No, seriously. Show me the money, Don. Any time now would be great:

"A combination of anxiety and curiosity has built in recent weeks surrounding Don Barden's efforts to secure $780 million in financing for the Majestic Star casino, and it could come to a head at the construction site Monday. The team of more than 20 companies erecting the North Shore casino has not been paid on time for work done in either April or May, according to the primary contractor. They agreed on one extension already at a June 16 meeting with Mr. Barden. They meet with him again on Monday, and will decide collectively what action to take if he cannot provide payment of about $10 million that is owed, said Dan Keating III, chairman of Philadelphia-based Keating Building Corp., the primary contractor."

A combination of anxiety and curiosity -- anxiosity? Curiexity? Whatever it is, dude better find some money soon, because we're at the point of no return -- a few months ago, he could have scrapped the whole thing, but now there's a huge steel skeleton already under construction. The De Lorean is heading down the tracks at 80 miles an hour and the windmill is coming into view. It's future or bust, baby.

... Pittsburgh Business Times: "Still, Keating admitted, if a permanent financing plan isn't agreed to, work could stop, at least temporarily. 'They've got to get paid,' Keating said of contractors and subcontractors. We need a program to get paid and paid in a timely manner. Because of the limited capital, if they burn through their burn-rate, they simply stop. It's no different than hiring a roofer. If they run out of capital, they say, 'I'll continue when I have more money.'"

... The Pittsburgh Trib-Review:

"Even if you've never heard of Apollo Global Management, there's a good chance you've contributed to its $40 billion empire. The New York-based investment firm deals in companies -- such as Las Vegas-based gambling powerhouse Harrah's Entertainment, Norwegian Cruise Line [and] Linens 'n Things, among others. Apollo has taken an interest, too, in the Pittsburgh slots parlor. Don Barden announced last month that Apollo had agreed to put up $150 million from one of its funds for his planned Majestic Star Casino ... Yet Apollo's portion of Barden's $780 million deal could be in doubt, state Sen. Jay Costa, D-Forest Hills, said yesterday. Barden is 'reluctant to bring those guys in,' said Costa, a member of the General Assembly's Task Force on Gaming. 'He's trying to make certain, if he has to go that route' that he doesn't lose too much control. Barden's spokesman Bob Oltmanns declined to say whether Apollo remains part of the mix."

He says he's reluctant now, but I bet he's a lot less reluctant once his wallet is emptied.

Dispatches from the east

Louis DeNaples wants to see reporters' notebooks and cell phone records. Reporters' attorneys would rather not turn them over:

"Calling it an intimidation tactic, attorneys for Times-Shamrock Newspapers will file a motion today seeking to quash a subpoena directing journalist Dave Janoski to testify at a court hearing about alleged leaks during the Dauphin County grand jury probe of Louis DeNaples, owner of Mount Airy Casino Resort. The motion asks the court to release Janoski from appearing at a June 30 hearing in Dauphin County court, or else issue a protective order that he cannot be compelled to testify about information that would reveal a confidential source. Subpoenas also were served on records custodians for The Times-Tribune and The Citizens' Voice. The motion cites protections afforded journalists through the First Amendment and Pennsylvania's Shield Law and the wide-ranging nature of the information sought as among reasons for the court to quash the subpoenas served on Janoski and the records custodians."

Kevin Abbott, a Pittsburgh media and First Amendment attorney, is representing Times-Shamrock.

... Casino workers on the march in Atlantic City, in search of a new contract.

... A Q&A with Jeff Coy, member of the state Gaming Control Board.

Odds and ends

The casino at Presque Isle Downs in Erie is doing well, despite hard economic times ... One in six Pennsylvanians has visited the slot machines in the last year ... Should Indian tribes be able to build casinos on non-tribal land? ... Good news: Greektown Casino in Detroit gets a life-preserver loan ... Bad news: Greektown has to lay off 89 people in the process ... Indiana's casinos aren't doing so well this year.

Wonder if that might have something to do with Don Barden's troubles?

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First things first -- another casino is set to open in the east. Rather, a larger version of the original, temporary casino:

"A $208 million expansion at a Pennsylvania combination racetrack and casino owned by the Mohegan Tribal Gaming Authority will open July 17. Project Sunrise at Mohegan Sun at Pocono Downs was begun in May 2007 to double the number of slot machines and add food and entertainment venues to the harness racing track and slot machine parlor near Wilkes-Barre. The track, bought in 2005 by the authority, opened as Pennsylvania's first casino in November 2006."

