In a significant legal victory for the city, Norfolk has successfully fended off a $100 million lawsuit filed by Cordish Companies, the developer of Waterside District. The lawsuit claimed that Cordish should have had the first right to develop a casino in Norfolk and sought damages over the city’s casino plans with the Pamunkey Indian Tribe.

Norfolk’s Partnership with Pamunkey Tribe Prevails in Casino Lawsuit Appeal

The Court of Appeals of Virginia, in a 12-page ruling issued on February 27, upheld the lower court’s decision to dismiss Cordish’s lawsuit against Norfolk, Norfolk Redevelopment and Housing Authority (NRHA), and city attorney Bernard Pishko, as reported by The Virginian-Pilot. 

Cordish Companies, a Baltimore-based developer that revitalized Waterside in 2013, argued that it should have exclusive rights to develop and operate a casino based on its Waterside development agreement and lease.

Norfolk’s decision to move forward with the Pamunkey Indian Tribe for the HeadWaters Resort and Casino, located less than a mile from Waterside, triggered the legal dispute. Norfolk District Associates, a Cordish-owned LLC, sued in 2021, alleging breach of contract and an active attempt to exclude Waterside from casino site considerations.

The case was initially dismissed by a Richmond Circuit Court judge in 2022, leading Cordish to appeal. In the ruling from February 27, the Court of Appeals affirmed the lower court’s decision, stating that the 2013 lease agreement did not obligate the city and NRHA to use Norfolk District Associates to develop a casino.

Judge AtLee: Casino Deal Unenforceable

Judge Richard Y. AtLee, representing the three-judge panel, explained that they concluded section 10.2.1 of the agreement could not be enforced because it was essentially an agreement to agree, and the agreement did not allow for a casino. This, he said, supported the circuit court’s decision to uphold the demurrers.

Cordish Companies refrained from providing a comment regarding the ruling. In contrast, city attorney Bernard Pishko conveyed satisfaction, expressing that they were pleased with the court’s confirmation that Cordish and John Lynch had filed the lawsuit against the city, city attorney, and NRHA without a basis.

The appeal process included two rounds, with the second round featuring oral arguments in December 2023 after one judge had to recuse themselves due to a conflict of interest.

The judges who participated in the final round of oral arguments and made the ruling were AtLee, Haley, and Dominique A. Callins, with Causey recusing.The legal victory solidifies Norfolk‘s position in moving forward with the HeadWaters Resort and Casino alongside the Pamunkey Indian Tribe.

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The ambitious Las Vegas Sands casino and hotel project in Nassau County received temporary permission to move forward as the Appellate Court issued a stay on a recent ruling that annulled the county’s approval of the venture. A later hearing will decide the project’s fate and will be instrumental in determining its viability.

Rising Public Concerns Culminated in Legal Action

Sands Nassau County’s legal setback arose from a lawsuit filed by Hofstra University, located adjacent to the proposed $4 billion casino property. The university argued that planning officials and lawmakers failed to provide sufficient notice for public meetings and environmental reviews before approving a 99-year lease for the Sands project.

A 9 November court decision voided the existing lease and mandated that Nassau County planning officials restart the application process, including new hearings with the county legislature. The ruling represented a significant victory for Hofstra University as it expressed eagerness to contribute to the planning and protect the community from potential environmental risks.

Critics of the casino project have raised concerns about potential negative impacts on the local community, including increased traffic and crime, decreased property values, and disruptions to nearby neighborhoods. Hofstra University initiated the lawsuit in April, citing concerns about inadequate public engagement and environmental assessments, mirroring other controversial New York casino projects.

Casino Projects Remain a Contentious Issue

The potential significant delays forced Las Vegas Sands to act quickly and turn to the New York Court of Appeals. The appellate judge granted a stay and scheduled a hearing for 21 November in Brooklyn. Hofstra representatives must present compelling reasons why the lower court’s order should remain in place while Las Vegas Sands defends the project.

