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The drama in New Jersey between PokerStars and the Atlantic Club Casino drags on. Meanwhile in Nevada, Ultimate Poker hits its first snag.
The Boardwalk can’t catch a break.
For the past two decades, Atlantic City’s casino industry has been under siege from gaming competition in neighboring states.
The Southern New Jersey seaside resort, where saltwater taffy was created in the late 1800s, which thumbed its nose at Prohibition in the 1920s and was the inspiration for the board game Monopoly, once owned the monopoly for casinos in the East.
But starting in the mid-1990s, Pennsylvania, Delaware, Maryland, Ohio, West Virginia and New York legalized gaming. The competition, combined with the recession, took away business and caused Atlantic City’s annual casino revenues to fall more than 41 percent between 2006 and 2012.
A comprehensive reform package pushed by Gov. Chris Christie in 2011 that created the Atlantic City Tourism District and focused new attention on boosting the city’s 12 hotel-casinos — nine on the famous Boardwalk and three in the Marina district — was just beginning to take hold in October.
Then Superstorm Sandy washed ashore.
Atlantic City evacuated residents while casinos and other businesses closed as a precaution.
The city was spared the brunt of the storm, but emotional damage remains.
“It’s a shame because it felt like we had some momentum building before Sandy hit,” Tropicana Atlantic City President Tony Rodio said in an interview in late April.
Rodio has spent 30 of his 33 years in the gaming industry working in Atlantic City.
“No question, we had taken some tiny steps forward and then got pushed five steps back,” Rodio said. “It’s really hard to say if the whole effect of Sandy is behind us.”
In April, figures released by the Division of Gaming Enforcement showed Atlantic City’s 12 casinos collected $228.5 million in gaming revenues, a decline of 12.1 percent from a year ago. Gaming revenues have declined in 54 of the past 56 months.
In 2006, gaming revenues were an all-time high of $5.2 billion. The 2012 total of $3.05 billion was the lowest figure since Atlantic City casinos cracked the $3 billion mark in 1992. In the first four months of 2013, gaming revenues are down 12 percent.
But that’s not the whole story, Atlantic City casino and tourism leaders say.
Nongaming indicators from 2012 showed upticks in luxury and sales tax collections. The hotels’ overall nongaming revenues grew almost 3 percent.
“For someone who just wants a night of gambling, it’s now in their backyard,” said Caesars Atlantic City General Manager Kevin Ortzman, who also oversees Bally’s Atlantic City and the Showboat.
“We have to do what Vegas did in the ’90s and that’s reinvent ourselves as a resort destination,” Ortzman said. “We need to highlight our nightlife, our restaurants, the beach and the boardwalk. We’re more than just gaming.”
FOCUS NOT ON GAMBLING ALONE
The Atlantic City Alliance, which was created through Christie’s reform package, has the task of marketing the casino industry. The agency is housed in Boardwalk Hall, an event arena built in 1929 and supplanted in 1997 by the Atlantic City Convention Center.
The Alliance’s $30 million annual budget is funded by the casinos, but that doesn’t mean it pitches only gaming. Last year’s advertising campaign — “Do AC” — didn’t display one gaming moment, and the current campaign has just a smattering of casino shots.
“Our goal is to go back to our roots and focus on Atlantic City as a tourist destination,” Alliance President Elizabeth Cartmell said. “We need to point out the diversity of offerings and mix of activities we have in this market.”
Cartmell also said the city needs to copy Las Vegas in drawing visitors through nongaming amenities.
Many of the same restaurants operated by celebrity chefs and high-end eateries found on the Strip are also on the Boardwalk and the Marina.
When Jimmy Buffett’s Margaritaville opens Memorial Day at Resorts Atlantic City, the restaurant will be just down the Boardwalk from the Hard Rock Cafe in the Trump Taj Mahal and the House of Blues in the Showboat.
Many of the casinos offer elaborate spas, nightclubs and shopping.
The Walk at Atlantic City is an outdoor mall operated by Tanger Outlets with more than 100 shops and restaurants on six square blocks between the convention center and the Boardwalk.
A Bass Pro Shops is expect to open near the mall by next year.
“Ten years ago, The Walk was a burned out housing project,” said Atlantic City Convention and Visitors Authority President Jeffrey Vasser, who has been with the agency 11 years. “Before The Walk, you might have thought twice about walking back to the hotels from the convention center.”
During the summer months, there is also the Boardwalk and the beach.
For the first time, Atlantic City last year marketed its nongaming elements as a whole.
UNPRECEDENTED COOPERATION IN PLAY
And, casino leaders are working together to support the market.
“There is a great spirit of cooperation here that is refreshing,” said Revel interim CEO Jeffrey Hartmann. “There is a huge market opportunity with 47 million people living within a six-hour drive. … I’m impressed how these folks that run these buildings want to do the right things to contribute to the revitalization of Atlantic City.”
Borgata President Tom Balance said the collaborative efforts from the Alliance, the Casino Reinvestment Development Authority, the governor’s office and casino operators are all working to stimulate the industry.
“There has never been a time that I can recall that the operators got together to drive the market,” said Balance, who has been in the market more than 30 years. “We still compete fiercely for business, but there is a good cooperation.”
And, there is optimism. Many casino operators said the gaming industry’s partnership with the state is working.
“It’s amazing. We have double-digit declines, but everyone has a sense that there are a lot of positives and things are moving in the right direction,” Rodio said.
CONVENTION SPACE LIMITED
Weekends are busy in Atlantic City, but filling midweek is crucial.
Convention and meetings business is viewed as one component of a midweek strategy.
The convention center has 486,000 square feet of space, including 40 meeting rooms. The hotels have their own conference and meeting facilities. Only Revel, with a 100,000-square-foot space, offers much for conventions.
As a comparison, Las Vegas has massive convention facilities, including the 2.2 million-square-foot Las Vegas Convention Center, 1.6 million square feet at the Mandalay Bay, and the 1.2 million-square-foot Sands Expo and Convention Center.
