Golden Route Operations hit with $75K fine courtesy of Nevada Gaming Commission

A stipulation for settlement agreement with Golden Route Operations LLC, the largest slot route operator in Nevada, was unanimously approved recently by the state’s Gaming Commission which fined the company $75,000 for reportedly providing slot machines to a sports bar in Reno that did not possess a gaming license.

The Las Vegas Review-Journal reports that a stipulation was signed by representatives of Golden Route Operations LLC and Sartini Gaming LLC admitting to two counts of a complaint that was issued by the Nevada Gaming Control Board on November 20 and reportedly approved by the commission on Thursday, Dec. 21.

Formed by the merger of Blake Sartini’s Golden Gaming and Lakes Entertainment in January 2015, Golden Entertainment Inc. (NASDAQ: GDEN) is the largest slot machine route and tavern operator in Nevada. The company operates approximately 16,000 gaming devices, 114 table games and owns eight casino resorts, with seven in Nevada, including the Stratosphere, and one in Maryland. Through its distributed gaming business in Nevada and Montana, Golden Entertainment operates video gaming devices at nearly 1,000 locations and owns nearly 60 traditional taverns in Nevada through the PT’s Pub, Sean Patrick and Sierra Gold.

According to the report from the Las Vegas Review-Journal, Golden provided Floyd’s Fireside with slot machines. The Reno bar was reportedly in the process of changing ownership. The gaming license was, according to the complaint, held by Thomas H. Floyd Enterprises Inc., which on June 15, 2016, sold the business to Colt Family LLC. However, a gaming license wasn’t received by Colt until Feb. 9, 2017, according to the report.

Operation of the slot machines reportedly continued by Golden after the change in ownership but before the new owners possessed a gaming license. The Control Board, by way of Deputy Attorney General Thomas Michela’s complaint, reportedly said that Golden should have known that the transaction had been completed via public filings.

Count two of the complaint reportedly accused Golden of violating gaming regulations by not updating written procedures that would prevent the installation of gaming devices at a specific location until such time as certain items were verified.

In a settlement agreement in October 2013, Golden was reportedly directed to update its written procedures, however, when investigators reportedly checked in March this year, a checklist was produced by company officials. According to the news agency, it wasn’t clear whether or not procedures in the checklist were set at the time of the transaction at Floyd’s Fireside.

Along with the $75,000 fine, Golden is required via the settlement stipulation to update its verification procedures, which includes a provision that a review of its space lease agreements of its customers be conducted every five years.

According to the Las Vegas Review-Journal report, Golden’s attorney, Michael Alonzo, said that the company’s new procedures “are hard-wired into the system,” while Sean Higgins, Golden’s compliance officer, said that new steps and personnel are now in place in order to prevent further occurrences.

New Jersey’s Gambling Industry Enters Year of Big Changes

A year of big changes may be coming for Atlantic City and New Jersey’s gambling industry. In the first place, Atlantic City, once the only casino gaming hub on the US East Coast, will see the re-opening of at least one previously closed casino. This is hoped and expected to boost the city’s casino industry after a streak of unpleasant events from the past several years.

In the second place, New Jersey might emerge the winner from a legal battle against major US sports leagues over the legality of sports betting in the state and the nation. The lawsuit is currently reviewed by the Supreme Court, and it is believed that a ruling will be issued sometime in the first half of 2018.

Prior to 2008, when the Great Recession sunk its teeth into the US, Atlantic City was one of the world’s most popular casino destinations. With the major economic crisis and the opening of new casinos in other states along the East Coast, the city gradually lost its luster and clienteleto experience unprecedented drop in gaming revenue. That eventually culminated in the closure of five casinos over a period of two and a half years.

Shared Online Poker Liquidity Progress: Will the Project Go Live in 2018?

With online cash game poker being in a state of decline for years, it was last summer when the regulators of four European segregated markets decided that something should be done, and done quickly. The French gambling regulator ARJEL initiated year-long discussions with its counterparts from Italy, Spain, and Portugal, which discussions produced the shared online poker liquidity agreement this summer.

The shared liquidity project will allow operators licensed in the four countries to merge their player pools in a bid to improve their profitability in the respective markets and to hopefully boost regulated cash game activity there. While it was expected that an initial phase of the shared liquidity network would be launched by the end of the year and later on became clear that this would not happen, significant progress was made in 2017 in relation to the project’s eventual realization. Here is what regulators and other participants in the scheme managed to do over the past 12 months and how this would contribute to the success of the shared liquidity scheme and to the coveted improvement of Europe’s cash game poker.

January

Portugal Completes Shared Liquidity Technical Standards Framework

The country completed the necessary step of crafting a technical standards framework in relation to the shared liquidity project in early 2017. Basically, the framework was important as it would make it possible for locally licensed poker operators to merge their Portuguese player pools with their player pools in the other participating countries.

