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A new amendment request slows down Petersburg’s casino momentum, but the city’s gambling-related plans are still on track

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Petersburg Governor Glenn Youngkin has sent Senate Bill 628 back to the General Assembly with a recommendation to amend the legislation, indicating that a do-over vote is unnecessary for setting up Petersburg as the fifth casino-host city in Virginia. While this move has raised some concerns, it should not affect the bill’s expected success.

The Legislation Remains on Track

The bill, one of 11 amended by the Governor’s office on Friday, had a hastily added re-enactment clause attached to it, requiring it to be reconsidered by the General Assembly even after the House of Delegates and Senate had approved it in the 2024 regular session. Governor Youngkin was surprised by this sudden update, motivating his decision to mandate a do-over.

By amending the bill instead of vetoing it, Youngkin aims to ensure that it proceeds smoothly through the legislative process and gets in front of Petersburg’s voters this November. Unlike a veto, requiring a two-thirds majority in both chambers to override, an amendment only needs a simple majority, significantly improving Bill 628’s chances.

The Governor’s request for the General Assembly to review the re-enactment clause raised uncertainties about the bill’s fate as the bill’s second vote must happen during a regular or a special session. Lawmakers reconvene later this month, but the casino re-vote cannot occur then. However, a special session later this year could provide another opportunity for the vote.

Petersburg’s Casino Dream May Soon Become Reality

The establishment of Petersburg as the fifth casino-host city aims to bolster the economies of historically disadvantaged communities in Virginia. Although Bristol, Danville, Norfolk, Portsmouth, and Richmond were the state’s original choices, only Richmond did not pass referendums. With Richmond stepping back, Petersburg now has the opportunity to secure the final casino license.

Sen. Lashrecse Aird, one of the bill’s primary sponsors, remained optimistic regarding its chances. She highlighted the importance of allowing Petersburg to obtain the fifth casino license and for citizens to vote in a referendum. Aird was looking forward to hearing the proposals of interested operators, hoping they would bring lasting prosperity to the region.

With the removal of the re-enactment clause, this legislation moves one step closer to final approval to allow Petersburg to obtain the fifth and final license.

Sen. Lashrecse Aird

The move to amend the legislation comes after Governor Youngkin signed bills earlier in the week preventing Richmond from revisiting casino referendums until Petersburg has its chance. An upcoming town hall meeting hosted by Senator Aird will allow citizens to meet the five vendors who have submitted bids for Petersburg’s casino business, indicating the significant progress in the casino licensing process.

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This result postpones any potential talks regarding the legalization of online casinos to subsequent years

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Amidst budget negotiations in Maryland, hopes for the legalization of online casinos have been dashed for the year 2024. With online casino revenue not finding its way into the state’s budget agreement, it appears that Marylanders will have to wait until at least 2027 to see any progress in this regard.

Maryland’s Legislative Session Ends Without Inclusion of Online Casino Revenue

The state’s legislative session saw no inclusion of online casino revenue as a funding source in the budget deal reached on April 3. This outcome pushes any potential discussion on online casino legalization to the following years.

Although there were initial hopes for a referendum to reach Maryland voters by 2026, the recent developments suggest that such discussions may not gain traction until later.

Sen. Ron Watson expressed that given the failure to pass legislation this year, the earliest possibility for mobile casino apps to go live in Maryland would be in 2027.

Despite Maryland already permitting legal sports betting and hosting brick-and-mortar casinos, the road to online casino legislation seems fraught with obstacles. Stakeholders in the online casino industry will need to address concerns regarding problem gambling and potential competition with existing physical casinos to garner support in future sessions.

Online Casino Legislation in Maryland Faces Resistance

The exclusion of online casinos from the state budget is particularly significant considering the initial momentum behind the proposed legislation. The House had passed a bill supporting online casinos, including it in its budget proposal, but Senate leadership was firm in their stance against such measures.

Proponents argued that regulated iGaming could address illegal gambling, but debates persisted over potential job losses and addiction risks, with the bill undergoing significant changes to address various concerns.

