Casino strategists may spend billions on Mass. resorts

The political and judicial process has to be wearing on casino industry strategists who may spend billions on new Massachusetts resorts despite the continued growling of special interests that has created a lot of uncertainty.
And that’s before we get to the changes brought about by increasing competition that has transformed what used to be the “casino business” into a something-for-everyone colossus known as the gaming and entertainment industry. Kind of like a Walmart superstore business model with endless arrays of distractions (opportunities for spending) all under one roof.
Yes, the gaming and entertainment business is a very interesting place these days what with the biggest companies – all of them based in Las Vegas – weighing business opportunities in Japan, Macau, various domestic markets and even Las Vegas, the latter being a kind of ultimate destination for business from elsewhere because you can’t beat those Nevada tax rates.
Which is why it is easy to imagine the big thinkers within Wynn Resorts and MGM contemplating a thanks but no thanks reaction to a narrow approval of their resort plans in the November referendum.
What margin of approval do they want to see before giving their developments a final green light?
I have no idea, and my speculation about a possible withdrawal from the state is exactly that – speculation. The fact is so-called super spenders have learned a lot from unhappy experiences in other markets.
Illinois remains a wonderful example of a state that keeps sending mixed messages. I remember the Illinois casino executive who a few years ago told me, “I feel like I’m working behind enemy lines.” Anything less than a significant margin in November will tell Massachusetts gaming opponents they might want to try again in a couple years.
The good news for decision makers in MGM and Wynn is by the time of the November vote the opportunities for both companies in Japan may be much for visible than they are now. Beyond that there is whatever may be available in New York as the legal casino business takes root there.
The casino business is a very interesting place these days. New Jersey Gov. Chris Christie may still find a way to give Atlantic City’s beleaguered casinos a big boost. But considering recent events he may have to run for president, get elected and then appoint an attorney general who can put the Justice Department on a short leash when it comes to enforcing the federal prohibition that has kept Christie from bringing sports betting to Atlantic City’s 10 remaining casinos.
The Supreme Court refused without comment to hear the state’s appeal of federal court rulings that said 1992 congressional action effectively bars New Jersey from getting into the sports betting business.
Assuming Christie decides to go after the GOP nomination in 2016 there’s no telling how many casinos may be left in Atlantic City.
The Atlantic Club and Showboat are recent victims of the economic tailspin that has taken a big toll on the casino business since 2006 when serious competition began to materialize in neighboring states.
More competition is on the way even if Massachusetts voters and some people of influence are still not certain whether they want to keep moving forward or repeal the three-year-old action that may or may not see MGM and Wynn Resorts spend billions there.
When these two companies are in something of a New York state of mind, besides having Japan, Macau and other Asian possibilities to think about New Jersey and even Massachusetts may not occupy as much space in the thought processes of strategic thinkers as they once did.
It’s difficult to imagine major companies wanting to commit to any big spending in Atlantic City until it is apparent what may be possible near New York City and in northern New Jersey, which is just minutes away from the Big Apple.
And then there are always the ongoing efforts of Sheldon Adelson’s blitz attack that he hopes will torpedo Internet gaming activities for everyone.
This about Adelson: he thinks big.
The Las Vegas Sands CEO has himself some of the best influence his millions can buy as he pushes forward with the silly argument that the Internet gaming favored by some of his casino industry colleagues represents a kind of moral cancer besides opening doors to wannabe teen gamblers anxious to use their parents’ credit cards for nefarious Internet forays.
Common sense does not always have a lot to do with what happens.