Author: kelly

As some states begin to flatten their coronavirus infection curve, there have been increasing calls for quarantine and social distancing rules to be relaxed. What impact that will have on the spread of the virus is uncertain at this time, but what is known is that this is a public health crisis forcing many local economies to take a nosedive. Few places were hit harder than Las Vegas, where a full one-third of the local economy is in the leisure and hospitality industry – more than in any other major metropolitan area in the country. Most of those jobs cannot be done from home. As governors and mayors across the country wrestle with the question of when and how to reopen their economies, Las Vegas faces particular pressure because of its dependence on tourism and hospitality. To discover just how hard it will be for Las Vegas to reopen, we have decided to take a closer look into the current impact the coronavirus is having on Las Vegas and the government and casino industry’s responses to reopening. 

Impact on Las Vegas

Governor Steve Sisolak ordered all casinos and gaming facilities to close to prevent the spread of the coronavirus starting in mid-March, and has extended the order until at least the beginning of May. Since then, Las Vegas’ casinos and industry workers have been struggling to cope in this uncertain time. Across the state of Nevada, gaming companies have reported a nearly 40 percent drop in gaming revenue since the beginning of the coronavirus pandemic.  In Las Vegas, specifically, that number is closer to 46 percent. Nevada’s casinos reported more than $600 million in revenues in the month of April, a significant decrease compared to last year’s data. This number is expected to fall even further in May.

Nearly 350,000 Nevadans have filed for unemployment since the start of the pandemic, and the jobless rate in Las Vegas is a reflection of the pandemic’s impact on the casino industry. More than 98 percent of the nearly 307,000 employees represented by the Unite Here Local 226 Culinary Workers Union, which represents casino workers in Las Vegas and Reno, are currently unemployed due to the crisis. Applied Analytics, a Las Vegas-based economic research firm, has reported that the jobless rate in the city is close to 25 percent, nearly double the rate during the height of the Great Recession. Prior to March, the state had reported its lowest unemployment rate in history, 3.6 percent in February.

Government Response to Reopening

While the coronavirus’ impact on the gaming industry in Las Vegas has been substantial, many agree that the city’s casinos should be reopened. Solutions from state and local officials, however, have been divided on how to properly respond to the crisis. Gov. Steve Sisolak announced earlier this week that decisions for reopening casinos and other nonessential businesses would be determined by the state public health standards. Specifically, the governor stated that Nevada would have to see a sustained decline in confirmed cases of the coronavirus in order to consider reopening the gaming industry.

At the same time, the mayor of Las Vegas, Carolyn Goodman, publicly called for casinos to reopen operations immediately and begin to formulate their own preventative measures for enforcing proper sanitation procedures and social distancing guidelines. On April 21, the Nevada Gaming Control Board released a six-page memorandum detailing procedures that the state’s gaming facilities must follow in order to reopen properly. These procedures include a formal announcement of the date and time of their planned reopening, guidelines for registering laid-off employees, as well as a detailed plan by casinos on how they plan to properly ensure the health and safety of their visitors. There is no word on whether the reopening of Las Vegas’ casinos will apply to the rescheduling of major sporting events, concerts, and shows.

Casino Responses to Reopening

Las Vegas’ major casinos are also making their own preparations in order to safely reopen their facilities to visitors and tourists. In mid-April, the CEO of Wynn Resorts wrote an opinion article arguing that Nevada should reopen its gaming facilities, citing the state’s flailing economy and the fact that health officials in the state have noted that they have begun to flatten the curve of new coronavirus infections. Las Vegas Sands, which owns both the Venetian and Palazzo casinos on The Strip, announced that, upon reopening, it would be screening guests as they entered the hotel with thermal cameras in order to check if guests are running high temperatures, a major symptom of the coronavirus. Las Vegas’ Treasure Island casino announced earlier this week that it has begun to take guest reservations at its resort starting on May 15. For many of the casinos, their primary concern in reopening their facilities is to drive-markets in states like California, which represented roughly 23 percent of the city’s total visitation in 2018.

Looking to the Post Coronavirus Future

While we may not know when this public health crisis will be under control, we are able to track its impact on the economy and the entertainment industry. Although the governor’s last formal extension of Nevada’s stay-at-home order was extended to April 30, it is likely that Gov. Sisolak will extend the order until at least the first or second week of May. Even as almost all of the U.S. commercial and tribal casinos in the country have been temporarily closed, many are wondering what it might look like for casinos to bounce back after this pandemic is over. Hope is not lost however, as some casinos are still paying their workers or are setting up food banks for their employees and customers to take advantage of. To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

With the number of infected people in the United States continuing to rise, the coronavirus has effectively changed the way that the country operates. This public health crisis is forcing the economy to a crawl and is upending entire industries — from sports to travel to entertainment. As a $261-billion-a-year industry, the casino and gambling industry have been hit hard by the coronavirus. To discover just how hard of an impact it may have, we have decided to take a closer look into the recent closure of almost all U.S. commercial and tribal casinos in the country, and what it might look like for casinos to bounce back after this pandemic is over. 

