Inside Asian Gaming

January 2016 inside asian gaming 45 opening. Nobody in the industry thinks Wynn’s new project will get the 500 tables he says it needs to see a return. Frustrated with this state of affairs, Wynn flew off the handle during a conference call to discuss the company’s Q3 results. Macau’s bureaucracy, he said, was “outrageous and ridiculous,” and its approach “the most ludicrous … that I’ve seen in my 45 years of experience.” Since the return of his fortunes, however, the tycoon seems to have been taking a humbler tone. In an interview with the Las Vegas Sun, he said, “I was probably a little tougher on them [the authorities] than I should have been.” He added, “I didn’t blast anybody. I’ve been their fair-haired boy in Macau since day one. But it’s ok to complain a little. It’s ok to have a different point of view.” INTERNATIONAL BRIEFS Crunch Time for DFS America’s struggle over Daily Fantasy Sports (DFS) – the multibillion-dollar industry that has been hailed as “online betting’s newest empire” – is coming to a head with legal contests in three of the country’s five most populous states. In New York, state attorney general Eric Schneiderman filed claims against DraftKings and FanDuel, the two websites that together control 95% of the national market. He is seeking a return of all money lost by customers who played in the state during 2015, along with a $5,000 fine per case. Earlier Schneiderman had ordered the two companies to close in New York but lawyers representing them convinced an appellate judge to stay the order, pending state legislation that would legalize their business. In Illinois attorney general Lisa Madigan declared her opinion that DFS constitutes illegal gambling under state law. DraftKings and FanDuel responded by filing suit there to have the courts say DFS is in fact legal. Lastly, California held a legislative committee hearing on DFS. The same committee will also consider a regulatory bill as attorney general Kamal Harris is expected to offer his own opinion on the legality of DFS. In DFS contestants select real-life professional sportsmen to assemble their own fantasy teams, before paying a fee to enter such teams into a virtual tournament. Based on the daily performance of these real-life players, the most successful teams win a share of the overall entry fee pool. The industry argues its tournaments are games of skill and not chance, and therefore do not constitute gambling. If they are right then DFS may be regulated like other competitive games with alternative regulatory oversight. DFS’s exploding popularity means the issue of how to regulate cannot now be ignored. Before New York, Illinois and California, Nevada had already declared DFS illegal gambling, and ordered the sites out unless they acquire gambling licenses. Over the past few months, bills seeking to oversee and not ban the industry have been introduced in a dozen or so other states, including Massachusetts, Maryland and Pennsylvania. New Jersey Moves Closer to Gambling Referendum Legislators in New Jersey have given the go-ahead for a referendum on whether or not to end Atlantic City’s gambling monopoly. The aim: to save Atlantic City. The question will be put to the state’s citizens later in the year. If they vote yes, the state’s constitution will be amended to allow casinos to open in the state’s north, less than an hour away from the metropolis of New York. If they vote no, the town that was once billed as the Las Vegas of the east, might instead be looking at the desolation of Detroit. Atlantic City’s fortunes have been in free-fall since other northeastern states also legalized casino gambling, starting with Pennsylvania in 2006. Investors who once thought the seaside town had enough allure to draw in gamblers from across the nation watched in horror as players opted to bet closer to home, and abandoned AC in droves. Four of Atlantic City’s 12 casinos went bust last year. Another three are now under Chapter 11 protection. The city’s finances have followed the casinos. Some analysts warn of impending bankruptcy. If New Jersey’s citizens vote yes the new casinos, which will likely be in East Rutherford and Jersey City, should bring gambling revenue back to the state. 35% of their take will be allocated to Atlantic City. This may lead to the ultimate irony of Atlantic City being saved by authorities allowing gambling outside Atlantic City. In addition to the referendum, state legislators also approved a financial aid package for Atlantic City. State governor Chris Christie vetoed the original version of this bill after legislators passed it last month. The new version has been amended to demand greater structural change in the city, and greater accountability from its beneficiaries.