ADAMS REPORT
A Review of Current Gaming Literature
Volume VII, Issue 10
October 2003
Quick-takes: The month’s trends in a glance.
The Dow Jones may have closed down from its high of 9659 during September to 9275, down
248 from August, but most of the economic news was better. The gross domestic product grew
significantly during the quarter, consumer spending (though confidence fell), housing and job
markets improved, while summer gasoline prices pushed the Consumer Price Index up. The high
fuel prices are likely to continue with OPEC cutting production.
Major stock market indexes fell in September, ending a string of monthly increases, but
managed to end the third quarter higher. Elizabeth Lazarowitz, Reuters, 9-30-03
Healthy consumer spending nudged U.S. economic growth ahead….Gross domestic
product, or GDP, grew at a revised 3.3 percent annual rate in the three months from April
to June, up from a 3.1 percent rate reported a month ago. Reuters, Yahoo Business, 9-26-03
US consumer spending rose 0.8 percent in August while personal income increased 0.2
percent… Real consumer spending (adjusted for inflation) increased 0.5 percent in
August, the fourth straight robust month of spending….real disposable incomes
increased 0.6 percent Yahoo Business, 9-29-03
The Consumer Confidence Index fell to 76.8, down nearly five points from the revised
81.7 registered in August, the Conference Board reported Tuesday. Anne D'Innocenzio,
Associated Press, 9-30-03
The U.S. housing sector continued to sizzle and the jobs market appeared to improve,
but a drop in demand for costly factory goods left a reminder the economy is not yet back
to full health, reports showed on Thursday. Tim Ahmann, Reuters, Yahoo Business, 9-25-03
Rising gasoline costs put a dent in motorists' wallets in August and contributed to the
biggest increase in consumer prices in five months, the Labor Department reported
Tuesday. The Consumer Price Index rose by 0.3 percent, matching the increase of last
March. …Most of the increase was due to skyrocketing prices for gasoline, which soared
by 6.2 percent. Jeannine Aversa, Associated Press, Yahoo Business, 9-16-03
Defying most expectations, OPEC will cut its oil production target by 3.5 percent
beginning in November, the cartel announced Wednesday. …The group said it would
meet again Dec. 4 to reassess market conditions. – Bruce Stanley, Associated Press, Yahoo Business,
9-24-03
The big news in the gaming industry for September was clearly the purchase of Horseshoe
Gaming by Harrah’s. The purchase sent a clear statement to the industry; Harrah’s intends to be
the dominate player in the industry. After releasing the annual gaming survey, Gary Loveman
pointed out to any state that failed to get the more subtle message: if you don’t open your state to
expanded gaming, your citizens will cross the border to gamble. Ubiquitous, not quite like
Starbucks with a store at every busy intersection, but certainly in every busy gaming jurisdiction.
Build them, buy them or lobby for them, casinos, Indian casinos, racetracks, riverboats and more.
Harrah’s intends to be a major player wherever gaming is permitted to any person, for any
purpose: my apologies to the judge in the Cabazon case.
Harrah's Entertainment Inc. said on Thursday it will pay $917 million in cash to buy
Horseshoe Gaming Holding Corp…will also assume about $533 million in debt, taking the
price to $1.45 billion in a deal that Harrah's said will boost profits immediately.
…Harrah's, which operates 26 gambling halls, said it intends to sell its Harrah's casino in
Shreveport, Louisiana, to avoid overexposure in that market. Peter Henderson, Reuters, Yahoo
Business, 9-11-03
…The Roper ASW survey of 2,000 Americans finds that despite a penchant for taking
risks, wagerers are relatively conservative with money at home: 61 percent say they
always or almost always pay off their credit cards every month, compared with 52 percent
of the general population. …'It's counterintuitive, especially when you realize the income
of these people is 20 percent higher than the general population,'' he says. The survey
pegged median household income for casino gamblers at $50,716 vs. $42,228 for the
population as a whole. …About 51 million Americans, 26 percent of the adult population,
have gambled in a casino at least once in the past year, down slightly from 53 million the
year before. Gene Sloan, Chicago Sun Times, 9-27-03
Harrah's Entertainment unleashed a blitz of state-specific press releases, using data from
company-funded studies to note how many times residents from each of 11 states
gamble at casinos. Gamblers in casino-less Pennsylvania, for instance, made 8.9 million
trips to casinos last year, Harrah's found. "Pennsylvania residents are voting with their
feet and pocketbooks for casino entertainment," Harrah's CEO Gary Loveman said.
"Unfortunately for them, Pennsylvania public policy insists they cross state lines to do so."
Loveman had a similar message in press releases customized for Arkansas, Florida,
Kentucky, Maryland, Massachusetts, New York, Ohio, Oklahoma, Rhode Island and
Virginia. Loveman believes casino-style gambling is benign entertainment that should be
widely available to adults. Joe Weinert, Press of Atlantic City, 9-27-03
Stockholders and executives in Harrah’s are pleased with the growth and geographic diversity of
Harrah’s, but the person most pleased is Jack Binion. A true son of his father, Jack understands
not only the industry, but more importantly the mind of the player. He left Las Vegas to his sister
and moved east, and in the process proved that some are better operators than others; he also
proved that his father’s mantra of giving the player a real bet works. Cashing out for nearly a
billion dollars certainly is a validation of the operating philosophy of two Binions, Jack and
Benny.
Lucky and proud. That's how Jack Binion said he felt Thursday after he and Harrah's
Entertainment executives signed a $1.45 billion deal for Harrah's to buy his Horseshoe
Gaming Holding Corp. and its three riverboat casinos. Binion started the company in July
1994, and in less than a decade built a company Harrah's was willing to pay almost oneand-a-half billion dollars for. The deal carries the biggest price for the sale of a privately
held casino company and also would mark the third-biggest casino company sale ever.
Horseshoe's riverboats in Hammond, Ind.; Tunica, Miss.; and Bossier City, La., are the
top-performing casinos in their markets. Jeff Simpson, Gaming Wire, Las Vegas Review-Journal, 9-12-03
Harrah’s is not the only gaming company that thinks size and geographic diversity are keys to
success in the gaming industry. A new company to gaming, Columbia Sussex, is wasting no time
expanding across the country. With a quiet beginning at Lake Tahoe, followed by an interesting
purchase of the closed and bankrupt Maxim in Las Vegas, and then a chin scratcher, the River
Palms (formerly Gold River) in Laughlin, now the company has suddenly reached out for some
much larger and more expensive properties.
Columbia Sussex Corp. seems to have set its sights on becoming a key player in the
gaming industry. The Fort Mitchell, Ky.-based hotel, resort and casino holding company
has bids in for the Reno Hilton and possibly the Las Vegas Hilton, sources close to the
deal say. It may also bid on other Park Place Entertainment Corp. properties, including
the Bally's Belle of New Orleans and the Flamingo Hilton Laughlin. Columbia Sussex
bought the River Palms in Laughlin in September and has a deal pending to buy Harrah's
Vicksburg Hotel & Casino in Mississippi, which is expected to close before year's end.
Columbia Sussex last year bought the Maxim in Las Vegas for $38 million and owns the
Lake Tahoe Horizon Casino Resort. Las Vegas Review-Journal, 9-29-03
Isle of Capri and Park Place Entertainment (soon to be Caesars Entertainment) were active in
September, looking for opportunities to extend operations into untapped areas. Each is eying
major urban markets; the Isle casting a longing glance at St. Louis and Park Place hoping to share
in the lucrative Southern California market and Minneapolis-St. Paul.
The Waterloo City Council voted 5-2 today to approve an agreement with the Black Hawk
County Gaming Association, one hurdle to clear the way to allow Isle of Capri Casinos
Inc. to locate a riverboat on a man-made lake near Lost Island Adventurepark. Pat Kinney,
Waterloo/Cedar Falls Courier, 9-25-03
Isle of Capri Casinos Inc. is offering $50 million to buy a struggling downtown gaming
site, a move that could help its case to build a St. Louis County casino. Associated Press,
Kansas City Star, 9-26-03
Isle of Capri Casinos, Inc. officials announced today that the company has completed the
agreements to lease and operate a casino at Our Lucaya Beach and Golf Resort at
Freeport, Grand Bahama…..serves as the company's introduction to international
operations. PRNewswire-FirstCall, Yahoo Business, 10-1-03
Park Place Entertainment Corp. will develop a Caesars-branded casino on tribal lands
near Pauma Valley in Southern California, the company announced Wednesday. Rod
Smith, Gaming Wire, Las Vegas Review-Journal, 9-18-03
Park Place Entertainment, one of the largest casino companies in the world, has hired an
improbable ally in its efforts to overcome opposition by Minnesota's Indian tribes to its
plans for a Las Vegas-style casino at the Mall of America. … Park Place, which has not
sealed a deal with the owners of the megamall in Bloomington, could be among many
competitors seeking legislative approval next year. Associated Press, Minneapolis-St. Paul, Star
Tribune, 9-29-03
Five companies submitted applications by Friday to operate a proposed casino in Orange
County (Indiana), including Park Place Entertainment Corp. of Las Vegas, an investor
group involving Indiana Pacers President Larry Bird and a group led by casino magnate
Donald Trump. Shannon Dininny, Associated Press, Las Vegas Sun, 9-22-03
The “big boys” are not the only ones growing their portfolios of gaming properties. The Holder
Hospitably Group in Nevada is quietly developing a diversified group of Nevada properties. Hal
Holder, the principle in the company, looks for rural Nevada properties that may be
underperforming and ones that would benefit from the economies of scale that a group of
properties would have. Hal is not the only person looking for opportunity in rural Nevada, but he
is the fastest moving of the lot.
Sparks-based Holder Hospitality Group said Thursday that it plans to buy Pipers Casino
in Silver Springs. …Holder Hospitality owns the Silver Club Hotel/Casino in Sparks,
along with six other small casinos in Fernley, Gardnerville, Hawthorne, Winnemucca and
Henderson. The company also owns a recently expanded statewide slot route… Stephen
Reich, 9-26-03
This latest round of consolidation is in part driven by the lack of success in state legislatures to
expand gaming and the growing desire of those same legislatures to impose the largest taxes
possible on gaming. The unstable tax environment has prompted many operators to up efforts to
find opportunity outside the borders of the United States. That environment has also lead to an
increase in efforts of many operators to find opportunities in Indian country, particularly
California. Although as unstable as California’s political climate is at the moment, it hardly
seems like a safe haven.
