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Senate Critics against Slot Bill

Senate Minority Leader Robert J. Mellow, D-Lackawanna is demanding a new round of talks on the bill, which House leaders and Gov. Ed Rendell have seized on as the primary funding source for a plan to cut school property taxes by 20 percent statewide. Senate Democrats focused their criticisms on a provision added to the House bill at the request of lobbyists for Penn National Gaming Inc. that could exempt a future buyer of the Wyomissing-based company from licensing reviews by the state and paying the state's $50 million license fee. Senate negotiators successfully insisted last month that any successor buyer of a slot license would need to face a separate state review and pay its own license fee. The House version says the provisions need not apply to an acquisition of a publicly-traded company like Penn National, corporate parent of Penn National Racetrack in Dauphin County.

Private Casino Gambling Not Taking Off

Through April 30, the Las Vegas Strip's three international gambling salons at MGM Grand, Caesars Palace and Mandalay Bay have won only $3.5 million from gamblers, said Control Board member Scott Scherer. Those winnings came from about five visits to the three rooms, said Keith Copher, control board enforcement division chief. The $3.5 million won from gamblers doesn't say as much about the private casino action as would the total drop - the amount of money players exchanged for chips - a number the control board declined to provide. The Nevada Gaming Commission approved the rules allowing international gaming salons in January 2002, as a means to attract international gamblers who want to bet in private. The MGM Grand's private casino license was approved in July 2002. Caesars Palace received one in September and Mandalay Bay in December. Executives for the companies operating the private betting salons say they're not surprised initial response to private gambling has been slow. Park Place Entertainment spokesman Robert Stewart said Caesars Palace's marketing efforts geared toward attracting new customers for the private salons didn't begin until the beginning of this year. Since then, the war in Iraq and the severe acute respiratory syndrome virus outbreak severely affected Asian high-roller travel to Las Vegas, he said.

Osaka Into Tourist Heaven

Local convention and tourism officials said they would welcome the chance to build casinos at Osaka should the central government decide to legalize gambling. Masaaki Sugita, managing director of marketing at the Osaka Convention & Tourism Bureau, said that it would be a positive development if "legal restrictions on casino gambling were lifted," About a week ago, Osaka Gov. Fusae Ohta met with Land, Transport and Infrastructure Minister Chikage Oki to promote the idea of opening a casino in Kansai International Airport exclusively for foreign visitors. However, many in the local community oppose gambling. Top officials at the Osaka Chamber of Commerce and Industry, including Chairman Wa Tashiro, have expressed doubts that casinos could be managed safely and effectively. Speaking to foreign diplomats and business professionals in the Kansai area at the Osaka International Forum, Sugita outlined the city's tourist attractions, which range from Osaka Castle to -- dumplings with octopus filling. In order to make such attractions better known abroad, Sugita said his bureau plans promotional trips to other Asian countries, including China and Taiwan, later this year.

Richmond City Joins Gambling Party

The council discussed the report briefly Tuesday, during its last meeting until September.   The Colorado-based Innovations Group is considering four sites as ideal for a gaming enterprise: Port Terminal No. 3, Point Molate, the former Zeneca site, or an unnamed parcel off the Richmond Parkway. The report determined that the average household income on a 75-mile ring around Richmond is $92,547 -- $105,745 in a ring 25 to 50 miles from the city -- enough to cultivate sport and leisure activities, including gaming. Among the assumptions mentioned in the report is the fact that as the state budget deficit grows, the governor may be increasingly willing to permit, then tap, casinos as a revenue source. The report does not address social impacts on Richmond directly. While it minimizes the down sides, it does state that many people move away when a casino comes to town citing "the desire not to live in a community with gaming."

Restaurateur Found Dead In Casino Hotel

A housekeeper at the Hollywood Casino found the body of Ben Ojeda of Plano when she entered his room, authorities said. There was no obvious sign of trauma to Mr. Ojeda's body, but detectives were looking into whether foul play was involved, city police spokeswoman Kacee Hargrave said. The Caddo Parish coroner's office will perform an autopsy, police said. "At this point we have not been able to make a determination that this was homicide," Ms. Hargrave said. Mr. Ojeda was part-owner of Ojeda's restaurants, which has five locations in the Dallas-Fort Worth area. His father founded the restaurants. The Ojeda family said it didn't have enough information to talk about what happened. Relatives referred questions to Dallas attorney Adelfa Callejo, who could not be reached for comment Monday night. Some personal items were reported missing from Mr. Ojeda's room, but it was not clear whether they were stolen, Ms. Hargrave said. There were no signs of a struggle or forced entry. Mr. Ojeda, whose age was not immediately known, was last seen gambling in the hotel casino Sunday night. His brother also was staying at the hotel.