Closer to home

The Don Barden saga continues -- does he or does he not have the financing to build the North Shore casino? -- but at least he has the support of Allegheny County's House Democrats, for whatever that's worth:

"All 19 Democratic state House members from Allegheny County have rallied behind Don Barden is his bid to complete $780 million in financing for his North Shore casino. In a letter this week, the legislative delegation urged the Pennsylvania Gaming Control Board to stick with Mr. Barden despite the difficulty he has had completing the financing for the project. 'The city of Pittsburgh and Allegheny County are anticipating significant additional revenue from the casino's operations, and Pennsylvania taxpayers are anticipating additional property tax relief. The most expeditious way to achieve these goals is to allow PITG to continue to proceed with its financing and construction of the casino," the letter stated.

... So far, the neighbors of The Meadows casino in Washington County have nothing but good things to say about the new slots parlor.

Dispatches from the AC

High crimes and espionage in Atlantic City:

"Three former employees at the Tropicana Hotel and Casino in Atlantic City, N.J., have been indicted in New Jersey for allegedly stealing a list of more than 20,000 of the casino's top players. Attorney General Anne Milgram said the list's value was estimated at $108 million -- an average of more than $5,000 per player. The defendants worked at the Tropicana in May 2005 when they discussed leaving for other casinos. According to a statement issued by Milgram, two of the men downloaded the list as 'future leverage that would enable them to bring potential patrons with them when they sought employment at other casinos,'" says the Kansas City Star.

... Big weekend for Big Labor: "The boardwalk in Atlantic City, N.J., will be packed this weekend as thousands of union members and community supporters from across the country converge for a major demonstration June 21 to demand that casino owners stop stalling and negotiate with the workers' union."

... More (anecdotal) evidence that the economic slump is damaging the previously "recession-proof" gaming industry:

"Walter Huzior and his wife, Edith, usually visit Atlantic City's casinos four times per year, but this summer they probably will cut back on the gambling trips from their Long Island, N.Y., home. Soaring prices at the pump forced them to pay a whopping $4.59 per gallon for the premium fuel that powers their Mercury Grand Marquis and its gas-guzzling V-8 engine ... 'Higher gas prices leave less money for gambling,' he said."

... And yet more:

"No surprise, but gasoline prices of more than $4 a gallon don't bode well for regional casino markets. Deutsche Bank gaming analyst Andrew Zarnett said Atlantic City would suffer as gamblers stay close to home. 'Consumers will choose the convenience of Pennsylvania casinos over Atlantic City amenities.'"

... And a bonus item for you Soviet history buffs out there:

"Since the day a statue of Vladimir Ilich Lenin went up outside the trendy Red Square restaurant at the Tropicana Casino and Resort in 2005, Al Garrett has wanted it torn down. He claimed having a 15-foot (4.5-meter) tall statue of one of history's most brutal dictators is an insult to thousands of soldiers who died fighting communism. He went on talk radio shows claiming the statue is anti-American."

Wild, Wonderful

From Forbes.com:

"West Virginia now ranks second only to Nevada in the share of its state budget that comes from gambling revenues. That's the finding of a new report that also ranks the Mountain State ahead of Nevada and all other states in terms of how much that share of the budget grew between 1998 and 2006. West Virginia has a traditional lottery as well as nearly 20,000 video lottery machines, many of them hosted at four racetracks. Thursday's report from the Rockefeller Institute of Government said gambling revenues equaled nearly 9 percent of the state's 2006 general revenue budget."

... West Virginia recently legalized table games at some of its casinos, but nationally, the poker craze seems to be over, according to the American Gaming Association's 2008 report. When the poker boom began in 2003, 12 percent of Americans had played poker at least once in the previous year. By 2004, that number grew to 18 percent and stayed there for a few years. In 2007, American participation was back down to 13 percent.