Decline in Tourism 

In February, amid the United States’ implementation of international travel bans because of the coronavirus, some cities started to see their tourism numbers begin to drop. Las Vegas, even without all of their international clients, still had tourists flock to take pictures in front of the Fountains of Bellagio and the replica Eiffel Tower at the Paris Las Vegas Hotel and Casino. Inside these establishments, gamblers were still rolling dice and collecting chips and people could be seen dancing in the multistory nightclubs. 

However, this would not last long as the effects of the pandemic started to grip Sin City. Major conventions, like the National Association of Broadcasters, which draws in over 90,000 attendees each year, canceled. By the end of the second week of March, almost all conventions held in Las Vegas through May had been postponed or cancelled. 

Casinos Start to Close Their Doors

Due to the intensifying coronavirus outbreak, and its unprecedented economic fallout, huge shutdowns within the casino industry have occurred. In total, 95 percent of all commercial casinos have announced that they will close starting this week. For example, the Wynn Resorts, a major casino operator, announced it would close its Wynn Las Vegas and Encore properties. They have also announced that all full-time employees would be paid through the temporary closures. MGM Resorts International, another major entertainment company, announced the temporary closure of all of its domestic hotels and casino operations. They will also not be accepting any reservations before the beginning of May. 

In addition to the closure of commercial casinos, the American Gambling Association (AGA) announced that at least 97 percent of the country’s 524 tribal gaming properties are closed. Those that remain open are mostly Native American convenience stores that feature gaming machines. It is important to note that while states lack the authority to force tribal casinos to shutter their operations, as the venues are on sovereign territory, almost all tribal nations that operate gaming are closing their casinos in a nationwide effort to slow the spread of the coronavirus.

With many of the nation’s biggest attractions — from Disney World to March Madness — closing or suspending service because of the pandemic, it is unclear how long the casino gambling industry, which supports 1.8 million jobs, can last during a shutdown. 

Impact of Sweeping Coronavirus Closures

Casinos were already feeling pinched as patrons shy away from handling chips, cash, slot machines and playing cards. Not only has consumer spending plummeted as more and more people avoid restaurants, shopping centers, and large public gatherings, but it has also sparked layoffs to occur all across the country. A prolonged shutdown of this magnitude into the summer could have shattering effects in gambling meccas such as Las Vegas and Atlantic City. The industry in these cities are a big regional employer and one of the top economic engines for both of these states. 

According to the Las Vegas Convention and Visitors Authority, in 2018 about 37.6 percent of the workforce in southern Nevada were supported by tourism. The impact of the sweeping closures was felt immediately with over three times as many people filing for unemployment than normally. In an attempt to help out their workers and not have food spoil, many casino restaurants across the country have been transformed into makeshift food banks. In Las Vegas, card dealers, servers, bartenders, housekeepers and others normally keep the revelry running for over 40 million visitors a year. However, by last week, barricades were placed outside casino doors. All of the cash machines were emptied. The slot machine screens were turned off and all of the tables had been wiped down and bar stools stored away. 

Bouncing Back from the Coronavirus

However, even after the pandemic is contained, it’s hard to say how quickly casinos will be able to bounce back. For many casinos, simply opening the doors will not be enough. According to financial service company, Standard & Poor’s, even after the coronavirus is under control, casinos should expect further financial hurt as states continue to implement social distancing and travel restrictions. Nevertheless, there is more hope for regional gaming markets compared to destination markets such as Las Vegas as customers are more able to drive to local properties, rather than fly or travel long distances.  

While we may not know when this public health crisis will be under control, we are able to track its impact on the economy and the entertainment industry. Even as almost all of the U.S. commercial and tribal casinos in the country have been temporarily closed, many are wondering what it might look like for casinos to bounce back after this pandemic is over. Hope is not lost however, as some casinos are still paying their workers or are setting up food banks for their employees and customers to take advantage of. To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

Seven times larger than Las Vegas, Macau is dependent on the millions of tourists that come from the mainland every week. The beginning of the year is especially profitable for Macau as tourists arrive to spend the Lunar New Year holiday at the city’s baccarat tables and Michelin-starred restaurants. However, this year has not been full of guests and celebrations. Casino operators in Macau are taking a beating as fear of a new threat, the coronavirus, has caused a surge in trip cancellations to the casino hub. As a major player in the casino world, it is no wonder we have decided to take a closer look into the history of Macau, how the coronavirus is affecting this city, and what the future holds.

History of Macau

Human settlements within the Macau region started forming around six thousand years ago. The region was settled during the Han dynasty, but it did not develop as a major settlement until the Portuguese arrived in the 16th century. The initially small population of Portuguese merchants rapidly became a growing city, and around the late 1500s, a government was formed to handle municipal affairs. Macau entered a period of decline in the 1640s following trade routes with Japan and Portugal being severed and the Portuguese revolution against Spain. For the next 300 years, it would switch between being a Chinese and Portuguese colony. 

