The Top 10 Gaming Stories of 2017
CDC Gaming Reports · December 31, 2017
The CDC Gaming Reports team looked over 2017 – the highs and the lows – and voted. Here are our selections for the top gaming stories of the year:
1. Legal sports betting on the cusp of national acceptance
The U.S. Supreme Court on Dec. 4 heard New Jersey’s challenge to the Professional and Amateur Sports Protection Act, which bars all but four states from authorizing gambling on most professional and college sports. Most experts watching the hearing predicted the court will find PASPA unconstitutional. If the Supreme Court strikes down the law, 32 states would likely offer legal sports betting within five years, according to a report by a California research firm. The American Gaming Association, along with more than a dozen states, backed New Jersey in the lawsuit.
2. The reaction by the gaming industry to 1 October
When a lone gunman opened fire from the 32nd floor of Mandalay Bay and turned the Route 91 Music Festival across the Strip into the America’s largest-ever mass shooting, the casino industry showed its true strength. MGM Resorts, Boyd Gaming and Station Casinos, and others opened their hotel rooms to victims and families of the tragedy, which killed 58 people, wounded 546, and impacted thousands of people. The Las Vegas Victims’ Fund collected more than $22 million, much in the way of multi-million-dollar contributions from gaming companies. Immediately, the industry began looking at security procedures and how visitors are screened, not just in Las Vegas but in gaming markets across the U.S. Las Vegas, however, vowed to recover. The hashtag #VegasStrong became more than a just symbol, but a rallying cry for the industry.
3. Gaming mergers create regional casino giants
As 2017 drew to a close, Penn National Gaming announced plans to acquire rival regional gaming operator Pinnacle Entertainment for $2.8 billion. As part of the transaction, Pinnacle agreed to sell four of its casinos to Boyd Gaming Corp., for $575 million, allowing Penn to avoid federal anti-trust issues. Penn will operate 41 casinos in 20 jurisdictions when the deal closes next year. The merger wasn’t the only transaction in the sector. In April, Reno-based Eldorado Resorts completed its $1.7 billion purchase of Isle of Capri Casinos. In October, Golden Entertainment Inc., spent $850 million to acquire four casinos owned by American Casino & Entertainment Properties, which included the Stratosphere. Analysts said 2017 may just be the start on a healthy mergers and acquisition market in 2018.
4. Pennsylvania greatly expands its gaming operations
Entering 2017, Pennsylvania was already the nation’s No. 2 gambling state (behind Nevada). But lawmakers and the governor – seeking ways to fill a massive budget hole – looked at expanding beyond the state’s 12 casinos as a financial fix. After months of debate, the final solution included becoming the fourth state to legalize online gaming, adding video gaming terminals to truck stops, offer gaming at eight airports, and allowing 10 of the state’s casinos to bid on a license to open a smaller casino, limited to 750 slot machines and 30 table games. How the Keystone State’s gaming landscape unfolds in 2018 will be closely watched.
5. ‘Las Vegas’ Raiders $1.9 billion stadium project moves forward, but without Sheldon Adelson
The driving force behind the NFL’s Oakland Raiders proposed move to Las Vegas – billionaire Sheldon Adelson – abruptly pulled out of the deal in January, leaving the team with having to find another financial backer. Adelson, chairman and CEO of Las Vegas Sands Corp., pledged $650 million of his family’s fortune toward construction of the stadium. A few months earlier, his political operatives pushed a public financing package of $750 million through the Nevada Legislature. Within weeks, the Raiders said the team found new financial backing from Bank of America and NFL owners approved the move to America’s biggest gambling city by 31-1 vote. By the end of the year, the stadium across from the south end of the Strip was under construction.
6. Macau’s casino market’s record-setting revenue pace resumes
November marked the 16th consecutive month of year-over-year gaming growth in Macau and analysts were predicting the world’s largest gaming market was back on track. In 2013, Macau casinos produced an all-time high of $45.1 billion in gaming revenue and analysts predicted the market would hit $100 billion by 2020. But a crackdown on high-end junket operators by the Beijing government caused a three-year slide in gaming results, sending the Macau to levels last seen in 2010. By November, Macau had surpassed 2016’s total of $27.9 billion, assuring the enclave’s first annual increase in four years.
7. Japan casino legalization debate continues
For years, the potential for legalized casino-resorts in Japan has drawn interest from every major gaming company. 2017 was no different. Once again, gaming expansion stalled in Japan’s legislative bodies despite continued support from Prime Minister Shinzo Abe.
8. Caesars out of bankruptcy after more than two years
Caesars Entertainment Inc., filed for Chapter 11 bankruptcy protection in January 2015 with an industry-high $22.8 billion in debt – more debt than the city of Detroit. After two years of contentious negotiations among creditors, a Chicago bankruptcy judge approved the reorganization plan in January. The plan was finalized in October.
9. IGT-Scientific Games announce historic licensing agreement
Gaming equipment giants International Game Technology and Scientific Games Corporation announced an historic patent cross-licensing agreement, allowing the companies to offer games using patented features from each other’s portfolios. Scientific Games and IGT have the largest patented slot game feature portfolios in North America.
10. Hard Rock acquires Trump Taj Mahal for $50 million
Atlantic City’s Trump Taj Mahal, a property formerly owned and built by President Donald Trump for $1.2 billion was sold to a group of investors, including Hard Rock International, for $50 million. The property is expected to reopen in 2018 as the Hard Rock Atlantic City.
