Category Archives: Gambling

Seventy-six entertainment venues have been shut down across China while 26 others had their operations suspended as the Beijing government intensified its crackdown on gambling, Chinese media outlets reported.

China, as we all know, likes to keep a tight leash on the fun stuff. Gambling is banned in the country, and the government is making good on its promise to severely punish both land-based and online gambling operators who target Chinese gamblers.

This year, law enforcement officers have investigated more than 38,000 entertainment venues nationwide, according to the China Youth Daily. Of this number, 355 cases have been busted.

The Ministry of Culture (MOC) was quoted by the news outlet saying that any entertainment venues that allow their customers to gamble or contain video machines on which people can gamble will be shut down and have their business licenses revoked.

In Shanghai, authorities discovered 83 entertainment venues that fit MOCs description, while 11 venues in Hainan province were shuttered in April for allowing their customers to gamble.

Meanwhile, China has stepped up its crackdown on cross-border gambling. Beijing authorities have joined forces with their counterparts in the Philippines to hunt down transnational cyber gambling operations that had mushroomed in the Southeast Asian country.

The two countries had already flexed their law enforcement muscle by shuttering four illegal websites, rounding up 99 people, and freezing more than 1,000 bank accounts in April, according to Chinas Public Security Bureau.

The MPS hailed the April cross-border bust as the first such coordinated anti-gambling action involving the two countries law enforcement agencies. The MPS said it would continue to strengthen international cooperation in targeting illegal gambling, be it online or land-based, to ensure greater fugitive repatriation of gambling operators who target bettors on the Chinese mainland.

The MPS has teamed with police in other jurisdictions, like in Taiwan, where it cooperated with Taiwanese officials in Taiwan in multiple actions against cross-border online gambling operations, although Beijing continues to insist that Taiwan is a renegade province of China rather than a truly independent nation, so this doesnt actually qualify as international cooperation under Beijings semantic rules.

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China's crackdown on gambling zeroes in on 'entertainment' venues - CalvinAyre.com

The state House and Senate are waging another high-stakes battle over how to expand gambling options to generate desperately needed state tax revenue and fix a constitutionally flawed casino law municipalities rely on for extra cash.

And, if the battle turns out like last year, everyone could go home broke.

Last June and into this year, the two chambers have failed to compromise on additional ways to gamble even though the current budget anticipated $100 million in new revenue from those options. Lawmakers also have missed court-ordered deadlines to fix a part of the state's 2005 casino law the state Supreme Court justices deemed unconstitutional because it did not set "uniform" taxes for each casino as it relates to $142 million in "host" fees they pay nearby communities.

That history could be repeating.

Tonight the Republican-controlled House, with Democratic support, is expected to alter a Senate bill that not only addressed the host fee court problem, but also welcomed new gambling options wagering online, buying lottery tickets over the Internet, and playing fantasy sports from home or while waiting in an airport.

In a 23-6 Rules Committee vote, the House Wednesday afternoon amended the Senate bill so it also would legalize 40,000 video betting machines in bars, VFWs, volunteer fire halls, restaurants, bowling alleys, truck stops, hotels and other places licensed to sell alcohol. The machines, known generically as video-gaming machines, or VGTs, are strongly opposed by all but one of the state's casinos.

Adding the VGT component will deliver even more tax money to the budget and help shore up the state Lottery, which supports programs for senior citizens, said House Majority Leader Dave Reed, R-Indiana. The bill also fixes the host fee problem caused by the court decision, he said.

"We think this is a good start to final budget negotiations," Reed said after the committee vote.

Full House debate on the bill starts about 8 p.m. tonight. Approval would send it to the Senate, where approval is far from certain. The Senate previously has rejected VGT bills because of concerns they will over-saturate the gaming market and cut profits and tax revenues generated by the state's dozen casinos.

"We are still working with the Senate, Reed said Wednesday afternoon.

If the bill dies, either in the House or Senate, it could leave a $150 million hole in next year's budget. That's how much Gov. Tom Wolf's administration has projected in estimated tax revenue from expanding gambling in the fiscal year starting July 1. It could also jeopardize the local host fee fix, leaving municipalities like Bethlehem and Allentown in a financial lurch.

Sen. Pat Browne, R-Lehigh, the chamber's Appropriations Committee chairman and a VGT opponent, declined comment ahead of the full House vote.

