Second Philly Casino Faces Legal Challenges

Second <span id="more-963"></span>Philly Casino Faces Legal Challenges

Several appeals argue that the owners of Parx Casino are not legally allowed to operate a second casino in Philadelphia under state gaming laws.

The Southern Philadelphia casino that was provided a license by the Pennsylvania Gaming Control Board month that is last face an amount of appeals from rivals, a move that was expected by most observers as quickly as the license was awarded.

Those appeals are coming both from losing bidders in the certification process and also the SugarHouse Casino, which is already running in Philadelphia.

The new license had been awarded to the Live Hotel and Casino, home that may be located in the Sports Complex in South Philly.

Operators Greenwood Gaming and Cordish Cos of Baltimore say that the center will likely be synergistic because of the sports venues there, that could help retain visitors for multiple trips to the area day.

Appeals Were Expected Regardless of Winner

Also before that license ended up being awarded, it seemed that appeals were likely regardless of whom would win. SugarHouse has argued that a 2nd casino in the city will simply take business away from their website without growing the market, while there have been sure to be hard feelings from losing bidders.

In the end, at the least four appeals had been filed: three from losing bidders and another by SugarHouse. There were a true number of different arguments brought forward by those submitting the challenges, but they mostly boiled down seriously to two points that were also brought up throughout the licensing process.

First, there is the idea that the casino market within the Philadelphia area, and maybe in the entire region, is currently saturated. This argument is primarily being made by SugarHouse, as the current casino is the main one most likely to miss out should an extra casino be opened into the town.

‘ The addition of another casino will not develop the market,’ said solicitors representing SugarHouse. ‘rather, it shall result in the cannibalization of revenues from existing casinos to the detriment of both the Philadelphia gaming market as an entire, in addition to the commonwealth.’

Eligibility of Ownership Group Questioned

The argument that is second which appears to have been brought up in all four appeals in a few kind or another, is that Greenwood Gaming is really ineligible to receive a casino license into the state of Pennsylvania.

That is due to the act that the business already owns and operates the Parx Casino in Bensalem; according to those appealing the choice, giving this venue that is second Greenwood violates the state’s gaming laws.

‘Certain individuals and entities who maintain an ownership desire for Stadium also maintain an ownership desire for Parx, which surpass the thresholds stated in the Gaming Act,’ said Frank Keel, a representative of Bart Blatstein, who proposed building the Provence casino in Philadelphia’s Center City. ‘The Gaming Act prohibits entities which have category one licenses, that is racetracks, to even make an application for a category two license, which is slots, and Parx owns a race track in Bensalem.’

A similar appeal was also filed in behalf of Market8, another proposed Center City Casino. The third losing applicant, PHL Local Gaming, has also appealed the casino on the lands that the Greenwood-Cordish casino ‘would represent a breach of both the letter and character of the Gaming Act.’ PHL also believes that the board didn’t precisely consider district support or opposition of each project, or the ‘mandate to ensure minority inclusion as a part of the winning bid.’

The appeals were filed week that is late last just over time to meet a 30 day deadline to challenge the gaming control board’s choice within the state Supreme Court.

Macau Casinos See Major Changes in 2014

Macau gambling enterprises have seen a lot less traffic inside their VIP rooms since the Chinese federal government started a corruption crackdown. (Image: Wikimedia Commons)

Macau ended up being already the planet’s gambling hub that is largest going into 2014, and it absolutely wasn’t even close. Nothing that happened over the year that is past threatened to alter that: the Chinese enclave nevertheless produces revenues that outstrip Las Vegas many times over.

But profits have actually started to fall significantly for the time that is first industry opened up to foreign operators, and there are certainly changes in shop for operators and players alike.

Mainland Crackdown Hurts VIP Investing

Historically, Macau’s dominance has been built on the backs of high-stakes VIP gamblers who are able to invest tens and sometimes even hundreds of thousands on a bet that is single. But that market has been drying up due to new policies from the Chinese government that have begun to hurt the movement of cash to Macau.

At problem is a major campaign to reduce corruption in Asia, one which includes scared off many gamblers who want to illegally bring cash from the mainland to Macau.

There are restrictions to exactly how much cash is allowed become taken off the mainland legally, but whales had previously had the oppertunity to find plenty of ways around this. Junkets would give out (unenforceable) loans, while pawn stores in Macau would fraudulently process transactions that led to cash that might be utilized by gamblers or cash launderers.

