Media Man Gaming: New Jersey Casinos

Media Man Gaming Blog

New Jersey casinos want 10 more years of internet gambling, but NJ may only approve for 2 more - June 2023

New Jersey’s casinos want to expand the state’s tops-in-the-nation internet gambling market for another 10 years, but state lawmakers may only approve it for an additional two years.

A state Assembly committee approved a bill Tuesday that originally would have allowed online casino gambling to run through 2033.

But the committee amended it to reduce the extension to just two years. The changes were not made public during the hearing, and lawmakers could not be reached for comment after the vote.

It is unclear when a final vote might be held.

Internet gambling has been a success story in New Jersey, which has won more from online gamblers than any of the five other states that also allow it.

Since New Jersey began taking online bets in November 2013, Atlantic City’s casinos and their online partners have won $6.29 billion from gamblers, according to the American Gaming Association, the casino industry’s national trade group. That does not include money from online sports bets.

It was widely credited with helping Atlantic City’s casinos stay afloat during 3 1/2 months of shutdowns in 2020 at the start of the COVID-19 pandemic, as well as in the lean months that followed the casinos reopening, as many gamblers remained wary of venturing out to crowded indoor spaces.

“The reauthorization of the internet gaming bill for 10 years is vital to the continued success of the gaming industry in New Jersey and the programs that are supported by the taxes collected,” said Mark Giannantonio, president of Resorts Casino Hotel and of the Casino Association of New Jersey. “This will also provide investor confidence in the New Jersey internet gaming industry.”

He declined to comment on the change in the bill reducing it from 10 to two years.

While it has undoubtedly provided a new revenue stream for Atlantic City’s casinos, internet gambling appears to be permanently changing the habits of some gamblers who would rather bet from home, the office, the beach or other places instead of visiting casinos in person.

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City gambling market, said internet gambling is becoming part of the new normal for many gamblers.

While welcoming the additional revenue, casino executives caution that internet gambling winnings can be misleading in terms of the overall health of their businesses. Money from online winnings must be shared with partners like tech platforms and, in the case of sports betting, sports books, and is not solely for the casinos to keep. Some casino executives say as much as 70% of online winnings go to their partners in online ventures.

In addition to New Jersey, internet gambling is legal in Pennsylvania, Nevada, Michigan, Delaware and West Virginia.

Media Man Gaming Blog: DraftKings

Media Man Gaming Blog

DraftKings lays off roughly 140 employees in corporate restructure  DraftKings is eliminating about 140 jobs, part of what the sports betting company is calling a reorganization. A majority of the eliminated positions are based in Europe, Asia and the Middle East, and primarily span both engineering and HR roles related to hiring, according to someone with direct knowledge of the moves. The 140 positions amount to a low single-digit percentage of the company’s workforce. DraftKings stock jumped nearly 10% on the day to close at $16.48.  

Penn Entertainment reports small year-over-year revenue increase in Q4 despite 

Mattress Mack payout  Despite a huge winning bet by Jim “Mattress Mack” McIngvale and inclement weather in December, Penn Entertainment’s 2022 fourth-quarter results were consistent, according to CEO Jay Snowden during Thursday’s investors’ call. 

McIngvale’s bet on the Houston Astros to win the World Series via Penn’s Barstool Sportsbook cost Penn $10 million. And Snowden claimed that “severe weather in certain parts of the country”...put a drag on revenue.

Blog: Crown wants world's best hotel for Sydney

Blog



Crown wants world's best hotel for Sydney

Billionaire casino mogul James Packer says he will build the world's best hotel in Sydney if he gets approval to include a gambling facility for high rollers in the development.

Mr Packer, the executive chairman of casinos operator Crown Ltd, said on Thursday that Crown wanted to build a hotel at Barangaroo South that would attract millions of tourists to Sydney and create thousands of new jobs.

Barangaroo is a residential, office and parkland development currently under construction on Sydney Harbour.

Crown and Lend Lease, the developer of Barangaroo, have signed a two-year exclusive dealing arrangement for the hotel development, but building approvals are still required from the NSW government.

"Sydney deserves one of the world's great hotels on its magnificent harbour," Mr Packer said in a statement.

"My desire is for Crown to build the best hotel in the world at Barangaroo."

Mr Packer said Crown wanted to incorporate a "VIP-only" gambling facility into the hotel, which would require approval from the NSW government and gaming authorities.

He said a facility for high rollers was "necessary to provide the commercial underpinning for any development and for the operation of a world-class six-star hotel resort".

Acting NSW Premier Andrew Stoner appeared to welcome Mr Packer's plan to build a world-leading hotel at Barangaroo, but stopped short of commenting on plans for a gambling room.

"The creation of a hotel of this stature would deliver new jobs in construction, off-site manufacturing and the tourism industry, along with hundreds of millions of dollars for the state economy each year," he said.

Crown chief financial officer Ken Barton told AAP that Crown said detailed costing of the project would be developed in the next two years.

He said if Crown was to operate a gaming facility in Sydney it would require the NSW government to issue a new licence, or it would have to be done as part of the existing licence which is held by Echo Entertainment Group, the operator of The Star casino in Sydney.

"I guess that's part of the two-year program as well: working through a licensing scenario," Mr Barton said.

"If the NSW government were to issue another licence between now and November 2019, it would be exposed to a requirement to pay compensation to Echo."

Asked if Crown had engaged with the NSW government to sound out its attitude towards a second licence, Mr Barton said: "Not in any conclusive way."

Crown operates casinos in Melbourne and Perth and is pushing for a presence in Sydney, where it holds a stake of around 10 per cent in Echo.

Crown has applied to regulators in NSW and Queensland for permission to lift its stake in Echo to up to 25 per cent.

Crown has been upgrading its casinos in Melbourne and Perth in a move to entice more high-rolling VIP gamblers from Asia.

It is planning to spend $568 million building a new six-star hotel at its Burswood complex in Perth.

Shares in Crown closed eight cents lower at $8.39 on Thursday. (AAP)

Blog

Blackstone Boss Pumps Up Crown Resorts, as New Owner Plans Major Upgrades - June 2023

We want to be a best-in-class entertainment company and hotel business. We understand that there was a lot that wasn’t done right and we’ve got to come in here and operate at the highest standard, the highest standard from a compliance standpoint, but then make them as attractive as possible to customers,” Jon Gray said about Crown Resorts in Australia.

(The Australian)