Sands Casino Resort Bethlehem this weeklaunched a $1 million advertising campaign to stop VGTs. The campaign, by a Sands-funded lobbying group called Pennsylvanians For Responsible Government, includes an online landing page, radio ads and 30-second television spots telling people state lawmakers want to "create over 12,000 casinos" across Pennsylvania. The ad also warns that slot machines can be placed in the 35 nursing homes with liquor licenses, including three in the Lehigh Valley.

Sands Casino, perhaps more than any other in the state, has much to lose if VGTs are legalized and according to sources, it already has. Parent company Las Vegas Sands Corp. had a tentative deal to sell its Bethlehem Casino complex to MGM Resorts International for $1.3 billion. However, sources said, MGM pulled out of the deal in part because of the threat of VGTs.

Las Vegas Sands Corp. spokesman Ron Reese had no further comment and referred to the company's previous comment that the approval of VGTs would cause Sands to re-evaluate its future investment in the Bethlehem property.

Sen. Lisa Boscola, D-Northampton, a VGT proponent, has said adding VGTs will not hurt casinos and the ads will not affect her vote in the Senate.

Sands is not alone in its opposition to VGTs. Ten other casinos oppose it. The only licensed casino that wants VGTs is Penn National Gaming, owner of Hollywood Casino in central Pennsylvania. Penn National has a video gaming wing already operating in Illinois and hopes to expand that business to Pennsylvania.

"That many machines added to the market would definitely have an impact on casinos," said John Cunnane, a Wall Street gaming and leisure analyst for Stifel Investment Services.

The House amendment would charge licensing fees of $50,000 to VGT manufacturers and suppliers; $25,000 to companies that operate the machines $100 to any place that hosts them. The tax rate then would be 37.5% on revenue generated from the machines, with most of the money going to the state and smaller percentages going to counties and municipalities. The amendment did not list a corresponding revenue estimate from the tax rate.

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House push for statewide betting machines again threatens lucrative gambling expansion effort - Allentown Morning Call

Forbes

Legalized Gambling Would Fuel Another Rise For ESPN Forbes ESPN has a problem. It's shedding subscribers fast. The ongoing trend soured an otherwise positive first quarter for parent Disney, whose theme parks and movie division performed exceedingly well. Of course, this is hardly news. The network's problems ...

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Legalized Gambling Would Fuel Another Rise For ESPN - Forbes

A childhood New Years holiday spent playing cards with his family planted the seeds of a gambling compulsion that ravaged decades of one mans life. Now 67, the former salesman from western Japan fell into debt time and time again as his addiction drew him to pachinko parlors, then illegal mahjong and dice games.

Gambling permeated my life, said the man, who asked not to be identified for fear of embarrassing loved ones. My fingers just dont do as theyre told. I cant count the number of times my family have had to clear up the mess by paying off my debts.

The man is among thousands in Japan whose gambling compulsion had gone largely unnoticed until a plan to introduce casino resorts forced policy makers to address the problem of addiction. Speaking to Bloomberg News at an event hosted by lawyers who oppose the governments casino plan,he said he only kicked his habit after joining Gamblers Anonymous about a decade ago.

A customer smokes a cigarette inside thepachinkoparlor in Tokyo.

Photographer: Shiho Fukada/Bloomberg

Lawmakers are putting together an anti-addiction bill that must be passed before the first casinos can open their doors. In doing so, they must balance between safeguarding economic benefits from gambling establishments -- including the $200 billion pachinko industry -- while addressing the concerns of casino opponents who fear they will spawn a new generation of addicts.

The bill doesnt specify rules that businesses must follow and penalties for non-compliance, according to a draft distributed to reporters. It broadly mandates the government to form a plan to stop gambling addiction, and says businesses must cooperate.

When it passes, officials will start drafting regulations that could outline specific duties of gambling businesses, including restricting access to venues and providing funds to boost counselling. Thats raising concerns in Japans 11,000 pachinko parlors, which have operated their pinball-like games in a legal gray area for decades.

Read more on how Japans bet on casinos may play out

People in the pachinko industry are involved with the causes of addiction, saidTakeshi Shina, a lawmaker with the opposition Democratic Party, which drafted its own bill. So we will have them cooperate to eliminate it. They cant stay out of it completely.

The bill could passbefore the current parliamentary session ends on June 18. While Prime Minister Shinzo Abes ruling coalition holds a majority in both houses of parliament, the opposition could still delay a vote.