These methods haven’t disappeared by a long shot, but they have actually tightened up a bit. Fewer officials are ready to help gamblers smuggle funds into Macau, and there are now lower limits on the total amount of money which can be withdrawn from a UnionPay debit card each day. Which has been enough to see large year-over-year decreases in profits for Macau’s gambling enterprises: in October alone, profits dropped by a record-breaking 23 per cent.

Casinos Hope to Attract More Mass Market Traffic

Even before the strain on VIP play started initially to hit home, Macau was currently focused on bringing in more ‘mass market’ gamblers: after all, there was only a great deal that the high-end market could develop for them. The crackdowns that hurt their whales simply made those low-spending gamblers a much more focus that is immediate and the one that may have helped to minmise the damage the market saw while the VIP sector declined.

As expected, Macau saw growth that is significant the mass market segment early in 2014. But that too started to slow since the year wore in.

Those on the higher end for the mass market designation, big spenders whom don’t qualify for VIP status, were affected by the new government policies just as much as the highest rollers who occupy exclusive personal gambling rooms.

A few of the slowdown has also been attributed to a smoking ban in Macau casinos, one that only applies to the casino that is general and not VIP rooms that are divided from the rest of the gambling areas.

Labor Issues Plague Macau

There is also the extremely genuine issue of work strife in Macau, a challenge that is hitting the gambling industry on two fronts. For just one, there exists a potential work shortage as increasingly more casinos are increasingly being built and there are few people left in Macau that are looking for jobs.

Which includes increased force on wages, not just in the casinos however in other companies that need certainly to contend with the gambling industry directly for jobs.

Nevertheless, many casino employees think they are becoming a raw deal from their companies. Labor unrest is increasing in Macau, with several demonstrations and protests having taken place in 2010.

Hundreds of casino employees walked off of their jobs in early October as part of a movement to need better benefits and greater wages from an industry that is raking in enormous profits even with the recent market slowdown.

New York Governor Andrew Cuomo Calls For Fourth NY State Casino License

New York Governor Andrew Cuomo flip-flops on Southern Tier casino license concern after the controversial choice to ignore the region sparks indignation. (Image: Michael Nagle/ Getty)

Governor of New York Andrew Cuomo has written to their state’s Gaming Commission to suggest bidding should be reopened for the casino that is fourth license, to encompass the Southern Tier area of upstate New York.

The area ended up being overlooked by the Gaming Commission panel when three licenses were awarded with other regions on December 17.

Initially, when 22 casino companies applied for the straight to bid for a share of the expanded New York casino gaming market, four had been up for grabs, meaning there was range to reopen the putting in a bid for a license that is final.

And while the Gaming Commission is under no obligation that is legal act on Cuomo’s demand, it does fall under their authority being a state agency to request it, and the letter is likely to involve some influence.

‘As this would be the license that is last in New York State, it may excite national competition by interested events that submit better yet applications compared to the very first round,’ recommended Cuomo. ‘ in the event that you agree for this demand, the [casino board] should quickly establish a procedure for the license that is fourth might be complete as expeditiously as possible, while the Southern Tier needs jobs and investment now.’

Answer the Fracking Question

While Cuomo initially stated he would stand by your decision of this board, his sudden championing associated with economic requirements regarding the area may have something to complete with his choice to ban fracking in the area because of recognized health risks. The Southern Tier is definitely an area rich in shale and gas, and fracking might have brought a large boost that is economic.

He may have been embarrassed into action by the reaction of Jeff Gural, owner of Tioga Downs, certainly one of the two groups bidding for the area, and hotly tipped for a license. Gural was infuriated by your decision of the board, which, he said, simply made no sense. A casino in the Southern Tier will be completely logical, he argued, because the closest competitor is Mohegan Sun at Pocono Downs, 90 miles south in Wilkes-Barre, Pennsylvania

‘It’s got nothing to do I have enough money,’ Gural fumed with me. ‘but the social people for the Southern Tier, they just told them ‘no fracking’ now they give them a doubleheader of not merely no fracking, but no casino and they’re placing it within an area where there are five other casinos?’

Choice Sparks Fury

‘And what really pisses me off,’ he continued, ‘is the governor asked me to pay $800,000 of my cash to pass law that is local, Proposition One [to expand casino gaming in the state]? What was that all about? I mean… the thing that is whole sickening to be honest with you.’

Politicians for the area also expressed their dismay, including Senator Thomas Libous who really challenged the governor to intervene. ‘It’s great news,’ Libous said this week. ‘He’s going to go to bat for the Southern Tier. We’m very pleased with that. I’m hopeful the commission will look to opening the method for that fourth license in the Southern Tier.’

Lee Park, a spokesman for the commission while the board, gave it all a maybe that is definite.

‘We have received the letter and are reviewing it,’ he said.