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					                         ADAMS REPORT
                          A Review of Current Gaming Literature
                                    Volume V, Issue 5
                                        May 2001

Editorial
Pride, Soul and a Casino. Reno, not unlike other “mature” gaming jurisdictions is
“economically challenged,” which unfortunately is not a federally protected category. In the past
25 years, lotteries, casino gambling, Indian gaming, race tracks, card rooms and state operated
VLCs, have expanded to every corner of the United States with the exception of Utah and
Hawaii. Reno‟s primary feeder markets had no legal gambling just a few years ago. Now,
Canada, Washington, Oregon and California all have, at least, lotteries, card rooms and some
form of casinos. The gaming revenues in each of those jurisdictions run in the billions of dollars.
And each of those dollars was at one time a potential dollar of revenue for Reno.
So Reno, like many other communities is trying to find a new identity. The pursuit is toward a
new economic model that will allow the community to continue to grow and prosper. But this
pursuit of a “new” model is the challenge, in particular for the downtown core. Like most
communities, except larger, older cities, such as San Francisco, Reno‟s downtown core has seen
the change from the civic and business center of the community in the pre-WW II era, to a one-
dimensional economy built on one industry or activity, in Reno‟s case casino gambling and
tourism.
In recent years, Reno has established a redevelopment district and made great strides toward
developing a more diverse downtown; the arts, special events, conventions and retail have
become a big part of the downtown economy. But the casinos are still the major taxpayers,
employers and economic drivers. The citizens of Reno struggle with the economic and social
place of casinos in their world, even though gambling has played an important role in Reno since
1931. It seems to be difficult to take pride in the importance of casinos in a community. What
the question then becomes: Can casinos be part of your soul or your town?
        Soul Searching: Does your hometown have a soul? If you can define the character of your town,
        maybe you can keep it intact. …Discover the civic wound that needs healing. All cities have
        problems, though they are often unacknowledged. While it‟s usually difficult and politically risky
        to draw attention to shortcomings, especially in a place that prides itself on being a city that
        “works,” ignoring them perpetuates a state of soullessness. Pythia Peay, Utne Reader, 6-5-01

Reno is not alone in its ambiguity toward gambling; ABC and CBS also have difficulty with
accepting gambling as a part of modern American life. Something about casino chips and high-
rollers is too sensitive for television executives it seems. And I didn‟t think there was anything
too sensitive for television.
        Networks Object to „High-Roller‟ Campaign. Two television networks have demanded changes in
        a Las Vegas TV advertising campaign because of the way they promoted gambling. Randy Snow,
        creative director for R & R Partners, Las Vegas, the advertising agency contracted by the Las
        Vegas Convention and Visitors Authority, said the agency complied with a change request form
        ABC, but scrapped a planned CBS buy. Snow said ABC objected to the use of “high-roller” as
        a generic term while CBS wanted script changes as well as removal of the LVCVA‟s new logo,
        which depicts five casino chips. …The controversy was first reported by the Wall Street Journal.
        Las Vegas Sun, 5-1-01


The ambiguity runs even deeper in the American psyche, regardless of the place of gambling in
an individual or a community‟s life. In every community that has in some way legalized
gambling, the local population enthusiastically supports it. There are Indian casinos in California,
Connecticut and Wisconsin, Minnesota that make hundreds of millions of dollars each, annually.
The gaming revenues in Mississippi, Illinois, New Jersey and other jurisdictions equal, if not
exceed Nevada‟s. And yet, there are still those that see gambling as an activity of the depraved,
lurking somewhere in the nether world of Dante.
        Sex, Drugs and Rock „n‟ Roll. Nevada took a major step toward legalizing online gambling this
        week when its legislature voted to let the Nevada Gaming Commission license casino to operate
        on the Web. It‟s unclear exactly when Internet gambling will become legal, but the expected
        move could translate into even bigger bucks for casino and a new outlet for those addicted to
        games, horse races, and lotteries. And it’s one more indication that the Internet’s best
        business models cater to human vices.
        Think of the hottest, most popular, and potentially lucrative aspects of the Web: The ability to
        buy Viagra. Napster. Of course, porn sites. And now, legal gambling. Who says there are no
        online business models that work? An undisputed moneymaker in the offline world, gambling is a
        business model that should work on the Internet, even if its appeal is rooted in base instincts.
        Jennifer Gilbert, Business 2.0, 6-13-01




Gambling is not a perfect activity, god‟s only answer to boredom. But, gambling is a pleasant,
entertaining and sometimes exciting activity, and a diversion from the stresses of modern life, for
most people. Yes, there is a small percentage of the population for which gambling is a problem,
an addiction. But the same can be said of alcohol, shopping, television, sports for spectators or
participants, the Internet, and even food. So let‟s all just relax and take a little pride in our
industry, its contribution to our community and in our community in general.



But, that is just my opinion.



Quicktakes: The month’s trends in a glance.
San Francisco Bay Area Layoffs Leave Popular Restaurants Hungry for Business. Last
year, diners had to book far in advance to get into the bay Area‟s top restaurants. But with more
than 14,000 layoffs in Silicon Valley this year, skimpier expense accounts and consumers
thinking twice about luxuries, that’s changed. These days, you can get in just about anyplace.
And often, during peak times. …Restaurants have a hair-trigger sensitivity to changes in the
economy, in part because restaurant spending is optional. You can always eat at home. But in
addition to the economy, restaurants are getting pinched by higher utility costs, and a recent
increase inn the minimum wage. About the only good news is hiring has gotten easier.
         …“I‟m getting 15 decent resumes for every job,” said Laurie Thomas, executive vice
         president of Nice Ventures, which manages Reed Hearon‟s three San Francisco
         restaurants.
…Diner Bryan Rutberg started to see a drop in San Francisco about four months ago. Last year,
when he was an investment banker, Rutberg ate out four to five nights a week. Now he‟s founded
his own start-up and he‟ down to twice a week, maybe less. More of it is personal dining, not
business meals.
        “Austerity is in,” Rutberg said. “Swankiness is out.”
 Sheila Himmel, San Jose Mercury News, Hotel Online, 5-9-01



Higher Energy Costs Expected to Sap Strip Revenues.           Las Vegas (AP) – The top 22 revenue

generating Strip casinos could each see a $3.2 million decline in cash flow this year because of
rising electricity and natural gas prices in Las Vegas, according to financial analysts. Such
locally based giants as Mandalay Resort Group, MGM Mirage and Station Casinos could take the
greatest hit because of their moneymaking dependence on Nevada hotel-casinos, said a report by
Wall Street investment firm Bear Stearns.