During the mid-1900s, refugees from mainland China swelled the population of Macau as they fled from the Chinese Civil War. Access to a large workforce enabled Macau’s economy to grow. As the colony expanded, so did the textile manufacturing industry and tourism industry in Macau. This was also the period in which casino gambling became legalized in Macau. Following deadly riots in 1974, Portugal formally relinquished Macau as an overseas province. 

Returning to Chinese control in 1999, Macau became the only part of China to allow casino gambling. Almost overnight, Macau rapidly urbanized and constructed large-scale infrastructure projects, including Macau International Airport and transformed it into a thriving hub for entertainment and fine dining. In 2002, the government allowed open bidding for casino licenses to attract foreign investors. Along with an easing of travel restrictions on mainland Chinese visitors, this triggered a period of further economic growth. Gambling companies built vast casinos that now illuminate the skyline. Often compared to Las Vegas, Macau offers everything, from a miniature Eiffel Tower to a gilded-dragon cable car that floats past dancing water fountains at the Wynn Palace. 

Impact of Coronavirus

A respiratory virus that originated in China and has already spread to more than 35 countries, the coronavirus is leaving many experts fearing a pandemic may be on the way. In Macau, authorities have already identified numerous individuals that have been sickened by this illness, among them a hotel employee at Galaxy Casino, one of the city’s busiest gambling establishments. Authorities have suspended basic public services and have urged residents not to leave their homes except to get food. To combat this virus from further spreading in the region, officials in Macau also asked its 41 casinos in early February to close for half a month. This move not only shut down the world’s largest gambling city but was also a big financial hit towards American casino operators like Wynn Resorts and Las Vegas Sands as well as the local companies that sustain the territory’s economy. 

Since gambling accounts for four-fifths of the Macau government’s revenue, closing all casinos for 15 days is going to drastically impact yearly financial performance. It’s like closing the Las Vegas strip for 15 days, but six times over. According to some reports, the Wynn Resorts in Macau was losing as much as $2.6 million per day during the closure. Furthermore, the drop in casino revenue comes after a particularly challenging year for the companies in Macau. Slowing economic growth in both China and across the world has some worrying about reduced gambling activity this year.  

Looking Ahead

It should be noted that some analysts have downplayed the potential for the coronavirus to financially affect Macau’s casinos’ long term, pointing to how quickly gambling revenue rebounded following the SARS outbreak in 2002. However, SJM Holdings was the only major casino operator in Macau at the time and it did not have the competition from Galaxy Entertainment or Las Vegas Sands like it does today. Furthermore, there are currently no signs of when a bounce-back might come. New instances of coronavirus are still being discovered every day and the disease’s global reach is growing.

Entering this year, the consensus view among Macau casino operators was that the first half of the year would be slow before a rebounded materialized in the back half. But that outlook did not account for the coronavirus. The outbreak has now caused analysts to believe that it’s nearly impossible to project any financial projections for 2020. At the very best, the two-week closure could shave 5 to 15 percent off Macau’s gaming revenue this year. 

After taking a look at the history of Macau, it’s amazing to see how far they’ve come, but seeing how they will continue to progress in the future still remains a mystery. While most of China remains shut down by the coronavirus, the global economic outlook, the fortunes of major casinos, and the jobs of workers around the world depend on how quickly China, and Macau, is able to come back. To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

With the first month of 2020 almost over, it is important to take a moment to look ahead and examine emerging trends that may influence the casino industry this year. While last year brought about the closure of Resorts Casino Tunica and many other notable casinos, the future is looking very bright with plenty of new planned openings scheduled for this year. It should come as no surprise then too that technology is going to continue to play a major role in the casino industry. Therefore, here are some new openings and technology trends to be on the lookout for in 2020.

New Casinos Opening in 2020

Circa Resort

For the first time in more than four decades, an all-new resort is being built on Freemont Street in downtown Las Vegas. Standing at 459 feet tall, this 44-story resort will take up an entire block and be home to 777 rooms. According to owners Derek and Greg Stevens, Circa will have a two-level casino and a nine-story parking garage, known as Garage Mahal, which will be located across the street from the resort. The property is also planning to have the longest outdoor bar to be located on Fremont Street and a six-tiered pool area that includes a 125-foot television screen.

While all of those other amenities are nice, the real showcase of this new resort is the three-story, stadium-style sportsbook. Expected to be the biggest in Las Vegas, Derek Stevens’ has stated that his vision for the sportsbook was inspired by the sportsbooks at Caesars Palace and the Hilton. The Circa’s sportsbook would also include the Vegas Stats & Information Network and is expected to become the center of sports wagering in downtown Las Vegas. If everything goes smoothly, the new resort will be open in December of this year.