Multiple Strip resorts have convention and meeting facilities ranging from 50,000 to 300,000 square feet.
Vasser said plans by Harrah’s Atlantic City, which is in the Marina district, to add a 150,000-square-foot conference center would help further the convention authority’s goal of growing corporate meeting business.
“We need a nice midsized center,” Vasser said. “I can’t tell you how many times we’ve had to turn away business because we lacked a certain-sized facility.”
Harrah’s General Manager John Smith said Caesars Entertainment is still “getting everything locked down” for the conference center, which might not open until 2015.
Smith said boosting midweek meetings would help offset Atlantic City’s loss of business to casinos in other states.
Caesars operates one-third of Atlantic City’s casino market.
The company also owns Harrah’s Philadelphia, about an hourlong drive to the west. Company officials plan to open the Horseshoe Baltimore in 2015, and they are bidding for a casino license in Boston.
Smith and Ortzman said the company is dedicated to maintaining the Atlantic City market, even as it increases competition from casinos in feeder markets.
“We always seem to walk a fine line when it comes to new jurisdictions,” Smith said. “But we’re supportive of each other and through Total Rewards, a customer can gamble midweek in Philadelphia, and then have a weekend getaway in Atlantic City.”
SPORTS, INTERNET GAMING OFFER PROMISE
The focus over the past 18 months has been building and promoting Atlantic City’s nongaming attractions, but developments looming on the horizon could give the Boardwalk a competitive edge: Internet gaming and sports betting.
In February, Christie signed online gaming legislation that allows anyone to open an account but limits the wagering activities to computers and mobile devices in New Jersey, and only Atlantic City casinos can operate the websites. Regulations are being drafted and gaming authorities expect the review process to start by December with Internet gaming to launch next year.
Not surprisingly, all Atlantic City casino operators are exploring their options.
“We’ll move forward with an initiative,” Rodio said of the Tropicana. “We’re in negotiations with several potential partners, and we’re interested to see the regulations.”
Boyd Gaming Chief Executive Officer Keith Smith said last month that Borgata “intends” to be the first Atlantic City casino to offer online gambling.
Earlier this year, Borgata — Atlantic City’s gaming market leader since its 2003 opening — became the first in the market to launch in-room wagering, allowing bets on a slot machine game and on four versions of video poker.
Balance said revenues “aren’t going to be of any consequence on the income statement,” but that’s not the point.
“It was really all about moving the technology forward,” Balance said. “Because of our population and the large population near our borders, I think New Jersey has the potential to be a real nice online gaming market.”
The other factor is sports wagering.
New Jersey voters last year overwhelmingly backed sports betting, which is now allowed under state law in Atlantic City’s 12 casinos and the state’s four horse tracks.
A federal judge ruled against New Jersey when major professional sports leagues and the NCAA sued to maintain a 1992 federal law that restricts sports betting to Nevada, Oregon, Montana and Delaware.
New Jersey is appealing; Christie said he would take the case to the U.S. Supreme Court.
“Sports wagering could be a game-changer for Atlantic City,” Ortzman said. “You look at the population surrounding us in the Northeast, and legal sports wagering could become a huge attraction.”
Still, Ortzman added, there’s also a plan to remodel the entire casino floor of Bally’s Atlantic City, giving the aging property a revised layout, new carpeting and the latest slot machines.
Live gaming, he said, will always have a place in Atlantic City.
Contact reporter Howard Stutz at hstutz@reviewjournal. com or 702-477-3871. Follow @howardstutz on Twitter.
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Copyright 2013 Stephens Media Interactive GamingWire.
The first three months of 2013 have sparked cautious optimism for the economic recovery of Nevada’s casino industry.
A new report for March appears to build on that trend.
Statewide gaming revenues grew 7.04 percent in March to $914.8 million, the state’s second-straight monthly increase. On the Strip, gaming revenues grew 13.13 percent to $507.6 million, the second straight double-digit increase .
For the first three months of the year, statewide gaming revenues are up 2.6 percent. Strip gaming revenues are up 6.7 percent.
Following release of the figures Friday by the Gaming Control Board, analysts told investors they wanted to see more than just three months of Strip gaming revenue totals before deeming the patient fully cured.
Last year, Strip casinos reported gaming revenues of $6.2 billion.
“Looking over the last several months, we believe results point to a continued uneven recovery on the Las Vegas Strip, with some positives and some negatives,” JP Morgan gaming analyst Joe Greff said.
BACCARAT BOOST
The March results followed February’s $1.073 billion revenue take statewide, which included a record-setting $696.1 million in gaming revenues from Strip casinos.
The month was fueled by a calendar switch for Chinese New Year, which attributed to record baccarat wagering.
In March, high-end baccarat play once again helped boost the Strip’s results.
Revenues from the game were $76.6 million, a 93 percent increase from a year ago. The amount wagered on baccarat was $686.9 million, up 39.1 percent.
For the first three months of the year, Strip baccarat revenues are up 25.5 percent.
Without baccarat, Strip gaming revenues in March still would have been up 5.2 percent.
Deutsche Bank gaming Carlo Santarelli cautioned that the baccarat results masked relatively flat figures in other gaming areas, such as slot machine play.
“Said simply, we believe the underlying trends are not as strong as the headline would suggest,” Santarelli said.
Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski echoed similar concerns, saying the baccarat numbers weren’t a surprise since the major Strip casino operators had reported first-quarter earnings.
“All told, March results were in line with management’s recent commentary, as it appears strong international visitation continues to pace the broader Strip recovery,” Wieczynski said.
“Slot volumes, generally a good indicator of U.S.-sourced leisure travel demand, were flat, suggesting modest headwinds continue to persist within the leisure segment.”
OTHER REVENUE RESULTS
On a whole, Clark County gaming revenues grew 7.42 percent in March. Downtown casinos saw gaming revenue totals increase 5.33 percent. Other areas of the county, such as Laughlin, North Las Vegas and the Boulder Strip, all suffered monthly declines.