Several challenges contributed to the demise of the online casino legislation. Notably, not all casinos supported the initiative, with Maryland Live! and Ocean Downs Casino expressing concerns about potential job losses and cannibalization of their businesses. Arundel County, the county where Maryland Live! Is located, also championed a study that corroborated the concerns regarding cannibalization.

Additionally, labor unions were strongly opposed to the legalization efforts.

At the same time, a recent study commissioned by the Sports Betting Alliance (SBA) challenged the conventional belief that online casinos cannibalize traditional brick-and-mortar establishments, revealing instead a symbiotic relationship between the two.

Conducted by the Analysis Group, the study examined six states and found a significant increase in overall gaming revenue, suggesting that online gaming complements rather than competes with physical casinos.

However, despite these setbacks, there remains a glimmer of hope for proponents of online casinos. The fact that the Maryland House managed to pass the legislation demonstrates some level of support, suggesting that future sessions may see renewed efforts toward legalization.

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Tropicana originally opened on April 4, 1957, and closed on April 2, 2024, just two days before its anniversary

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As the demolition of the Tropicana casino hotel in Las Vegas draws near, Bally’s Corporation is trying to secure the necessary permits for imploding the property. Because of the procedure’s intricacies, the casino operator would need to secure dust control and asbestos abatement permits, among other permits. Traffic would also need to be taken into mind.

According to the latest reports, the Tropicana will be imploded by Controlled Demolition, the same company that previously imploded the Riviera and the Landmark.

According to Tropicana’s chairman, Soo Kim, the matter is still subject to permitting but Bally’s intends to bring the casino down by the end of the year. This would mark an end to a legendary property that has remained in business for over half a century.

Tropicana originally opened on April 4, 1957, and closed on April 2, 2024, just two days before its anniversary.

Bally’s, which acquired the Tropicana site three years ago, is planning to instead develop a $1.5 billion baseball stadium for the Oakland Athletics and an adjacent hotel.

Some Are Concerned about Bally’s Financial Position

The decision to close Tropicana came after a long period of suboptimal business activity.  Despite its iconic status, the last years saw the property lose much of its luster amid a lack of investment.

Yet, some locals fear that the demolition of Tropicana might be a risky gambit, especially considering Bally’s Corporation’s recent financial hurdles. For reference, the casino company is still struggling to find financing for its downtown Chicago project.

To make matters worse, the company’s credit rating was recently lowered by several credit ratings firms, including Fitch and Moody’s.

Despite that, the company recently told The Progress-Index that it remains bullish on participating in the bidding process for a casino in Petersburg, saying that the lowered rating is unlikely to affect its bid.  

In other news, K&F Growth Capital, an asset management firm and minority shareholder in Bally’s, recently expressed its concerns about Standard General’s recent proposal to acquire all outstanding shares in the casino company.

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The expansion plans to draw more customers to Singapore, attracting tourists with a unique luxurious offering and cementing the country’s status as a regional hospitality leader

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Marina Bay Sands (MBS), Singapore’s renowned casino and hotel resort, is embarking on a significant expansion of its downtown property, with plans to construct a fourth tower by 2029. After being hindered by the COVID-19 pandemic, MBS announced on Friday that full-scale construction will commence by July 2025, aiming for completion by July 2029.

The Venue Remains Integral to Singapore’s Tourism

The ambitious expansion project first revealed in 2019 with a budget of 4.5 billion Singapore dollars ($3.33 billion), faced substantial delays due to pandemic-induced shutdowns. However, with ongoing support from the Singapore government, MBS is moving forward with its visionary plans to enhance the city-state’s leisure and business tourism appeal.

Patrick Dumont, president and chief operating officer of MBS’s parent company, Las Vegas Sands, emphasized the significance of the expansion in driving high-value tourism growth to Singapore. He highlighted that the project would optimize the venue’s programming elements while aligning with Singapore’s strategic objectives. The expansion aims to play a pivotal role in attracting more travelers to Singapore.

With the ongoing support of the Singapore government, this development will further enhance the leisure and business tourism appeal of Singapore.

