Five Most moments that are baffling the Gambling Universe 2015: component One
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A judge having a penchant for history and Shakespeare may have decided that March 15, 2016 will be a deadline that is good Caesars to get lienholders on board with its bankruptcy restructuring plan.
Baffling moments in gambling, you state? What?
As top gambling journalists, it’s not our job to be baffled; it’s our work to cut through the difficulties with razor-sharp feedback and observations.
Sometimes, though, you simply need certainly to throw your hands in the air and go WTF? Understanding that, here are the top five most gambling that is baffling of 2015.
The Coalition to Stop online Gambling CSIG) is an expert at churning out baffling statements, and in 2015, these may have hit their zenith. The coalition subscribes to the ‘it’s-true-because-it-rhymes’ brand of rhetoric, and thus phrases such as ‘click your phone, lose your property’ while the variation that is slightly zingier your mouse, lose your house,’ went down gangbusters at anti-gambling cocktail parties in 2010.
Representative Jason Chaffetz’ (R- UT 3rd District) assertion that RAWA is just a pro-states’ rights bill, despite all proof to the contrary, was pretty ‘out there’ in the bafflement stakes, we thought. And meanwhile, John Kindt, a teacher at the University of Illinois Law class, was partial to quoting a scholarly research from 1999, the days of dial-up Internet, as proof that ‘Internet gambling cannot be regulated.’
Finger on the pulse there, Professor.
However, the award for the most baffling CSIG statement of the year would go to a ‘news’ header on the company’s website which screamed ‘Online Gambling Hurts Farmers.’
The logic of why this demographic is very at risk is lost on us, and we understand CSIG is not averse to resorting to the usage of emotive language to make an intellectually dishonest point or two, but farmers? The only correlation we might make had been that spades might be utilised by farmers to dig things, so there you go.
The Daily Fantasy Sports Scandal
The fantasy that is daily (DFS) scandal was pretty odd whenever you contemplate it. DFS continued its unstoppable rise through the entire first nine months of the year, with the most notable two web sites https://casino-online-australia.net/club-player-casino-review/, FanDuel and DraftKings, securing vast sums of dollars in assets as the multibillion dollar industry began mulling international expansion and eventual world domination.
With all of this at risk, you might have thought that someone at the two kingpin companies would have recalled to prohibit their players from playing games at rival sites.
DFS became thoroughly unglued by the end of September, when it emerged that the DraftKings employee had accidentally released player data ahead of the week’s NFL games had begun. In the same week, this employee won $350,000 playing at FanDuel.
Accusations of ‘insider trading’ were perhaps overblown, and the employee was ultimately cleared of wrongdoing, but the public’s faith in DFS was shaken, and suddenly the industry ended up being facing attacks on all fronts, from player lawsuits to judicial investigations to denouncements from regulators and politicians.
Beware the Ides of March
That Caesars Entertainment’s debt appears at an unprecedented industry high of around $20 billion was an undeniable fact that baffled the Nevada Gaming Commission at a meeting to discuss its messy bankruptcy proceedings in 2010.
The Commission called the situation ’embarrassing,’ and suggested that the ongoing company refrain from ‘building any Ferris wheels for the while’ to chuckles from assembled people regarding the press.
‘Everyone throws the economy underneath the coach,’ snapped payment chairman Tony Alamo testily.
In seeking Chapter 11 proceedings for the main running unit, Caesars was accused by its second lien creditors of restructuring its assets in an easy method that unfairly favors its controlling personal equity backers, who were the people that got Caesars in this mess within the place that is first.
Faced with lawsuits and accusations of fraudulent behavior, Caesars devised a new restructuring plan. Now the business is charged with the job of getting its reduced bondholders on board. The due date with this is March 15 of next year, after which Caesars will totally lose control over its own bankruptcy proceedings.
Shakespeare scholars among you will recognize this date as the one known as ‘the Ides of March’ in the Roman calendar and the day that is fateful of Caesar’s assassination by his former supporter, Brutus.
Who’d have thought that a bankruptcy judge would have this kind of wicked feeling of humor?
There were numerous baffling moments in 2010, we’d to get this piece a two-parter, so come back tomorrow for more bewildering gambling landmark moments from 2015.
Five Most Baffling Gambling Moments of 2015, Part Two
Revel owner Glen Straub ended up 2015 saddled with the planet’s biggest bill that is electric. (Image: Tom MacDonald/WHYY)
Welcome back to Part Two of our operate down of 2015’s most baffling happenings, in which we ponder a number of the more mystifying occurrences for the 12 months inside and around the gaming universe.
In July, previous Chukchansi tribal frontrunner Tex McDonald accepted a plea deal and was sentenced to 485 times for false imprisonment after admitting to being the orchestrator of 1 of the very idiotic moments in the history of the casino industry.
The prior October, he had lead an assault that is armed the Chukchansi Gold Casino, near Fresno, California.
McDonald had stormed the home with some 20 accomplices, giving customers running for cover, and ordering security guards at gunpoint as a safe area of the building. Guards were reportedly assaulted and handcuffed, but no casino customers had been hurt.
This it seems, was the culmination of a strange energy struggle between two rival Chukchansi factions vying for control of the casino. McDonald was in fact running the casino from a business that is nearby up to August 2014, whenever a rival group, led by one Reggie Lewis, resulted in the evening and literally took the casino over.