A big boost in state taxes will slow casino construction in the United States and
encourage casino companies to seek new opportunities abroad, top executives said on
the first day of the industry's biggest trade show. Terry Lanni, chairman and chief
executive of MGM Mirage, owner of MGM Grand Detroit casino, said Britain was a good
candidate for expansion because lawmakers are considering an overhaul of strict
gambling regulations. Thailand was another possibility, Lanni told the Global Gaming
Expo at the Las Vegas Convention Center. Part of that think-global strategy is the result
of a sudden increase in casino taxes in the United States. As more states look to the
casino industry to help cure their budget woes and increase casino taxes, gambling
executives say they feel the pinch. "I think there'll be a little bit of a pause in this country
until you see a prudent view on the tax rates get worked out," Lanni said in response to a
question on the health of gambling and market growth. "We have a strong belief,
however, that there is great opportunity over in the UK. We are spending a lot of time
over there, and I think you'll see a lot more on this very soon." Ryan Slattery, Detroit Free Press, 917-03
Mandalay Resort Group President and CFO Glenn Schaeffer said Wednesday the Global
Gaming Expo that his company is unlikely to consider building in Atlantic City any time
soon. …Schaeffer took a playful swipe at Harrah's Entertainment and MGM Mirage, two
companies that have announced deals to develop casinos in the United Kingdom. "I
think they're making a bid on the British Empire," Schaeffer deadpanned. Harrah's CEO
Gary Loveman said the company likes the Las Vegas locals market, but can't figure out a
practical way to break into it. Jeff Simpson, Gaming Wire, Las Vegas Review-Journal, 9-18-03
Kerzner International Limited announced today that it has agreed to form a joint venture
with Nakheel LLC, an entity owned by the Government of Dubai, to develop Atlantis, The
Palm, the first phase of which is expected to be an approximately $650 million
development to include a 1,000-room resort and an extensive water theme park situated
on 1.5 miles of beachfront. Atlantis, The Palm will be located at the center of The Palm,
Jumeirah, a $1.5 billion land reclamation project in Dubai, United Arab Emirates. The
agreement provides for additional land available for future development and that would
ultimately enable Atlantis, The Palm to grow its room capacity to at least 2,000 rooms.
Business Wire, Yahoo Business, 9-22-03
However, lest you draw the conclusion that the individual states are unstable, unpredictable
gaming jurisdiction, but other countries and venues are stable and predictable note the changes
taking place in Australia and New Zealand. Both countries, as are some provinces in Canada, are
progressively tightening regulation and limiting the scope and nature of gaming.
Sweeping changes to gambling industry regulation were passed by Parliament yesterday
despite opposition claims it will open up internet gaming. …It introduces a raft of
changes including banning new casinos and restricting the number of poker machines on
a site to nine - half the present limit - if operators were licensed on or after October 18,
2001. …There are now more than 25,000 compared with about 20,000 in October 2001.
Under the new law some will have to be removed. …The changes included allowing the
Lotteries Commission to offer internet gambling, restricting banknote acceptors on pokies
to $20 notes (until now there has been no restriction) and requiring consultation with the
gaming industry when setting a problem gambling levy. …The act's four main objectives
were to control the growth of gambling, reduce harm, ensure gambling raised funds for
the community, and ensure community involvement in decisions about access to
gambling. Kevin Taylor, New Zealand Herald, 9-11-03
Sometimes there is no one to blame for our problems, not regulators, governors or even
competitors. There are times when we simply shoot ourselves in the foot. Take the case of
Tropicana in Atlantic City. The Trop is doing a $250 million expansion. New, exciting and truly
revolutionary; well just how revolutionary you might ask? Just like Fidel in Cuba, a true
revolutionary. No, you could not possibly make the comparison the communist dictator of the
century as a metaphor for new and truly different. Oh, but they did.
The Tropicana is using Castro's image to tout The Quarter, the casino's $245 million
entertainment, dining, retail and spa development project. The ads, along two major
highways leading into the city, show Castro with his trademark cigar and carry the slogan
``The next revolution.'' Tropicana spokeswoman Maureen Siman told The Press of
Atlantic City that the dictator's likeness was used to show that the project was
revolutionary. She said the casino was not trying to make a political statement. Miami
Herald, 9-12-03
Tropicana officials said the billboards weren't meant as a political statement. But after
talks with Cuban-American leaders on Thursday, Tropicana will now place the
international symbol for "no" - a circle with a bar through the middle - across Castro's
face. The slogan will also be changed to read "The Real Revolution." Thomas Barlas, Press of
Atlantic City, 9-13-03
Revolutionary was hardly the theme in Las Vegas at the Global Gaming Expo. Rather the show
was a trip down memory lane and a stylized version of American pop culture of the last 30 or 40
years. It is far too soon to pass judgment on the success of any of the new games, but not too
soon to say there are hundreds of them; and at least one has to have player appeal, “legs” and
profitability for casino operators, doesn’t it? If you are casino operator, you are putting a lot on
the line, hoping that you can recognize a winner when you see it. If you manufacture games, you
hope that you have learned what makes a winner, but you really hope that casinos buy lots of
those games to test your theories.
A random list of themes from various slot machine manufacturers at the Global Gaming
Expo: Star Wars, Big Mouth Billy Bass, Professional Bull Riders, Men Are From Mars,
Women Are From Venus”, Chicago, M*A*S*H, Austin Powers, Goldmember, The Twilight
Zone, Used Cars, Laverne & Shirley, Gilligan’s Island, I Dream of Jeannie, Dilbert, New
Year’s Rockin’ Eve, Rodney Dangerfield (“Reel Respect”), Magic 8 Ball, Uno, Othello,
Marilyn Monroe, Family Feud, Young Frankenstein, The Terminator, Regis (Philbin)
Money Mixer, Animal House, American Graffiti, The Dating Game, The Price is Right,
Elizabeth Taylor — Dazzling Diamonds, Jeopardy!, That Girl, Drew Carey, Mickey Mantle,
The Phantom of the Opera, I Spy, Bewitched, Jack & the Beanstalk, The Honeymooners.
— Themed slot machines are nothing new in the expanding world of gambling. But the
abundance of new slots on display at the Global Gaming Expo this week from companies
around the world set new levels of ambition, theme licensing and technological savvy,
exhibitors said. Reno-based International Game Technology’s floor display was easily
the largest and most prominent, displaying 150 newly designed machines that are either
in development, being readied for distribution or recently made available. IGT’s display
alone would make a decent primer for anyone wishing to brush up on American pop
culture. Most of the machines are based on television shows — sitcoms and game shows
like M*A*S*H and The Dating Game — but many others depict popular movies like
Animal House and American Graffiti. Others simply pay homage to pop icons and sex
symbols from the past, like Frank Sinatra, Elizabeth Taylor and Marilyn Monroe. Thomas J.
Walsh, Reno Gazette-Journal, 9-19-03
The world of casino gambling has become commonplace. So commonplace that is often the
backdrop for movies, novels and increasingly television. Las Vegas is, of course, the prime
venue, but even Reno has a program named after it this season.
The producers of NBC's "The Restaurant" might be betting on "The Casino" for their next
reality hit. Sources said producers Mark Burnett and Ben Silverman are working on a
spinoff of "The Restaurant," which chronicled the behind-the-scenes action surrounding
the opening and the running of a Manhattan restaurant headed by chef Rocco DiSpirito.
Nellie Andreeva, Reuters Hollywood Reporter, 9-9-03
Midway through tonight's "Las Vegas" premiere, a high-powered casino hostess is
offered a hotel suite with either a Strip or a mountain view. "Strip," she says without
missing a beat. "Of course." The characters in this new NBC drama are in love with Sin
City…Of the 36 new network shows premiering this fall, "Las Vegas" is among the more
promising. Matthew Gilbert, Boston Globe, 9-22-03
Hugh Hefner must have been watching the movies and television programs because he chose the
Palms in Vegas for the 50th anniversary party for Playboy. And maybe the mayor of New York
has been watching, too or maybe he and Mayor Daily of Chicago are friends; it seems he is
thinking New York could compete with Vegas for the “Sin City” title.
Lounging poolside at the Palms hotel-casino with his six beautiful blondes, Hugh Hefner
knows life wouldn't be the same if Playboy magazine ended up being a bunny flop 50
years ago. "We've certainly come a long way," says the 77-year-old patriarch of the
Playboy empire. "We live in a much different, a much better world than we did in the
1950s." Hefner and his Playmate entourage spent the weekend in Las Vegas hosting
"Playboy's 50th Anniversary Celebration," where wild parties, Playmate casting calls and
Playboy fashion shows drew thousands. Christina Almeida, Associated Press, San Francisco Chronicle, 922-03
New York City Mayor Michael on Friday said he was "honestly annoyed" that the state
only allows gambling on Indian reservations, adding that the city might as well have a
casino too. The Republican mayor made it clear he disliked gambling because it draws
the people who can least afford to lose money. But he added: "If everybody from New
York City is going across a (nearby) border, why not keep the money here?" Comments
on his weekly radio show were the most positive he has made about gambling. His
remarks contrasted sharply with the cold reception he gave the governor's mid-May
proposal to help the city solve its fiscal crisis by installing 4,500 video poker machines in
Times Square. Poker Magazine, New York Times, 9-29-03
Oh, and did I mention that Michigan has moved further into the world of gaming; no need to
build more casinos, but how about we put gaming in restaurants and bars around the state.
Michigan residents will be able to play new lottery games next month - for the first time at
restaurants and bars. The keno and pull-tab games may help the Michigan Lottery
compete with the state's 20 casinos. Allowing the games at bars - instead of solely at gas
stations and stores - makes gambling somewhat of a social event, officials say. "It's an
important new market,'' Lottery Commissioner Gary Peters said. "Especially in these
tough economic times, we've got to do what we can to generate revenue for the state.''
