Macao casinos feel the heat; $41 million jackpot voided

When the government of Macao makes a suggestion, it’s more like an order. For instance, last week, Secretary for Economy & Finance Lionel Leong summoned representatives of all MGM-Macau-casino-4six casino concessionaires to a meeting in which he ‘requested’ increased hiring and promotion of local workers in the city’s casinos. Among the executives subjected to this pep talk were Sands China Executive Vice President Ben Toh and MGM China CEO Grant Bowie. The government is feeling the discontent of local trade unions and passing it on to the casino bosses ahead of an expected May 1 protest.

Leong had earlier promised a 2015-16 review of the casinos’ performance to date, based on an eight-point checklist. He promised to “help” the casinos, with himself in the role of Dr. Kildare, saying, “People do OB-BB375_Macau__20080221142644not make check-ups only when they are sick, but also to know if they have any illness. With this review, we will … identify their shortcomings, and [help them find out] what they can do to rectify those shortcomings.” Job creation will be only one of the criteria, which also include social responsibility and the proportion of gambling to amenities. For instance, the government isn’t budging off its cap on table games (which could force Melco Crown Entertainment‘s Studio City into default).

As one might expect, the casino operators vowed they were already trying to increase local hiring and that forthcoming Cotai expansions would “provide more opportunities for workers.” The government added that it would “to keep in close touch with the labor associations,” adding one last flicker of the blowtorch to casino execs’ backsides.

* Transparent regulation took a hit in Maryland, where the Maryland Lottery & Gaming Control Agency has classified all statistics on casino free play, hiding them from the public eye. It has also done the same with the identity of players who are comped more than five grand over five successive days. Assistant Director for Gaming Charles LaBoy rationalized the concealment as follows, “It’s due to the Maryland casino market becoming more competitive. This becomes an item that is extremely sensitive to the casinos and could be revealing to their marketing strategy.”

* Read it or not, the paytable on that slot you’re playing is a binding contract, which means you’re at the mercy of the machine. Such was the misfortune of an 87-year-old Iowa granny who played $0.25 on a Miss Kitty slot back in 2011 — maximum payout $10,000 — probably should have won $1.85 but was erroneously showered with a $41,797,550.16 jackpot.

So, Pauline McKee (no relation) will collect less than two bucks of the 41 million she Isle Waterloothought she’d won, per the deliberations of the Iowa Supreme Court. “Any message appearing on the screen indicating the patron would receive a $41 million bonus was a gratuitous promise and the casino’s failure to pay it could not be challenged as a breach of contract,” ruled the court, in a decision that saved Isle of Capri Waterloo‘s bacon. According to Isle’s attorney, $41 million represented roughly 50% of the casino’s bankroll in 2014 and an adverse ruling could have bankrupted the joint.

McKee got a comped hotel stay and $10 in free play out of the mishegas, so it wasn’t a complete bust for her. Neither Aristocrat Technologies, whose the machines “legacy bonus” technology was flawed but sold the machines anyway, nor Isle, which failed to disable the bonusing software in question is entirely blameless for what transpired. Lucky for them that jurisprudence (and the paytable) was on their side.

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