November 2024 – Page 2 – OPINIAO-PUBLICA24-7

Iowa Casino Petitions State to Disqualify Resort Bid for Cedar Rapids

A casino in Iowa has petitioned the state gaming agency responsible for reviewing new project bids to dismiss a recent application on allegations that it’s seeking to operate slot machines, table games, and sports betting in a county where gambling isn’t authorized.

Iowa casino Cedar Rapids gaming license — Attorneys representing Riverside Casino & Golf Resort in Iowa are contesting whether the Iowa Racing and Gaming Commission should consider a casino scheme targeting Cedar Rapids. Developers there want to construct a $275 million casino called Cedar Crossing. (Image: *Casino.org*)

Attorneys representing the Riverside Casino & Golf Resort have petitioned the Iowa Racing and Gaming Commission (IRGC) to suspend its review of a casino proposal for Cedar Rapids. Riverside lawyers claim the Linn County gaming referendum conducted in 2021 didn’t authorize the commencement of gambling, but instead, simply extended gaming provisions from a 2013 referendum.

Since no slots, tables, or sportsbooks presently operate in Linn, the 2021 vote was allegedly much ado about nothing, Riverside challenges. The 2021 Linn County referendum, which supposedly permanently qualified the county for a casino should such a gaming venue be ratified by the IRGC, asked voters if they wish to approve the “operation of gambling games” … to “continue.”

As the IRGC is aware, there have never been licensed gambling games in Linn County. Accordingly, there were no games that the voters could authorize to ‘continue,’” the Riverside Casino petition for declaratory relief argued.

“A proposition requiring the approval or defeat of the continuation of gambling games is not a proposition that authorizes the origination of gambling games in the county,” the petition continued.

Riverside Seeks to Protect Customer Stream

Riverside Casino is located about 30 air miles south of Cedar Rapids where a group of local businesspeople want to build a $275 million resort casino called Cedar Crossing Casino. The Cedar Rapids Development Group has presented the plan in partnership with its charitable arm, the Linn County Gaming Association, and Peninsula Pacific Entertainment (P2E), a Los Angeles-based casino company with vast gaming experience.

Iowa lawmakers and gaming regulators have been unwilling to issue Linn County and Cedar Rapids a gaming concession for over a decade on concerns that a casino in Iowa’s second-largest city would poach play from current casinos. Riverside would be the closest, and therefore, most likely to be negatively impacted by Cedar Crossing.

An impact study commissioned by P2E determined that the Cedar Crossing gaming operation would increase Iowa’s overall annual gross gaming revenue (GGR) by $80 million. An estimated 26% of the casino’s projected GGR would come from revenue that would have otherwise been won at present gaming establishments.

Riverside would see the largest GGR drop, with a forecasted 11.6% decline in annual casino income.

Casino Plan

The Cedar Crossing Casino blueprint includes a casino floor with 700 slot machines, 22 table games, and a sportsbook. A 1,500-seat concert hall, several restaurants and bars, and a family-friendly STEM lab would complement the casino.

The project would support over 500 full-time jobs, the developers say, and the Linn County Gaming Association would collect 8% of the casino’s gross win. That money would be directed to charitable programs. Iowa’s commercial gambling law requires casinos to direct at least 3% of their gaming revenue to nonprofits.

Along with its petition for declaratory relief, Riverside’s ownership group, Elite Casino Resorts, which also operates Rhythm City Casino Resort in Davenport, is behind a political action committee called Iowans for Common Sense. The organization is opposed to casino expansion in Iowa and recently deployed a marketing campaign encouraging Iowans to oppose more casinos.

Cedar Rapids Mayor Tiffany O’Donnell says Iowa’s casinos have enjoyed record profits in recent years and are trying to “unfairly influence” the IRGC.

I think it’s extremely distasteful that you have hundreds of thousands of dollars being thrown in a campaign meant to circumvent the will of Linn County voters,” O’Donnell told The Gazette. “And I believe Linn County residents see it for what it is, and I believe that the Iowa Racing and Gaming Commission will see it for what it is as well.”

Many state lawmakers support implementing another moratorium on the IRGC issuing new gaming concessions.

