Mon - Sat: 7:00 AM - 04:00 PM

Massachusetts High Court Hears Case for Casino Repeal Vote

Massachusetts Attorney General Martha Coakley appears by her choice to reject a ballot proposal to repeal the state’s 2011 casino legislation. (Image: AP Photo/Elise Amendola)

Opponents of casino gambling in Massachusetts have been war that is waging the expansion on every battlefront possible. They’ve had wins and losings across the continuing state, but they’ve always made their case. Now, they’re hoping that the court that is highest in Massachusetts gives them one final possiblity to place the matter before voters.

The Massachusetts Supreme Judicial Court heard arguments week that is last the concern of whether a measure to repeal the 2011 casino law can show up on the statewide ballot in November. The move would basically create a referendum on whether gambling enterprises could be built the one that could disrupt the process even if it absolutely was to ultimately fail.

State Believes Implied Contracts Would Be Violated By Repeal

That disruption was one for the main arguments made by attorneys for hawaii, including Attorney General Martha Coakley, who rejected the petition because she felt it absolutely was unconstitutional. According to Coakley, such a repeal would damage the ‘implied agreements’ between casino license applicants and the continuing state gambling commission. She argued that those contract rights would be illegally taken away without any settlement for the casino organizations.

Coakley made remarks at a morning meal forum in Boston that further explained her position.

‘It is clear that although the founders wanted the people to have options other than their elected representatives in the House and Senate they also limited those occasions by which they did, comprehending that there’s an orderly way in which business for the individuals does proceed,’ she stated.

Advocates Say State Can Change Direction

The question of just how the state could back out of simply agreements with casino companies was a heated topic during oral arguments. In particular, Justice Robert Cordy had concerns regarding how a repeal would affect the Penn nationwide Gaming slots parlor in Plainville, which has already been awarded a license.

‘So a five-year exclusive license that was already awarded following a thorough process outlined by the Legislature, at great price to the applicant, can simply be taken away having a big never mind?’ he asked Thomas O. Bean, a lawyer for people who want a repeal vote regarding the ballot.

‘Yes,’ Bean reacted.

‘They can do this without compensation…for all of the investments that were made at the encouragement of the Legislature?’ Cordy asked later in the questioning.

‘That is proper,’ Bean said.

While that may appear flippant, Bean’s argument had been that taxpayers had beenn’t obligated to compensate the firms if the continuing state changed its mind in regards to the future of casino gambling. He additionally stated that the casino groups have actually understood there had been a repeal effort was ongoing since the law was passed, and that the possibility was certainly one of the known risks they entailed once they started investing within the state.

Assistant Attorney General Peter Sacks outlined another possibility: that the gambling commission has the energy to just reject every application and not award any casino licenses.

‘But that doesn’t suggest the procurement procedure can be just canceled in the centre after everybody has spent a significant amount of cash,’ he included.

A final decision is anticipated from the court this summer, likely timed to guarantee the question can appear on the ballot if it’s approved. While a few of the questioning may have suggested doubt from the justices in regards to the repeal, even people who strongly believe it will not be on the ballot admit they’re no outcome that is certain.

‘ This is a question that I think is close,’ Coakley said. ‘I think the court could agree with us, but I don’t have tea leaves on this.’

Arizona Will Enable Account Wagering for Horse and Dog Racing

New legislation shall allow Arizona residents to bet on horse races by phone. (Image:

Whenever we talk about the illegal online Gambling Enforcement Act (UIGEA) or the Wire Act, we often behave as though these measures affect various types of interactive betting equally. But the reality of the situation is far different.

It’s always been true that horse and dog racing along with state lotteries have been exempt from numerous of the regulations that stifle other online and phone-based gaming enterprises, as a result of particular exceptions in these laws. And that means that while getting any other form of remote betting passed is a struggle at the very best of times, innovations happen in the horse and dog racing industries all the time.

Just week that is last Arizona Governor Janice Brewer signed a piece of legislation in purchase to allow advance deposit wagering (ADW) at horse and greyhound events across her state. This allows Arizonans to place bets from their houses, a large expansion for hawaii’s parimutuel wagering industry.

Previously, wagers for such races had been only taken at the tracks or at any of 62 certified off-track betting facilities across the state.

Bill Will Not Authorize Online Betting

But while the move will make it easier for gamblers in the continuing state to place bets on races any time they like, Governor Brewer made it clear that this isn’t an authorization of Internet gambling in virtually any method.

‘This bill is explicitly clear that Arizona is authorizing advanced deposit wagering and expressly prescribes that the bet should be placed over the telephone,’ Governor Brewer wrote in a page to Secretary of State Ken Bennett. ‘Senate Bill 1282 does not authorize and can’t be construed as authorizing Internet gaming.’