The set of technical rules was reviewed by the European Commission and received the necessary approval in April, thus making it possible for Portugal to participate in the shared liquidity project.

Winamax Seeks Italian-, Spanish-, and Portuguese-Speaking Staff

French online poker operator Winamax made it known in late January that it was seeking Italian-, Spanish, and Portuguese-speaking staff for its planned expansion across Europe. With that, the poker room revealed its interest and intentions to participate in the shared liquidity project. Winamax is the largest poker operator in its domestic market, and it has probably seen a good opportunity to extend its footprint across other regulated jurisdictions through the shared liquidity scheme.

February

PokerStars Restricts French Site to Local Players Only

In early February, PokerStars announced that it would restrict its French operations to players located in France and its overseas territories. Prior to that, its .fr website had been available to players from other European jurisdictions where local regulations had not banned access to the online poker website.

The online poker room cited the constantly changing regulatory environment as a reason for its decision, but many also believed that the move could have been partially motivated by the upcoming launch of the shared liquidity network.

July

France, Italy, Spain, and Portugal Sign Shared Online Poker Liquidity Agreement

The online gambling regulators of the four participating countries signed the shared liquidity agreement at a special meeting in Rome, Italy on July 6, 2017. The inking of the agreement concluded a year of negotiations in relation to the project and its eventual implementation. And while it was an important step towards the realization of the shared liquidity scheme, the agreement was not the final step towards that goal. Regulators still had a lot to sort out before interested operators were able to merge their player pools from the four participating segregated markets.

For instance, they all had to present technical requirements and additional information in relation to the way poker services would be provided. France and Spain produced that information towards the end of July. Portugal, too, completed that step in the next few months.

September

Italy Misses Deadline for Call for License Applications

It was originally expected that Italy’s gambling regulator Agenzia delle dogane e dei Monopoli would launch a call for new license applications and for license renewals in late September. However, that move was never undertaken, and eventually risked Italy’s timely entry into the shared liquidity project. According to recent information, France would seek an early 2018 start of the project. And it seems that the country as well as Spain and Portugal will be able to launch the shared liquidity network within such timeframe. However, Italy is expected to join a bit later.

October

Italian Opposition to Shared Liquidity

Casino News Daily, along with other news outlets, reported in October that the shared liquidity scheme had quite some opposition in Italy.

Italian politicians, including Deputy Paola Binetti and Senator Franco Mirabelli, were among the powerful figures who voiced opposition to the online poker scheme. According to them, and other members of Italy’s political elite, the shared liquidity project would create conditions for illegal activities and increased gambling addiction rates.

Winamax Buys Italian License and Hires New Ambassadors

While Italian politicians were going vocal against the shared liquidity project, Winamax boughtthe Italian iGaming license of online gambling brand bet-at-home. The move would make it easier for the French poker operator to enter the Italian market than if it had waited for the local regulator to launch the application process for granting new licenses.

As part of its strategy to enter the four markets that participate in the shared liquidity project, Winamax added two new ambassadors to its team. Italy’s Mustapha Kanit and Spain’s Adrian Mateos were recruited to promote the French poker brand in their homelands and across Europe.

December

PokerStars Receives First Shared Liquidity License

Earlier this month, PokerStars became the first online poker operator to receive the green light to participate in the shared liquidity project from French iGaming regulator ARJEL. Under the terms of its license, PokerStars will have to make sure that it merges its player pools only in the four participating jurisdictions. Here it is interesting to note that PokerStars is the only online poker operator that is licensed to operate in each of the four countries, and many believe that it will be the single big winner from the upcoming launch of the scheme.

Expectations

It very much seems that France is pushing for early 2018 launch of the shared liquidity project. The country was actually the main initiator of the whole scheme, when it passed a law last summer that allowed it to enter shared liquidity negotiations with other interested countries.

As reported earlier this month, Spain and Portugal might be ready to join the project upon launch. As for Italy, it will probably have to wait a little longer as it is yet to renew the licenses of its existing iGaming industry stakeholders and to issue licenses to new operators. It is believed that the country will enter the project at a later point in 2018. It is yet to be seen whether this will happen and how the shared liquidity scheme will impact the online poker environment of the four participating countries and of Europe as a whole.

MGM Springfield previews luxury accommodations

MGM Springfield recently unveiled the design inspiration for its 250 eclectic guestrooms, offering a glimpse of the boutique hotel experience that will debut within the integrated resort and casino development. Like other elements of the property's outward-facing design, the five-story hotel tower will celebrate Springfield's heritage. The design narrative spotlights the city's literary and industrial foundations, weaving past into present through thoughtful design details and creative references.

