Atlantic City, a staple in the American casino and tourism industry, faces a concerning decline in visitors to its famed brick-and-mortar casinos, prompting urgent calls for action from local union leaders and the Casino Association of New Jersey. Recent revenue reports have revealed a downturn in the number of patrons frequenting the city’s gambling resorts, igniting worries about the broader implications for Atlantic City’s economic health and workforce.
Urgent Call for Intervention
Donna DeCaprio, the influential president of Unite Here Local 54, the city’s largest casino workers union, has sounded the alarm, urging both city and state officials to take immediate steps to counteract the declining trend. After a report from the state Division of Gaming Enforcement showed a 1.6% year-over-year decline in casino gross gaming revenues for February 2024, DeCaprio highlighted the importance of addressing the issue not just for the industry, but for the entire community dependent on tourism and casino revenues.
Casino Workers’ Livelihoods at Stake
Representing over 10,000 casino workers, Unite Here Local 54 is at the forefront of advocating for measures to reverse the negative trend affecting its members’ livelihoods. The union’s call to action underscores the critical situation facing thousands of workers amid the downturn in casino visits, stressing the need for legislative awareness and intervention.
Online Gaming on the Rise as Traditional Casinos Struggle
While traditional land-based casinos have experienced a decrease in revenues, online gaming has surged, recording a nearly 28% increase in revenues over the same period. This shift highlights changing consumer preferences and the growing challenge facing Atlantic City’s casino industry.
State and City Officials Respond
The concerns raised by DeCaprio and the Casino Association of New Jersey have resonated with state lawmakers and industry officials, who acknowledge the pressing need to address the factors contributing to the visitor decline. Mark Giannantonio, president of the Casino Association, and Senator Vince Polistina have agreed that developing solutions to bolster Atlantic City’s appeal to tourists and gamblers alike is urgent.
A Call for Comprehensive Solutions
The decline in visitors has been attributed to various factors, including the need for improved safety, cleanliness, and infrastructure in the city. Critics argue that without addressing these fundamental issues, Atlantic City will continue to struggle to attract tourists and recover its position as a leading casino destination.
As Atlantic City confronts this pivotal moment, the response from city and state officials could shape the future of the city’s economy and its status as a premier gambling and tourist destination. The industry and its workers await decisive action to revive Atlantic City’s fortunes and ensure its continued vibrancy in the face of evolving challenges.
Las Vegas Sands, now at the helm of the Dallas Mavericks, is amplifying its campaign to legalize casino operations in Texas. The corporation has initiated a funding drive through the Texas Destination Resort Alliance, aiming to bring the legalization issue directly to voters within the state.
The initiative marks a significant push towards integrating casino resorts with major entertainment and sports venues in Texas. This vision aligns with the aspirations of former Mavericks owner, Mark Cuban, who, despite selling the majority stake to Sands, remains influential in the team’s basketball operations. Cuban has been a vocal supporter of the idea, envisioning a new arena for the Mavericks that includes a casino resort.
The Texas Destination Resort Alliance, representing a broad spectrum of Texans, is advocating for a state constitutional amendment. This amendment would pave the way for the establishment of destination resorts in Texas’ major cities. “We aim to grant Texans the power to decide on creating destination resorts in our state through a constitutional amendment,” the alliance stated on its platform.
Challenging the Status Quo in Gaming Legislation
Attempts to widen the scope of gaming in Texas have faced resistance within the state legislature for several years. In response, Sands established a political action committee in 2022, seeking to shift the perception of gaming among Texans and lawmakers alike.
One of the significant hurdles has been gaining the support of enough Republican legislators. Moreover, expanding gaming operations in Texas would necessitate a state-wide vote to amend the constitution, making the petition an essential step towards bypassing legislative roadblocks.
The campaign also receives backing from notable entities such as the Chickasaw Nation, which owns Winstar Casino in Oklahoma and Lone Star Park in Dallas. Additionally, efforts to legalize sports betting are gaining traction, with endorsements from figures like former governor Rick Perry of the Texas Sports Betting Alliance and Dallas Cowboys owner Jerry Jones. Jones highlighted the initiative’s goal to “enable Texans to choose whether they want this activity to be regulated safely or to persist in the shadows, managed by betting platforms based outside of Texas.”