           “Of more concern for all Nevada operators is the potential impact to cash flows
           should visitation to Las Vegas soften during the second half of 2001 as a result of the
           moderating economy, the proliferation of Indian gaming in California, and the
           impact of higher energy costs (electrical, natural gas and gasoline) on the
           discretionary income of consumers, particularly in California and Nevada,” the
           report said. Las Vegas Sun, 5-16-01

Suppliers Soar to New Highs. The merry go round continued for gaming suppliers this past
week. The upward movement shows no signs of slowing down. While we all know that this has
been going on for over a year, this past week‟s momentum was fueled by the sudden realization
by the mainstream financial media that these stocks are hot. If you were watching CNBC this
past week, you was that Shuffle Master received a lot of attention. …It seemed like every day for
the last 5 trading days, there has been a segment on CNBC, Fox News, CNN FN, or some other
financial media source, which discussed the gaming sector. This is fueling the surge in supplier
stocks while creating some interest in casinos again. When you see the mainstream financial
media catching on and you add positive comments again from supplier companies and gaming
analysts, it is really difficult to keep a level head about all this. Common sense says that despite
the comments from the management at slot companies and other suppliers and the constant
raising of estimates from gaming analysts, not all suppliers will be winners in the future. [Also
see: California Tribes Win Another One, Gaming Industry Weekly Report, Vol. 9, Issue 21, 5-
21-01] Gaming Industry Weekly Report, Vol. 9, Issue 22, 5-28-01


Update
Slot Manufacturer Fixing Software Glitch. Jamming validators allowed gamblers to
accumulate credits. Slot machine manufacturer WMS Industries is fixing thousands of slot
machines to eliminate a software glitch that allows gamblers to rack up credits without paying for
them, state casino industry regulators said Tuesday. Jeff Simpson, lasvegfas.com Gaming Wire, Las Vegas Review-Journal, 5-
2-01


WMS Gaming Secures Licensing Rights to Survivor, the Top-Rated Primetime Television
Program, from CBS Consumer Products. Chicago & Hollywood, Calif. – Entertainment wire –May 4,
2001 – WMS Gaming Inc., a subsidiary of WMS Industries Inc., announced today that it has
secured the North American licensing rights to develop and market slot machines based on the hit
reality-based television series, Survivor™, from CBS Consumer Products, the licensing and
merchandising division of CBS Enterprises. …agreement whereby WMS will design and market
slot machines based on this branded entertainment property, which will be manufactured by IGT
and placed on IGT‟s MegaJackpots ™ wide-area, progressive-linked jackpot system. Press Release, 5-
4-01
Five Video Parlors Raided. Police close East Dallas sites; city targets 50 game rooms.
Undercover Dallas police detectives armed with search warrants and moving trucks seized
hundreds of video slot machines Tuesday in a crackdown that authorities say will extend to the
more than 50 video slot parlors in the city. …But the game-room owners say they are operating
legally under the state law that allows children‟s arcade games to award trinkets and stuffed
animals. Robert Tharp, The Dallas Morning News, 5-2-01

Central City Files $100 Million Lawsuit. It‟s understandable to have lost track of what round
this is, but the bell rang again Friday when casino owners and city officials in Central City filed a
$100 million lawsuit against their neighbors and nemeses down the hill in Black Hawk. The suit,
filed in U. S. District Court in Denver on Friday, alleges that gambling interests in Black Hawk
have formed a conspiracy with the sole intent of killing off the gambling economy of Central
City. Furthermore, it attacks the very existence of what the plaintiffs call large, “Las Vegas-
style” casinos in Black Hawk, which they say violate the spirit of the constitutional amendment
that, in 1990 allowed the gold-rush cities of Cripple Creek, Black Hawk and Central City to
operate limited-stakes gambling. Jim Hughes, Denver Post, 5-29-01
                        In the Philippines they impeach them, but in China they kill them.
China Executes Gambling Official.                 – A former Chinese provincial official was executed
                                               Beijing

on Monday in Wuhan, capital of central Hubei province for gambling away millions of dollars in
public funds, state media reported. South African Press Association, 5-29-01


Bits and Pieces from Indian Country
Pomo Casino Project Will Miss Deadline. The Dry Creek Pomo tribe won‟t meet a May 15
deadline to open a casino on its Alexander Valley reservation, but s a spokesman said Monday
the tribe hopes to have the $35 million gambling facility up and running by fall. …Last month,
the director of Davis‟ Gambling Control Commission said the deadline will probably be
extended. Steve Hart, The Press Democrat, 5-1-01

The State Won‟t Enforce a May 15 Deadline for Indian Tribes – including Sonoma
County‟s Dry Creek Pomos – to begin using slot machines on their reservations, according to the
head of Gov. Gray Davis‟ gambling commission. John Hensley, who chair the state Gambling
Control Commission, said the tribes will have at least another year to begin operating slot
machines allotted them in a May 2000 drawing. Steve Hart, The Press Democrat, 5-3-01