Gambling in Japan turns over more than 27 trillion yen ($244 billion) annually, replenishes local government coffers and employs about 300,000 people -- many of them in regions where jobs are relatively scarce. Its legal to bet on publicly run horse, boat, motorbike and bicycle races, plus lotteries and football pools. Horse racing alone generated 283 billion yen ($2.6 billion) for the central government in fiscal 2015.

Photographer: Shiho Fukada/Bloomberg

Pachinko operators, which rake in more than five times the revenue of the publicly-managed gambling industry, have skirted a ban on private-sector gambling byhaving winners swap their loot, in the form of ball-bearings, for a token prize that can later be exchanged off the premises for cash.The government doesnt break down the amount of taxes the industry contributes.

The threat of regulation is casting a shadow over a wider betting industry already in a downward spiral, as younger people spend more of their leisure time online, and tired race tracks provide little to appeal to new customers, according to Masatoshi Yamamoto, an analyst at Mitsubishi UFJ Research & Consulting Co., who researches publicly funded gambling.

A customer plays pachinko.

Photographer: Shiho Fukada/Bloomberg

Industry turnover at pachinko parlors has shrunk by a third from a 2005 peak, and the number of venues is in a two-decade decline. While they introduced slot machines to attract younger customers, fans under 30 remain a rarity.

Shingo Ito of Nichiyukyo, a pachinko industry association, said prize values and opening times are already regulated. It also set up a phone counseling center that received 2,500 calls last year.

Its not like casinos, where people can spend as much as they want and stay as long as they like, Ito said. His group is running newspaper and poster advertisements describing pachinko as a healthy pastime to be enjoyed in moderation.

Little reliable data exists on the social costs of gambling in Japan. The results of the first comprehensive survey on addiction are due sometime in the next few months.

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In general, compulsive gamblers make up 1 percent to 2 percent of any given population, according to James Whelan, a University of Memphis professor who briefed Japans ruling party on gambling addiction earlier this year. That could work out to one or two million Japanese.Whelan said the addition of casinos in Japan -- which may be as soon as 2023 -- probably wont make the issue worse, given that gambling is already widespread.

Noriko Tanaka, a counselor and campaigner on problem gambling, said shes concerned that the new law wont be ambitious enough to help addicts. One cause for worry is that the draft bill refers to respect for the pachinko industrys own anti-dependency initiatives.

It could turn out to be just a fig leaf to help them pass the casino bill, Tanaka said.

Excerpt from:

Gambling Addiction Can No Longer Be Ignored in Japan's Casino Push - Bloomberg

A FOBT gambling machine in a Paddy Power betting shop in east London. Photograph: David Levene/the Guardian

The Labour party has accused the government of failing to act on fixed-odds betting terminals, after data showed that gamblers losses are largest in deprived areas and opposition-held constituencies.

A breakdown of estimated losses by parliamentary constituency shows that areas where voters chose Labour in the 2015 election make up eight of the top 10 most affected. Of 62 constituencies where gamblers lost more than 5m in 2015-16, 47 are Labour, five are Scottish National party areas and 10 are Conservative.

Both Labour and the Liberal Democrats have promised in their general election manifestos to cut the maximum stake on FOBTs from 100 to 2. The Conservative manifesto did not address the issue and the government has so far resisted calls for stake reduction, pending a review due to be published this summer.

The data also shows a greater concentration of betting shops in areas with higher rates of poverty, fuelling existing concerns that bookmakers are clustering their shops in deprived areas.

Labours deputy leader, Tom Watson, said: Theresa Mays government has repeatedly failed to act on FOBTs, despite being presented with evidence they are highly addictive and target people who struggle to control their gambling.

Local councils see the damage FOBTs cause in communities up and down the country but the Tories have simply refused to talk about how to tackle this problem. Its a shameful record of inaction which confirms the Tories will always place corporate interests ahead of people.

Despite the prominence of Labour constituencies in the top 10, the highest losses were recorded in a Conservative seat, the Cities of London and Westminster, where gamblers lost 31m in 120 bookmakers, an average of more than 250,000 per shop.

The data, which shows that nine of the top 10 biggest losses are in London constituencies, may be skewed by the high number of people who do not live in those areas but pass through for work and tourism. Outside London, the worst affected constituency was Glasgow Central, where gamblers lost 10m on FOBTs in 66 betting shops, followed by Liverpool Riverside, where bookies took 8.1m.

And the constituencies outside London that suffered the biggest losses are also dominated by Labour and the SNP. Of the 15 where FOBTs took more than 5m, nine are Labour, five are SNP and one is Conservative.