The rooms, designed by MGM Resorts Design & Development, are a nod to surrounding historical architecture spanning nearly three centuries. With so much intriguing history to consider, no two rooms will be the same. This will translate across the tower's exterior, which will feature 45 varying window types and details such as wired glass.

"The extraordinary details in these rooms reflect the sense of curiosity and wonder of Springfield's history," said Mike Mathis, president of MGM Springfield. "There was a lot to work with as it related to the city's vibrant legacy and we hope the guestroom experience will capture that and inspire our guests to explore the resort and the city at large."

The guestroom portfolio will feature a range of accommodations-including the Resort Room, Main Street Queen & King and City Queen & King. The rooms will emulate apartment-style residences, with a luxurious-yet-cozy feel. Exposed concrete-planked ceilings will add an industrial touch. The rooms will feature artistic asymmetry with vinyl tiles and an angled area rug as well as light and dark walls, enveloping the room in an intimate ambiance.

Artistic elements will abound throughout the spaces. In the Queen rooms, quotes by renowned poet Emily Dickinson will adorn pillows, while the carpet in the room corridor will feature excerpts from her works. On the gallery wall, whimsical artwork will depict animals printed on dictionary sheets, while real books will be displayed as works of art from local artists.

Last-minute rooms for New Year’s in Las Vegas going for $500 and up

The best last-minute deals for three nights in Las Vegas for the New Year’s holiday will cost more than $500, according to Booking.com and hotel websites.

Up and down the Strip, a three-night stay starting Friday ranges in cost from about $600 to $1,500, including taxes and resort fee.

The Best Western Plus Casino Royal on the Strip will cost $798 for the three nights, while one of the better deals at Circus Circus can be had for about $630. Standard rooms at the MGM Grand and Mandalay Bay can be booked for $750 and $770, respectively.

For those with deep pockets — or those who bought bitcoin at the beginning of the year — there are still suites at the Wynn Las Vegas and Encore for New Year’s weekend.

Prepare to pay around $6,255 for the 1,329-square-foot Parlor Suite, which is accessed through a private gated entry and features a dedicated front desk and concierge staff.

In the luxury category, a standard room at The Cosmpolitan of Las Vegas will set you back at least $2,030 for three nights. The 3,000-room hotel has no suites left, while its high roller rooms are all reserved. The nearby Bellagio, which is in the same category, will cost at least $1,716.

Resilient prices

While rates are lower this year compared with last year, according to JPMorgan, prices are nonetheless strong throughout the valley. New Year’s Eve is traditionally one of the largest grossing room days for Las Vegas properties.

At the newly built Skyline on Boulder Highway, prepare to pay just shy of $500 for a three-night stay. Even A Fisher’s Inn Motel, a run-down motel sandwiched between car shops, will cost you $452 for the long weekend. The Super 8 Nellis is sold out.

Gaming industry mergers could hit a record next year

The U.S. gaming market experienced several blockbuster deals in 2017.

The SLS Las Vegas, Alon project and Pinnacle Entertainment were all scooped up by competitors.

But 2018 might hold even more mergers in store for the industry as a strong economy, low borrowing costs, lack of new licenses, and the use of real estate investment trusts drive further consolidation, according to Deutsche Bank in a 2018 Gaming Outlook report.

The acquisition frenzy is helping drive up prices for regional properties, which is preventing some deals from closing, the bank said in its report. Tropicana Entertainment, the regional casino operator owned by Carl Icahn, has seen its valuation double to $1.3 billion this year.

“Despite the high valuations (of gaming companies), we believe that 2018 is primed to be another year of record activity, given the excess of smaller operators who could potentially benefit from scale,” said Deutsche Bank analysts Andrew Zarnett and Ricardo Chinchilla.

Tropicana Entertainment, which owns eight casinos, including the Tropicana Atlantic City and Tropicana Laughlin, could be a target, the analysts said. Diane Spiers, a spokeswoman for Tropicana Entertainment, declined to comment.

Reno-based Eldorado Resorts could sell some of its 20 properties, including in Lake Charles, Louisiana, and Vicksburg, Mississippi, the analysts said in their report.

Eldorado has also seen its valuation nearly double this year to $2.5 billion. Eldorado spokesman Joe Jaffoni could not be reached for comment Thursday.

Over the past four years, casino operators began using real estate investment trusts to help finance acquisitions. The operators first buy a property, then sell it to a REIT and lease it back. The companies avoid taking on excessive debt, though the rent increases their annual costs.

MGM Resorts International sold National Harbor to its REIT MGM Growth Properties this year while Caesars used REIT VICI to buy two casinos in Indiana. Overall, Deutsche Bank reported there were 15 gaming industry deals in 2017, including property sales to REITs, totaling roughly $9 billion.