Honorable Mention
– MGM National Harbor dominates Maryland gaming in its first year
– Florida gambling debate fails again
– Resorts World Manila: Explosions, gunfire reported in the Philippines
CDC Gaming Reports · December 31, 2017
The CDC Gaming Reports team looked over 2017 – the highs and the lows – and voted. Here are our selections for the top gaming stories of the year:
1. Legal sports betting on the cusp of national acceptance
The U.S. Supreme Court on Dec. 4 heard New Jersey’s challenge to the Professional and Amateur Sports Protection Act, which bars all but four states from authorizing gambling on most professional and college sports. Most experts watching the hearing predicted the court will find PASPA unconstitutional. If the Supreme Court strikes down the law, 32 states would likely offer legal sports betting within five years, according to a report by a California research firm. The American Gaming Association, along with more than a dozen states, backed New Jersey in the lawsuit.
2. The reaction by the gaming industry to 1 October
When a lone gunman opened fire from the 32nd floor of Mandalay Bay and turned the Route 91 Music Festival across the Strip into the America’s largest-ever mass shooting, the casino industry showed its true strength. MGM Resorts, Boyd Gaming and Station Casinos, and others opened their hotel rooms to victims and families of the tragedy, which killed 58 people, wounded 546, and impacted thousands of people. The Las Vegas Victims’ Fund collected more than $22 million, much in the way of multi-million-dollar contributions from gaming companies. Immediately, the industry began looking at security procedures and how visitors are screened, not just in Las Vegas but in gaming markets across the U.S. Las Vegas, however, vowed to recover. The hashtag #VegasStrong became more than a just symbol, but a rallying cry for the industry.
3. Gaming mergers create regional casino giants
As 2017 drew to a close, Penn National Gaming announced plans to acquire rival regional gaming operator Pinnacle Entertainment for $2.8 billion. As part of the transaction, Pinnacle agreed to sell four of its casinos to Boyd Gaming Corp., for $575 million, allowing Penn to avoid federal anti-trust issues. Penn will operate 41 casinos in 20 jurisdictions when the deal closes next year. The merger wasn’t the only transaction in the sector. In April, Reno-based Eldorado Resorts completed its $1.7 billion purchase of Isle of Capri Casinos. In October, Golden Entertainment Inc., spent $850 million to acquire four casinos owned by American Casino & Entertainment Properties, which included the Stratosphere. Analysts said 2017 may just be the start on a healthy mergers and acquisition market in 2018.
4. Pennsylvania greatly expands its gaming operations
Entering 2017, Pennsylvania was already the nation’s No. 2 gambling state (behind Nevada). But lawmakers and the governor – seeking ways to fill a massive budget hole – looked at expanding beyond the state’s 12 casinos as a financial fix. After months of debate, the final solution included becoming the fourth state to legalize online gaming, adding video gaming terminals to truck stops, offer gaming at eight airports, and allowing 10 of the state’s casinos to bid on a license to open a smaller casino, limited to 750 slot machines and 30 table games. How the Keystone State’s gaming landscape unfolds in 2018 will be closely watched.
5. ‘Las Vegas’ Raiders $1.9 billion stadium project moves forward, but without Sheldon Adelson
The driving force behind the NFL’s Oakland Raiders proposed move to Las Vegas – billionaire Sheldon Adelson – abruptly pulled out of the deal in January, leaving the team with having to find another financial backer. Adelson, chairman and CEO of Las Vegas Sands Corp., pledged $650 million of his family’s fortune toward construction of the stadium. A few months earlier, his political operatives pushed a public financing package of $750 million through the Nevada Legislature. Within weeks, the Raiders said the team found new financial backing from Bank of America and NFL owners approved the move to America’s biggest gambling city by 31-1 vote. By the end of the year, the stadium across from the south end of the Strip was under construction.
6. Macau’s casino market’s record-setting revenue pace resumes
November marked the 16th consecutive month of year-over-year gaming growth in Macau and analysts were predicting the world’s largest gaming market was back on track. In 2013, Macau casinos produced an all-time high of $45.1 billion in gaming revenue and analysts predicted the market would hit $100 billion by 2020. But a crackdown on high-end junket operators by the Beijing government caused a three-year slide in gaming results, sending the Macau to levels last seen in 2010. By November, Macau had surpassed 2016’s total of $27.9 billion, assuring the enclave’s first annual increase in four years.
7. Japan casino legalization debate continues
For years, the potential for legalized casino-resorts in Japan has drawn interest from every major gaming company. 2017 was no different. Once again, gaming expansion stalled in Japan’s legislative bodies despite continued support from Prime Minister Shinzo Abe.
8. Caesars out of bankruptcy after more than two years
Caesars Entertainment Inc., filed for Chapter 11 bankruptcy protection in January 2015 with an industry-high $22.8 billion in debt – more debt than the city of Detroit. After two years of contentious negotiations among creditors, a Chicago bankruptcy judge approved the reorganization plan in January. The plan was finalized in October.
9. IGT-Scientific Games announce historic licensing agreement
Gaming equipment giants International Game Technology and Scientific Games Corporation announced an historic patent cross-licensing agreement, allowing the companies to offer games using patented features from each other’s portfolios. Scientific Games and IGT have the largest patented slot game feature portfolios in North America.
10. Hard Rock acquires Trump Taj Mahal for $50 million
Atlantic City’s Trump Taj Mahal, a property formerly owned and built by President Donald Trump for $1.2 billion was sold to a group of investors, including Hard Rock International, for $50 million. The property is expected to reopen in 2018 as the Hard Rock Atlantic City.
Honorable Mention
– MGM National Harbor dominates Maryland gaming in its first year
– Florida gambling debate fails again
– Resorts World Manila: Explosions, gunfire reported in the Philippines
