Plans for the new casino project in Biloxxi, Mississippi were disclosed this past week and they have caused quite a buzz. The project is proposed to cost roughly $1.2 billion in order to bring the UMUSIC Broadwater Hotel and Casino to fruition. This past Thursday, project leaders disclosed a construction timeline and a list of some of the amenities to which patrons can look forward.

Andrew Gilich, Mayor of Biloxi, is confident that the new casino will boost tourism and could bring as much as two million visitors to the city per year. The project is expected to break ground next year and developers hope to have it completed by 2023. Dakia Global U-Ventures has partnered with the largest music company in the world, Universal Music Group to develop the UMUSIC Hotel and Casino project. The pair have plans to bring similar projects to Atlanta, Georgia and Orlando, Florida as well.

What To Expect

Robert Lavia is the Chairman of Dakia Global U-Ventures. He disclosed some of the amenities that visitors can look forward to in the new hotel and casino. The project as a whole will support roughly 1.000 construction jobs and a further 2,500 in permanent positions once the facilities are completed. The hotel will include approximately 1,200 rooms with music themed décor and high-end restaurants. In light of the Covid-19 pandemic, Lavia made a point to highlight the high level of security and health protocols already developed to keep operations at the UMUSIC Resort moving smoothly regardless of what pandemic, if any, may hit in the future. In addition, the facility will host a 12,000-seat entertainment auditorium, an eighteen-hole golf course, and a new marina.

Several details, including plans for the resort’s casino, were purposely withheld says Lavia. Project leaders were eager to release as many details as possible while maintaining a high level of anticipation and surprise amongst future visitors. “Wherever you look, you’ll be wowed,” said Lavia. The music venue looks to be the centerpiece of the hotel. It will feature a grand, high-wind, glass exterior. Inside, the venue will feature a massive video screen, referred to jokingly as “visible for miles.”

An Attractive Location

“Mississippi is the birthplace of America’s music, BB King and the Blues, Elvis and Rock and Roll, Jimmy Rodgers and Country,” says Governor of Mississippi Tate Reeves. He is very optimistic about the coming resort which he says represents the “bold projects” Mississippi needs. According to him, the UMUSIC Hotel and Casino represents an investment in the state’s people and future.

When asked why Biloxi was chosen for the first UMUSIC location, Robert Lavia echoed the sentiments of Governor Reeves and said, “[because of] the rich, powerful music that has come from the region.” He went on, “our intention is to create a world class facility to bring some of the greatest talent, both regionally and internationally.” The resort is being designed to attract big name talents with state-of-the-art technologies like holograms and artificial intelligence. In addition, these technologies will be available for hopeful music talents through a proposed incubator program. This program will help to elevate local musicians, sound engineers, and start up companies in the musical field.

The passion that the project heads feel for the local community and Mississippi at large was summed up by Mr. Lavia. “From the minute you step in Biloxi you feel at home. That warmth, that welcoming feeling is what both our national and international guests want to discover here.”

The U.S. House of Representatives Subcommittee for Indigenous Peoples held a hearing last Thursday regarding disputed tribal land in North Carolina. The land is roughly 17 acres and is located in Kings Mountain off of Interstate 85 near Exit 5. It has been hotly contested by claims from both the Catawba Indian Nation and the Eastern Band of Cherokee Indians. The Catawba Indian Nation looks to move forward with a proposed casino project on the land once the dispute is settled.

The Issue

In March of 2020, the U.S. Department of the Interior decided to place the disputed land in a trust so that the Catawba Indians could develop their casino. In mid-September, Representative G.K. Butterfield, a Democrat of North Carolina, introduced the Catawba Indian Nation Lands Act (H.R. 8255). The Act would serve to reaffirm the U.S. Department of the Interior’s ruling.

Catawba Chief Bill Harris and the Mayor of Kings Mountain, Scott Neisler, testified at the hearing as supporters of H.R. 8255. In addition, the principal chief of the Eastern Band of Cherokee Indians, Richard Sneed, appeared and spoke before the subcommittee in opposition to the Act. The crux of both side’s arguments is a historical claim to the land on which the casino is to be built. The fact that the land has been put aside specifically for the development of a casino also breaks historical precedent where Native American land disputes are concerned.

The Hearing

At the hearing, both proponents and opponents of the Act were questioned by members of the House Subcommittee including Subcommittee Chair Rep. Ruben Gallego from Arizona, Rep. Deb Haaland of New Mexico, and Rep. Paul Cook from California. North Carolina Rep. Mark Walker has long been in opposition to the bill and took the opportunity to ask some probing questions of Chief Harris. Namely he inquired as to the unnamed developers and financiers of the project and why they remained so.

