Inside Gaming: Caesars Leaves Others to Pursue Japan Integrated Resorts
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Caesars No Longer Pursuing Entry in New Japan Market
This week Caesars Entertainment Corp. announced that in the wake of its being acquired by and merging with Eldorado Resorts Inc. in June, the company will not be seeking a new casino license in Japan, reports Bloomberg.
"Caesars management made the decision out of sensitivity to the Japanese government and business partners, who must make decisions this year to advance the casino process," said Caesars CEO Tony Rodio in a statement on Thursday.
It was just over a year ago that following a long process Japan's legislature finally enacted a previously approved bill to authorize the opening of new "integrated resorts" in which casino space will be limited to 3 percent of the total floor area.
Competition remains fierce among other international companies interested in being involved in Japan. Preliminary approval has been given by the Japanese government "for what's expected to be three major resorts" while cities are currently "formalizing their bidding processes."
Earlier this year MGM Resorts International established its interest in gaining a foothold in the new market after entering a partnership with a Japanese financial services group, the Orix Corporation based in Osaka.
While MGM considers Osaka, both Las Vegas Sands and Wynn Resorts Ltd. are eyeing Toyko (pictured above) as a potential landing place. Wynn is also looking at Yokohama (located a half-hour south of Tokyo) where Galaxy Entertainment Ltd. has also expressed interest.
Arlington Park Not to Seek Casino License, Future Uncertain
Arlington Park, a.k.a. the Arlington International Racecourse located in the Chicago suburb of Arlington Heights has been open more than 90 years. But its future appears to be in doubt after parent company Churchill Downs Inc. announced on Wednesday it would not be seeking a casino license, reports The Daily Herald.
In the announcement the company stated it would continue horse racing through 2021, though also suggested the possibility moving its racing license elsewhere.
CEO Bill Carstanjen cited a new legal requirement forcing the track to use a percentage of its casino game earnings to supplement its racing purses as having precipitated the announcement. His complaint relates to the recently passed Illinois Gaming Act signed into law in June.
The legislation allows for the addition of several casinos including a "mega-casino" in Chicago, the adding of slots and table games at existing gambling venues, as well as the addition of sports betting in the state. However, the above-stated requirement for Arlington should it apply for a casino license — not required of non-racing venues — may force a dramatic move.
"The economic terms under which Arlington would be granted a casino gaming license do not provide an acceptable financial return and we cannot reasonably proceed," explained Carstanjen.
The announcement "stunned many in the state's horse racing community," reports the Herald, with the Illinois Thoroughbred Horsemen's Association responding with criticism of Churchill Downs for apparently planning to "abandon its commitment to racing in Illinois."
Massachusetts Leaving Sports Betting to Other States For Now
A new National Football League season kicks off in less than a week on Thursday, September 5, a date sports bettors all over the country have had marked on their calendars. Indeed, the start of the new season is even more meaningful for the industry thanks to the preponderance of states that have passed sports betting legislation over the last year.
No less than a dozen states now offer legal, regulated sports betting, with several more having passed legislation. According to gaming law expert Jennifer Roberts of the UNLV International Center for Gaming Regulation, sports betting will likely be legal in 30 states within 5-10 years of the U.S. Supreme Court lifting the federal prohibition last summer.
Defending Super Bowl champions New England Patriots will begin their title defense with an appearance on Sunday Night Football a week from Sunday, a home game versus the Pittsburgh Steelers played at Gillette Stadium in Foxborough, Massachusetts.
Pats fans in Massachusetts won't be betting on them this week, however — at least not in the state. And they probably won't for the rest of the year, either, reports The Boston Globe while describing the pace of Massachusetts lawmakers' consideration of sports betting legislation as "deliberate — some might even say glacial."
Massachusetts has yet to be swayed by neighboring states' enthusiasm for sports betting. Rhode Island has had it for a year now, while New York also has now added legal sports betting in its casinos. Meanwhile New Hampshire passed a sports betting bill in June that was signed into law last month by Governor Chris Sununu.
Such progress isn't happening in Massachusetts, however, where legislators aren't convinced sports betting will produce enough revenue to justify its introduction.
"Lawmakers note that in some of the 18 states where sports gambling has been authorized, revenues have fallen short of expectations," says the Globe. For example, the modest $2.2 million in tax revenue Rhode Island took in last year fell far short of expectations. That said, as Legal Sports Report notes, the planned-for introduction of mobile betting in Rhode Island in time for the NFL season should boost those numbers.
A lack of consensus regarding other issues including protecting game integrity and consumers, whether to allow betting on collegiate sports, how much to tax, and whether to allow online betting are also preventing progress from being made.
"There's no commitment to put a bill forward until we're confident we can resolve all the issues," said state House member Ann-Margaret Ferrante who co-chairs a committee exploring the issue. Meanwhile all of the states casinos — MGM Springfield, Plainridge Park Casino, and the new Encore Boston Harbor — as well as Boston-based DraftKings unsurprisingly support sports betting legislation.
Photo: "Tokyo Japan City Skyline," Derrick Brutel, CC BY-SA 2.0.
