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									                               ADAMS REPORT
                                      A Review of Current Gaming Literature
                                                Volume VI, Issue 1
                                                  January 2002

Quick-takes: The month’s trends in a glance.
In January, the economy, Enron and its impact on business were the key issues. Airlines remain very
important to the overall economy, and it is still unclear which will survive and how service levels to many
of the minor markets will be affected. Unemployment and the other key measurements for economic health
are still “recession-like.”
Enron will impact gaming in several ways: by the impact on public accounting and its impact on the
management of 401 (K) retirement accounts. Expect more careful reporting and more control over 401

        Airlines Still Struggle for Equilibrium, Dropping Prices to Attract Customers. Crash
        strapped airlines are turning again to cheaper seats to put more people on their planes, but this
        boon for travelers is hitting the carriers hard and raising new questions about the industry’s health.
        Airlines average one-way fares in December were $108 and have not been that low for a decade,
        said the Air Transportation Association, an industry trade group for the nation’s largest airlines.
        …Many airlines have based their franchises on charging business travelers three or four
        times more for tickets than a bargain-hunting vacation traveler would pay for the same flight.
        Business fliers paid premium prices of $1,000 or more so they could book at the last minute or
        change itineraries if their plans changed. With the economy weakening well before the Sept. 11
        attacks, many companies were becoming increasingly cost conscious and objecting to the way
        airlines were doing business. As the recession drags on, business travelers are acting even more
        like value-minded leisure travelers as they cope with tight corporate budgets.
        …Did the bailout backfire? The $10 billion portion of the package providing airline loan
        guarantees is the most troubling and questionable part of the program, Ken Button, a George
        Mason University professor, said from his Virginia office. “It’s unfortunate that airlines were
        given aid under this stability program,” he said. “Carriers such as American West were in
        financial trouble long before terrorist commandeered four jetliners,” he said. Other airlines
        would be much better off today if their weaker competitors were allowed to fail, said Sam
        Peltzman, an economist at the Graduate School of Business at the University of Chicago. …With
        fewer flights competing for the reduced number of passengers willing to fly these days, airlines
        still in business would not feel so much pressure to resort to lower fares that don’t make enough
        money, Peltzman said. “Fare levels today are unsustainably low,” Peltzman said. “But the
        reality is an economic one. If the capacity is not reduced to match the reduced demand, the fares
        will stay low.” Jason Gertzen, Milwaukee Journal Sentinel, Knight Ridder/Tribune Business News, Hotel Online, 1-30-02

        Attacks Batter Job Market. 1.8 Million More to Be Looking for Work. The Sept. 11 terrorist
        attacks will cost the country more than 1.8 million jobs by the end of the year, according to a study
        released early today. …The Milken Institute, a Santa Monica, Calif.-based economic think tank,
        which studied 315 cities, said the losses will spread across industries, from restaurants to financial
        services to aerospace, according to The Associated Press. …Already, 248,000 jobs have been lost
        because of the attacks, and an additional 1.6 million are expected to be lost this year, the report
        said. …Las Vegas will prove the single most vulnerable metropolitan area in percentage terms…5
        percent fewer jobs this year. …The U. S. Labor Department, which tallies job losses, found a total
        of 1.1 million jobs were lost from September through December. Those four months account for
        all but 300,000 of the jobs lost since the recession began in March, the department’s statistics
        show. …Of the estimated 1.6 million job losses this year that it ties to the terrorist attacks, 760,000
        will be directly related to the attacks, with two-thirds of those in travel and tourism, the report said.
        The rest will be due to a ripple effect. Chris Gautreau, The Advocate Online, 1-11-02

The Enron effect, Enronitis, or whatever you call it, is going to have a very deep and long lasting impact on
the way business is done, and expect the impact to creep into gaming regulations. Interestingly, a gaming
company, Trump’s, has already been reprimanded for improper reporting. And at least one gaming
company has already changed accounting firms. There will be more reprimands, more changes in
accounting firms and new laws and regulations to try and prevent another Enron.

        Meet the Street: Debate Over Use of Pro Forma Earnings Continues. On Wednesday, the
        Securities and Exchange Commission accused Trump Hotels & Casinos Resorts Inc. of making
        misleading statements in a 1999 earnings release, bringing into sharp focus the issue of pro forma
        earnings reporting. The move came just as fourth-quarter earnings season launched into full swing
        this week. The widespread practice of pro forma reporting, or reporting that deviates from
        generally accepted accounting principles (GAAP), gained in popularity in the ‘90s as fast-growing
        companies sought to exclude acquisition-related and other charges that might have obscured their
        growth. But pro forma reporting has since become a more controversial topic. Pro forma reporting
        allows companies to exclude reams of unspecified charges from their earnings, which often makes
        it difficult to assess a company’s true fortunes. Last month, in a written warning, the SEC
        threatened to bring civil cases against companies that hide deviations from regular accounting
        principles in their earnings releases. spoke with Jeff Brotman, adjunct professor of accounting at Penn Law, the
        University of Pennsylvania’s law school, about how pro forma reporting is shaping up so far this
        season, and where the SEC goes from here. Among other things, Brotman believes that even
        getting all companies to report earnings on a GAAP basis wouldn’t solve everything, and that to
        change things substantially, it might well take a huge lawsuit against a company accused of
        manipulating its numbers in order to mislead investors.
        …Brotman: I first started seeing widespread use of pro forma reporting about nine years ago, when
        there was a change made in GAAP for post retirement employee health benefits. You used to be
        able to use a pay-as-you-go-system, but the Financial Accounting Standards Board decided
        companies had to record the liability for these charges. As a phase in, you could either take these as
        a one-time charge, or draw it out over a 10-year period. And I believe this coincided, in 1992 or
        1993, with the waning days of the last recession, so a lot of companies took these big one-time
        charges. If you look at IBM’s reported bottom line number, for example, they had a big loss that
        year because they had to book this charge. That’s when you got companies saying, we’re going to
        also show what we would have made if we hadn’t done this, so that you can compare from period to
        period. You’ve always had a situation where companies reported earnings before extraordinary
        items. But this was one of the first instances where it was across the board. So while it may have
        started with the best of intentions, companies started using it to massage appearance. Kristen French,, Yahoo! Finance, 1-17-02

        Companies Confess Big Mistakes in Accounting Shift.         Deepa Babington - NEW YORK (Reuters) - In Corporate

        America, it's time for true confessions. Companies are starting to admit that they overpaid for
        acquisitions during the heady Internet boom and a wave of huge charges to earnings are expected to
        make up for their past mistakes. But it's not because board rooms are suddenly awash with guilt.
        The “mea culpas” are taking place because of stringent new accounting rules that kick in this year.
        The rules are forcing investors to puzzle over massive one-time charges companies are taking to
        write down the value of goodwill -- the premium paid to acquire a company over the book value of
       its assets --on their books. AOL Time Warner Inc. (NYSE:AOL - news) became the latest
       high-profile company to say it will take a blockbuster charge to write-down the value of its
       goodwill, citing the new rules. On Monday, it said it would take a whopping $40 billion to $60
       billion charge -- likely to become the biggest one on record -- to write off the goodwill it amassed
       when it took over Time Warner two years ago. Then again, the charges will make AOL Time
       Warner's future earnings look a lot better: The company expects the accounting change to add
       almost $6 billion to net profits annually.

       Hard Rock Dismisses Auditor. Hard Rock Hotel Inc. of Las Vegas said it dismissed embattled
       accounting firm Andersen as its auditor Monday and retained Deloitte & Touche LLP in its place,
       Dow Jones News Service reported. In a filing Wednesday with the Securities and Exchange
       Commission, Hard Rock said the company's management recommended the change in auditing
       firms, and its board ratified the decision. Las Vegas Sun, 1-31-02

Can you imagine a more appropriate gift in Nevada than stock in a casino?

       UNLV Group to Hold Casino; Rebel Bets Canceled. The University of Nevada, Las Vegas’
       fund-raising organization will soon have a small stake in Jackie Gaughan’s three downtown Las
       Vegas casinos – and, as a result, those casinos will no longer accept bets on UNLV. On
       Wednesday the Nevada Gaming Control Board approved the donation of $100,000 in stock in
       Exber Inc., Gaughan’s casino company, to the UNLV Foundation. Rather than selling the stake,
       the UNLV Foundation will hold the stock and is entitled to receive profit distributions from it.
       Board Chairman Dennis Neilander said it was the first he could recall such a donation having been
       made in Nevada. If the board’s decision is upheld by the Nevada Gaming Commission later this
       month, the foundation will receive a 10 percent stake in the Mel Exber Family Trust, which owns
       slightly more than 6.5 percent of Exber. Mel Exber is Gaughan’s partner. David Strow, Las Vegas Sun, 1-10-02

The Megabucks theory: More slot machines linked mean bigger jackpots; bigger jackpots mean more
players, and more players mean bigger profits. It works for lotteries, too.

       Seven State ‘Big Game’ Lottery Adds an Eighth. There are currently seven states that make up
       the Lottery’s Big Game including, Michigan, Maryland, Massachusetts, New Jersey, Illinois,
       Virginia and Georgia. It has now been announced, by New York Director Margaret DeFrancisco,
       that New York will join these seven states to form an eight-state mega-jackpot game. She was
       quoted as saying; “Our players and retailers have been looking forward to this day for quite some
       time. We are pleased that all New Yorkers will have the opportunity to share in the kind of
       excitement that only a mega-jackpot game can create." The game is still without a name, but
       tickets are expected to go on sale sometime in the spring of this year. The Michigan Gaming Law Newsletter, Vol. 8, Issue,
       1, 1-9-02

Update: Issues that you have seen before.
The international world of gambling is sometimes very much the same as that of the United States, and
sometimes very different. But crime is a factor of life in American casinos, too.

