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The Sun Also Rises
June 20, 2008
Friday, June 20, 2008

First things first -- another casino is set to open in the east. Rather, a larger version of the original, temporary casino:

"A $208 million expansion at a Pennsylvania combination racetrack and casino owned by the Mohegan Tribal Gaming Authority will open July 17. Project Sunrise at Mohegan Sun at Pocono Downs was begun in May 2007 to double the number of slot machines and add food and entertainment venues to the harness racing track and slot machine parlor near Wilkes-Barre. The track, bought in 2005 by the authority, opened as Pennsylvania's first casino in November 2006."

Closer to home

The Don Barden saga continues -- does he or does he not have the financing to build the North Shore casino? -- but at least he has the support of Allegheny County's House Democrats, for whatever that's worth:

"All 19 Democratic state House members from Allegheny County have rallied behind Don Barden is his bid to complete $780 million in financing for his North Shore casino. In a letter this week, the legislative delegation urged the Pennsylvania Gaming Control Board to stick with Mr. Barden despite the difficulty he has had completing the financing for the project. 'The city of Pittsburgh and Allegheny County are anticipating significant additional revenue from the casino's operations, and Pennsylvania taxpayers are anticipating additional property tax relief. The most expeditious way to achieve these goals is to allow PITG to continue to proceed with its financing and construction of the casino," the letter stated.

... So far, the neighbors of The Meadows casino in Washington County have nothing but good things to say about the new slots parlor.

Dispatches from the AC

High crimes and espionage in Atlantic City:

"Three former employees at the Tropicana Hotel and Casino in Atlantic City, N.J., have been indicted in New Jersey for allegedly stealing a list of more than 20,000 of the casino's top players. Attorney General Anne Milgram said the list's value was estimated at $108 million -- an average of more than $5,000 per player. The defendants worked at the Tropicana in May 2005 when they discussed leaving for other casinos. According to a statement issued by Milgram, two of the men downloaded the list as 'future leverage that would enable them to bring potential patrons with them when they sought employment at other casinos,'" says the Kansas City Star.

... Big weekend for Big Labor: "The boardwalk in Atlantic City, N.J., will be packed this weekend as thousands of union members and community supporters from across the country converge for a major demonstration June 21 to demand that casino owners stop stalling and negotiate with the workers' union."

... More (anecdotal) evidence that the economic slump is damaging the previously "recession-proof" gaming industry:

"Walter Huzior and his wife, Edith, usually visit Atlantic City's casinos four times per year, but this summer they probably will cut back on the gambling trips from their Long Island, N.Y., home. Soaring prices at the pump forced them to pay a whopping $4.59 per gallon for the premium fuel that powers their Mercury Grand Marquis and its gas-guzzling V-8 engine ... 'Higher gas prices leave less money for gambling,' he said."

... And yet more:

"No surprise, but gasoline prices of more than $4 a gallon don't bode well for regional casino markets. Deutsche Bank gaming analyst Andrew Zarnett said Atlantic City would suffer as gamblers stay close to home. 'Consumers will choose the convenience of Pennsylvania casinos over Atlantic City amenities.'"

... And a bonus item for you Soviet history buffs out there:

"Since the day a statue of Vladimir Ilich Lenin went up outside the trendy Red Square restaurant at the Tropicana Casino and Resort in 2005, Al Garrett has wanted it torn down. He claimed having a 15-foot (4.5-meter) tall statue of one of history's most brutal dictators is an insult to thousands of soldiers who died fighting communism. He went on talk radio shows claiming the statue is anti-American."

Wild, Wonderful

From Forbes.com:

"West Virginia now ranks second only to Nevada in the share of its state budget that comes from gambling revenues. That's the finding of a new report that also ranks the Mountain State ahead of Nevada and all other states in terms of how much that share of the budget grew between 1998 and 2006. West Virginia has a traditional lottery as well as nearly 20,000 video lottery machines, many of them hosted at four racetracks. Thursday's report from the Rockefeller Institute of Government said gambling revenues equaled nearly 9 percent of the state's 2006 general revenue budget."

... West Virginia recently legalized table games at some of its casinos, but nationally, the poker craze seems to be over, according to the American Gaming Association's 2008 report. When the poker boom began in 2003, 12 percent of Americans had played poker at least once in the previous year. By 2004, that number grew to 18 percent and stayed there for a few years. In 2007, American participation was back down to 13 percent.

Odds and ends

The indicted former chief of the Mt. Airy casino in the Poconos. Louis DeNaples, is demanding "that 15 reporters turn over not only their handwritten notes but also their personal cell phones and home phone bills. Morning Call reporters Matt Birkbeck and Christina Gostomski received subpoenas issued by attorneys for DeNaples and the Rev. Joseph F. Sica, a priest who advised DeNaples," as did a variety of AP and Philadelphia-area reporters. Mr. DeNaples is trying to discover the identity of a grand jury leak ... More smoke signals about an Ohio casino ... Greektown Casino in Detroit is forecasting a $16 million loss in 2008 ... Nevada is working on "mobile gaming," which would allow you to gamble from a Blackberry-style device, meaning you could stay in the bingo game even as you're heading back for your third plate of crab legs.

In case there was any confusion, 5-year-olds are not allowed to play slot machines:

"Philadelphia Park Casino 'breached its obligation' to the state when it allowed three children onto the gambling floor and at least one of them played a slots machine, the chairman of the state gaming control board said Wednesday. The state agency fined the Bensalem casino $18,000 during a hearing in Harrisburg ... A 5-year-old apparently took turns playing a slot machine with his grandfather in the nonsmoking section. The kid cashed out with $47.25, but the casino confiscated the winnings."

First published on June 20, 2008 at 9:32 am
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