Analysts were disappointed the locals markets didn’t show results in the same vein as the Strip. Slot machine wagering in the locals market was down more than 2 percent during the month.
“The slot volume numbers continue to show relative weakness,” said Union Gaming Group Managing Director Bill Lerner.
Washoe County, which includes Reno, saw gaming revenues increase 9.48 percent. Reno’s casino market experienced a 10.8 percent increase during March.
Gaming taxes collected in April based on March’s gaming revenues were $78.3 million, an increase of 9.62 percent over the same period a year ago.
For the first 10 months of the fiscal year, gaming tax collections are up 3.78 percent.
Contact reporter Howard Stutz at hstutz@reviewjournal. com or 702-477-3871. Follow @howardstutz on Twitter.
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Copyright 2013 Stephens Media Interactive GamingWire.
Gov. Brian Sandoval said Thursday he has held preliminary talks with other state governors on partnering with Nevada on Internet poker.
Sandoval didn’t name the states but gaming sources said Texas could be a target.
Sandoval, a Republican, supported Texas Gov. Rick Perry’s brief run for the GOP’s presidential nomination last year. Also, the Texas Legislature is considering the Poker Gaming Act of 2013, which would make it legal in the state to play poker online.
“I’ve talked with a few governors and I’m introducing the concept of compacting,” Sandoval said following a tour of the new corporate headquarters in Las Vegas for BMM International, one of two laboratories that tests gaming equipment for Nevada regulators.
“It’s very much in the early stages and we have a great opportunity because we have the infrastructure and other states have the players,” Sandoval said. “I’m hopeful we’ll continue to talk.”
In February, Nevada lawmakers passed Assembly Bill 114 and Sandoval signed the measure into law, all in less than seven hours. The bill allowed Nevada to move ahead with online poker without federal legalization and permitted the governor to enter into interstate compacts that would expand the customer base for Nevada casinos.
On April 30, Ultimate Poker, which is majority owned by Station Casinos, became the first legal pay-to-play poker website in Nevada. Just before midnight Tuesday, the website dealt its 1 millionth hand, officials said.
Other poker-only websites are in the process of being approved by testing labs and Nevada gaming regulators.
During a conference call Wednesday to discuss the opening later this month of the World Series of Poker, Caesars Interactive Entertainment officials expressed optimism a Nevada-based World Series of Poker Internet gaming website would become operational during the tournament’s six-week run at the Rio.
Nevada is not the only state that has legalized Internet gaming regulations. New Jersey and Delaware have approved measures and several other states, including California, Pennsylvania, Illinois and Iowa, are exploring bills. However, the Silver State has the nation’s only active and legal website.
“We’re already ahead of other markets,” Sandoval said. “People are signing up (for Ultimate Poker) from all over the world. Other companies are in the queue.”
Sandoval added that “there are some things that have to happen in other states” before compacts can be signed. Texas, for example, needs to legalize Internet poker and lawmakers have until May 27 to pass the measure before the regular legislative session ends.
Sandoval said he is happy with Nevada’s progress in Internet gaming. The governor said he wasn’t worried by a perceived notion that the websites are slow in coming to market.
“(The Gaming Control Board) needs to be extremely careful on how they do this,” Sandoval said. “Over time, people will forget about that part and see how successful it will become.”
BMM Vice President of Operations Travis Foley said the time frame to approve the technology has been “quicker than expected.” BMM worked on the Ultimate Poker approval.
“This is all new technology that has never been done in Nevada,” Foley said. “It’s been a very efficient process.”
Sandoval commended BMM for its expansion in Nevada. A measure approved in the 2011 Legislature allowed for the Gaming Control Board to contract with independent testing labs to certify equipment used in Nevada casinos, as well as Internet poker systems.
BMM, which has offices around the world, moved from a 7,500-square-foot facility on Eastern Avenue, to a 23,500-square-foot building on Pilot Road in the McCarran Executive Center.
Foley said the number of employees at the facility has doubled since the move to 65. Another 100 workers could be hired as business increases. BMM tests gaming equipment for several jurisdictions at it Las Vegas laboratory.
“This is exactly what we had hoped for when the law was approved,” Sandoval said. “BMM is a wonderful Nevada success story.”
Contact reporter Howard Stutz at hstutz@reviewjournal. com or 702-477-3871follow. Follow @howardstutz on Twitter.
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Copyright 2013 Stephens Media Interactive GamingWire.
From OnlinePokerReport.com for the week of May 20th
STORIES TO WATCH THIS WEEK
#1. PokerStars came out on the losing end of last week’s legal battle with the Atlantic Club Casino. But given the latest statement from PokerStars, and the fact that they’ve sunk $10mm+ into the deal to date, I expect PokerStars to file new litigation in the days ahead.
#2. iPoker has given skins until May 20th to verify the identity of all players referred by certain affiliates. Sources report the action is linked to suspected VPN play from banned countries – including the United States.
Watch iPoker’s traffic – and the traffic of major US-facing sites – this week for clues to the scope of the issue. Based on back-channel chatter, it’s potentially huge.
#3. Iovation will continue to be a story to follow. Nevada regulators are reportedly planning to take a closer look at the company, which has been linked directly to the cheating scandal at Ultimate Bet, most recently in secret recordings released by Travis Makar.
+ THE WEEK THAT WAS
- Lock Poker’s CEO gave an “interview” that failed to resolve player questions. And the room’s cash out rating continued to trail far behind industry standards.
- NV Gov Sandoval suggested Texas as a potential poker partner.
- A draft of Illinois’ standalone online gambling bill was released.
- Merge Network further segregated player pools.
- The DHS took action against the world’s largest Bitcoin exchange.
- A consortium of CA tribal gambling interests released an online poker bill proposal.
- WSOP.com announced plans to launch by summer 2013.
OPR OUTPUT
The latest edition of poker news podcast Rabbit Hunt (sponsored by CardRunners) is now available on iTunes.