Oxnard Says No Dice to Casino Bid. Faced with threats of recall and cries of moral outrage,
the Oxnard City council brushed aside labor union support for a jobs-rich, Nevada-style casino
early Wednesday and killed a plan to bring Indian gambling to the city. Opponents said the
council‟s vote sends a message across California that city residents will rebel when landless tribes
try to stretch the intent of last year‟s Proposition 1A Indian gaming imitative and create new
urban reservations for casinos. Daryl Kelley, LA Times, 5-10-01

Indian Poll Says Idahoans Back Gaming.          Worley – A new poll of 1,200 Idahoans from across

the state shows that a “significant” majority support electronic gaming at Indian-run casino,
Coeur d‟Alene tribal gaming CEO David Matheson said Wednesday. …The most likely option
for the tribes now is to launch a statewide campaign to put the issue on the 2002 ballot. Julia Silverman,
The Spokesamn-Review.com, 5-10-01
Solving Gaming Dispute Now Easier. A law signed by Gov. Gary Locke last week gives most
of Washington‟s Indian tribes a new tool to settle gambling disputes with the state. But the
Spokane, Shoalwater Bay and Colville tribes [non-compacted tribes] were excluded because the
bill wouldn‟t have passed otherwise, sided the bill‟s author, Sen. Margarita Prentice, D-Seattle.
…The new law waives the state‟s immunity only for the purpose of resolving tribal gaming
disputes. Rob McDonald, The Spokesman-Review.com, 5-15-01

Tribal Leadership Fight Puts Casino on Hold. A fight over leadership of the Dry Creek
Pomo Indian tribe has stalled plans for a $35 million casino in Alexander Valley. “Right now I
don‟t know who is in charge of the tribe,” said Las Vegas developer Mark Advent, the Pomos‟
partner in the gaming project. “I don‟t think the tribe knows who is in charge of the tribe.”
Dissident members have challenged the tribe‟s leadership, moving to take power away from its
board of directors and install a separate committee to make decisions. Steve Hart, The Press Democrat, 5-19-01



Harrah’s Watch
Harrah‟s Casino Expansion a Big Boost for Metropolis, Ill.       Metropolis, Ill. – Players Island

Casino vice President and General Manager Mike Crider and Metropolis Mayor Beth Clanahan
rode a pair of steamrollers to mark the ceremonial groundbreaking Tuesday of the $42 million
Harrah‟s Metropolis expansion and riverfront redevelopment project. Darwin Campbell, The Paducah Sun, Ky.,
Knight Ridder/Tribune Business News, Hotel Online, 5-2-01


„Total Rewards‟ Credit Card Announced. Harrah‟s Entertainment Inc. of Las Vegas signed a
deal with credit card company MBNA Corp. to issue credit cards branded under its “Total
Rewards” players club program. The credit cards will be marketed to the 23 million members of
Harrah‟s Total Rewards database. Charges on the cards accumulate Total Rewards points, which
can then be redeemed for cash and comps at Harrah‟s properties across the country. Las Vegas Sun, 5-9-
01


Harrah‟s Entertainment to Sponsor IRL Northern Light Series Race at New
Superspeedway in Nashville. Las Vegas, May 24 /PRNewswire/ - Harrah‟s Entertainment announced today
it will be the title sponsor for the inaugural Indy Racing League Northern Light Series at
Nashville Superspeedway on July 21. …The race, which will be televised lived nationwide on
ESPN, is the fourth and final night race on the league‟s 13-race schedule. “Our sponsorship of
Harrah‟s Indy 200 broadens our growing participation in motorsports, whose fans demonstrate a
high brand loyalty to series sponsors,” said Gray Loveman, Harrah‟s Entertainment President and
Chief Operating Officer. Press Release, 5-24-01



No Comment
Robert Laxalt, award-winning author of 17 books, founder of the University of Nevada Press and
in alter years a University of Nevada, Reno Writer-in-Residence and journalism professor, died
during sleep early on the morning of March 23 at St. Mary‟s Hospital. He was 77 Years old. Greg
Bortoin, Nevada Silver & Blue, May/June 2001


Robert Laxalt, 1923-2001: An Appreciation. If you‟ve read any of Bob Laxalt‟s books, you
knew Bob Laxalt intimately, because he wrote about what he knew probably better than any other
writer of his time. He was Basque, he was Nevadan, and he understood our land the way no other
writer could….Nevada history professor James Hulse, who knew Bob Laxalt for more than 40
years, said Laxalt had an uncanny ability to bring the outdoors to life. The mountains and
sagebrush and the high desert and the rivers and the lakes were more than background to Laxalt.
…No, Bob. You were the one with the gift. You not only taught Basques how to be Basque,
you taught Nevadans how to be Nevadans. And oh, how you did write. You were a writer,
and this land was your home. John Trent, Nevada Silver & Blue, May/June 2001, p.4-6

“This is probably the worse economic calamity the state has ever seen.” David Marshall,
chief financial officer at Gregg Industries, a 400 person iron foundry in El Monte, Calif., after
regulators boosted energy rates by as much as 80 percent for some customers. Reno Gazette-Journal, 5-17-01




Literature
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
ANC‟s Increase Profits in „90s. Alaska Native Regional Corporations grew their revenue by
250 percent over the past decade, according to a report presented to the Alaska State Chamber of
Commerce recently. The 12 regional corporations generated $2 billion in 1999, up from $570 in
1990. …Profits swelled by 98 percent, and shareholder equity ballooned by 100 percent, the
report says. Vol. XVII, No. 5, May 2001, p. 21


Amusement Business
Carnivals Battling Proposed Ill. Law.                      Chicago – Carnivals in Illinois are crying foul over a

proposed law that would require traveling amusement ride companies operating in the state to
provide personal information on employees for the purpose of background checks. The data –
including name, date of birth and Social Security number – would be submitted to the appropriate
event committee prior to the carnival receiving the proper permit to play the date. …The fees
involved in the paperwork would be up to the community‟s discretion. But they could be as
much as $5000… Carnival owners maintain it‟s just another form of prejudicial profiling, with
authorities unfairly targeting a specific segment of the population – in this case carnival workers
– all in the name of protecting children from potential sex offenders. …Mallins (lobbyist hired by
the Outdoor Amusement Business Assn.) fears the worst for an industry that already has a
difficult time finding help in the available labor pool due to low unemployment rates throughout
the country. Don Muret, Vol. 113, No 19, 5-14-01, p. 1, 35