Neighbors Oppose Casinos

That project is advanced by the Federated Indians of Graton Rancheria. Passage of the legislation was eased by the tribe's assurance at the time that it had no plans for a gambling venture, but the final bill spelled out no such prohibition. The site has been acquired for the casino by Las Vegas gambling interests that are the tribe's business partners. The tribe says the land corresponds to its "aboriginal territory" but it has been looking at possible alternative sites that might have greater community support. Rep. Lynn Woolsey, D-Petaluma, who opposes the casino, is joined by Sen. Dianne Feinstein and Rep. Mike Thompson, D-Napa, in seeking to amend the tribal restoration act -- to bring the casino plan under "a rigorous process of review" by the secretary of the interior. Though the disputed tract near Sears Point is not immediately in the Bay Area's urban grid, it is also not in a remote rural site California voters thought they were approving for Indian gaming.

The End of Online Gambling?

In just a matter of minutes, the United States Senate Banking Committee passed S.627, after the Chairman of the Committee introduced the bill and asked the Committee to approve the amendments he had already made to it. The bill attacks the very system that makes Internet gambling possible the world of credit cards. Christopher Armentano, who helps the state of Connecticut treat addicted gamblers, said credit is very dangerous to a gambler. "Any form of gambling that you can wager and use your credit cards or bet on credit, seems to be more dangerous," Armentano said. "They get into debt over their heads." Coupled with easy credit and easy access to the Internet, gambling online has turned beginning gamblers into addicts, and has forced addicts into bankruptcies and suicides. In June, the House overwhelmingly passed H.R. 2143, legislation that would prohibit gambling businesses from accepting credit card payments and other bank instruments from Internet gamblers. Conversely, critical to the House bill's passage was the removal of criminal provisions that are at the center of Kyl's Senate bill. However, at the last Panel hearing on S. 627, which was in March, 2003, Stewart A. Baker, general counsel for the U.S. Internet Service Providers Association, urged the Committee to avoid 'unintended consequences' that may hurt the economic growth of the Internet, including requiring ISPs to block customer access to gambling sites not residing on their networks and not under their control. 'Service providers are unable to block user access to websites on other service providers' networks with any reliability,' Baker said. 'Blocking efforts can be easily circumvented and will seriously disrupt legitimate e-commerce and speech.' The Bill is to be reported to the full Senate. President Bush will almost certainly add his signature, if it gets through the Senate and the House-Senate conference committee.

New Visitors Needed

The combination has some lawmakers, casino executives, and state economic officials questioning the long-term effects of the tax hikes and the state's growing reliance on gambling to balance its budget. Starting July, the state imposed new tax rates. Casinos now pay 50 percent of all winnings over $100 million. Before July, that rate had not kicked in until $200 million. The tax rates go up the more the venues make. Gov. Rod Blagojevich, the architect of the tax increases, remains optimistic he'll get the dollars needed to help wipe out a nearly $5 billion deficit. A comparison of July 2003 to July 2002 shows the new taxes brought in an additional $6.6 million for the state. However, the state gambling reports for last month also show sizable drops in visitors throughout the industry. For example, Hollywood Casino in Aurora reported a 46.5 percent decline in attendance last month compared with July 2002. Joliet Harrah's reported a 16.4 percent drop over the same months. In Elgin, the decline was 9.45 percent. Revenues dropped, too. Aurora revenues were down almost 30 percent last month compared with July 2002. Harrah's Joliet reported a 16 percent revenue drop. In Elgin the decline from one July to the next was 6.38 percent. Of the Chicago-area casinos, only the Joliet Empress posted gains. Its admissions increased less than 1 percent last month compared with July last year while its revenues increased 6.41 percent. The gambling industry blames Blagojevich's tax increases and fears it will only get worse. Still out there is the 70 percent tax rate on all profits over $250 million. Soon the Grand Victoria in Elgin could be sending 70 cents of every dollar it makes to the state - the highest gambling tax in the nation. As of July the Grand Victoria has posted more than $220 million in revenues. Industry executives said the tax hikes forced riverboats to look for ways to slash costs and raise money elsewhere. Those moves may be partially to blame for reduced attendance and revenues. However, gambling opponents accuse the industry of bluffing economic hardship, saying the casinos continue to rake in millions each month. Rev. Tom Grey, executive director of the National Coalition Against Legalized Gambling, claims the industry is playing the states against each other to better its own bottom line. Indiana recently went to dockside gambling to match Illinois' move of 1999, which followed dockside gambling in Iowa. Illinois lawmakers proposed sweeping gambling expansion this spring only to have Blagojevich say he wouldn't consider it. An Illinois Economic and Fiscal Commission analyst recently expressed concerns that a disturbing trend may be developing in the riverboat industry. Last year, the state's take from casino taxes increased 22.8 percent while casino revenues dropped nearly 2 percent. The state reports issued Thursday are the first indications this trend may continue. State revenue analyst Eric Noggle said the dip could be caused by increased competition in neighboring states or simply the novelty of dockside gambling wearing off. A state report looking into the trend is expected in September.

