In a dramatic development, the six-tribe coalition that opposed letting PokerStars into California stood aside, clearing the path to unanimous approval by the Assembly Governmental Organization Committee of a bill by state Rep. Adam Gray that 
would legalize online poker in the Golden State. A provision that would skim off $57 million to $60 million (accounts vary) in revenue to subsidize the horseracing industry doubtless contributed to the 18-0 legislative landslide. Although the Internet poker market in the state is generously estimated at $400 million, it also thought that no more than 10 operators, tops, could be viable in it.
If some of the tribes are showing flexibility, the horsey set is not. A consortium of tracks, breeders and labor unions sent legislators a letter that read, in part: “We recognize the $60 million annual payment in AB 2863 is intended to compensate the racing industry for being excluded from eligibility for i-Poker licenses, the loss of the industry’s current Internet gaming exclusivity in the State, and the projected loss of market share for [advanced deposit wagering]. Given this sizeable impact on our business, we must condition our support for the legislation on a firm commitment to maintain the $60 million minimum payment throughout the legislative process. We are not prepared to negotiate on this baseline number.” The coalition also wants to be let in on the action, should California expand ‘Net betting beyond poker.
* Florida casino opponent John Sowinski is making mischief again. He’s peddling a potential November ballot question that would require any new casino to receive statewide electoral approval. That could effectively suffocate casino growth in the state, especially in the non-tribal sector, so you can be sure S&G won’t be endorsing this come November.
* Say goodbye to Duluth‘s historic (but dilapidated) Carter Hotel. It will be demolished once it is taken into trust by the Fond du Lac Band of Lake Superior Chippewa for enlargement of their downtown Fond-du-Luth Casino. The Carter sits on a steep incline, which will present the tribe with some interesting engineering challenges as its builds an extension of its existing casino. The transfer has been the culmination of a series of legal battles in which the tribe has been prevalent, particularly regarding a revenue-sharing agreement with the city that Chippewa terminated seven years ago, with the National Indian Gaming Commission deeming the payments “inappropriate.”
* At least somebody is doing better in Macao. In its 1Q16 earnings report, Galaxy Entertainment revealed a 6% increase in profit, the first gain since 3Q14. The company credited the results to a 17% increase in mass-market table play. It took a couple of quarters for tourist-oriented Broadway Macau and Galaxy Macau Phase Two to start yielding dividends but they’re obviously gaining traction. However, Galaxy is projected to be deriving 91% of its revenue from gambling in 2020. Diversifying the Macanese economy is easier said than done.
