SLOTS: TIME TO COUNT THE BILLS

16 gaming legislation bills

 

 

It's still early in 2011 but more and more state bills proposing slots are popping up, which means more opportunities for the slot players.  As we mentioned in TIS THE SEASON (1/12/11), the environment for gaming expansion is hot given the enormous budget deficits that states have to overcome.  While nothing is guaranteed, we believe many of these bills will be given serious consideration later this year or in 2012/2013.

 

Some key ones to keep an eye on include Ohio, Massachusetts, and Delaware.  Gov Kasich of Ohio doesn't mind slots at the racetrack but he is seeking a gambling consultant to review the impact of slot machines at the state’s seven racetracks.  Massachusetts has had a long history of disappointment in legalizing casinos but an agreement with Gov Patrick may be coming to fruition. Delaware recently introduced a bill promoting two more casinos, which we estimate could bring 6,000 more slots to the state.

 

And there is the three giant wild cards—Texas, Florida, and Illinois—which would be a significant boost for the slot suppliers.

 

Here are the 16 bills:

 

Delaware

Bill: HB 40: two casinos—one each in Sussex and New Castle counties; three possible gaming venues--Del Pointe Resort and Racino in Millsboro; Old Georgetown harness track off Route 9; Delmar International Speedway off Route 13 in Delmar

Est Slots: 6,000

Status/Details: HB 40 will be assigned to the House Gaming & Pari-mutuels Committee

Timing: 2011

Convene Session Date: Jan 11, 2011

Adjourn Session Date: June 30, 2011

 

Florida

Bill: SB1708: 5 "Destination Resorts"—one in five regions around Florida; 

Est Slots: +10,000

Status/Details: 500k sq ft of MICE space, +1000 hotel rooms; <10% sq ft for gaming; $50MM upfront cense fee; $1MM application fee; {10% tax rate (+2BN cost); 15% tax rate (+1-2BN cost); 20% tax rate (<1BN cost)}; 7-member Destination Resort Gaming Commission; Miami commission said it opposes casinos; Possible developers: LVS, CZR, MGM, PENN, GENTING

Timing: 2011/2012; earliest date for casino opening is 2015

Convene Session Date: Mar 8, 2011

Adjourn Session Date: May 6, 2011

 

Georgia

Bill: Rep. Stephens proposal—casino in Special Entertainment Zone; 

Status/Details: Plans to introduce constitutional amendment toward end of legislative session; Possible locations: Jekyll Island, Lake Lanier and Savannah’s Hutchinson Island

Timing: 2011

Convene Session Date: Jan 10, 2011

Adjourn Session Date: Mid-April

 

Illinois

Bills: 4 riverboat casinos: 3 near Chicago, 1 in Danville; 4,000 position land casino in Chicago; 1,200 slots at 4 tracks near Chicago; 900 slots each at two St. Louis area tracks; Existing casinos to expand from 1,200 to 2,000 gaming positions in 400-position increments

Est Slots: VLT Bill: 30,000-50,000;

Status: Regarding slot bill, State Appellate Court called Video Gaming Act (VGA) unconstitutional; appealed to State Supreme Court; State Legislature may have to pass VGA again.

Timing: June/July 2011

Convene Session Date: Jan 12, 2011

Adjourn Session Date: Meets year-round

 

Kansas

Bill: HB 2002—casino and racetrack slots in Southeast Kansas

Est Slots: 1,500

Status: Referred to Committee on Federal and State Affairs; unlikely to pass given Republican House; 1) minimum casino investment at $100MM (previously $250MM); privilege fee at $11MM 2) Slot payout at 58%

Timing: 2011

Convene Session Date: Jan 4, 2011

Adjourn Session Date: Late May 2011

 

Massachusetts

Bill: 3 resort casinos, 2 racetrack slot parlors (Casino resorts located in Western, central and Greater Boston areas; likely racetracks—Plainridge Racecourse, Raynham Park)

Est Slots: 5,000

Status: Passed state legislature in August but Gov Patrick disapproved of slots at tracks. Revisions expected this year.

Timing: 2011

Convene Session Date: Jan 5, 2011

Adjourn Session Date: Meets year-round

 

Maryland

Bill: Slots at Prince George's County's Rosecroft harness racing track

Est Slots: 750

Status: Very preliminary; needs House and Senate approval

Timing: Referendum Nov 2012

Convene Session Date: Jan 12, 2011

Adjourn Session Date: Early April

 

Maine

Bill: Biddeford proposal & Great Fall Recreation and Development proposal

Status: Has enough signatures on petitions to force a statewide referendum. If Legislature does not change existing law to open a racino, then proposal would go to referendum. Maine's racino law requires local approval of communities where existing harness-racing tracks were located.

Timing: 2011

Convene Session Date: Jan 4, 2011

Adjourn Session Date: May 23, 2011

 

Michigan

Bill: Proposal for several new casinos

Status: Very preliminary

Timing: 2011

Convene Session Date: Jan 4, 2011

Adjourn Session Date: May 23, 2011

 

Minnesota

Bill: Racino Act—slots each at Canterbury Park and Running Aces; Governor Mark Dayton proposed Mall of America casino

Est Slots: 4,000

Status: Sen. Dick Day (R) says the Racino Act is still shy of 20 votes in the House.

Timing: 2011

Convene Session Date: Jan 4, 2011

Adjourn Session Date: May 23, 2011

 

North Carolina

Bill: Proposal for VLTs

Status: Gov. Beverly Perdue considering recommending VLT bill to legislature

Timing: 2011

Convene Session Date: Jan 26, 2011

Adjourn Session Date: Early June

 

Ohio

Bill: Slots at 7 racetracks

Est Slots: 17,500

Status: Passed Legislature and ready for implementation but facing outside legal issues (Ohio Supreme Court/Let Ohio Vote.org). Gov-elect Kasich looking over slot proposal and will decide whether to seek a court order to determine authority over the matter. Kasich said on 2/25 that he’s in no rush to legalize slot machines at the state’s horse racetracks.

Timing: 2011

Convene Session Date: Jan 3, 2011

Adjourn Session Date: Meets year-round

 

Rhode Island

Bill: Proposal for 1st full-scale casino

Status: Very preliminary $100 MM, one-time licensing fee

Timing: Referendum Nov 2012

Convene Session Date: Jan 4, 2011

Adjourn Session Date: Late June

 

Texas

Bill: 4 "destination resort" casinos (Dallas, Harris county, Bexas county, South Padre Island); Slots at 13 racetracks and 3 federally recognized Indian reservations;

Est Slots: +15,000

Status: Texas Gaming Association expects to release financial projections in late Jan. No planned date for introduction of bill.

Timing: 2011

Convene Session Date: Jan 11, 2011

Adjourn Session Date: May 30, 2011

 

Vermont

Bill: Proposal for one casino

Status: The bill calls for the Vermont Lottery Commission to oversee the casino.  Proceeds would go to the state Education Fund, as they do for lottery tickets now. A $5 million licensing fee and $50,000 application fee.

Timing: 2011

Convene Session Date: Jan 5, 2011

Adjourn Session Date: mid-May

 

West Virginia

Bill: HB2140

Est Slots: ~500 per year

Status: Passed state House Judiciary Committee; heads to House Finance Committee $10MM per year allocated to racetrack fund intended to help the 4 state racinos

Timing: 2011

Convene Session Date: Jan 12, 2011

Adjourn Session Date: mid-March