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January 31, 2013

Ohio County Schools Get $350,892 From Casino Taxes

Filed under: Casino — Tags: , — OCE News @ 3:11 am

Ohio’s Columbiana County school districts got some good news when they received some $350,892 in casino tax revenue in a recent statewide distribution. The total of that distribution statewide hit $38 million. The Ohio Department of Taxation distributed the money which represents only the initial payment that state schools are due. Casinos only began to open in Ohio last summer.

According the plan, these tax revenues are to be handed out two times each year and they are based on a per-pupil formula. It works out to about $20 per Ohio student. 88 percent of the money went to traditional schools in the county and the remainder will go to adjoining counties that are schooling local students. Online and charter schools will also get some money. Even though there are some 612 traditional Ohio school districts, 1019 schools are to get some of the casino tax revenue.

While the money is certainly welcomed, it is not enough to offset the losses that were seen by state funding cuts that the school districts have seen over the last few years. Some school officials have already voiced concerns that the Ohio legislature may start treating these casino tax revenues as they do state lottery profits. Those profits were supposed to be used for education purposes. While a part of these profits are being directed to schools, it does not offset what cuts in education funding have already done to school budgets.

It should be noted that as these new casinos get their footing, their profits may increase. This, of course, would mean more money to Ohio school districts, both traditional and charter. This would be seen as a good thing by most residents of the state.

This new money is generated from state taxes that are currently being imposed on three casinos in Ohio. Another casino, to be located in Cincinnati, is planning to open its doors sometime in March. Of the money that is brought in, school districts are supposed to get 34 percent. 15 percent is then to be divided among the largest cities in Ohio, and the remaining 51 percent is to be paid out to counties each quarter.

In July of 2012, Columbiana Commissioners got casino tax payments that totaled more than $93,000. They received more than $187,000 in October. It has been reported that they are to receive more than $249,000 in January. This will bring this one county’s total to more than $530,000.

While the current school budget is still in trouble, these disbursements of casino tax revenues do show that casinos can be profitable for local governments and school districts. This could help to make it easier for new casinos in other states to get approval. It is no secret that many local authorities are struggling with their budgets, and this type of added revenue. Casinos also bring in new jobs, both temporary (construction) and permanent, both of which help boost local economies.

It is somewhat certain that more local and state agencies will be watching to see how casino tax revenues continue to help or hinder local economies.

January 29, 2013

Six Down Years for Atlantic City Casinos

Filed under: Casino — Tags: — OCE News @ 3:11 am

Revenues numbers for 2012 show that Atlantic City casinos had their sixth year of decreased revenues. The casinos took in a little more than $3 billion during the year.

Back in 2006, the city’s casinos raked in a record $5.2 billion, since that time, however, AC has seen a decrease of its gambling revenues of more than 41 percent. It has also seem the loss of thousands of jobs. The city is steadily losing ground as the second-largest gambling and casino market in the US.

Superstorm Sandy did not help matters at all, causing the casinos to close up. This was the second shut down the city had to endure in the last year or so. Casinos were not damaged, but the storm was definitely responsible for keeping people away. The storm did damage many of the homes of those who would normally be visiting the casinos and that, too, caused a loss of revenue.

The storm is blamed for the city’s hard-hit November numbers which showed a staggering 27.9 percent decline. This was the biggest monthly decrease ever. The numbers for December were better but were not enough to pull the yearly average up significantly.

It was reported that the local casinos (12 of them) brought in $3.05 billion during 2012. This is down some 8 percent from the year 2011. Of those casinos, 11 of them reported annual declines. Only the Golden Nugget Atlantic City was up, and it was up by only 4 percent, coming in at $130 million.

Some believe that the city’s problems began back in 2007 when casinos in Pennsylvania began to spring up. This was followed by the near collapse of the national economy and high unemployment numbers that soon followed. Some experts suggest that if the weather stays calm in 2013 the city may see a rebound.