Tim Martin, Lansing State Journal, 9-15-03
The industry has entered another major consolidation phase and expansion phase. At the
beginning of the year, it appeared that industry as well as corporate growth would be driven by
new legislation. Significant new legislation has yet to develop and growth thus far has been
corporate and driven by acquisitions and not new properties. The only significant new property
this year, the Borgata in Atlantic City has not proven it can expand the market, only that it has
raised the cost of competing and reduced the size of everyone’s slice of the pie. Growth,
therefore, for slot manufacturers has to come from increased sales to existing operations (and
more participation games); that has produced hundreds of new games this year. The operators
and the manufacturers both need lots of winners from the lot if revenues are to grow. It is very
much a symbiotic relationship; they need each.
Bits and Pieces from Indian Country
California continues to dominate the Indian gaming landscape. California has the largest
population, the greatest potential for new Indian casinos, and the most challenging political
environment. Gray Davis may not, in fact it is unlikely he will be, the governor of California by
the time this is published. The next governor may or may not be willing to renegotiate new
compacts. New compacts may or may not expand the number of slots allowed per tribe or
location and may or may not give the state a larger share of gaming revenue. Stay tuned. In the
meantime, two compact have been negotiated and approved, thought it wasn’t a simple process
and the opposition came not from the neighboring cities, but from other tribes.
Gov. Gray Davis has reached agreement with two more Indian tribes that would allow
them to open casinos in exchange for sharing 5% of their gambling revenue with the
state, tribal and state representatives confirmed Tuesday. The agreements are with two
San Diego County tribes: the La Posta Band of Mission Indians and the Santa Ysabel
Band of Diegueno Indians. The agreements, which are subject to approval by the
Legislature, would allow each tribe to operate up to 350 slot machines. Gregg Jones, Los
Angeles Times, 9-10-03
In a stunning vote yesterday, the Assembly, persuaded by the state's wealthiest tribes,
blocked gambling compacts negotiated by two poor San Diego County tribes. Legislation
that would have ratified the agreements signed this week by the La Posta and Santa
Ysabel bands was defeated on 36 to 1 vote, five short of passage, shortly before
midnight. The legislation will have one last chance at passage today. …”I have received
letters of 'deep concern' . . . from Soboba, Cahuilla, Cloverdale, Bear River and Robinson
Rancheria," Quintana wrote in an e-mail. The five tribes, along with three others, wanted
the measure to ratify the compacts "deferred," Quintana wrote. …San Manuel tribal
Chairman Deron Marquez was unavailable last night, but he had previously expressed
reservations about the level of revenues the state would receive from the two compacts,
as well the inclusion of binding arbitration for disputes over off-reservation impacts. James
P. Sweeney, Copley News Service, San Diego Union-Tribue, 9-12-03
In a victory for two small, impoverished San Diego Indian tribes, the California Legislature
Friday approved passage of a bill granting gaming compacts to the La Posta and Santa
Ysabel tribes. La Posta was represented by the American Indian-managed law firm of
Monteau & Peebles, which organized an alliance of influential tribes from other parts of
California to support passage of the compacts. … La Posta and Santa Ysabel
orchestrated the support for the compact following late breaking and unexpected
opposition from two larger tribes. This support came from seventeen tribes including the
Barona Tribe, the Santa Rosa Rancheria, the Picayune, the Rumsey Band of Wintun
Indians and the San Pasqual Tribe. Gwen Parada, tribal chairwoman of the La Posta
Band, said the members of her tribe were grateful for help from other tribes in
overcoming opposition to the compact. Scott Rose, Press Release, 9-13-03
California maybe a bit iffy at the moment, but the size of the prize, particularly those locations
near the major urban population centers is still worth the risk; or so think Park Place, Station and
Hard Rock and I would suspect some others that managed to keep their discussion confidential.
Park Place beat out Station Casinos and Hard Rock Hotel for the right to negotiate the
final agreements to develop a $250 million destination resort in San Diego near Rincon.
Preliminary plans call for development of Caesars Pauma on more than 30 acres of tribal
land on California Highway 76, off Interstate 15, just south of Temecula. It will be in the
same general area as Harrah's Rincon, another tribal casino. The resort will include
about 500 hotel rooms, more than 100,000 square feet of gaming space, a full
complement of restaurants and live entertainment venues and a spa. …Tribal chairman
Chris Deevers said Park Place was selected as the "preferred partner" by a vote of the
tribe. "The Pauma Tribe is excited about the opportunity to work with Park Place to
create a casino resort that the tribe and the community can be proud of," Deevers said in
a prepared statement. Rod Smith, Gaming Wire, Las Vegas Review-Journal, 9-18-03
Despite being edged out in its initial bid, Hard Rock Hotel President Kevin Kelley said
Friday his company will continue to pursue deals to manage California tribal casinos.
"Clearly, the Indian gaming market in California is something you can't turn your back on,"
said Kelley, who cited likely changes to the compacts that would expand current slot
machine limits for tribal gaming operators in the Golden State. "As that happens, the
gaming market is going to continue to grow and California will be, one day, the largest
gaming market in the world," Kelley said. Kelley's comments came two days after Hard
Rock lost out on its nearly 8-month-long effort to secure a deal to run an approximately
$300 million to $350 million resort near San Diego on 30 acres of land controlled by the
Pauma Tribe. Chris Jones, Las Vegas Review-Journal, 9-20-03
The opinion issued by the National Indian Gaming Commission declaring Multimedia’s games
Class II could lead to another major expansion in Indian country. Class II games are not
governed by compacts, in fact do not require compacts; that opens the door in many jurisdictions
where tribes have had difficulty reaching an agreement with the state. At least, that is what is
being said at the moment. In any case, it was a good time to own stock in Multimedia.
Multimedia Games, Inc. announced today that the National Indian Gaming Commission
(NIGC) has issued an advisory opinion letter late this afternoon designating the
Company's Reel Time Bingo(TM) Version 1.2 gaming engine (RTB 1.2), with certain
modifications, a Class II game. Business Wire, Yahoo Business, 9-24-03
“The thing that surprised me the most was how much money these machines were
making. And the number of people who are playing them who had never played a
standard slot machine,” said Charlie Lombardo, senior vice president, gaming operations,
for the tribe’s casinos in Tampa and Hollywood and three other casinos. Class II games
are bingo, pull tabs or similar games of chance, and nonhouse-banked card games, all
with or without the use of technological aids. Class II gaming on Indian lands is regulated
exclusively by tribes and the federal government through the National Indian Gaming
Commission. Marian Green, Slot Manager, September 2003
Gambling devices that look and play like slot machines are not slots but a version of
bingo, the National Indian Gaming Commission has ruled. That distinction means
American Indian tribal casinos can offer the slot like machines to the public without state
consent or oversight. The long-awaited ruling blurs the line between categories of
federally licensed tribal gambling activities and could trigger the explosive growth of tribal
slot parlors nationwide. "The ramifications of this decision are far-reaching," Merrill Lynch
gaming industry analyst David Anders said Wednesday. Rick Alm, Kansas City Star, 9-25-03
And just as a reminder for those wondering why Indian gaming has become such a big topic, even
a major issue in the recall election in California, here are the numbers from just two Indian
casinos.
Slot machine players fed record amounts of money into the machines at Foxwoods
Resort Casino in August, giving the Mashantucket Pequots their highest ever monthly slot
“win” of $77.3 million. Gamblers also left $75.8 million in the machines at Mohegan Sun,
enabling the Mohegan Indians to improve their slot machine win by 4.6 percent over the
same month last year. The Mashantucket Pequots “won” $77,312,590 for the month at
Foxwoods, keeping 8.2 percent of the record $940.8 million “handle,” which is the total
amount wagered in their 6,651 slot machines. They turned over $19.3 million to the state,
setting another record. Their win was 5.4 percent better than last August and their handle
2.2 percent higher. The casino's average daily win per slot machine unit was $375. Karen
Florin, New London, Connecticut Day, 9-16-03
Granted Mohegan Sun and Foxwoods are as big as a casino gets, but the potential for casinos
nearly as large exists on the fringes of every major population center in the United States. Indian
gaming is complex; the rules change in every state. A tribal-state compact sets the rules; take
away the tribes’ need to negotiate with the state and you take away those rule. A national “Class
II” game that produces revenues equivalent to regulated “Class III” slots would Class II, noncompacted, gaming profitable in a way it has not been up to this point. The NIGC’s opinion goes
a long way to radically alter the landscape, and, dare I use the word, revolutionize the entire
industry.
But, that is just my opinion.
Ken
Literature
Each of the following articles is a direct quote from the publication as cited. The articles in the
original publications vary in length and detail, but are always more detailed than as presented in
this report. The original article should be consulted any time the issue is of importance to you.
Arizona Republic
Arizona Tracks Need Slots To Survive, Expert Says
Long-term prospects for Arizona horse and dog tracks are not good without slot machines added
to them, an industry researcher said Wednesday. "You have to have slots at your tracks or they're
going to be gone," Richard Thalheimer, professor at the University of Louisville School of
Equine Studies and president of Thalheimer Research Associates, said in a private interview after
his presentation at the Global Gaming Expo in Las Vegas. He was one of three presenters at a
seminar called, "Saving the Tracks: Is Gaming the Answer?" His answer: an unequivocal, "yes."
Long term, though, tracks still need to figure out how to convert slot players to racing bettors, he
said. John Stearns, 9-17-03
Playing The Alcohol Card
It took three votes, a lot of soul-searching and an assurance that certain limits would still be in
place. In the end, Salt River Pima-Maricopa Indian Community decided to allow alcohol to be
sold at visitor attractions on tribal land, mainly its two Casino Arizona properties and its Talking
Stick golf course. It was an "extremely difficult" decision given the problems with alcoholism
that have troubled the tribe and countless American Indians on other reservations, said Ivan
Makil, past president of the Salt River tribe. By limiting alcohol to the casino, golf course and a
possible hotel, the community was attempting to balance social and health concerns with business
interests. … While officials say they serve alcohol as part of the casino-entertainment experience
and to be competitive, it remains a sensitive issue. "The community feels strongly about the
alcoholism we have in our community and not promoting that," said Jacob Moore, spokesman for
the Salt River Community. The tribe also knows that customers at its leading economic
enterprise expect to get a drink, as they do at its Talking Stick golf course and as they would at a
hotel that's contemplated. Those are the only places on the reservation that are allowed to sell
alcohol. John Stearns, 9-21-03
Baltimore Sun
Draft seeks casino-track alliance on locating slots
Sensing a shift in the state's political landscape, a gambling-industry lobbyist is circulating
proposed legislation that would permit three full-scale casinos in Maryland, along with thousands
of slot machines at horse racing tracks. The proposed legislation was crafted by Edward O.
