Violations in Las Vegas could impact casino applicants elsewhere; other gaming news
For the first time, gaming regulators in New York are publicly expressing concern about the suitability of several likely casino license applicants because of compliance violations in Las Vegas.
During a recent public meeting, Brian O’Dwyer, chairman of the New York State Gaming Commission, publicly acknowledged misgivings stemming from high-profile scandals involving Wynn Resorts and Resorts World (Genting), both of whom are among nearly a dozen likely suitors vying for three available downstate New York casino licenses.
“Of particular concern to me are that two of our…potential bidders for a new casino license, have been cited in Las Vegas for various violations of the law,” O’Dwyer said. “These allegations are serious.”
Wynn paid $130 million to settle a federal inquiry into questionable foreign transactions at the company’s Las Vegas casino. Genting, which operates Resorts World Las Vegas, is the subject of a 12-count complaint filed by Nevada gaming authorities which alleges a series of lapses in anti-money laundering compliance and violations of state regulations.
The latest doubts from New York’s regulatory agency come almost exactly a year after multiple unnamed sources told various media outlets that Las Vegas-born scandals involving MGM Resorts-operated properties could impact the casino giant’s bid in the Empire State.
Genting operates Resorts World NYC at Aqueduct Race Track in Queens. MGM runs Empire City Casino in Yonkers. Both are generally considered front runners to receive gaming licenses by industry experts and insiders.
The two operators are seeking a class III gaming license, which allows casinos in New York to offer live dealer table games and transition away from video lottery terminals to random-number-generator slot machines.
Wynn is proposing a new casino resort in Hudson Yards, an upscale neighborhood on Manhattan’s West side.
Another bidder for one of the casino licenses reportedly has a powerful political ally in their corner. And then didn’t.
Billionaire and New York Mets owner Steve Cohen has partnered with Hard Rock International in proposing a casino resort complex adjacent to Citi Field in Queens.
In less than 24 hours, Gov. Kathy Hochul went from allegedly supporting Cohen and Hard Rock’s idea to not backing it at all — at least publicly — because of political pressure from within the governor’s own party.
Below is a round up of other gaming and casino news from Las Vegas and elsewhere.
Smoke-free casino advocates continue push at gaming conference
Regional casino operators and smoke-free casino advocates and regional casino operators urged industry leaders to “follow the data” of how few customers smoke. A poll commissioned by slot YouTuber Brian Christopher and the American Nonsmokers’ Rights Foundation found 86 percent of casino patrons prefer playing at smoke-free casinos.
San Manuel Gaming and Hospitality Authority and Palms Casino Resort Award $1.5 Million in Grants to local nonprofits
The tribal operators behind the off-Strip resort-casino gave grants to 45 nonprofits through its Palms Casino Resort’s Palms Cares community outreach program, it announced on Wednesday.
The awardee list for grants – which ranged from $5,000-$200,000 – includes Jobs for Nevada’s Graduates Inc., Kenny Guinn Center For Policy Priorities, Nevada Public Radio, Nevada Legal Services, Food Bank of Northern Nevada (FBNN), Edward Kline Memorial Homeless Veterans Fund Inc., Foster Kinship and Nevada Blind Children’s Foundation.
Wall Street analysts share G2E takeaways
In a Friday note to investors following the gaming industry convention, Truist Securities analyst Barry Jonas said slot machine manufacturers continue to prioritize spin-offs of popular franchises, versus third-party intellectual property. Meanwhile, operators were mostly unphased by a recent preliminary injunction against Light & Wonder’s Dragon Train product, with many expecting the cabinets to stay on the floor with new game versions.
“Huff N-Puff game titles were cited most as replacements, with no real concerns noted from operators,” Jonas wrote in the note.
On casinos, Jonas said operators are largely in their budgeting periods and expect to keep their capital expenditures steady for next year.