While there is no official data on losses by constituency, the estimates were compiled by consultancy Landman Economics on behalf of the Campaign for Fairer Gambling, by cross-referencing data released by the Gambling Commission and the Responsible Gambling Trust.

The statistics used to calculate the estimates include the number of bookmakers in local authority areas and the average losses in each region of the UK. The total estimated figure of 1.7bn for all constituencies tallies with the amount the Gambling Commission said bookies took from FOBTs in the 2015-16 year.

The data also provide fresh evidence of clustering by bookmakers, which have been accused of targeting areas suffering from low wages, high unemployment and high rates of child poverty. Forty-three parliamentary constituencies have more than 30 betting shops, of which 74% have a higher-than-average claimant count for jobseekers allowance or universal credit. About two-thirds have an average weekly wage below the national median, while 79% report above-average child poverty rates.

A spokesperson for the Campaign for Fairer Gambling said: This research shows that bookmakers are targeting the most deprived parts of the country with a highly addictive gambling product. They circumvent the limit of four FOBTs per shop by opening multiple outlets, which leads to clustering. It is welcome that both Labour and the Liberal Democrats have committed to reducing the maximum stake to 2 in their manifestos.

If Theresa May really wants to help those who are just about managing then she will commit to the same.

Bookmakers rake in 1.8bn a year from FOBTs, according to figures released last month, more than half of their annual revenue.

A spokesperson for the Association of British Bookmakers said: This research is deeply flawed, the reality is that betting shops are located in areas of high footfall with 84% of shops located in densely populated areas.

The most profitable shops are located in the least deprived areas.

Those with vested commercial interests in calling for a cut in stakes on bookie gaming machines want to put 21,000 people out of good jobs, close 4,500 full business rate paying shops, deprive horse racing of 290m in media payments and drive people to other forms of gambling while doing nothing to address problem gambling.

Bookmakers have argued that there is no causal link between FOBTs and problem gambling, and that curbing the maximum amount that can be staked on the machines could cost jobs and deprive the exchequer of taxes.

Jim Mullen, the chief executive of betting firm Ladbrokes Coral, has said cutting the maximum stake could cost up to 20,000 jobs. But campaigners and rival segments of the gambling industry, which support greater curbs on FOBTs, have questioned the claims.

John White, the chief executive of amusement arcade trade body Bacta, said the warnings were scaremongering, designed to shore up a status quo that puts consumers at risk.

Landman Economics has previously said that FOBTs represent a net drain on the economy, despite the tax revenues they provide. The economic research consultancy said FOBTs have actually reduced HMRCs tax income by 1.3bn since 2008 because the money spent on them would be more productive if spent elsewhere.

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Tories have 'shameful record' on FOBT gambling, says Labour - The Guardian

It hasnt exactly been smooth sailing for the Jacks or Better gambling boat in Galveston.

The boats maiden voyage was April 6. Between rough seas that canceled more than a dozen departures, damage from hitting a buoy that put the boat in dry dock several days, and seasick guests backing up toilets and sinks with vomit the boat is looking for calmer waters this summer.

Jacks or Better has sailings scheduled every day, and twice on Fridays and Saturdays. The cruises generally take between six and seven hours. Tickets are $15, including two free drink tickets.

Its about a one-hour drive from Houston to Galveston. You want to arrive a half-hour early, a built-in safety against those inexplicable traffic jams on I-45. (Its 2 pm on Tuesday, why is traffic backed up?) Once the boat leaves port, it takes about 1-1/2 hours to reach federal waters, 9.1 miles offshore, where its legal for the captain to say, Let the games begin. The boat has 180 slot machines and tables for shootout poker, blackjack, craps, chuck-a-luck, and other games.

Its supposed to have sports wagering, where you can bet on any college or pro event anywhere in the world, from French Open tennis to World Cup soccer to Aussie cricket to American baseball and football games. Supposedly.

Ready to set sail? A friend and I recently boarded the Jacks or Better boat for a Saturday afternoon cruise. Well have to call my friend Oscar. I cant use his real name because he lied to his boss to get off work that day. This is the kind of friends I have.

Before sailing, I took to Yelp and read horror story reviews about passengers getting seasick on the boat, complete with nasty photos of clogged toilets. There were some positive, fun-filledreviews, too. It all dependedon how rough the seaswere that day.