Dion Sails into New Waters; Vegas Show Could Gross $96 Mil a Year. The Celine Dion
production planned for a three-year, 600-show run beginning in 2003 at the new showroom at
Caesars Palace, Las Vegas, is being positioned as “a destination in and of itself” by the Vegas
partners and as “a new genre of live entertainment for an artist” by the promoter. Ticket prices
will probably start at $85 and peak at $150. Assuming the average tick price is $120 at 100%
capacity, 200 shows a year translates into a gross potential of $96 million annually or nearly $300
million for the first three-year commitment. Linda Deckard, Vol. 113, No. 21, 5-28-01, p.4


Atlantic City Insider
A. C. Video Poker 2001. The VP Warrior‟s annual ratings of the best and worst in Atlantic City
video poker. Atlantic City‟s casinos kept our VP Warrior on his toes for this year‟s look at the
city‟s video poker offerings. They added, moved and removed machines in the two weeks before
the deadline when I don my disguise and go from casino to casino checking for high-paying video
poker machines. …Three trends have developed since I began doing these annual reviews. First,
it‟s getting tougher and tougher to find high-paying games in quarters and, in some casinos, even
in higher denominations. …Second, the extreme ends of the Boardwalk have become video
poker wastelands. Both Showboat and the Atlantic City Hilton have a handful of good quarter
games, and the Hilton has a few good high-denomination games, but the rest of their machines
pay back about 97 percent at best. Finally, slot clubs are cutting benefits for video poker players.
Vol. 5, No. 9, May 2001




Cabazon Circle
Figures Prove Positive Impacts of Gaming. While Indian gaming accounts for only 10
percent of the gaming industry as a whole, tribes with gaming operations contribute as many
dollars to charitable causes as the other 90 percent of the industry. That is the preliminary finding
of a survey on charitable giving by the National Indian Gaming Association. …“This information
gives us more factual evidence of the positive impact of Indian gaming and the strength of our
cultural value in giving back to support our communities,” reported NIGCA Chairman Rick Hill.
Vol. X, Issue V, May 2001




Casino Crime Digest
Mob-Controlled Gambling Ring Raided in Canada. A recent raid of a high-tech illegal
gambling ring controlled by one of Canada‟s largest organized crime families netted 54 arrests.
Investigators from the Toronto police and Ontario Illegal Gambling Enforcement Unit joined
forces to infiltrate the Rizzuto crime syndicate, a Montreal-based criminal organization that
profited heavily from “sophisticated” illegal bookmaking operations that used the latest
technology. According to Casino Magazine, the police said the gambling ring raked in $200
million each year over the Internet, cellular phones, Palm Pilots, pagers, wireless devices and
storefronts. The group accepted bets on all maj9or North American sporting events including
professional hockey, football, basketball, horse racing and U. S. college sports. …“These things
show very graphically that illegal gambling is related directly to organized crime,” Sgt. Glenn
Hanna said. Vol. 7, No. 5, May 2001


Casino Player
New Bally‟s Sign Dominates Famous Intersection. Bally‟s Las Vegas has broken ground on
a new 15-story outdoor marquee, a unique three-dimensional image display designed to dominate
the famous intersection of Flamingo and the Strip. Combining state-of-the-art electronic
technology with traditional neon and lighting elements, the $10 million Bally‟s project will
display entertainment events and special messages in the highest resolution available on a series
of six monitors. The marquee was developed and is being installed by Young Electric Sign
Company. Vol.13, No. 9, May 2001, p.14
Sing for your Singapore Sling! Blanche is back at the Tropicana, serving songs with a twist.
Fans of Blanche Travis-Morro, the Tropicana‟s famed “Singing Bartender,” will be able to sing
her praises once again as she returns to the Tiffany Lounge, performed Wednesday, Friday and
Sunday… Blanche is a remarkably talented woman who has created a unique form of
entertainment, signing a repertoire of over 1,800 songs to a karaoke background while
simultaneously taking orders and serving cocktails. …Blanche had disappeared from the scene
for a while, due to a dispute with the local Culinary Union, who felt her non-union status didn‟t
qualify her to run the bar at the Tiffany Lounge – regardless of the crowds drawn to see her, or
her unusual status as an entertainer….the Union and the Tropicana have come to an amiable
resolution. Adam Fine, Vol. 13, No. 9, May 2001, pl. 46


Detroit Free Press
Casinos OK for Most Seniors. Few in metro area bet too much, findings say. When Detroit‟s
first casino opened nearly two years ago, advocates for seniors feared older people would be hit
especially hard by the pitfalls of gambling. …Now it seems the advocates‟ worries may have
been exaggerated. Statewide and national surveys of gambling habits show that seniors are the
least likely to suffer financial consequences of gambling. Logs from recent calls made to the
state‟s gambling hot line also suggest that people older than 65 are less vulnerable to the
destructive potential of gambling than younger people. For many of them, casinos are simply a
diversion. …At Greektown Casino, the seniors pushing the buttons on the banks of flashing
machines seemed indifferent to the concern. Pauline Ross, 86, of Rochester Hills said, “At least
it gets me the heck out of the house.” Julie Edgar, 5-14-01


Gaming Newsletter: Atlantic City-Colorado-Mississippi
Gaming is not Growing as Fast in 2001.
Atlantic City gaming revenues grew 0.9% in March. Last year revenues were 6.8% ahead of
1999‟s results. In April, revenues were down 2.9% compared to a 4.6% increase the year before.
Colorado revenues grew 11.9% in March. In 200, March revenues were 17.1% ahead of 1999‟s
results. April revenues in Colorado were 6.4% ahead. April 2000 was 20.0% higher than April
1999.
Mississippi revenues grew 0.5% in March. Last year‟s growth was 10.0% over 1999‟s results.
Vol. 3, No. 3, May 2oo1




