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Congress buries tribal casino plan

Posted by admin in Casino News

Advocates of off-reservation tribal gambling suffered a stinging defeat Wednesday when the U.S. House rejected a tribal casino proposal in Michigan.

Passage could have set a new precedent permitting tribes wide latitude in where they can buy land and build casinos.

Here’s an account from the Capitol newspaper, The Hill, of how it all unfolded:

* * *

Rep. John Dingell (D-Mich.) suffered a stinging defeat Wednesday when an Indian gambling bill he’s being pushing for more than a decade was handily defeated in a lopsided vote of 121-298.

The floor fight pitted Dingell, the longest-serving member of the House, against fellow Michigan Democrat John Conyers Jr., its second-longest serving member. Dingell, the chairman of the House Energy and Commerce Committee, is serving his 25th House term, while House Judiciary Committee Chairman Conyers is in his 22nd.

Dingell’s bill would have settled a century-old land dispute between two tribes and paved the way for them to build casinos in cash-strapped Michigan districts. Detroit-area lawmakers led by Conyers argued the land claims by the two tribes were illegitimate and would undermine the revenues of existing gambling operations that are a major source of tax revenue for the city.

Opponents argued that the bill would have designated land to the tribes 350 miles away from their reservations, setting a congressional precedent that could have led to dozens of other actions by tribes interested in opening up casinos.

This vote marked the first time Democratic leaders dealt with the contentious issue of Indian gambling since the fall of Jack Abramoff, whose corrupt lobbying on the tribal gaming issue helped propel Democrats to power in 2006. Abramoff spent years fighting efforts similar to Dingell’s as a lobbyist for the Saginaw Chippewa Michigan tribe, which opposed the bill.

Debate before the vote was intense, with Dingell railing against the tactics of his opponents. “If you’re concerned about voting with Jack Abramoff, the Abramoff vote is a ‘no’ vote,” he bellowed.

Conyers was equally aggressive. At one point, he turned to the back of the room and yelled at one member making comments to “sit down and shut up!”

Before the vote, Conyers appeared confident his furious whipping against the measure would lead to its failure.

“When they tell you it’s not about casinos, it’s about casinos,” he quipped.

Democrats were divided, with 96 voting with Dingell in favor of the bill, and 131 siding with Conyers in voting no. Only 25 Republicans voted in favor of the measure.

Speaker Nancy Pelosi (Calif.) didn’t vote, while Majority Leader Steny Hoyer (Md.) and Democratic Caucus Chairman Rahm Emmanuel (Ill.) voted against it.

Eighteen members of the Energy and Commerce Committee voted with Dingell, their chairman, including ranking member Rep. Joe Barton (R-Texas) and Reps. Jane Harman (D-Calif.), Jan Schakowsky (D-Ill.) and Ralph Hall (R-Texas).

The issue divided the Congressional Black Caucus. Majority Whip James Clyburn (D-S.C.), Ways and Means Committee Chairman Charles Rangel (D-N.Y.) and Reps. Alcee Hastings (D-Fla.), Lacy Clay (D-Mo.) and Jesse Jackson Jr. (D-Ill.) voted with Dingell.

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Casino cases to be in court soon

Posted by admin in Casino News

A recent spate of court announcements could clear the way for at least two casino gaming-related lawsuits to be settled soon.

On Friday, the Kansas Supreme Court is expected to file a decision in the case between the State of Kansas and the Kansas Lottery.

The court’s Web site says the decision will be made at 9:30 a.m. and will be made available at www.kscourts.org shortly thereafter.

After Kansas legislators in 2007 passed the Kansas Expanded Lottery Act that paved the way for state-owned gaming, Kansas Gov. Kathleen Sebelius asked then-Attorney General Paul Morrison to file a “friendly” lawsuit to challenge the lottery act.

At issue is whether the state will actually own and operate the casinos.

A Shawnee County District Court judge upheld the lottery act earlier this year.

In a separate legal action, four plaintiffs - all Wyandotte County residents - represented by attorney Caleb Stegall in a lawsuit filed in March in Shawnee County District Court have filed for an extension to review a number of motions to dismiss the case.

Stegall filed the motion last Friday after five groups - PNK-Kansas, the entity behind the Pinnacle Entertainment casino proposal; the Kansas Racing and Gaming Commission; the Lottery Gaming Facility Review Board; the Kansas Lottery; and the Kansas Lottery Commission - all motioned for Judge Franklin R. Theis to dismiss the case.

The lawsuit alleges that three casino proposals in Kansas City, Kan. - Pinnacle Entertainment, Kansas Speedway and Legends Sun - violate state law by directly benefiting from previous or future projects that use public forms of financing.