Legislation to reimpose a casino licensing ban is expected to be introduced when the Iowa Legislature convenes in January. The IRGC is scheduled to vote on the Cedar Crossing Casino on February 6, meaning lawmakers will need to hurry to get a casino moratorium to Gov. Kim Reynolds’ (R) desk before the IRGC might sign off on Cedar Rapids being allocated a gaming permit.

If the IRGC grants Cedar Rapids Development Group a license before the bill’s enactment, the project would be grandfathered into the law.

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Cisco, MGM Reach Wide-Ranging Technology Agreement

Cisco (NASDAQ: CSCO) and MGM Resorts International (NYSE: MGM) today announced an expansive technology agreement under which the casino operator gains access to much of Cisco’s software portfolio, including tools aimed at enhancing customer experiences.

Aria Las Vegas Maryland attorney racial discrimination — Aria Resort & Casino on the Las Vegas Strip. Operator MGM Resorts International expanded its relationship with Cisco. (Image: Aria Resort & Casino)

The companies said the contract spans 5.5 years. Financial terms weren’t disclosed. The whole portfolio agreement (WPA) adds to the long-standing relationship between Cisco and MGM and could bolster the gaming operator’s efforts to enhance automation at its integrated resorts.

The agreement will enable the automation of MGM Resort’s network. This will pave the way for future location services and next-generation machine learning applications in the gaming and hospitality industry, unlocking new channels of guest engagement,” according to a statement.

The accord will also help MGM’s sustainability goals, including reduction of carbon emissions — something that’s long been a priority for the largest operator on the Las Vegas Strip.

Some Mention of Cybersecurity

In September 2023, a group of nefarious hackers temporarily crippled MGM’s domestic operations, resulting in a $100 million haircut to its 2023 third-quarter earnings and another $10 million in one-off expenses.

Following that event, some cybersecurity experts claimed MGM long had cyber vulnerabilities that may have enticed bad actors. The gaming company has prioritized shoring up its cyber defenses, but cybersecurity was only mentioned in passing in the press release detailing the Cisco deal.

“This includes cybersecurity, software defined networking, software defined-WAN, digital experience assurance, full-stack observability, data center and services,” according to the statement.

California-based Cisco is a major provider of cybersecurity products and services, including some that leverage artificial intelligence (AI) and cloud computing. Owing to the sheer expanse of the agreement, it’s possible that MGM will gain access to Cisco’s latest cybersecurity offerings, enabling the gaming company to bolster its defense and ward off future threats.

More Automation at MGM Could Be on the Way

One of the core themes mentioned in the Cisco/MGM statement is the idea of the expanded agreement providing the gaming company with access to technology that can improve its automation efforts, but the firms didn’t get into specifics.

On the consumer-facing side of the business, some casino operators currently use automation for tasks such as hotel check-in and dining and entertainment reservations. Across a variety of industries, including leisure and hospitality, automation and artificial intelligence (AI) has been tapped to bring efficiencies and reduced overhead to important though mundane back-office tasks.

Expanded use of AI specific to the gaming side of the business is likely to be embraced by casino operators going forward due to multiple factors. Sophisticated language learning models (LLMs) are already in use at some gaming properties, helping identify cheats and fraudulent play. Additionally, AI can provide operators perspective on slot players’ betting habits and what content they’re most responsive to.

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Pennsylvania Proposes Making it Easier for Self-Excluded Casino Gamblers to Return

The Pennsylvania Gaming Control Board (PGCB) has proposed easing the process for self-excluded persons to regain access to the 17 brick-and-mortar casinos in the commonwealth.

Pennsylvania self-exclusion PGCB casino — The Pennsylvania Gaming Control Board recommends automatically restoring a self-excluded casino gambler after their self-imposed ban expires. Currently, self-excluded casino patrons must apply for their access to be restored following the culmination of their predetermined prohibition. (Image: *Casino.org*)

In October, the PGCB proposed a rule change to the state’s casino self-exclusion program. The responsible gaming initiative allows individuals to ban themselves from the state’s casinos for a year, five years, or lifetime.

Under the PGCB’s current regulations, a person who bans themself from the state’s casinos for one or five years must apply with the state to have their access rights restored after their self-exclusion period culminates. An excluded person must file a request for removal from the list before legally entering a casino, as an enrollee will remain on the forbidden list indefinitely until such a request is submitted and accepted by the PGCB.

The October rulemaking proposal would lift the request for removal component and automatically re-enroll banned casino patrons as permissible people.