       Three Wounded as Gunmen Fire into Algerian Gambling Hall.                    – Three people were
                                                                                             Algiers (AFP)

       injured when an armed group burst into a gambling hall in western Algeria and sprayed it
       with machine gun fire, official sources said on Monday. The gunmen fled after firing at staff in
       the hall late on Sunday in the town of Ain Bouchekif near Tiaret, some 340 kilometers (210 miles)
        southwest of the capital Algiers. …The region around Tiaret has been the scene of increasing
        violence blamed on Islamic militants., 1-8-02

        Police Say Woman Arrested for Bus Holdup May Also Have Been Part of Boston Robbery
        Ring. Boston (AP) – Gunmen arrested for a string of Boston robberies are also under investigation for a
        brazen October holdup of a bus bound for Foxwoods Resort Casino, police said. …Police say
        Marshal Bryant Kendrick, 31, was among a group of masked thieves armed with guns and
        machetes who barged onto the tour bus headed to Foxwoods…and demanded passengers’ wallets.
        Boston Globe Online, 1-3-02

California had 19,000 slot machines in the pre-compact, pre-Proposition 1A days. Georgia has that many
today, illegal, but not quite. They wandered across the state line when South Carolina finally threw them
out, after 50 years of fighting. If Georgia is going to keep slot machines out, it will be a battle.

        Judge Overturns Ban on Video Poker Machines.              – A judge overturned Georgia’s new ban

        on video poker machines Monday, calling the law unconstitutionally vague and the result of
        lawmaking that “possess a real threat.” The Legislature passed the law during a special session last
        summer, responding to complaints that companies moved thousands of video poker machines to
        Georgia after they were banned in neighboring South Carolina two years ago. …A Georgia Bureau
        of Investigation report estimates there are between 15,000 and 20,385 video poker machines in
        Georgia, accounting for annual gross proceeds of more than $1 billion. Keith Parsons, Associated Press, Las Vegas Sun,

The Story of the last license in the Chicago area is one that does not go away easily. Here is the latest

        MGM MIRAGE still trying for new casino in Chicago. MGM MIRAGE’s efforts to place a casino in the
        heart of metropolitan Chicago may soon be moving forward again. MGM MIRAGE had tried to
        acquire an Illinois gaming license from Emerald Casino Inc. for a casino located in the town of
        Rosemont, a small village next to O’Hare Airport on Chicago’s west side. Emerald had previously
        been blocked by the Illinois Gaming Board in its effort to build a casino in Rosemont. The board
        also blocked Emerald’s efforts to sell the license to MGM MIRAGE, saying in August that
        Emerald had no right to sell the license, and instead had to turn it over to the state. However,
        sources told the Las Vegas Sun this week that the board’s new administrator, Philip Parenti, may
        have reached a settlement with Emerald that would clear the way for MGM MIRAGE to
        assume the license. The proposed settlement could be considered by the five-member board as
        early as this month, they said. David Strow, LAS VEGAS SUN

US Casinos, Game Machine Makers Spar for Revenues.                           – It’s the battle for the
                                                                         Los Angeles (Reuters)

one-armed bandit and its stash of loose change. A growing conflict pitting the nation’s top casinos
against slot machine makers has spilled into the open, with casino operator Harrah’s Entertainment
recently saying it wants to retain a bigger share of slot profits. At issue is a growing trend in which slot
machine makers pour their best efforts into machines that they give or lease to casinos in exchange for a cut
of profits, rather than machines that are sold outright.
…“We feel we can’t manage the profitability of the company by continuing to put more and more of these
(revenue-sharing) games on the floor,” said Bruce Rowe, corporate vice president of slots at Harrah’s.
Rowe estimate that the average fixed-price slot machine costs about $11 a day to operate, compared
with $75 a day for a revenue-sharing variety. …The push by Harrah’s follow a similar drive by smaller
casino operator Station Casinos, which began cutting back on its revenue-sharing machines two years ago.
“The primary reason (gamblers) are coming is for the entertainment complexes we’ve built,” said
Station Chief Financial Officer Glenn Christenson. “A couple of years ago, we had substantially more
(profit-sharing machines) than we do now. This has been a focus of ours for some time.”
…If the casinos owners do cut back, the company with the most to lose could well be International
Game Technology, the industry’s 100-pound gorilla with more than 60 percent of U. S. slot machine sales.
Doug Young, Yahoo! Finance, 1-24-02

Harrah’s Watch
Colorado and New Orleans have not been easy jurisdictions for Harrah’s. After a long difficult
time, they are making progress in New Orleans, but have no interest in making another run at
Colorado. Some markets just don’t seem to be worth the effort, even when you are trying to
establish “the national brand.”
             Is Harvey’s in Central City for Sale? When gambling powerhouse Harrah’s Entertainment
             bought four Harvey’s casinos in April, hope for a national ally bloomed in Central City, where
             Harvey’s Wagon Wheel Hotel Casino props up the struggling city’s budget as the largest casino in
             town. That hope has faded. Late last month, Harrah’s proudly crowed that it had embraced three
             of the four Harvey’s casinos in its computerized family, which, through new computer systems at
             the casinos, allows players to earn discounts for rooms and gaming. Excluded from Harrah’s
             computerized fold was Central City’s Harvey’s. Harrah’s website lists 24 of its casinos but
             curiously leaves Central City off that list. …Harrah’s sold a casino in Central City and one in
             Black Hawk in early 1997, citing the business challenges of running casinos under Colorado’
             limited-stakes regulation. …“I think the fact that Harrah’s has not integrated Harvey’s into
             their system portends a lot toward what they want to do with the property,” Michael Cahill,
             president of Hospitality Real Estate Counselors in Englewood, Colorado said. Knight Ridder Tribune Business
             News, 1-11-02

             Company head: Casino won't be asking for more concessions.        ALAN SAYRE, The Associated Press, NEW ORLEANS (AP) --

             Harrah's New Orleans Casino, which received a major tax break from the state last year, will not be
             asking the Legislature to make more concessions, the head of the casino's ownership company said

According to the next story, Harrah’s had a good quarter because of its marketing strategy and its
geographical diversity, all part of the “Grand Strategy.” Two more parts of the grand strategy are revealed
in the next three articles: Sue to protect your position and keep the competition on the defensive; and get
ahead in product and services with exclusive agreements and strategic partnerships. Harrah’s has
continually used its size and financial power to gain an advantage in the casino marketplace.

             Harrah's sees better-than-expected Q4 earnings.        LOS ANGELES, Jan 15 (Reuters) - Casino operator

             Harrah's Entertainment Inc. (NYSE:HET - news) said on Tuesday it will report fourth-quarter
             earnings above analysts' forecasts, crediting its marketing strategy and geographic diversity
             for the results Las Vegas-based Harrah's. It expects to report fourth-quarter adjusted earnings
             of 44 cents to 48 cents per share. The consensus estimate among the 19 analysts polled by Thomson
             Financial/First Call was 35 cents, with forecasts ranging from 20 cents to 40 cents. Doug Young, Yahoo!
             Finance, 1-15-02

             Stratosphere Punished for Violating Harrah’s Patent. U. S. District Judge Lloyd George in
             Las Vegas on Wednesday issued an injunction that prohibits Stratosphere Corp. and other
             gaming operators from infringing on a marketing patent held by Harrah’s Entertainment
             Inc., Harrah’s said. Harrah’s sued Stratosphere last April, alleging that Stratosphere was operating
        a promotion that infringed on Harrah’s patented “Bet Guarantee System.” Developed by Thomas
        Cook and James LoCicero and filed in 1996, the invention is a casino management system that
        tracks a player’s wins, losses and the casino’s theoretical win to produce a rating ticket that
        customers can redeem for cash, credit or coins. Chris Jones, Las Vegas Sun, 1-24-02
        WMS Gaming Installs HOLLYWOOD SQUARES Themed Participation Gaming Devices in Harrah's
        Casinos. Launch of Third Major Branded Participation Series Begins in Five Casinos .
                                                     Gaming Inc. a subsidiary of WMS Industries Inc.
        WAUKEGAN, Ill.--(BUSINESS WIRE)--Jan. 30, 2002-- WMS
        (NYSE: WMS -news), announced today that it began installation of its new HOLLYWOOD
        SQUARES(TM) themed participation gaming machines at four Harrah's Entertainment, Inc.
        (NYSE: HET - news) properties in Iowa and Missouri, and the Rincon Band temporary facility in
        California. Yahoo! Finance, 1-30-02

        Company Gets Slot Exclusive.    Harrah's Entertainment Inc. announced Tuesday it signed an
        agreement with Las Vegas-based Sigma Game Inc. to introduce a slot machine branded on "The
        Game of Life," a board game produced by Hasbro Inc. The agreement gives Harrah's the right
        to exclusively place the slot machine at its casinos across the country for a 60-day period,
        subject to regulatory approvals. The Game of Life was introduced by Milton Bradley in 1960 . Las
        Vegas Sun, 1-30-02

What is next in Las Vegas?
         Harrah's plan for casino advances - Harrah's Entertainment Inc. is asking Clark County officials to
        approve a hotel-casino project directly north of its Rio resort on Flamingo Road, near the Las
        Vegas Strip. David Strow, Las Vegas Sun, 1-30-03

Wynn Watch
There is enough “stuff,” developments, financing and such, all of which promise to be unique and
interesting in the World of Steve Wynn and his Le Reve to make a special section of its own. It may be too
soon to have a monthly section, but whenever Steve takes the stage it is worth watching.