Wayson, an Annapolis lobbyist whose clients include Wynn Resorts, headed by Las Vegas-based
casino tycoon Steve Wynn, and a Buffalo, N.Y.-based conglomerate that is seeking a majority
ownership stake in Rosecroft Raceway in Prince George's County. …A copy of the detailed 65page proposal, obtained by The Sun, calls for full-scale, destination-resort-type casinos in
Baltimore City, Prince George's County and Western Maryland. It does not identify specific sites
within those jurisdictions. 9-5-03
Biloxi Sun Herald
Americans learning to love casinos
A decade ago, Mississippi newspaper publisher Roland Weeks felt his community was threatened.
Casinos had arrived in Biloxi, bringing with them a bundle of pros and cons, and Weeks sensed
the city would soon face trouble. "The bottom line is whether gambling is going to be part of
Biloxi or Biloxi is going to be part of gambling," he told the Biloxi Rotary Club. …Weeks, now
retired after 33 years as publisher of The Sun Herald, recognizes Biloxi has become part of
gambling, but says, "I quite frankly have to say I was wrong. There are a lot of good things that
have come from gambling." Weeks' change of heart coincides with a broader shift in American
attitudes toward gambling. "While older Americans have come to like us, younger adults love
us," the American Gaming Association boasted in a recent annual report. It cited polls showing 91
percent of adults ages 21 to 39 find gambling acceptable compared to 81 percent of Americans
over age 50. …While most of the states choose to limit the number of casinos and the size of
payouts and losses, Mississippi has opted for a Nevada-style free market approach, which is
paying dividends. The state has been on an 11-year winning streak that's netted nearly $2 billion
in tax revenues. Combined income from the 8 percent state tax and 4 percent local tax was $330
million for the year ending June 2003, 10 percent of the state's budget, and that doesn't include
the additional hotel, restaurant and sales taxes paid by the millions of visitors drawn in by
gambling. Holden Frith and Hye Jeong, Medill News Service, 9-2-03
Resort's Additions Hurt Income
The addition of a second hotel-casino last fall is boosting revenue for Pearl River Resort, but the
additional operations costs continue to take a bite out of net income. …Revenue for the third
quarter, which ended June 30, rose 23 percent to $74.3 million from the same period last year.
Through the first three quarters, revenue rose 21 percent to $218 million. Net income,
meanwhile, fell 44 percent in the quarter to $13.65 million. Through the first nine months,
revenue was down 51 percent, falling to $37 million. The drop reflects the added cost of almost
doubling the resorts' attractions, increasing hotel rooms to 1,060, gaming tables to 132 and slot
machines to 4,700. The number of employees, both full and part time, rose to 4,000 from 2,800.
…Mississippi's 29 state-licensed commercial casinos have seen revenue flatten and drop slightly
now that the explosive growth of the early 1990s is over and the economy has been soft.
Revenue in July was down 4.6 percent for all 29 casinos, and down almost 2 percent from
January through July. Barbara Powell, Associated Press, 9-12-03
Hard Rock Casino Clears Hurdles
Construction could start as early as this fall on the first new casino development in Biloxi in four
years. The Hard Rock Casino received two key approvals Tuesday from the City Council and the
Commission on Marine Resources. The only approvals the project still needs are from the
Mississippi Department of Environmental Quality and the U.S. Army Corps of Engineers. Then
the casino will file a notice to proceed with the Mississippi Gaming Commission, which has
already approved the plans. Developers hope to begin construction on a parking garage near the
Biloxi Commercial Harbor in November when the work would have little impact on fishermen
during shrimping season. If all goes according to schedule, the $225 million casino hotel would
open in May or June 2005. The casino would go east of Beau Rivage, which was the last casino
to open on the Coast. It opened in December 1999. "I think bringing the brand name of Hard
Rock to the Coast is a win-win, not only for the city, but the entire Coast," said Joe Billhimer,
president and chief executive officer of Premier Entertainment, the developer. "Just that name
recognition will bring tourists." 9-16-03
Casino Revenues Up For August
The Laila Ali-Christy Martin championship fight helped Coast casinos report a solid August, with
the 12 casinos winning $97.7 million. That's a 4.1 percent increase over the $93.8 million that
was won in August 2002, according to the Mississippi State Tax Commission. August was even
better for the Mississippi River casinos, who won $127.9 million, compared to $118.7 million in
August 2002. 9-24-03
Gaming Official Wants More Casino Security
Twenty-one robberies at Mississippi casinos this year have regulators talking again of repealing a
ban on the use of armed security guards. "No matter how good law enforcement is locally, we
owe it to the guests who come to Mississippi to provide as safe an environment as we can,"
Mississippi Gaming Commission chairman Len Blackwell of Gulfport said. He said he will urge
Gov. Ronnie Musgrove to name a task force to recommend steps that could be take at the casinos.
"Different minds need to be working on this," Blackwell said. "It might make sense to form a
multi-agency task force of people in the gaming industry, government and law enforcement to get
something done." Associated Press, 9-29-03
Blood Horse Magazine
Racino Appears to Impact Riverboat Casinos
Slot machines at Louisiana Downs in Bossier City, La., appear to have impacted five riverboat
casinos in the Shreveport/Bossier City market, according to July revenue reports filed with the
Louisiana Gaming Control Board. Louisiana Downs opened its 905-machine slots parlor May
21. The track, owned by Harrah's Entertainment, is located about 10 minutes east of the five
riverboat casinos docked along the Red River between Shreveport and Bossier City. The
racetrack slots pulled in gross revenue of more than $5 million in July, up from $4.6 million in
June. The five riverboat casinos reported total gross revenue of $68.2 million in July, down $4.5
million from the same month in 2002. Gaming control board chairman Hillary Crain said the
$4.5-million decrease showed "almost a direct correlation between the boats and the track." Hector
San Miguel, 9-9-03
Chicago Daily Herald
Latest stats show casino numbers fall as taxes rise
Riverboat casino revenues dropped significantly for the second straight month, a decline the
industry blames on new state taxes. "We just continue to lose market share to other states. It's
because of the taxes," said Tom Swoik, executive director of the Illinois Casino Gaming
Association, an umbrella group for the state's riverboats. … Several of the state's most popular
casinos reported double-digit declines. Hollywood Casino in Aurora reported a nearly 44 percent
decline in attendance and nearly 25 percent drop in revenues last month compared to August
2002. Joliet Harrah's reported an almost 46 percent drop in attendance and 26 percent drop in
revenues. In Elgin, revenues dropped 2.35 percent while attendance increased 1.45 percent.
Overall, Illinois' nine casinos paid $64.7 million in taxes in August. That's a slight increase fro the
previous month's tax total of $64.3 million. John Patterson,, 9-9-03
Chicago Sun Times
Casinos blast Illinois tax increase
Casino executives Tuesday blamed recent tax hikes for layoffs and warned state legislators the
increase would contribute to a "trickle down" effect on affiliated charities, businesses and
communities the gambling industry says it lifted from economic depression. … "As a direct
result of this tax policy, we have laid off nearly 700 employees and are not filling close to 600
additional vacancies. Additionally, we anticipate there may be further layoffs in the months to
come," said Tom Swoik, executive director of the Illinois Casino Gaming Association. Testimony
at a hearing differed from Gov. Blagojevich's projections that the tax will bring in $200 million a
year. Instead, the state is on pace to bring in only $160 million from the higher tax, said Dan
Long, executive director of the Illinois Economic and Fiscal Commission. Casino revenues were
down 9 percent in the month of August, with Joliet's Harrah's and Aurora's Hollywood Casino
reporting the highest losses at 27 percent and 25 percent, respectively. Rummana Hussain, 9-3-03
Casino Journal
New Heights
Carl Icahn takes distressed casinos and transforms them into money makers. The keys to his
success: Private ownership, debt free operations and a business philosophy that emphasizes
customer service, value and having fun. In his decades-long career as a corporate financier, Carl
Icahn has gambled on real estate, mining, the airline industry, auto parts and telecommunications.