Odds and ends

The indicted former chief of the Mt. Airy casino in the Poconos. Louis DeNaples, is demanding "that 15 reporters turn over not only their handwritten notes but also their personal cell phones and home phone bills. Morning Call reporters Matt Birkbeck and Christina Gostomski received subpoenas issued by attorneys for DeNaples and the Rev. Joseph F. Sica, a priest who advised DeNaples," as did a variety of AP and Philadelphia-area reporters. Mr. DeNaples is trying to discover the identity of a grand jury leak ... More smoke signals about an Ohio casino ... Greektown Casino in Detroit is forecasting a $16 million loss in 2008 ... Nevada is working on "mobile gaming," which would allow you to gamble from a Blackberry-style device, meaning you could stay in the bingo game even as you're heading back for your third plate of crab legs.

In case there was any confusion, 5-year-olds are not allowed to play slot machines:

"Philadelphia Park Casino 'breached its obligation' to the state when it allowed three children onto the gambling floor and at least one of them played a slots machine, the chairman of the state gaming control board said Wednesday. The state agency fined the Bensalem casino $18,000 during a hearing in Harrisburg ... A 5-year-old apparently took turns playing a slot machine with his grandfather in the nonsmoking section. The kid cashed out with $47.25, but the casino confiscated the winnings."

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A beautiful invention, the credit card. You can, for example, beging building a casino before you even have the money to pay for it:

"Pittsburgh casino builder Don Barden still can't say when he'll complete the $780 million refinancing for his Majestic Star casino, but says construction is on schedule and the slots parlor will open on the North Shore in mid to late May 2009. Mr. Barden appeared today before the state Gaming Control Board for an update on the project refinancing that's being handled by Credit Suisse. When it is complete, he must again appear before the board for its approval of the loan. The board would like that to happen as soon as possible. Mr. Barden said today that his financial advisors, lawyers and accountants are working hard on 'thousands and thousands of pages of documents' but isn't sure yet if he'll be back at the board's next meeting in July for the necessary approval. He said that several hundred construction workers are working feverishly on the project, for which about 70 percent of the structural steel is complete."

On Monday, he was ordered to appear before the state Gaming Control Board to answer questions about his casino financing.

... The final version (if Gov. Rendell signs it) of Pennsylvania's brand shiny new smoking ban would allow smoking in casinos -- "up to 25 percent of a casino floor, unless an owner can show an economic hardship (meaning the nonsmoking slots sections are underused), and then the owner can increase the smoking area up to 50 percent."

But Allegheny County may still be able to enact its own, more stringent smoking ban, if the state Legislature approves future legislation to that effect.

... A year after its soft opening, The Meadows in Washington County is thriving:

"Not even the temporary shell building that lacks most casino amenities, nor ongoing construction that creates parking headaches, nor the addition of table games by West Virginia competitors, nor an economic slowdown accompanied by soaring gasoline prices has discouraged a mostly middle-aged and elderly crowd from flocking to the location 25 miles south of Pittsburgh. By the time the one-year anniversary is marked Wednesday with giveaways to patrons, slots players will have lost about $230 million -- the less positive way of describing the casino's gross pre-tax revenue -- in the 1,800-plus machines of The Meadows' prefabricated structure. They didn't want to wait until April 2009 for the nicer, permanent casino, which is expected to include 2,000 more machines, multiple restaurants, a racetrack betting operation, bowling alley and attached parking garage."

On Thursday, The Meadows will host a "beam-raising" ceremony to celebrate the completion of the casino's steel skeleton.

Dispatches from the east

More delays at Philadelphia's SugarHouse casino, this time for archaeological reasons:

"During an interactive demonstration and lecture at the University of Pennsylvania, the McNeil Center for Early American Studies presented several local historians who explained the significance innumerable Native American artifacts as well as the remnants of Revolutionary War British Fort discovered on the SugarHouse casino site ... SugarHouse archaeology consultants already unearthed more than 200 Native American artifacts from the [riverfront] site - one of them being an arrowhead dating back to 1500 B.C. [There] are most likely thousands more beneath the soil."

... Pennsylvania Lottery sales went up last year, but not everywhere:

"A new legislative analysis says it appears slot-machine gambling is hurting the sales of Pennsylvania Lottery tickets the most in areas near the casinos. While the lottery reported a slight statewide sales increase from 2006 to 2007, the analysis pointed out that sales dropped in five of six counties that are homes to casinos."

... Maybe the high gas prices are keeping New Jersey gamblers closer to home:

"Revenue figures released today by the New Jersey Casino Control Commission showed that the 11 Atlantic City gambling halls took in $415.3 million last month, 1.6 percent more than they did in May 2007. It was only the second time this year that the casinos reported a monthly increase, thanks primarily to the strength of table games."