Not taking chances, Oscar and I popped a couple of Dramamine motion sickness pills the All Day Less Drowsy formula an hour before departure.

The boat is 150 feet long and can hold 360 passengers and 54 crew members. Im guessing that most of the passengers didnt know about the 3- to 4-foot seas predicted that day.

Passengers began climbing aboard and some immediately cashed in their two free drink tickets. Theyll pay for that later.

The Jacks or Better boat has three decks. The first deck is covered with slot machines. The second deck has gaming tables and a snack bar offering burgers, nachos, chicken sandwiches, Buffalo wings, and Galveston cheesesteaks. The most expensive item on the menu is $8. The upstairs, open-air observation deck has lounge chairs and live entertainment. On my cruise, there was karaoke.

AsGeorge Costanza said on Seinfeld, The sea was angry that day, my friends, like an old man trying to send back soup in a deli.

Wobbly and woozy

Thirty minutes into the trip, the boat got wobbly and passengers got woozy. Warning: Heres where this column gets pretty graphic. If youre reading this while eating, stop doing one of them.

Ive seen fewer sick people in the Ben Taub Hospital emergency room. Crew members began roaming the boat with trays piled high with sickness bags and crackers. Like waiters serving hors doeuvres at a wedding party. Passengers were stumbling aimlessly, bumping into furniture and slamming into walls, like babies taking their first steps, or town drunk Otis Campbellon The Andy Griffith Show.

People were puking in public, there was no time for shame. A guy at the snack bar was calmly eating spicy Buffalo wings while a man sitting next to him was retching into a vomit bag.

Never saw that before.

I counted only 22 people actually gambling. Most were upstairs with their faces in a paper bag, or passed out on the floor, or sleeping with their heads pressed against a slot machine. That cant possibly feel good.

Jacks or Better has a policy: If you get seasick during the cruise, upon returning to shore, the company will give you a free pass for another trip, plus a $20 chip to use at a gaming table. If youre thinking of going on the gambling boat, you might want to click at jacksorbettercasino.comfirst to check on sailing conditions. The Gulf of Mexico typically is much calmer during June, July, and August. In two weeks, the water will be like glass, I was told.

I asked a crew member, "Where do I place a sports bet?" I was told to See that guy over there. My whole reason for taking this voyage from hell (tip of the Hatlo Hat to Richard Lewis) was to place a parlay bet: Rafael Nadal to win the French Open and the Astros to win that nights game. Betting on the Astros this season is like stealing money.

The sports manager told me, Sorry, our sports machines havent arrived yet. Theyll be here in a few weeks.

You mean I got on this seasick infirmary for nothing?

Much, much worse

And thats when things turned for the much, much worse.

Oscar and I grabbed a table at the snack bar to wait out the cruise. Five minutes later, and I swear this happened, a man staggered toward us. His face was green. He was ready to blow like Mount St. Helens. But instead of finishing his journey to the restroom, he collapsed into a chair at MY TABLE (good name for a magazine) and let fly.

Thats when I lost it my temper, not my lunch. Remember I took a couple of Dramamine. I bolted up and screamed at him, Thats disgusting. Whats wrong with you? Why didnt you go to the bathroom and do that?

The guy could barely lift his head. I couldnt help it.

A crew member, carrying a bucket and mop, apologized for this incident. Im sorry you had to see that.

I asked him, This is some job you have. What do you use to get puke out of carpet?

Heres your household hint of the day (Hello, Heloise.) The Jacks or Better crew uses D-VOUR Absorbent Powder, which devours liquids such as spilled bodily fluids as it eliminated odors. They must buy it by the case at Costco.

So many passengers were sick, and so few gambling, that the captain decided to cut the cruise short by an hour and head back to land.

I didnt see anybody asking for their free ticket and $20 chip to come back.

---------------------

Ken can be reached at ken@culturemap.com or on Twitter:@KenCultureMap. To have all CultureMap stories, including Ken's columns, delivered to your inbox in one Daily Digest every morning, sign uphere.

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Hoffman can bet on it: Galveston casino gambling boat ventures into uncharted waters - CultureMap Houston

Medical marijuana isn't the only major issue missing from the agenda for this week's special session of the Florida Legislature. Gambling also is nowhere to be found. The Florida Supreme Court's unanimous opinion last month that individual counties may not unilaterally decide to open their doors to slot machines was the correct decision, rightly recognizing that any expansion of gambling in Florida is a statewide issue that should be addressed in state law or the state Constitution. But lawmakers again failed to reach a deal during the regular session, and now they have the clear responsibility to resolve the lingering issues.