PICKS
#GoodRead - Interesting commentary on the relative wisdom of buy in spreads from Kim Lund at QuadJacks. And PokerFuse has a fascinating take on The Rising Concern of Forced Disconnection Attacks.
State gaming regulators are looking into the relationship between 2-week-old Internet poker website Ultimate Poker and an unlicensed service provider used to identify new players.
In an email, Gaming Control Board Chairman A.G. Burnett said gaming agents are working with officials from Ultimate, which is majority owned by Station Casinos.
Over the weekend, Ultimate Gaming, parent of Ultimate Poker, said in a statement through a spokesman that on Thurday , it “discontinued” using services from Iovation. The company according to poker news resources, was linked to a 2008 online cheating scandal that brought down Ultimate Bet, which is not related to Ultimate Poker.
Burnett said Iovation was not a registered service provider with Nevada but the company’s services were utilized by CAMS, an Nevada-approved service provider.
“This is in the category of where the ultimate responsibility rests upon the licensee (Ultimate Gaming), and I know that they are addressing the issue,” Burnett said. “We, in turn, will analyze what we received back from Ultimate, and then decide how to proceed from here.”
The issue was first brought to light by players on several online gaming websites and chat rooms. Software provided by Iovation, according to PokerNewsDaily.com and QuadJacks.com, was used by insiders of now defunct Ultimate Bet to “look in” hole cards of other players.
According to the websites, poker players saw Iovation linked to the Ultimate Poker website and warned other players via message boards.
Ultimate Poker launched in Nevada on April 30. The website can only accept wagers from customers gambling on computers or mobile devices located in Nevada.
Contact reporter Howard Stutz at hstutz@reviewjournal. com or 702-477-3871. Follow @howardstutz on Twitter.
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Copyright 2013 Stephens Media Interactive GamingWire.
Read more +EV at UltimateGrinders.com
As the Duke of Fremont gets ready for trial, Andrew and Dan are among a field of 200 playing $135 No-Limit Hold’em in the Golden Nugget’s $25,000 guaranteed weekender event. Dave meanwhile hooks it to Planet Hollywood in chase of the Caesars Megabeat (which pays better on a Wednesday afternoon) and damn, that’s a pretty good promo when coupled with their new 20 for 20 freeroll.
At Mandalay Bay this weekend it’s the $10,000 Tiger Jam, and is Wikipedia racist for thinking Phil Ivey = Tiger Woods? The WSOP lays out their summer plan with their annual media conference call. And we check in with David Clark, aka DC n La, from New Orleans, where the WSOP-NOLA circuit event is happening and the WSOP Circuit national championship takes place next week. And when a showdown reveals Dan’s 5c8c < 4s6s … he’s left asking Andrew if it was just an unfortunate river in the midst of sneaky button play or really, against a fellow Texan, just a late-position cliche …
Vegas Grinders 1.14: Going Continental
Download audio file (VG1point14.mp3)
Resource Links
Bingo Has a Long History in the UK
Bingo has always been UK’s favorite game. Historically, it was played in bingo halls throughout the country by young and old alike. Traditional Bingo halls became a cultural phenomenon in the UK from the 1960s to the 1980s. When Bingo finally came online it created a huge craze, and today more than three million UK residents play in an online bingo sites community. Online Bingo has become such a popular past time because it allows players to participate in their beloved game from the ease of their own home.
Online Bingo is Easy to Play
Playing Online Bingo is as easy as creating an account and joining in on a game anytime you wish. This is so much more convenient than the strict schedules of the traditional bingo halls. UK players benefit from the ability to immediately access their Bingo games online at anytime and anywhere where they can connect to the Internet. Online Bingo is also extremely easy to join. It takes only a couple of minutes, as most sites use a very basic registration form. Deposits can also be accepted through many different methods of online payment.
Online Bingo Has Low Stakes
Online Bingo allows UK players to participate in gambling without having to gamble away all of their money since the stakes are so low. Many sites also offer new players a signing bonus, as well as a free initial deposit. This lets UK players to begin playing online bingo at little to no cost or risk.
Online Bingo Has a Huge Social Aspect
Online Bingo allows UK users to connect with players from all over the world, and most online Bingo communities offer players the opportunity to chat with other players using a chat room or instant messenger. This gives Online Bingo some of the functionality of a social networking site. Players have the unique chance to get to know people from around the world on an intimate level, while still enjoying their favorite game. This creates a sense of friendship in the online Bingo community, and probably is one of the main reasons why Online Bingo in the UK is so popular.
Monetary Rewards of Online Bingo
UK players have a huge monetary incentive to play Online Bingo. The prize winnings of Online Bingo can be tremendously lucrative. For serious players, there is a huge opportunity to win a substantial amount of money. Most Online Bingo sites stay open 24 hours a day, so the chance to win money is always there. When players are arranging their cards, they have to be intelligent and quick and use a good strategy to maximize their winnings. This makes Online Bingo extremely stimulating, and fun to play. Many Online Bingo communities offer a way to play Bingo for free, called “sandbox play”. This allows the opportunity for users to practice their Bingo techniques and strategies in a non-stressful, no-risk environment. Sandbox play is popular for new UK players who want to practice playing before they start gambling their money.
Big thanks to Travis Makar for coming on the show to digest the recent UB info dump. I personally cannot believe Greg Pierson & Russ Hamilton are allowed to roam free. Pokerati Dan joins us to help process the info, and Saramar rounds out a great show. *MUST LISTEN*
Download audio file (DDRadio-2013-May-16_02_05_03.mp3)
audio/mpeg (30 960 ko) The attorney for Chad Elie filed an amended complaint against Jeff Ifrah, Ifrah PLLC, and others yesterday in the District Court of Clark County, Nevada. Recall that the original complaint had some very serious allegations made as against Ifrah (none of which have been proved in court). The amended complaint has the same basic claims for relief, but expands upon some of the earlier allegations and offers some further particulars.