Patrick Dumont, Las Vegas Sands president and chief operating officer

Since its inception at a development cost of $5.6 billion, MBS has welcomed over 470 million visitors, significantly contributing to Singapore’s business tourism appeal by hosting over 1,750 MICE events. The venue aims to remain at the cutting edge, regularly introducing new improvements and keeping its offerings fresh and exciting.

Existing Amenities Will Also Receive Improvements

The planned expansion features a luxury hotel tower with an impressive sky roof and a 15,000-seat entertainment arena. Additionally, it will create space for meetings, incentives, conferences, and exhibitions (MICE) while introducing new dining, beverage, and nightlife options. Separate from the hotel expansion, MBS is investing $1.75 billion in its existing property, enhancing existing amenities.

The expansion aims to play a pivotal role in attracting more travelers to Singapore. The new entertainment arena should draw top entertainers who previously may have overlooked Southeast Asia in their tours. Additional MICE space will facilitate hosting more events in the city-state, capitalizing on Macau’s increasing focus on mainland China.

With international visitor arrivals reaching 71% of pre-pandemic levels in 2023 and tourism profits reaching up to $19.2 billion, Singapore’s hospitality sector is well on its path to a full recovery. The Singapore Tourism Board anticipates further improvement this year, driven by the gradual restoration of global air travel capacity and the increasing interest in South Asia as a leisure destination.

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The expansion of Kangwon Land is, according to the government, a precautionary measure that seeks to solidify the property’s appeal to local consumers

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South Korea’s government has unveiled a massive expansion of its Kangwon Land casino resort. The state-owned property will be remodeled to triple the area of its casino floor, allowing it to welcome more guests.

The Kangwon Land gaming area, which covers 167,000 square feet currently, will be expanded to cover approximately 533,000 square feet. In addition to that, the $1.85 billion expansion will see a new hotel and a new convention space constructed, allowing Kangwon Land to accommodate more visitors and host international gatherings.

The expansion will also include the creation of a new wellness center in the nearby forest, as well as the launch of new local attractions.

The expansion comes as more Asian countries rise to challenge South Korea’s casino industry. Kangwon Land and the country’s foreigner-only casinos enjoyed a period of calm during the temporary decline of Macau gaming and the crackdown on the special administrative region’s junket operators. However, Japan’s upcoming resort and Thailand’s desire to launch casino gaming are likely to cause fiercer competition.

South Korea Is Wary of Japan’s Upcoming Integrated Resort

Situated in its namesake Kangwon Province, Kangwon Land is the only casino in South Korea that accepts local players. The property boasts some 1,000 slots and 100 gaming tables, allowing hundreds of players to enjoy gambling at the same time. In addition, Kangwon Land has some 700 hotel rooms for guests. Despite that, finding a seat has been increasingly difficult the last few years.

While Kangwon Land, originally founded in 1998, is the only casino in South Korea that locals can visit, the launch of MGM Resorts’ resort in Osaka will likely upset the power balance. Considering Japan’s proximity to Korea, local customers might be tempted to visit the Osaka casino instead.

The expansion of Kangwon Land is, according to the government, a precautionary measure that seeks to ensure the property’s appeal to local consumers. Since MGM’s resort in Japan will not open earlier than 2029, the South Korean operator has ample time to reinforce its offering.

Still, the renovations envisioned by the government are also likely to take several years. Because of that, until the construction of the extra facilities starts, the government will open a temporary expanded casino.

The $1.85 billion investment is notably the largest investment in the property since its opening.

In addition to casinos in other Asian countries, Kangwon Land will also have to compete with the Mohegan Inspire Entertainment Resort which recently onboarded new solutions that will allow it to understand guests at an individual level.

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This latest development marks the newest chapter in an ongoing battle to secure safer working conditions for casino staff

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After years of unsuccessful attempts to persuade lawmakers to ban smoking in Atlantic City casinos, workers have taken a new approach: filing a lawsuit to challenge a law that exempts casinos from indoor smoking bans. The lawsuit argues that the exemption for casinos violates the principle of equal protection under the law and seeks to have it acknowledged as unconstitutional.