“Not only would current legislative proposals in Congress advocating on behalf of Catawba gambling interests in the Charlotte area play favorites at the expense of our state’s recognized Cherokee tribe, but the presence of an additional casino would have consequential economic impacts for many western North Carolinians who call our state home.” Walker went on, “I encourage supporters of these efforts to realign behind the already-bipartisan opposition and stand firm in prioritizing North Carolinians and the tribes that call our state home. Picking winners from other states is a bad bet.”

More Opposition

The Eastern Band of Cherokee Indians is also seeking to halt development on the project through litigation. They filed a case in federal court against the Department of the Interior seeking a preliminary injunction but were denied. That ruling lead to a groundbreaking ceremony for the project in July of 2020.

Defend NC is an organization backed by the Cherokee tribe running advertisements and public awareness campaigns aimed at building public pressure against the project. The Buncombe County Board of Commissioners voting in August opposed the project in a 6-1 vote and a further eleven members of the judiciary, on both sides of the aisle, signed their names to an opinion piece in the Asheville Citizen-Times opposing the casino project.

Next Steps

Groundbreaking for the project kicked off in July of 2020. However, the Catawba tribe must also receive approval for a class III gaming compact from North Carolina Governor Roy Cooper. The gaming compact would allow the tribe to introduce high-stakes slot machines and table games to their casino. Without the compact, the only gaming allowed on the site would be class II games such as, bingo and non-banked card games.

As of this time, the Governor’s office has not indicated how it will rule on the gaming compact. The Governor himself has expressed neither support nor opposition to the project.

In order to move forward with development of Indiana’s proposed Rocksino, a project by Spectacle Jack LLC in partnership with Hard Rock International, casino ownership was required to undergo an investigation by the Indiana Gaming Commission. Last year, the casino received approval from Vigo County residents to move forward with the project. This year, casino leadership had to convince the Indiana Gaming Commission that it had appropriately responded to a federal court case in Virginia’s Eastern District.

The Case in Question

Spectacle Jack LLC was the only applicant to be awarded a gaming license for development of a casino in Vigo County in 2020. Spectacle Jack LLC is a subsidiary of Spectacle Entertainment, a Gary Indiana casino developer.

The Indiana Gaming Commission had scheduled a February 7 meeting to review the company’s application. According to Indiana Gaming Commission Executive Director Sara Gonso Tait, the purpose of the meeting was “to consider the application for a casino owners license in Vigo County.” However, on January 24 the Gaming Commission canceled the February meeting and announced that there were members of the Spectacle Executive Leadership Team under investigation. The Gaming Commission became aware of a federal court case in the Eastern District of Virginia involving, among others, Charles O’Neill an employee of Strategic Campaign Group Inc.

O’Neill plead guilty to illegally transferring roughly $15,000 in 2015 from a gaming company based out of Indianapolis to the campaign for a candidate to The U.S. House of Representatives for Indiana’s Ninth Congressional District. The government contends that the scheme involved the company’s vice president, general counsel, and a gaming corporation based out of Indianapolis and incorporated in Delaware. The company in question was in fact Centaur Gaming however, certain upper management of Centaur are now the owners and operators of Spectacle Gaming. Spectacle Gaming is the “holder of Majestic Star Casino License in Gary. Spectacle is also currently undertaking a land-based casino project in Gary and pursuing the new casino license in Vigo County,” said the Indiana Gaming Commission.

As a result, the Gaming Commission stated that they had “begun a review pursuant to its statutory responsibilities.” Both community leaders and Spectacle Entertainment leadership were eager to resolve the issue and get development back on schedule for what all hope will be a lucrative project. Spectacle Entertainment responded quickly with a proposed solution to the Gaming Commission’s concerns. The general counsel, John Keeler, and Spectacle CEO Rod Ratcliff purposed, in an amended application, to withdraw from participation in Spectacle Jack LLC.

Indiana Gaming Commission Deputy Director Jenny Reske wrote “Spectacle Entertainment, Mr. Ratcliff, and Mr. Keeler have fully cooperated with the Indiana Gaming Commission’s review of this matter but indicated they wished to provide a voluntary remedy which would allow commission consideration without additional delay. The amended application reflects that Mr.Ratcliff and Mr. Keeler are no longer involved in Spectacle Jack’s operations.” In light of these changes, the Gaming Commission found that the application meets the requirements of Indiana statute.

In May of 2020, the Gaming Commission approved Spectacle Jack’s application for a gaming license and development agreement. The company agreed to a deal which will require is to pay 3% of its adjusted gross receipts to the Vigo County Community Improvement Foundation Inc.