The court brought clarity to where authority rests regarding gambling. In 2003, voters amended the Florida Constitution to allow slot machines in Miami-Dade and Broward counties. Subsequent changes in state law allowed the Hialeah horse track to be eligible for a slots license. By relying on creative interpretations of the state's gaming laws, other counties saw an opening to bring slots to their beleaguered dog and horse tracks and jai alai frontons, and voters in eight counties (none in Tampa Bay) approved slot machine gaming. Had the Supreme Court sided with those counties and the owner of Gretna Racing in Gadsden County, which brought the challenge, Florida could have seen an explosion of slot machines.

Instead the justices rightly recognized that the Legislature never intended to leave gambling policy up to individual counties. But state lawmakers have been unable to agree on a broader vision for the future of gambling in Florida. Negotiations broke down in the final days of the regular session over a new gaming bill and a new agreement with the Seminole Tribe of Florida to operate some casino games exclusively in exchange for annual revenues of as much as $300 million for the state. In general, the House wants less gambling or at least a slower expansion while the Senate favors more.

Following the court's ruling, the Legislature can't keep stalling forever. The governor and the Legislature should reach a new deal with the Seminoles and bring some additional clarity to gambling for the beleaguered parimutuel industry. But there has to be a balance. For example, lawmakers could repeal outdated requirements that force dog tracks such as Derby Lane in St. Petersburg to keep running live races in order to keep their poker rooms open. They should not, however, open the door for the widespread expansion of slot machines, and they should keep the Seminoles' additional gambling opportunities as limited as possible in return for another long-term agreement that would bring more revenue to the state.

The Florida Supreme Court has handed lawmakers a newly cleaned slate by answering the question correctly of whether a few counties can decide on their own to allow expanded slot machine gaming. With that resolved, lawmakers should buckle down and craft reasonable, modern legislation that makes sense without opening the door to creating another Las Vegas.

Editorial: Legislature should rewrite gambling rules 06/05/17 [Last modified: Monday, June 5, 2017 7:45pm] Photo reprints | Article reprints

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Editorial: Legislature should rewrite gambling rules - Tampabay.com

BETHLEHEM Just two weeks after the $1.3 billion sale of Sands Casino Resort Bethlehem collapsed under the threat that Pennsylvania may allow casino gambling in bars, Sands is launching a million-dollar campaign to stop the legislation behind it.

Sands this week is beginning a statewide ad war against proposed House legislation that would allow video gaming terminals in bars and truck stops. You'll soon be seeing doom-and-gloom commercials detailing how VGTs in every neighborhood will gut a statewide casino model that is yielding $1.4 billion in tax money a year.

To fund it, Sands is pumping more than $1 million into a newly formed lobbying organization called Pennsylvanians For Responsible Government. Sands officials say they expect other casinos to join in their fight, but none were announced Monday. The campaign includes radio ads, an internet landing page with the headline "Greetings from Pennsylvania, Land of 12,000 Casinos," and a 30-second television spot that suggests some lawmakers want to put the terminals in delis and nursing homes.

It sets up a heavyweight fight between casinos looking to keep their slot machine monopoly and the Pennsylvania Tavern Association, which wants its cut of the gambling pie.

"This proposal would destroy the brick-and-mortar casino industry and risk the nearly $1.4 billion in tax revenues that these establishments generate annually," lobbying group spokesman Michael Barley said. "Worse yet, because VGTs are designed to operate without employees, the 18,000 people casinos collectively employ in Pennsylvania will be put in serious jeopardy."

Proponents say the bill will prop up mom-and-pop taverns, while pumping hundreds of millions of tax dollars into the state budget.

The bill's main sponsor, Rep. Mark Mustio, R-Allegheny, said Monday that Sands' ad campaign is misleading.

"They are trying to create a boogieman and I'm not interested in playing that game," Mustio said. "If they can spend $1 million for an ad campaign, maybe we should raise their taxes."

Mustio said allowing five machines doesn't make a bar a casino, and the bill only allows the terminals in liquor-licensed establishments, truck stops and off-track betting facilities. Liquor Control Board records show that 35 nursing homes statewide have active liquor licenses but Mustio said he didn't know that, and the bill can be amended to exclude nursing homes as has been done with groceries that have licenses to sell beer or wine.

