Posted on

Like The Boy Scouts, MGM Wants To Be Prepared If Sports Betting Happens

 

 

 

 

 

 

 

 

Sports betting enthusiasts are sitting on the edge of their seats awaiting a Supreme Court decision in the New Jersey sports betting case.

Casinos, however, are doing more than waiting, they are busy planning. In recent earnings calls, MGM, Penn National, and Churchill Downs (CDI) all mentioned sports betting and the potential impact on their bottom lines.

MGM is positioned to be the biggest benefactor of legalized sports betting

MGM is moving ahead with plans to take advantage of the legalization of sports betting outside of Nevada once the decision is official. It is operating under the assumption of “when” not “if” sports betting becomes legal.

“I think there should be great emphasis on what might happen at the Supreme Court,” Jim Murren, MGM Resorts International CEO said on last week’s Q1 earnings call. “Our legal experts seem very confident that PASPA will be overturned.”

MGM already offers sports books at its Nevada properties where sports betting is legal. It also operates playMGM, an online sports betting app which could give it a distinct advantage.

With properties in six additional states, including New Jersey, MGM is ready to implement sports betting quickly. Its properties outside of Nevada include:

Of the states where MGM currently operates, Mississippi and New Jersey have legislation that would allow for legal sports betting if the decision is favorable. Additionally, Michigan, Maryland, and Illinois recently introduced legislation.

All in all, there are 20 states in the U.S. that are in varying stages of the legislative process regarding sports betting.

Play At Borgata Online Casino Now With Free Signup Bonus

Timing for legalized sports betting couldn’t be better

“We intend to be the biggest beneficiary of commercial sports betting if the Supreme Court should overturn PASPA as early as June,” Murren said.

MGM’s stock fell after reporting a one-percent drop in revenue in Q1 at its U.S. properties. During the earnings call, Murren expressed a bright future for the company thanks to sports betting.

Besides the potential for sports betting at its other properties, MGM has invested in sports teams and arenas in the Las Vegas area – making sports a pivotal driver to MGM’s immediate success.

It’s not just MGM that is banking on sports betting. As mentioned earlier, Penn National and CDI are also keeping sports betting front of mind.

It’s fair to say that every casino in the U.S. is hoping for the decision to come down in favor of New Jersey’s position. The enthusiasm around sports betting has everyone parked in front of the Supreme Court’s blog on opinion days.

The sports betting decision isn’t the only thing casinos are keeping an eye on

Casinos are joining forces in opposition to an integrity fee proposed by the sports leagues. It is seen as a way to profit from what is sure to be a significant revenue boost if sports betting becomes legal.

Sports wagering has been happening in Nevada since 1949 without such a fee. Instead, sports books are responsible for paying a tax on revenue to the state.

The integrity fee would be assessed on all amounts wagered. The fee would be in addition to the tax on revenue owed to the state. The sports leagues are lobbying state legislatures to include a fee in their bills.

It is not to say some sort of fee isn’t warranted. It is just the fees the leagues are requesting will not be sustainable to the sports books as proposed.

Additionally, there is no oversight that the integrity fees are actually used to ensure the integrity of the game. It brings into question what the leagues will do with the integrity fees that they aren’t already doing.

Legalizing sports betting is only the first step in launching a sports book. There are a whole host of details to be ironed out on a state-by-state level including license procedures, tax policies, and other requirements.

Most industry experts believe the Supreme Court will rule in favor of New Jersey. The decision is expected to come before the Court breaks for the summer in July.

That is when the real work begins. It looks like MGM is ready to flip the switch – at least in New Jersey and Mississippi once given the go ahead. It stands to reason, its other properties will quickly follow.

 

 

 

 

 

 

 

 

The post Like The Boy Scouts, MGM Wants To Be Prepared If Sports Betting Happens appeared first on Play USA.

Posted on

Parx Trying To Get Carlisle To Opt Back In To Mini-Casinos

Four months ago, Carlisle borough council voted 4 to 2 to opt-out of hosting a satellite casino as part of Pennsylvania’s gambling expansion legislation.

Even so, Greenwood Gaming and Entertainment has set their sights on the city that sits just outside of Harrisburg. It will be an uphill battle for the company that currently operates Parx Casino in Bucks County.

Pleading its mini-casino case before the borough council

The legislation that makes provisions for municipalities to opt-out of hosting a property also allows those same municipalities to change their minds.

Greenwood will make a presentation to the borough council on May 2. The workshop meeting is open to the public and will start at 6 p.m.

Presenting to the council is surely a sign of interest in the Carlisle sight for a future satellite casino. The presentation will also provide Greenwood with insight into the amount of community support for hosting a casino. An unusual move considering the recent vote to opt-out.

It’s unclear if Carlisle officials and its residents are willing to reverse its current opt-out status. Needless to say, there are both proponents and opponents to the possibility of becoming a host city.

A casino in Carlisle pits those that believe the character of the community is at stake against those that see the advantages of the potential tax revenue.

Two council members, Sean Shultz and Deb Fulham-Winston, voiced strong support for opting-out. Members Sean Crampsie and Robin Guido voted against the opt-out resolution.

During its presentation, Greenwood and Parx will attempt to sway members and residents that are open to hearing about what Greenwood has in store. The company is hoping that a solid plan to provide jobs, tax revenue, and a new community partner is attractive enough to encourage the council to reverse course.

What makes Carlisle so attractive to Parx

Carlisle is the county seat of Cumberland County. Greenwood had its eye on the area around Cumberland since February when it was successful in securing a bid for one of the mini-casino licenses.

Cumberland County is attractive to the operator because of Interstate 81 and the population growth in the area.

There are other sites along the I-81 corridor inside of Greenwood’s circle, the area already licensed for the mini-casino. Many of those communities also opted-out or prohibit the sale of alcohol for commercial use.

Carlisle sits outside of Greenwood’s circle. There is talk that Greenwood is interested in the Bon-Ton store at The Point at Carlisle Plaza Mall. The Milwaukee-based retailer filed for bankruptcy in February and its Carlisle store is set to close.

A big-box store that is practically move-in ready will allow Greenwood to get its mini-casino up and running quickly.

Greenwood has more hurdles than just the Carlisle borough council

It is interesting to see Greenwood going after a second site and expressing interest in a town that has opted-out. The big question is why now – especially when they had the perfect opportunity to secure a license for the area without opposition.

The most recent auction on April 18 resulted in no bidders, which effectively closed round two of the auction. There are still five licenses still available.

The Pennsylvania Gaming Control Board (PGCB) indicated there is a possibility of a third round of auctions.

A third auction round is not a certainty, though. If the PGCB decides to open the third round, both current casino license holders and entities that do not hold a license in the state will be able to bid.

The PGCB will need to vet any new bidders before holding an additional round, which will take some time.

Based on appearances, Greenwood and Parx are betting there will be a third round of auctions and the company is preparing to take part.

Marc Oppenheimer, Parx’s chief marketing officer, told PennLive that no preferred locations have been identified. He also said that choosing a site “is an ongoing process.”

In this case, ongoing means trying to reverse a municipality’s opt-out status.

The post Parx Trying To Get Carlisle To Opt Back In To Mini-Casinos appeared first on Play Pennsylvania.

Posted on

Mixed Start to Party Poker´s Monster Series

Party Poker´s Monster Series got underway yesterday to a bit of a mixed start. Although the first three events were very popular, only three of the remaining twelve tournaments managed to meet their guarantees – resulting in first day overlays of nearly $50,000.