Controversial Motion

Critics say allowing banned casino patrons automatic re-entry following the expiration of their self-imposed bans could threaten the very purpose of the program. State gaming regulators say the motion is to standardize the PGCB’s self-exclusion programs, which, along with casino self-exclusion, include programs to deny one’s access to iGaming, video gaming terminals (VGTs), and/or fantasy sports.

The casino self-exclusion program remains the only self-exclusion program managed by the PGCB that requires a gambler to apply for reinstatement following the termination of their self-exclusion.

The PGCB says many self-excluded casino enrollees wrongly think their access to the state’s casinos is automatically restored upon the end of their self-imposed time. That leaves individuals susceptible to trespassing charges should they try and enter a casino before being re-enrolled as a permissible patron.

Many individuals erroneously believe that once the time period selected for casino self-exclusion has passed, they are once again allowed to engage in gaming activities in this Commonwealth’s retail casinos. This comes from either not reading the self-exclusion paperwork that they sign clearly enough or simply forgetting after several years that they must request removal. However, with these individuals remaining on the self-exclusion list, they are subject to trespass charges if caught in a licensed facility, and the confiscation of funds if they win while gaming,” the PGCB explained.

“This often results in individuals who incorrectly believed they were no longer on the self-exclusion list petitioning the board for the return of confiscated funds and winnings. Movement to a unified automatic removal process will eliminate confusion, reduce potential trespass actions, and eliminate many administrative proceedings within the board relating to requests for the return of confiscated funds,” the PGCB’s proposed rule adjustment continued.

Self-Exclusion Data

Pennsylvania, the third-richest commercial gaming state in terms of revenue after Nevada and New Jersey, has a robust self-exclusion program. The PGCB reports that its four self-exclusion options have a total of 33,953 enrollments, with casinos accounting for 23,242 of the enrollments.

Men account for nearly 65% of the self-excluded casino persons. Males are much more likely to trespass while on the excluded list, with men accounting for 6,418 of the 9,118 violations since the program began in December 2006.

People aged 55 and older are most likely to enroll, as the age group accounts for 8,657 enrollees. Whites are the most enrolled ethnicity with 16,017 members.

The PGCB says 5,136 people have self-excluded themselves for life. There is no way for a self-excluded person who chose the lifetime option to regain access to the brick-and-mortar gaming floors.

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Toronto Police Arrest Teen Suspect in Poker Pro Killing After ‘Wild West’ Shootout

Toronto police have charged a teenager with second-degree homicide in connection with the death of high-stakes online poker player Matthew Bergart.

Matthew Bergart, poker, Toronto, shootout, murder, suspect arrested — Matthew Bergart in a picture from a GoFundMe page set up to honor his legacy and help support his family. The online poker pro and musician was tragically killed during a “targeted home invasion” last April. (Image: GoFundMe)

The 16-year-old, who cannot be named because he’s a minor, was one of 23 people arrested during a “Wild West” shootout with police at a recording studio in the city on Monday night.

Home Invasion

Bergart, 30, was shot dead in the early hours of April 25, 2024, while visiting a friend in Toronto’s Etobicoke district in what police described as a targeted home invasion.

Three suspects wearing dark clothing and balaclavas broke into the house and demanded valuables before shooting Bergart multiple times.

The owner of the property, not the victim, was the intended target of the heist, and police said Bergart was simply in the wrong place at the wrong time.

“This is a situation where there was a bad decision to do a break and enter, and that was compounded and turned into a murder,” Det. Sgt. Brandon Price told reporters. “We were fortuitous that [the suspect] was caught up in this [shootout] so that he could be taken off of the streets.”

Dramatic Shootout

On Monday, plainclothes police officers were in the vicinity of the recording studio looking for a man wanted in connection with a robbery. That’s when a stolen car pulled into the parking lot of an adjacent FreshCo supermarket. Three men got out and began firing at the studio where a birthday party was in full swing, police said.

Revelers inside the studio came out guns blazing. More than 100 bullets were fired during the exchange, some striking an unmarked police vehicle. Police said it was a miracle no one was killed or injured.

Police boxed in the vehicle in the parking lot and apprehended one suspect after a foot chase. The other two got away. A further 21 people were arrested inside the recording studio. In all, eight were charged with multiple offenses, including unauthorized possession of a firearm.