Odds and ends

At Pimlico racetrack (home of the annual Preakness thoroughbred race), wagering has dropped 16.5 percent this spring over last year ... Will Maryland get slots this year? ... Pennsylvania's harness racing association has launched a new informational site, www.paharnessweek.com ... Detroit's Greektown Casino won't be forced into a sale, but Michigan's gaming commission wants the casino to enter Chapter 11 bankruptcy ... Ominous: Gambling addicts have filed a $3.5 billion class-action suit against the Ontario Lottery and Gaming Corporation for its lax security when it comes to preventing problem gamblers from entering the casinos.

I know of several people who have met significant others over the Internet, but buyer beware:

"A homeless man accused of duping 13 women by posing as a millionaire on an Internet dating service was arraigned Wednesday in this Philadelphia suburb. Paul Krueger, 50, used a laptop computer to meet the women on Millionairematch.com, prosecutors said. He is accused of stealing more than $100,000 from the women after convincing them he was a Grammy-nominated record mogul who needed investors for a new business venture that manufactured DVDs, CDs and other videos. He showed one victim false stock reports detailing the success of his nonexistent new business, according to court papers. Authorities say Krueger used the money to fuel his gambling addiction. He was arrested last week at a casino in Atlantic City, N.J., and [was extradited] to Pennsylvania."

Serves the gold-diggers right. We shouldn't have to say this, but anytime a millionaire tells you he wants you to send him some money over the Internet, dude probably isn't a millionaire.

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How will the Pennsylvania Gaming Control Board change course now that its first executive director has announced her resignation?

"With Anne Neeb's decision to resign as the executive director of the Pennsylvania Gaming Control Board, some lawmakers see an opportunity for the embattled agency to change its direction. Neeb, who came to Pennsylvania from the Louisiana's Gaming Control Board, said that she is leaving for family reasons. She has faced heavy criticism since charges were filed against Louis DeNaples, owner of the Mount Airy Casino Resort. DeNaples is charged in Dauphin County Court with lying to the gaming board about his relationships with organized crime figures in an effort to obtain a slots license [Rep.] Doug Reichley, R-Lehigh, said he doesn't place the blame solely on Neeb. But he added, 'From everything that has been coming out, it has painted a picture where Miss Neeb failed to act in the best interest of the people of Pennsylvania and didn't raise issues with board members on the way these licenses have been issued.'"

Frank Donahue, the board's chief counsel, will be the board's acting executive director. Neeb's resignation is effective on Friday, but she'll be paid through September.

From the P-G:

"Mrs. Neeb, 52, who is from New Orleans, is returning to Louisiana to deal with family matters, board officials said Thursday. She is the first, and so far only, person to serve as board director. She was hired in September 2005 for the $180,000-a-year position."

Whoa, 180K? Maybe we should apply. Who knows more about casinos than the Casino Journal?

... Does Don Barden have the money to build a casino on the North Shore? Gov. Ed Rendell thinks so:

"Don Barden's latest deal to finance his North Shore casino got a vote of confidence yesterday from Gov. Ed Rendell. Meeting with reporters after the Point State Park reopening, Mr. Rendell said the $780 million financing package appears to be a 'strong one.' Mr. Barden announced nearly two weeks ago that he had completed the financing by securing a $150 million commitment from Apollo Strategic Value Fund LP and a group of other lenders. Apollo is affiliated with Apollo Management, one of the two private equity firms that jointly purchased gambling powerhouse Harrah's Entertainment for $17.1 billion. Mr. Rendell likes what he has heard about the deal. 'The holding company that owns Harrah's is one of the strongest in the United States of America, and Harrah's is a great, great operator and great institution. So I think that is reason for optimism here,' he said."

OK. That's good. I'm sure he knows what he's talking about. I mean, it's not like Apollo or Harrah's is an imminent bankruptcy risk, right?

