the publicly traded sister of the Suncity Group junket, both of which are controlled by Alvin Chau. The public company began life as a ‘travel and hospitality’ business that primarily served to funnel high-rolling gamblers to VIP gaming rooms run by the junket arm in casinos across the Asia-Pacific region.

Suncity Group Holdings said it recorded “a substantial decrease in revenue from travel-related products and services” in H1 as casinos across Asia either shut down completely or saw their traffic slow to a trickle. The latter group includes Macau, which until recently was largely off-limits for most mainland Chinese residents.

Paid not to play: The footballers who would cost a ransom no-one can afford

The landscape of football transfers has changed, so they tell us. A summer that was predicted to be full of nine-figure fees at the start of the year now looks completely different viewed through the haze of Coronavirus headlines and COVID-19 measures.

Football may have changed, with fewer fans now involved, but the cost of failure has, if anything gone up. Because of this, players with huge contracts and mammoth weekly wages are not the attractive prospects they once were. We’re taking a look at three men who could find a move hard to come by unless they’re prepared to take a massive pay cut.

Gareth Bale

It’s hard to argue against the footballing merits of Gareth Bale. Having helped drag Tottenham Hotspur into the Champions League Places and paved the way for their development over the last few years, Bale also earned his former employers in North London a ludicrous sum of £89.2m when he switched the Lilywhite shirt of Spurs for the… er, similarly white shirt of Los Blancos.

Australians spending retirement cash on gambling during COVID lockdown

Australia’s national telecom watchdog has banned more international online casino domains, while non-essential gambling outlay has convinced the state of Queensland to ban Aussie-licensed online sportsbooks from ‘inducing’ residents to gamble.

On Tuesday, the Australian Communications and Media Authority (ACMA) publicly shamed nine internationally licensed online gambling sites – Planet 7 Oz; Ace Pokies; Nordicasino; Reeltastic; Spintropolis; Enzo Casino; Times Square Casino and Royal Spinz – that Aussie internet service providers will now be asked to block.

The sites all operate under Curacao-issued licenses, which seems to be the primary focus of the ACMA’s ever-expanding blacklist (the nine additions bring the total number of sketchy sites to 92). The ACMA also seems overwhelmingly focused on sites offering online casino games, which aren’t allowed under Australia’s amended Interactive Gambling Act 2001.  

The ACMA said it had received “numerous complaints” about these sites, including “withholding winnings and poor player treatment.” The ACMA urged Aussie punters with money on these sites to withdraw it now.

Self-dubbed ‘lottery lawyer’ indicted for defrauding US jackpot winners

A self-proclaimed ‘Lottery Lawyer’ has been indicted for defrauding US lottery winners out of $107m with the help of a some alleged mob associates.

On Tuesday, the US Attorney’s Office for the Eastern District of New York announced the indictment of Jason ‘Jay’ Kurland, Christopher Chierchio, Francis Smookler and Frangesco Russo on charges of wire fraud, money laundering and conspiracy.

Kurland’s New York law firm represented lottery winners with total winnings of around $3b, advising them on how to safely invest their windfalls. In reality, Kurland steered his clients’ cash into entities and deals controlled and directed by his co-accused, for which he received kickbacks that weren’t disclosed to his lottery clients.

Kurland (pictured) would occasionally funnel a portion of his clients’ funds back to them as ‘interest payments’ on their investments although the bulk of the ‘invested’ funds were ultimately lost. Much of it went to fund the defendants’ lavish lifestyles, including private jets, luxury vehicles, two yachts and pricey vacations.

Winamax sports betting tweet earns rebuke from French gambling regulator

French online gambling operator Winamax has been put on notice by local regulators over an ill-advised tweet that critics found homophobic.

This past Saturday saw French footballers Olympique de Lyon vanquish Manchester City in a UEFA Champions League quarter-final. With French club Paris St-Germain facing off against RB Leipzig in a semi-final match on Tuesday, the prospect of an all-French final loomed large.

The official Twitter feed of Winamax’s sports betting division tweeted out an altered image of French hip hop group PNL, superimposing the two French clubs’ logos over the faces of the two brothers who make up PNL. The accompanying text featured a riff on the lyrics to PNL’s song Celsius that were altered to read ‘we take Europe, we f**k two.’

The tweet contained language that is viewed by some in France as a homosexual slur, which prompted no shortage of social media pushback. Among those slamming the company’s ill-chosen words were France’s Minister of Sports Roxana Maracineanu, who compared the WinamaxSport tweet to ‘vomit.’