Gaming Industry Weekly Report
A funny thing happened this past week. Gaming supplier stocks experienced extreme
volatility, with wild price swings, while casino stocks generated a strong upward climb. As of the
close Wednesday, casino stocks outperformed supplier stocks for the first time in nearly a year.
A combination of the interest rate cuts, a rebounding stock market and a lot media talk that the
economy may avoid a recession has led to the perception that tings will rebound in the seco0nd
half of the year. Vol. 9, Issue 19, 5-7-01

California Tribes Win Another One. Suppliers to the gaming industry received an early
Christmas present this past week as the California Gambling Control Commission extended the
deadline for tribal casinos to install and begin operating additional slot machines. A couple of
months ago, we told you that suppliers were facing a deadline of May 15th and on that date,
California Gold Rush could end for the. The California Gambling Control Commission did not
extent the date to any specific time, basically saying it was indefinite. The chairman of the
commission did say that they were looking at a time frame of a year. For Tribes, this means that
they have shown who is boss in California. The California Gambling Control Commission is
truly a sham, one that has no power and no control. …For the suppliers, mainly slot
manufacturers, this means the good times will last even longer. For Nevada casinos, mainly the
ones drawing off of the California market, this means even more reason to worry. As many of
you probably witnessed this past week, the remaining 3 laggards of supplier stocks had dramatic
gamins. WMS Industries, GameTech International and Mikohn Gaming were the 3 supplier
stocks who had not been keeping pace with the others. All 3 had significant percentage gains this
past week, leaving people like us who like to give you opportunities before they get discovered,
looking for others. Vol. 9, Issue 21, 5-21-01


Indian Country Today
Tobacco and Rum-Running. The federal government made more than $1 million auctioning
the property of a man convicted of running a multimillion-dollar alcohol and tobacco smuggling
ring that operated through the St. Regis Band of Mohawk Indians of New York reservation. On
April 24, the Internal Revenue Service Larry Miller‟s home in Las Vegas and three parcels of
land there for $1,077,000…. Miller…is serving a 17 ½ year sentence in federal prison and had to
forfeit as much as $79 million in personal assets. He was among more that two dozen people
convicted in connection with smuggling operation, which federal prosecutors said moved nearly
$700 million worth of tobacco and alcohol onto the Canadian black market between 1991 and
1997. The convicted smugglers also included several Mohawk businessmen, a former tribal chief
and a top tobacco executive. 5-9-01

Power Shift in Senate.      Washington – Moderate Sen. Jim Jeffords, I-Vt., may have handed Indian

country a sliver-lined opportunity to move forward with a little more ease than first thought with
the 107th Congress. The balance of power in the U. S. Senate has shifted as Jeffords jumped from
the Republican Party to become an Independent. This move gives the Democrats control of the
senate for the first time in seven years. This means the Democrats will now gain the majority
leadership positions and head all committees. For Indian country this means that the
chairmanship of the Senate Committee o Indian Affairs, held by Sen.. Ben Nighthorse Campbell,
R-Colo., goes to Senator Daniel Inouye, D-Hawaii. …“In terms of the Bush agenda, but
especially in terms of ideas and nominations coming from the Interior Department, what this
means is that the Democrats will have far greater control on what issues are heard, who is
confirmed and how legislation is changed to meet environmental and social concerns,” said
Christopher Stearns, Navajo attorney at Hobbs, Straus, Dean & Wilder. Brian Stockes, 5-30-01


International Casino Surveillance Network
Will Continue to Frequent and Probably Rob Casinos. Information has been received by
ICSN that Maghfoor Mansoor committed four armed robberies in Atlantic City, N. J. this past
weekend, including a car hijacking. According to an FBI Fugitive Task Force Detective, Brian
Dunaway, Mansoor is armed and dangerous and will continue to frequent, and probably rob
casinos. ...advised that Mansoor may be using phony-looking wigs and beards in an effort to
disguise himself. (Mansoor was killed subsequently in a shoot-out with the FBI) 5-10-01

Prison Escapee Known to Frequent Casinos & Gamble. Subject James D. Watson escaped
from the Kentucky State Prison on May 18th, 2001. He is suspect in a May 19th, 2001 bank
robbery in Kentucky. Watson is considered armed and dangerous. Watson frequents casinos and
loves gambling and guns. 5-24-01


International Gaming & Wagering Business
No Longer Dreamin‟. California casinos grow up. …“In the long run, it‟s going to be
devastating,” said Las Vegas-based political writer Jon Ralston, editor of The Ralston Report and
a columnist for the Las Vegas Sun newspaper. “It‟s going to take customers who have come here
repeatedly who now are not going to come here as often.” Not only will the growth of gaming
since last year‟s passage of Proposition 1A hurt Reno, Laughlin and downtown Las Vegas, but its
effects will be felt on the Strip, Ralston predicted, even though, “the Strip guys think they‟re
immune.” A bigger issue, according to Ralston, is what the loss of business could do to the
state‟s coffers. “The real concern is state gaming revenues. If you start losing gaming revenue,
it‟s going to be a serious problem.” …Another touchy issue relates to the impact of plans by the
Lytton Band of Pomo Indians of Sonoma County to turn a card club in San Pablo, near Oakland,
Calif., into a casino with up to 2,000 slot machines. Several California card clubs have sued the
landless tribe, which got federal approval through its request for the San Pablo site about 40 miles
south of its ancestral home. “It certainly appears the tribe is in a position to get a compact,”
Eadington (Professor William Eadington, UNR) said. If it does, it promises performance
numbers “at least as strong as Foxwoods casino,” he said. Vol. 22, No. 5, May 2001, p. 1, 14, 27

