New York City is at the heart of a fierce competition as two of the city’s most influential figures, Steve Cohen and Jay-Z, propose multi-billion-dollar casino projects. Both developments promise to inject substantial investments into the local economy, but they also face challenges as community concerns and political hurdles stand in their way.
Steve Cohen’s Vision for a Queens Entertainment Hub
Mets owner Steve Cohen has set his sights on transforming a 50-acre area near Citi Field in Queens into a massive entertainment hub. His ambitious Metropolitan Park project, which includes a new casino, aims to turn underutilized parking space into a bustling destination with parks, restaurants, shopping areas, and more. At the heart of the development lies a proposed casino to be managed by Hard Rock Entertainment as Cohen looks to secure one of New York’s limited casino licenses.
The project, estimated to pump $8 billion into the local economy, promises to bring over 23,000 jobs and revitalize the Willets Point area, long known for its autobody shops and scrapyards. Beyond gaming, Cohen’s plans include 20 acres of public parks, five acres of sports fields, and significant infrastructure improvements, such as enhancements to the Mets-Willets Point 7 train station, roads, and bike paths. Additionally, a “Taste of Queens” food hall and a live music venue are planned to showcase local culture.
However, the development is not without its challenges. A key issue lies in the site’s designation as parkland, requiring a state bill to “alienate” the land for commercial use. While Cohen has garnered significant support from local politicians, unions, and community groups, he faces opposition from figures like state Sen. Jessica Ramos, who has voiced her constituents’ concerns about introducing a casino to the area. Despite this, Cohen’s team remains optimistic, asserting they have ample time and support to push the project forward.
Jay-Z’s Bid for a Times Square Casino
Meanwhile, Jay-Z, through his entertainment company Roc Nation, is leading the charge to bring a casino to Times Square. Partnering with Caesars Entertainment and SL Green, Jay-Z’s proposed Caesars Palace casino aims to become a central attraction in one of the world’s most iconic districts. To win over skeptics and secure a coveted gaming license, Jay-Z has pledged a whopping $250 million in community grants to Hell’s Kitchen and the surrounding neighborhoods.
This community-driven approach begins with an immediate $15 million investment and ongoing contributions tied to 0.5% of the casino’s revenue. The funds will be managed by a community trust, ensuring that the money supports local improvements, such as childcare programs, job training, and after-school activities. Jay-Z emphasized the long-term vision of his proposal, stating, “Our vision is to give back to New York and ensure that Broadway, Hell’s Kitchen, and surrounding businesses all benefit—not just for a minute, but for the long term.”
Despite the financial promises, the Times Square casino project has encountered resistance. Local groups, including the Broadway League and the No Times Square Casino Coalition, argue that introducing a casino in such a densely populated area could negatively impact residents and the theater community. A poll conducted by the coalition found that 71% of Midtown residents oppose the casino.
In response, Roc Nation has engaged directly with the community, holding meetings with residents of nearby Manhattan Plaza, a well-known affordable housing complex for artists. To ease concerns, Roc Nation’s CEO Desiree Perez and former NYPD Commissioner Bill Bratton outlined security plans and the long-term benefits of the casino, offering $15 million in funding for the tenants’ association and an ongoing share of casino profits to support local initiatives.
The Race for New York’s Casino Licenses
Both Steve Cohen’s Queens project and Jay-Z’s Times Square proposal are competing for one of only three downstate casino licenses being issued by New York State. The competition is fierce, with other bids coming from high-profile entities, including Saks Fifth Avenue, Wynn Resorts, and Mohegan Sun. Each proposal must navigate a minefield of community concerns, political negotiations, and stiff competition, all while promising to bring substantial economic benefits to New York City.
As these casino giants battle for the state’s approval, only time will tell which project—if any—will come to life. One thing is certain: whichever project succeeds will dramatically reshape its respective corner of New York City, for better or worse.
Record-Breaking Year for Virginia Lottery with Online Sales Taking the Lead
Historic Milestone for Virginia Lottery
In an unprecedented shift, the Virginia Lottery has become the first in the United States to generate more revenue from online ticket sales than from in-person purchases during a fiscal year. The fiscal year ending on June 30, 2024, saw total lottery ticket sales reach an all-time high of $5.521 billion, marking a nearly 20% increase from the previous year’s $4.612 billion.
Lottery officials revealed that over $3 billion of these sales came from online transactions, while approximately $2.45 billion were generated through traditional brick-and-mortar retailers. The Virginia Lottery, which launched its internet games and ticket sales on July 1, 2020, has seen steady growth in its online segment, culminating in this record-setting performance.