If that weren’t clear enough, section 10 of the bill clearly remarks that the intent of the bill isn’t to enable betting on the Web.

It was also important to Brewer that the bill did not affect standing agreements between the state while the Native tribes that are american run gambling operations there.

‘There is definitely an consensus that is unequivocal this bill does not impact nor cause any problem concerning the Arizona Tribal-State Gaming Compact,’ the governor wrote.

Bill Designed to Aid Racing Industry

The legislation ended up being spearheaded by Michael Racy, a lobbyist for Tuscon Greyhound Park. The idea had been to generate an influx of additional money into the race industry, a move that officials hope will keep racing that is live and well into the state.

‘[The bill] doesn’t authorize any new or form that is different of,’ Racy said. ‘It simply recognizes that the global world is changing on how that occurs.’

So that you can use the new ADW system, clients would need certainly to transfer cash right into a account that is special. When they have done so, they may then just use the funds in that account to wager on races place that is taking participating tracks.

Gambling by phone won’t take place immediately. Arizona’s Department of Racing will need to develop rules before the operational system can get live, and that will take the time. However, you will find hopes that racing fans could be placing bets from home as early as this summer.

While Governor Brewer did approve most of the bill, she exercised her line-item veto to hit one provision. That part of the bill would have appropriated $1.2 million towards the Arizona Breeders’ Award Fund and the County Fair Racing Fund.

Caesars Entertainment Restructures Mega-Debt

Caesars’ current financial obligation load outstrips the City of Detroit; the casino operator now plans to reapportion some of this.

It are the most gambling that is famous in the planet, but Caesars Entertainment’s debt levels currently outstrip those regarding the bankrupt town of Detroit.

Into the week that the business announced its first quarter profits, Caesars additionally announced that it will be restructuring its colossal debt, which stands at $23 billion, a gaming industry all-time high.

Caesars offer $1.75 billon in new debt to redeem its current maturities for 2015, and will sell 5 % of Caesars Entertainment Operating Company to investors that are undisclosed. Even though the restructuring won’t reduce any associated with the organization’s long-term debt, it shall eliminate more than $1 billion of payments due in 2015, while leaving its lenders and bond-holders somewhat in the lurch.

Caesars has already been facing a lawsuit from two unnamed bondholders, which claim the casino giant had breached its ‘fiduciary duties’ to its creditors.

Avoiding Bankruptcy

The move had been predicted early in the day week that is last Moody’s Investor Services analyst Peggy Holloway, whom stated the business could have to restructure in order to avoid bankruptcy. Holloway predicted Caesars would lose $1 billion in cash in 2010, and $2 billion year that is next.

‘ Recent asset sales by Caesars’ private equity sponsors are weakening the tactile hand that creditors will bring to the dining table in the casino organization’s inevitable restructuring,’ Holloway said. ‘ The transactions are reducing the asset base underlying the financial obligation, that may likely result in much deeper losses for lenders and bondholders upon a standard.’

However, Caesars chairman and CEO Gary Loveman said the strategy would ‘lay the foundation for both significant de-leveraging and value creation at Caesars Entertainment.

‘Upon conclusion of the credit facility amendment … Caesars need added headroom under its maintenance covenant, providing Caesars with additional stability to execute its business plan,’ he added. ‘If Caesars successfully lists its equity securities, this independent listing should help facilitate the eventual raising of equity also liability administration and debt decrease initiatives.’

When discussing news that is dubious utilize the biggest words possible. Well-played, Gary.

Debt Management

Caesars additionally said it was had by it sealed the deal on the purchase of Bally’s, The Cromwell and The Quad to Caesars Growth Partners, with Harrah’s New Orleans anticipated to follow in very early summer. The four properties were respected at $2.2 billion, with $185 million in assumed debt.

‘The transaction is made to ensure continued access for Caesars and each associated with the properties for sale to the Total Rewards network and other Caesars resources,’ Loveman said.

Caesars acquired most of its debt when it ended up being taken personal in 2008, after having a $30.1 billion acquisition by Apollo Global Management and TPG Capital. Then, as the recession ravaged the gaming industry, Caesars, having its 50 casinos across the usa, was struck the hardest. Posting its very first quarter results right after the restructuring announcement, Caesars said it lost $386.4 million in the quarter that ended March 31, a loss of $2.82 per share. In the corresponding quarter this past year the business lost $217.6 million, or $1.74 per share.

‘ Las vegas, nevada remained a bright spot with power in the hospitality groups, but regional business trends were unfavorably impacted by extreme weather and softness in visitation in the initial quarter,’ said Loveman.