It looks like the State of Arizona may be ready to throw in the towel in its losing fight against the Tohono O’odham Nation over its Desert Diamond casino. Gov. Doug Ducey (R) 
has inked a new compact with 10 other tribes that gives them expanded keno and poker, in return for a proviso that they will not build any new casinos in the greater Phoenix area. The “T-O” as they’re locally known, are mulling whether to sign on. Ducey has hinted that their signature could pave the way to Class III gaming at Desert Diamond, but who knows what options the tribe would like to keep in reserve? It has been holding a winning hand in the federal courts and may want to get a compact from Ducey that doesn’t include any concessions. Based on the way things have gone, we expect the Tohono O’odham to drive a hard bargain.
* Contrary to earlier reports, the newly opened Lucky Dragon Casino is being more ecumenical than previously thought, in terms of customer service. While developers Andrew Fonfa and William Weidner have done a thorough job of catering to Chinese sensibilities, other Pacific Rim cultures have not been neglected. Staffers have been prepared to address customers in Vietnamese, Korean and Tagalog. (It should be noted that Las Vegas has a Koreatown to go along with Chinatown, albeit less colorful.) The little casino appears to be playing to good reviews and its performance will certainly be watched closely by nearby SLS Las Vegas, where the last business plan was to try and leech off Lucky Dragon’s business and act as a “dormitory” for its guests, although the latter are likely to find SLS’ dinky gaming floor a disappointment.
* Well that was a short honeymoon. Scarcely had Nevada Gaming Partners reopened the Klondike Sunset than it filed Chapter 11. This is yet another example of Nevada regulators failing to perform their due diligence. In the course of licensing NGP owner Bruce Familian, they failed to uncover nearly a million dollars in unsecured debt, including promissory notes to heavy hitters like International Game Technology and Aristocrat Technologies. Regulators were so preoccupied with Mrs. Omilian’s involvement with a medicinal-marijuana dispensary that they didn’t look into NGP’s finances. Off the top of our head, we would say that Klondike Sunset’s sudden insolvency reflects the inexperience of Omilian and partner Jon Athey: Running slot routes in convenience stores is a very different cat than operating a full-service casino.
* Speaking of different cats, the present-day American Gaming Association has certainly changed its spots from the Frank Fahrenkopf era, when it was disinclined to push 
legislation, preferring to play defense. In the coming Congress, expect AGA prexy Geoff Freeman to make a full-court press for overturning the Bradley Act. The association thinks that the presence of Donald Trump in the White House will make a difference. “He was [sic] a former casino owner, he understands the business,” said AGA spokeswoman Sara Rayme. Congress will be a tougher sell than the new POTUS, who says he’s “OK with it because it’s happening anyway. Whether you have it or don’t have it … It’s all over the place.” Not Lincolnesque rhetoric but I think we get what Trump’s driving at. Besides, with illegal sports betting ringing up $149 billion, per AGA figures, legalizing and taxing it would make an attractive revenue offset for individual states, which will probably have less federal largesse to spend under a Trump administration.