Steve Wynn to Address 15th Annual World Gaming Congress & Expo. Legendary casino
giant Steve Wynn will be a keynote speaker at the upcoming 15th Annual World Gaming
Congress & Expo (WGCE). WGCE, the world‟s largest and most successful international
gaming trade show, will be held Oct. 17-19 at the Sands Expo Center in Las Vegas. Wynn will
speak on the final day of the three-day event. “We are thrilled to have Steve Wynn addressing
the attendees of the WGCE. Steve is a true visionary and has built the future of gaming. The
match of the futuristic vision of Steve Wynn and the WGCE is a perfect fit,” Peter N. Havens,
executive vice president for GEM Communications, publications and trade shows. “Wynn‟s
appearance speaks volumes to the importance and seriousness of the WGC.” Vol. 22, No. 5, May 2001, p. 8


Las Vegas Business Press
Tourism Officials Wary of Gas Prices. The cost of leisure and travel is rising with electricity
rates and gasoline prices. Not the best conditions for a town such as Las Vegas, dependent on
leisure and travel spending. Following in the footsteps of the hotel-casino industry, of which
several properties last month added a surcharge to room rates to meet rising electricity costs,
several local cab companies have asked the Taxicab Authority to approve a “gas relief” surcharge
to counter rising fuel prices. David Hare, 5-10-01

Buyout Will Create Larger P. T.‟s Chain. With its purchase of the largest chain of slot pubs
in Nevada last week, Las Vegas-based PDS Financial Corp. hopes to transform itself from a
modest slot financing and refurbishing company to a significant competitor in the local gaming
market. PDS…last week bought P. T. LLC, the owner of 23 sports-themed bars in Southern
Nevada, a move company officials said would boost PDS‟s annual gross revenues by almost 50
percent, or $25 million a year. The pending acquisition…set to close by Sept. 1. Jeff Burbank, 5-11-01


Las Vegas Review-Journal
Indian Casinos too far from L. A. Area. The ongoing spread of Southern California tribal
casinos will have less of an impact on Las Vegas that previously expected, according to a newly
released report by the Wall Street investment banking firm of Merrill Lynch. The key reason:
The casinos of the San Diego-Palm Springs region are too far from the estimated 16 million
people who live in the greater Los Angeles area. …But report authors David Anders and Sal
DiPietro minimize the tribal gaming effect on the city and the three companies (Mandalay Resort,
Park Place and MGM Mirage), blaming any dip in business on rising energy and gas prices, and
job layoffs in the Golden State. Dave Berns, 5-15-01


Las Vegas Sun
NCAA Betting Ban Is Dealt a Setback.             – A bill that outlaws betting on college sports
                                           Washington

in Nevada took another hit Wednesday, a cheerful Sen. John Ensign, R-Nev., said. At a regular
closed-door meeting of Republican senators, most said they did not support a possible effort by
colleagues Sens. Sam Brownback, R-Kan., and John McCain, R-Ariz., to attach the bill as an
amendment to a broader-themed education bill now pending. Benjamin Grove, 5-10-01

Hotel-Casino to Host bingo Championship. Dion Entertainment Inc. of Surrey, British
Colombia, said it expects more than 2,000 to participate in its “Bingo Magic” event, scheduled
for Nov. 19-21. A minimum of $1 million will be awarded to the winner of the championship
game, and a total of $1.25 million in cash and prizes will be awarded during the tournament.
Dion has signed a multiyear contract to hold the event at the Venetian. 5-14-01

Brugnara Drops Threat to Sue for Gaming License. San Francisco businessman Luke
Brugnara, denied by Nevada gaming regulators in his efforts to re-open the Strip‟s Silver City
casino, is backing away from earlier threats to sue the Nevada Gaming Commission. …But now,
Brugnara says he won‟t move forward with a lawsuit. Instead, he said he will re-apply for a
Nevada gaming license early next year. “I don‟t want to be in an adverse situation out of the
gate,” Brugnara said. “I don‟t think I‟d achieve the goals I‟d want even if the lawsuit was
successful…(because), essentially, we would be adversaries. I would rather just try suck up my
pride a little bit and go through the process again and see if I can conform to their concerns. “I
am not going to let my emotions get involved in this process, and hopefully the outcome will be
more favorable next time.” David Strow, 5-16-01

Mikohn Chief Disputes Claims by Disgruntled Shareholders. Mikohn gaming Corp. of Las
Vegas has charted a course of narrowing the focus of its operations and trimming expenses to
become profitable. But a group of investors says the top management of the company shouldn‟t
be piloting that course for Mikohn, a Las Vegas-based casino supplier that specializes in the
distribution of branded slot machine games like Yahtzee and Battleship. David Thompson,
chairman, president and chief executive officer of Mikohn, explained at Thursday‟s annual
shareholders meeting how the company is recovering from 200, a year in which it lost $22.1
million. …But the company since last year began implementing cost-cutting measures to
improve its bottom line. He said the work force has been trimmed by attrition and consolidation
company wide by about 100 jobs to under 700 and that each company division has been directed
to develop its own expense reduction measures. A pair of shareholders who addressed the
meeting…had their own ideas about how the company could improve itself. Peter Lux, a New
Jersey shareholder…said he and the holders of about one-third of the company‟s shares have been
unhappy with the way management has run the company…Lux recommended that Thompson
step down as president and chief executive officer. He also wants the company to hire and
investment bank to develop strategies that would enhance shareholder value. …Lux and Skaff
are convinced that Mikohn‟s products are top-notch and the company‟s middle management is
doing a good job. But they feel Thompson and top executives are more concerned with their own
bank accounts than with the interests of the shareholders. Richard N. Velotta, 5-18-01