The Legal Action Escalates an Ongoing Issue

The United Auto Workers (UAW), representing workers at Bally’s, Caesars, and Tropicana casinos, joined by a group of casino workers opposed to smoking in gambling halls, filed a lawsuit in state Superior Court challenging New Jersey’s indoor clean air law. This law, enacted 18 years ago, prohibits smoking in most indoor workplaces but makes an exception for casinos.

At a rally outside the courthouse where the lawsuit was filed, UAW president Shawn Fain noted that such drastic action was only necessary because of the industry’s unwillingness to address the concerns of Atlantic City casino workers regarding their work safety as they must regularly contend with the proven dangers of second-hand smoking.

This legislation was supposed to protect everyone from the dangers of second-hand smoke. But somehow, our casino workers have been asked to roll the dice.

Shawn Fain, UAW president

The issue of smoking in casinos has sparked controversy not only in Atlantic City but also in other states where workers have raised concerns about second-hand smoke. Similar campaigns are underway in Rhode Island, Pennsylvania, Kansas, and Virginia. Proponents of the ban argue that banning smoking would not affect revenues but would tremendously improve casino staff’s quality of life.

Casinos Remain Opposed to a Smoking Ban

Recent revenue reports showing a decline in in-person visits to Atlantic City casinos have raised further alarm among workers and union leaders. They argue that a smoking ban is necessary to protect the health of workers and patrons alike and would constitute a vital step towards resolving the challenges facing the resort city.

State Senator John Burzichelli introduced a bill earlier this year that would address some of the concerns of workers and the casino industry. However, the proposed legislation heavily favored casinos, causing workers pushing for a complete ban to reject this proposal, insisting on improved measures to protect their health and safety.

The Casino Association of New Jersey opposes a smoking ban, citing concerns about its impact on competitiveness with neighboring states. However, workers are determined to push for change through legal action. The plight for safer working conditions has resonated across New Jersey, winning public support. While the lawsuit’s chances remain unclear, the UAW will explore every option to protect the casino worker community.

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The regulator also said that casino hotels in the state reported a Q4 occupancy rate of 66.5% and a FY occupancy rate of 73%

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The New Jersey Division of Gaming Enforcement has published data about the local casinos’ performance in Q4 2023, reporting a decrease in gross operating profit despite an increase in net revenue.

The report highlights Q4 net revenue of $781.9 million, reflecting a 1.3% increase year-on-year. As mentioned, gross operating profit declined by 3.6% to $148.5 million.

Additionally, the Division of Gaming Enforcement published data about its licensees’ full-year performance. According to the authority, net revenue reached $3.33 billion for the calendar year, representing an increase of 0.8% year-on-year. In the meantime, licensed casino companies in New Jersey reported FY 2023 gross operating profit of $780.7 million, a 4.1% decrease year-on-year.

The division also published hotel occupancy figures for the period, saying that casino hotels in the state reported a Q4 occupancy rate of 66.5%. This figure marks a slight 0.7% increase compared to the prior year period. The occupancy rate for the twelve months ended December 2023, on the other hand, reached 73%, which demonstrates a decline of 0.4%.

Most Hotels Experienced a Decline

The most profitable casino resort in 2023 was the Borgata with Q4 net revenue of $190.4 million and gross operating profit of $47.9 million. The property’s FY 2023 results included net revenue of $785.6 million and gross operating profit of $226.1 million.

Next up was Hard Rock with Q4 net revenue of $140.3 million and gross operating profit of $28.5 million. Its FY net revenue stood at $572.7 million, resulting in a gross operating profit of $125.5 million

Rounding up the top three, Ocean Resort posted Q4 net revenue of $119.8 million and gross operating profit of $26.6 million. The venue was one of the only three licensees to report an increase in gross profit for 2023, with net revenue of $491.8 million (+16.3%) and gross operating profit of $117.2 million (+21.8%).