Of the losers for 2012, Trump Plaza Hotel and Casino led the pack, falling some 25 percent to hit $102.5 million. Second in line was Bally’s Atlantic City. It was down almost 22 percent, hitting $296 million. The Trump Taj Mahal Casino Resort reported that is was down be some 15.3 percent, hitting $295.4 million. This was followed by the Resorts Casino Hotel which decreased by 15.2 percent, to $130.8 million. The Showboat Casino Hotel reported that is was down by some 12.7 percent, coming in at $225 million. Caesars Atlantic City said it was off by 11.1 percent coming in at $358.5 million.

Also down 11.1 percent for the year was the Atlantic Club Casino Hotel, which has drawn interest from an online gambling company interested in buying it. The casino won just over $127 million from gamblers. The Tropicana Casino and Resort was down nearly 10 percent for the year, to just under $250 million, and Harrah’s Resort Atlantic City was down 9.1 percent to just over $399 million. For Borgata Hotel Casino the numbers show that it had a loss of 6 percent, and the other casinos showed the same losses in general. One can only hope that 2013 will be better.

January 27, 2013

New Report Suggests Less Revenue for Toronto

Filed under: Casino — Tags: , — OCE News @ 3:08 am

Toronto was recently notified that the revenues it had been told earlier were actually going to be much less. The new report estimates that the city can only expect a provincial hosting fee somewhere in the neighborhood of $100 million a year from a proposed downtown resort and casino. This amount is less than what earlier consultant’s from the casino proponents had suggested. They had said that the city could expect around $200 million per year.

The Ontario Lottery and Gaming Corporation has now confirmed that the new estimate of $100 million (or less) for the city was compiled and is now ready for public consultation concerning the future of the new project. Public meetings are expected to start within the next few weeks. The new data could mean problems for this project and will certainly make it harder to get a deal when the council meets.

Toronto Mayor Rob Ford and his executive committee approved back in November of 2012 to have the consultations after it had received an Ernst & Young report that suggested that the Canadian province could see up to (and possibly more than) $200 million per year from the project. At that time, the committee directed the city manager to refine those estimates before the proposal was given for public consultation. As one might image, the local government was happy to see that so much money might be finding its way into the city’s coffers. This new data has put a damper on that.

Mayor Ford has said in the last that he supports a new casino if it brings in job and money to the city which is in a looming crisis. According to the city manager, the original numbers suggested by the Ernst and Young study would have gone a long way in helping to get the city budget back on track. The lowered estimate came about when potential site fees and casino operation costs were reanalyzed. The actual amount of fees that Toronto would see would depend on the actual size of the capital cost for the project building. In other words, the more the facility would cost the more Toronto would get.

The public will receive information on the new data and will then vote yes or no for the casino. The vote will take place on March 20. Afterwards, in April, the city council has its own vote on the project. Some council members have already expressed concern over the new numbers stating that they may not be reliable either. Two major obstacles to the project are increased traffic and a lack of adequate parking in the area.

As of this writing, the debate continues and it is not at all certain that this project will move forward given several members of the city council had already opposed it. And this was before the news of decreased revenues was brought to light. It is not clear at this point how the local residents feel about the new casino and resort. That should become more evident once the public vote takes place in March.

January 25, 2013

Approval for Another Resort Given to MGM China

Filed under: Casino — Tags: — OCE News @ 3:07 am

For those who may not know it, MGM Resorts International, a US-based casino concern, has a Chinese arm. This Chinese arm of the company sought and has now been given approval to set up a Macau resort and casino. The move is expected to help move MGM gain some ground on its rivals who are already invested in the Macau gambling market which is now considered the most lucrative in the world.

The Macau government publishes a gazette and it was in this publication that the news that MGM had received approval to go ahead with its $2.5 billion resort was announced. The resort and casino complex is expected to be built in the Macau district of Cotai. This important announcement indicates that the MGM is clearing the way quickly as it moves to install its second casino in the area as it seeks to compete with its many competitors who already have a larger presence within this important Asian-area gambling hub.

