New York state lawmakers Sen. Joseph Addabbo and Assemblyman Gary Pretlow have submitted a bill, which aims to expedite the process of awarding casino licenses in the New York City area. 

New Bill Proposes Earlier Deadline for NYC Casino Licenses to Boost State Revenue

The proposal stipulates that all casino license bids must be submitted by July 31, 2024. The bill also requires the New York State Gaming Commission to approve three licenses by March 31, 2025. As a comparison, according to the current schedule, licenses have to be awarded by December 31, 2025. 

Addabbo and Pretlow submitted the new bill as they consider the current timetable inefficient, reported The New York Post. They further added that it is delaying economic benefits for the state and believe that speeding up the licensing can generate billions of dollars in additional revenue for the state.

Addabbo noted that the prolonged timeline is holding up about 5,000 jobs and that a streamlined process needs to be implemented. The bill’s goal is not to benefit particular bidders but to eradicate the inefficiencies in the current system.

Some industry sources think that the current system is advantageous for those of the bidders who are facing political and zoning challenges. 

For example, Mets owner Steve Cohen, who proposed a $8 billion casino near Citi Field in Queens, and the Related Companies, proposing a $12 billion casino and office tower complex in Manhattan’s Hudson Yards, are some of the projects that are dealing with such hurdles.

However, the accelerated timeline that Addabbo and Pretlow are proposing could benefit existing slot parlors like Resorts World at Aqueduct and MGM Empire City at Yonkers. To get a license, all these entities need to do is expand their facilities to include live card games.

New Legislation Proposes $500M Upfront Fee for NYC Casino Licenses

As per the new legislation proposal, every bidder that gets a license must pay an upfront license fee of at least $500 million. The bill also allows two years to resolve any legal or land-use issues.

However, there are some significant challenges. For example, Cohen’s project needs state legislative approval to redesignate parkland around Citi Field for commercial use. However, state Sen. Jessica Ramos, who represents the area, has not yet backed this approval.

Assemblyman Pretlow, whose district includes the Yonkers racino, has expressed his frustration over the slow pace of the process. He noted that New York state is potentially forfeiting $2 billion in revenue.

Gov. Kathy Hochul, who oversees the gaming commission, has stated that she will review all legislation, which has been passed by both houses but has not made any statement either in support or against the accelerated casino licensing process. 

In addition to Cohen’s and Related Companies’ bids, other proposed casino projects in New York City include developments by SL Green/Caesars/Roc Nation in Times Square, Bally’s in The Bronx, Silverstein Properties in Hell’s Kitchen, and the Thor Equity consortium along the Coney Island boardwalk.

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Coastal casino sites in Mississippi are once again in the sights of lawmakers, after a recent controversial project approval. RW Development, a company planning to build a casino on US 90 and Veterans Avenue in Biloxi, Mississippi, has been trying to secure approval from the gambling regulator in the state, the Mississippi Gaming Commission, for years.

After three unsuccessful attempts, RW Development secured site approval from the Commission in December. This was achieved after the company was allowed to build a pier at the end of Veterans Avenue. This strategic move enabled the company to secure the site approval from the gambling regulator. But the controversial approval captured the attention of lawmakers in the state, who filed a new bill that seeks to clear any inconsistencies and concerns in case other casino operators are interested in securing sites near the waterfront.

As announced by Sun Herald, the state’s legislators are currently reviewing a bill that seeks to clarify and change different provisions, ensuring clear rules are set for casinos interested in investments related to the state’s tidelands. Ultimately, the proposal seeks to outline a specific framework for the gambling regulator in cases similar to the recently approved license for RW Developments.

The proposal reiterates the currently established rules for casino projects on the state’s tidelands that require a minimum of 40,000 square feet of casino gaming space, along with restaurants and a minimum of 300 hotel rooms. Moreover, under the existing laws in Mississippi, such casino projects must boost the local economy and tourism as well.

Consistent Regulations to Protect the Environment, Encourage Investments

Under the proposal, SB 2780, Mississippi lawmakers seek to set clear lines when it comes to the authority of the state over Public Trust Tidelands. The proposal seeks to make it mandatory for casino licensees interested in tidelands projects to secure a tidelands lease via the secretary of state. Such licenses can also be subject to rent payable on an annual basis. The bill also seeks to clarify rules for cases related to Tidelands casino licenses that would not require annual rent.

The proposed bill is sponsored by the Senate Gaming Committee’s chairman, Sen. David Blount. “I am working with the Secretary of State’s office and every Coast casino operator on the bill,” he explained in a recent interview for Sun Herald. Additionally, Blount pointed out: “Now more than ever, we need to restore a consistent regulatory environment to preserve the sand beach and encourage further investment and improvements in the Coast casino market.”