Bally’s AC was notably the biggest winner in 2023 as it was able to greatly bolster its profitability from a gross operating loss of $1.8 million in 2022 to a profit of $11.1 million in FY 2023. Resorts Casino, on the other hand, saw its gross operating profit plummet from $21 million in 2022 to $9.5 million in 2023.

Here’s how New Jersey’s other licensees fared in terms of FY 2023 gross operating profit:

Caesars: $51.7 millionGolden Nugget: $29.8 millionHarrah’s: $80.6 millionTropicana: $93 millionCIENJ: $23.6 millionResorts Digital: $12.2 million

In other news, Atlantic City’s casino workers continue to push for a ban on smoking in the local casinos.

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Nonetheless, workers and union representatives maintain that enacting a smoking prohibition is essential to ensure the welfare of both staff and patrons

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The anticipated hearing for the lawsuit filed by Atlantic City casino workers seeking a smoking ban has been postponed, marking a significant setback in their ongoing fight for safer working conditions. Initially scheduled for April 25, the hearing has been delayed by two weeks following a request from the New Jersey Attorney General’s office.

Lawsuit Delay Heightens Battle Against Smoking in Atlantic City Casinos

This delay comes amidst a longstanding effort by the Casino Employees Against Smoking Effects (CEASE) and the United Auto Workers (UAW) union to challenge the exemption allowing smoking in Atlantic City casinos. Their lawsuit contends that the exemption violates the principle of equal protection under the law and is unconstitutional.

Expressing frustration over the delay, Pete Naccarelli, co-founder of CEASE, highlighted the continued exposure of tens of thousands of casino workers to hazardous secondhand smoke. He emphasized the urgency of addressing the issue, asserting that the current environment not only poses dangers but also infringes upon workers’ constitutional rights.

The postponement of the hearing adds another layer of complexity to an already contentious issue. Workers, represented by the UAW, have long advocated for a smoking ban in casinos, citing concerns about their health and safety.

Similar campaigns in other states such as Rhode Island, Pennsylvania, Kansas, and Virginia have underscored the broader significance of this issue, resonating with workers across the country.

Casinos Maintain Stance Against Smoking Prohibition

Recent financial reports revealing a downturn in physical visits to Atlantic City’s casinos have heightened concerns. However, workers and union leaders assert that implementing a smoking ban is imperative to safeguard the well-being of both employees and customers, viewing it as a crucial step toward addressing the city’s existing challenges.

Earlier this year, Sen. John Burzichelli presented a bill aimed at addressing the grievances of both workers and the casino sector. However, the proposed legislation was heavily skewed in favor of casinos, leading workers to advocate for a comprehensive ban to reject it. 

Despite growing calls for a smoking ban, the Casino Association of New Jersey remains steadfast in its opposition, citing apprehensions regarding its potential impact on competitiveness with neighboring states. Nevertheless, workers are resolute in their pursuit of change through legal means. The quest for improved working conditions has struck a chord across New Jersey, garnering widespread public backing.

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As per the planning documents filed with Clark County, the expansion proposal delineates the incorporation of an additional 6,415 square feet into the property

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In a bid to enhance its gaming offerings and entertainment experience, Ellis Island Hotel & Casino, situated off the bustling Las Vegas Strip, has commenced a significant expansion project. The family-owned establishment is set to undergo a transformation, knocking down walls to create more space for its patrons.

Planning Documents Reveal Ellis Island Casino’s 6,415 Square Feet Expansion

According to planning documents submitted to Clark County, the expansion plan outlines the addition of 6,415 square feet to the property, reported The Las Vegas Review-Journal. Among the features of the remodel are a larger casino floor, an audio/visual equipment area, a dedicated sportsbook back-of-house area, and a south service entrance vestibule.

Christina Ellis, vice president of development at Ellis Island Hotel & Casino, conveyed her excitement for the project, emphasizing that the renovation presents a chance to elevate the gaming and entertainment experience while also paying tribute to the establishment’s history and heritage.

As part of the expansion, the existing 2,800-square-foot microbrewery on the premises has been demolished to make room for the new structure. Once completed, the revamped establishment will boast closer proximity to the sidewalk and include rooftop access, providing visitors with a unique perspective of the Las Vegas skyline.

