Casino News Today

BUFFALO, N.Y. - The Seneca Indian Nation says it’s halting construction of its planned $333 million casino-hotel complex in Buffalo because of the poor economy.

Wednesday’s announcement came a day after a federal judge reinforced a ruling declaring casino gambling illegal on the site, but Seneca Gaming Corp. spokesman Phil Pantano said the court action, which will likely be appealed, was not a factor.

“A decision of this magnitude is not made overnight,” Pantano said.

An Aug. 14 filing with the U.S. Securities and Exchange Commission indicated the gaming corporation, the Seneca Nation’s gambling arm, was reassessing its construction projects “in light of greater demands on our available cash, increased competition and challenging economic and capital market conditions.”

Work also was suspended at the tribe’s existing casino and hotel in Salamanca, where a $130 million expansion was under way.

Pantano said the suspensions are temporary, but could not say when construction might resume.

“We’re going to continue to watch the economy very closely,” he said.

The western New York tribe has opened three casinos since Dec. 31, 2002, under an agreement with New York state that requires the Senecas to share a percentage of slot machine revenues with the state and host communities. Wednesday’s action will not affect current operations, Seneca officials said.

The planned Buffalo casino represents one of the largest private projects ever undertaken in the economically struggling upstate city and the mayor said he looks forward to seeing the project back up and running.

“I still believe that this $333 million project, which will create over 1,000 jobs, will be a benefit to the city of Buffalo,” Mayor Byron Brown said.

Not everyone agrees.

A group of casino opponents has been waging a legal battle against the Senecas’ plans to build a casino on the nine-acre Buffalo parcel, saying it would drain money from the poor and cause a host of other social ills.

Tuesday’s decision by U.S. District Judge William Skretny ruled in the opponents’ favor, upholding an earlier finding that while the Buffalo parcel, which the Senecas bought, qualified as sovereign territory, it was not eligible for casino gambling because it was not acquired as part of a land claim.

After the ruling, casino opponents vowed to keep pressure on the National Indian Gaming Commission, charged with enforcing the ruling, to stop gambling at the site. A small temporary casino has been operating there since March while construction crews have cleared land and erected steel framing for the permanent facility.

“If the Senecas don’t voluntarily cease operations and NIGC does nothing to stop the gambling, we will be back in court,” said Cornelius Murray, lead attorney for Citizens for a Better Buffalo.

While Seneca President Maurice John on Tuesday said the temporary Buffalo Creek casino would remain open and construction on the permanent casino would continue, by Wednesday, plans had changed.

Seneca Gaming Corp. Chairman Barry Snyder Sr. said the tribe has been keeping a close eye on the economy.

“In keeping with our financial commitments to our owner, the Seneca Nation of Indians, and with our obligations to bondholders, we have decided that it is our responsibility to suspend our construction activities at this time as we endeavor to preserve the continuing strength and vitality of our company,” Snyder said.

In its Aug. 14 SEC filing, the corporation indicated the two casino construction projects and the planned development of a golf course in Lewiston would require significant capital outlays and that the company was evaluating the scope and timing of its projects.

“The ability to complete these projects by the targeted dates, or at all, will depend on various factors including cash flow from operations, the availability of external financing with regard to one or more of the projects, certain nation and other governmental approvals, the effects of legal and/or administrative proceedings, and adherence to projected construction timelines,” the filing said.

AP

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The New Mexico Racing Commission awarded the state’s last non-tribal race track casino license to Racing at Raton, rejecting applications for tracks in Tucumcari and at the Downs at Santa Fe.

Commission Chairman Arnold Rael said the Raton plan best serves the needs of the racing industry. The developers offered to have a 60-day race season and build 1,500 stalls. The track developers also said they will draw from a five-state area.

Rael contrasted that to the Tucumcari project by Coronado Partners, who stated they would draw from primarily Texas and New Mexico.

“Should Texas expand gaming it would impact Coronado much more than Raton,” Rael said.

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Commissioner Thomas Fowler said he supported Raton because the management of the state’s other racetracks submitted letters of support for re-starting racing in the northern New Mexico town. That’s important, Fowler said, because the tracks must cooperate closely on issues such as race dates and simulcasting.

Racing at Raton, the partnership that applied for the license, estimated its project would create 300 permanent jobs, more than $7 million in annual payroll and about $13.3 million in annual tax revenues for the state.