Besides Sen. Blount, SB 2780 is sponsored by the Gaming Committee’s members, Jeremy England and Bryce Wiggins, along with Senators Philman Ladner and Mike Thompson.

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For nearly a decade, lawmakers such as Rep. Dina Titus have continuously urged the Internal Revenue Service (IRS) to raise the existing threshold on slot winnings that require a W-2G tax form. The current regulation requires anyone with winnings of $1,200 or more to submit a W-2G tax form. This policy was established back in 1977, a time when Nevada was the only state where gambling was available.

But much has changed since then, including the statewide expansion of casino gambling via commercial and tribal operators across the United States. As a result, the existing regulation creates a burden not only for the IRS but for casino operators and their players, Titus said.

Titus, along with Rep. Guy Reschenthaler introduced the Shifting Limits on Thresholds Act, a legislative proposal that called to update the tax threshold for slot winnings, increasing it from $1,200 to $5,000. The proposal marked the latest effort of lawmakers to increase the threshold, updating the policy.

In November, the IRS Advisory Council (IRSAC) supported the proposed change to raise the tax threshold on slot winnings. It suggested the threshold for the required W-2G tax form to be raised to $5,800, which is even higher than the Representatives’ proposal. Considering this support, Titus and Reschenthaler urged the IRS once again to update the policy earlier this month.

In a recent interview for the Nevada Independent, Titus revealed that the policy update can be completed via a change in the regulations without a requirement for legislation. She encouraged Danny Werfel, IRS’ commissioner, to follow the recommendation of the IRS Advisory Council. Rep. Titus explained that it looks like the proposed legislation helped push forward the whole process.

AGA Supports the Proposed Change

The proposed change is important as it will reduce the burden on the customers and the gambling industry. What’s more, the IRS will have much fewer W-2G tax forms to process, considering the potential raising of the threshold. The American Gaming Association (AGA), the premier national trade group for the US casino industry, also showed support for the proposed change.

“The antiquated slot tax threshold creates unnecessary burdens for consumers, casino operators and the IRS.“

Bill Miller, CEO of the American Gaming Association

AGA’s CEO, Bill Miller, called the current policy “antiquated,” saying that it brings unnecessary burdens for the IRS, the consumers and the casino industry. “The AGA commends Representatives Reschenthaler and Titus and other Congressional leaders for their dedicated efforts to modernize this long-outdated policy and join them in urging Commissioner Werfel to raise the threshold,” he explained.

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In a decisive move following Richmond voters’ rejection of a casino proposal for the second time, Virginia lawmakers have unanimously voted to permanently remove the city from consideration as a potential casino site.

Richmond’s Removal from Casino Eligibility Sealed by 100-0 House Vote

The Virginia General Assembly, in a bipartisan effort, passed bills aimed at eliminating Richmond from the list of eligible host cities for a casino, reported 8News WRIC. The legislative action saw overwhelming support, with the House of Delegates voting 100-0 and the state Senate following suit with a 40-0 vote in favor of advancing the legislation.

The proposed bills, championed by lawmakers representing Richmond, including Del. Betsy Carr and state Sen. Lamont Bagby, signify a response to the clear stance expressed by the people of Richmond through their rejection of the casino proposal.

Sen. Bagby emphasized the importance of representing the will of the citizens, stating that he was voted in by the people of the city of Richmond and that they had expressed their disapproval twice.

The legislative move seeks to amend the state code, which previously listed cities like Portsmouth, Norfolk, Danville, and Bristol as eligible casino locations but had criteria that could potentially include Richmond.

The Proposed Legislation Follows Two Referendum Rejections

If signed into law by Gov. Glenn Youngkin, the bills will effectively remove Richmond from consideration by eliminating language that previously made the city eligible. Criteria such as population size, property tax exemptions, and poverty rates would no longer apply to Richmond.

According to estimates from the Weldon Cooper Center for Public Service of the University of Virginia, Richmond’s population exceeded 230,000 in 2018, surpassing the threshold for eligibility. 

Additionally, more than a quarter of the assessed value of real estate in the city was exempt from property taxes in fiscal year 2018.

The decision comes after Richmond faced disappointment in its casino endeavors, with voters rejecting the proposal by a significant margin in both 2021 and November 2023 referendums.

