The New York State Gaming Facility Location Board has extended the deadline for downstate casino bids to June 27, 2025. This decision comes even as a bill proposing an earlier deadline of August 31, 2024, awaits Governor Kathy Hochul’s signature.

New Timeline for Downstate Casino Bids

On June 27, 2024, the Gaming Facility Location Board unanimously approved the new timeline. The revised schedule requires all applications to be submitted by June 27, 2025. Following this, Community Advisory Committees (CACs) will form to begin their statutory evaluations. CACs must vote on their respective projects by September 30, 2025, after which approved applicants will submit additional materials, including proposed tax rates, for further evaluation.

The board plans to make its decisions by December 1, 2025, with the New York State Gaming Commission issuing licenses by December 31, 2025. This extended timeline is designed to ensure that all legal and procedural requirements are met, giving communities ample opportunity to voice their opinions and allowing applicants to finalize necessary zoning and environmental approvals.

Conflict with Pending Legislation

Senator Joe Addabbo’s bill (S9673A), passed through the House and Senate in early June 2024, proposes an August 31, 2024 deadline for bid submissions. However, board members expressed concerns that this deadline is unrealistic. Board chair Vicki Been stated, “The hope would be that our reasoning will be helpful to the governor,” indicating the board’s belief that a rushed deadline would not be practical given the complexity of the bidding process.

Bidders must complete zoning changes and environmental impact studies before their proposals can be reviewed. Currently, sites like Bally’s Bronx proposal and Steve Cohen’s Queens proposal require rezoning, as they are designated as parkland. Both developers are lobbying local and state boards for these changes, but the approvals are not yet in place.

Interested Bidders and Proposals

There are 11 bidders interested in the three available casino licenses for downstate New York. The proposals and their respective developers and operators include:

• Avenir: Silverstein Properties (Developer), Greenwood Gaming (Casino Operator) – Manhattan
• Bally’s Links at Ferry Point: Bally’s Corporation (Developer and Casino Operator) – The Bronx
• Caesars Palace Times Square: Caesars Entertainment, SL Green, Roc Nation (Developers), Caesars Entertainment (Casino Operator) – Manhattan
• The Coney: Thor Equities, Legends Entertainment, the Chickasaw Nation, Saratoga Casino Holdings (Developers), Saratoga Casino Holdings (Casino Operator) – Brooklyn
• Freedom Plaza: Soloviev Group (Developer), Mohegan Gaming (Casino Operator) – Manhattan
• Metropolitan Park: Steven Cohen (Developer), Hard Rock International (Casino Operator) – Queens
• MGM Empire City: MGM Resorts International (Developer and Casino Operator) – Yonkers
• Resorts World New York City: Genting Group (Developer and Casino Operator) – Queens
• Sands New York: Las Vegas Sands (Developer and Casino Operator) – Long Island, Nassau County
• Saks Fifth Avenue: Hudson’s Bay Company (Developer), TBD (Casino Operator) – Manhattan
• Wynn New York City: Related Companies, Oxford Properties Group (Developers), Wynn Resorts (Casino Operator) – Manhattan

Community and Regulatory Considerations

In addition to securing community support through CACs, applicants must navigate the State Environmental Quality Review Act (SEQR) process. This extensive review is essential to identify and mitigate any adverse environmental effects of the proposed projects. The City of New York has updated its zoning code to permit licensed commercial casino gambling, but some potential applicants still face additional zoning hurdles.

The board’s decision to extend the bid deadline aims to provide a fair and thorough evaluation process, ensuring that all proposals meet the required standards and that the community’s voice is heard.

Source:

The New York State Gaming Facility Location Board (PDF), June 27, 2024. 

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The efforts of the leading gaming and hospitality company, Cherokee Nation Entertainment (CNE), toward securing a casino gaming license for Pope County from the Arkansas Racing Commission (ARC) continue. Earlier this week, the company confirmed it resubmitted its application with the gambling regulator. Ultimately, CNE is after securing a casino gaming license that would permit the development of a massive project called Legends Resort and Casino Arkansas.

CNE’s project has a price tag of more than $300 million. The ambitious project, planned for development in Pope County, is expected to create thousands of direct and indirect jobs. At the same time, Legends Resort and Casino is expected to generate $5 billion in economic stimulus to Arkansas for the first decade of operating.

The proposed project is expected to offer a hotel with 200 luxury rooms, as well as additional amenities, including a spa, a pool and spaces that can be used for special events, concerts or meetings. Not unexpectedly, Legends Resort and Casino is expected to offer supreme gaming entertainment with its 50,000-square-foot casino floor. The venue would become a home to a sportsbook, a poker room, as well as nearly three dozen table games and 1,200 of the most popular slot games.