Emerald Queen Casino and Resort

While the Puyallup Tribe has been successfully running the Emerald Queen Casino in Tacoma, Washington for the past 15 years, the tribe has only recently been able to make major strides in replacing the former bingo hall into a mega-casino and resort. Construction on this new facility spans over 310,000 square feet with a 110,000-square-foot gaming floor, a 21,000-square-foot event center with 2,000 seats and a 200-room hotel with spa and conference rooms. The casino will incorporate tribal art throughout, a cedar paneling that is evocative of a tribal longhouse and will feature exterior metal panels in a design reminiscent of basket weaving. Drawing comparisons to hotels in Las Vegas, the Emerald Queen Casino and Resort is sure to attract many visitors traveling down I-5. The grand opening is scheduled for next month.

This is just one of many renovation and expansion projects among tribes across the country. These groups are looking to increase profits and 2020 will see the completion of a variety of major improvement projects among Indian owned casinos.

New Legislation, New Opportunities

Atlanta Motor Speedway

Georgia is one of only a handful of states that does not house a land-based casino, but that might change in the near future. Earlier this month the Special Committee on Economic Growth, a committee made up of 15 state representatives, hosted a public hearing to gather input from the local community on possible gambling expansion at the Atlanta Motor Speedway and over 200 residents showed up. However, in order to pass gambling legislation in Georgia, it would require an amendment to the state constitution. This means that a two-thirds majority vote in both the house and senate would need to occur before citizens could even have a chance to vote on it at the ballot box.

If new legislation were to pass, the site of the hearing would be the site of the state’s first casino. Ed Clark, president of the Atlanta Motor Speedway, released plans last year to add a casino, hotel, an indoor and outdoor water park, a concert venue, a nightclub and several other attractions to the racetrack. His plans would turn the speedway into a year-round attraction instead of just during the NASCAR season.

This would not be the first speedway in the country to renovate their facilities with casinos. Both Kansas Motor Speedway and Delaware’s Dover International Speedway each have casinos attached to them.

Pamunkey Indian Tribe and the City of Norfolk

Earlier this month, the city of Norfolk, Virginia, signed a $10 million agreement with the Pamunkey Indian Tribe for the purchase of 13.4 acres of land for the development of a waterside resort casino. The signing comes after over a year of negotiation between the City Council and the tribe.

The proposed Pamunkey Resort and Casino would include a four-diamond, full-service convention hotel, several onsite restaurants, an entertainment venue, a luxury spa, and both indoor and outdoor swimming pools. While construction has not even started yet, it is projected to create thousands of full-time jobs and attract millions of new visitors to the city each year.

However, while 2020 is an exciting time for Norfolk and the Pamunkey Tribe, there is a minor speed bump before any construction can even begin. According to a provision in the agreement, the tribe cannot fully purchase the land until they are given the right to conduct commercial gaming. Since commercial gaming is not yet legal in Virginia, the General Assembly would need to first legalize commercial gaming before any party could begin to reap the benefits of this new project. The state did adopt legislation last year that specifically would allow casinos in five cities, including Richmond and Norfolk, but the legislation would need to be passed again this year to become law.

The tribe has modified its development plans in an attempt to be more actively involved in current General Assembly deliberations regarding possible casinos in Bristol, Danville, and Portsmouth. With the possibility of the federal process for a tribal casino taking years, by the time the tribe’s project would be ready to proceed, other casinos would likely already be operating.

As the year 2020 continues to unfold, we are expecting more big news in the worlds of casinos, gambling and gaming. Visit Casino Schedule Ease to learn more about how management software is helping casinos meet modern demands and to stay up-to-date with the latest news happenings through our blog.

Since their creation back in the 19th century, slot machines have remained one of the most popular casino games in the world. Internationally, slot machines are known by different names. Whether it is “fruit machines”  in England or “pokies” in Australia, they have grown in popularity throughout the years and are now a huge hit on a global level. Step into a casino and you will almost immediately understand why these machines are so popular. That is why we are taking a closer look into the history of these gaming machines, their evolution, and what the future holds. 

Before we discuss the invention of slot machines, it is important that it is made clear that most dates mentioned are going to be approximations. This is due to the fact that this is quite a controversial subject and many people claim to have been the first to invent the machine. 

The Creation of Slots

Nevertheless, the very beginnings of slot machines date back to the late 19th century. It is believed that Sitmann and Pitt, from Brooklyn, New York, developed the first gambling machine in the early 1890s. A precursor to the slot machine, this gambling machine used cards as symbols and was based on poker.

Soon after its introduction, this machine proved to be extremely popular and could be found in many bars across the city. When a player inserted a nickel and pulled the lever, the drums would spin and random cards would show up. Rather than having automatic rewards, this machine would give out prizes such as free drinks or free cigars.

A few years later, Charles Fey is created with the first slot machine. Dubbed the Liberty Bell, this machine only had three reels but had the ability to trigger payouts automatically. The popularity and success of the Liberty Bell set the standard for the modern slot machine and while his design was eventually copied and sold by other competitors, the three-reel model can still be found in some slot machines today. 

