Five Most moments that are baffling the Gambling Universe 2015: Part One

Five Mo<span id="more-12329"></span>st moments that are baffling the Gambling Universe 2015: Part One

A judge having a penchant for history and Shakespeare may have decided that March 15, 2016 would have been a good deadline for Caesars to get lienholders up to speed with its bankruptcy restructuring plan.

Baffling moments in gambling, you say? What?

As top gambling journalists, it isn’t our job to be baffled; it’s our job to cut through the presssing problems with razor-sharp reviews and observations.

Sometimes, however, you just need certainly to throw your hands in the fresh atmosphere and go WTF? Understanding that, right here are the top five most baffling gambling moments of 2015.

CSIG Rhetoric

The Coalition to Stop online Gambling CSIG) is an expert at churning out baffling statements, and in 2015, these may have hit their zenith. The coalition subscribes to the ‘it’s-true-because-it-rhymes’ brand of rhetoric, and thus phrases such as ‘click your phone, lose your home’ as well as the variation that is slightly zingier your mouse, lose your house,’ went down gangbusters at anti-gambling cocktail parties in 2010.

Representative Jason Chaffetz’ (R- UT 3rd District) assertion that RAWA is a pro-states’ rights bill, despite all proof to the contrary, was pretty ‘out there’ in the bafflement stakes, we thought. And meanwhile, John Kindt, a professor at the University of Illinois Law School, was fond of quoting a scholarly research from 1999, the days of dial-up Internet, as proof that ‘Internet gambling may not be regulated.’

Finger on the pulse there, Professor.

However, the award for the most baffling CSIG statement of the year would go to a ‘news’ header on the company’s site which screamed ‘Online Gambling Hurts Farmers.’

The logic of why this demographic is specially at risk is lost on us, and we understand CSIG is not averse to resorting to your use of emotive language to make an intellectually dishonest point or two, but farmers? The correlation that is only could make had been that spades might be utilised by farmers to dig things, so there you go.

The Daily Fantasy Sports Scandal

The daily fantasy sports (DFS) scandal had been pretty odd when you think about it. DFS continued its unstoppable rise through the first nine months of the year, with the most effective two internet sites, FanDuel and DraftKings, securing billions of bucks in opportunities as the multibillion dollar industry started mulling international expansion and eventual world domination.

With all this on the line, you may have thought that someone at the two kingpin businesses would have remembered to prohibit their players from participating in games at rival sites.


DFS became thoroughly unglued by the end of September, when it emerged that a DraftKings employee had accidentally released player data prior to the week’s NFL games had begun. In the same week, this employee won $350,000 playing at FanDuel.

Accusations of ‘insider trading’ were maybe overblown, and the employee was eventually cleared of wrongdoing, but the public’s faith in DFS was shaken, and suddenly the industry ended up being attacks that are facing all fronts, from player legal actions to judicial investigations to denouncements from regulators and politicians.

Beware the Ides of March

That Caesars Entertainment’s debt appears at an industry that is unprecedented of around $20 billion ended up being a fact that baffled the Nevada Gaming Commission at a gathering to discuss its messy bankruptcy proceedings in 2010.

The Commission called the problem ’embarrassing,’ and suggested that the company refrain from ‘building any Ferris wheels for a while’ to chuckles from assembled people for the press.

‘Everyone throws the economy beneath the bus,’ snapped payment chairman Tony Alamo testily.

In searching for Chapter 11 proceedings for the main operating unit, Caesars happens to be accused by its second lien creditors of restructuring its assets in a means that unfairly prefers its controlling private equity backers, who had been the people that got Caesars in this mess into the first spot.

Faced with lawsuits and accusations of fraudulent behavior, Caesars devised a new restructuring plan. Now the business is charged with the job of getting its lower bondholders on board. The deadline with this is March 15 of next year, after which Caesars will lose control over its own bankruptcy proceedings.

Shakespeare scholars among you will recognize this date as the one known as ‘the Ides of March’ in the Roman calendar and the day that is fateful of Caesar’s assassination by his former supporter, Brutus.

Who’d have thought that a bankruptcy judge would have this type of sense that is wicked of?

There were numerous baffling moments in 2010, we’d to get this piece a two-parter, so come back tomorrow for more bewildering gambling landmark moments from 2015.

Five baffling that is most Gambling Moments of 2015, Part Two

Revel owner Glen Straub finished up 2015 saddled with the world’s biggest electric bill. (Image: Tom MacDonald/WHYY)

Welcome back to Part Two of our operate down of 2015’s most happenings that are baffling in which we ponder a number of the more mystifying occurrences associated with year inside and around the gaming universe.

Chukchansi Fees

In July, former Chukchansi tribal leader Tex McDonald accepted a plea discount and was sentenced to 485 times for false imprisonment after admitting to being the orchestrator of 1 of the most extremely idiotic moments in the history of the casino industry.

The previous October, he had lead an assault that is armed the Chukchansi Gold Casino, near Fresno, California.

McDonald had stormed the home with some 20 accomplices, giving customers operating for cover, and ordering security guards at gunpoint right into a protected area of the building. Guards were reportedly handcuffed and assaulted, but no casino customers had been hurt.

This it seems, was the culmination of a power that is bizarre between two rival Chukchansi factions vying for control of the casino. McDonald was running the casino from the nearby business park up until August 2014, each time a rival group, led by one Reggie Lewis, resulted in the evening and literally took the casino over.