"Casino bonds are generating the worst returns for investors, as companies from Apollo Management LP's Harrah's Entertainment Inc. to Herbst Gaming Inc. risk bankruptcy under the weight of their debt. High-yield, high-risk casino bonds, which returned 10 percent during the last recession in 2001, are the biggest losers this year, according to Bank of America Corp., as consumers get slammed by record gasoline prices and the worst housing-market slump since the Great Depression. The debt has lost 4.4 percent, compared with junk bonds' average return of 1.4 percent ... Harrah's $1.4 billion of 10.75 percent notes due in 2016 tumbled to 80 cents on the dollar to yield 14.7 percent, or 1,077 basis points more than Treasuries, according to Bloomberg data. The cost of protecting Harrah's bonds from default in the credit-default swaps market has almost doubled since the start of the year, Bloomberg data show."

Oh. Wait. What?

... Is no news good news out of last week's gaming board hearing?

Dispatches from the east

New Jersey Gov. John Corzine's pep talk to the struggling Atlantic City casinos.

"We're going inside of 'em, we're going outside of 'em -- inside of 'em! outside of 'em! -- and when we get them on the run once, we're going to keep them on the run. We're gonna go, go, go, go! And we aren't going to stop until we go over that goal line! And don't forget, men -- today is the day we're gonna win. They can't lick us -- and that's how it goes ... The first platoon men -- go in there and fight, fight, fight, fight, fight!"

Sorry, wrong pep talk. This is the one we were looking for:

"A day after the city's gambling halls reported a 17.7 percent decrease in profits in the first quarter of 2008, the former Goldman Sachs CEO told the East Coast Gaming Congress he has a businessman's sensitivity to the current struggles. He said there is a 'political consensus' to keep casinos' tax burden stable, and reiterated his pledge to sign a bill to keep them open in case of a state shutdown. 'I know there are a few tough spots, rough spots' the governor said. But when the risks and rewards are weighed, he said, Atlantic City is a 'great investment' that in five to 10 years could rival Las Vegas and other gambling destinations worldwide. 'If you don't quite buy that today, just wait,' Corzine said."

Not. Buying it.

... Here's the news that necessitated the pep talk:

"Casino operators are blaming the drag on Pennsylvania's slots parlors. The casinos produced a collective operating profit of $243.8 million in the first quarter of this year, which was down just shy of 18 percent from the same period a year earlier, according to the Philadelphia Inquirer."

Dispatches from the west

Another racetrack, another sad story about The Way Things Were, and how slot machines might be the only thing that can save horse racing:

"Once upon a time, when the sport of kings was king in Columbus, the horse-track business was this simple: Build it, and they will come. That's what Charlie Hill did, buying 134 acres of the Hartman farm south of town and opening Scioto Downs for business in the fall of 1959 ... Now, instead of playing host to 10,000 people a night, they're lucky to draw half of that. (Editor's note: Sounds like the Pirates.) The purses are down, and the better horses race elsewhere. (Editor's note: Also sounds like the Pirates.) [A] big blow to tracks is the ability to gamble from afar. When folks gamble on Scioto Downs races from off-track parlors or the Internet, less of the money goes to the track than if the betting had been done at Scioto. The solution for many tracks nationwide is to add 'alternative gaming' -- slots and/or casino games. At tracks that have those, business booms, and when it takes place just outside Ohio's borders, it has a devastating effect on the Ohio horse business."

So, what I take out of this is, maybe we should let the Pirates have slot machines at PNC Park.

... Labor supports Ohio's latest push for slots gaming.

... "Detroit's Greektown Casino is seeking approval in U.S. Bankruptcy Court for an about $45 million loan to pay contractors and continue construction of its permanent hotel and gambling complex in downtown. The project's general contractor told U.S. Bankruptcy Judge Walter Shapero on Tuesday that some of the project's subcontractors have stopped working and 123 of 369 workers did not show up to work that day."

Odds and ends

Memorial Day, the unofficial start of summer, brought some officially stunning wagering numbers to Pennsylvania: "Statewide, wagers grew to $430 million, a 5 percent jump for the week. Gross Terminal Wagers gained 4 percent to close at $34.5 million. Fifty five percent of that is collected by the state as gaming tax. That amount was $19 million last week." ... Not exactly the stuff of Ocean's 11 -- The most common crime being committed at Pennsylvania's casinos are thefts: "Between Feb. 12 and the end of April, 35 crimes were reported at the Hollywood Casino. More than half of the crimes reported at the casino -- 20 -- were thefts. The rest of the reported crimes were essentially petty offenses such as disorderly conduct, according to state police reports." ... The Penn National merger is being delayed ... Trump Marina in Atlantic City will become Margaritaville.