        Wynn Confident in Le Reve Financing: Megaresort project to cost $1.63 billion. Steve
        Wynn expects financing for his planned Le Reve megaresort to be completed by the end of
        February, with construction to begin about six weeks later. …“We’re working on financing that
        will be a new thing for Nevada, something that (Gov.) Kenny Guinn would say is great for
        Nevada,” Wynn said. Jeff Simpson, Gaming Wire, 1-11-02

        Resort’s Neighbors Say Plant Meant to Oust Them. Desert Inn Estate homeowners fighting to
        keep their property from being swallowed by Steve Wynn’s newest resort believe a proposed
        cement and gravel mixing plant is the casino mogul’s latest attempt to oust them.
        …After Wynn purchased the Desert Inn in June 2000, he began buying out homeowners whose
        houses bordered the golf course. Of the 53 lots included in the Desert Inn Estates Association, only
        12 remain occupied.
        …Wynn acquired more than 30 of the parcels with his purchase. Having majority vote on the
        Desert Inn Estates Association board, he opted to dissolve the board and erase the community,
        covenants and restrictions. The board was later resurrected, but whittled to three members – all
        with ties to Wynn’s company. Rubinstein, the board chairman, insists his company is trying to
        treat residents well. He said there are no plans to erect walls or tear up the gold course. At worst,
        under existing plans, homeowners’ view of the course may be impeded by a tree or berm. He said
        the residents’ behavior is making it increasingly difficult to work with them. “During demolition
        work they were blockading trucks and harassing workers,” he said. “It was silly.” Adrienne Packer, Las Vegas
        Sun, 1-11-02

Bit and Pieces from Indian Country
Big News from the Everglades. The Seminole tribe has been at the vanguard of Indian gaming since the
beginning. The tribe was among the first to have high stakes bingo. They lead the charge in suing a state
for failure to negotiate a compact in good faith, which lead to the ruling that the states could not be sued and
therefore invalidating that part of the National Indian Gaming Regulatory Act. The Seminoles have
constantly pushed the envelope with their non-compacted, almost Class III, but not quite, casinos. Their
business enterprises are very successful, generating an estimated $600 million in annual revenue. But that
success has not come with controversy and difficulty. Last year, Chairman James E. Billie was suspended
and is being investigated for his business dealings. Now, a key figure in that drama has been gunned down.

        Police: Seminole Attorney Shooting Appears Planned.          Hollywood – Seminole Tribal Council

        members were under armed guard Thursday after the tribe’s top lawyer, Jim Shore, was shot in
        what appeared to be a planned attack. General counsel Jim Shore, 56, a respected tribal
        member who has recently acted as the tribe’s primary spokesman during politically controversial
        times, was shot several times in the torso. An unknown assailant fired through the sliding glass
        door of Shore’s home…Alone, Shore, who is blind, called 911. …“I’m blind, and I don’t know
        what happened,” Shore said. “I don’t know if I’ve been shot at or [it’s] an electrical thing. But my
        arm hurts – I feel some bleeding here.” …in critical condition after the shooting. Vicky Agnew, Tanya Weinberg
        and Jeff Shields,, 1-11-02

The recognition process is not a simple one, easy or quick. The common belief that any group of
people can call themselves a tribe, buy some land and get the federal government to recognize them as a
tribe, and then have the state negotiate a gaming compact is simply not true. Here are a couple of examples
from January of 2002, a successful one and an unsuccessful. The Auburn Tribe has been trying directly to
gain recognition, sign a compact and contract for management services for at least the last five years to my
knowledge and probably much longer. The 1988 National Indian Gaming Regulatory Act was a catalyst for
many tribes to seek federal recognition. They appear to have finally succeeded. The second group formed,
adopted a constitution and began down the path to gaming in 1994. They lost; the ruling is that the group
“has no valid claim to the Amador tribe,” although they have been participating in the revenue sharing from
the “gaming tribes,” according to the Sacramento Bee article.

        Plans Advance for South Placer Casino. Plans to build a new casino in South Placer County
        moved forward Friday when the U. S. Department of the Interior said it intends to put the land in
        trust for the United Auburn Indian Community. The local tribe plans to build a casino of up to
        200,000 square feet on 49 acres at Athens Avenue and Industrial Boulevard in the Sunset industrial
        area near Roseville, Rocklin and Lincoln. Station Casinos Inc of Las Vegas will develop and
        manage the casino. Sacramento Business Journal, 1-5-02

And before the ink was dry on the previous story the approval of the Auburn tribe and the fate of the Station
Casinos property changed.

        Agency Reverses Decision on Plans for Tribal Casino. Pressure from White House Chief of
        Staff Andrew Card apparently forced the Interior Department to at least temporarily back away
        from a recent announcement that land will be set aside for a Northern California tribal casino that
        would be run by Las Vegas-based Station Casinos. Card contacted Interior Secretary Gale Norton
        about the planned Sacramento-area casino after he and presidential adviser Karl Rowe received
        phone calls from a Northern California congressman who has long opposed the project,
        congressional and Bush administration sources said Tuesday. …“The reversal of the earlier BIA
        announcement was probably political, procedural and substantive,” David Lopez, chief of staff for
        Rep. John Doolittle, R-Calif., said, noting that the casino would be near neighborhoods, schools
        and churches. Jeff Simpson, Gaming Wire, Las Vegas Review-Journal, 1-16-02.

If the ink was not dry on that, try this. Within two days there is another article that disputes the first. Will
there be BIA approval for the Auburn tribe and thereby give Station Casinos a place to play? We will just
have to keep reading the reports. Until it is published in the Federal Register, nothing is certain.

        Placer Casino Approval Looks Likely. An application to put 58 acres of land into trust for a
        Placer County Indian casino will likely get the stamp of approval, despite earlier stories that
        pressure from Rep. John Doolittle had prompted U. S. Secretary of the interior Gale Norton to
        reconsider the decision. …“This particular application has been very thoroughly reviewed, and the
        tribe has done its best to bring this in complete compliance with all land-use plans and
        environmental requirements, so I’m going to approve it,” Assistant Secretary of Indian Affairs
        Neal McCaleb said. Jennifer Morita, Sacramento Bee, 1-18-02

And then the tribe that didn’t make it.

        Tribe Recognition for Casino Denied. The Bureau of Indian Affairs has overturned recognition
        of a three-member tribe that has been working with gambling promoters to develop a $100 million
        casino complex in remote Amador County, in wooded hills 40 miles from Sacramento. The ruling
        by Dale Risling Sr., superintendent of the bureau’s Central California Agency, may well deal a
        crippling blow to plans by a gaming partnership – Cascade Entertainment Group – to build the
        casino, restaurants and concert hall on the Buena Vista Rancheria near state Highway 88 and Ione.
        Peter Hecht, Sacramento Bee, 1-5-02

The courts continue to sort out the meaning of sovereignty. The case of the Bishop Paiute tribe strengthens
tribal sovereignty, as does the 10th Circuit Court ruling. However, the case in Texas goes in the opposite
direction. Stay tuned as the balance of sovereign power changes often, sometimes the tribes win and
sometimes the states win.

        Ruling on Indian Casino Search Tossed. Police in Western states have no legal right to search
        tribal property on Indian reservations, the federal appeals court in San Francisco ruled yesterday
        despite dire warnings from California prosecutors. Citing tribes’ right to self-government, the U.
        S. Court of Appeals said the Bishop Paiute tribe, located northeast of Fresno on the eastern side of
        the Sierra Nevada, could sue Inyo County for a March 2000 search of tribal casino’s payroll
        records. …The ruling is binding on federal courts in California and eight other states. The court
        rejected a warning by the California District Attorneys Association that barring police searches
        would make the state’s numerous tribal casinos a potential haven for organized crime. Bob Egelko, San
        Francisco Chronicle, SFGate, 1-5-02

        U. S. Appellate Court Upholds Right of Indian Reservations to Ban Forced Unionism.
        Foundation helps halt federal government’s assault on tribal sovereignty and employee rights. San
        Juan Pueblo, N. M. – In a precedent setting 9-1 ruling, the U. S. Court of Appeals for the Tenth
        Circuit has upheld the sovereign right of Native American reservations to pass Right to Work laws
        to protect workers from being forced to pay union dues. The ruling announced today advances the
        National Right to Work Legal Defense Foundation’s battle to protect Right to Work laws around
        the country. The decision affirms that the 300 Native American reservations across American may
        pass Right to Work laws to limit forced unionism. Attracted to growing economies, unions
        organize companies on reservations. This ruling clears the path for tribal governments to act
        without interference from the federal government. News Release, National Right to Work Legal Defense Foundation, Inc., 1-15-02

        Ruling deals blow to Indian casino. Appeals court upholds decision saying Tigua gaming hall illegal
        AUSTIN – The Tigua Indians on Thursday were dealt a serious setback in their legal battle to keep

        open the El Paso casino that has provided tens of millions of dollars to the once-destitute tribe. In
        a terse ruling, a three-judge panel of the 5th U.S. Circuit Court of Appeals in New Orleans upheld
        a ruling by a trial court last October that the tribe's Speaking Rock Casino is illegal and that it must
        shut its doors.
        GEORGE KUEMPEL / The Dallas Morning News 01/18/2002

In the 2000 elections the tribes banded together to fund Maria Cantwell’s Democratic candidacy against
Republican senior Senator Slade Gorton of Washington. Gorton had become a staunch opponent of tribal
sovereignty and a thorn in the tribes’ side. Although the campaign was in the state of Washington, tribes
from around the country contributed to the successful campaign. The announcement that John Cornyn will
run for a U.S. Senate seat in Texas (see below) could trigger the same kind of reaction. The tribes have long
recognized their common interests and have formed several national organizations around those interests,
but they now have much more money and consequently more political muscle. This will be an interesting
race to watch. The polls are not the only place the tribes are learning to use their strength, look to the courts
as another place to see a new and stronger tribal presence.