A Surprising Addition

Spectacle Jack LLC has made it clear from the beginning that one of its primary goals would be to benefit the Vigo County community. From foundation payments to a new smoke free initiative, the company has vowed to advance community goals and improve health among residents.

Greg Gibson, owner of Spectacle Jack LLC, did not make the decision to go smoke free on the casino floor lightly. “Recognizing we had to make a good business decision for the company to maintain a solid financial ground for the future and provide a welcoming entertainment facility for all Hoosiers and guests, we had to look at data, become creative and benchmark other facilities which were successful with this model.”

The casino will feature outside covered patios to accommodate guests’ smoking needs. The patios will incorporate a full heating and air conditioning system and offer a limited offering of slots and table games.

The Rocksino is still on track for a groundbreaking in the Fall of 2020.

Casinos on the Las Vegas Strip are facing an interesting problem in the fallout of the Covid-19 pandemic. There is a major coin shortage in the industry and casinos in Las Vegas are not alone. Banks and coin operated businesses, such as laundromats, have also been affected and on a national scale.

The Problem Hits Close to Home

The El Cortez Hotel and Casino in downtown Las Vegas caters to the fans of the classic, timeless Vegas. Patrons are treated to the retro sights and sounds of a Las Vegas that harkens back to Frank Sinatra and the Rat Pack. But management is worried that the sounds of the vintage slot machines will stay quiet even after the post-pandemic reopening. “Our first coin order that we did after reopening, in July, we ordered $30,000 in quarters, when the Brinks people came, they brought us just $500 in quarters. That’s when we realized firsthand that there was a coin issue.” El Cortez Manager Adam Wiesberg and the rest of the casino industry have had to think creatively in order to stay ahead of the coin shortage. Prior to the pandemic The El Cortez had roughly $120,000 in coins ranging from nickels and quarters to 50 cent and dollar coins. After the Covid-19 related shutdowns in March, the casino had deposited all but $30,000 of those coins according to the Las Vegas Sun. Due to the difficulties in resupplying, according to Wiesberg, “we’re fortunate we kept that $30,000.”

A National Scale

The shortage is not limited to Las Vegas. The nation has seen a marked decrease of coins in circulation. Some businesses have been forced to request exact change or strictly electronic payments. The problem has reached such a level as to demand government action. In July of 2020 the U.S. Federal Reserve convened the U.S. Coin Task Force. The task force consists of 22 members ranging from government agencies to banks and businesses. Their goal, from a supply chain perspective, is to identify ways in which the economy can address and mitigate the effects of the coin shortage and help circulation. In June, Fed Chair Jerome Powell, at a House Financial Services Committee hearing, said, “we’re working with the mint to increase supply, and we’re working with the reserve banks to get that supply where it needs to be, so we think it’s a temporary situation.”

Creative Solutions

In Las Vegas, the casinos are trying creative approaches to work around shortages. The Cosmopolitan of Las Vegas is allowing patrons to choose the option of printing a ticket to receive their change at a later date or choosing from one of four rotating charities and pledging their change as a donation. This saves the casino from having to dispense much needed coinage. Chelle Adams is the Chief Financial Officer of The Cosmopolitan, she said, “Since we reopened our doors following the mandatory Covid-19 closure earlier this year, we have seen record numbers in both the number of transactions and in monetary donations. We are immensely thankful and proud of our guests’ efforts in wanting to support our community throughout the trying current climate.”

The Cosmopolitan also rewards its employees for bringing in loose change from home. For every $60 in coins that an employee brings in, they earn gifts and points to be used toward the casino’s rewards program. Another Las Vegas casino, The D Las Vegas, is home to the Sigma Derby slot machine. Gamblers bet on mechanical horses on a horse track themed slot machine. The D is running a promotion titled “I helped save Sigma Derby.” Customers who bring in a pound of quarters can receive a hat and those who bring in three pounds can trade them in for a hat and a t-shirt.

Out-of-work employees of New York state’s casinos rallied outside of the state Capitol last Thursday. Their goal was to urge Governor Andrew Cuomo to reopen private casinos after Covid-19 and state health guidelines forced them to shut down. For these employees, continued closures threaten not only their livelihoods but also the well-being of their families and the community at large.

Governor Cuomo has been firm in his commitment to a continued shut down. He has stated that his decision to reopen or remain closed is based on “an issue of density, the likelihood of compliance and the essential nature of the business.”