The bill's purpose, Mustio added, is to legalize and tax illegal terminals operating in social halls and taverns across the state.

"We don't have $1 million to fight Sands, but we have friends in the Senate and House," said Tavern Association President Tom Boock, who owns the Cottage Pub and Restaurant in Chambersburg, Franklin County. "We're not just going to back down to these billionaire casino owners."

Among those friends is Sen. Lisa Boscola, D-Northampton, whose Bethlehem office is roughly a mile from Sands. Boscola said she doesn't believe the terminals are a threat to the casino industry.

"They are entitled to have their ad campaign, but it's not going to change my vote one way or the other," Boscola said

Sands, arguably the state's most successful casino, may rule Pennsylvania's gambling landscape, but its executives are admittedly worried about VGTs. And they should be worried, said John Cunnane, a Wall Street gaming and leisure analyst for Stifel Investment Services, because House Bill 1010 calls for sweeping expansion. It would give the state's more than 16,000 establishments with liquor licenses a chance to have what are essentially tavern slot machines.

Sources have said Sands already has been damaged by the threat of the terminals. Sources in March said the world's largest casino company had a tentative deal to sell its south Bethlehem casino, hotel, outlet mall and concert venue to the world's second-largest, MGM Resorts International. Las Vegas Sands Corp. confirmed the casino had an interested buyer, but never commented on who it was. However, two weeks ago, sources said MGM pulled out of the deal, fearing that VGTs would be approved in Pennsylvania, if not this year then later.

Under the bill, bars, clubs and restaurants could have as many as five terminals each, and off-track betting facilities and truck terminals could have up to 10. Analysts estimate it would add 35,000 to 40,000 machines statewide. The combined number of slot machines at the state's 12 casinos is less than 27,000.

"That's an insane number of VGTs, and we've seen the impact that's had on casinos in places like Iowa and Illinois," Cunnane said. "It won't cause a mass exodus from casinos, but they will feel the pain, no doubt."

Cunnane explained that because Pennsylvania's casino model is built on the convenience gambler rather than Las Vegas or even Atlantic City, which cater to the destination gambler adding thousands of more convenient locations will have a major impact on the bottom line.

In Illinois, for example, its 10 riverboat casinos had $1.6 billion in gross revenues in 2012, before VGTs arrived. Last year, revenues were down to $1.4 billion, and the tax to the state fell nearly $100 million, to $477 million, according to figures compiled by the Illinois Gaming Board.

VGT proponents say there are 40,000 machines being played illegally in private clubs and bars, though state police put the number closer to 15,000. House estimates say it will produce $100 million in the first year and up to $500 million more in taxes down the road.

Based on testimony during gambling hearings in March, it appears that 11 of the state's 12 casinos will oppose the terminals. Hollywood Casino in Dauphin County supports them, largely because its owner, Penn National Gaming, owns a VGT business that includes more than 1,500 machines in Illinois.

There are some carrots in the bill to entice casinos to endorse it. The latest version would reduce the 54 percent slot machine tax in casinos to 49 percent, but that has not swayed Sands.

massad@mcall.com

Twitter @matthewassad21

610-820-6691

What House Bill 1010 legalizes: Up to five video gaming terminals similar to slot machines in liquor-licensed facilities, such as bars and restaurants, and up to 10 VGTs in truck stops and off-track betting facilities.

Where the bill stands: It was introduced in the House on Monday, where it could get amendments, but it's unclear how soon, or if, it will come for a vote. To become law, it would also need approval in the Senate, where there is far less support for VGTs.

Why Sands casino is waging an ad war against it: Sands executives fear the addition of 40,000 VGTs statewide would affect their bottom line by keeping people from visiting brick and mortar casinos.

Read more here:

Sands Bethlehem casino waging ad war against tavern gambling - Allentown Morning Call

Governor Kim Reynolds.

Governor Kim Reynoldssays she double checked with the state Ethics Boardabout using a gambling industry executives private plane to fly around the state with her acting lieutenant governor.

The gift of the planes use is considered adonation to the governors campaign. Gary Kirke, the planes owner, is seeking a state license for a new gambling casino in Cedar Rapids. Kirke and his wife also are co-hosting a campaign fundraiser for Reynolds next week in Cedar Rapids.

Reynolds says the decision about a Cedar Rapids casino will be made by the Iowa Racing and Gaming Commission.

I have not and will not weigh in on any of the casino licenses, Reynolds says.