Staff Sgt. Joe Matthews told reporters it was “deeply concerning” that many of those involved were teenagers.

“It should alarm all of us that the young people we took into custody are already heavily involved in serious activity and armed with high-powered firearms,” he said.

‘Dared to Dream’

The poker community remembered Bergart as a “fearless” player who took on some of the best in the world at the highest stakes. But he rarely played the live tournament scene, and little is known about him personally.

A GoFundMe page set up to support his family described him primarily as a musician who “dared to dream and create with a unique genius in both his music and his work.”

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Long Island Casino Environmental Review to Be Released

An environmental impact study regarding Las Vegas Sands’ proposal to build a casino hotel at Nassau Veterans Memorial Coliseum in Uniondale, NY could soon be released.

Hofstra University Nassau Coliseum Sands casino — The Nassau Coliseum. An environmental review of Las Vegas Sands’ proposed casino hotel there was approved by a legislative committee. (Image: *Newsday*)

On Wednesday, the Nassau County Legislative Rules Committee unanimously voted to release the environmental impact study, setting the stage for the public to review it. That move also paves the way for the full legislature to vote on the matter.

Should the legislature sign off on the environmental review, the next step would be a public hearing on the matter.

Sands is hoping to build a $6 billion casino hotel at the site of Nassau Coliseum in Uniondale. Despite some controversy surrounding that effort, the LVS bid is widely viewed as one of the most credible in the downstate casino competition. Nearly a dozen gaming companies and their partners are vying for the three New York City-area casino licenses the state has yet to award. That’s expected to happen late next year.

Long Island Casino Environmental Review is Important Step

While a single committee voting to advance the environmental impact study appears to be nothing more than a perfunctory legislative step, it’s meaningful because environmental concerns were among the reasons the casino proposal encountered legal difficulty.

Last year, New York State Supreme Court Justice Sarika Kapoor sided with Hofstra University in a suit brought by the college, noting Sands’ lease transfer agreement with Nassau County violated New York’s open meeting laws while adding that the State Environmental Quality Review Act (SEQRA) may have been glossed over in the original agreement.

The court ruled that Nassau County must give residents adequate opportunity to express concerns regarding how a large-scale project such as an integrated resort could affect the local environment.

The environmental review, which is currently ongoing, is vital to Sands’ Long Island casino ambitions on multiple fronts, not the least of which is that under New York law, the lease transfer on Nassau Coliseum between the county and the gaming company cannot be finalized until the review is complete.

Environmental Concerns

The Nassau County Legislative Rules Committee didn’t publicly detail the findings in the impact study, but those details could soon see the light of day. Whether or not that alters perceptions of the casino project remains to be seen.

To date, Sands’ Long Island casino pitch has resembled comparable efforts in other parts of the country. Supporters see the proposed gaming venue as an avenue for bolstering the local economy and generating more revenue for cash-strapped New York, while detractors see the gaming venue as having deleterious effects, including on the environment.

In September, an opposition group said the Sands casino could strain Long Island’s already limited drinking water supply, adding that the project could have other negative long-term environmental consequences.

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VEGAS MYTHS RE-BUSTED: Casinos Pump in Extra Oxygen

EDITOR’S NOTE: “Vegas Myths Busted” publishes new entries every Monday, with a bonus Flashback Friday edition. Today’s entry in our ongoing series originally ran on July 29, 2022.

One of the most enduring myths of Vegas is that casinos pump oxygen onto casino floors to keep players alert and increase their playing time. Could this be true or based partly in truth? And, if not, how did it start?

A group of oxygen tanks, above. A persistent Las Vegas myth has casinos pumping oxygen onto their floors to keep players alert and playing. (Image: American Society for Health Care Engineering)

“The rumor regarding the pumping of oxygen into casinos is not true,” Tony Cabot, distinguished fellow in gaming law at the University of Nevada, Las Vegas, told Casino.org.

And there are several reasons why.

For one, a typical Las Vegas casino contains 1 million cubic liters of air. To raise the oxygen level just a single percent would use more than 40,000 cubic meters of oxygen gas every day, an incredible expense, according to the Arizona heating, venting, and air conditioning company Parker & Sons.

More importantly, adding more oxygen would create a fire hazard, because air with greater than the normal 21% oxygen is more of an accelerant, making any open flame burn hotter, faster, and at lower temperatures. The oxygen itself isn’t flammable.