For example, paragraph 3 of the complaint now pleads that Ifrah is licensed as an attorney in the District of Columbia but not in Nevada, California, Florida, or Illinois, even though “he performed services for and provided legal advice to” Elie while Elie was in those jurisdictions. (Interestingly, however, it’s not specifically pleaded that Ifrah gave Elie Nevada, California, Florida, or Illinois legal advice.) Paragraph 7 is now explicit in introducing the client conflict that is a big part of Elie’s purported case: that Ifrah was conflicted in representing both PokerStars and Full Tilt (for whom he is alleged to have been rustling up processing solutions) and Elie (who was exposed to criminal sanction for providing those solutions). This doesn’t change much; the original complaint was clear on this point, but the amended version ties this characterization in earlier in the narrative and gives some additional factual basis for it.
Another new tidbit is the claim that Ifrah requested that Elie’s payments to him be characterized as payments for “consulting” services rather than legal services (see new paragraph 59). Ifrah is alleged to have done this so that he would not be conflicted out of representing criminal defendants when and if indictments for payment processing were handed down, as Ifrah expected, for example, like those coming out of the SDNY on Black Friday. (See new paragraphs 60 and 74.) Elie’s amended complaint states that Ifrah subsequently denied that he even acted for Elie in putting together Elie’s processing deals.
Assuming that the original complaint was served on or about April 11th, Ifrah and his firm appear to have 10 days to respond to the amended complaint after service.
Yesterday, it emerged that Dwolla, a US payment network, has stopped accepting transfers to and from Mt. Gox, the world’s largest bitcoin exchange, because of a seizure warrant issued by the US Department of Homeland Security. Here’s Chris Coyne‘s tweet with a copy of the message he received from Dwolla. Today, I received a copy of the seizure warrant dated yesterday and signed by US magistrate Susan K. Gauvey in Maryland. A copy of the warrant is here.
The warrant specifically targets the contents of Mutum Sigillum LLC’s (incorporated in Delaware and apparently a Mt. Gox subsidiary or sibling entity) Dwolla account held in the custody of Veridian Credit Union. Mutum Sigillum is alleged by the US to be an unlicensed money transmitting business within the meaning of 18 U.S.C. § 1960(b). For more on this definition, take a look at the warrant itself and at FinCEN’s guidance in respect of money services businesses and money transmitting businesses issued in March (here). The unlicensed nature of the MSB is the basis for the seizure order.
A confidential informant established new accounts with both Mt. Gox and Dwolla, funded his Mt. Gox account with US funds, exchanged currency in his Dwolla account for bitcoins, and then exchanged bitcoins back to dollars, directing Mt. Gox to transfer those dollars to his Dwolla account.
Based on the warrant, it appears that Mutum Sigillum was targeted solely because it is an unlicensed business, not because of any broader claims that (for example) bitcoin itself undermines the greenback. This is consistent with FinCEN’s March guidance. (Patrick Murck, General Counsel to the Bitcoin Foundation, wrote a great piece setting out his view that the guidance is an overreach. Worth reading if you haven’t yet.)
Apparently you can still remit to other exchanges through Dwolla to purchase bitcoins, and you can still remit to Mt. Gox to buy bitcoins (just not through Dwolla).
Webmasters in online gambling are once again facing affiliate programs wanting to change terms and conditions. Is there hope for the future? Plus industry ne…
Las Vegas Sands Corp., the gaming company controlled by billionaire Sheldon Adelson, reported first-quarter earnings Wednesday that easily surpassed analysts’ estimates as growth at its Macau properties accelerated.
The casino company last year increased its share of the Macau market with the opening of Sands Cotai Central, its fourth casino in the Chinese gambling enclave. Las Vegas Sands is building The Parisian, its second Cotai Strip resort at a cost of $3 billion.
The Parisian is scheduled to open in late 2015. Adelson told analysts in a conference Wednesday the company is seeking government approval to build its Tropical Garden retail mall in Cotai, a development with 900,000 square feet of “value oriented retail.”
Las Vegas Sands net income for the quarter was $572 million, or 69 cents per share, compared with $498.9 million, or 61 cents per shares, in the first quarter of 2012. Analysts surveyed by Yahoo Finance expected earnings of 67 cents.
Revenue for the first quarter reached $3.30 billion, beating estimates of $3.27 billion, and an increase of 19.5 percent from $2.76 billion in the same period last year.
“I am extremely pleased to report all-time record quarterly financial results that reflect strong revenue and cash flow growth and steady execution of our global growth strategy,” Adelson said.
Las Vegas Sands reported earnings after the markets closed Wednesday.
Shares of Las Vegas Sands were unchanged at $56.25 at the close of the New York Stock Exchange. The shares rose 0.96 percent, or 54 cents, to $56.79 in extended trading.
At Sands China Ltd., the company’s majority owned Macau subsidiary, net revenue jumped 39 percent to $2.02 billion, compared to $1.45 billion in the first quarter of last year. Net income increased 63.3 percent to $452.9 million, compared with $277.4 million.
“In Macau, we delivered record financial results, with outstanding growth and strong operating momentum reflected in every segment of our business,” Adelson said. “We welcomed 14 million visitors to our Cotai Strip properties during the quarter.”
Sands China operates The Venetian Macau, Four Seasons Hotel Macau and Plaza Casino, Sands Macau, and Sands Cotai Central.
Net revenue from the company’s Marina Bay Sands property in Singapore was down 6.3 percent at $794.9 million. Adjusted property EBITDA was $396.8 million for the first quarter .
Meanwhile, the company’s Las Vegas operations reported net revenue increased 7 percent to $411.5 million, while Sands Bethlehem in Pennsylvania revenue increased 6.3 percent to $122.9 million.
The operating results at the Strip properties, The Venetian, The Palazzo and Sands Expo and Convention Center, were favorably affected by higher than expected table games win percentage of 27.6 percent for the quarter, the company said.
