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