While Lewis is very good at surreptitiously taking over gaming properties, it seems his admin skills aren’t quite therefore hot, as he failed to register the accounts, which meant that the casino was facing a $16 million fine from the regulator and closure that is possible.
McDonald made a decision to take drastic action and charged into the casino with guns drawn. We are maybe not quite certain what his goal ended up being, but he will have plenty of time to think about it in the pokey.
Straub’s Strange Energy
Eccentric billionaire Glen Straub has been a lively and um, interesting source of entertainment this 12 months. The home magnate initially lost the auction to buy the revel that is distressed home in Atlantic City and immediately blasted the auction as ‘improper.’
Having suffered a bout that is bad of, Straub explained, he previously flown from New Jersey to their house in Florida to recover his medicine, a proven fact that so coincidentally took him out from the picture during the last crucial phase of the bidding process.
However, when the champion of the bid, Brookfield Asset Management, got wind of Revel’s astronomical energy bill, a non-negotiable $36 million per it bailed on the deal anyway year. Straub stepped in, picking up the $4.9 billion property for the song, at $82 million.
The idealistic developer initially stated he wanted to reopen Revel maybe not as being a casino, but as an ‘elite university’ where the globe’s brightest people could spend their days ruminating on solving global issues such as for example ‘famine, cancer and nuclear waste storage.’
Once he had their hands regarding the home, though, he decided that he’d probably simply reopen it as a casino after all, albeit it one devoted to ‘life extension technology,’ whatever that is.
By of this year, it was none of these things april. What it was, however, in line with the Atlantic City Fire Department, ended up being a ’47-story fire danger,’ as Straub was refusing to honor the agreement with the power that is adjacent and had been cut off.
A not enough flowing water through Revel’s pipes, and no electricity allowing firefighters access to the top floors, designed that a fire outbreak could possibly be potentially catastrophic.
The seemingly cursed casino property stays shuttered while Straub’s unpaid power bills run into the millions. Maybe he can’t read them while sitting at night.
The Fall of Macau: What took place to the Gambling Fireball in 2015?
The fortunes of Macau were already tumbling as 2015 started. The downturn actually started back in June 2014, whenever gambling hub recorded the first-ever monthly dip in revenues since Stanley Ho’s casino monopoly finished in 2012, a move that had efficiently opened the Asian gambling region as much as international investment.
However, no one could quite have anticipated numbers to fall so dramatically, and consecutively, month-on-month, for all of those other and throughout 2015 year.
Macau’s casinos were suffering from the anti-corruption drive of Asia’s president Xi Jinping (center) in 2015, which largely impacted the Asian gambling mecca’s junket industry in 2010. (Image: Adrian Bradshaw/EPA)
Just What happened?
Simply 8 weeks prior to the initial downturn, Macau had reported a record-breaking Q1 for 2014, with $12.6 billion in revenues. That was up 19.8 percent through the quarter that is first of. And 2014 was on course to beat the entire year prior, itself a year that is watershed and Forbes ended up being calling Macau ‘one associated with the world’s quickest growing economies.’ The enclave had been ingesting in just two months what Las Vegas scored in per year.
Macau had benefitted significantly from the explosion in Chinese tourism in the preceding years. A greater freedom of movement and a burgeoning new Chinese middle-income group had certainly contributed to the gambling boom, and, as the Chinese economy began slow, so did the flow of gamblers from the mainland.
VIP Junkets Hit the Skids
But Macau’s bread and butter had for ages been VIP that is chinese high. These whales’ trips were facilitated by Macau’s multibillion-dollar junket industry with a fondness for high stakes baccarat. In fact, the junkets accounted for some 60 percent of Macau’s revenues during the boom years.
Junket operators would act as middlemen, organizing trips and lending their customers large sums of profit order to control restrictions in the level of cash that could be brought from the mainland. VIPs would then settle their debts on the return to Asia.
Many of these VIPs were, in reality, corrupt Communist Party officials whoever fortunes were based on kickbacks or embezzlement of public money. Corruption had reached proportions that are epidemic Asia, and Beijing had had enough, vowing to trace fraudulent officials ‘to the ends of the earth.’
Fearing reprisals from Beijing, the VIPs started initially to steer clear of Macau, heading to Manilla in the Philippines, or to Vietnam’s Ho Tram Strip to instead get their kicks.
The drive that is anti-corruption squeezing Macau throughout the latter 50 % of 2014. Aswell as scaring off the high rollers, Beijing had imposed restrictions on the use of UnionPay, China’s only domestic bank card, which further stemmed the flow of middle-class money from the mainland.
Meanwhile, the introduction of a blanket smoking ban inside casinos neglected to improve matters.
But by early 2015, China had ramped it up a notch, initiating an ‘unprecedented crackdown’ in the junket industry, tightening regulatory settings and demanding more transparency from the junkets about their clients and the history that is criminal of workers. By September, the junket industry was ‘broken,’ according to Rob Goldstein, LVS president.
New casino resorts, conceived through the boom time, still opened their doors this 12 months, such as James Packer’s Studio City Macau, while Steve Wynn’s Wynn Palace Macau due to open in the middle of next.
Despite the malaise that is general stingy dining table games allocations for new casinos from the Macau regulator that is bowing to pressure from Beijing, Packer said he remained positive about the spot’s long-term future, while conceding that Macau’s downturn has been ‘worse than anyone expected.’