We’ve been surprised that Sheldon Adelson isn’t overtly pushing for casinos in Israel, especially upon reading that the city of Eilat “smells and feels a little bit like a very small version of Vegas.” It’s well away from the rest of Israel and exempt from the country’s value-added tax system. But, although pro-casino sentiment has been on the upswing in the Holy Land, obstacles abound. For one thing, a tourists-only casino or four might not only be hard-pressed to make ends meet, many Israels hold two passports, so verifying their nationality could be “an absolute nightmare” according to one consultant.
“The Israeli Prime Minister, Mr. Netanyahu, recently said to a source on our behalf that he desires to recreate Las Vegas in Eilat … we believe that for the first time in the history of Israel there is some actual hope for it,” said attorney Tal Itzhak Ron. Concedes Marcon Consulting Group CEO Peter Marcus, “Israel is a dichotomy because Israelis probably gamble more than many other cultures. Bulgaria, Romania, even Northern Cyprus are packed with Israelis who want to go and gamble. Even Vegas. There’s a complete demand for gambling.” But … “Israeli politics is built on collations, agreements and broad consensus, and this is something that hasn’t got broad consensus.”
Throw in opposition from far-right religious parties and a finance minister whose opinion of casinos is colored by seeing the effects of pathological gambling, and you have a couple of high obstacles for Netanyahu to clear. The upside is that gambling revenue is projected at $336 million, luring 240,000 tourists. The downside is that a $2 million allowance would have to made every year to treat an estimated 30,000 disordered gambling. Despite the positive movement on the issue, we don’t expect a change in the status quo for some time yet.
* It’s hard to imagine the dispute of Project First Light being hung up over a disagreement on grammar but there you have it. The Mashpee Wampanoag band says opponents are “creating ambiguity in the language that’s simply not there,” with reference to the Supreme Court‘s much-scrutinized Carcieri v. Salazar ruling. In a court filing, the federal government adds that the tribe is living on land it has inhabited since colonial times. Their opponents take a strict view of Carcieri, saying that only tribes who had land taken into trust after June 1, 1934 qualify to have casinos. According to the Justice Department, that’s a grammatical hangup or, as one attorney put it, “The words can’t be viewed in a vacuum.” The government argues that it had an ongoing relationship with the Mashpee Wampanoag that goes back to the founding days of the republic. The Mashpee Wamps, who are not themselves being sued, are proceeding to clear the site for their casino-hotel, with Genting Group bankrolling the operation.
* Although prospects for Internet gambling in Pennsylvania have dimmed, they’ve still got the West Virginia Lottery running scared. “Those guys are aggressive, I’ll just say that,” said Acting Director John Meyers. “To stay competitive, we’ll have to consider these, as well.” ‘Net betting is one of several fixes being contemplated to bridge a billion-dollar budget gap in Pennsylvania, along with a $2.60 a pack tax on cigarettes. (Prices like those could potentially deter smokers, meaning less revenue — and what do you do then?) West Virginia Racing & Gaming Association President John Cavacini echoed Myers, saying, “I don’t think it’s too early to be concerned,” he said. “We basically started this gaming concept 22 years ago and the other states have followed us. As a state, we’ve always been on the forefront of gaming issues.”
Web wagering in Pennsylvania isn’t the only cause for worry. West Virginia casinos are expected to take a hard hit when MGM National Harbor opens later this year. The easiest resort for the Lottery would be to sell tickets online. Expanding i-gaming further than that would require the Legislature to make new law. Myers favors twinning Internet casinos with terrestrial, as is presently the case in New Jersey and would be in Pennsylvania … if expansion proponents can get a bill out of the state senate.