Meanwhile, the legislative process continues to unfold, with discussions around Petersburg’s eligibility for a casino still ongoing. Plans for a casino referendum in Fairfax County have been postponed until 2025. While there has been no immediate response from Richmond Mayor Levar Stoney‘s spokesperson regarding the legislative development, the ongoing 2024 General Assembly session is scheduled to conclude on March 9.

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Alabama’s new legislative session is just around the corner, sparking theories about whether lawmakers will try to get gambling legalized. However, one lawmaker is focusing his efforts elsewhere, opting to instead push for a shutdown of illegal gambling operations.

For reference, gambling in Alabama is currently prohibited by the state’s constitution. This means that even if a bill to legalize gambling is approved, it would ultimately be up to the voters to decide whether Alabama gambling will become a reality or not.

As the legislative session approaches, many speculate that a gambling bill may be on the table.

In any case, House Speaker Nathaniel Ledbetter is just as concerned about the state’s illegal gambling problems. He recently commented on the matter, telling local news outlets that he would 100% support an intensification of the efforts against illegal gambling. Ledbetter added that a committee he formed to study gambling is gearing up to introduce a bill that targets illegal gambling in The Heart of Dixie.

While this bill is yet to become a reality, Ledbetter explained that illegal gambling is certainly something Alabama should take care of, considering the unlicensed operations’ apparent ties to organized crime.

Ledbetter teased that, if passed, the bill of his committee would “shut 95% of everything down.” He attributed last year’s inactivity to the many freshman lawmakers but added that the state really needs to do something to stop illegal gambling in 2024.

Ledbetter Is an Avid Supporter of Legal Gambling

For reference, Ledbetter has been an avid supporter of the regulation of gambling in Alabama. He has advocated for legalized gambling since 2021, arguing that many people would like the state to have a legal industry.

Ledbetter argued that many Alabamans already play in neighboring states or with offshore websites. Some of them even visit one of the state’s illegal gambling venues that Ledbetter is so hellbent on tearing down.

Because of that, the Speaker believes that the state is missing out on a lot of tax money that has the potential to benefit the local economy, bolster public education and help communities in need.

The lack of legal gambling, Ledbetter argues, channels more and more people toward illegal sites each year, exacerbating the issue.

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Amid campaign finance disclosures, a donation of $500 from NOVABizPAC to Delegate Wren Williams (R-Stuart), a staunch advocate of January’s casino bill, has brought attention to potential links between the political arena and casino development. These revelations have prompted significant public scrutiny as industry stakeholders employ all possible measures to secure an advantage in the competitive gambling landscape.

A Successful Casino Bill Can Be a Goldmine for Developers

The contribution from NOVABizPAC, the Northern Virginia Chamber of Commerce’s political action committee, to Williams’ campaign surfaced in finance reports filed with the State Board of Elections. Nick Clemente, the lobbyist who authorized the donation, has ties to Christopher Clemente, CEO of Comstock Companies. This connection raises eyebrows as Comstock Companies expressed interest in erecting a casino near the Wiehle-Reston East Metro Station.

For Comstock to proceed with their plans, the Virginia General Assembly needed to approve legislation enabling the Fairfax County Board of Supervisors to initiate a referendum for voters to decide on the casino’s fate. In January, Delegate Williams and State Senator Dave Marsden (D-Burke) introduced almost identical bills (HB 2499/SB 1523) to grant the Board of Supervisors extended authority.

Campaign finance records also revealed that Williams received $500 from the chamber and a $2,500 contribution from Christopher Clemente, with the total sum from Clemente’s donations amounting to $12,500 for Williams’ 2023 campaign. Furthermore, former and current Comstock employees contributed $29,525 to Williams between 1 January and 30 May.

Lobbying Efforts Remain a Staple Industry Tool

Questions persist regarding Williams’ motivations for introducing the casino-related legislation. Marsden had earlier mentioned being approached by developers with relevant properties, although he later claimed ignorance about the specific referendum bill presented by Williams. However, piling coincidences cast doubt on these statements, especially given Williams’ proactive approach.

The politician has been a vocal supporter of Nick Clemente, urging voters to rally behind his lobbying efforts. A video on Williams’ Facebook page shows the delegate position Williams as an advocate for critical issues within the community, emphasizing the other man’s dedication to safety and protection. Williams also praised Clemente on X (formerly Twitter), dispelling doubts about their affiliation.

It was fun knocking on doors yesterday in the beautiful fall weather for Nick Clemente in Northern Virginia.

Delegate Wren Williams on X

The interconnectedness between campaign donations, lobbying, and legislative actions concerning casino-related bills has raised concerns regarding the integrity and transparency of political processes surrounding large-scale development projects. The implications of these financial connections have raised substantial public scrutiny, particularly concerning their influence on legislative decisions and the interests they represent.