Don't expect a phone call from the Parents of the Year committee:

"Delaware State Police have charged a Pennsylvania man and woman for allegedly leaving two children in the car while they gambled at Delaware Park. Police say 33-year-old Juan Mingucha and 31-year-old Marisol Santos-Mingucha of Reading, Pa. are charged with endangering a child's welfare and conspiracy. About 4 p.m. Saturday, a security officer at the Delaware Park Race Track and Slots saw the 10-year-old boy and a 6-year-old in a car. About an hour earlier, police say the Minguchas left their children alone in the car and went inside to play slot machines."

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Don Barden's fingernails have to be down to their nubs by now. Does he have the financing to build a casino? Doesn't he? The latest:

"The same company involved in the purchase of Harrah's Entertainment, one of the bidders for the Pittsburgh slots license, is lending money to Don Barden, the eventual winner of that license, to build his North Shore casino. Apollo Strategic Value Fund LP, which has committed $150 million toward the slots parlor's financing, is part of Apollo Management, one of two private equity firms that acquired Harrah's for $17.1 billion. In a statement released Monday evening, Mr. Barden said the $150 million from Apollo and a group of other lenders rounded out the permanent financing he needed for the casino."

Harrah's, as you may recall, wanted to operate a casino in Pittsburgh's Station Square, but in December 2006 the state gaming board selected Don Barden over the Harrah's-Forest City Enterprises proposal. So does this mean Harrah's is back in the picture as an operator? Will this be a strict loan, or more of an equity venture? Does this position the Harrah's brand to take over if the Majestic Star brand flops?

"Another analyst, Gregg Klein of BNP Paribas Group, said Apollo simply may view the Pittsburgh casino 'as an investment they're comfortable with' and cautioned against making too much of it. 'It's not as easy as saying if Majestic Star fails, Harrah's takes over,' he said.'

Oh. Well there ya go.

... Don Barden had a tough time arranging financing for the same reason Mr. and Mrs. Homebuyer are having a tougher time arranging a mortgage -- lenders are less likely to take risks these days, and the result is a tightening credit market, says the Associated Press:

"The credit crunch that is delaying some casino plans is nearing an end, even though it still may kill some poorly conceived projects, a panel of Wall Street experts said Tuesday. Speaking at the East Coast Gaming Congress, officials with Wall Street firms said credit is still available, although at a higher price ... In Atlantic City, proposed projects by Pinnacle Entertainment and Revel Entertainment have been affected by credit markets; Pinnacle has said it may abandon its Atlantic City plans if credit markets don't improve within a year or two."

T.W.I.G. Notes

This Week in Gaming -- literally dozens of people turned out to support the planned Lawrence County racetrack and casino:

"Even a parish priest supported Valley View Downs' application for a slot machine casino at a harness racing track to be built in Lawrence County. Not one of the nearly three dozen speakers opposed the casino as they addressed the state gaming control board yesterday in the Mahoning Township Community Center in Hillsville, fewer than 10 miles north of New Castle. The only potential glitch that came up, after the board held its public hearing on the license application, was a fast-approaching deadline between the applicant, Centaur Gaming, and Credit Suisse, which has agreed to lend the money to build the track, casino and related amenities."

Hmmm, Credit Suisse, that's a familiar name -- Barden has been negotiating for weeks with Credit Suisse for $650 million in casino financing, and owed the same bank repayment of a $200 million "bridge loan" that was supposed to kick-start casino construction on the North Shore.

... "Two casino executives want the state Legislature to let Pennsylvania casinos add popular table games, like blackjack, poker, dice and roulette, to the hundreds of slot machines already available for bettors. However, with Gov. Ed Rendell, a Democrat, and many legislative Republicans opposed to an expansion of legalized gambling right now, it doesn't appear the General Assembly will act on the idea anytime soon."

Here's the Morning Call version, which notes that revenues derived from table games, which are more labor-intensive than slot machines, would preferably have a lower tax rate than the 55 percent that's currently applied to slot machine revenue:

"Robert J. DeSalvio, president of Sands BethWorks Gaming, told the House Gaming Oversight Committee on Thursday that a tax rate of 15 percent on table games would be 'reasonable and significant.'"