The company also announced its next recurring quarterly dividend of 35 cents per common share will be paid on June 28 to shareholders of record on June 20. Adelson told analysts that Las Vegas Sands has returned $4 billion to shareholders over the last five quarters in terms of dividends.
“We have every intention of returning more cash to shareholders,” Adelson said.
The company’s capital return program could include bond sales, similar to a plan recently announced by Apple Inc. The Cupertino, Calif.–based company is said to be planning to help finance its $100 billion promised return to investors by selling $17 billion of bonds.
“We are very actively considering it,” Adelson said. “It’s on the table. We are near the finish.”
Las Vegas Sands said in a March regulatory filing that an internal audit had revealed “likely violations of the books and records and internal provisions” of the Foreign Corrupt Practices Act, a federal law that bars payments to foreign officials for favors.
Last week, Pricewaterhouse Coopers LLP, Las Vegas Sands’ auditor since it went public in 2004, resigned. The casino operator said there had been not reportable disagreements with Pricewaterhouse and that it is seeking a replacement.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893. Follow @sierotyfeatures on Twitter.
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Copyright 2013 Stephens Media Interactive GamingWire.
As chief regulator for New Jersey’s struggling casino industry, Matthew Levinson has an interesting balancing act.
The Casino Control Commission must ensure the market is free of corruption. At the same time, turning away potential investment could be viewed as counterproductive.
Levinson, 33, was appointed to a five-year term as the commission’s seventh chairman in August by Gov. Chris Christie.
In less than eight months on the job, he has experienced the gaming market’s financial ebbs and flows, the weeklong closure of casinos in October because of Superstorm Sandy, the emergence of online gaming giant PokerStars as buyer of a struggling Boardwalk casino, and the application of MGM Resorts International to regain its gaming license that it surrendered in 2010 after a stipulated agreement with the Division of Gaming Enforcement.
Also, New Jersey lawmakers approved legislation allowing Atlantic City casinos to offer Internet gaming, and Christie has pushed the casinos to allow sports wagering, a move being fought in federal court.
“I guess no one wants me to relax in this job,” Levinson said Wednesday in an interview in his commission offices inside the converted Boardwalk National Bank Building, which overlooks the Atlantic Ocean.
Levinson brings personal experience to the position. He was born and raised in New Jersey’s Atlantic County, worked as chief accounting officer at Resorts International, and interned at the Tropicana Atlantic City while attending Villanova University. He was chief financial officer of an architectural firm that did work for casinos in Atlantic City and New York before becoming full-time chairman of the three-member commission.
“You can’t overregulate any industry,” Levinson said. “If you overregulate, you lose a lot of possible investors. But you don’t underregulate, because you need to keep the integrity of casinos and the businesses. New Jersey does a great job. Our integrity is second to none.”
At the same time, Levinson wants to promote gaming in Atlantic City. He serves on the board of the Casino Reinvestment Development Authority, which was tasked by New Jersey lawmakers to collect 1.25 percent of casino gaming revenues and invest the money in community and economic development projects in Atlantic City and the state.
Since 1984, the authority has reinvested more than $1.8 billion in about 400 projects across the state. Of that, $1.5 billion has been reinvested in Atlantic City.
“I’m out to try and market to show Atlantic City is a great place to invest and have a business,” Levinson said. “Being from here, I see myself sometimes as cheerleader for Atlantic City as a whole. I’m optimistic Atlantic City is turning around.”
It hasn’t been easy.
Atlantic City’s 12 casinos have suffered since 2006, victims of the recession, declining credit markets, and gaming competition from states in the East, including New York, Pennsylvania, Maryland, Delaware and Ohio.
Atlantic City’s annual gaming revenues have declined more than 41 percent since 2006’s all-time high of $5.2 billion. Last year’s total of $3.05 billion was the lowest since Atlantic City casinos cracked the $3 billion mark in 1992.
The market has changed in that Atlantic City no longer relies on day-trip bus gambling business from New York City and neighboring states. Instead, the city is promoting itself as a resort destination with nongaming attractions. Last year’s citywide advertising campaign didn’t even show a casino.
“We have lost the convenience gambler,” Levinson said. “They’re not coming anymore because it’s more convenient to drive 15 minutes to a casino than driving an hour to Atlantic City.”
Some of the focus on nongaming has worked. Last year, luxury tax collections in Atlantic City increased 12.6 percent to $35.5 million, sales taxes grew 10.8 percent to $61.7 million, and occupied room nights in the hotels hit a record 5.2 million. Overall, nongaming revenues grew 2.8 percent.
Levinson also cited new amenities, such as The Walk, a large outdoor outlet shopping center at the base of the Atlantic City Expressway that continues to add stores, and Jimmy Buffett’s Margaritaville-themed casino, which is under construction .
Levinson hopes sports wagering is eventually approved, and state regulators are pushing through regulations for Internet gaming. The first drafts are expected by Thanksgiving.
“Internet gaming will happen quickly, but we want to make sure the technology is second to none,” he said.
Levinson couldn’t discuss PokerStars’ potential acquisition of the Atlantic Club and MGM Resorts, because the matters are under pending investigations.
He did say Atlantic City’s casinos were painted in a poor light after Superstorm Sandy. The Boardwalk’s gaming district suffered little if any damage from the storm.
He blamed national news reports that showed images of the Jet Star Roller Coaster that was washed off a pier by the storm and into the ocean. That took place in Seaside, about 60 miles north of Atlantic City.
Levinson said many Northeast residents thought Atlantic City and the casinos were washed away by Sandy.
“Sandy took a bite out of some of the momentum we had going the previous nine months,” Levinson said. “We lost something like 23,000 room nights, and we lost some 90 shows and meetings.”
Contact reporter Howard Stutz at hstutz@reviewjournal. com or 702-477-3871. Follow @howardstutz on Twitter.
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Copyright 2013 Stephens Media Interactive GamingWire.
Cantor Gaming signed a deal Thursday with the Atlantis casino in the Bahamas to provide the resort with mobile casino gaming and mobile sports wagering, as well as a new sports book. This is the first mobile wagering deal involving the Atlantis, according to the Las Vegas-based gaming company.
