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Gambling in the USA

Gaming Americas Weekly Roundup – June 8-14

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Welcome to our weekly roundup of American gambling news again! It was again an eventful week in the USA, despite the still-active virus attack.

Here, we are going through the weekly highlights of the American gambling industry which includes casino reopening, new partnerships, new tax regulations, and survey results. Read on and get updated.

Casino Reopening

Century Casinos has resumed the operations at its Mountaineer Casino, Racetrack and Resort on June 5. Prior to reopening, Mountaineer implemented comprehensive and state-specific safety and social distancing protocols as directed by the West Virginia Lottery.

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Colorado casinos are going to begin reopening on June 15 following a three-month shutdown due to COVID-19. Casinos in Cripple Creek will resume their operations on June 15. Gaming properties in Colorado’s other gaming hubs of Black Hawk and Central City will come back online on June 17.

Churchill Downs Incorporated (CDI) is in preparations to reopen Derby City Gaming, its historical racing machine property located in Louisville, Kentucky. All CDI properties will implement and practice the “CDI 360 Degree Approach to Safety,” which includes initiatives to facilitate social distancing, personal protection, and enhanced cleaning.

The Michigan Gaming Control Board has announced the minimum reopening guidelines for Detroit casinos. As per the guidelines, the capacity is limited to 15% of the established maximum capacity of casinos. Poker rooms will remain closed and other table games will only allow three players at one time.

New Partnerships

Philadelphia based Susquehanna International Group (SIG) has become the exclusive trading partner of Dignitas, the esports vertical of New Meta Entertainment (NME). The multi-year agreement will provide SIG with unique exposure to esports through Dignitas’ teams that compete in the world’s most popular games, including League of Legends, Counter Strike: Global Offensive, and Clash Royale.

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BetMakers Technology Group has secured the rights to manage on-course Fixed Odds betting at New Jersey race track Monmouth Park.

BetMakers, through its wholly-owned subsidiary BetMakers DNA (BDNA), has signed an Agreement with Darby Development LLC, the operator of Monmouth Park, and New Jersey Thoroughbred Horsemen Association for a 5-year deal that is subject to BDNA obtaining regulatory approvals from the New Jersey Division of Gaming Enforcement and the New Jersey Racing Commission.

Latest Surveys

During a time of casino closures and league shutdowns, Colorado bettors have shown their willingness to engage with the state’s newly regulated sports betting offer.

In a recent survey by ColoradoSharp.com, 75% of respondents said they would return to casinos “as soon as they’re open.” Also, Colorado has generated sports betting revenue of $25.5 million in May 2020. All signs point to a statewide boom for betting revenue when full-fledged gambling returns to The Centennial State.

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New Tax Regulations

A new VAT has come into force for foreign companies that provide digital services in Mexico. All companies that have businesses in the country must pay the 16% tax, despite not having residence there. The affected companies include betting operators, gaming platforms, as well as audiovisual entertainment and transport services.

New Launchings

Sky Racing World, the US-based subsidiary of Australian gaming and racing giant Tabcorp, has announced the imminent introduction of an Australian Greyhound Racing simulcast in the US. The product will be accessible to the audiences in the US on June 15.

New Gambling Compacts

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Oklahoma Gov. Kevin Stitt has announced that the federal government has approved the new gambling compacts between Oklahoma and two tribal nations – the Otoe-Missouria Tribe and the Comanche Nation. The new compacts authorize the tribes to offer additional forms of gambling, including sports betting, and to build new casinos closer to metropolitan areas.

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Aristocrat Gaming

Record Progressive Jackpot at Over $2 Million and Climbing Up for Grabs at Seminole Hard Rock Hotel & Casino Hollywood

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A record progressive jackpot of more than $2 million continues to climb on a $1 million Dragon Link slot machine by Aristocrat Gaming. The huge jackpot is up for grabs at Seminole Hard Rock Hotel & Casino Hollywood.

The $1 denomination Dragon Link slot is a single-site progressive (SSP) and is located in the high-limit slots area of the Hollywood casino, famous through the world for its iconic Guitar Hotel. The slot machine’s progressive jackpot increases independently from other Dragon Link slots at the Seminole Hard Rock Hotel & Casino Hollywood and elsewhere.

The jackpot is climbing by an average of $7,000 per day and is on track to become one of the largest slot machine payouts in Seminole Gaming history and the largest Dragon Link jackpot ever awarded. Players at Seminole Hard Rock Hollywood have a chance to be a part of jackpot history.

“It’s exciting to witness the Dragon Link jackpot grow to an unprecedented amount. The game has been a favorite since its release, and with this amazing prize now up for grabs, our players have the potential for a huge win,” said David Hoenemeyer, Chief Operating Officer of Seminole Gaming.

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“We are incredibly proud of the fanfare Dragon Link has amassed over the years, and this historic milestone reinforces player excitement for the brand. The Seminole Hard Rock Hollywood team have been incredible partners and huge supporters of our $1 million Dragon Link offering. We can’t wait to be a part of the celebration of this record-breaking jackpot,” said Kurt Gissane, Chief Revenue Officer for Aristocrat Gaming.

Since its debut at Seminole Hard Rock Hollywood in June 2021, Dragon Link has consistently drawn in players with its exciting high-denomination offering, which includes a $25 minimum bet and a $2,500 max bet. The casino-resort was the first in the world to feature the $1 million Dragon Link progressive, and today, it remains one of the most popular high-limit slot games available.

The impact of Dragon Link on the gaming landscape has been immense, cementing its status as a player favorite. While Aristocrat Gaming continues to push boundaries with innovative offerings, the latest jackpot at Seminole Hard Rock Hollywood represents a new milestone in gaming entertainment.