In a related development, Dallas city officials are exploring zoning adjustments to accommodate poker clubs, further indicating a growing interest in expanding gambling options within the city. This series of events marks a pivotal moment in Texas’ gambling legislation, potentially transforming the state into a new frontier for casino and sports betting enthusiasts.
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In a striking testament to the resilience and stability of the gaming industry in Louisiana, the state’s casinos have collectively generated a remarkable revenue of $194.6 million in February 2024. According to the latest figures released by the Louisiana Gaming Control Board, this represents a modest yet significant 1.0% increase from the same month last year, underscoring the sector’s sustained growth amidst fluctuating economic conditions.
Lake Charles Leads Despite Minor Setback
Despite experiencing a 4.5% decline in revenue compared to February 2023, the Lake Charles gaming district emerged as the top performer, amassing $69.8 million. The Golden Nugget Lake Charles and L’Auberge Casino Resort were the major contributors, bringing in $24.8 million and $24.6 million, respectively. This showcases the district’s enduring appeal and its crucial role in the state’s gaming industry.
Revenue Growth Across Districts
Other gaming districts have also reported positive outcomes, reflecting the industry’s overall health:
- Shreveport/Bossier: With a 1.1% increase over the previous year, this district generated $48.1 million, with Margaritaville Resort Casino leading the pack.
- New Orleans: This district nearly matched Shreveport/Bossier’s performance, raking in $47.7 million and marking a notable 4.4% year-on-year growth. Harrah’s New Orleans was a significant contributor, accounting for nearly half of the district’s revenue.
- Baton Rouge: Though it reported the lowest revenue at $22.8 million, Baton Rouge witnessed the highest year-over-year increase at 10.7%. This surge is attributed mainly to the L’Auberge Casino Hotel, which contributed 65% of the district’s revenue.
Online and Retail Sports Betting: A Growing Contributor
The report also highlights the contributions of online and retail sports betting to the state’s gaming revenue, with figures standing at $30.4 million and $0.8 million, respectively. This sector’s performance is indicative of the evolving landscape of gaming in Louisiana, where traditional and digital forms of gaming coalesce to drive growth.
The Road Ahead
As the Louisiana gaming industry continues to navigate through the challenges and opportunities that lie ahead, the February revenue figures are a promising sign of its capability to maintain stability and adapt to changing market dynamics. With strategic investments and an emphasis on enhancing customer experience, the state’s casinos are well-positioned to sustain their growth trend and continue contributing significantly to Louisiana’s economy.
In a notable move within the gaming and hospitality industry, Robert Goldstein, CEO of Las Vegas Sands Corp. (LVS), has parted with a substantial portion of his company shares, marking a transaction that has captured the attention of investors and industry observers alike.
The Transaction Details
A recent filing with the Securities and Exchange Commission (SEC) has revealed that Goldstein divested 100,000 shares of Las Vegas Sands’ Class A common stock, a transaction valued at approximately $5.2 million. This sale took place last Friday, and the SEC’s Form 144 documentation provides a detailed account of this significant financial move. Post-sale, Goldstein remains deeply invested in the company, retaining 764,271,386 shares, which, at the current share price, positions his holdings around the $390 million mark.
Background and Context
Goldstein’s tenure at Las Vegas Sands spans nearly three decades, during which he has played pivotal roles, including chief operating officer and president, before stepping into the CEO shoes in 2021, following the demise of the company’s founder, Sheldon Adelson. The sale of these shares, acquired as compensation over the years, may reflect various strategic considerations, although no specific reasons for the sale have been disclosed.