The Electromechanical Slot Machine

In 1963, Bally Manufacturing developed the first fully electromagnetic slot machine called Money Honey. This machine featured electronic reels that were activated when the patron pulled the side lever. Interestingly, the electromechanical approach allowed Money Honey to be the first slot machine with a bottomless hopper and automatic payment of up to 500 coins. For those unfamiliar with the term hopper, it is a mechanical device that rotates coins into the coin tray when a player collects credits/coins. Later on, after gaining more popularity, the lever was removed from the machine and replaced with a button.

The Introduction of Video Slots

Around 15 years after the introduction of Money Honey, the first electronic slot (aka video slot) was developed by the Las Vegas-based company Fortune Coin Company. Using a modified 19-inch Sony Trinitron color receiver for the display and logic boards for the slot machine functions, this prototype was mounted within a full size show-ready slot machine cabinet.

The first of these video slot machine was placed at the Hilton Hotel in Las Vegas. However, it did not find initial success like its predecessors. It is believed that since players were unable to actually see the reels rotating, they did not believe they were slot machines. That all changed within a year. By 1978, International Game Technology (IGT) bought Fortune Coin Company and made modifications to the video slot machines. Once modifications were made, these machines started gaining widespread popularity across the Las Vegas Strip. Very quickly, video slots could be spotted in almost every casino in Vegas. 

The next big year for slots came in 1994. Two big milestones occurred for slots that year. First, the very first online casino introduced video slots. Online video slots provide a convenient gaming experience for millions of people around the world, without the hassle of going to a casino. Today, they are classified as a huge success within the gaming industry.

The second milestone was the unveiling of the first electronic slot machine with two screens. This occurred in Australia in 1994 and made its way to America two years later. With two screens, players were able to experience changing displays and the ability to claim a potential bonus. If a player activated a bonus round, a new screen will appear with a chance to win a bonus game. According to the Nevada Gaming Almanac, these new machines currently generate over 70% of the incomes for casinos in Las Vegas. 

3D and the Future of Slots

Casinos are constantly trying to find new ways to entice audiences and keep them coming back. In the slot industry, that’s currently happening with 3D slot machines. While the machines themselves are not a holographic 3D piece of machinery from the future, they are created to make the video screen as much 3D as possible. Available both online and in casinos, 3D slots do not require any special glasses. The designers of these machines specifically created the symbols and characters to be as lifelike as possible.

If you really concentrate, sometimes the art on the slot machines look so real that it can feel like they’re popping out at you. These 3D slot games are pretty similar to video slots except for the extremely high-quality graphics which they contain. Right now, they are seen as the latest evolution of slot machines and a good indicator that the slot industry is continuing to grow. 

After taking a look at the evolution of slot machines, it’s amazing to see how far they’ve come, and how they continue to progress. With technology continuing to evolve, there’s no telling what could be introduced next. It’s amazing how such a simple machine has become huge in the entertainment industry.

To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

Georgia Pushes to Legalize Casino Gambling

Historically, Georgia has not been a gambling friendly state and efforts to pass legislation to legalize gambling have been shut down. Despite this, Ed Clark, the President of the Atlanta Motor Speedway is hoping that a $1 billion proposal for a casino resort will change minds. Clark is advertising the casino as a way to continue to grow Georgia’s economy and bring 3,000 construction jobs and up to 5,000 other casino jobs to the area.  

The proposal comes at a time when the state is experiencing a dip in tax revenue and government agencies are being ordered to reduce spending. Clark is hoping that these economic circumstances will help him make his case and help make gambling a more attractive option than it has been in the past. 

Clark has already released a rendering of the potential casino and resort complex. This massive project could include hotels, restaurants, concert venues, indoor and outdoor waterparks, theme park and an interactive golf driving range. It would be located just 29 miles from downtown Atlanta and within easy driving distance of 8.5 million people who live in and around Atlanta. 

It remains to be seen whether the state legislation will be sold on the idea and if local residents will welcome gambling in the state. A vote within the next year should decide the matter at least temporarily. Even if the gambling remains illegal, there is sure to be a continued push for a change in the laws from entrepreneurs looking to make money.

Football Fuels Sports Betting

With both college and NFL games being played across the country, sports betting is bringing in big revenue for participating states. In Mississippi, one of the first states to offer sports betting once it became legal, September was a lucrative month with $37.9 million in bets. That is twice as much as the previous month. Mississippi has a 12% tax rate on casino revenue, which has resulted in $675,790 going back to the state and various municipalities where casinos are located.  

Iowa was also an early adpoter of sports betting and has also been seeing big numbers early in the football season. Unlike Mississippi where betting is only allowed on casino grounds, Iowans can take advantage of mobile betting right from their smartphone. As a result, 56% of all bets were made through a mobile device. With football season in full swing both states are expected to rake in significant profits that will be funneled back into the communities.