Along the way he has amassed a $4.5 billion fortune and left many a corporate manager with a
bad case of indigestion. Though he has more than his fair share of critics, there’s no arguing with
the Icahn formula for success, a formula that has worked wonders for the four casino properties
he owns in Las Vegas and Atlantic City. “The casino business is a good investment,” Icahn said
during an exclusive interview with Casino Journal in his New York office. “You get a very good
return on your investment if you keep your costs down. I’m an investor. I get joy out of finding
good investments. The casino industry is more fun than a lot of businesses. The marketing is
something I can relate to. It’s like the movie business—the difference is, you can make money in
the casino business.” Making money is something Icahn is extraordinarily good at. In 1997 he
acquired the ailing Stratosphere Casino Hotel & Tower, and promptly took it out of the red. That
investment was followed by the purchase of controlling interest in the Sands Casino Hotel in
Atlantic City and two Arizona Charlie’s properties in Las Vegas. “I like to buy things that are a
good value,” Icahn says. “We have turned Stratosphere around. The original owners put $500
million into the Stratosphere, and we don’t have any debt. And it’s a tourist attraction. That’s why
it was a bargain. We basically got the tourist attraction element of it for nothing.” Matt Connor, Vol. 16,
No. 10, October 2003
Denver Post
Video-Lottery Firm's Execs Are Indicted
Two leaders of Wembley, the British company pursuing voter approval to install video-gaming
machines at Colorado racetracks, were indicted Tuesday in Rhode Island for allegedly offering
bribes to a state legislator. … The indictment alleges that in 2000 and 2001 Wembley's Nigel
Potter and Lincoln Park's Daniel Bucci conspired to offer McKinnon & Harwood, a Pawtucket,
R.I., law firm, six years of illegal payments totaling $4.5 million. The payments were offered in
exchange for state Rep. John Harwood's support in swaying the state lottery commission to
approve 1,000 video-lottery terminals and his help in quelling legislation proposing a new Indian
casino. …Wembley USA, a subsidiary of Wembley plc, has budgeted $10 million to persuade
Colorado voters to approve 500 video-lottery machines at each of five tracks, including the four it
owns in Pueblo, Colorado Springs, Commerce City and unincorporated Arapahoe County. The
Cloverleaf Kennel Club owns the fifth racetrack, in Loveland. Jason Blevins, 9-10-03
Video-Lottery Foes Seek State Probe
The opposition to a ballot initiative that would allow video lottery terminals at Colorado's horse
and dog tracks claims the amendment's sponsors have violated campaign finance laws. Don't
Turn Racetracks Into Casinos, funded by the state's casinos, has asked Secretary of State Donetta
Davidson to investigate campaign contributions to the pro-video-gaming group Support
Colorado's Economy and Environment. …The casino-backed group alleges that the Wembleybacked group is masking the identity of its campaign contributors. More than $2.1 million in
contributions supporting Amendment 33 have come from five companies, all affiliates of
Wembley USA. Jason Blevins, 9-19-03
Detroit News
Blackout Blamed For Drop In Casinos' Revenues
Revenues at Detroit's three casinos dropped 1 percent last month, a dip blamed on the Aug. 14
blackout that forced them to close for nearly two days. The decline broke a three-month string of
revenue increases. The blackout, the largest in North American history, stretched across eight
U.S. states and Ontario and knocked out power for nearly 50 million people. "Given that we lost
that day and a half, we're happy with August," said Salvatore Semola, chief operating officer at
Greektown Casino. …Greektown's revenues fell 1 percent to $28.6 million. MGM Grand
Detroit's August revenues increased 11 percent to $34.9 million compared with August 2002,
making it the area's market-share leader for the month. In August 2002, the MGM Mirage
property was handicapped by the closure of its key freeway exit. MotorCity Casino's revenues
sank 11 percent to $31.4 million. Becky Yerak, 9-16-03
2 Casinos, Tribe To Settle
A tiny Michigan Indian tribe has a tentative deal to settle its 6-year-old lawsuit against two
Detroit casinos, clearing a major hurdle for construction to start on lavish gambling halls in time
for the 2006 Super Bowl. A preliminary -- and unsigned -- agreement has been reached between
the Lac Vieux Desert Band of Lake Superior Chippewa Indians and Greektown and MotorCity
casinos. Details are still being completed, but each casino is expected to pay more than $35
million over 25 years to the Upper Peninsula tribe. Lac Vieux sued Detroit in 1997, saying its
constitutional rights were trampled when the city gave preferential treatment to MotorCity and
Greektown ownership groups that backed efforts to legalize casinos. In September 2002, a U.S.
appeals court told the city it couldn't issue building permits for permanent gambling halls until the
case was resolved. Becky Yerak, 9-19-03
Greektown Ex-Owners File Lawsuit
Two former owners of 40 percent of Greektown Casino are suing the current principal investor of
Detroit's smallest gambling hall, accusing it of defaulting on an $11 million payment that was to
be made in August as part of a 2000 purchase agreement. Dimitrios Papas and Ted Gatzaros filed
a lawsuit Tuesday in Wayne County Circuit Court against the casino and the Sault Ste. Marie
Tribe of Chippewa Indians, an Upper Peninsula Indian tribe that owns about 95 percent of
Greektown. Other Sault affiliates named as defendants include Monroe Partners and Kewadin
Greektown Casino. On Aug. 11, Monroe Partners was due to pay $11.1 million to Papas and
Gatzaros but defaulted, the lawsuit says. Becky Yerak, 9-24-03
Gambling Magazine
Casinos Win $182 Million In August
Louisiana's state-licensed casinos won $182 million from gamblers in August, a 4.6 percent
increase from a year ago, state police reported Tuesday. Virtually all of the increase from the
August 2002 figure of $173.5 million was due to Harrah's New Orleans Casino and the state's
second race-track casino at Louisiana Downs in Bossier City. The state's 14 riverboat casinos
won $140.3 million last month, compared with $139.4 million in August 2002. Harrah's New
Orleans Casino won $25.3 million in August, up from the year-ago figure of $22.5 million. Slot
machines at race tracks won $16.4 million last month, compared with $11.6 million in August
2002, a difference due to this year's opening of a slot machine casino at Louisiana Downs in
Bossier City. Louisiana Downs won $4.8 million last year. The Shreveport-Bossier City market,
which also has five dockside casinos, increased from $72.3 million in August 2002 to $75.7
million last month. The other market heavily dependent upon Texas gamblers, Lake Charles, saw
its winnings drop slightly, from $40.3 million in August 2002 to $40.2 million last month. The
market's pair of two-boat casino complexes won $28.8 million, while the Delta Downs slot casino
at Vinton won $11.5 million. 9-19-03
Gaming Revenue News
Nevada: Clark County gaming revenues were up a strong 16.8 percent in June. Year-to-date,
Clark County revenue is up 3.1 percent. The Strip was up 19.2 percent in June; Downtown Las
Vegas gained 4.5 percent, Laughlin was flat and Boulder Strip grew 26.8 percent. …Washoe
County’s revenues dropped 1.2 percent in June, with Reno off 0.4 percent, Sparks down 10.1
percent and North Lake Tahoe was up 0.8 percent. …South Lake Tahoe was down 3.7 percent in
June.
Atlantic City: Atlantic City gaming revenues grew 8.3 percent in July, compared to a 0.7 percent
increase the year before.
Colorado: Colorado revenues fell 4.5 percent in July. …Black Hawk declined 5.7 percent for the
month, Central City was flat and Cripple Creek declined 1.7 percent.
Mississippi: Mississippi revenues declined 5.0 percent in July. Last year’s revenues were 4.3
percent ahead of 2001’s results. …For July, the Coastal region fell 3.5 percent, the North River
area dropped 5.7 percent and South River fell 8.4 percent. Vol. 17, No.9, September 2003
Gaming Update: Colorado Division of Gaming
Revenues not as Hot in July. Colorado casinos were not as hot in July as in the past. In what
is typically the best month of the year for casinos, gaming establishments statewide generated
$61.7 million in AGP in July…down 4.5 percent from $64.6 million in July 2002. Vol. XII, Issue 9,
September 2003
Indian Country Today
Indian Gaming Is Healthy And Growing
Gaming, the only consistently successful means of economic development in Indian country,
continues to expand. The Indian gaming industry has successfully created employment
opportunities for both tribal members and non-Indians alike, funded tribal housing, medical,
cultural and educational programs, and allowed for diversification of tribal assets and businesses.
According to figures from the National Indian Gaming Commission (NIGC), the industry’s
federal regulator, 330 Indian gaming facilities generated almost $14.5 billion in 2002, up 14
percent from the 2001 total of $12.8 billion. "That sends the message that the public continues to
have confidence they can go, do go and will go to tribal gaming facilities to spend their gaming
dollars," said Philip Hogen, chairman of the NIGC, in a recent interview. "If there were a lot of
trouble spots out there, [Indian casinos] probably wouldn’t be growing at that rate." While
certainly a lot of money, the National Indian Gaming Association (NIGA) reports that the 2001
total represented less than 10 percent of that year’s revenue for the entire gaming industry, which
includes lotteries, horseracing and commercial casinos (both land-based and on riverboats).
There are currently 562 federally recognized tribes throughout the United States, 201 of which
are actively engaged in either Class II or Class III gaming. According to NIGA, 249 state-tribal
gaming compacts are currently in effect in 29 states. Nationwide, some 300,000 jobs are directly
attributable to Indian gaming; non-Indians hold 75 percent of these jobs. It should be noted,
however, that in certain remote areas of high unemployment, a higher percentage or even a
majority of gaming-related jobs are held by Indians. Tom Wanamaker, 9-5-03
Kansas Loses Another Decision To Ho-Chunk Inc.
Ho-Chunk Inc., the commercial company of the Winnebago Tribe, continues to beat the state of
Kansas in federal court over fuel tax revenue while the state continues to try to stay in the game
and take its lumps. The 10th Circuit Court of Appeals ruled in favor of Ho-Chunk Inc. and
affirmed the temporary restraining order that prevents the state from collecting motor fuel taxes
on fuel transported from Nebraska to the Sac and Fox, Kickapoo and the Iowa tribes imposed by
the lower U.S. District Court. U.S. District Judge Dale E. Saffels barred the state from collecting
the taxes in May 2002. He also stopped criminal proceedings against Tribal Chairman John
Blackhawk, Lance Morgan, executive director of Ho-Chunk Inc. Morgan’s wife Erin, manager of
a tribal business and a tribal employee. Saffels passed away shortly after issuing that temporary
injunction. "We are very pleased with the opinion. Now we will see what happens next," said
Skip Durocher, attorney for the Winnebago Tribe. "It makes you wonder whether at some point
the state of Kansas will say enough is enough and will realize they won’t beat the tribes," he said.
David Melmer, 9-8-03
International Gaming & Wagering Business
Nation Building: Tribal Casinos Fuel A Movement Aimed At Preserving Language And
Customs
Indian children and adults at the Pechanga tribal reservation in San Diego County are learning to
speak Luiseño, their nearly extinct native language. The Agua Caliente Band of Cahuilla Indians
of Palm Springs recently purchased thousands of acres of ancestral lands in nearby Palm, Murray,
Andreas and Tahquitz canyons. Eight tribes in Central California have chartered an intertribal
court system to hear child welfare and housing cases. And a dozen bands of the Kumeyaay Nation
in Southern California have formed a repatriations committee to recover human remains and
sacred artifacts from colleges and museums. Meanwhile, tribal leaders throughout California are
rewriting inefficient and outdated governing documents that fail to reflect their culture and
heritage. Many of the documents were penned by the Bureau of Indian Affairs, which drafted the
Indian Reorganization Act of 1934 and Articles of Association in the 1950s. Academics refer to
these and other efforts by California tribes to recapture and preserve their culture, heritage and
values as “nation building.” It’s a trend that is sweeping not only the Golden State, but the entire
country. And it’s no coincidence the nation building movement parallels the growth of tribal
government gaming. “With gaming we finally have the resources and the ability to build our
governments and preserve our customs and do things we couldn’t do before,” said Daniel Tucker,
chairman of the Sycuan Band of the Kumeyaay Indians near San Diego. “That’s important.