        Tigua Nemesis Texas Attorney General to Run for Senate Seat.                     – Tribal nemesis
                                                                                                    Houston, Texas

        John Cornyn will run for the Senate seat vacated by U. S. Sen. Phil Gramm, R-Texas. Texas
        Attorney General Cornyn, a Republican, has won wide attention in Indian country by his attempts
        to close down two Indian gaming facilities in Texas. He has attacked the issue of tribal sovereignty
        by saying the two federally recognized tribes in his state have the same status as a fraternity or
        sorority. Mary Pierpoint, Indian Country Today, 1-12-02

        Tribe Moves to Shut Down Detroit Casinos. Detroit’s billion-dollar casino industry was in
        legal limbo this morning, as a Michigan Indian tribe launched an effort to shut down all three of the
        city’s gaming properties. On Friday the Sixth Circuit Court of Appeals ruled Detroit’s casino
        licensing process was unconstitutional, as the city had given preferential treatment to two
        applicants – Greektown Casino LLC and Atwater Entertainment Associates LLC. Atwater is a
        partner in Detroit’s MotorCity Casino with Mandalay Resort Group of Las Vegas …The Lac
        Vieux Desert Band of Lake Superior Chippewa Indians, which filed the suit challenging the
        Detroit licensing process, immediately asked Michigan gaming regulators to shut down all three
        Detroit casinos. David Strow, Las Vegas Sun, 1-14-02

The next story is from Montana, where according to the story there will be a new “Indian” Senate district.
That would leave one to believe the representative from the district will very likely be a tribal member, not
the first one in the country, but strengthening a growing trend.

        Favored New Boundary Plan Would Create Vast Indian District.                  – A favorite emerged

        Wednesday at a public hearing on a handful of plans for redrawing north central Montana’s
        legislative district boundaries. Roughly 35 residents attended the hearing at the Hill county Justice
        Center in Harve, with the majority testifying in favor of a plan that would keep the town of Conrad
        and many other communities intact while creating a geographically vast Indian majority Senate
        District encompassing the Rocky Boy’s, Fort Belknap and Fort Peck reservations. The other
        proposed Indian majority Senate district would unite the Blackfeet and Flathead reservations. Karen
        Ivanova, Great Falls Tribune, 1-17-02
The Secretary of the Interior is responsible for the majority of the federal government’s dealings with
federally recognized Indian tribes. The relationship between the tribes and the Department of Interior is
complex, often confusing and usually contentious. The current arguments over the management of the
“Indian Trust Fund” are no exception. Although the issue is not new this month, it has heated up
considerably of late.

        Ruling Deals Setback to Norton.      Washington – A federal judge ruled Tuesday that lawyers for a

        group of American Indians have established “a prima facie” case that Interior Secretary Gale
        Norton is guilty of contempt of court by failing to safely guard Indian trust records from
        computer hackers. The ruling by U. S. District Court Judge Royce C. Lambert was the latest in a
        series of setbacks that government lawyers have suffered in their efforts to protect Norton from
        what the judge had previously described as her “clearly contemptuous” conduct in a lawsuit that
        challenges her department’s admitted mishandling of the trust accounts. Bill McAllister,, 1-1602

        Tribes Contend They Haven’t Been Consulted by Washington. More than 400 American
        Indian leaders from California and other Western states gathered in San Diego yesterday to shower
        two high-ranking Interior Department officials with criticism about a proposal to split the
        U. S. Bureau of Indian Affairs into two agencies. “Each of us here today realizes that
        reorganization is necessary,” said Pala tribal Chairman Robert Smith. “But there must be
        consultation with the people (the bureau) was designed to protect.” Chet Barfield, San, 1-18-02

Heated rhetoric produces some very bizarre comments at times, often revealing the underlying, but
frequently not articulated, sentiments of a debate. In that light, I offer the following, for those who are
trying to understand a tribe’s position when a state refuses to recognize what the tribe believes is a
sovereign right to operate a casino (or conduct any other activity on tribal land). It isn’t always heated
rhetoric that produces powerful metaphors. The tribes’ meeting in San Diego reached out for images of
war to make a point.

        Alabama-Coushatta Chairman Kevin Battise thanked tribal leaders all over America for voicing
        their strong concern. “The Indian Wars are over in California, the Indian wars are over in
        New Mexico, the Indian Wars are over in Minnesota, the Indian Wars are over in Michigan
        and the Indian Wars are over in Dakotas – but unfortunately for us and our local
        community, they are not over in Texas,” Battise said. Mary Pierpoint, Indian Country Today, 1-25-02

        Tribes issue call to action. SOVEREIGNTY: The efforts outlined seek to protect their unique
        position as American Indians. - California tribal leaders called on Indians nationwide Wednesday
        to join in a massive campaign to reshape the public's image of American Indians and to shore up
        tribal sovereignty.
        Vowing to fight against what they see as an assault on their unique rights as American Indians,
        tribal leaders issued the call at the Western Indian Gaming Conference in San Diego. They urged
        others to join them in working through the courts and state and federal legislatures to protect and
        restore Indian rights. Leaders also encouraged tribes to use public relations campaigns to spread
        their message. “Copy what warriors do.” "Make no mistake, this is a war," declared Anthony
        Pico of the Viejas Band of Kumeyaay Indians in northern San Diego County. "You've got to copy
        what warriors do."
        Panelists revealed Wednesday that a piece of federal legislation is being drafted by Sen. Daniel
        Inouye, D-Hawaii, to clarify and restore elements of tribal sovereignty. They said it's imperative
        that tribes nationwide work together to fashion an acceptable, understandable definition of tribal
        sovereignty and to convince voters of its importance. Waltona Manion, a tribal communications
        consultant who played a key role in the California ballot measure campaigns known as Prop. 5 and
              Prop. 1A, said there is a lot of confusion among voters about tribal sovereignty. "The tribes'
              political future will be shaped by whose definition takes hold in the hearts and minds of
              America and its elected officials and the media," she said. "We are selling this concept to
              non-Indians." MICHELLE DEARMOND, THE PRESS-ENTERPRISE SAN DIEGO, 1-31-02

News from the Net
Woodbine to Introduce Internet Wagering. Officials at the Woodbine Entertainment Group, which
operates Toronto’s Woodbine racetrack, hope to offer Internet wagering “within the next six
months.” Woodbine Entertainment President David Wilmot said the company has successfully lobbied to
have federal legislation overturned, which will pave the way for customers to bet from their computers.
“The enabling regulations are very close,” Wilmot said. “Basically, the Canadian Pari-Mutuel
Association has agreed that the concept of other electronic devices used for wagering is exactly the same as
betting over a telephone line which we’ve already been doing.” Thoroughbred Times Today, 1-11-02

Online Devices in Development. U. S. gaming companies, such as New Jersey-based Interactive
Systems Worldwide Inc., are developing new gambling technologies in the expectation online
gambling will be made legal in the United Sates, the Wall Street Journal reported Monday. Las Vegas Sun, 1-15-02
BeTheDealer(TM) is First Casino to Offer House Odds.                 -   CURACAO,   Netherlands   Antilles,   Jan.   30   /PRNewswire/   -- announces the release of the world's first online gaming platform that allows
players to enjoy the “house'' odds. Patent pending software launched early this
month after research and development by Honor Graduates of Technion University in Israel.
BeTheDealer(TM) combines the best of Internet gaming -- a multiplayer capability with a transaction fee
model using proprietary algorithms that allow players to become the house. This is the first time a casino
company has been able to provide players with the ability to play as the dealer. As a dealer, players
are afforded not only an increase in odds since they're playing as the house, they also have the excitement of
becoming the blackjack dealer or even acting as the slot machine itself, while chatting with the other
players. Jan. 30 /PRNewswire/

Internet History in the Making; Cyber Casino Launches Million-Dollar Slot Machine.
                           In an effort to ``up the ante'' in the brutally competitive online casino market, the
ST. JOHN'S, Antigua, Jan. 31 /PRNewswire/ --

Golden Palace Online Casino has developed and launched the Internet's first million-dollar slot machine.
Most Las Vegas casinos offer similar machines to attract potential customers, but this new
``WinaMillion'' slot is the first of it's kind to appear on the Internet. While most cyber casinos claim
that their software can adequately simulate a live casino experience, seems to be a step
ahead of the competition with this new release. Expect other big names in the industry to follow suit .

No Comment
“We saw that there wasn’t a lot of meat left on the bones in North America and
particularly the United States,” said Randy Adams. Marian Green, Slot Manager, January 2002
Each of the following articles is a direct quote from the publication as cited. The articles in the original publications
vary in length and detail, but are always more detailed than as presented in this report. The original article should be
consulted any time the issue is of importance to you.