Dispatches from the south

For the last few years, the Preakness Stakes at Pimlico Race Course has offered track owners in Maryland the chance to expound upon the necessity of slot machines:

"Pimlico Race Course -- home of Preakness Stakes, the second jewel of racing's Triple Crown -- has 138 years of history and tradition on its side, some say the race that once stood as a monument to Maryland horse racing tradition could be on its way to being a tombstone for an industry struggling to stay afloat amid increasing competition from surrounding states ... With Maryland's racetracks feeling the squeeze from higher purses in Delaware, West Virginia and Pennsylvania -- all of which have allowed slot machines at their tracks -- those in the racing industry suggest the voter referendum this fall that will decide the fate of slots in the state may also decide the fate of Maryland racing and its most prized and profitable event."

Reports the Examiner:

"Half of the estimated $1.3 billion slots eventually may generate could help fund education, but 7 percent -- about $90 million -- would go to enhance racing purses, which would help maintain the 69,000 thoroughbreds on 20,000 horse farms in Maryland."

Dispatches from the north

The much-debated Seneca casino in downtown Buffalo, N.Y., which figures to be a direct competitor to the casino racetrack in Erie, is finally under construction:

"Work is underway on the Seneca Nation's planned permanent downtown Buffalo casino. But opponents are still determined to keep any games from being played inside. Just in the past couple weeks the huge pile drivers have been pounding the holes for the posts of the permanent Buffalo Creek Casino."

There's also a nasty fight brewing over how much, if any, of the casino tax revenue should go to surrounding Erie County; the city of Buffalo says it deserves the whole pot. Buffalo Creek Casino is supposed to be open by 2010.

... Keep driving past Buffalo, and you'll hit the Niagara Falls casino, which has just released its expansion plans.

Odds and ends

The two Philadelphia casinos clear some important legal hurdles ... Nebraska is worried about Iowa building a casino on the states' shared border ... A plan for an Indian casino in Oakland, Calif., appears dead ... Pennsylvania isn't the only state handing down gambling-related indictments ... The slot machines will be spinning at Indiana Downs sometime in June ... Will Massachusetts finally legalize casino gambling? ... Quarterly operating profits at Atlantic City casinos were down nearly 18 percent ... Meet the new personnel at Wheeling Island.

Want to launder some money? Do it at a casino!

"Suspects linked to the ring were frequent players at Casino Rama, outside of Orillia, Ont., and Mohawk Racetrack, west of Toronto. They would play as much as twice a day, often depositing $9,000 into the slot machines each time, said Cpl. Joe Peel. 'They would go in, under the threshold of $10,000, play various machines and then, at some point, cash out, get the little stubs from the machines ... and then ask for a check,' said Peel, who is with the force's proceeds of crime section."

That's one way to clean your money.

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Whoa, where has the time gone? Seems like just yesterday we were apologizing for being MIA and telling you that we promised to post much more often. Just goes to show you that promises from the Casino Journal aren't worth the hyperspace they're written on.

Well, no worries. We're back now. That's all that matters.

... Here's the latest on Pittsburgh's casino:

"Don Barden has asked the state gaming control board to postpone a public hearing scheduled today on the financing for the North Shore casino, saying he needs more to negotiate the terms with lenders. His company, PITG Gaming LLC, filed a motion with the board last evening seeking the postponement. The board was scheduled to hear testimony in Mercer County this afternoon. With the request, that likely will be postponed. 'We need a little more time to complete our negotiations with the lenders,' PITG Gaming spokesman Bob Oltmanns said this morning. Asked if Mr. Barden's $800 million in financing for the casino was in trouble, Mr. Oltmanns replied, 'I wouldn't say that. I'm not going to elaborate on the nature of the negotiations other than to say we need a little more time to wrap them up.'"

Well that's reassuring.

... North of Pittsburgh, in Lawrence County, a slight change in plans for the planned racetrack casino:

"Stephen Hilbert, the flamboyant former chief executive of Conseco Inc. and would-be part-owner of a racetrack casino in Lawrence County, is asking Pennsylvania's casino regulatory panel if he can withdraw his application for a casino license, a move that would minimize the need for state investigators to dig into his personal and financial history."

Long story short: Hilbert could still loan money to Centaur, but wouldn't obtain an ownership stake in the casino.

FYI, the state Gaming Control Board is in Lawrence County on Thursday, for an a.m. hearing about Valley View Downs, then its regularly scheduled action meeting in the p.m.

Here's what to expect out of the a.m. session.