All three groups have repeatedly denied the lawsuit’s claims, though Pinnacle has been the only one of the three to become active in the lawsuit. The group made a motion to intervene in the case on May 12. Though Pinnacle wasn’t named as a defendant in the suit, an attorney representing the company’s KCK proposal said they should be involved because they are mentioned in the suit.

Theis hasn’t ruled on Stegall’s extension, but has called for a hearing at 2 p.m. Friday, July 11, in Topeka.

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Genting launches online casino brand

Posted by admin in Casino News

KUALA LUMPUR: Genting International PLC has launched its first online casino brand, “CircusCasino.com”, in the United Kingdom.

Genting International managing director Justin Tan Wah Joo said “CircusCasino.com” would be operated by its unit Genting Stanley Alderney Ltd (GSAL) and it would offer a range of over 100 casino, card and table games.

“Players from around the world will be able to access “CircusCasino.com” and view the Play for Fun games. However, from launch only players from the UK, Isle of Man and Channel Islands will be able to deposit funds and Play for Real games,” he said.

On March 13, Genting International had announced that GSAL had received approval from the Alderney Gambling Control Commission for an online gaming licence.

Tan said the launch of “CircusCasino.com” was not expected to have any material impact on the consolidated net tangible assets and earnings per share of the company for the financial year ending Dec 31.

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U.S. casino shares slump as airlines cut capacity

Posted by admin in Casino News

NEW YORK, June 26 (Reuters) - Shares of casino operators tumbled to new lows on Thursday as investors assessed the impact of airline schedule cutbacks and new Las Vegas Strip resort capacity.

“Gaming stocks are very much out of favor,” said Robert LaFleur, an analyst at Susquehanna Financial.

The Dow Jones U.S. Gambling Index .DJUSCA> was down 4.3 percent to a new 52-week low, as the Dow Jones Industrial Average .DJI> dropped 1.9 percent.

JP Morgan analyst Joe Greff on Thursday downgraded shares of MGM Mirage to “neutral” from “overweight” and lowered earnings estimates for the company, citing “unprecedented” uncertainty over visits to Las Vegas and spending by customers who do make the trip.

He also lowered earnings estimates for Las Vegas Sands Corp , noting that Sands is moving aggressively to “put heads on beds” at its Venetian and Palazzo resorts on the Las Vegas Strip by lowering room rates, harming the overall market.

Shares of Sands were down 5.6 percent to $50.42 after falling as low as $49.68, a two-year low. MGM’s shares were down 4.9 percent to $36.98 after touching $35.82, the lowest since September 2006. Boyd Gaming Corp was down 3.6 percent and Trump Entertainment Resorts Inc fell more than 8.1 percent, marking a three-year low.

The operators were already facing headwinds from soft consumer spending amid a weak U.S. economy and soaring gasoline prices; but news that airlines, hit by soaring jet fuel costs, would reduce flight capacity has added another layer of complication.

Nevada’s Tourism Alliance convened an “Air Crisis Briefing” on Monday to discuss the issue.

US Airways Group Inc, the second-largest carrier to Las Vegas after Southwest Airlines Co, said earlier this month that it plans to cut flights to the gambling center by nearly half.

Other air carriers to announce scaled-back flight schedules after the peak summer travel season include Continental Airlines Inc, AMR Corp’s American Airlines, UAL Corp’s United Airlines and Delta Air Lines Inc.

About half of visitors to Las Vegas arrive by air, with the rest driving in, mainly from Southern California. But air arrivals account for about 80 percent of hotel stays.

From now through the end of next year, the room inventory in Las Vegas is slated to jump by more than 11,000 with the opening of casino-hotels like Wynn Resorts Ltd’s Encore, MGM’s City Center and Fontainebleau Las Vegas.

“We are concerned that Las Vegas could lose several million or more air seats at a minimum,” Macquarie Research analyst Joel Simkins said in a research note earlier this week.

Greff estimated that the flight cutbacks will at least cause significantly higher airfares and single-digit declines in flight arrivals into Las Vegas.

“We think the impact of lower airlift capacity and high gas prices couldn’t come at a worse time for the Strip, with four larger mega-resorts set to open over the next three years,” he said in a research note.

In total, work is underway to add more than 40,000 luxury hotel rooms to the gambling corridor — about one-third more than today.

LaFleur said other challenges facing casino operators include smoking bans in some states and increased competition between gambling-friendly destinations.

Overall visitation to Las Vegas so far this year has been down marginally from last year. Nevada casinos won just over $1 billion from gamblers in April, the latest figures available, a 5.1 percent decrease from the same month a year earlier, according to Nevada’s Gaming Control Board.

Simkins said that Las Vegas casino operators may have to continue to reduce room rates and offer more incentives to lure both domestic and international leisure customers.

Deutsche Bank analyst Bill Lerner said some Las Vegas airline capacity could return in the form of charter flights and other packages, but this would likely require the involvement of casino operators.

Courtesy of Guardian.co.uk

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