People have to understand we are not just Indians who operate casinos. We are nations. We are
governments.” Dave Palermo, Vol. 24, No. 9, September 2003
Hartford Courier
Casinos Attract Big-Time Proposal
An eclectic New York investment group led by one-time Oscar nominee Cathy Moriarty-Gentile
and Zsa Zsa Gabor's daughter, Francesca Hilton, is quietly pitching to municipal and state
officials a combination theme park and movie studio along the Thames River in Preston, across
from Mohegan Sun casino. The massive project, which would include thousands of hotel rooms,
an equestrian center and an art school, could transform the vacant state-owned Norwich Hospital
property into a national attraction - while taking advantage of the tens of thousands of patrons
visiting Mohegan Sun and Foxwoods Resort casinos daily. Rick Green, 9-11-03
Dean Lobbies For Indian Law Center
The dean of the University of Connecticut's School of Law said she is attempting to gather the
funding to open an academic center that would focus on tribal legal issues. Nell Jessup Newton,
an expert in eastern Indian tribes, said the center would focus on land claims, federal recognition,
Indian gaming, tribal governance and public education about tribal law matters. Many law
schools have programs that address western tribes, but no centers focus on eastern tribes, Newton
said. Newton said she brainstormed the idea during an interview with a reporter who was asking
questions when the Rhode Island State Police raided the Narragansett Indians' smoke shop in
July. "That's when it came to me that there is no resource where anyone - citizens, legislators,
reporters - can get this information," she said. Newton has asked U.S. Rep. Rob Simmons to
explore the possibility of applying for $2 million from the Bureau of Indian Affairs to launch the
center. Simmons' office said he is consulting state officials. 9-15-03
Kansas City Star
Riverboats raked in a record amount in August
The Kansas City casino market reached a new top in August. Area riverboats raked in a record
$56.06 million for the month, bringing a dramatic halt to a recent market slide. From the day the
first boats opened in 1994 until March of this year, Kansas City gambling revenues had grown
every month over the same month the previous year. In four of the five months before August,
however, revenues had shrunk. "August has always been a strong month for the industry," said
Troy Stremming, a vice president at Ameristar Casino Hotel Kansas City and president of the
Missouri Riverboat Gaming Association. The state's 11 casinos also set a record in August,
winning a combined $121.6 million from gamblers. Rick Alm, 9-11-03
Slot Machine Maker Gets Extension Of Temporary License
Missouri casino regulators have given a Japanese-based slot manufacturer until the end of
October to satisfy state concerns over ownership issues or face loss of its license. Las Vegasbased slot maker Sigma Game Inc. won an unusual 90-day state license earlier this year when a
Cole County, Mo., judge ordered the Missouri Gaming Commission to issue the license to allow
time for the state and the company to resolve the dispute. The parties in May tentatively agreed
to settle the matter by barring Sigma's controlling stockholder from exercising any management
responsibility. That deal, however, required approval by an estimated 80 state and tribal gaming
jurisdictions where Sigma also is licensed. To date, none of the jurisdictions has signed off on the
deal, Director Kevin Mullally told gaming commissioners Friday. The commission's action Friday
extended the temporary license to Oct. 31. Rick Alm, 9-16-03
Kentucky Post
Jones: Tracks Need Full-Scale Casinos
Some proponents of expanded gambling want to allow horse tracks an exclusive franchise to
operate video slot machines. Others want to legalize full-scale casinos in Kentucky. Former Gov.
Brereton Jones is proposing a little of both. The Versailles Democrat and horse breeder said he
and others interested in expanded gambling will propose a constitutional amendment that would
legalize all sorts of casino-style games -- not just slot machines -- at Kentucky's eight horse
racing tracks. The plan would also earmark state proceeds from expanded gambling for such
needs as education and healthcare, he said. Jones, who served as governor from 1991-95, won't
say right now who is on board with his idea, but he hopes to draft legislation for discussion before
the Nov. 4 election. Courtney Kinney. , 9-13-03
Las Vegas Review-Journal
The Power of Pigskin
It's game time. It's first and 10. Time for sports books to get busy and coffers to get full. Locals
casino operators are ready for some football, and, the bosses say, so are Las Vegans. After teasing
football fanatics with preseason pro games and a few dozen college games the past two
Saturdays, the National Football League kicks off its regular season Thursday night. Next
weekend, both the college and NFL slates will be full, and executives for the biggest Las Vegas
locals casino operators eagerly await the action. Football games are vital attractions that lure Las
Vegans to the dozens of casinos sprinkled around the valley, locals bosses said. It's a given that
locals casino sports books make most of their revenue during football season, tapping the public's
readiness to bet on games and to play ultraprofitable -- for the books -- parlay cards. But football
is much more than a sports book revenue driver; it's a key factor in getting Las Vegans back into
the habit of regularly visiting locals casinos, the bosses said. Jeff Simpson, Gaming Wire, 9-2-03
Older gamblers bet more, survey finds
Middle-aged tourists' have bigger gambling budgets than do senior citizens and visitors in their
20s and 30s, Las Vegas Convention and Visitors Authority statistics show. The results, culled
from the 2002 Las Vegas Visitor Profile Study, reflect the relative wealth of each age group,
authority Research Director Kevin Bagger said. And that's why almost all casinos target people
between 50 and 64, gamblers' demographic sweet spot, University of Nevada, Las Vegas
professor Bill Thompson said. Among visitors who admit gambling during their Las Vegas trips,
gamblers in their 20s said they had per-trip gambling budgets of $377, the smallest number of any
age group measured. Each successively older age group admits to gambling more than younger
groups admit, until a slight drop-off from the $608 reported by those 50 to 59 to the $605
admitted by the 60 to 64 age group. Those in the 65 and older category report a big drop-off, to
$472. Jeff Simpson, Gaming Wire, 9-5-03
First Of America's Greenbacks To Be Colorized
The first of America's greenbacks to be colorized, the $20 note sporting splashes of peach, blue
and yellow, will start appearing next month in cash registers, ATM machines and wallets. Banks
will be able to start stocking up on the new twenties beginning Oct. 9, said Marsha Reidhill, the
Federal Reserve's cash maven. On that date, banks can send armored trucks to a Federal Reserve
bank to get a stash of the new notes, she said. The Federal Reserve has been stocking up on the
new bills for four months, she said. About 915 million of the twenties have been printed by the
Bureau of Engraving and Printing, maker of the nation's paper currency, and will be available to
banks in October, officials from the Fed and the bureau said. 9-9-03
Gaming Win Up In July
Fueled by strong July performances on the Strip and in North Las Vegas, Nevada casinos won
$825.5 million from gamblers, 2.6 percent more than in July 2002, the Nevada Gaming Control
Board reported Tuesday. Strip casinos recorded the market's best July on record, with the $397.7
million won topping the summer month's previous high, $397.3 million in July 2000. North Las
Vegas casinos won $20.3 million, up 22.9 percent compared with the $16.5 million won in July
2002. Despite the positive results in Clark County, which also set a July record with $655.9
million, poor returns from Reno and Lake Tahoe reduced the statewide numbers. Jeff Simpson,
Gaming Wire, 9-10-03
Was Gambling Tax Boost Preventable?
Casino operators need to mobilize their work forces and do a better job educating lawmakers to
prevent big tax increases such as those enacted earlier this year in Illinois, top gaming association
officials said Tuesday. But Tom Swoik, executive director of the Illinois Gaming Association,
said his lobbying group and the nine riverboats he represents did all they could to prevent the
increased tax bite. Swoik and the other state casino lobbyists spoke at a Global Gaming Expo
seminar at the Las Vegas Convention Center. Each association head commented on his own
group's battle to prevent tax increases, but the Illinois tax jumps dominated the panel discussion.
… "It's our fault; it's the operators fault," said Feldman, who blamed casino companies for
complacency. …"For the past 50 years there's an incredible disconnect between the industry and
legislators," Feldman said. "It angered us that they didn't understand us, that they didn't get it."
MGM Mirage recently withdrew from the Nevada Resort Association, planning instead to run its
lobbying activities in-house, under Feldman's direction. The company's plan to prevent new tax
increases will start with educating and mobilizing its work force, he said. The second phase will
be to mobilize vendors, suppliers and business partners, followed by targeted public outreach,
aimed at educating the business community, politicians and the general public about the industry's
perspective. "We forgot to tell our story," Feldman said. "Our company has 36,000 employees in
Clark County. Prior to this year do you think we ever talked to them (about these issues)?" Jeff
Simpson, Gaming Wire, 9-17-03
Starring In A Limited Engagement
Slot manufacturers shine at gaming convention but have brief amount of time to deliver results
Slot machines were the stars of the Global Gaming Expo trade show that wrapped up Thursday in
Las Vegas, but manufacturers have about 18 months to prove their promised potential or their
companies' stocks may flag, analysts warned. Deutsche Bank analyst Marc Falcone said
suppliers should continue benefiting from the domestic and international expansion of gaming,
the introduction of new technology and favorable demographic trends that support long-term
growth in the casino industry. Merrill Lynch Vice President David Anders agreed that investors
love slot makers because "intellectually they make so much sense." However, several analysts
suggested the industry has only about a year and a half to prove that new gaming markets will
significantly boost their sales or the slot makers could see their stocks tumble. Slot makers have
made large investments in their companies for several years on the promise gaming will
proliferate, "and something needs to happen soon or investors will give up and values will fall
back" Anders said. Rod Smith, Gaming Wire, 9-19-03
Developer Will Build Downtown
A developer whose past projects led hordes of locals to live, work and play in the Southern
Nevada suburbs hopes his latest venture will persuade others to return to downtown Las Vegas.