“Legends Resort & Casino Arkansas, operated by Cherokee Nation Entertainment, represents an over $300 million investment that will provide a welcomed economic anchor for Pope County, the River Valley and the state of Arkansas,“

reads a statement released by Cherokee Nation Entertainment

The Company Is Ready to Commence Construction

Mark Fulton, CNE’s president, spoke about the importance of collecting community feedback. He explained that the company’s project is ahead of the competition considering that its team “listened to the community” and also engaged in voluntary work. “Once the casino license is awarded, we expect to commence the 18-month construction process after 60 to 90 days of permitting and pre-construction work,” added Fulton.

Finally, CNE’s president confirmed that the company is ready to meet its obligations under the development agreement with Pope County once the license is awarded.

“For the past five years, we have been laying the groundwork for this one-of-a-kind, shovel-ready commercial casino resort and becoming engrained in the local community.“

Chuck Garrett, CEO at CNE

Chuck Garrett, CNE’s CEO, added that the company is ready to commence the construction of Legends Resort and Casino. He spoke about CNE’s efforts in securing a Large-Scale Development permit from the City of Russellville.

Additionally, Garrett acknowledged the importance of purchasing 325 acres of land and the support for the company from Pope County leaders. Finally, the CEO said that CNE is looking forward to securing the casino license from the Arkansas Racing Commission.

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US hospitality giant Hard Rock International has denied rumors that it is planning to make a bid for the Australian casino giant The Star Entertainment Group. The speculations ran wild after some reports that a consortium of parties including Hard Rock’s Pacific branch had supposedly expressed interest in the embattled Australian company.

Hard Rock International to Take Legal Action Amid Acquisition Speculations

In a recent statement, Hard Rock International noted it is perplexed about these claims. The company emphasized it has not authorized any discussions or negotiations in connection with a potential acquisition of The Star, reported The Australian. 

Hard Rock International further added that it is going to take legal action to protect the reputation of its brand as no third parties have been authorized to associate Hard Rock with a potential bid for The Star. The company also highlighted that only official company communication channels should be utilized for accurate information. 

The Star Entertainment Group announced earlier that external parties have indeed expressed interest in acquiring the company. However, The Star noted that there were no substantive discussions in connection with the proposal. 

Still, The Star provided information that part of the consortium that expressed interest was a local partner affiliated with Hard Rock International.

After the initial announcement from The Star, the company shares surged but following the statement dismissing the association of Hard Rock International with any potential bid drove the share price down again.  

The Star Faces Scrutiny: Second Probe Into Casino License Suitability

The Star has been embroiled in a long-lasting investigation into violations of anti-money laundering rules and ties with Asian junket operators. The company is still under scrutiny from Australian gambling regulators.

The company is currently facing a second investigation into its suitability to hold a New South Wales casino license. This is due to governance and compliance issues, which were uncovered during the first Bell report. The initial investigation into The Star led to many implications for the gambling operator, including a record fine.

Now the company has six months to prove its suitability and prevent permanent license loss. According to plans, The Star will implement remediation measures. The Bell Two inquiry will focus on financial obligations and remediation efforts with hearings held in camera. The results will help the New South Wales Independent Casino Commission (NICC) make a decision regarding the future of the embattled operator.

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Recently, MGM Resorts’ chief executive officer, Bill Hornbuckle, was asked about any change of heart following the company’s latest public statement on the acquisition bid topic. His answer led to a 4% drop in Entain’s shares.

Last fall, it was speculated that MGM Resorts would possibly make a new acquisition bid for global gaming giant Entain following the decrease in the latter’s share price in 2023 along with the ousting of now former chief executive officer Jette Nygaard-Andersen at the end of the year. 

The S&P 500 global gaming and entertainment company that features national and international locations initially said no to an acquisition bid in 2021 that gave the business an enterprise value of £8.1 billion ($10.17 billion).

That amount currently stands for an important premium on the company’s market cap of £6 billion ($7.53 billion).

“It’s About Product, Product, Product, and Focus”

The CEO replied that their main focus would be on product in the upcoming months, leaving large-scale mergers and acquisitions to the side.

Hornbuckle explained that, while attending the ICE event in London last week, he met with Stella, their partner, and talked over the importance of making sure “everyone’s focus is on BetMGM.”