Nevada Regulators Changing Method of Tracking Slot Win. Nevada gaming regulators are
in the process of changing the way the state‟s casinos must track their slot winnings, a top official
with the sate Gaming Control Board said Thursday. …Rather than hold percentage, Gregory
Gale, chief of the boards audit division, said the new regulation will focus on using automatic
meters to verify gaming win. Electronic meters will be required to verify a slew of slot machine
figures, such as coin-in, payouts, bills in, had-paid jackpots and credits put on a machine by
electronic fund transfers. These meters will need to be read each day. David Strow, 5-18-01


Lottery, Pari-Mutuel & Casino Regulation
Boyd Gaming Buying Delta Downs in Louisiana. Delta Downs, a financially strapped horse
race track ion the Louisiana-Texas border, was sold Thursday to Boyd Gaming Corp. which
hopes to capitalize on a pending application to add slot machines at the facility. Boyd Gaming
said the company hopes t6o have regulatory approval for the casino by the end of the
summer…plans to spend #30 million to spruce up the track…announced the purchase price
between $115 million and $125 million. Vol. 12, No. 16, 4-23-01


Michigan Gaming Law Newsletter
Gaming Control Board Takes Firm Stance on Occupational Licensing Standards. At the
May 8, 2001 Michigan Control Board public meeting, Chairman Thomas Denomme stated that
the Board will take a firm stance on its interpretation of standards of eligibility to hold an
occupational license. The issue was discussed by the Board in connection with the appeal of an
occupational licensee denial involving a former employee of the MotorCity Casino. The Board
found that the licensee involved in the appeal was previously convicted of attempted larceny from
a building in 1990 (a misdemeanor) and failed to disclose the conviction. …Chairman Denomme
noted that if an individual does not meet the entire eligibility definition the Board will not grant
that person an occupational license to work in one of the Detroit casinos. …As a result of
Michigan‟s strict eligibility standard it is important for occupational licensees to understand the
need to disclose all offenses up from the Board. Vol. 7, Issue 17, 5-10-01

Michigan Gaming Control Board Release Detroit Casinos‟ April Revenue Figures. On
May 16, 2001, the Michigan Gaming Control Board released the April 2001 Total Adjusted Gross
Revenue figures for the three Detroit casino properties: MotorCity, $29,744,000; MGM Grand
Detroit Casino, $28,147,244; and Greektown Casino $20,203,624. The first quarter figures:
MotorCity, $117,365,069; MGM Grand Detroit, $115,680,233; and Greektown, $80,651,889. Vol.
7, Issue 18, 5-29-01




National Gaming Summary
Bellagio Achieves Record Profits, Expansion Discussed. „It has by no means reached its full
potential.‟ In its first-quarter earnings report, MGM-Mirage said its posh Bellagio resort on the
Las Vegas Strip achieved $93.5 million in cash fro the three months ending March 31. That‟s a
record for any Las Vegas gambling property, and analysts believe the Bellagio is the most
profitable casino in the world. …The recent cash flow figures for the Bellagio are part of a year-
long stretch that has seen the resort record $325.5 million in cash flow – a 20 percent return on
investment. 5-7-01, p. 11
Gambler Sues Casino for not Barring Hi m. A man who gambled away $175,000 aboard
Casino Aztar in Evansville, Indiana has sue the casino, alleging that casino officials violated
federal racketeering laws by enticing him to play even though they knew he was a compulsive
gambler. In what could be the first suit of its kind, David N. Williams of Evansville claims that
by sending him marketing materials through the mail, the casino committed acts of mail fraud.
…The suit alleges that a friend of Williams sent a letter in March 1998 to inform Aztar that
Williams had lost money through compulsive gambling. Aztar officials responded by sending a
letter to Williams, denying him entry to the casino because of “disturbing information” about his
“gaming habits.” The suit alleges that Aztar “owed Williams a duty of reasonable care to avoid
causing him injuries or harm.” The casino failed to do this by not meeting with him, revoking his
player tracking card or removing his name from mailing lists. 5-21-01, p. 7

AGA: Net Bets No Go – for Now. The American Gaming Association still won‟t automatically
support legislation to legalize Internet gambling, the Washington lobbying group‟s president said
last week. “The consensus of the AGA board of directors is that appropriate regulatory and law-
enforcement oversight does not presently exist…,” Frank Fahrenkopf said in a statement.
…While they were coming to a consensus to study legislation covering online casinos on a case-
by-case basis – meaning they don‟t actively oppose such laws in general – Nevada legislators
were moving toward probable passage by the time they adjourn next weeks. 5-28-01


Nevada Gaming Newsletter
February 2001 Results in Nevada are Mediocre. Clark County gaming revenue fell 7.7% in
February. The Strip fell 12.7% in February, compared to last year‟s 16.5% increase in February
200 over 1999. Downtown Las Vegas was up 2.5%…Laughlin declined 5.3%…Boulder Strip
increased 6.7% in February.
Washoe County‟s revenue fell 5.8% in February, with Reno off 7.0%, Sparks down 5.8%, and
North Lake Tahoe growing 1.7%. Vol. 15, No. 5, May 2001


Observer: Michael Pollock’s Gaming Industry Observer
Promotional Expenses Remain Expensive. One chart that you will never see in the pages of
this newsletter would be the ratio of cash and coupon complimentaries to Paul E. Rubeli‟s level
of frustration. Measuring the apoplexy of Aztar‟s chairman and CEO when it comes to cash
“giveaway” is not easy task. Rubeli has been hacking away for years at the underbrush of
giveaways, and for good reason. As Rubeli notes, “Atlantic City stands alone as a jurisdiction” in
the level of cash it gives back to customers, many of whom “would have come here anyway.”
Last year, the value of those complimentaries was about 8.7 percent of casino revenue… Rubeli
traces the industry‟s decline in profitability to the mid-to-late 19902 directly to increase
giveaways. …And Rubeli has vowed to continue pushing down the value of bus packages. The
good news for the industry in Atlantic City, though, is that the amount of money given to bus
passengers is at the lowest level since 1997. And marketing experts would agree that at least the
dollars are now spent more productively: The non-bus cash and coupon expense are being
targeted toward database customers in response to their level of play. The bus coin and coupon is
being handed out indiscriminately to anyone who can squeeze into a bus seat. Vol. 6, No. 8, 5-14-01, p. 1-2