De Scandal in De Poconos

Writes the Morning Call's John Micek: "Six state lawmakers called Tuesday for the state attorney general to investigate whether state gaming regulators broke the law when they, according to sources, ordered their investigators to change a background report on Mount Airy Casino Resort owner Louis DeNaples."

Where on earth would they have gotten a crazy idea like that?

Oh, right:

"State gaming regulators ordered their investigators to change a background report on Mount Airy Casino Resort owner Louis DeNaples -- and gave DeNaples early access to challenge its findings -- before awarding him a slots license, according to sources. The Pennsylvania Gaming Control Board's Bureau of Investigations and Enforcement revised its report on DeNaples at least six times, sources said, after board Executive Director Ann Neeb and General Counsel Frank Donaghue reviewed each draft and objected to BIE's findings as inconclusive, unsubstantiated or hearsay ... The process used in Pennsylvania is alien to experienced gaming jurisdictions such as New Jersey and Nevada, where investigators conduct background checks of license applicants independently. There, only after gaming investigators complete their work, are background reports delivered to decision-makers. Also, in those states, decision-makers expect to hear all allegations -- proven or not -- about an applicant prior to voting."

Fine, but if Nevada and New Jersey jumped off a bridge, would you?

... "Slots wagers rose slightly across the state last week, while Mount Airy reported a small drop in betting. But gamblers walked away with more loot, as the Paradise Township casino increased its payout to winning bidders [to] compete with Atlantic City, New Jersey casinos. Mount Airy's payout rate has been the highest in the state since they opened."

... Just in case you haven't had your fill of casino-related scandals, here's another -- the Mohegan Sun casino chain, which operates the casino at Pocono Downs racetrack, has been tangentially linked to a "corrupt" Wisconsin developer:

"Mohegan Sun at Pocono Downs is owned by Downs Racing, which in turn is owned by the Connecticut-based Mohegan Tribal Indians. They ran into trouble while trying to expand their gaming operations into Wisconsin. Wisconsin licensing officials discovered Mohegan's developer was being investigated in connection with a scheme to secure the approval of Wisconsin's governor for an $800 million casino. The developer, Dennis Troha, was indicted for illegal campaign contributions in March 2007, and pleaded guilty to money laundering charges in June of that year. The developer's guilty plea came after Mohegan Sun's Pennsylvania category 1 slots license was approved. But an investigation by Wisconsin authorities revealed wrongdoings and mob ties going back long before the partnership began in 2002."

Yeeesh. Though if only two of 14 casinos in the state end up having mob tied and / or indicted owners, that's still a pretty good percentage, right? Not even Ted Williams bats 1.000.

... Brad Bumsted says the whole thing is one big heist:

"Imagine that a multibillion-dollar robbery has occurred and the thieves are long gone -- the heist of the century. Authorities are talking about how to prevent a recurrence. That's somewhat akin to casino gambling in Pennsylvania. The Legislature gave the casino licenses away for $50 million each. They'll rake in billions for the owners. The license could have been auctioned to the highest bidders."

Table games

The House Gaming Oversight Committee plans to meet Thursday morning to rap about H. William DeWeese's plan to allow table games in Pennsylvania.

Dispatches from the north (and from the border)

"With a new synthetic track, fat purses for horse races and 13 miles of lakefront beaches a two-hour drive from millions, the summer is looking 'really, really good' for Pennsylvania's Presque Isle Downs Casino, its owner says. Drivers weary of high fuel prices and looking for one-stop entertainment destinations also will likely consider MTR Gaming Group Inc.'s other key property, Mountaineer Casino, Racetrack Resort in Chester, W. Va., says President and CEO Ted Arneault. [Revenues for the first quarter] surged 26 percent, from $92 million to $116.3 million. Earnings before interest taxes, depreciation and amortization were up 24 percent, from $13.1 million to $16.2 million."

It always seems to come back to gas prices, doesn't it?

Odds and ends

A bad hand for gambling in the United States ... The Greektown casino is Detroit is already falling upon hard times, and the state may try to force the casino's current owners to sell ... Hoosier Park in Indiana is getting ready to open ... Will Harrah's be allowed to put a mega-casino in the middle of, say, Dublin's Temple Bar? ... The never-ending quest to bring casinos to Ohio continues ... Maryland business are supporting the state's push for legalized slot machines.

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