A Growing Trend in Online Lottery Sales
Virginia’s success in the online lottery market is not an isolated case, as online lottery gaming is currently legal in nine states across the U.S., including Georgia, Illinois, Kentucky, Michigan, New Hampshire, North Dakota, North Carolina, Pennsylvania, and Virginia. The District of Columbia also allows iLottery, and Massachusetts is preparing to launch its online lottery operations next year.
John Hagerty, a spokesperson for the Virginia Lottery, noted that while the surge in online sales might raise concerns among lottery retailers, in-person sales have continued to grow alongside the digital expansion. The state currently has around 5,300 businesses acting as lottery retailers.
Lottery Profits Fuel Public Education
The Virginia Lottery plays a crucial role in funding public education, contributing approximately $2.3 million per day to K-12 schools. Since its inception in 1999, the lottery has generated over $13.6 billion in profits, all of which have been directed towards supporting primary and secondary education in the state.
Virginia Governor Glenn Youngkin praised the lottery’s latest fiscal performance, highlighting its impact on education. “Over the course of my administration, we have been able to achieve record funding for K-12 education, allowing for increased opportunities in the classroom,” Youngkin said. “I am thrilled that these record profits will provide the necessary support and resources for Virginia’s students.”
In the 2024 fiscal year alone, the lottery’s $5.5 billion in game sales resulted in a record profit of more than $934 million, with about 10% of the state’s K-12 education budget coming from lottery revenues.
$1 Million Lottery Win Sparks New Beginnings
In other lottery news, a Virginia Lottery player from Prince William County won $1 million in the Cash4Life drawing on August 3. The lucky winner, an avid lottery player, matched the five white numbers drawn, securing his choice between $1,000 a week for life or a one-time lump sum of $1 million.
Opting for the lump sum, the winner generously gifted the money to his son, Aaron Andrews, who had been living in his father’s basement with his wife since their wedding in April. “This was the best way to get him out of the basement,” the winner joked.
After federal and state taxes, Aaron Andrews will take home approximately $572,500, marking a significant step towards a new chapter for the young couple.
The U.S. commercial gaming industry has achieved an unprecedented milestone, with revenues soaring to $17.63 billion in the second quarter of 2024. This record-setting performance, reported by the American Gaming Association (AGA) through its Commercial Gaming Revenue Tracker, marks the 14th consecutive quarter of year-over-year growth and the highest Q2 earnings on record.
Broad-Based Growth Across Gaming Sectors
Gaming revenue witnessed growth across multiple sectors and regions, with 24 jurisdictions reporting increases compared to the previous year. This remarkable performance generated $3.73 billion in state taxes, underscoring the sector’s significant contribution to local economies.
Breaking down the revenue sources, land-based gaming remained the dominant force, accounting for 71.4% of total revenue, while online gaming captured 28.6%. Although online gaming’s growth rate slowed from 44% in Q2 2023 to 32.5% in Q2 2024, it remains a substantial contributor to the industry’s overall expansion.
The brick-and-mortar casino sector saw a modest 1.8% increase year-over-year, bringing in $12.49 billion. This growth was particularly strong in the latter part of the quarter, buoyed by new property openings in states like Illinois, Nebraska, and Virginia.
Meanwhile, the sports betting sector experienced an impressive surge, with a total of $31.75 billion wagered by Americans. This activity generated $3.16 billion in revenue, marking a 35.3% increase from the previous year. New market entries in states such as Kentucky and Maine played a key role in this growth.
iGaming also saw significant gains, with revenue reaching $1.98 billion—a 26.1% year-over-year increase. Rhode Island’s market debut in March notably contributed to this upward trend.
Industry Impact and Economic Contributions
The AGA’s Commercial Gaming Revenue Tracker provides valuable insights into the financial health of the U.S. gaming industry, offering state-by-state and cumulative data based on state revenue reports. The analysis spans 37 states and the District of Columbia, all of which had operational commercial gaming markets as of Q1 2024.
As the national representative body for the U.S. casino industry, the AGA plays a vital role in shaping a favorable regulatory environment for legal, regulated gaming. With a diverse membership that includes commercial and tribal casino operators, sports betting and iGaming companies, and gaming suppliers, the AGA supports an industry that contributes $329 billion to the U.S. economy and provides 1.8 million jobs nationwide.
Conclusion: The Link Between Revenue Growth and Online Gambling
The record-breaking revenue figures in Q2 2024 highlight the critical role online gambling continues to play in the gaming industry’s overall success. As more states embrace the digital gaming space, the sector’s growth trajectory shows no signs of slowing down. Whether you’re a seasoned player or new to the scene, the ongoing expansion of legal online gambling platforms offers numerous opportunities for entertainment and potential winnings.