In November of 2012, MGM announced that it received a land concession intended for this new project. The new facility will have a 1,600-room hotel that includes some 500 gambling tables along with an estimated 2,500 slot machines.

Macau is a semi-autonomous area of China. Over time, it has managed to become one of the most important sources of huge profits for several Las Vegas operators which include Wynn Resorts and the Las Vegas Sands Corp. Macau has some 36 casinos now and those casinos are turning over profits that are estimated to be nearly six times more than the profits that are seen from casinos located in Las Vegas. Most of the players that come to Macau are from mainland China, and they seem more than able to put money on the table.

It was estimated that Macau revenues in these casinos rose by 14 percent, hitting $38 billion in 2012. While this is impressive, it was down from 2011 numbers which were 42 percent. This level of increase is why so many casino operators are looking to expand into this particular market.

When compared to the Sands (4 casinos in Macau) the MGM has a much smaller local presence. The announcement that MGM had received approval is considered an important step in the company gaining some ground on its competitors and came much faster than expected. The new resort and casino is expected to open sometime around mid-2016. The fact that approval came so fast has investors and potential investors smiling.

But not everyone is smiling. It has also been reported lately that five other Macau casino operators plan to open their own new projects or will expand their existing casinos and resorts to stay one step ahead of what they see as their competition. The majority of casinos and resorts that are in Macau are locted on what is known as Cotai Strip. This is a strip of reclaimed swampland and was designed to look very much like the Vegas Strip. For now, there seems to be no end in sight for this tiny piece of land and those who want a share of it.

January 23, 2013

Hard Rock Applies for New England Casino

Filed under: Casino — Tags: — OCE News @ 3:06 am

The Hard Rock International recently announced that they have submitted an application, along with a $400,000 non-refundable fee, to the Massachusetts Gaming Commission. The application is for development of HARD ROCK HOTEL AND CASINO NEW ENGLAND which is currently planned to be located on the campus of Eastern States Exposition (ESE) which is in West Springfield, Mass. The resort would be situated on 38-acre area which is on ESE’s eastern parcel. It is hoped that the new resort would serve as a major attraction for the already popular destination.

The new resort and casino is said to be designed in such a way that it is unique within the region. It will concentrate on providing visitors to it a world-class experience in entertainment and is planning to use a combination of non-gaming as well as gaming amenities. This will include a first-class hotel which is said to be between 400 and 500 rooms. It will also feature a Rock Spa as well as a tropical pool deck and some estimated 200,000 square feet casino containing some 125 table games as well as 2,500 to 3,000 slots. It will also house a Hard Rock Cafe, where visitors can find live music.

ESE and Hard Rock are said to share a vision of philanthropy within the region and the local community. The agreement allows Hard Rock to make substantial capital improvements on the campus of ESE which should result in ensuring the ESE facility improves its business operations as well as its economic impact locally.

ESE is a non-profit organization. It has already contributed millions of dollars toward many New England organizations. It was also reported that the Big E Fair is to continue each September, and that the Hard Rock will provide both support and assistance for marketing and live events.

Already discussions have begun between Hard Rock and West Springfield concerning a variety of issues such as traffic, economic development, and parking. To help get through these issues, Hard Rock is working with engineering consultants Tighe & Bond.

The new entity is planning to bring in visitors from beyond Massachusetts and it is hoped that its presence will bring about a major increase to the town of West Springfield, as well as the state at large. It is estimated that the new project will create thousands of permanent jobs and construction jobs. It has been suggested that the overall revenue through taxes would be in the hundreds of millions.

Hard Rock International has been active in gaining properties all over the world and has a reputation for being one of the best when it comes to making deals. The latest venture of is the Hard Rock Northfield Park. This site in Ohio just broke ground. To date, Hard Rock International has 177 venues located in some 58 countries, and this includes 141 cafes, 8 casinos, and 18 hotels. It also is the owner of a great collection of music memorabilia, most of which is kept on display at various locations.

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