He emphasized that 2024 will be a critical year for everyone, ”So, it’s about product, product, product, and focus.” His comments immediately caused Entain’s share price to fall close to 4% down to £9.22 ($11.58) prior to slightly recovering to £9.84 ($12.53).

2024, an “Investment Year” for BetMGM

In December 2023, BetMGM’s chief executive officer, Adam Greenblatt, spoke during an investor presentation, calling 2024 an “investment year” as the joint venture was trying to regain the market share that it had lost while improving its product.

Hornbuckle agreed that 2024 would be “a reinvestment year,” emphasizing the need and desire to get their product “in a better and different shape” and adding they would like additional parlays. 

“Obviously,” he continued, “the acquisition of Angstrom by our partner will be a big add to that. We’ll be able to stick out more product. We’ll have more confidence in it.”

The CEO explained that their focus will fall on baseball in the next months, with expectations to hit soccer in 2025 while putting many of their product differentiators to use in the meantime.

For the spring, Hornbuckle also discussed their plan to have a single wallet in play. As for when they will begin to make some cash, 2025 seems to be on the horizon. 

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Global gambling giant Entain is reportedly exploring a bid to secure direct access to a free-to-air TV channel targeting Australian audiences. The move aims to broadcast racing events, explore synergies, promote gambling products, and challenge the monopoly of Tabcorp-owned Sky Racing. Entertain’s previous broadcasting experience should provide substantial benefits, helping leverage a potential agreement.

A recent Australian Financial Review report revealed that Entain, which owns prominent wagering brands like Ladbrokes and Neds, approached leading commercial networks, including Seven, Nine, and Ten, a few months ago. The proposal involved inquiring about the potential creation of a new platform for broadcasting greyhound, harness, and thoroughbred racing. 

Industry insiders claim Entain offered around $8 million per year to rent a channel, with Network Ten reportedly being the closest to a deal. While Entain has not finalized any agreement, the move signals an attempt to diversify broadcasting options. If successful, the model would be based on the Racing.com channel, initially a joint venture between Seven Network and Racing Victoria.

However, managing a dedicated free-to-air channel requires securing racing rights. Entain has previously struck a 25-year deal with New Zealand TAB, aiming to expand the audience and provide NZ racing with a more substantial presence in Australia. Success with the company’s newest media venture in the region would break Tabcorp’s control over the broadcast of state-based racing and hopefully bring significant dividends.

A Successful Deal Could Bring Long-Term Benefits

The multichannel deal for racing could be a strategic move for betting companies and TV networks to navigate an anticipated crackdown on online gambling advertising. A parliamentary inquiry recommended a complete ban on internet gambling ads, contributing significantly to media companies’ revenues. Diversified marketing options should shield Entain from such a crackdown, improving marketing opportunities.

Entering the free-to-air TV space should give Entain a significant edge in the Australian market. Tabcorp’s Sky Racing Channel, which offers content similar to Entain’s preferred offerings, is only available via Foxtel and the Kayo streaming service. A free-to-air entry by the gaming giant would significantly disrupt the current status quo, reaching broader audiences.

Exploring a multichannel deal is part of Entain’s broader reorganization initiatives. The company is undergoing a significant strategic realignment, accompanied by ongoing high-level management reshuffles. This newest expansion into broadcasting aligns with Entain’s ongoing efforts to diversify its operations and strengthen its position in the evolving wagering and broadcasting landscape.

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Capital Research and Management Company, a subsidiary of The Capital Group Companies, Inc., reduced its shares in Kindred Group. On Wednesday, Kindred confirmed that it received notification about the reduced number of shares and voting rights by Capital Research and Management Company.

Per the notification, as of January 22, 2024, Capital Research and Management Company now holds 8.63% of shares and voting rights in Kindred. This strategic move comes at a time when La Française des Jeux (FDJ) announced a $2.5 billion bid to acquire Kindred recently. With the proposed strategic bid, FDJ seeks to propel its global presence, after it already has established strong footprint across Europe.

Considering FDJ’s announcement, Kindred’s shares skyrocketed recently. As of January 22, 2024, the company’s shares were up 17% on the Stockholm Nasdaq.

Throughout the years, Capital Research and Management Company’s stake in Kindred varied. An all-time high share and voting rights in Kindred, some 15.33%, were held by the company back in October 2021. More recently, Capital Research and Management Company reduced its stake in July 2022 to 10.86%.