Debates Continue over the Chicago Casino

For months, we have been following developments in Illinois as lawmakers and developers work to bring a major casino into Chicago. So far, it has been difficult to come to an agreement about the exact location and now Mayor Lori Lightfoot is campaigning to have the casino run as a state-owned business. The Mayor wants to leverage the casino to help address the city’s $1.3 billion in debt and try to make up for a budget shortfall.  

However, the legislation is reluctant to revisit a bill that has caused a lot of uproar and controversy across the state. The entire project continues to be stalled by disagreements and lawmakers argue that making additional changes to the project would only reignite debates and lead to further delays and unnecessary conflicts. 

The delays are due to a tax structure that is scaring away investors. Currently, the owners of the casino would end up paying a tax rate of 72% on the gross gaming revenue (GGR), making it far and away the most heavily taxed casino in the country. If operating costs reach 30% of the GGR, which is quite likely, the casino would be in the red on day one. Understandably, investors don’t want to take on that risk.

If Mayor Lightfoot is unable to convince lawmakers to make the casino a state-owned venture, then she is calling for changes to the tax structure so that the project can actually attract funding from private sources. The next option would be to raise property taxes in order to bring in additional revenue, but this is a move that both the mayor and city residents would rather avoid. At this point, it is up to the legislature to decide how to move the casino project forward and it looks like they aren’t in a hurry to resolve the issue.

Facial Recognition Technology May Be Coming to Casinos

Konami Gaming is looking to replace rewards cards with facial recognition technology at slot machines and other games. Gamblers would simply have to share a photo of themselves at the casino rewards desk and eliminate the need to carry around a card. The technology would also be used to increase security, target customers with different offers and collect data on users’ behavior.

However, many argue that this technology violates privacy rights. While guests can choose not to use the facial recognition and ask to have their information deleted, many see this tool as problematic. Konami and participating casinos may have to iron out usage policies before the technology goes live so that they can avoid any lawsuits. 

It has been another exciting month in the casino industry. From major deals and new casinos to stalled projects, there is a lot to catch up on. Learn more about some of the biggest happenings across the country and what they could mean for the future.

Change of Leadership in New Jersey

In August, Kevin Ortzman suddenly resigned as the Regional President of Caesars Atlantic City and the President of the Casino Association of New Jersey. An internal investigation was launched after Jocelyn Agnellini-Allison filed a wrongful termination lawsuit. She had reported that Ortzman was seen kissing a subordinate employee. Not long after reporting the incident, she was terminated. In her lawsuit, she claims that she was retaliated against by her superiors and then fired without cause. Amid these allegations, Ortzman stepped down from his position.

While Caesars continues to deal with the lawsuit and leadership changes, the Casino Association of New Jersey has just named a new president. Steve Callender, who has over forty years of experience in the casino industry, will take over the association. He is now in charge of advocating for all nine Atlantic City casinos and working to represent their best interests. Looking forward, Callender will have to help casinos navigate increased competition as gambling becomes legal in more states. He will oversee the expansion of sports betting and online gambling while also dealing with mandates from lawmakers. For example, new laws require employees to carry emergency devices and Callender is responsible for ensuring compliance. The change in leadership was abrupt and unexpected, but hopefully it will be a positive thing for Atlantic City.

Norfolk Votes to Build Casino

Competition along the east coast continues to increase and Norfolk, Virginia, is now slated for its own casino. On September 24th, the city council voted 7-1 to move forward with a deal to sell land to a local tribe that will build a $700 million resort, casino and spa on the site. The complex will include restaurants, a luxury hotel and hundreds of gaming tables.

In recent months, the council and the town manager have been extensively researching the potential impact of the casino. While there are still some unanswered questions, the council clearly feels comfortable taking the next steps in getting the casino built. There has been some resistance from the public and they have the chance to submit a petition that would then put the issue back before the council and provide the opportunity to amend or repeal the project. It remains to be seen whether opponents of the project will pursue this course of action. In all likelihood, the council’s vote will stand.

Chicago Casino Project Stalled

All summer, there has been excitement about the prospect of Chicago’s first urban casino, but the project seems to be stalled. Part of the problem has to do with the city’s tax rate. As the law stands now, casino developers would pay a 72% tax rate and additional fees. Existing riverboat casinos pay tax rates of 15% to 50%.

For investors, developers and financiers, this simply isn’t a viable business deal. The Gaming Board is turning to the state lawmakers and asking them to make changes to the tax laws that would provide casino operators with more profits and attract investors so that the project can move forward.

The city is also having trouble deciding on a location. Most of the proposed locations have been on the southside and westside of Chicago. These options are also turning away potential investors because they don’t think that tourists will venture to these areas of the city.

The Chicago casino was a part of a more expansive gambling bill that cleared the way for additional casinos to be built throughout the state of Illinois. While the Chicago project is dealing with major obstacles, other casino projects are moving forward more smoothly.