County Executive Bruce Blakeman, an avid supporter of the Sands Nassau project, was optimistic, noting that a definitive court ruling would clear all doubts about the development’s legal status. He reaffirmed that the casino resort would bolster the local economy with well-paying permanent employment and tax relief for residents.

We are grateful that the Appellate Division granted a stay of the lower court’s decision, and we’re confident the lower court’s ruling will be overturned.

Bruce Blakeman, Nassau County, New York County Executive

The fate of the Sands Nassau County project now hinges on the upcoming hearing, as stakeholders on both sides prepare to present their arguments regarding the proposed casino’s impact on the local community and the procedural aspects of the approval process. The increased scrutiny should help ensure that casino developments remain socially responsible and can mitigate gambling’s negative societal impact.

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An error by a federal judge soon after sportsbooks launched in Florida lawmakers on the budget committee along with recipients of state funding as well as Gov. Ron DeSantis have scored a rather large victory in court – worth at least $2.5 billion and as much as $6b by some estimates.

A three-judge panel on the D.C. Circuit Court of Appeals has rejected a challenge to the 2021 state/tribal gaming compact in Florida that authorized the Seminole Tribe there to offer mobile sports betting. The practice was banned soon after books opened for business in 2021 and online sports betting in the state has been deemed in violation of the law since that time.

Sports Betting Could Open Back Up in Florida Right Away

However, that could change at any time with the new ruling. Sportsbetting could return to Florida virtually overnight.

In a nutshell, the judges decided that any conflict with the opposing party needed to be settled under state law as none of the assertions made actually had anything to do with federal law. So, while it may appear to be a landmark decision, it was really more of a venue correction than anything else in the final analysis and an appeal by the plaintiffs could send the industry right back into a death spiral at any time with a challenge to the decision and an injunction.

The Seminole Tribe applauded the decision but stopped short of saying it would resume sports betting right away.

A lawyer representing the casinos that had challenged the compact pointed out what the plaintiff side saw as nonsensical – according to Hamish Hume, the court had somehow “recognized” that federal gambling laws “cannot authorize gambling off of Indian lands, but then upheld a compact that purports on its face to do exactly that.”

The legal counsel stated, “We respectfully disagree with that decision, and are evaluating our possible next steps.”

The federal appeals court’s reversal of a lower court judge’s order was personally and politically important for Florida Governor Ron DeSantis because he personally lobbied lawmakers to pass the compact in 2021.

A spokesman for the governor stated: “While we are not surprised the lower court’s perplexing ruling was unanimously overturned, this is great news for Florida,” Mahon said in an email to Politico. “We will continue working with the Seminole Tribe of Florida to ensure the success of this historic compact — the largest gaming compact in US history.”

A spokesman for the Seminole Tribe said of the most recent decision: “The Seminole Tribe of Florida is pleased with today’s unanimous decision. It is a positive outcome for the Seminole Tribe and the people of Florida and for all of Indian Country. The Tribe is fully reviewing the decision to determine its next steps.”

New Compact Also Authorizes Table Games

In addition to authorizing sports betting the “new compact” also allowed the tribe to offer table games such as craps and roulette to its existing slots casinos and to build at least one more casino on its reservation the Hollywood area which already has a Hard Rock Hotel & Casino.

In the ruling that blocked implementation of the compact, D.C. District Judge Dabney Friedrich decided the compact was beyond what the laws allowed because it let people place sports bets anywhere in the state – which could be a violation of federal law that govern gambling on Tribal lands.

The impetus of the adverse decision was a pair of lawsuits brought by an anti-gambling group active in Florida, another that focuses primarily on the southern part of the state and casino competitors. Plaintiffs had sued U.S. Secretary of the Interior Deb Haaland, who didn’t block the compact but instead took no action and allowed it to automatically come into effect after some time as prescribed by law.