“Kindred Group plc hereby announces that it, on 23 January 2024, has received a notification of major holdings from The Capital Group Companies, Inc., a company with its registered office in Los Angeles, USA. The notification relates to a reduced number of shares and voting rights in Kindred by Capital Research and Management Company, a subsidiary within The Capital Group Companies, Inc. which holds the relevant position in Kindred Group,“

reads a statement released by Kindred Group

Preliminary Q4 Results Point To Growth in EBITDA and Revenue

Amid the announced takeover bid from FDJ, Kindred released its preliminary Q4 2024 results, pointing to an increase in revenue and uptick in EBITDA. In total, Kindred’s revenue for the fourth quarter hit £312.9 million ($398 million), a result that marked an increase of 2% year-over-year.

On the other hand, underlying EBITDA for the period grew as well, hitting £56.8 million ($72.2 million). In contrast, for the fourth quarter in 2022, underlying EBITDA halted at £39.1 million ($49.7 million).

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Less than one month after the grand opening of the Fontainebleau Las Vegas resort, the latest chapter in the 70-year history of the iconic Fontainebleau brand, chief operating officer Colleen Birch and chief marketing officer Shane Smith have announced their voluntary resignations. 

Three High-Profile Exits So Far

The two join the resort’s now former senior vice president of casino operations, Michael Clifford, who made a similar announcement some two weeks ago. 

Through a statement issued by a resort representative, Fontainebleau Las Vegas thanked COO Birch and CMO Smith “for their contributions” while wishing them well in the future. 

The ex-CMO joined the resort at the start of 2023 thanks to his rich expertise in casino and development which included two years at Witkoff, the real estate company that temporarily owned the unfinished property prior to Fontainebleau Development. 

There, the Stanford graduate showcased his skills in development and strategy. Smith was also vice president, marketing & customer experience at The Palazzo at The Venetian and he spent two and a half years as chief of staff and chief marketing officer at The Cosmopolitan of Las Vegas.

Birch was appointed COO for the resort in November 2022. In the past, she was The Cosmopolitan of Las Vegas’ senior vice president of revenue optimization. She also took the position of revenue management director at Fontainebleau Las Vegas for ten months in 2008.

Ushering in “a New Era of Luxury Hospitality”

The $3.7 billion North Strip property with 67 stories is expected to usher in “a new era of luxury hospitality” for Fontainebleau Las Vegas. 

The casino spreads across 150,000 square feet and is joined by Savor Fontainebleau Las Vegas’ selection of “delectable restaurants, bars, and cafes, fit for any variety of craving or the most memorable occasions,” vibrant entertainment options and nightlife, and over 3,600 hotel rooms and suites.

The official opening date of the resort “built upon a legacy of sublime beauty, unparalleled service, and timeless design” was set for December 13, 2023, after it obtained the necessary approval from the Nevada Gaming Commission. 

The original concept of the resort was announced in 2005, right after Florida-based developer Jeff Soffer bought the historic Miami Beach property.

Last November, Nevada Gaming Control Board’s chairman, Kirk Hendrick, expressed the Board’s excitement to finally witness the project that has taken two decades to finally come to life. 

He added the resort would bring shine and glamour to a part of the Vegas Strip that has not been busy in a while. 

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However, Japan’s Ministry of Land, Infrastructure, Transport, and Tourism is having none of it, as the government has qualms about the feasibility of the project as submitted by Nagasaki.

Nagasaki Misses the Mark with Government

Kyushu Resorts Japan and Nagasaki prefecture will have to go back to the drawing board or fold their bid altogether. Government officials have expressed open worry over the nature of financing of the proposed projects.

There seems to be an unsatisfactory level of commitment outlined in the letters that are supposed to show support and outline the terms of funding. They are customary and usually enough to convince government officials to indeed agree and proceed with the further stages of a project.

As such, the panel that weighed in on the decision said that they still doubted whether the proceedings could move on due to this lingering fear of lack of funds. It’s not just the funding, though, as the panel is similarly dubious of the chosen companies that will supposedly operate the project.

Casinos Austria International was the only participant who had a hands-on approach in such matters, and it was unlikely that CAI alone would make up for all the participants in the Kyushu Resorts Japan consortium. More worryingly, CAI’s investment is smaller than that of keener but less experienced parties.

Lack of Expeirence and Other Concerns

There was also outlined fear about how the proceeds from an operational casino resort would be divvied up, as too many investors – as is the case with Nagasaki’s bid – would mean that there will be many parties that are eager to recoup their investment overlook other important aspects, such as eliminating the harmful influence of casinos.

Nagasaki still has plenty of time to consider a revised bid, although securing more investors – or the right investors as it were – and eliciting stronger commitment would prove the most difficult part.