Mark Fine, who helped plan portions of both Green Valley and Summerlin during his days with
American Nevada Corp. and The Howard Hughes Corp., respectively, said Monday his company
will build a 100,000-square-foot office project on a vacant 4.5-acre parcel southeast of the
Spaghetti Bowl. …."We've basically grown out to our growth boundary," said Fine, who has
served as president of Mark L. Fine & Associates since 1995. "Our streets are full; our schools on
the perimeter are full. "People are going to have to look to other venues (outside the suburbs)
when it comes to where they're going to live, and I think there are a lot of benefits of being back
in the center of town." Chris Jones, Gaming Wire, 9-23-03
Mandalay Bay Names But Delays New Tower Opening
The new all-suite hotel tower at Mandalay Bay won't open until late December, Mandalay Resort
Group executives said Tuesday. The 1,122-suite tower had been slated to open around
Thanksgiving, but the delayed opening is still expected to take place before the high-demand
nights surrounding New Year's. The nights between Thanksgiving and Christmas are traditionally
among the year's slowest; industry experts suggest that the property won't lose much revenue by
delaying the addition of the new room supply until demand heats up. Meantime, Mandalay
bosses announced the tower finally has a name, a moniker that manages to be generic and
idiosyncratic at the same time: THE hotel at Mandalay Bay. Gaming Wire, 9-24-03
Desert Passage Bought, Group Says
A group fronted by East Coast developer David Edelstein and investment firm RFR Holding
reached an agreement to buy the Desert Passage at Aladdin shopping center for approximately
$235 million, members of the group said Thursday. Aby Rosen, who heads New York-based
RFR, said he and business partner Michael Fuchs have joined with Edelstein to purchase the
center. Sales contracts with mall owner Trizec Properties have been signed, Rosen said. The deal
is expected to close late this year or in early 2004. "Our two companies have acquired the asset,"
Rosen said of Edelstein, RFR and Desert Passage. Rosen added it's still too soon to discuss what
changes might occur at the 475,000-square-foot, Arabian-themed mall, other than to say some
changes will take place. Chris Jones, Gaming Wire, 9-26-03
Las Vegas Sun
Findings in Teamsters case upheld
A federal judge has upheld the ruling of a review board that investigated accusations that a
Chicago Teamsters official tried to steer Las Vegas convention jobs away from the union and to
his brother's temporary labor firm. U.S. District Judge Loretta Preska of the Southern District of
New York affirmed expulsions recommended by the Independent Review Board -- a federal body
that serves as a watchdog of the union -- in the investigation of charges against William T. Hogan
Jr. and Dane M. Passo. 9-2-03
Wendy's Has High Hopes For New Strip Locations
One of the biggest names in fast food is opening its first two stores on the Las Vegas Strip -joining an increasing number of low-rent dining options that stand in marked contrast to Las
Vegas' burgeoning gourmet scene. …Those food courts join two Strip-centered fast-food centers
that are new in recent months, including one at the Hawaiian Marketplace retail center near
Harmon Avenue at Las Vegas Boulevard and a smaller food court in front of Harrah's. All told,
the food courts will bring nearly 40 fast-food eateries to the Strip. "I don't know if I'd call it a
trend or a deluge," said George Connor, a retail broker at Colliers International in Las Vegas. - Liz
Benston, 9-9-03
Visitor Volume, Hotel Occupancy Up In July
Visitation to Las Vegas was up by 4.5 percent in July over the previous year as statistics in nearly
every tourism category showed improvements from July 2002. The Las Vegas Convention and
Visitors Authority said Wednesday that visitor volume hit 3.1 million, up from 3 million in the
same month the previous year. Convention attendance was up 70 percent to 264,738 for the
month and motel and hotel occupancy was up 3.6 points to 88 percent. 9-11-03
Park Place Cuts 42 Craps Jobs
Park Place Entertainment Corp. has eliminated craps supervisor jobs at its Paris and Bally's
resorts following similar moves by other major Strip resorts. Of the 42 eliminated positions, 15
managers accepted promotions to floor supervisor. Of the remaining 27 managers, 25 were laid
off, one person retired and another accepted another job outside the company. The craps tables at
the resorts were "overstaffed," Park Place spokesman Robert Stewart said. "We're always trying
to take a look at the most efficient way to serve our customers," Stewart said. "This is a relatively
small example of that process at work." Liz Benston, 9-12-03
The Point Of Mega Millions Lottery
The whole point of the Mega Millions lottery was huge jackpots, headline jackpots, crowdsmobbing-the-gas-stations jackpots. But more than a year after the multistate Mega Millions
lottery was created, the top prizes haven't been the record-breakers organizers had hoped -leaving the 10 member states still waiting for a lottery windfall to cushion falling tax revenue. …
The biggest Mega Million jackpot so far is $180 million -- a nice chunk of money, but not enough
to have players skipping work to line up for lottery tickets. …So the Mega Millions drawings
started in Atlanta in May 2002, with the seven original states joined by New York and Ohio.
Washington joined last September. State budget writers were crossing their fingers for a jackpot
so big people would buy Mega Millions tickets by the handful, giving states a windfall just as the
tax rolls were wilting. But the huge jackpots have yet to materialize, although statistics indicate
it's only a matter of time. The biggest Mega Million jackpot so far is $180 million -- a nice chunk
of money, but not enough to have players skipping work to line up for lottery tickets. Washington
at first hoped for $110 million in Mega Millions sales for the first fiscal year, but sales were just
$45.5 million. "This is not working as originally projected," said Washington Lottery spokesman
D. Eric Jones. Kristen Wyatt, Associated Press, 9-15-03
LV Passenger Count Down
Las Vegas' McCarran International Airport said it served 3.242 million passengers in August, a
decline of .2 percent from August 2002. 9-18-03
Regulators Probe iGames' Ties With Cheat
Nevada regulators are requiring a Las Vegas gambling device company and its chief executive to
submit to a background licensing investigation over concerns about a business arrangement with
a convicted slot cheat. Last week, the Nevada Gaming Commission voted to investigate iGames
Entertainment Inc. and its chief executive, Jeremy Stein for suitibility as a manufacturer and
distributor of gambling equipment in Nevada. … Last year, the company acquired patents,
trademarks and all other rights to a slot machine security product called "Protector" designed to
prevent the cheating of slot machines. The device was invented by Tommy Glenn Carmichael, a
notorious slot cheat who was added to Nevada's Black Book of banned casino players this year
after serving time in prison for cheating casinos in Las Vegas and Atlantic City out of millions of
dollars. Carmichael receives a royalty fee on the sale of each device. The device was approved
by Nevada regulators for use in the state's casinos about a year ago and is already in use in
multiple Las Vegas properties. …The device could be converted to a slot-cheating mechanism if
it were tinkered with, however, Scherer said. Liz Benston, 9-22-03
Power Contract At Issue
The state Public Utilities Commission staff on Friday filed a motion to dismiss The Venetian
hotel-casino's application to leave the Nevada Power grid and buy electricity elsewhere. …just
days after the commission rescinded an order that would have allowed four large power users,
including MGM MIRAGE and Station Casinos, to buy power from Nevada Power competitors.
9-22-03
Resort Posts $2.5 Million Loss
The Aladdin hotel-casino, citing soft table play in its casino, lost $2.5 million in August,
according to a report it filed with the U.S. Bankruptcy Court in Las Vegas Tuesday. …In August
2002, the company reported a loss of $683,851 on revenue of $20.6 million, expenses of $20.7
million and reorganization expenses of $148,583. 9-25-03
Motley Fool
Hail Caesars
"Gambling is a sure way of getting nothing for something." At least that's what Nick the Greek
used to say. Park Place (NYSE: PPE) investors can only hope the opposite turns out to be true as
the casino giant makes the costly commitment to change its name to Caesars Entertainment in
January 2004. In the extremely competitive gaming industry, you have to wonder how that
consideration even got executive attention. Consider the following: Native American gaming in
California and New York threatens the traditional gaming markets in Nevada and New Jersey.
Although Park Place will build a Caesars casino with the Pauma-Yuima Band of Mission Indians
close to Los Angeles and San Diego, operations like these will be of little consequence if the
traditional properties have significant reductions in revenue. Pennsylvania, Maryland, Delaware,
and Kentucky are considering allowing limited casino gaming. Other states may do the same as
they try to balance their budgets. Some states are looking at adding casino or lottery operations at
racetracks. Even current gaming states may increase "sin taxes." At every corner, the casino
business is threatened. Plus, in its last annual report, and recent quarterly reports, Park Place
stated its goal was to reduce debt. Standard & Poor's saw the spending plans for the name change
and put the company's credit rating on watch with negative implications. Given all that, is
changing the corporate name really the best move for Park Place right now? Well, perhaps it is.
Park Place is better positioning itself for national and international marketing. With 27 gaming
properties, having a stable of names like Bally's and Flamingo requires advertising to be focused
at the resort level. By having a single international name like Caesars for more than half the
properties, with the namesake resort in Las Vegas, Park Place may be ready to cut marketing
costs, focus its corporate identity, and leverage its underperforming assets by associating them
with one of the world's great resorts. In a crowded market, and one with many small players,
being the big name could be a significant advantage. A corporate name change is not required to
re-brand individual properties. A re-branding, however, could help Park Place lift its profit
margins considerably -- and the stock might follow suit. W.D. Crotty, 9-22-03
Press of Atlantic City
Trump axes 300 workers
More than 300 Trump year-round employees, predominantly full-timers, lost their jobs this week
as the casino company struggles with new competition, higher gaming taxes, a soft economy and
declining financial results. The job cuts affected all departments at the three Atlantic City Trump
casinos - Trump Plaza Hotel and Casino, Trump Marina Hotel Casino and Trump Taj Mahal
Casino Resort - and all job levels, but were felt mostly at the supervisor and middle-manager
level, said Craig Keyser, executive vice president for human resources and administration. Fewer
than 20 of the jobs cut were part time, he said. Joe Weinert, 9-8-03
12 Casinos Win Record $475M.
The city's 12 casinos won a record $475 million from gamblers in August, easing fears that
Borgata Hotel Casino & Spa is not drawing enough new visitors to resort. August gross gambling
revenue jumped 11.2 percent this year, the Casino Control Commission reported Thursday. The
increase was the largest of the year and came after a 4.4 increase during July. Joseph Swavy. 9-12-03
Union Choice Has Dems Paying For Casino Tax
Citing concerns about Gov. James E. McGreevey's handling of casino taxes this summer, the
city's largest union has endorsed the three Republican candidates running for legislative office in
the 2nd District. Local 54 of the Hotel Employees and Restaurant Employees International Union
has thrown its support behind the campaigns of state Sen. Bill Gormley, Assemblyman Frank
Blee and Assemblyman Kirk Conover. The incumbents are being challenged by Democratic
Senate hopeful Tom Swift and Assembly candidates Steve Swift and Alisa Cooper in November's
election. The 2nd District includes most of Atlantic County. Local 54 endorsed McGreevey
during his 2001 campaign for governor, but union President Robert McDevitt said his members
were disappointed by the increased taxes levied on the casino industry this year. The larger taxes
have been blamed in part for 300 layoffs at the Trump properties last month. Joseph Swavy, 9-24-03
CCC Fines Marina $60K. For Minor’s Visits
The Casino Control Commission fined Trump Marina Hotel Casino $60,000 for allowing a minor
to gamble 68 times, angering Division of Gaming Enforcement officials who sought a record
$199,000 fine. DGE attorneys were further miffed that the commission decided the issue within
30 seconds of hearing an hour's worth of arguments from the DGE and Trump Marina. "I think
the penalty is soft, I think the penalty sends the wrong message and I think the commission made
a mistake," DGE Director Thomas Auriemma said. "The penalty should have been much more
severe." Joe Weinert, 9-25-03
Reno Gazette-Journal
Washoe Casinos Feel Thunder From Calif.