American Indian Report
The Balancing Act. Tribes gear up to comply with GASB-34. Whether tribal governments like it or not,
the way they balance their books is changing. They can credit or curse Governmental Accounting Standard
Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and
Analysis (MD&A) – for State and Local Governments (GASB). Approved by the GASB in June 1999,
GASB-34 established new financial reporting requirements that tribal governments – along with the
nation’s other local and state jurisdictions – must comply with. The new standards, which took more
than a decade to develop, require governments to provide a more accurate accounting of how they
manage resources and create financial statements that are clear to constituents. Nearly 84,000 local
jurisdictions must comply with the new standards. Yet tribes are unique. They are sovereign governments;
they have resources like land held in trust by the federal government; and tribal governments generate a
large percentage of their revenues through business activities. …Tribes are now expected to produce
government-wide financial statements: a Statement of Net Assets and a Statement of Activities. They will
include all balances and activities, except fiduciary activities, using accrual accounting. These basic
statements must also have fund financial statements, incorporating major and non-major funds. Michelle Tirado,
Vol. XVIII, No. 1 January 2002

Amusement Business
A Concert in New York. One of these one-nighters ranks among the top box scores of all time and easily
bests all concerts for 2001. With ticket prices ranging from $250 to $10,000, the Concert for New York
City grossed a staggering $12,269,405, with a capacity crowd of 14,651 at Madison Square Garden in
New York City. Organized by Paul McCartney, performers included Paul McCartney, the Who, Bon Jovi,
Bono and the Edge of U2, David Bowie, Elton John, Destiny’s Child, the Backstreet Boys, Mick Jagger and
Keith Richards, John Mellencamp, Eric Clapton, Buddy Guy, Billy Joel, James Taylor, Melissa Etheridge,
Macy Gray, Marc Anthony, Five for Fighting, the Goo Goo Dolls and the Jay-z. Vol. 113, No., 51, 12-24-01

Reaction Varies to Legoland’s Switch to 299-Day Schedule. Legoland California, Carlsbad, will go
from a daily year-round schedule to a 299-day operating calendar in 2002, closing Tuesdays and
Wednesdays from Jan. 15 through May 22, then again Sept 3 through Dec. 18. The decision was made
because of soft business mid-week, especially since the Sept. 11 terrorist attacks, said Bill Haviluk, park
president and general manager. About 16% of Legoland’s visitors fly to the park and that business has
dropped off dramatically, he said. Natasha Emmons, Vol. 114, No. 3, 1-21-02, p. 4
Atlantic City Insider
Comp Confusion. Dear ACE, Just exactly what determines comps? I have asked in three casinos; I even
made a case to a slot “expert” at Caesars, and he could not come up with a simple explanation. Is it how
much money you win or lose? How much time you send in one casino? Bettie Pilkington, Lansdowne, PA.
Atlantic City Expert (ACE): “Unfortunately, the recent trend in Atlantic City slot clubs has been to replace
simple cashback and comp formulas with complicated formulas that combine the player’s “action” – an
average amount the player puts through a machine, winning or losing – with the frequency of visits and
overall amount spent, to come up with the player’s “theoretical value” as a customer. It is difficult to come
up with a “simple explanation” for such a system. A few casinos still keep things simple when it comes to
the slot club and how you earn comps. The Sands is probably the best in this regard…sadly, with more
Atlantic City casinos owned by fewer companies, the Sands’ simple formula is definitely in the minority.”
Vol. 6, No. 3, January 2002

Casino Crime Digest
Card Room Manager Accused of Stealing $17,200. The former card room manager at the Cabazon
Indian casino in Indio, Calif., was indicted by a federal grand jury on charges of embezzling
$17,200…Rover Nichols, 46, actually may have stolen more than $500,000…Nichol’s brother, Mark, is
chief executive officer of the Cabazon Band of Mission Indians, which owns the casino. Vol. 8, No. 1, January 2002

Casino Journal
Happy Birthday, Atlantic City. New York’s big news may have crashed the party, but the gambling must
go on. In case you missed the news, Atlantic City’s gambling industry turned 25 years old last Nov. 2. On
that date, in 1976, New Jersey voters approved a constitutional amendment permitting casinos in the
seaside resort town, making it the second government-sanctioned gambling market in the country. Don’t
feel badly if you forgot to send flowers. Between industry wide hand wringing over the long-term impact
of Sept. 11 and the sobering specter of expanded gambling in New York state, there wasn’t much
celebrating on the Boardwalk. At the tender age of 25, Atlantic City’s casino business has been thrust into
a midlife crisis. …Finally, to put things in perspective, this is not the first time that Atlantic City has been
challenged. Despite the arrival of two wildly popular tribal casinos in Connecticut and slot machines at
Delaware pari-mutuel tracks, Atlantic City’s revenue has continued to grow, albeit more slowly than in the
past. Nancy Todd Tyner, Vol. 15, No. 1, January 2002, p. 12

The Worst of Times. The aftereffects of the Sept. 11 terrorist acts have already severely impacted Las
Vegas and the casino industry. The question now is ‘How long will this last.’ As the tragic events of Sept.
11 terrorist attacks against the United States were unfolding, Park Place Entertainment CEO Thomas
Gallagher and several of his executive team were driving back from a meeting in Reno. It was during that
drive that Gallagher and his team, realizing that the impact on tourism could be great, discussed their
options for the months ahead. …“The thought was, let’s keep our powder dry a little longer,” Gallagher
told the Reno Gazette-Journal of the decisions made during that trip. “The next few months are going to be
rugged.” Andy Holtmann, Vol. 15, No. 1, January 2002, p. 19-23

Drums along the Mohawk. Tribal casinos may be coming to New York state, but legal complexities and
vocal opposition mean it’s far from a done deal …The AGA does not get involved in legalization battles on
the state level and Fahrenkopf is taking a hands-off approach in New York, where he says the situation is
beset by “very divergent views.” “You’re also going to see some major companies talking to other tribes. I
suspect, however, there is going to be a lot of litigation and delay,” Fahrenkopf says. “It’s not something
you’re going to see right away. It’s not a done deal yet.” James Rutherford, Vol. 15, No. 1, January 2002, p. 28-31

Casino Player
Times Square of the West. The Fashion Show Mall, currently the largest retail destination on the Strip, is
about to get supersized. A $350 million expansion is underway which will add Nordstrom, Bloomingdale’s
Home Store and Lord & Taylor, Saks Fifth Avenue, and Macy’s. The size of the mall will double to 1.9
million square feet, creating what its developers are calling the “Times Square of the West.” A
600-foot-long canopy will float 150 feet above the plaza area along Las Vegas Boulevard, with a Grand
Staircase entrance topped with a 48-by-34-foot LED display screen that will show live broadcasts and
computer-generated graphics. Other additions will include a plaza of sidewalk cafes and bistros, as well as
a “Great Room” which will host events such as fashion shows on an elevated runway and stage.
Completion is scheduled for fall 2002. Vol. 14, No. 5, January 2002, p.20

Detroit Free Press
Players Can Bet Different Amounts at Same Machine. MotorCity Casino officials are expanding the
gaming center’s video slot offering without adding machines or sacrificing floor space. The second-oldest
Detroit casino is introducing two options. One allows players the ability to bet different denominations at
a single machine while the other allows players to bet as little as a penny a play. MotorCity is the first
casino in the Detroit market to adopt the new functions, which recently gained approval by the Michigan
Gaming Control Board in Lansing. MGM Grand Detroit, the city’s oldest casino, plans to introduce similar
games this year…Greektown Casino has no plans to add the gaming options… Lorene Yue, 1-5--02

Casino Ordinance Unconstitutional, Appeals Court Rules.          Traverse City, Mich. (AP) – The city of Detroit

violated the U. S. Constitution by giving two companies preferential treatment when issuing licenses
for casinos there, a federal appeals panel ruled Friday. …The Lac Vieux Desert Band of Lake Superior
Chippewa Indians filed suit challenging a city ordinance that determined how casino operators would be
chosen. 1-11-02

Casino Revenue Hits $1 Billion. Gamblers lost more than $1 billion at Detroit’s three casinos last year
for the first time ever, according to figures released Monday by the Michigan Gaming Control Board.
…“We’re looking at upwards of $1 billion in revenue and that means upwards of $88 million in
revenue to the city, which is extremely important when income from taxes is down because of the auto
industry layoffs,” David Littmann, chief economist at Comerica Inc., said Monday. “They are also a stable
source of employment to the city.” Lorene Yue, 1-15-02

Gaming Newsletter: Atlantic City-Colorado-Mississippi
Atlantic City gaming revenues were up 1.6% in November, compared to a 2.4% increase the year before.
Colorado revenues grew 7.4% in November. In 2000, revenues were 5.3% ahead of 1999’s results.
Mississippi revenues grew 3.5% in November. Last year’s growth was 4.4% over 1999’s results. Vol. 2, No. 10,
January 2002
Gaming Industry Weekly Report
IGT Doesn’t Own Casinos. IGT completed the acquisition of Anchor Gaming at the end of 2001.
…SLOT announced that they reached an agreement with the Pala Band of Mission Indians and Jerome
Turk for SLOT to surrender its portion of the management agreement for the Pala Casino in San Diego,
California. ...While many, including us, felt that the Pala contract was a big growth driver for SLOT, IGT
has a strict rule about owning or managing casinos. Many years ago, IGT actually owned casinos but felt
that it was a conflict of interest so they sold out. It is a pretty good assumption that SLOT’s Colorado
casinos are also being shopped around for sale.
…IGT announced that they ended the year with 34,000 EZ Pay units installed in 58 locations worldwide.
Vol. 10, Issue 1, 1-7-02

Riverboat Markets Up 20% in December. We had a wish for this New Year and that wish was for the
exceptionally strong performance from Atlantic City casinos in December to be repeated across the
country. If this week is any indication, our wish has been granted. This past week we learned that gaming
revenue rose 27.3% in Illinois, 26.1% in Iowa and a whopping 29.8% in Missouri in the last month of 2001.
A strong December across the country, excluding Las Vegas where we just hope for strong improvement
from last month, would accomplish several things. Most importantly, it would prove that the strong rally in
the stock prices of regional and diversified operators such as Isle of Capri, Hollywood Casino, Harrah’s and
Ameristar, are justified. Since higher gaming revenue means higher revenue participation income for slot
makers, it means their high valuations are also justified. The media attention which is being generated by
these exceptional monthly results also means that all the states across the country who are considering
expanding gaming or allowing new gambling venues have information which is very good for the
pro-gaming politicians. Vol. 10, Issue, 1-14-02