Press of Atlantic City
Traveling Gambler/Author Finds A. C. a Dull Market. Steve Bourie, author of the annual
“American Casino Guide,” said casinos here have too few high-paying video poker machines, too
many multideck blackjack tables and too much sameness. …“You go to Las Vegas and in one
year it changes a lot. You walk down the Boardwalk and all there is are the same old T-shirt
shops,”…he said. Joe Weinert, 5-11-01

Mohegan Sun Recruiting Dealers in Atlantic City.            Egg harbor Township – Desperate for dealers as it

prepares to open a $1.1 billion expansion, the Mohegan Sun casino has stepped onto Atlantic
City‟s turf for help. The giant Uncasville, Con., casino is holding a two-day job fair at the
Sheraton Atlantic City West Hotel, hoping to find some of the 800 table-games employees
needed when its 115,000-square-foot Casino of the Sky addition opens in October …A nine-
person Mohegan team set up shop in the Sheraton, where applicants were interviewed and, in
some cases, offered jobs. “It‟s a better opportunity,” an eight-year Atlantic City dealer said after
leaving the interview room. He declined to give his name or employer. “They were very
friendly, very helpful. They respect everybody, not like in Atlantic City, where they care about
the customer and not the employees,” he said. Joe Weinert, 5-16-01


Reno Gazette-Journal
High Gas Prices Could Hurt Tourism. Gasoline prices may hit $3 per gallon this summer,
prompting concerns that northern Nevada could lose tourists and visitors‟ spending, officials from
Reno to Minden said Monday. The cost of gas already has exceeded $2 per gallon in parts of
California, delivering a one-two punch for residents there struggling with soaring energy costs
and the souring economy. Nevada gas retailer officials said Silver State customers also might pay
$3 a gallon by this summer. But for northern Nevada‟s tourism industry, the effect of gas prices
on California is most disturbing because that state supplied 51 percent of the Truckee Meadows‟
visitors in 19999, according to the Reno-Sparks Conveti0n & Visitors Authority. John Stearns, 5-8-01

Reid‟s Promotion a Coup for Nevada. Thank you from Nevada, Sen. Jeffords. Republicans
may be mourning the defection of the junior senator from Vermont, which ended their tenuous
hold on the U. S. Senate. But there is reason for joy in Nevada. With the Senate under the control
of the Democratic Party again, the Silver State will enjoy its highest profile ever as Sen. Harry
Reid is elevated to the position of majority whip, the second highest position in the party and a
key gatekeeper of the legislative process. Though there are no guarantees, the new position give
Reid added muscle in his battle to prevent the federal government from approving a nuclear waste
dump at Yucca Mountain and banning gambling on college sports. The sudden reversal of
fortunes was quite a coup for the senior senator from Nevada, who is credited with playing a key
role in convincing Jeffords to quit the Republican Party and become an independent, giving the
Democratic Party a 50-49-1 plurality and control of the Senate. Just three years after he only
narrowly won his bid for re-election, Reid has shown himself to be an effective national leader.
In the words of his colleague from Nevada, Sen. John Ensign, Reid “knows how to get things
done.” So, this is the perfect time to restore some civility to the national debate, to stop calling
people names and return to discussion of real issues. As No. 2 in the Senate, the gentlemanly
Reid may just be the man to lead the charge. Editorial, 5-29-01


Strictly Slots
Triple Lucky 7s. This new reel-spinner merges the multiple “7” paytable combinations of the
“Red, White & Blue”-style program with the multiplying wild symbol program of “Triple
Diamond.” Actually, the program of this slot is very similar to that of “Tabasco,” highlighted on
the previous page. It is a volatile program with low hit frequency and potential big-money wins.
…Games such as Triple Lucky 7s and Tabasco are basically modified versions of the reel-
spinners that have been IGT‟s most popular games for years. They are great dollar games,
designed for those who prefer the classic reel-spinning experience to the high-tech gadgetry and
constant low-level jackpots of the multilane video genre. The difference of the S-2000 line
compared to all of those classic games is, more than anything, in the aesthetics. …These games
prove that IGT, for all its new, high-profile video slots, still pays close attention to the style
of game that has been its bread and butter for years – the reel-spinning slot. Vol. 3, No. 5, May 2001, p.
56




Sun Herald
Casino Era Far from Over.       Biloxi – The first thing panelists did at the Southern Gaming Summit

Thursday morning was grouse about the title of their seminar, “End of an era: slow growth ahead
for gaming.” “I don‟t think it‟s the end of an era,” said Jay Osman, president of Biloxi-based
Osman Holding Co. “I think it‟s the change of an era.” …The panel of financial experts said that
the casino industry as a whole, including the Coast market, is more than holding its own in the
slowing economy. …Osman predicted that future Coast casinos will be in the $350 million to
$500 million range. Casinos that cost $200 million to build would probably be too small to
compete, he said. …In an earlier seminar Thursday, economic development officials said casinos
are the catalyst for economic prosperity in their communities. …Tunica County, once the poorest
in the nation, now bustles with infrastructure to support more development. “The gaming
industry has brought Tunica County a long, long way…I don‟t think the gaming industry gets
enough credit on a daily basis.” …Casinos have been the main reason tourism has increased from
10 million visitors to 32 million visitors in the last two decades, said Darienne Wilson, the
director of tourism for the Mississippi Development Authority. “Tourism isn‟t hard to figure
out,” said Wilson .You have to invite people, and you have to develop the product. In 1992 we
began to develop the product.” Joey Brunch, 5-11-01


                                                 Ken Adams

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

				
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