Culinary Union-represented workers at the Riviera and at Treasure Island have cause for celebration, being the beneficiaries of new, five-year collective bargaining agreements. Culinary Secretary-Treasurer Geoconda Arguello-Kline took the extra step of hailing the Riviera deal as “mutually beneficial” to the parties involved. Meanwhile talks continue to hang fire at 14 other properties, from the rarefied (Golden Nugget) to the pits (Las Vegas Club). The Culinary continues to gnash its teeth over the Affordable Care Act, which prevents it from participating both in federal subsidies and employer-paid health plans. The Culinary’s is a Taft-Hartley plan, one in which multiple employers pay benefits. Such pools are disqualified from participating in the ACA because it would constitute a double-dip. Unfortunately for the Culinary, its chagrin is somewhat useless because opponents of the ACA in Washington aren’t the sort who have much use for labor unions.
* There appears to be a quiet crisis brewing at Las Vegas Sands, as board member Irwin Siegel follows Sands Bethlehem President Robert DeSalvio and Executive Vice President of Global Operations Chris Cahill out the door. You can almost hear the wind blowing through the executive suite. But, in news that will please Sheldon Adelson (and dismay Caesars Entertainment), Macao Secretary for Economy & Finance Francis Tam has recommended against any increase in the number of casino concessions through 2022, perhaps beyond.
Tam said the central government “has no stance on this matter.” He also appeared to shift the official position to regarding five-year renewals to that of being entirely discretionary, regardless of existing law. Galaxy Entertainment Group Vice Chairman Francis Lui professed himself unworried, adding that “Since the establishment of the Macau SAR, the government has always supported the [gaming] industry and backed the socio-economic development.”
* Delaware may have to take a haircut on casino revenues. That’s the consensus emerging from a study group. It recommends that the state put $10 million slot-vendor costs, effectively subsidizing the state’s three racinos. A table games fee ($3 million) would be axed and the tax rate on table revenues lowered from 29% to 15%. In all, Delaware could be looking at $20 million in revenue less per year. The irony of the state having to prop up casinos is almost too crushing to mention. The issue now goes to Gov. Jack Markell and the Legislature.
* It may be easier for Mohegan Sun to settle a lawsuit in Palmer, Massachusetts, than potentially reveal sensitive trade secrets. The settlement could take the form of yielding to Northeast Realty land in Palmer that Mohegan Sun still covets for unspecified development. Faced with a battery of depositions, Mohegan Sun’s tribal overlords may well decide this fight isn’t worth the cost.
* As though Ohio casinos didn’t have it hard enough, the state just bought 1,200 VLTs. The main opponents, however, are veterans’ groups who could see their own electronic raffles take a hit from the new machines.