Gaming Stocks Become Safe Haven. Every time we think we have seen it all in the financial markets and
the gaming sector, something happens that astonishes us. As you all know, we were a little concerned that
a rally in the financial markets could cause some softness in gaming stocks as investors took big profits in
order to try to get a better return on beaten down issues such as technology issues …Early this past week,
we had a little bit of profit taking in casino stocks but all that changed on Wednesday. In all the years we
have been reporting on and investing in gaming stocks, we never thought we would see the day when
gaming stocks were looked on as safe havens. This past Wednesday, that exact thing happened. On
Wednesday, the DJIA plunged over 200 points as investors sold off technology stocks, consumer stocks
and just about everything which had been recovering early this year. Where did the money go? That
money went into casino and gaming supplier stocks. Twelve well-known gaming stocks either hit new
highs or jumped more than a point or both while the overall market was in the tank. Vol. 10, Issue 3, 1-21-02

Gaming Update Colorado Division of Gaming
Marketing Internet Gaming to Children. A few months ago I wrote of an ongoing concern involving
Internet wagering and the proliferation of online and “800” number sports books. I realize these are not
new phenomena and these operations are part of the varied technological offerings available. However,
these sites are not offering their services legally in the U. S., despite their claims. The Colorado Limited
Gaming Control Commission and the Attorney General have worked together to inform consumers of the
dangers of participating in these illegal forms of gambling. Now the two agencies have notified a number
of Denver radio stations of their concerns regarding the airing of advertisements promoting these gambling
sites. A letter dated December 17, 2001 explains why the online sites and 800 number sports books are
illegal and concludes with the following: “We encourage you to evaluate your policies in accepting and
running these advertisements promoting illegal activity in Colorado.” The regulated, legal gaming industry
in Colorado is faced with a myriad of restrictions and regulations, and it is not fair for an illegal industry to
be allowed to promote itself as though it is on par with established operations who face scrutiny on a daily
basis. Late last summer my family and I attended a college football game in Denver. As we left the
stadium, young women handing out promotional flyers touting an Internet sports book and casino
approached us. My two boys were particularly impressed with the pocket NFL schedules they were given,
and they wanted to check out the colorful van parked nearby where more promotional items were being
distributed to people of all ages. At the time I recognized a basic inequity. If any of the legitimate Colorado
casinos actively marketed to children at a public event, the criticism would be loud and sustained, but the
actions of this company were met with silence. The recent efforts by the Commission and the Attorney
General in addressing this situation have put an end to this silence, and they carry a message worthy of our
support. Tom Kitts, Vol. XI, Issue 1, January 2002

Indian Country Today
Cowlitz Recognition.     Longview, Wash. – After battling for years and suffering last-minute reversals, the Cowlitz

tribe has finally won federal recognition. Assistant Secretary of Indian Affairs Neal McCaleb announced
his approval of the positive “reconsidered final determination” on Jan. 3. The decision ends a
long-standing feud with the neighboring Quinault Indian Nation, which had been opposing their
recognition. …The dispute with the Quinaults has its origins in pre-European contact times. It was
intensified by the Treaty of Olympia signed in the 1850s that put these two tribes, along with four others, on
the same reservation, ostensibly to be governed by the Quinault. …The tribe reorganized along modern
lines in 1910, with elected officers and a board of directors. James May, 1-4-02

BIA Gives States More Time to Comment on Gaming Rule.                       – Tribal gaming on recently

acquired trust land is open for public debate again, in the latest reversal of a Clinton administration
decision. After signaling his intentions in early December, BIA chief Neal McCaleb has officially
extended the comment period on a flashpoint of controversy between tribes and state and local
governments. The proposed regulations address tribal gaming on trust land acquired in the last 14 years.
The Clinton administration initially closed the comment period in November 2000. …“Six comments were
received after Nov. 13, 2000,” McCaleb said. “Several of these comments raised substantive issues that
may result in modification of the proposed rule. The comment period is reopened to allow consideration of
the comments received after Nov. 13, 2000, and to allow additional time for comment on the proposed rule.
…McCaleb, as Assistant Secretary for Indian Affairs, now has the authority to approve gaming operations
on land taken into trust after October 1988, but most do so only after weighing the interests of a tribe versus
the impact on the local non-Indian community. The proposed rule would provide some guidelines for
making that determination. Brian Stockes, 1-6-02

Court of Appeals to Tigua: ‘Stay is vacated.’       El Paso, Texas - The Ysleta Del Sur Pueblo received bad news

on Jan. 17 from the U. S. 5th Circuit Court of Appeals. It came in the form of a three word ruling:
“Affirmed. Stay Vacated.” The ruling may temporarily end the Cinderella story of the poor tribe that made
good. Those three words have brought the economic future of the Tigua Tribe to a grinding halt as tribal
officials begin the bleak task of laying off nearly 800 workers at their Speaking Rock Casino. …The 800
employees will receive severance pay and full benefits for 60 days after they are laid off. Tribal officials
also told employees that they would continue to fight in court to keep their gaming operation open. Even
though they were told they would lose their jobs, casino employees gave the Tigua Tribal Council a
standing ovation in recognition of the fight to keep the casino open. Mary Pierpoint, 1-25-02
Indian Gaming
Ernie Stevens Takes the Helm at NIGA. Elected in 2001, Ernie is beginning has first term as the
organization’s leader. As chairman, my primary goal is to protect tribal sovereignty, and to ensure that
every tribal government has the opportunity to generate governmental revenue through gaming. The
Supreme Court and Congress both have recognized that this is part of the inherent sovereignty that tribes
retain as governments. Just as every state government has the ability to raise revenue through lotteries and
other forms of gaming to build their infrastructure and provide essential programs for their citizens, so do
tribal governments.
…In ten years, I hope to see that every tribe in the nation has the opportunity to raise revenue for their
communities through gaming. The benefits of gaming are already beginning to be seen, but in ten years,
we’ll see them in full stride. The benefits come in the form of improved infrastructure – roads, water,
communications systems, public safety, schools, hospitals – and added governmental programs for Indian
people. Once this is taken care of, gaming provides tribes with the capital needed to enable tribes to
diversify their economies in the form of other enterprises. Jennifer Hamor, Vol. 12, No. 1, January 2002, p. 12

International Casino Surveillance Network
Slot cheats get around and move around. Cheating casinos is a career for those who like to travel.
Cheats and their particular scam quickly burn out one location; they have to travel to find
opportunities and avoid detection. Whatever the current scam is, you can bet that if it hasn’t been
to your town yet, it is on the way.
Known Slot Cheats Believed to be Active in Zone 1. Information was received this date from
authorities in Zone 29 that the following individuals may be in Reno, NV area for the purpose of slot
cheating. They were recently arrested in the Bahamas for slot cheating. …along with others, were
arrested in New Jersey last year for manipulating WMS slot machines. 1-7-02

Slot Cheating Device Intercepted at Canadian Customs. Canadian Customs has intercepted and
seized a mailed package containing the device shown above in Edmonton, Alberta, CANADA. It was
claimed to be the component of a toy, however, there was a CD-rom and written instruction pamphlets
enclosed that were contrary to the claim and aroused suspicion. The information contained means and
methods for a variety of scams against ATMs, coin operated machines and slot machines to include this
device. The device was ordered online from the internet by a local Canadian resident from the former
hackershomepage, now hackertronics 1-31-02

International Gaming & Wagering Business
London Calling. Report advocating U. K. gambling reform spurs worldwide interest. Corporate players on
both sides of the Atlantic will be all ears come March when the British government is scheduled to formally
announce its response to a report advocating sweeping reform of the nation’s gambling laws. …In sum, the
report proposed deregulation on a massive scale. …Significantly, the report also advocates allowing
casinos to offer most forms of gambling under one roof – slots, tables, bingo and parimutuel and sports
betting – opening up Great Britain to gambling on the department-store model popular in the United states.
James Rutherford, Vol. 23, No. 1, January 2002, p. 1, 42-43

‘Monitor Studies Online Players. Six years beyond the birth of Internet gambling, researchers are
struggling to define the industry statistically. More than 90 percent of the estimated 250 to 300 companies
that operate Internet gambling services are privately held – most in offshore locations – so revenue numbers
aren’t as readily available as they are for land-based gambling industries. Nevertheless, research groups
such as Christiansen Capital Advisors, which estimates that online gambling expenditures will reach $10.7
billion by 2005, have been able to measure the industry as a whole based on the information available. That
said, one very important slice of the pie has remained a mystery: the consumer market. Who is gambling at
online casinos? Where are they coming from? How much are they spending? Which types of gambling do
they prefer? In July and August 2001, The River City Group sought answers to these questions by
surveying 2,900 players from 13 countries, who gamble online or offline, and published the results in a
288-page report called The River City Gambler Monitor.
…“…The major attraction for online players is Web sites that offer free games. In all, 28 percent of those
who gamble do so online for real money. …By far, casino sites have generated the highest level of
awareness among online gamblers. Fourteen of the top 20 most recognized Internet gambling sites are
online casinos. …Four features reveal a strong consumer demand for a very easy, fast, and hassle-free
online gaming experience: payments of winnings sent out very quickly; easy-to-follow instructions for
games or bets on the sites; no freeze-ups or down periods; and very fast and easy registration. …The most
important site feature overall was secure financial transactions; 78 percent of online gamblers consider this
absolutely necessary. Offering recognizable brand, though important, ranked 13th on the list. For the full
report, visit Mark Balestra, Vol. 23, No. 1, January 2002, p. 1, 16-17