While Lewis is excellent at surreptitiously taking over gaming properties, it appears his admin skills aren’t quite therefore hot, as he failed to register the accounts, which meant that the casino was facing a $16 million fine from the regulator and possible closure.

McDonald made a decision to take drastic action and charged into the casino with firearms drawn. We are not quite yes what their goal had been, but he’ll have plenty of time to think about it in the pokey.

Straub’s Strange Energy

Eccentric billionaire Glen Straub has been a lively and um, interesting source of activity this 12 months. The home magnate initially lost the auction to buy the revel that is distressed home in Atlantic City and immediately blasted the auction as ‘improper.’

Having suffered a bout that is bad of, Straub explained, he’d flown from New Jersey to their home in Florida to retrieve his medicine, a proven fact that so coincidentally took him out of the picture during the final crucial phase of the bidding process.

However, when the champion regarding the bid, Brookfield Asset Management, got wind of Revel’s astronomical power bill, a non-negotiable $36 million per year, it bailed on the offer anyway. Straub stepped in, picking up the $4.9 billion property for a song, at $82 million.

The idealistic designer initially said he wanted to reopen Revel not as being a casino, but as an ‘elite college’ where the globe’s brightest people could spend their days ruminating on solving global issues such as for example ‘famine, cancer and nuclear waste storage space.’

Once he previously his hands on the property, though, he decided that he’d probably simply reopen it as a casino after all, albeit it one devoted to ‘life expansion technology,’ whatever that is.

By of this year, it was none of these things april. What it had been, however, based on the Atlantic City Fire Department, had been a ’47-story fire danger,’ as Straub ended up being refusing to honor the contract utilizing the adjacent power plant and had been cut off.

A not enough flowing water through Revel’s pipes, and no electricity allowing firefighters access to the floors that are upper meant that a fire outbreak could be potentially catastrophic.

The apparently cursed casino property continues to be shuttered while Straub’s unpaid power bills run into the millions. Maybe he can’t read them while sitting in the dark.

Nov Macau: What Happened to the Gambling Fireball in 2015?

The fortunes of Macau were currently tumbling as 2015 started. The downturn actually started back in June 2014, when the gambling hub recorded the first-ever monthly dip in revenues since Stanley Ho’s casino monopoly ended in 2012, a move which had efficiently opened the Asian gambling region up to investment that is foreign.

However, no one could quite have anticipated numbers to fall so considerably, and consecutively, month-on-month, for the remainder and throughout 2015 year.

Macau’s casinos had been afflicted with the anti-corruption drive of Asia’s president Xi Jinping (center) in 2015, which largely impacted the Asian gambling mecca’s junket industry this present year. (Image: Adrian Bradshaw/EPA)

Exactly What happened?

Simply 8 weeks before the initial downturn, Macau had reported a record-breaking Q1 for 2014, with $12.6 billion in revenues. That was up 19.8 percent from the very first quarter of 2013. And 2014 was on course to beat the season prior, itself a year that is watershed and Forbes was calling Macau ‘one associated with world’s quickest growing economies.’ The enclave ended up being ingesting in just two months what Las Vegas scored in per year.

Macau had benefitted greatly from the explosion in Chinese tourism in the preceding years. A greater freedom of movement and a burgeoning new Chinese middle class had certainly contributed to the gambling boom, and, as the Chinese economy began slow, so did the flow of gamblers from the mainland.

VIP Junkets Hit the Skids

But Macau’s bread and butter had been Chinese VIP high rollers. With a fondness for high stakes baccarat, these whales’ trips were facilitated by Macau’s multibillion-dollar junket industry. In reality, the junkets accounted for many 60 percent of Macau’s revenues during the boom years.

Junket operators would work as middlemen, organizing trips and lending their clients large amounts of cash in order to control restrictions in the level of money that could be brought from the mainland. VIPs would then settle their debts on their return to Asia.

Lots of these VIPs were, in fact, corrupt Communist Party officials whose fortunes were based on kickbacks or embezzlement of public money. Corruption had reached epidemic proportions in China, and Beijing had had enough, vowing to track fraudulent officials ‘to the ends associated with earth.’

Fearing reprisals from Beijing, the VIPs began to steer clear of Macau, maneuvering to Manilla in the Philippines, or even to Vietnam’s Ho Tram Strip to get their kicks instead.

Unprecedented Crackdown

The drive that is anti-corruption squeezing Macau throughout the second 50 % of 2014. Too as scaring from the high rollers, Beijing had imposed restrictions on the usage of UnionPay, China’s only domestic bank card, which further stemmed the flow of middle-class money from the mainland.

Meanwhile, the introduction of a blanket smoking ban inside gambling enterprises neglected to improve matters.

But by early 2015, China had ramped it up a notch, initiating an ‘unprecedented crackdown’ in the junket industry, tightening regulatory controls and demanding more transparency through the junkets about their clients and the criminal history of their employees. By September, the junket industry was ‘broken,’ according to Rob Goldstein, LVS president

Brand New casino resorts, conceived throughout the boom time, still opened their doors this such as James Packer’s Studio City Macau, while Steve Wynn’s Wynn Palace Macau due to open in the middle of next year.

Regardless of the malaise that is general stingy table games allocations for new casinos from the Macau regulator which will be bowing to pressure from Beijing, Packer said he remained upbeat about the location’s long-term future, while conceding that Macau’s downturn was ‘worse than anyone expected.’

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