Cedar Rapids Mayor Ron Corbett is considering running against Reynolds for the GOPs nomination for governor in 2018. Corbetttold The Cedar Rapids Gazetteit appears Reynolds may be getting too cozy with an executive who hopes to land a multi-million dollar casino. Democrats who hope to face-off against Reynolds next year are weighing in, too.

According to an @IAStartingLine tweet on Saturday, one Democrat at a candidate forumjoked that none of the Democrats flew to the event in southern Iowa on a corporate jet.

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Reynolds defends use of gambling exec's jet - Radio Iowa

There are currently 62 casinos operated by 60 Tribes.

Footnotes:

1 Date the executed Compact was ratified by the Legislature or by the voters through the Referendum process.

2 Compact was ratified through an alternate process that: 1) required the Governor to certify that it was materially identical to the 1999 Compacts at the time it was submitted to the Legislature; and, 2) was not rejected by the Legislature, as specified in AB 1385 (Battin, Chapter 874, Statutes of 1999). See Government Code section 12012.25(b).

3 Federal approval of a Compact is published in the Federal Register after it is ratified in accordance with State law and approved by the United States Secretary of the Interior.

4 The State of California entered into a separate Memorandum of Agreement (MOA) with the Tribe as a government-to-government agreement for the purpose of enforcing provisions separate and apart from the 2006 Compact amendments. This MOA was approved by the Legislature under AB 1738 (Coto, Chapter 42, Statutes of 2007). On February 5, 2008, voters approved Propositions 94, 95, and 97, which allowed the Compact amendments and the MOAs to go into effect.

5 The State of California entered into a Letter of Agreement (LOA) with the Tribe as government-to-government agreement for the purpose of enforcing provisions separate and apart from the 2006 Compact amendments. This LOA was aproved by the Legislature under AB 1212 (Nunez, Chapter 227, Statutes of 2007).

6 Tribe's Secretarial Procedures became effective on February 8, 2013.

7 The Tribe is listed as the Capitan Grande Band of Diegueno Mission Indians of California: Barona Group of Capitan Grande Band of Mission Indians of the Barona Reservation on the Federal Register Notice dated January 29, 2016.

8 The Tribe is listed as the Capitan Grande of Diegueno Mission Indians of California: Viejas (Baron Long) Group of Capitan Grande Band of Mission Indians of the Viejas Reservation on the Federal Register Notice dated January 19, 2016. On December 5, 2014, the Federal Register published the Notice for the Class III Amended and Restated Tribal-State Compact between the Viejas Band of Kumeyaay Indians and the State of California.

9 Tribe's Secretarial Procedures became effective on July 29, 2016

10Tribes Secretarial Procedures became effective on August 12, 2016

11On October 26, 2015, the United States Court of Appeals for the Ninth Circuit concluded in Pauma Band of Luiseno Mission Indians of Pauma & Yuima Reservation v. California (9th Cir. 2015) 813 F.3d 1155 that Pauma's 2004 Amendment was rescinded. Therefore, the Tribe is subject to the 1999 Compact for purposes of payment obligations.

01/03/20002; 07/10/2007; 8/29/2016

05/16/2000; 12/19/2007; 10/31/2016

01/03/2000

05/16/2000

04/12/20002

07/06/2000

01/03/2000; 09/12/2016

05/16/2000; 12/05/2016

01/03/2000

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

01/03/2000

05/16/2000

01/03/2000

05/16/2000

10/10/1999; 09/29/2004; 09/12/2016

05/16/2000; 12/20/2004; 12/05/2016

10/10/1999

05/16/2000

01/03/2000

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

01/03/2000

05/16/2000

09/29/2004; 09/17/2012

12/20/2004; 12/28/2012

10/10/1999

05/16/2000

01/03/20002

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

05/17/2012

07/12/2012

07/11/2013

01/17/2014

09/29/2004

12/20/2004

06/13/2011

08/10/2011

10/10/1999

05/16/2000

10/10/1999

05/16/2000

10/11/2003

12/22/2003

10/10/1999; 06/17/2015; 09/12/2016

05/16/2000; 10/23/2015; 10/31/2016

01/03/2000; 09/12/2016

05/16/2000; 12/05/2016

08/29/2014

11/19/2014

10/10/1999

05/16/2000

10/11/2003

12/22/2003

01/03/20002

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

10/10/1999

05/16/2000

01/03/2000; 07/10/2007

05/16/2000; 12/19/2007

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California Gambling Control Commission