Terms of the deal were not disclosed. On Monday, the Atlantis will begin offering mobile gaming throughout the resort, including in the casino and pools.
Cantor Gaming will also build a sports book at Atlantic, which is expected to open later this year.
“We look forward to the launch of a new race and sports book for Atlantis,” said Lee Amaitis, president and CEO of Cantor Gaming.
Amaitis said the deal marks “an exciting new geographic footprint for our business.”
Cantor Gaming, an affiliate of Cantor Fitzgerald, operates seven sports books in Las Vegas, as well as a poker room at the Palms and mobile wager apps.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893. Follow @sierotyfeatures on Twitter.
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Copyright 2013 Stephens Media Interactive GamingWire.
Steve O’Dwyer
Photo: PokerStarsBlog.com
Today’s Boxscore
Steve O’Dwyer €1,224,000 – 2013 EPT Grand Final
Steven Silverman €775,000 – 2013 EPT Monaco High Roller
Paul Volpe €130,000 – 2013 EPT Monaco 6-Max
Steve O’Dwyer has been making a lot of noise in Europe for a longtime but it wasn’t until Sunday night that he was able to capture his first EPT title. He won on their biggest stage against arguably one of the toughest final table is major poker tournament history. O’Dwyer defeated Andrew Pantling for the title but that was just one hurdle at a table which included Daniel Negreanu, Jason Mercier, Noah Schwartz, Jake Cody, Grant Levy, and Johnny Lodden. It was a well earned victory for one of the favorites on tour.
***
Unless you’ve been living under a rock for the last few days, and that is certainly a possibility with Mother’s Day weekend, you would have noticed Travis Makar released some secret Ultimate Bet recordings which have set the world all a-twitter and might be the situation to cause 2+2 to implode upon itself. There is a ton of information to be derived from the recordings and you can find some of the best in the link dump below.
The winner of the week? Jen Larson who now finds Lock Poker to be the second biggest story in poker at the moment. Have no fear, the Eye of Sauron will be back on them soon enough.
Link Dump
Travis Makar Releases Damaging Ultimate Bet Recordings – The best writeup I saw with a breakdown of the recordings and all they contain. Pretty damning information for a lot of people involved and this is a good to start understanding it all.
Poker’s Watergate Moment – Another great recap by poker blogger “Grange95″ with his take on the UB tapes including links to the actual recordings.
Phil Hellmuth statement on UB – Phil Hellmuth (or more accurately, his agent Brian Balsbaugh) released a statement about the recent revelations in the UB recordings via Kevmath and the 2+2 forums. He gives the entire thing a bit of the soft touch and not much in the way of an explanation. He might get a little more attention with the WSOP about to kick off.
Ultimate Poker Severs Ties with Iovation – The news this weekend also had an impact on newly launched Ultimate Poker when it came to light they were using former UB-tainted Greg Pierson’s company Iovation for player verification.
Gambler won £7.8m by ‘reading’ the back of cards – In different news, the story of Phil Ivey and the UK casino holding back his winnings has spewed forth more (and actually interesting) material. So who is this mystery woman who can read cards like this?
OP-ED
The bill would allow investor groups to bet as a single entity much in the way hedge funds pool their money. Proponents of SB346 say it could bring millions of dollars in sports wagering to Nevada, money that now is bet illegally in the 49 other states where such gambling is forbidden.
While that sounds like a dandy idea on the surface, it would change a fundamental element of Nevada law. And although its backers say safeguards could be put in place to ensure transparency, multiple law enforcement sources and Nevada Gaming Control Board Chairman A.G. Burnett are concerned that just the opposite might be the case.
It might bring money, but it almost certainly would bring heat in the form of increased law enforcement scrutiny of the states sports gambling industry.
Heat is something one of SB346s key proponents, Cantor Gaming, knows something about these days. Cantor Gamings Lee Amaitis, who spoke on behalf of the bill at last weeks Senate Judiciary Committee hearing, arched eyebrows in the sports book industry when he touted his friendship with mega-sports bettor Billy Walters in a 2011 60 Minutes broadcast. The entity betting idea is not new to Walters, and Amaitis is a hedge fund expert and former CEO of Cantor Fitzgerald.
But the Amaitis-Walters friendship pales in comparison to the scandal that broke in October 2012 when Cantor Gaming sports book director Mike Colbert was arrested in Las Vegas in connection with a sports betting investigation out of Queens County, N.Y. Colbert, one of Cantor Gamings ground-floor employees, is charged with enterprise corruption, conspiracy to operate an illegal gambling enterprise and three counts of money laundering.
According to the indictment, he helped arrange for the transfer of at least $100,000 in gambling proceeds between Las Vegas and New York in July 2011. The case also involves associates of the Pinnacle sports book of Curacao and New York organized crime elements. Colbert was based at the M Resort. A Cantor spokesman said it is cooperating with the investigation.
Controversy, what controversy?
Sponsored by Sen. Greg Brower, a former U.S. attorney, SB346 appears to have plenty of friends on the Senate Judiciary Committee. In the recent hearing, Republican Brower and Democratic Sen. Tick Segerblom led a chorus of support for the bill.
It only works if the regulators can come up with regulations that make sense, Brower says. I think it has potential, but the devils in the details, and we need to get the details right. … This is something that has tremendous upside potential. Thats why I put the bill in.
The recent legislative concert wasnt officially sponsored by Cantor-related companies, but youd be forgiven for thinking so. A glance at the secretary of states website shows a generous pattern of campaign contributions: $139,500 since January 2012, including $25,000 to the Senate Majority PAC in recent months. Over that same time period, Amaitis has contributed $67,000, including $25,000 to Nevada Senate Democrats, $25,000 to Senate Majority PAC, and $10,000 to Brower.
If SB346 has no shortage of friends in the Senate, it also has powerful allies. Gaming regulation legal expert Bob Faiss and former U.S. Sen. Richard Bryan have helped craft its language.