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In the closing chapters of this year’s state budget negotiations, the legislative arena buzzed with intensity as lawmakers in North Carolina wrestled over the unexpected proposal to legalize four casinos within the confines of the nearly $30 billion state budget. 

North Carolina Lawmakers Challenge $1.5 Billion Casino Investment Proposal

The controversial addition pitched as a rural incentive development program, earmarked a substantial $1.5 billion state investment for the establishment of three privately operated casinos. A potential fourth casino, to be managed by the Lumbee Tribe, loomed over Robeson County. Oversight of these establishments was slated for the Department of Commerce, with licensing falling under the purview of the North Carolina Lottery Commission, reported The Carolina Journal.

This audacious move, not subjected to the scrutiny of legislative committees, triggered a wave of dissent among lawmakers, most vocally from the Freedom Caucus, spearheaded by Rep. Keith Kidwell, R-Beaufort, and Sen. Bobby Hanig, R-Currituck. Budget negotiations were momentarily derailed, forcing Senate and House leadership to withdraw the proposal from the budget. However, they emphasized the necessity of gearing up for a robust debate on more tightly regulated gaming options in the forthcoming legislative session.

The heart of the issue revolved around an intricate web of financial interests. An earlier analysis conducted by the Spectrum Gaming Group indicated a potential $1.9 billion market in North Carolina should three new resort casinos emerge. Each facility was projected to generate approximately 3,000 jobs and funnel $30 million into local tax coffers.

Gaming Giants Shape North Carolina’s Casino Landscape Amid Political Intrigue

Various gaming giants had already made their mark. Among them, The Cordish Companies, a Maryland-based commercial real estate group, led the charge, successfully lobbying for the rezoning of nearly 200 acres of land in Rockingham County for an entertainment district.

Behind the scenes, the influence of lobbyists and their financial clout became increasingly apparent. Allegations surfaced regarding significant contributions made by casinos to key state lawmakers’ political campaigns, totaling over $1.4 million. However, a deeper analysis revealed that this financial impact was a mere fraction of the broader contributions flowing from the gaming industry.

The power play extended beyond individual lawmakers to lobbyists, who maneuvered deftly in the legislative corridors, juggling roles between gaming companies and NCInnovation, a privately-run economic development initiative. 

Critics raised eyebrows as NCInnovation secured a $500 million earmark in the final budget, a significant cut from the initial $1.4 billion proposal. The lobbying teams, featuring prominent figures such as Tony Copeland, North Carolina’s former commerce secretary, and Tracy Kimbrell, the ex-general counsel for Sen. Phil Berger’s office, operated in a complex landscape of shifting alliances and political intricacies.

As the legislative session neared its end, the stage was set for a resurgence of the casino debate in 2024. Lawmakers, including Rep. Keith Kidwell, R-Beaufort, voiced concerns not about the concept of casinos per se, but rather the opaque process by which they found their way into the budget. 

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The future of smoking at Atlantic City’s nine casinos remains uncertain as lawmakers continue to seek a way to patch the indoor smoking loophole. For as many as 17 years, this exemption in the New Jersey Smoke-Free Air Act, supported by the Democrats, has permitted AC’s casino properties to allow smoking in up to 25% of their gaming floor space.

The exemption has long been a subject of controversies, with some lawmakers seeking to patch it up for years now. The smoking exemption also continues to attract disgruntlement from anti-smoking activists who claim that the current law jeopardizes the health of casino workers.

Two measures, namely Senate Bill 264 and Assembly Bill 2151, seek to put an end to the current loophole and align the casinos to other properties where indoor smoking is prohibited. The measures have been in limbo for many months but have enough support to go to Governor Phil Murphy.

Murphy has previously expressed his support of the measures, saying that he would sign them into law if they reach his desk. Despite the strong support, however, the Democratic Party continues to block the measures.

The Ban Has Many Opponents

New reports claim that the measures may soon be taken out of limbo as New Jersey Senate President Nicholas Scutari will allegedly work on Senate Bill 264 following the November 7 elections.

Anti-smoking parties are signed up for an uphill battle against the Democratic leadership, which hopes to retain its majority in the Senate and Assembly where it holds 25 and 46 seats respectively.

In addition, anti-smoking parties will need to overcome the strong opposition from casino companies, which believe that a smoking ban would hurt their revenues, forcing them to cut as many as 2,500 jobs. Unite Here has compared the smoking ban to suicide, alleging that it would cause AC casinos’ GGR to drop by 11%.