This would violate all casino fire insurance policies, and if a fire were to occur, the investigation would lead to a public relations nightmare.

“Casinos do a number of things to encourage people to continue to play,” Cabot said. “But pumping in oxygen is not one of them. It’s just one of those myths about Las Vegas that people like to spread.”

Author You Can’t Refuse

This myth springs from the fertile imagination of Mario Puzo, the late author of “The Godfather.”

In Puzo’s 1978 novel, “Fools Die,” casino owner Alfred Gronevelt places a regular 2 a.m. call to his building engineer “to pump pure oxygen through the casino air-conditioning system to keep the gamblers from getting sleepy.”

In the 45 years since the book’s publication, conspiracy theorists have circulated this fiction as fact. Even some legitimate media sources have joined in. One 2006 BBC article builds the myth up as true to make the point that “such psychological trickery would be banned in Britain.”

Casinos do fill the air with things to entice players to keep playing. These include loud music, pleasant scents, and freezing air-conditioning.

Look for “Vegas Myths Busted” every Monday on Casino.org. Visit VegasMythsBusted.com to read previously busted Vegas myths. Got a suggestion for a Vegas myth that needs busting? Email corey@casino.org.

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Louisiana Sports Betting Tax Hike Proposal Meets Quick Death

A proposal to raise Louisiana’s sports betting tax to 51% has quickly been scrapped due to pressure from the gaming industry.

Paysafe — The Caesars Superdome in New Orleans. A proposal to raise Louisiana’s sports betting tax has been tabled. (Image: *Stadia Magazine*)

On Monday, Rep. Roger Wilder III (R-Livingston Parrish) proposed House Bill 22 (HB 22), which sought to more than triple the state’s tax on sports wagering to 51% from 15%. If that legislation had passed and become law, it would have put Louisiana on par with New York and Vermont as the states with the highest levies on sports betting. On Wednesday, Wilder asked that the bill be deferred, acknowledging he needs to discuss the matter with the industry.

I have some learning to do,” Wilder said to local media. “I look forward to hearing the testimony from the industry, to gain a deeper insight of what the industry has with respect to their needs and their concerns on this issue.”

Wilder’s legislation, which had bipartisan support, was part of Gov. Jeff Landry’s (R) broader tax proposal aimed at boosting revenue while jumpstarting the state’s economy. The state representative said he will continue working on the proposal, but it’s all but dead for the current session, which expires on November 25.

Sports Betting Tax Hikes Not Going Over Well

Year to date, only Illinois has increased its sports betting taxes, moving to a progressive scheme under which the largest operators by market share pay more than their smaller counterparts.

That state’s decision sparked ample speculation regarding which cash-starved states could follow suit, and while there was plenty of discussion, Louisiana wasn’t projected to be one of the jurisdictions that would move to increase sports betting levies.

Predictably, the gaming industry isn’t keen on tax hikes, noting there is a middle ground at which they can thrive and states can generate needed revenue. Some executives have argued states need to be pragmatic when considering hiking gaming taxes because if those rates rise too far too fast, operators could be forced to pass higher costs onto bettors, which could dent handle and revenue.

Louisiana has an estimated handle of $3 billion, putting in the upper half of states with legalized sports wagering. The state generates nearly $55 million in annual receipts from regulated online sports betting.

Louisiana Sports Betting Tax Had Support, Faced Opposition

It may have caught the industry by surprise that Louisiana — a red state — was home to a sports betting tax hike proposal, but as noted above, Wilder’s bill had bipartisan support. It was also backed by both left- and right-leaning community groups concerned about adverse effects stemming from wagering proliferation.

Regarding industry reaction to Wilder’s proposal, an executive from Caesars Entertainment — one of the largest casino operators in the state — told KLAS News 12 that its investments in Louisiana factor in a 15% tax on sports betting, not 51%.

“You think about our Caesars Superdome sponsorship at a 51% tax rate, we wouldn’t have made that investment,” said Caesars New Orleans Samir Moad in the interview.

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Louisiana Pol Proposes Massive Sports Betting Tax Hike

Sports betting industry observers likely didn’t have Louisiana considering a major tax increase on their 2024 bingo cards, but it’s possible following newly filed legislation.