Caesars Looks to Sell Properties

The resignation of Kevin Ortzman couldn’t have come at a less inopportune time. Caesars is in the middle of finalizing a deal with Eldorado Resorts to sell their properties for a total of $17.3 billion. While the properties will retain the Caesars name, the future of these properties is uncertain.

In Las Vegas, the Rio Las Vegas, which is owned by Caesars and located off the strip, has recently been sold to the real estate firm Imperial Companies for $516.3 million. As part of the deal, Caesars will operate the casino and pay $90 million in rent. Since Imperial doesn’t have much experience in the casino industry, many are speculating the property will be repurposed once the lease agreement is over. The future of the Rio may not involve gaming at all.

Movie Goer Wins Big

This is exactly the kind of story that keeps people going to casinos, playing the lotto and hoping to win big. On September 21st, a local man was visiting the theater inside the Aliante Casino and Hotel to catch a movie. To kill some time, he put $20 into the Wheel of Fortune slot machine and a few minutes later a $1.25 bet had resulted in a $935,176 jackpot. A simple trip to the movies netted this man a huge payout. Luck was definitely on his side.

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In past posts, we have taken a closer look at the origins of the Las Vegas strip, how the city as evolved and its contributions to art and architecture. For this post, we are turning to America’s other famous gambling hub and diving into the history of Atlantic City. While gambling in the city wasn’t legalized until 1976, the city has a rich history that has helped shape the town we now know. Taking a look at the past may also provide some insights into the future of the city.

Prime Real Estate

In 1853, when Las Vegas was still a desolate stretch of desert, developers were recognizing the potential of Atlantic City. The city sits along the coast of the Atlantic Ocean and is surrounded by islands, making it the perfect place to build a resort town. The Belloe House was the first hotel to be built and within a year, the town had been incorporated and began receiving trains. Soon, nearly 500,000 visitors were heading to the city to escape New York City and enjoy the supposed health benefits of ocean water and clean air.

Much of the city’s PR and branding was spearheaded by Dr. Jonathan Pitney, who came to be know as the “Father of Atlantic City.” By touting the town as a health resort, he was able to boost tourism. In fact, he was responsible for the construction of the United States Hotel, which boasted 600 rooms and 14 acres of ground, making it the largest hotel in the country at the time.

By 1870, the first boardwalk was installed. While the boardwalk would eventually become a permanent feature and an iconic part of the city, these early versions were torn down at the end of the season. Their main purpose was to help keep sand out of hotel lobbies.

As the century came to an end, the city continued to gain in popularity. Eventually a toll road and second railroad were added to accommodate the influx of traffic. Smaller boarding houses began to be built. Despite all the construction, the city maintained a sense of luxury that attracted the rich and influential.

The Heyday of Atlantic City

Atlantic City has gone through several periods of revival, but the biggest boom time occurred at the turn of the century. Dozens of new hotels, including the famous Marlborough-Blenheim and Traymore Hotels were built and the 24 story Claridge hotel became known as the “Skyscraper by the Sea.”

During Prohibition, when other cities were cracking down on alcohol, the Atlantic City police and local officials turned a blind eye as liquor was smuggled into the city. Visitors could easily visit restaurants and nightclubs and grab a drink. Organized crime became such a big part of the city that they actually held a national conference there in 1929. It was also around this time that the city served as the inspiration for the first version of Monopoly, which still features the street and railroad names of the city.

New Challenges

After Prohibition, the nightclub scene flourished, but the city as a whole began to decline. More people owned automobiles and were able to come for a few days without having to stay for a week or more at a time. This new found mobility also meant that tourists could easily explore other cities along the coast and around the country without having to rely on the railroad. Commercial airlines also made travel easier and had people flying to tropical destinations like the Bahamas instead of hopping the train to Atlantic City. Finally, the emergence of suburbia and a healthy middle class meant that more families were building luxurious homes with swimming pools. This afforded people to enjoy the summer at home rather than spending money on an ocean side resort.

By the end of the 1960s, the city was trying to find new uses for hotels that weren’t in demand. These once popular and luxurious buildings were converted into nursing homes and apartments or simply demolished. In 1974, the city voted on a referendum to legalize gambling, but it failed. By 1976, residents had changed their collective mind and decided that gambling might just be the key to breathing new life into a crumbling city. Eventually, a total of 11 casinos were built and these locations began hosting big name boxing matches that brought in national attention.

Unfortunately, the Great Recession, which hit the US in the late 2000s, put a stop to a list of major construction projects that were already in the works and expected to bring even more business and big names like Steve Wynn into the area. Even as the rest of the country began to recover from the economic downturn, Atlantic City struggled to find funding for half finished projects and the state continued to lose revenue from gambling. Governor Chris Christie went against public sentiment in 2010 and offered Revel Entertainment Group $261 million in tax credits to finish building the revel casino. Within just ten months of opening the casino was forced to file for bankruptcy.