The erring judge also determined that it would take a new citizens’ initiative to authorize sports betting under the premise that voters passed a law in 2018 that required any expansion of casino gambling without a citizen’s initiative – that law was supported by both Disney Corp and the Tribe.

The Tribe and DeSantis relied on the legal theory that bets processed on servers physically situated on tribal lands were indeed placed “on the Reservation”. The Trump-appointed judge called that a “fiction” and stated that: “When a federal statute authorizes an activity only at specific locations, parties may not evade that limitation by ‘deeming’ their activity to occur where it, as a factual matter, does not.”

The panel of D.C. appeals court judges in essence said that neither argument mattered in this instance: “Whether it is otherwise lawful for a patron to place bets from non-tribal land within Florida may be a question for that State’s courts, but it is not the subject of this litigation and not for us to decide.”

“We hold only that the Secretary’s decision not to act on the Compact was consistent with <federal law>,” wrote Wilkins who added, “We express no opinion as to whether the Florida statute ratifying the compact is constitutional” under Florida law.

The balance of arguments raised by the litigants against the legality of the compact was also summarily dismissed as a ‘matter for state courts to decide’.

Source: DeSantis scores big legal win upholding $2.5B gambling deal with Florida tribe, Politico, June 30, 2023

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As wildfires rage on, spreading smoke and exacerbating the already poor air quality across the East Coast, Casino Workers Against Smoking Effects (CEASE) in New Jersey has raised concerns about the parallel between the outdoor environment and their daily workplace conditions.

Legislative Support Grows to Protect Casino Workers from Secondhand Smoke Dangers

Casino employees are forced to endure the dangers of secondhand smoke while working just a few feet away from smokers. Typically, they look forward to breaks as an opportunity to breathe fresh air outside. Unfortunately, due to the current air quality, stepping outside provides little respite from the unhealthy conditions they face indoors.

The impact of allowing indoor smoking in casinos is comparable to the effects of wildfires hundreds of miles away on the ability of individuals to breathe clean air on the Atlantic City Boardwalk. It has been nearly two years since smoking was reintroduced inside Atlantic City casinos, and CEASE continues to appeal to elected officials for legislation that will close the casino smoking loophole and prioritize the health of workers and non-smoking guests.

The New Jersey legislature has shown significant support for addressing this issue. S264 and A2151, legislation aimed at closing the casino smoking loophole and safeguarding the well-being of casino workers, have garnered an impressive 83 cosponsors in total. Of these, 26 cosponsors are from the Senate, while 57 are from the Assembly.

Legislative Committees Rally Behind Casino Workers’ Fight for Smoke-Free Environments

CEASE members testified before lawmakers in March during a hearing held by the Assembly Health Committee and the Assembly Tourism, Gaming, and Arts Committee. They shared their firsthand experiences of working in a smoke-filled environment for extended periods and the severe health consequences they have endured.

Furthermore, in February, casino workers and their supporters, including the United Auto Workers and representatives from various public health organizations, testified before the Senate Health, Human Services, and Senior Citizens Committee. Both the Senate and Assembly committees have demonstrated majority support for the proposed legislation.

Governor Phil Murphy of New Jersey has consistently expressed his intention to sign the legislation once it reaches his desk. He believes that prioritizing the health of individuals is the right course of action and that it will not hinder Atlantic City’s thriving tourism industry, emphasizing the city’s unique assets, including its oceanfront location.CEASE, an organization representing thousands of casino dealers and frontline gaming workers, strives to eliminate smoking from their workplaces permanently. The group has chapters actively working towards closing the casino smoking loophole in Pennsylvania, Rhode Island, Kansas, Virginia, and their home state of New Jersey.

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Steve Wynn, the former CEO of Wynn Resorts, may have to defend himself in court once again.

An earlier case against the real estate developer accused him of lobbying the Trump administration on behalf of China and asked him to register under the Foreign Agent Registration Act. According to the allegations, Wynn had asked ex-POTUS Donald Trump to deport Guo Wengui, a known dissident, back to his home country.