The plan by the Pueblo of Pojoaque to re-open the Downs at Santa Fe was rejected because Commissioner Ray Wilis said it would violate a state statute that requires tracks within 80 miles of each other to have agreements in place to ensure simulcast racing can take place at one while live racing is going on at the other. The Downs at Albuquerque submitted a letter in July stating that there was no such agreement in place and it was not willing to enter into such an agreement, according to Commission staff.

The Commission gave all applicants one final opportunity to speak about their applications. Don Chalmers, who is leading the team to develop a track at Tucumcari, reiterated the merits of his project. Chalmers funded a number of studies, including one by New Mexico State University, to bolster his argument that a track in Tucumcari would provide significant rural economic development.

Commission members asked if he planned a legal challenge should the decision not go Tucumcari’s way, and Chalmers said there would not be a challenge.

Officials with Pueblo of Pojoaque and Racing at Raton declined to make any additional comments to the Commission beyond their earlier presentations.

A fourth application came in to the Racing Commission late last week for a track in Lordsburg.

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NEW YORK (Associated Press) - Shares of many major casino operators fell on Monday as oil prices showed some volatility. The decline followed the sector’s sharp gains on Friday, when a drop in oil prices pushed up shares of gambling companies.

High gas prices have weighed on casino operators as consumers have cut back on driving and discretionary spending and as airlines have reduced capacity into certain markets, particularly Las Vegas.

MGM Mirage’s stock dropped sharply on Monday, after spiking 20 percent on Friday on word that New Jersey regulators approved a request by Dubai World to raise its MGM stake to 20 percent. Dubai World, the investment arm of the Persian Gulf state of Dubai, currently owns a 9.4 percent MGM stake.

On Monday afternoon, MGM shares were down $3.40, or 10.2 percent, to $29.85. The stock has traded between $21.65 and $100.50 during the past 52 weeks.

Las Vegas Sands Corp., which was one of the few casino operators to decline on Friday, bounced back somewhat on Monday. Las Vegas Sands’ shares had dropped after a Banc of America Securities analyst downgraded the stock to “Sell” on Friday and said the casino operator has greater funding needs than investors may realize.

Las Vegas Sands’ shares gained $1.34, or 3.3 percent, to $41.67 in afternoon trading. The stock has traded between $30.56 and $148.76 during the past 52 weeks.

Here is a look at how some other major casino operators were trading on Monday:

Pinnacle Entertainment Inc., down 57 cents, or 5.2 percent, to $10.30.

Penn National Gaming, down 95 cents, or 2.8 percent, to $32.45.

Boyd Gaming Inc., down 49 cents, or 4.1 percent, to $11.40.

Isle of Capri Casinos Inc., down 28 cents, or 4 percent, to $6.70. 

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SUMNER COUNTY, Kansas, August 25, 2008 – The casino battle is heating up again in Sumner County. The Kansas Lottery Review Board selected Harrah’s as the developer of choice, but some in Wellington say the fight is not over.

Representative Vince Wetta isn’t ready to give up on Wellington’s casino dreams just yet. He took the lottery board’s decision pretty hard Friday. But now he and other Wellington supporters are being told not to back out.

“Don’t give up, fight until the last dog is dead and the last dog isn’t dead yet,” Wetta said.

Wellington’s last hope may center on a five-mile annexation from Mulvane to the Harrah’s exit. Sumner County Commissioners took the issue to court to question if the move was legal.

Wellington supporters will be in Topeka Tuesday morning, to meet with Sumner County Commissioners directly, asking them to continue the lawsuit against Mulvane. But Mulvane supporters know commissioners could go a different route.

The Harrah’s casino could move forward without any snags if commissioners back out of the lawsuit.

“Governments work best when they work together, working against each other only penalizes the citizens,” said Mulvane City Administrator Kent Hixson.

Hixson says citizens could lose money if the annexation lawsuit plays out in court.     

“Continued litigation will only delay the gaining of over $2 million a year in gaming revenue, again that benefits every citizen of Sumner County.”

Still, many in Wellington feel the fight is worth it.

“I want the people of Mulvane to know that this isn’t a personal thing, but this is something I feel and Shelly Hansel, and Gus and the county commissioners, we have to do this and we are going to do it,” Wetta said.

Despite Friday’s ruling, it would appear that the battle in Sumner County is far from over.

KSN.com

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