The State Perspective

Freeman Klopott, spokesman for the state of New York’s Budget Division, said “casinos remain closed along with similar activities across the state as they invite congregation among customers in proximity to each other while eating and drinking, activities that don’t allow for consistent mask-wearing,” New York state has kept in strict compliance with the latest data and health guidelines pertaining to infection rates among its citizens. Their goal is to reopen the economy in a timely but safe manner and, says Klopott, “we are doing the same when it comes to casinos.”

In light of casinos reopening in neighboring states, Klopott said, “We’ve already seen casinos in California, Arizona, and Miami re-open and then close due to Covid-19. In New York, we will continue to track the data, the science and activity at casinos around the country, and will make a decision on re-opening them here when health experts determine it is safe to do so.”

An Employee’s Take

Yet casinos are one of the few remaining industries in New York that are still closed. They are among movie theaters and larger entertainment businesses to remain shut down, rather than being reopened on a limited basis. Many of the state’s other forms of business are back up and running albeit within New York’s Covid-19 related health guidelines.

In addition, the seven Native American operated casinos in New York have reopened. Located on sovereign land in central and western New York, they are operating under their own health guidelines and safety precautions.

Meanwhile, thousands of employees of New York’s private casinos remain out of work. Last month, over 4,000 workers were handed layoff notices. This includes workers from Rivers Casino Resorts World Catskills and Resorts World New York City, Tioga Downs, and Vernon Downs.

Many at Thursday’s rally simply want more information from the government and guidelines on what to expect moving forward. Valerie McIntyre, a Table Gaming Supervisor at del Lago Casino in Seneca County said, I ask Governor Cuomo on our behalf: Please see us. Please hear us. We need to work. We need to support our families. We need to begin to live again.” Jeff Gural owns Tioga Downs and Vernon Downs. He thinks that Governor Cuomo is doing a great job of keeping infection rates in the state down. However, there is no doubt that he would like to reopen and welcome back his employees and patrons. He said, “the hard part for me is I don’t know what to tell my employees on whether to wait or look for another job.” The goal of Thursday’s rally was to elicit exactly that response from New York’s Governor and Legislature.

For many of the city’s residents, the reopening of Detroit’s three gambling halls could not have come at a better time. The long-awaited reopening of the MGM Grand Detroit, Greektown Casino, and MotorCity Casino Hotel has been overdue according to local resident Curtis Martin. The 87-year-old had high hopes of winning as he entered Greektown Casino on Wednesday. He said, “I’m glad they’re opened, but I think they’ve been closed for too long.”

Greektown Casino and MotorCity Casino opened to the general public this past Wednesday. MGM Grand Detroit had a soft opening on Wednesday and reopened its doors officially on Friday. Said Matt Buckley, Senior Vice President of Marketing and Operations at MGM Grand Detroit, “we wanted our best customers to get the first taste of what the new normal is and there are so many new safety protocols, it’s definitely a different experience.” He went on, “we wanted our team members to get used to it too before we have the masses come in and overwhelm them.”

A Different Casino Atmosphere

Martin and other casino guests did not walk in to the same gambling hall they once knew. Due to the fallout of Covid-19, casinos were required to adhere to numerous state-mandated safety guidelines in order to reopen. Safety measures included sanitation stations, spaced out seating at the slot machines, temperature checks, and overall fewer patrons on the gambling floor. Michigan guidelines stipulate only 15% occupancy is permitted.

At the soft opening on Wednesday, MGM Grand Detroit dealers worked behind plexiglass barriers. All the while, cleaning crews worked throughout the casino keeping slot machines and commonly touched surfaces clean. The casinos also set up nearly 200 sanitation stations made up of sinks, hand sanitizer, and wipe dispensers.

Much Needed Relief

The bright side is that the reopening has allowed hundreds of casino employees and staff to return to work. “This decision allows us to initially recall up to 50% of our staff, providing critical employment and health benefits,” says Bruce Dall, President of MotorCity Casino Hotel. MGM Grand Detroit was able to recall just under half of its 2,800 employees.

All three casinos were suffering under the forced shutdown. For the same period in 2019 the three casinos reported a combined revenue of $735.4 million according to the Michigan Gaming Control Board. This year, that number was down to a year to date total of just $299.2 million, a drop of roughly 60%.

The City of Detroit saw the effects of the shutdown in the form of lost tax revenue. Whether this restricted reopening will make up for lost revenue remains to be seen. David P. Massaron, Chief Financial Officer for the City of Detroit said Wednesday, “In our budget, we assumed we would be receiving $3 million per month in early months as the casinos reopened. At this point it is unclear that revenues will be at that level.” Still, having the casinos opened at all is a far more favorable scenario for the city than continued closures.