A New Resurgence

While Atlantic City continues to feel increased pressure as more surrounding states legalize gambling, the city has been making major strides. They were one of the first states to legalize sports gambling, giving them a leg up on the competition. Major casinos have also undergone renovations in order to cater to a new audience and revenue numbers are up almost across the board. There are more family friendly attractions, helping to revive the resort feel that once made the city a destination. With new projects on the horizon, the future is looking bright and Atlantic City could experience another historic and definitive resurgence. To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

August has been a busy month in the casino industry. From Indiana to New Jersey and Nevada, there have been some big shake ups that have made the news. Keep reading to get caught up on what has been happening across the country and get a preview of what to expect this fall.

Hard Rock Hotel & Casino Closes

In March of 2018, Sir Richard Branson, the head of Virgin, announced the purchase of the Hard Rock Hotel and Casino in Las Vegas. At the time, the plan was to temporarily close the hotel so that it could be re-branded and renovated. Construction was expected to be completed by the end of 2018, but a series of delays have pushed back the project.

Virgin has finally completed construction plans and announced a timeline. The location will shut down in February after the Super Bowl and reopen some time between October 2020 and January 2021. This is quite a deviation from the original plan that was expected to take just four months. Apparently, a more thorough audit of the building revealed the need for additional changes that have significantly expanded the scope of the project. Expected changes include a larger casino floor, more spacious conference center, new restaurants and a five-acre pool deck. In addition, all 1,500 rooms will be upgraded.

While the project is exciting news for some, it has put the casino’s 1,650 workers in a precarious position. The company has offered a retention bonus and employees won’t have to re-interview if they want to return to their position once the casino opens. However, it remains to be seen how many employees will stay on board after at least eight months of closure.

The Sahara is Undergoing a Facelift

The SLS Las Vegas Hotel & Casino is in the middle of a major facelift that could also include some rebranding and a return to its original and recognizable name, The Sahara. The project most notably includes the addition of the “Infinity” gaming floor, which will cater to high-rollers who like to make big bets. This section of the gaming floor will feature rich decor, specialty cocktails and elite gaming opportunities. The casino’s new owners are hoping to restore some of the luster that has been such an important part of the history of The Sahara.

Tiverton Casino and Hotel Earns Community Support

Any time a new casino opens, there is bound to be push back from the community and differing opinions about the advantages and disadvantages of building a casino. However, the Tiverton Casino and Hotel has received continuing support from local residents and government officials, which recently culminated in a permanent license to operate on a 24-hour basis.

The casino opened in September of 2018 and has performed well since then. For the first year of operation, the casino was granted a pilot license that would allow them to stay open 24-hours, but also allow the community to review this plan and make adjustments after a trial period. After 12 months, a hearing was held to evaluate the impact of the casino and decide how to move forward. Fortunately, there have been few issues. The only request for changes came from the fire and police departments who asked for better communication tools to aid first responders. The casino immediately committed to installing new equipment to make the necessary improvements.

The only local resident to speak out at the public hearing had nothing but nice things to say about the casino and how the business is fitting into the community. Hopefully, the Tiverton Casino and Hotel can continue to experience success and support. Moving forward, their biggest challenge may be increased competition from the recently opened Boston Harbor Encore Casino located just down the road.

Indiana Opens Doors to More Gambling Opportunities

In April, Indiana Governor, Eric Holcomb signed a massive gambling expansion into law. Not only is sports betting now legal in the state, two riverboats, which have operated on Lake Michigan, now have permission to move inland and set up shop on dry land. Spectacle Entertainment, which owns the boats, has made a deal with Hard Rock to build a $400 million facility that will include a live music venue.

The move to expand is in direct response to a bill passed in Illinois that is also working to bring more casinos to the state, including one in Chicago. Indiana has already experienced a 30% drop in gambling revenue over the last ten years and they aren’t about to concede more business to Illinois without a fight. The expansion is meant to keep Indiana residents in the state and try to maintain business from Illinois customers. The upcoming Hard Rock casino will be located just 18 miles from one of the proposed Chicago casinos sites. Indiana is hoping that it’s close enough to draw in visitors.

Currently, Indiana casinos have shuttle locations in Illinois that make it easy for people across state lines to make the trip. However, it will be hard to compete once there are several casino options right in and around Chicago. Illinois Casino Gaming Association Executive Director, Tom Swoik fears that all the construction and expansion will create a market that is saturated. With so much competition in close proximity, casinos will really have to ramp up amenities to draw in customers. Based on this new law, it is clear that Indiana isn’t willing to let Illinois take over the market without making some aggressive moves.

Looking Forward

This year has seen major changes in gambling laws and regulations across the country and there is every indication that the industry will continue to move at a rapid pace. For casinos, the real challenge will be delivering the same level of service as they focus on expanding. That means taking advantage of tools and technology, including software like Casino Schedule Ease, to help streamline processes. This will ensure that quality isn’t sacrificed in the name of building bigger and better facilities.

Keep visiting our blog to stay up-to-date with the latest happenings in the world of gambling and casinos.