Still, overblow fears of recession and a flagging economy may embolden overseas companies with plenty of experience and cash on hand to move more strongly on Japan, and use the near-miss Nagasaki just had with the government to rally and potentially host one of the casino resorts – a total of three to arrive in the year over the next decades or so.

Osaka in the meantime has been gaining steadily with its construction and is likely to arrive on time.

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The casino industry is wary of the future of Bally’s Bronx casino project following Kristy Marmorato’s triumph in the Bronx. The Republican, who has previously expressed her opposition to the project, won the Bronx seat at the New York City Council.

Marmorato dealt a historic defeat to her opponent, the incumbent District 13 representative Marjorie Velasquez, turning a Bronx seat red for the first time in decades. Unfortunately for Bally’s, Marmorato isn’t as supportive of its casino project as Velasquez.

Velasquez supported the casino operator’s project, believing it to be a potential boon to the local economy. Marmorato, on the other hand, sees the planned casino as a potential nightmare for the well-being of the local people.

According to the newly elected District 13 representative, the Bronx is one of the New York areas with the highest asthma rates. As a result, the traffic a casino can generate could be an “environmental nightmare.”

Marmorato will step into the office in January and could turn out to be be a major setback for Bally’s plans.

The NY Casino License Race Continues

The Ferry Links Golf Course is a famous property that was leased to the Trump Organization, which enhanced it by developing a large clubhouse and an events facility. Bally’s current plan is to also construct a casino resort at the property, should it win one of the three downstate New York licenses currently on the table.

Bally’s secured the transfer of the lease in a $60 million deal with the Trump Organization a few weeks ago, allowing it to proceed with its pitch.

The 20-year lease was issued to the Trump Organization in 2015 but caused controversies in the wake of the Capitol riot. The New York Parks Department now hopes that Bally’s would be a suitable successor to the property and will take good care of it.

Last month, the Soloviev Group updated its proposal in hopes of winning one of the three casino licenses. The group published an updated plan that featured over 500 permanent affordable housing units, hoping to make its bid more appealing.

Speaking of New York, the state became the first US jurisdiction to surpass $2 billion in monthly betting handle after hitting a staggering $2,006,823,408 in September.

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Failed merger negotiations may be behind DraftKings’ last-minute bid to acquire PointsBet USA and derail an already negotiated deal with Fanatics, according to a media report.

Block Fanatics from New York Entry

DraftKings chief executive officer Jason Robins is determined to “level the score” with Fanatics boss Michael Rubin, still holding a grudge after Rubin walked away from an advanced $48 billion merger negotiations in 2021, The New York Post claims based on unnamed sources.

DraftKings submitted a $195 million last-minute bid to acquire PointsBet USA, derailing the $150 million deal reached a month earlier with Fanatics, as well as Rubin’s ambition to establish Fanatics as a major player in the sports betting space.

“DraftKings already has scale,” claims one of the media sources, explaining that the rationale behind outbidding Fanatics is to block Fanatics from acquiring PointsBet’s online sports betting license in New York.

“If you want to be a player you have to be here,” the source added in terms of market presence in New York as “it is the largest state [with legal sports betting at the moment as] California, Florida and Texas are not offering sports betting.”

Australian-based PointsBet holds one of nine online sports betting licenses in New York and the state has no plans to increase the number of available licenses any time soon.

Speaking to CNBC earlier this month, Rubin said that DraftKings’ bid was more about derailing Fanatics’ bid and delaying its “ability to enter the market,” rather than improving DraftKings’ market position and size, showing that DraftKings is seriously concerned with Fanatics as a potential competitor.

As the operator with the second-largest market share nationwide, DraftKings has no other competitor even close to its 29% market share, and PointsBet’s US assets would not help it significantly cut the distance with the leader, FanDuel with 45%.

No Personal Motives Behind the Bid

Representatives from Fanatics declined to comment on the story when asked by the reporting media, while a DraftKings spokesman dismissed claims that there are any other motives besides the potential for “significant synergies and financial rationale,” as well as “interesting product and technology capabilities.”

To suggest that there is an ulterior motive that is personal and not business related is irresponsible and not grounded in reality.

DraftKings spokesperson

Acquiring PointsBet USA would be of significant importance to Fanatics as it would open up cross-market opportunities for its customer base buying official sports team gear, on top of the access to the market in New York, while for DraftKings the acquisition brings potential risks.

PointsBet is reportedly looking into the proposal and will likely force a “hell or high water” merger agreement, meaning a deal with or without regulatory approvals, while the proposal tabled by DraftKings is subject to acquiring regulatory approvals.

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