Louisiana sports betting casino gaming revenue — The Caesars Superdome in New Orleans. A Louisiana politician proposed a bill that would raise the state’s sports betting tax to 51%. (Image: Getty)

On Monday, Rep. Roger Wilder III (R-Livingston Parrish) proposed House Bill 22 (HB 22), which if enacted, would more than triple Louisiana’s sports betting tax to 51% from 15%.

There is hereby levied a fifty-one percent tax upon the net gaming 2 proceeds from sports wagering offered to consumers within this state pursuant to this 3 Title electronically through a website or mobile application,” according to text of the bill.

Mobile sports betting debuted in Louisiana in early 2022 and since then, that form of wagering has flourished in a state that was already the casino capital of the Southeast. Currently, the state ranks 15^th in handle since its legalization of sports wagering, though that position is likely to fall as more populous states such as Florida and North Carolina deliver more data.

Louisiana May Be Inspired by NY Sports Betting Tax

It’s not clear if Wilder drew inspiration from New York or Vermont in proposing HB 22, but those are the only other states with sports betting taxes of 51%.

While mobile sportsbook operators have been vocal in their criticism of New York’s tax scheme, gaming companies know the Empire State has leverage in the form of its status as the fourth-largest state in the country. That population heft isn’t an advantage Louisiana holds.

Wilder’s proposed legislation could ruffle the feathers of sportsbook operators in another way. If passed into law, it would repeal a previous statute that allows for promotional play, a primary customer acquisition tool in the industry.

“Repeals the provision authorizing promotional play and amends the definition of ‘net gaming proceeds,’” according to the bill.

The legislation isn’t applicable to Louisiana’s parimutuel industry, including bets made on horseracing and winning wagers.

Louisiana Tax Proposal Could Surprise Industry

Earlier this year, Illinois altered its sports wagering tax scheme, moving to a graduated levy system under which the largest operators, such as DraftKings and FanDuel, pay higher taxes than their smaller market share rivals.

That move resulted in those two gaming companies seeing their tax rates effectively double in that state and stoked speculation in the industry that other states could move to increase sports wagering taxes to boost revenue.

The prevailing wisdom was that if any states were to raise sports betting levies over the near term, it would be Michigan or New Jersey — states that lack political commonalities with Louisiana. That could also be a sign the industry, which loathes high taxes, could be caught off-guard by Wilder’s proposal.

At this time, it’s not clear if there’s momentum for Wilder’s bill, but it might have one thing on its side. Louisiana has a favorable sports betting geography in that none of the three states with which it shares borders currently permit mobile betting.

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Investor Jason Ader Jet Sets Around the World While Facing Lawsuits

Jason Ader, the founder of a blank-check company that attempted to bring the Okada Manila casino resort public, is gallivanting around the world while facing litigation, including from his mother, as clients of his hedge fund demand their cash be returned to them.

The CEO of Spring Owl Asset Management recently penned a letter to clients in which he detailed a turbulent period for the investment vehicle, noting the fund is attempting to liquidate its assets. In the letter, a copy of which was obtained by The New York Post, Ader mentioned 26 Capital Acquisition Corp. — the special purpose acquisition company (SPAC) that had a deal with Okada Manila — as well as GameCo, for creating issues with Spring Owl’s capital return efforts. GameCo produces gaming devices that combine elements of luck and skill. Ader was denied a Nevada gaming license in relation to that firm.

Both investments were structured as loans, and the circumstances surrounding each have contributed to the complexity of the wind-down,” wrote Ader in the client letter. “We anticipate that write-downs are likely.”

That implies the value of those investments will be significantly reduced, potentially creating losses for Spring Owl investors. 26 Capital was liquidated in September 2023 after the Delaware Court of Chancery ruled it couldn’t compel Okada Manila parent Universal Entertainment to move forward with a reverse merger agreement struck with the SPAC in October 2021.

Ader Living it Up While Clients Fret

While his mother attempts to extract $13 million from him due to a mortgage on a New York City townhouse he defaulted on, and as clients worry about the return of their funds, Ader, 56, has been spotted traversing the globe with his girlfriend.

The couple have recently been seen at Miami hotspots, and earlier this year, a trip to France included stops at the Summer Olympics in Paris and in the resort city of Nice. Ader’s now private Instagram account indicates soon after the couple lived it up in France, they traveled to the Bahamas.

The trips came after a court chided the financier for not paying child support to his second Julie — the mother of his four children — according to The Post.