Las Vegas Review-Journal
Casinos Tickled by Nickel Wins. Five-cent bet machine wins $1.7 billion in 12-month period,
Control Board says. It’s not a song, but if it were, Nevada casino executives would be whistling the tune all
the way to the bank. …“The nickel machines are very important to us,” said Pat Hutchins, the Tropicana’s
vice president of slot operations. “We’ve seen a decline in our quarter and dollar machines, with those
players migrating to the nickel machines.” Jeff Simpson, Gaming Wire, 1-5-02

Airlines Post December Passenger-Count Dips.          New York – Three of the nation’s airlines on Monday

reported double-digit declines in passengers during December vs. a year ago, but the data provided
further evidence the industry is experiencing gradual improvement since September’s lows. Compared
with last year, United Airlines’ passenger volume for the month declined by 18 percent to 8.22 billion
revenue passenger miles, a measure of the number of paying customers that travel one mile. Brad Foss, Associated
Press, 1-8-02

Las Vegas Sun
Hoffa Blocks Teamsters Organizing of LV Dealers. …Because of a handshake agreement between
Teamsters…and…Transport Workers Union – the union that launched an organizing drive aimed at Las
Vegas casino dealers a year ago - the Teamsters cannot organize the dealers. David Strow, 1-3-02

Pro-Reno Story Irks Las Vegas. Like a bolt of lightning, a Wall Street Journal story on Wednesday
sparked new flames in the longstanding rivalry for economic bragging rights between Northern and
Southern Nevada. Journal reporter Robert Gavin wrote that the Reno economy is coasting thanks to its
recent efforts to attract new, non-gaming businesses. In the meantime, Gavin wrote that Las Vegas’
tourist-dependent economy is getting battered in the recession and terrorist-caused tourist slowdown. Chris
Jones, 1-3-02

Nevada Calls for More Regulation of Indian Casinos.        Hartford, Conn. – Connecticut Attorney General

Richard Blumenthal, also speaking for Nevada and other states, is calling for more local input on decisions
involving gambling operations run by Indian tribes. …In the Dec. 28 letter to the NIGC, Blumenthal wrote
on behalf of Connecticut, Nebraska, Nevada and South Dakota. Associated Press, 1-3-02

Park Place to Offer Multi-Casino Card. Park Place Entertainment Corp. of Las Vegas is the latest
company to introduce a multi-casino players’ card, announcing this morning it would launch such a system
in Las Vegas on Jan. 8. David Strow, 1-3-02

Shareholders OK Takeover by CEO’s Company.           Black Hawk, Colo. – Shareholders of Black Hawk Gaming &

Development Co. on Friday approved a planned takeover of the company by an enterprise controlled by
Black Hawk’s chief executive officer [Jeffrey P. Jacobs]. Black Hawk Gaming will become a wholly
owned subsidiary of Gameco, which has agreed to pay $12 a share in cash for stock it doesn’t already own.
Associated Pres, 1-7-02

Detroit Casinos Use New Ad Campaign.            – The city’s three casinos are spending $30,000 on an

advertising campaign urging gamblers to “Play in the USA.” MGM Grand Detroit, MotorCity and
Greektown casinos decided last summer the time was right to join forces and keep their good times rolling.
Their combined revenues were up 35 percent through the first 11 months of 2001. The Detroit casinos
want “to spark confidence in the U. S. economy and to get people to support Michigan businesses and
workers,” Greektown Casino spokesman Roger Martin told the Detroit News for a story Tuesday. Associated
Press, 1-9-02

Iowa Casino Revenue Increases Despite Sluggish Economy.                        – Despite a sluggish state
                                                                   Des Moines, Iowa

economy, most Iowa casinos reported increased gambling profits between July and December. Gamblers
lost $472 million, up 8 percent compared with a year earlier, state records show. A combination of factors
bolstered the casino industry, including much warmer and drier winter weather than the year before and
lower heating bills that meant consumers had more spending money, said Jack Ketterer, Iowa Racing and
Gaming Commission administrator. …Eleven of 13 state-regulated casinos had increases in gross
gambling revenue over the last six months, the commission reported. The typical gambler in Iowa
left behind an average of $47.73 per visit. Associated Press, 1-11-02

Nevada Gaming Revenue Declines. Winnings by Nevada casinos dropped in November, the third
consecutive month of declines blamed on the terrorism in September. The main reason was an absence
of high rollers who like to play baccarat. The Gaming Control Board reported today casino win fell to
$721.4 million in November, down 7.4 percent from a year ago. …Frank Streshley, senior research analyst
for the board, said the baccarat win fell by 80.1 percent or $43.8 million. He said $113.8 million was
wagered on baccarat, the second lowest amount since November 1993. …Blackjack dropped by 11.8
percent, craps was up 21.8 percent, roulette fell 17.2 percent and sports books gained 36.1 percent. Slot
win…declined 4.4 percent. Cy Ryan and Richard N. Velotta, 1-11-02
Petition Proposed for Hiking Gaming Taxes.                    – Barry Michaels is following in the footsteps of
                                                      Carson City

state Sen. Joe Neal, D-Las Vegas, in an effort to boost taxes on the gaming industry. Michaels of Las Vegas
filed notice Friday with the secretary of state’s office that he will circulate an initiative petition to raise the
tax from the present 6.25 percent on gross revenue to 10.25 percent, with the added money going to
schools. Sun Capital Bureau, 1-14-02

Revenues up as More Missourians Gamble.               – More Missourians are gambling, and they are
                                                    St. Louis

spending a lot more money at the casinos, figures from the Missouri Gaming Commission show. The
monthly revenue report for the state agency that oversees gambling showed that admissions in December
were up 20 percent compared to December 2000, as 4.17 people visited gambling boats, compared to 3.48
million a year earlier. …Nearly $103.4 million was lost by gamblers at the state’s casinos in December, up
30 percent from $79.6 million a year ago. The average gambler lost $54.23. Associated Press, 1-14-02

Lottery, Pari-Mutuel & Casino Regulation
Arizona Tribe Passes Up Payments to Members in 2001. The Tohono O’odham Nation didn’t give its
members the $2,000-per-capita payment from casino revenues they had been scheduled to get in 2001.
Officials blame a poor economy and budget deficit for not giving the payout to the tribe’s approximately
24,000 members. The tribal government had issued the payments every year since 1997, when Tohono
O’odham voters passed a ballot proposition mandating the payments. Vol. 12, No. 50, 12-31-01

New Hampshire House Ways and Means Committee to Hear Four Gambling Bills. Gambling
proponents – keenly aware that their days of having a friend in the governor’s office are ending - see this
session as their last, best chance to expand gambling in the state. Gov. Jeanne Shaheen, who has supported
video slot machine plans, is likely to run for U. S. Senate, and six of the seven candidates hoping to replace
her oppose gambling. Vol. 13, No. 2, 1-14-02

Bill on Gambling Cheats Passes Washington State Senate. A bill aimed at cracking down on
gambling cheats has passed the Washington State Senate. State Sen. Margarita Prentice is sponsoring the
bill, which was recommended by the State Gambling Commission. It was prompted by large scale cheating
that has sprung up as legalized gambling increases in mini-casinos and tribal casinos, said Prentice,
D-Seattle. It would divide the crime of cheating into two separate crimes: First-degree cheating, a Class B
felony for cheaters who conspire with others or cheat while licensed by the Gambling Commission, and
second-degree cheating, a misdemeanor charge for garden-variety cheaters. Vol. 13, No. 3, 1-21-02

Michigan Gaming Law Newsletter
Cashless Greektown. Greektown Casino has announced that it hopes to sample new, cash optional slot
machines and, pending approval by the Michigan Gaming Control Board, may offer between 120 and 150
cashless slots by April 2002. …If the concept is popular with patrons, Greektown would like to change
about one-fifth of its machines over to the new cash optional slots by year end, which would be equivalent
to about 492. The Detroit News reported that Greektown will be using a cash optional system provided by
Bally Gaming as soon as Michigan regulators complete their compliance testing and the system receives
their approval. Vol. 8, Issue 1, 1-9-02
Former Lac Vieux Chairman Pleads Guilty to Felony Charges. The former chairman of the Lac
Vieux Desert Band of Lake Superior Chippewa Indians from 1994 to 1998, John McGeshick Sr., plead
guilty to a felon charge that arose from the alleged embezzlement and misappropriation of tribal funds. The
indictment alleged that during the four years Mr. McGeshick served as tribal leader more than $150,000 of
the tribe’s money disappeared. McGeshick entered a guilty plea to a felony charge and is scheduled to be
sentenced on Monday, May 13, 2002. Vol. 8, Issue, 1-24-02

National Gaming Summary
Vegas Casinos See Subdued New Year’s Party. Budget-conscious revelers replace high rollers at
celebration. Despite the threat of global terrorism, a lagging U. S. economy and an overall tightening of
John Q. Public’s pocketbook, the party still went on in Las Vegas this past New Year’s Eve. – albeit a much
more subdued one than usual. According to the Las Vegas Convention and visitors Authority, roughly
265,000 revelers counted down the New Year on the Las Vegas Strip, while another 15,000 celebrated at
downtown Las Vegas’ Fremont Street Experience. Those numbers are down about 7 percent from last
year, when just under 300,000 partiers packed Las Vegas. For the first time in recent memory, several Las
Vegas Strip hotels had rooms available on New Year’s Eve, even at discounted prices. 1-7-02

Gamers Socked with Lawsuits. New York to Mississippi, suits could slow gaming expansion. One
cautionary note that has been sounded against any speedy expansion of gaming with six new casinos in
New York has been the time operators can expect to spend in court before they can even start construction.
Threats of lawsuits have already shown up there, and, in the past week, legal developments that have
appeared from Mississippi to Texas and California may temporarily hinder gaming development in
general. 1-14-02

WMS Profits Fall as Casinos Avoid Its Games. Takeover target? Slot maker needs two years to fix
technology. Facing a loss of investor confidence, WMS Industries last week warned of disappointing
second fiscal quarter earnings and promised that it would take steps to avoid costly software glitches that
plagued the company last year. But such steps may be too late to save current management if, as one
prominent analyst has suggested, the company’s mistakes have made it a potential takeover target. …The
shortfall [earnings] stems from smaller-than-expected sales of the company’s gaming machines, as many
casinos were spooked by a series of software glitches that required costly downtime …The software
problems also caused regulators in some states to delay approval of the company’s newest games, leading
to postponed and cancelled orders. …WMS, whose stated goal is to become “full-service” supplier to the
gaming industry by offering reel-spinning slot machines, wide-area progressive games, poker games and
other games, won’t see the fruits of this strategy until fiscal 2004, instead of fiscal 2003 as previously
hoped for, CEO Brian Gamache said. 1-21-02

Governor Endorses Slots at Tracks. Gov. Bill Graves (Ken, which state?) supported a limited number
of slot machines at racetracks during his State of the State address, and slot proponents say they plan to
submit a draft bill by the end of January, according to a report last week in the Dodge City Daily Globe.