Ellis Island Hotel & Casino Eyes Winter 2025 for Completion

Officials at Ellis Island Hotel & Casino anticipate that the project will be finalized within eight to ten months, with an expected completion date in winter 2025. Anamarie Ellis, the vice president of operations, highlighted the significance of the endeavor, especially as the hotel-casino approaches its 56th anniversary.

The site, nestled on Koval Lane near Flamingo Road, has been operated by the Ellis family since 1967, gradually expanding its operations over the years. Notable milestones include the acquisition of the adjacent hotel and the establishment of the Front Yard, a popular beer garden with on-site brewing facilities, which opened its doors in 2019.

The expansion project marks a strategic move by Ellis Island Hotel & Casino to stay competitive in the ever-evolving landscape of Las Vegas entertainment and hospitality.

While some Las Vegas casinos are expanding, others are being demolished. Bally’s Corporation prepares to implode the Tropicana Casino Hotel in Las Vegas by the end of the year, pending necessary permits for implosion, including dust control and asbestos abatement. The iconic property, which opened in 1957 and closed in 2024, faces concerns over Bally’s financial position amidst plans for redevelopment.

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In a recent submission to the court, legal representatives of Wynn detailed accusations suggesting that Fontainebleau has been actively persuading Wynn executives, who are under noncompete agreements, to leave their roles and join the rival company

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Wynn Las Vegas has taken legal action against Fontainebleau, requesting a Clark County District Court judge to intervene and halt what they claim is the ongoing poaching of their executives by the rival resort.

Wynn’s Legal Filing Claims Fontainebleau Tempts Executives with Salary Boosts

In a recent court filing, Wynn attorneys outlined allegations that Fontainebleau has been actively enticing Wynn executives, who are bound by noncompete agreements, to abandon their positions and join the competitor, reported The Las Vegas Review-Journal. The motion, submitted on April 5, detailed instances where Fontainebleau allegedly offered substantial salary increases to lure Wynn employees away.

The motion asserted that Fontainebleau had repeatedly interfered with and attempted to interfere with Wynn’s employment agreements. It further argued that given Fontainebleau’s past behavior, it is likely to continue such practices, hence the request for an injunction to prevent further disruption of contractual relationships.

This legal tussle began at the beginning of March when Wynn initially filed a lawsuit against Fontainebleau. The complaint alleged persistent efforts by Fontainebleau to convince Wynn employees to switch sides.

The ongoing lawsuit later escalated with the submission of a response from Fontainebleau, including correspondence between the CEOs of both companies, revealing discussions about alleged attempts by Fontainebleau to attract Wynn executives.

Executive’s Involvement Shapes Wynn-Fountainebleau Legal Battle

One such employee mentioned in the Wynn Las Vegas filing is Wayne Crane, a senior executive director of entertainment for Wynn Nightlife. According to the motion, Crane, who had been with Wynn for over a decade, was approached by Michael Waltman, senior vice president of nightlife at Fontainebleau. Waltman allegedly suggested Crane was undervalued at Wynn and discussed potential opportunities at Fontainebleau, including a significant salary increase.

Crane, although content at Wynn, expressed openness to new prospects, particularly if accompanied by a substantial pay raise. Fontainebleau reportedly offered Crane nearly double his current salary and proposed a workaround for the noncompete clause by assigning him to their Miami branch while allowing him to oversee operations in both Miami and Las Vegas from Nevada.

Crane eventually accepted Wynn’s counteroffer of a new three-year contract with substantially increased pay. This turn of events underscores the intensifying competition for talent in the Las Vegas hospitality industry.

While noncompete clauses are not prohibited in Nevada, legal experts speculate on whether this lawsuit might prompt a reevaluation of such contractual agreements in the state.Judge Mark Denton of Clark County’s business court is expected to rule on Wynn’s request for a preliminary injunction within the next month, marking a pivotal moment in this legal battle between two major players in the Las Vegas hospitality sector.

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