A Glimpse into Executive Stock Sales
This move by Goldstein is not isolated in the gaming industry; it reflects a broader trend where executives occasionally liquidate portions of their holdings, often for personal financial strategy reasons. Earlier instances, such as DraftKings executives selling close to $80 million worth of shares and Wynn Resorts executives offloading $3 million in stock, underscore this pattern. These transactions, though personal, offer insights into the executives’ perspectives on the company’s valuation and future prospects.
Implications for Las Vegas Sands and the Gaming Industry
Goldstein’s decision to sell a fraction of his shares does not seem to diminish his overall stake in the company’s success, given his substantial remaining shareholding and vested interest through options and restricted stock units. This event adds to the narrative of executive movements within the gaming industry, providing a window for stakeholders to gauge insider sentiment about the sector’s future direction.
As Las Vegas Sands continues to play a dominant role in the global hospitality and gaming markets, industry watchers and investors will likely monitor such insider transactions closely, interpreting them as potential signals of confidence or caution regarding the company’s and the broader industry’s outlook.
In an ambitious stride toward dominating Asia’s casino industry, the Philippines is eyeing the position of the continent’s second-largest gambling hub, aiming to outshine Singapore with its expanding portfolio of integrated resorts and a burgeoning online gambling sector. As the Philippine Amusement and Gaming Corp (Pagcor) spearheads these initiatives, the nation anticipates a surge in both domestic and international tourism, propelled by significant investments in the casino and entertainment sectors.
A New Era of Gaming in the Philippines
Alejandro Tengco, Chairman and CEO of Pagcor, has confidently asserted the Philippines’ potential to eclipse Singapore in the gambling industry, citing a strategic focus on integrated resort developments and online gaming innovation. In a detailed conversation with Bloomberg, Tengco emphasized the stagnation risk Singapore faces if it ceases to expand its gambling facilities. “If Singapore doesn’t expand, they will plateau. Don’t be surprised if next year we will surpass them,” he stated, highlighting the dynamic growth trajectory the Philippines is on.
The forthcoming opening of a flagship integrated resort by Bloombery Resorts Corp, owned by billionaire Enrique Razon, marks the beginning of this ambitious expansion. This project is just the tip of the iceberg, with up to eight additional casino ventures in the pipeline for Manila, Clark, Cebu, and Boracay, each showcasing the country’s commitment to becoming a premier gaming and entertainment destination.
Record-Breaking Revenue Projections
The optimism surrounding the Philippines’ casino sector is backed by impressive financial forecasts. Pagcor anticipates a record-breaking gross gaming revenue of 336 billion pesos ($6.1 billion) this year, an increase from the previous year’s 285 billion pesos. This projection not only underscores the industry’s recovery post-Covid but also its readiness to compete on the global stage. Singapore’s annual gross gaming revenue, in comparison, is estimated by Tengco to hover around $6 billion, setting the stage for a close competition.
Boosting Tourism through Casino Entertainment
A significant driver behind the Philippines’ casino expansion is the potential for increased tourist arrivals. The country aims to attract 7.7 million foreign tourists this year, an effort to bounce back from the dip in numbers caused by the pandemic. Despite a decrease in Chinese tourists due to ongoing geopolitical tensions, Tengco remains optimistic about attracting high rollers from across the globe, especially from China, to the country’s casinos.
The Rise of Online Gaming
Pagcor is not only focusing on physical casino infrastructure but also on harnessing the potential of online gambling. With plans to launch its own online gaming website and seeking a joint venture partner for its operation, the Philippines is poised to offer a comprehensive gambling experience that includes both traditional and digital platforms. This dual approach could give the Philippines a competitive edge over Macau, as Tengco pointed out, “Our advantage over Macau is they don’t have online gaming.”
Privatization and Regulation: The Future of Pagcor
Looking ahead, Pagcor is preparing for a significant transformation. The agency plans to privatize its casino assets by late next year or early 2026, transitioning from a casino operator to a purely regulatory body. This strategic shift aims to attract more investors and solidify the Philippines’ position in the global gaming industry. With expected proceeds ranging from 60 billion to 80 billion pesos from the sale of its casino assets, the future looks promising for the Philippines as it bets big on becoming Asia’s next top casino destination.