However, proponents of the ban have argued that there is not enough evidence to suggest that the measure would have such a profound effect on the local casino industry.

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The rapid proliferation of electronic pull tabs has ignited a debate in North Dakota, sparking discussions about the future of charitable gambling within the state and the need for effective regulation of these Las Vegas-style gaming machines.

Senator Myrdal Pushes for Clarity in North Dakota’s Gambling Laws

Functioning similarly to traditional slot machines, the electronic pull-tab machines made their debut in 2018 after receiving approval from the Republican-controlled Legislature.

Addressing the concerns on e-tabs appropriate locations and operators, Republican State Senator Janne Myrdal, who chairs an interim legislative panel responsible for a comprehensive yearlong study of charitable gambling issues, emphasized the importance of aligning with the original intent of the state’s laws. She explained that certain things had gone off course and that they were beyond the scope of what the state laws were meant to cover.

Myrdal expressed her hope that the study’s outcomes would provide practical solutions by the next legislative session scheduled for 2025, reported the Associated Press. She particularly highlighted the significance of determining appropriate locations for these electronic gambling machines.

In July, North Dakota’s Attorney General, Drew Wrigley, reached a settlement with three gambling equipment distributors, namely Western Distributing Company, Plains Gaming Distributing Inc., and Midwest Gaming Distributing Inc. These distributors were accused of breaching the state’s charitable gambling regulations, resulting in a $125,000 fine. 

Legislators Raise Concerns Over E-Tab Expansion in North Dakota

During this year’s legislative session, lawmakers voiced worries about the presence of these machines in certain establishments, especially gas stations, which could potentially allow minors access to e-tabs. The widespread distribution of these machines, with over 4,700 units across the state, has also raised concerns regarding tribal nations’ interests, the regulation of these devices, and the potential for money laundering.

In the last fiscal year ending on June 30, e-tabs generated nearly $2 billion in gross proceeds from cash and replayed winnings, contributing $205 million to various charitable causes, including just over $72 million earmarked for specific charitable purposes. 

While state law traditionally did not dictate the locations for charitable gambling, e-tabs began appearing in select gas stations and convenience stores due to a liberal interpretation of the term “alcoholic beverage establishment.” 

To address this issue, the bill initiating the study provided a revised definition, excluding gas stations, convenience stores, grocery stores, and liquor stores. However, this new definition fails to account for other establishments, such as hair salons and indoor golf centers, which can serve and dispense alcohol.

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Betting on political events is a relatively new activity that has seen some popularity recently. Similar to sporting events, election market bets for political events can favor one candidate or another. In some cases, bettors can wager how far a candidate may go through a political campaign or when they may drop off. In sports, the expansion of betting across the US caused a great deal of concern, primarily related to the integrity of the competitions, especially when it comes to collegiate sports.

Now, a group of lawmakers raised concerns about the possibility of legal gambling on US elections in a recent letter addressed to the Commodity Futures Trading Commission (CFTC). The letter comes after back in June, a private predictions company called Kalshi, notified the Commission that it intends to offer “event contracts on the outcomes of US elections,” wrote the concerned lawmakers. This, in other words, means that the company seeks the approval of the CFTC to offer for-profit gambling on political outcomes.

For-Profit Gambling on Political Events Raises Concerns

In light of this, US Sen. Chris Van Hollen along with Sen. Jeff Merkley, Sen. Sheldon Whitehouse, Edward J. Markey, Elizabeth Warren and Dianne Feinstein, sent a letter to the CFTC, urging the Commission’s chairman, Rostin Behnam, to reject the request submitted by Kalshi.

“There is no doubt that the mass commodification of our democratic process would raise widespread concerns about the integrity of our electoral process,“

reads a letter sent by the lawmakers to the CFTC

In their letter, the lawmakers said that if the democratic process goes through commodification, concerns about the integrity of the process may come. The letter underlines that this would represent an activity that is in opposition to the public interest, which is why, they urged the CFTC to reject the request from the private predictions company.

“Such an outcome is in clear conflict with the public interest and would undermine confidence in our political process — we urge the CFTC to deny Kalshi’s proposal,“

explained the lawmakers in their letter

According to the lawmakers, approval of the proposal by Kalshi would bring statewide for-profit gambling on political outcomes, an activity that may interfere with the elections. The concerned group of lawmakers also added that such for-profit activities may negatively impact the trust in the integrity of the elections in the United States. At the same time, the lawmakers warned that wealthy groups can abuse that process and impact the outcomes of what is otherwise a democratic election process.

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