The eventual federal court ruling stated that the casino magnate does not have to register as a foreign agent. Even if Wynn used to have ties with the Chinese government, they must have ended in 2017, US District Judge James E. Boasberg said.

However, the case is being revived once again as the US Government seeks to appeal this decision. The government claimed that Boasberg’s decision sets a dangerous precedent as fewer people would be inclined to register under FARA if they have stopped their work for another country.

In addition, Steve Wynn was still a finance chairman of the Republican National Committee at the time of the Guo situation.

Wynn Asked Trump to Deport Guo

Guo Wengui is a Chinese billionaire who fled the country in 2014 after coming under fire for alleged participation in corruption. He blasted the allegations for being untruthful and claimed that they are the result of corruption within the government.

Guo was sentenced to death in China. According to the Chinese government, he is guilty of corruption, stock market manipulations and abandonment of his post amid the pandemic.

During his exile in the US, Guo became the target of Sun Lijun, former vice minister of China’s Ministry of Public Security. According to the previous lawsuit, the lobbyist Elliot Broidy introduced Wynn to Sun. As a result, Wynn decided to help the Chinese diplomat get Guo back to China, the allegations say.

Some speculate that Wynn might have sought to maintain а favorable relationship with the Chinese government, hoping that this would benefit his business in Macau. The lawsuit claimed that Wynn contacted Trump personally, dined with him and even contacted him on the phone multiple times, discussing the Guo matter.

This is not the only case against Wynn and his company to be brought up in recent times. Last year, he was accused of intimidating Angelica Limcaco, who testified against him and his company and claimed that he raped one of her salon employees in 2005.

The latter case, however, was dismissed as unviable and outdated.

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The Press of Atlantic City reported that the Atlantic City gaming industry in New Jersey is facing a high-stakes legal battle over casino taxation. 

Atlantic City PILOT System Dispute Goes to Appeal

The dispute centers around the state’s property tax system, known as PILOT. The original system-based tax was due on three data points: gross gaming revenue, number of hotel rooms, and acreage, which included online gaming revenue. 

However, the casinos successfully lobbied to exclude online gaming from the program, citing the COVID-19 pandemic’s impact on their business. A judge in Atlantic County ruled in August that the state’s legislation on PILOT had been advanced to assist an industry that was actually experiencing a resurgence and ordered a return to the original formula. The state is appealing the decision.

The amount at stake is at least $55 million, which would be split among Atlantic City, its school district and Atlantic County. Under the new regulations, Atlantic County estimates it would receive $19.3 million less over the last five years of the PILOT program, set to end in 2026, than it would have if the original formula had stayed in place. 

The state argues that the door was left open for legislators to change the PILOT formula, as a 2018 agreement with Atlantic County did not specify the formula as currently written. The county, in response, called this implausible. 

If the state’s interpretation prevails, it could have an adverse impact on some county-funded health programs, according to Atlantic County Executive Dennis Levinson.

Liberty & Prosperity 1776 Inc. Sues New Jersey Over PILOT Preferential Tax Treatment

In a separate legal action, conservative non-profit Liberty & Prosperity 1776 Inc. sued the state, arguing that the state constitution bars preferential tax treatment. The state is appealing against a ruling that the amended PILOT serves a public purpose. 

According to the state’s appeal, the new law diverts the Investment Alternative Tax revenue, which could have been left unused, to Atlantic City. This action is intended to prevent a detrimental tax increase for the industry.

An increasing share of online gaming revenue was not going to the casinos but to their tech partners, so legislators removed internet wagers from the formula, according to the state. However, the parent companies of Atlantic City casinos had been spending billions of dollars to acquire online gaming firms.

Should the state lose the legal battles, the gaming industry could face a return to higher tax bills. Atlantic County and the city are counting on the extra funds to boost services and their struggling economy.

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