Nevada’s casino industry is on track for an unprecedented year, setting a new monthly revenue record in May with a remarkable $1.32 billion. This surge is attributed significantly to the bustling activity on the Strip, which alone amassed $742.5 million, primarily driven by slot machines and table games. Despite a downturn in high-stakes baccarat, which saw a 7% drop in revenue, the overall performance remains robust, thanks to major sporting events like Super Bowl LVIII and a vibrant entertainment lineup.
Event Highlights and Visitor Engagement
Visitor engagement in May was near record levels, with 3.66 million people flocking to Nevada, boosted by events such as the Electric Daisy Carnival and a robust convention schedule. This nearly matched the peak of 3.67 million visitors recorded in March. The hotel sector also saw significant gains, with occupancy rates reaching 86.1% and the average daily room rate climbing to over $200, marking a 9.1% increase from the previous year.
Despite these positives, the broader regional markets presented a mixed picture. Washoe County experienced a slight downturn in gaming revenue, with a notable contrast between declines in Reno and gains in Sparks. Meanwhile, South Lake Tahoe reported a more pronounced decrease of 9.5% in gaming revenue.
The Surge in Sports Betting
The sports betting sector in Nevada reported a substantial rise in revenue, reaching $36 million in May, which represents a near 20% increase year-on-year. This growth occurred even as total wagers saw a slight decrease, highlighting changing consumer behaviors and market dynamics.
Strategic Adjustments and Future Prospects
The Nevada casino industry’s resilience is evident in its strategic event planning and operational adjustments. With stable hotel room rates and upcoming changes like the closure of The Mirage, which will reduce room availability on the Strip, casino operators are poised to reassess their pricing strategies to maximize profitability.
Implications for Online Gambling
This thriving casino revenue in Nevada, especially from sports betting, underscores the potential for significant synergies with online gambling platforms. As the physical and digital gambling environments increasingly intersect, especially through sports betting, the strategies employed by Nevada’s casinos could provide valuable insights into the online gambling sector. This connection is vital for understanding consumer trends and enhancing engagement across both platforms, offering a roadmap for integrated gambling experiences that cater to a diverse audience.
Arizona’s Historic Milestone
In a remarkable turn of events, Arizona has surpassed Nevada in monthly sports betting handle for the first time since the legalization of sports betting. The Arizona Department of Gaming’s April report reveals that the state’s total handle soared to an impressive $656.3 million, outperforming Nevada by a staggering $87.2 million.
Consistent Growth Despite Challenges
Arizona’s sports betting industry has been experiencing steady growth, with a notable 22.5% increase compared to April of the previous year. Even with a 13.6% dip from March’s record-breaking numbers, Arizona’s performance remains strong. This milestone places Arizona among the states that have exceeded $17 billion in all-time handle, recently surpassing Indiana.
The Power of Mobile Betting
The secret to Arizona’s success lies in its thriving mobile betting market. Contrasting with Nevada’s requirement for in-person registration, Arizona allows remote sign-ups, resulting in an astounding 99% of the state’s handle coming from mobile platforms. This ease of access has been pivotal in fueling Arizona’s growth in the sports betting space.
Leading Operators Dominate the Market
Industry frontrunners FanDuel and DraftKings have taken the lead in Arizona’s market. FanDuel reported gross winnings of nearly $27 million from a $230.3 million handle, maintaining an 11.7% hold. DraftKings generated $19.5 million in revenue with a 9.3% hold, surpassing $400 million in all-time revenue within the state. BetMGM also showcased a strong performance, achieving an 11.2% win rate and generating $8.5 million in revenue from a $76.4 million handle.
Challenges for Some Operators
However, not all operators enjoyed success in April. Betfred, Golden Nugget, and Unibet encountered challenges, with Betfred reporting the most significant deficit, paying out $50,400 more than its $3.8 million handle. The disparity between mobile and retail performance was also striking, with mobile operators collectively holding 9.8% of the $634.3 million handle, while retail venues struggled with a 1.3% win rate.
Financial Impact on the State
Arizona’s operators reported a gross revenue of $64.9 million with a 9.9% hold, representing a 32.1% increase from April 2023. The state collected $4.3 million in taxes from adjusted gross sports betting revenue of $43.4 million, demonstrating a substantial financial contribution to the state’s coffers.
Arizona’s Bright Future in Sports Betting
Surpassing Nevada in sports betting handle signifies a major milestone for Arizona’s burgeoning industry. With the dominance of mobile apps propelling growth and the strategic positioning of top operators, Arizona is cementing its position as a major player in the sports betting landscape. As the market continues to evolve, Arizona appears poised to capitalize on this momentum and further establish itself as a leader in the sports wagering sector.