At the hearing, the bill was embraced by former Nevada Gaming Control Board members Mark Lipparelli and Randall Sayre, who now earn their livings consulting and lobbying for elements of the gaming industry. Lipparelli spent the final months of his tenure with the state traveling and promoting Nevada as possessing the right regulatory atmosphere to regulate Internet poker once it becomes legalized. For his part, Sayre testified on behalf of controversial Internet poker entities in a previous legislative session.
While the former regulators are on board, it is current Control Board Chairman Burnett whose outfit would be challenged to enforce the new law. Would it send a red flag to the FBI, IRS, and the U.S. Department of Treasurys Financial Crimes Enforcement Network?
Burnett says he is all for any change that helps the states industry if it doesnt lead to a regulatory tangle.
It just begs a lot of questions of us as regulators, I think, Burnett says. Im certainly amenable to anything that will help the state of Nevada in any way, shape, or form as long as its above board and legal.
But, Burnett wonders, How do we ensure that the people are who they say they are?
I am left wondering whether the control boards already harried investigators will be able to add this complex assignment to their workload.
I do not wonder whether federal agencies charged with tracking money laundering will monitor the bill as it moves through the Legislature.
While former regulators Lipparelli and Sayre extolled its upside promise of millions of dollars to Nevada that were wagered illegally elsewhere, federal law only allows wide open sports betting in this state.
The odds favor the passage of SB346, but I think its proponents would be wise to take it off the board while they can.
John L. Smiths column appears Sunday, Tuesday, Wednesday and Friday. Email him at Smith@reviewjournal.com or call 702-383-0295. Follow him on Twitter @jlnevadasmith.
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Copyright 2013 Stephens Media Interactive GamingWire.
Read more +EV at UltimateGrinders.com
As a former dealer and pit boss on the Boardwalk, Mayor Lorenzo Langford is committed to seeing the city’s casino industry recover, despite his well-publicized disputes with New Jersey Gov. Chris Christie over reforms implemented by the state that the mayor says cut him and other city leaders out of the process.
Langford, Atlantic City’s mayor since 2002, was critical of Christie’s reform package that was passed by state lawmakers in 2011 and put authority over the city’s 12 casinos under the state through a newly created tourism district.
In an interview last Friday in his seventh-floor City Hall conference room, Langford said the first two years of Christie’s planned five-year program haven’t shown any notable improvements.
“The numbers don’t lie,” Langford said, citing gaming revenue statistics that showed declines of 6.9 percent in 2011 and 8 percent in 2012. Atlantic City tourism and gaming leaders, however, cite upticks in nongaming areas, such as luxury tax collections, sales taxes and occupied hotel room nights.
Langford supports the casino industry’s push to create more nongaming amenities, such as restaurants, nightclubs and retail offerings. He likes the glitzy, $30 million a year “DO AC” advertising campaign produced by the casino-funded Atlantic City Alliance that touts the market as a destination resort.
He only wishes the casinos had undertaken the effort 10 years ago, before gaming competition from Pennsylvania, New York, Maryland and Delaware and the tanking national economy took business away from Atlantic City.
“We’re trying to be like Las Vegas and rely more on the nongaming business,” he said. “We just started too late.”
Langford sits on the board of the Casino Reinvestment Development Authority, which was tasked by New Jersey lawmakers to collect 1.25 percent of casino gaming revenues and invest the money in community and economic development projects in Atlantic City and the state. Roughly $1.5 billion has been reinvested into Atlantic City since 1984.
Under Christie’s reform package, the authority was given more control over the casinos’ contributions. Casinos were also allowed to apply and recover the funds as investments into nongaming amenities on their properties.
For example, Resorts Atlantic City is paying for almost half its $35 million Margaritaville restaurant, beach bar and retail and expansion, which opens Memorial Day weekend, with authority contributions.
The Tropicana Atlantic City is using redevelopment money to add restaurants, including a branch of the Philadelphia-based Chickie’s and Pete’s sports bar, while renovating its Boardwalk entrances.
Langford’s concern was that the Atlantic City Housing and Economic Development fund that comes from the authority’s casino dollars not be touched. Over the years, the authority has built housing throughout Atlantic City, paid for by the fund.
“As long as those dollars are set aside for the purpose originally created, I don’t really care what happens to the rest of the money,” Langford said. “Historically, the CRDA has been pretty good at investing in the neighborhoods.”
Langford said he plans to seek a change that might allow the funds contributed by the casinos to be used as property tax rebates for residents.
“We’ve done a good job of building new units,” he said. “But we need to stabilize the current housing market.”
Langford believes in the casino industry. Before winning election to the City Council in 1992, he worked in the industry. He was one of the first dealers at Caesars Boardwalk Regency. He moved to Playboy Hotel Casino in 1981 as a floor person, and eventually rose to pit boss. He worked at the property when it was known as the Atlantis, and after it was closed and demolished, Langford worked for Trump Taj Mahal as a pit manager.
Langford’s concerns about Christie’s program include the design of the tourism district, which he says “segregates the poorer areas from the wealthier parts of Atlantic City.” When Christie announced the program at a news conference on the Boardwalk in 2011, Langford said he wasn’t given details ahead of time.
The approved plan effectively took control of the casino’s zoning and redevelopment issues away from the city and handed them to the state. Langford said he was able to kill through the Legislature one aspect of the plan that would have tasked Atlantic City with creating a second police force to cover the tourism district. The idea would have cost Atlantic City taxpayers $30 million a year.
Langford, a Democrat, and the Republican Christie have feuded off and on over the past few years. Christie attacked the mayor over his handling of Superstorm Sandy, saying Langford erred by allowing people to shelter on the barrier island ahead of the storm rather than making them evacuate.
Langford said Friday that Christie did not have all his facts when he spoke. Residents were advised to leave, he said, before Christie authorized evacuation.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
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Copyright 2013 Stephens Media Interactive GamingWire.