Reno, Sparks and Lake Tahoe casinos won less from gamblers in July compared with last year,
and many are blaming California tribal gaming, state officials reported Tuesday. Reno casinos
won $65.8 million, 5.7 percent less than in July 2002, and win dropped 0.8 percent in Sparks to
$13.5 million, the Nevada Gaming Control Board announced. Casino win is the amount gamblers
lost. … “Thunder Valley, they are catering toward the Sacramento Valley and Bay Area Asian
table game players, and that is a fair amount of south Shore and Washoe County table players,”
said Frank Streshley, senior research analyst with the Control Board. North Lake Tahoe casinos
saw a nearly 15 percent decline, while Stateline dropped 5.4 percent. Ryan Randazzo, 9-10-03
Bowling Alley’s Plan To Add Slots Ruffles Residents
Nevada (Reno) - A request to add 121 slot machines to the 29 now allowed at AMF Starlite Lanes
off Keystone Avenue is fueling concerns that casinos are creeping into Reno neighborhoods. The
proposal, which the Reno City Council is scheduled to review tonight, comes as residents battle
plans for a new casino near the corner of West Fourth Street and McCarran Boulevard. …At the
Starlite Lanes, operators want to add slot machines as part of a plan to boost business at the 32lane bowling alley with more gaming and a sports bar-style restaurant. The city’s Planning
Commission approved the extra slot machines in July. But City Councilman David Aiazzi has
appealed the commission’s decision, saying he wants the council to take a closer look at the
project. “How does this fit in the big picture of expansion of gaming outside the downtown
core?” Aiazzi said. “I want to ask council members, ‘Do you think this is the same issue as the
Turf Club?’” - Elaine Goodman, 9-10-03
Holder Group Buys Winn Amusement
Sparks-based Holder Hospitality Group Inc., which owns the Silver Club Hotel/Casino, among
other Nevada properties, has reached a deal to purchase the gaming division of Winn Amusement
Company. Bruce Dewing, President of the Holder Hospitality Group Inc. announced the
purchase, adding that it is subject to Nevada Gaming Control approval. Associated Press, 9-18-03
City Council To Consider Ban On Neighborhood Casinos
With opposition organizing against a proposed casino at West Fourth Street and McCarran
Boulevard, the Reno City Council is set to consider today whether to temporarily or permanently
ban neighborhood casinos. Highlighting the issue are several recent proposals for casino projects
outside Reno’s traditional tourist areas downtown and near the airport and convention center. The
owners of the Atlantis Casino Resort submitted a proposal last week to build a hotel and casino
on South Virginia Street between South Meadows Parkway and Damonte Ranch Road. Plans also
are pending to move the Old Reno Casino to South Virginia Street and Longley Lane as part of an
entertainment complex. And operators of the Starlite Lanes off Keystone Avenue want to add 121
slot machines to 29 now allowed, a move that some say would be encroachment of a casino into
Reno neighborhoods. Elaine Goodman, 9-24-03
Holder Buys Yet Another Rural Casino
Sparks-based Holder Hospitality Group said Thursday that it plans to buy Pipers Casino in Silver
Springs. “We will be filing for license approval with gaming authorities and others in a few days
and hope to complete this transaction early in 2004,” said Holder President Bruce Dewing.
…Holder Hospitality owns the Silver Club Hotel/Casino in Sparks, along with six other small
casinos in Fernley, Gardnerville, Hawthorne, Winnemucca and Henderson. The company also
owns a recently expanded statewide slot route and Carson City radio station KPTL-AM. Stephen
Reich, 9-26-03
Atlantis Looks At New Casino
The new hotel-casino proposed for south Reno by the owners of the Atlantis Casino Resort would
have 200 hotel rooms and as many as 300 slot machines, potentially adding a third casino to a
four-mile stretch of South Virginia Street. Monarch Casino & Resort Inc., the parent company of
the Atlantis, has asked the city for a zone change that would allow the construction of a hotelcasino on South Virginia Street between South Meadows and Damonte Ranch parkways. Elaine
Goodman, 9-26-03
Sacramento Bee
Bustamante faces suit over large donations
Republican state Sen. Ross Johnson said Wednesday he will sue to block Lt. Gov. Cruz
Bustamante from collecting millions of dollars in large donations for his governor’s race, after the
state’s political watchdog agency said it is unlikely to rule on complaints about the Democrat’s
fund-raising until after the recall election. …But Johnson, attorneys for Schwarzenegger and
campaign finance watchdogs contend that the move at best violates the spirit of Proposition 34
and at worst is illegal. Johnson, R-Irvine, criticized the FPPC for not pledging to take action
before the election. “If they are not prepared to exercise their authority to go into court and seek
injunctive relief on this, then I’m prepared to do it,” Johnson said. At issue is a murky area of the
new limits that allows officials to continue to collect limitless contributions in campaign accounts
formed before the law went into effect in 2002. The law is unclear, however, about whether
candidates can then transfer the money into another account for a separate election. Alexa H. Bluth, 94-03
Tribe Readies Recall TV Ads
Spots for McClintock a ploy, say backers of Schwarzenegger.
Morongo Band of Mission Indians, supporters of Democratic Gov. Gray Davis and prolific
political donors to both major parties in California, will launch television ads Friday to back
Republican state Sen. Tom McClintock's recall bid, a tribe spokeswoman said Wednesday. The
tribe, which operates a casino in Riverside County, also has contributed to Davis' committee to
combat the effort to recall him and to Lt. Gov. Cruz Bustamante, the only major Democrat
running to replace Davis. The move has led to an outcry by Arnold Schwarzenegger's supporters,
who accuse tribes of supporting McClintock in a veiled attempt to help Bustamante. Many
Republicans have called for McClintock to bow out of the recall race to avoid splitting GOP votes
with Schwarzenegger and, thus, allowing Bustamante to win. Alexa H. Bluth, 9-18-03
Fight Over Tribal Site Brewing
Armed with clout and money from its newly opened casino, an Auburn Indian tribe is demanding
more say in the development of a Rocklin valley where its ancestors once lived. The United
Auburn Indian Community last month sent a letter to the city of Rocklin complaining that the
tribe was not consulted by developers who want to turn the one-time village of "Ba'ka cha,"
inhabited by American Indians for at least 4,000 years, into a subdivision of up to 800 homes
called Clover Valley Lakes. "This village site has been identified on our Web site for the past five
years, and is considered sacred to us. ... Our ancestors are buried on this site," tribal chairwoman
Jessica Tavares wrote in an Aug. 28 letter to the city of Rocklin. Mary Lynne Vellinga, 9-29-03
San Francisco Chronicle
Tribe plans $2 million campaign donation
A San Diego County Indian tribe with gaming interests plans to give Lt. Gov. Cruz Bustamante
$2 million for his recall campaign -- but his rivals promised to challenge the Democrat at today's
debate over whether donations from tribes put him "in the pocket of the Indian casinos." The
donation pledged Tuesday by the Viejas Band of Kumeyaay Indians -- which analysts said could
be the biggest contribution made by any single group in the recall election -- will be a huge
financial boost for Bustamante, the only prominent Democrat in the replacement part of the Oct.
7 recall election. The donation, which follows a $500,000 contribution to his campaign by
another tribe last week, is part of what tribal leaders statewide pledge will be a $10 million effort
to defeat the recall against Democratic Gov. Gray Davis and back Bustamante. Zachary Coile and Paul
Feist, 9-3-03
Indian Campaign Donations In The Spotlight
The huge campaign contributions by the California Indian tribes that operate gaming casinos -and Indian influence as the state's newest and biggest special interest -- have become a pivotal
issue in the final two weeks of the recall election. Nearly 20 percent of all the money spent to
defeat the recall of Gov. Gray Davis or on behalf of candidates seeking to replace him has come
from 14 of the state's 107 Indian tribes -- an estimated $6.7 million of the $34 million spent by all
campaigns and all candidates. …It is the size of the Indian contributions and the nature of their
influence in state government that prompted Schwarzenegger to make tribal donations the target
of a new statewide TV ad that began airing Monday. The ad features Schwarzenegger talking
directly to the camera and asserting that the tribes have donated more than $120 million in the last
five years, make billions of dollars at their casinos, pay virtually nothing in revenues to the state
and have immense influence with state politicians who pander to them. "I don't play that game,"
Schwarzenegger concludes. "Give me your vote, and I guarantee you things will change." Mark
Simon, 9-24-03
Tribes Add Millions To McCclintock, Bustamante
Three Southern California Indian tribes plan to spend nearly $3 million on television ads in the
recall campaign to support Democratic Lt. Gov. Cruz Bustamante and Republican state Sen. Tom
McClintock -- a huge boost to two candidates who are struggling to match Republican Arnold
Schwarzenegger in television advertising. …The Morongo Band of Mission Indians said they
would spend more than $1.1 million on TV advertising to help McClintock, according to a report
filed with the Secretary of State's office Friday. …"It's hard to spend too much more than $2
million a week. That's pretty heavy television advertising," said Sal Russo, a Republican
consultant in Sacramento. "You start to get marginal value over $2 million. . . . You can go
overboard and spend $2.5 million. But with $2 million, you get very close to having every
registered voter seeing that spot 10 times in the course of a week." Zachary Coile, 9-27-03
Ken Adams
210 Marsh Avenue, Suite 103
Reno, NV 89509
(775) 322-7722 Fax (775) 322-7806
kenadams@softcom.net