Borgata Disappoints Casino Industry

It seems like the new casino is snatching other casinos' gamblers. Figures released by the Casino Control Commission today show the Borgata won 32-point-six million on the slots and just over 14 million at the tables. July gross gambling revenue at the dozen casinos increased 4.4 percent, to over $436 million, as reported Tuesday by the Casino Control Commission. Although the amount was a single-month record, the percentage increase wasn't even the industry's biggest monthly gain this year. Gaming executives and analysts expressed disappointment, noting that all but one casino lost market share to Borgata and revenue among the 11 venues open at this time last year declined 6.8 percent. That means Borgata, at least initially, is not growing the market. Borgata won $46.9 million from gamblers, placing fourth on the revenue list behind Bally's, Caesars and Trump Taj Mahal. Borgata opened July 2, missing the first 41 hours of the month. By comparison, the most recent casino opening before Borgata - Trump Taj Mahal on April 2, 1990 - resulted in 5 percent industry revenue gain for the month. Two Trump "babies" took a beating in July. Trump Plaza reported the biggest revenue decline, due in part to a big swing of bad luck at the gaming tables. Trump Marina revenue declined due to an 18.1 percent plunge in slot volume. Trump officials have blamed lost business on an overdue ramp that would link Borgata to Trump Marina. Neighboring Harrah's also reported a sharp revenue decline, discrediting expert predictions that Borgata would help Marina District institutions while hurting the Boardwalk. "I'm a little surprised that it (Borgata) didn't help the Marina like I thought it would. There was a lot of traffic and maybe it was difficult to get to," said David Jonas, senior vice president of Atlantic City operations for Harrah's Entertainment. Conversely, the casino farthest from Borgata - the isolated Hilton - was the only house to maintain the same market share it had a year earlier. Hilton's revenue rose by 4.3 percent, best in the city.

Hasta La Vista, Arnold

Arnold Schwarzenegger is now running for governor of California, and it seems like he has a problem. The actor-turned-politician agreed to the use of his name, image and voice on a new International Game Technology nickel slot machine in April before he announced his bid to replace California Gov. Gray Davis. Now he's not so happy about having his face plastered all over talking slot machines spitting out "Hasta la vista, nickels.". It is probably the first time the name and image of a candidate for major political office has been used to promote gambling, and several industry officials suggested Schwarzenegger could have a conflict of interest if elected governor. Officials agreed he could be vulnerable to the conflict-of-interest charge if he wins the governorship since he would be responsible for enforcing and negotiating gaming compacts with California's Indian tribes. A bigger question is how Schwarzenegger would handle the continuing debate over how many slot machines each casino should be allowed. Terminator slot machines are set to make their debut at the Global Gaming Expo in Las Vegas Sept. 16-18, said Rick Sorensen, spokesman for Reno-based International Game Technology. IGT's new Terminator nickel slot machine has been years in preparation, but was stalled in 2001 when the actor sued the company for $20 million alleging the slot-machine maker was using his likeness and voice without permission or fair compensation. Schwarzenegger claimed, not only had he not approved of the slot machine, but he disapproved of being linked to gambling at all. According to his lawsuit, the actor was "particularly circumspect to avoid using his name, likeness or image for certain industries such as gambling." Schwarzenegger has been adamant about protecting his image, and he reportedly once had his lawyers challenge a Web site that streamed video of his goofy Japanese commercial. For its part, IGT claimed the Terminator slots were part of a licensing deal with French TV's Canal Plus, which belongs to media giant Vivendi, and Creative Licensing Corp., the two companies that hold the rights to the film series. IGT claimed none of the slot machines was ever distributed, although reports in 2001 claimed at least one had turned up on eBay, an Internet auction site. Schwarzenegger said in the lawsuit that even if IGT got permission from the Terminator rights-holders, he still had ultimate control over how his likeness is used. The lawsuit recently was settled with Schwarzenegger having a change of heart about the use of his image, but Sorensen declined to disclosed the details of the settlement. Whether or not Schwarzenegger received a lump sum payment or a fee based on the number of machines bearing his image, he has an interest in promoting the Terminator slots, industry officials said. At stake will be possible fees from the development of additional devices featuring Schwarzenegger characters and future use agreements with IGT.

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