Through his attorney, Ader told the publication that Spring Owl isn’t in the process of liquidating assets or winding down its business activities, and that claims of upheaval at the hedge fund are “false.” Still, clients are increasingly concerned about whether or not they’ll even get pennies on the dollar of their original investments, and the 2023 departures of two high-level executives at the hedge fund only amplify those worries.

It’s believed the aforementioned Delaware court ruling could saddle Spring Owl with significant losses because the firm was banking on bringing Okada Manila public in the US. That plan deteriorated last year as 26 Capital accused Universal Entertainment of intentionally delaying ratification of the merger accord, touching off a series of suits between the two parties.

The original deal valued the Philippines casino operator at $2.6 billion and could have created a windfall for some 26 Capital investors, including Ader.

Ader Has Extensive Gaming Ties

Ader’s ties to the gaming industry run deep. Before branching out on his own, he was a gaming and lodging analyst at Bear Stearns. Institutional Investor recognized him as the best among his peers for 10 straight years. He would later serve as a board member of Las Vegas Sands from 2009 to 2016.

In 2015, Ader orchestrated a takeover of online gaming firm Bwin.party by the company now known as Entain Plc. In 2018, Ader’s SpringOwl Asset Management took a stake in gaming software provider Playtech prior to that firm becoming an oft-mentioned takeover target.

Ader hoped that by taking Okada Manila public in the US, the company could become a player for additional casino licenses in this country, and in Japan.

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Golden Entertainment Hints at Real Estate Sales

Shares of Golden Entertainment (NASDAQ: GDEN) rose on Friday after executives hinted they’re examining avenues for monetizing the casino operator’s real estate assets.

The comments were made on a conference following the company’s third-quarter earnings report. Acknowledging that Golden shares trade at deeply discounted multiples relative to peers, CEO Blake Sartini said the operator won’t sit idle on the strategic review front. It appears as though the company would be a more likely seller of assets than buyer because management noted compelling acquisitions opportunities are hard to come by in the current environment.

CFO Charles Protell said Golden is evaluating the math pertaining to its real estate. Currently, the Las Vegas-based gaming company owns all of the real estate on which its eight casino hotels reside. Three of those venues are located in Las Vegas with another trio in Pahrump, Nevada and two more in Laughlin.

Protell did not comment on whether a sale of some or all of Golden’s property assets is imminent.

Golden Entertainment Real Estate Has Ample Value

Last month, speculation surfaced that Golden could consider monetizing some of its property holdings as an avenue for creating shareholder value. The earnings call was the first time executives publicly mentioned examination of its real estate.

On last night’s call, we believe GDEN was the most transparent it has ever been, and it does not intend to remain idle from a corporate strategic standpoint should shares remain near current valuation levels,” observed B. Riley analyst David Bain. “GDEN suggested a ‘high bar’ for acquisitions given its valuation and suggested it is in ‘active mode,’ reviewing the math around the value of its own real estate.”

The analyst noted that should Golden pursue an asset-light model and divest its land assets, the stock could “conservatively” be worth $42 a share — well above the roughly $32 area at which it trades today. By selling real estate, Golden would create long-term liabilities because it would have rent obligations via sale-leaseback deals, but it’d also significantly bolster its cash on hand position and that capital could be used for other value-generating opportunities.

In terms of property value, The Strat is the crown jewel in the Golden portfolio. Located near the Las Vegas Strip, that venue could fetch a significant percentage of Golden’s $871.25 million market capitalization in a potential sale.

Golden Stock Too Cheap

Bain argued that owing to Golden’s Nevada-only footprint and the state’s status as the marquee gaming market in the US, shares of the Arizona Charlie’s operator should not be so deeply discounted relative to peers.

The analyst said Nevada sets the stage for Golden to grow earnings before interest, taxes, depreciation, and amortization (EBITDA) and management is showing investors its sees value in the stock by repurchasing shares.

“NV assets that set the stage for intermediate to longer-term peer growth outperformance. Further, GDEN is poised for 15% q/q 4Q24E EBITDA growth and 7%+ y/y EBITDA growth next year (with upside),” he concluded. “Net leverage is ~2x (under-levered) and outside its over 3% dividend yield, GDEN increased its repurchase authorization $100M to $131M total, and made clear it will continue to buy back its stock.”

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