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CANJ

Atlantic City Casinos Help Raise $280,000 at the American Foundation for Suicide Prevention’s Walk on the Atlantic City Boardwalk

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The Casino Association of New Jersey (CANJ) has participated in the American Foundation for Suicide Prevention’s “Out of the Darkness Community Walk,” on Saturday, September 7, which raised more than $280,000. Led by team members from Hard Rock Hotel & Casino Atlantic City, employees from every casino property participated in Saturday’s walk.

“We are so very proud that every Atlantic City casino property has united with Hard Rock to raise awareness and funding for this important cause. We are extremely grateful that our efforts will help to make a difference in the lives of many and aid the American Foundation for Suicide Prevention’s with life-saving initiatives,” said Mike Sampson, General Manager at Hard Rock Hotel & Casino Atlantic City & AFSP NJ Chapter Board Member.

Hard Rock Hotel & Casino was the first Atlantic City casino to participate in the Out of the Darkness Community Walk over the last five years through Sampson’s leadership. The team at Hard Rock was driven to participate annually after the group’s personal experiences with loved ones who died by suicide.

Suicide is the 11th leading cause of death in the US. In 2022, nearly 50,000 Americans died by suicide. In New Jersey, suicide is impacting the state’s youngest residents. According to the most recent CDC data, 94 youth ages 10 to 24 died by suicide in 2021, making it the second leading cause of death among youth in that age range for the state. The National Institute of Health reports 20% of children ages 3 to 17 have either a mental or a behavioral disorder. Between 2008 and 2020, suicide rates for children ages 12 to 17 increased by 16%, according to the institute.

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“This show of force from across our casino properties demonstrates the industry’s commitment to this vital issue. Sadly, so many families across our city, state and country know a loved one that has died by suicide, and that is why it’s so important for us to come together to raise awareness and support each other,” said Mark Giannantonio, president of the Casino Association of New Jersey.

The American Foundation for Suicide Prevention is dedicated to saving lives and bringing hope to those affected by suicide, including those who have experienced a loss. AFSP creates a culture that’s smart about mental health through public education and community programs, develops suicide prevention through research and advocacy, and provides support for those affected by suicide.

“We are honored and grateful for the continued partnership with Hard Rock in the fight to prevent suicide and reduce the stigma around mental health. With their support, the Atlantic-Cape Walk has grown to be the Chapter’s largest walk, raising $7000 in 2017 to over $278,000 last year. Through Hard Rock’s leadership we have been able to engage the communities of Atlantic and Cape Counties to raise awareness, bring comfort to those who have lost someone to suicide and to raise critical funds for suicide prevention,” said Michael Lamma, AFSP Executive Vice President & Chief Operating Officer.

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Bally's

Bally’s Withdraws from Nittany Mall Casino Project

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Bally’s and SC Gaming announced the termination of their agreement to open and operate a Category 4 satellite casino near Penn State University at the Nittany Mall. Despite the split, the project remains on track to open in the first half of 2026.

The decision comes three years after the two companies agreed to develop a “mini casino” in what was previously a Macy’s department store at the Nittany Mall, located just five miles from Penn State’s campus. Originally, Bally’s wasn’t eligible to bid on the license when the auction was held four years ago. Ira Lubert, the sole owner of SC Gaming, was eligible due to his stake in Rivers Casino Pittsburgh, won the bid, and later partnered with Bally’s. The plan was that the gaming venue would bear Bally’s regional casino operator brand.

However, amidst Bally’s shifting corporate priorities, the agreement fell through. Lubert has made it clear to state regulators that he has the financial resources to advance the project on his own.

“As a part of the Pennsylvania Gaming Control Board’s application and approval process, I demonstrated to the Board my resources and capability to independently develop and operate this casino project without reliance on a third party, including Bally’s,” Lubert said in a statement.

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Lubert’s experience includes the development of the Valley Forge Casino Resort during the global financial crisis, and he holds a 3% stake in Rivers Casino Pittsburgh.

When Bally’s and SC Gaming decided to team up on the Pennsylvania mini casino three years ago, the project aligned with Bally’s prior ventures. Since then, however, Bally’s has rapidly shifted its focus toward larger, more expensive developments in major cities. The company’s new priorities include developing a permanent gaming venue in Chicago, which will be its most expensive project to date. Additionally, Bally’s is pursuing a license in the New York City area and still holds the operating rights for Tropicana Las Vegas.

While the future of the Tropicana site remains uncertain and there are no guarantees Bally’s will secure a downstate permit in New York, the Chicago venture alone demands significant attention. This suggests that shedding smaller projects, such as the Pennsylvania mini casino, could be a prudent move at this time.

In July, Bally’s agreed to be acquired by Standard General, the hedge fund that is the gaming company’s largest shareholder. This development wasn’t on the table three years ago when Bally’s agreed to work with SC Gaming on the Nittany Mall casino.

Prior to accepting the takeover offer from Standard General, some shareholders criticized Bally’s for becoming financially strained and focusing too heavily on expensive projects in Chicago, Las Vegas, and New York. Some investors argued that abandoning some or all of these projects could lead to cost savings.

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Although specific cost efficiencies from exiting the Pennsylvania mini casino partnership weren’t quantified, the move aligns with Bally’s new vision. With Chairman Soo Kim, the founder of Standard General, likely taking a larger day-to-day role in Bally’s operations, more cost-cutting measures may follow, but that remains to be seen. It is clear, however, that the Nittany Mall casino didn’t fit with Bally’s renewed strategic goals.

“The termination of the framework agreement aligns with Bally’s long-term strategic goals and allows the company to allocate resources towards other priorities. Bally’s remains confident in its ability to adapt and thrive in the ever-changing market,” the company said in a press release.

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