Native American Law Digest
Tulalip Tribes Seek $36 Million for Salmon Loss. The Tulalip Tribes [of Washington] are seeking $36
million for loss of treaty rights because of reduced salmon and steelhead runs over 45 years because of
dams of the Sultan River. Officials in Snohomish County, Everett and the Snohomish County Public
Utility District in Washington State have 60 days to respond to the claims. Vol. 12, No. 1, January 2002, p. 9

Nevada Gaming Newsletter
Clark County gaming revenues declined 6.1% in October. …The Strip declined 10.6% for the month;
Downtown Las Vegas declined 2.5%, Laughlin fell 4.3% and Boulder Strip was up 5.3%.
Washoe County’s revenues fell 2.3% in October, with Reno off 4.9%, Sparks down 3.4%, and North
Lake Tahoe gaining 5.0%. Vol. 16, No. 1, January 2002

Observer: Michael Pollock’s Gaming Industry Observer
Charter Flights Are Barely Blips on Transportation Charts. Air passengers and bus passengers have
something in common: The casino industry has been scrutinizing the cost-effectiveness of both markets,
and both markets are increasingly found wanting. As a result, air and bus travel continue to wane, which
means that regional markets such as Atlantic City continue to evolve into pure drive-in destinations. This
does not mean that a visitor base arriving by air is no longer an aspiration. Rather, it means that a new,
higher aspiration is taking hold: Casinos seek an affordable visitor’s base that would arrive by air. At
present, drive-in customers and overnight guests are at the top of the profitability heap. Casinos have
refined their marketing strategies to a sharper edge. Their direct-mail incentives tend to work more
effectively, thanks to a growing emphasis on MIS departments. Yes, those techno-folks have proven to be
a good return on investment, helping turn databases into effective marketing tools. One result of that
rifle-like efficiency is a long-term demise of shotgun marketing programs. Vol. 7, No. 1, 1-14-02

Press of Atlantic City
Finally Some Respect. Although the Atlantic City casino industry finished 2001 with the worst growth in
its history, it may have been the city’s finest year in at least one regard, according to Paul Rubeli. “We have
a respect in the investment world I’ve not seen in 20 years,” said the Aztar Corp. Chairman and CEO,
whose company owns Tropicana Casino and Resort. Rubeli, who has complained that Wall Street equity
analysts give Atlantic City short shrift, said the analysts finally are appreciating the city after seeing its
resilience last year. Joe Weinert, 1-6-02

Ray Koon’s Gaming/Gram
Mikohn Gets a Clue. The Board and Commission determined that the gaming device theme “CLUE”, as
submitted by Mikohn Gaming Corporation, Las Vegas, is suitable for use in Nevada gaming, with
placement restricted to nonrestricted locations only, excepting drug/grocery stores and restricted locations
that limit patrons to a minimum 21 years of age. The company’s attorney told the Board that their study
shows the game is appropriate for licensing in an adult gaming context. Siller responded, “I’m beginning to
question some of the things we’re hearing here, since these games were shown in the Christmas catalog
distributed by Toys R US. I’ve never seen the game advertised in any adult-type catalogs. Have any of
your studies ever shown a proposed theme would not be acceptable?” Response by UNLV professor who
conducted study, “Yes, on a number of occasions I have advised a client that I didn’t think I could be of help
to them.”
…The Board granted a withdrawal request by IGT, Reno, on its request for the determination of the
suitability of a gaming device theme. The Board examiner had recommended that the submitted theme is
prohibited. Vol. 16, No. 12, 12-31-01

Reno Gazette-Journal
Gaming Pioneer, Jack Douglass Dies. Nevada gaming pioneer Jack Douglass of Reno – whose industry
involvement included co-founding the Club Cal Nevada and developing the Comstock Hotel-Casino – died
Wednesday at his home. He was 91 years. … Douglass, who held the oldest active casino license in the
state for many years, served as chairman of the board of the Comstock until it closed in late-2000 and he
kept an office there after it was sold…he went to the office each day. …In a 1996 interview with the Reno
Gazette-Journal about his book, Douglass said: “Gaming has changed to the extent that it’s big money now
and it’s not the mom-and-pop operation it used to be. The competition today is corporate competition
mostly – big money.” That made it hard for smaller properties…to compete as the industry evolved and
significant capital investments became necessary to keep up with the latest slot machines or physical
enhancements. John Stearns, 1-18-02

Slots Manager
Beyond Vegas. Slot innovations look toward Latin America for gaming’s next growth frontier. Stan
Fulton and Randy Adams don’t have to prove much to anyone in gaming anymore. These guys have raised
the bar for the slot industry time and again. Fulton, former chairman of Anchor Gaming, is widely credited
with developing the first video slot and the first successful video poker machine. Adams designed the first
computer-driven slot machine and developed and patented the spinning-wheel bonus concept for Anchor
that led to one of the most successful slot machines ever –Wheel of Fortune. …But neither is the type to
pocket his money and go on permanent vacation. Instead, the two and their partners have embarked on a
venture to develop a string of entertainment centers, some with casinos, throughout Latin America. “We
both love the sense of accomplishment. We need this,” Adams said of the passion and drive required in
building new businesses. “With me, it was getting out from the pressures of running a public company.
Now I’m just having a lot of fun,” said Fulton, 71, who also owns the Sunland Park Racetrack and Casino
in New Mexico and is part owner of a Massachusetts racetrack. “I don’t look at it as risky. I look at it as a
land of opportunity.” Adams said he and Fulton have been highly aware of the domestic market’s
limitations. “We saw that there wasn’t a lot of meat left on the bones in North America and particularly the
United States,” said Adams. “This market is becoming very, very competitive.” Marian Green, January 2002

Strictly Slots
2002 Thoughts. From my perspective as a columnist for this magazine, I love when it’s time for the new
year contribution. Whether rounding up the old year or predicting the new, I get a chance to write about a
few things that, while not deserving of columns of their own, are definitely noteworthy for one reason or
another. The following addresses things I expect we’ll be seeing in 2002.
Beer Slots. When all this crazy theme business began, there was great concern about machines bearing
cartoon images that might attract children. The machines were dubbed “slots for tots.” Now there’s a new
issue of concern: call it “slots for sots.” After going from cartoons to game shows to sitcoms to rock stars
to board games to trivia, the latest theme is beer.
Get a Clue. I’m not talking about the new Mikohn slot (those themes again); I’m talking about the
angle-shooters who bring lawsuits over slot machines that beat them out of their money. There’s been a
rash of these “how-could-you” suits of late, the most recent brought in Michigan claiming that the Wheel of
Fortune bonus wheel “is not fair.” Of course it’s not fair. In strict mathematical terms, no gambling game
More Coinless. There’s no stopping this wave, so get ready to ride it. Or at least don’t be afraid of it. The
coinless systems are gaining in popularity because they really are convenient.
More Pennies. You can also expect to see more low-denomination machines showing up everywhere.
The casinos are raking it in on the multidenom multigames (which in-the-knowers now refer to as
“multimulties”). And why not? A nickel player firing 45-coin max bets is sending $2.25 a play through the
machine. A penny player betting max-coin on a Hundred Play video poker game is wager a whopping $5 a
Bumper Crop. Without question, 2002 will be the year of great gambling books for the machine-playing
Not So Juicy. One thing I’m afraid we’re destined to see in 2002 is an overall reduction in opportunities
for savvy players, both in video poker schedules and slot club returns. After several years of untethered
competition, I believe the casinos, as a whole, will finally begin pulling back. Don’t despair. There will
always be renegades who buck the trend, and we can always play there. Anthony Curtis, Vol. 4, No. 1, January 2002, p.16

Sun Herald (Biloxi, Mississippi)
Law Changing Jackpot Tax Kicks in Today.                           Jackson – The tax man has changed his demands on jackpot

winners in Mississippi. A new law that takes effect today requires that 3 percent be withheld for state taxes
anytime someone wins $1,200 or more at one of the state-regulated gambling halls. That’s a smaller bite
than the 5 percent the government had been taking from slot machine winnings…the new law eliminates
the possibility of refunds. Emily Wagster, Associated Press, 1-1-02

                                                           Ken Adams

                                              210 Marsh Avenue, Suite 103
                                                    Reno, NV 89509
                                           (775) 322-7722 Fax (775) 322-7806

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