Online casinos and poker

It should come as no surprise that the European Union is not pleased with Germany’s newly enacted ban on online gambling. The news service Reuters has reported that the EU has decided to take legal action against Germany, and will seek European Commission approval as early as next week. This latest round of legal action by the EU against Germany’s discriminatory online-gambling law would result in a final warning prior to advancing to the European Court of Justice.

The EU decision is consistent with its policy to enforce cross-border competition in services and is clearly not the first such action connected to online gambling. EU Internal Market Commissioner Charlie McCreevy has initiated proceedings against nearly a dozen EU countries over discriminatory policies and laws in their gaming or lottery sectors. As European countries fight for state monopoly control of the sector, online gambling has become a battleground issue in the much broader philosophical debate regarding the EU’s goals and authority. The ultimate resolution of online-gambling services in the EU may, in many ways, determine whether the EU evolves into an organizational arrangement of trading convenience or the authoritative determinant of trade policy.

The EU’s tangle with German online gambling policy is not new. Back in March 2007, EU Industry Commissioner Guenter Verheugen wrote to a number of German states that had imposed regional bans, giving them a month to revise their laws; the states were undeterred. The Austrian company Bwin was somewhat more successful in legally challenging the regional bans. In May, Bwin regained its Bavarian operating rights outright. In December, German courts ruled that Bwin’s license to operate, granted prior to German reunification, was valid in Eastern Germany.

Should the European Commission adopt the decision to pursue legal action against Germany, as expected, it will be applauded by the European Gaming and Betting Association (EGBA), which represents eight major European online firms and which earlier this month filed a complaint with the European Commission over the new German law.

PENNSYLVANIA — As reported by the Pocono Record: “Even as pressure grows on Louis DeNaples from a grand jury investigating perjury allegations, the Mount Airy owner’s machine keeps rolling along. For the second consecutive week, Mount Airy’s slots parlor posted strong returns.

“Wagers of $48.6 million at the casino far exceeded its closest rival, Mohegan Sun, which brought in $39.4 million. Last week’s performance followed a strong Christmas week when Mount Airy’s wagers topped $51 million.

“…Since it opened in October 2007, Mount Airy has produced the state’s highest payout, which this week exceeded 93 percent. That strategy, according to casino spokesperson Kevin Feeley, is a part of their plan to build a loyal customer base.

“…Speculation of impending charges against DeNaples continues after the arrest of Roman Catholic priest and close DeNaples friend Joseph F. Sica on perjury charges last week…”

MASHANTUCKET, Connecticut — (PRESS RELEASE) — The Mashantucket Pequot Tribal Nation today announced that John O’Brien, President of Foxwoods Resort Casino, has tendered his resignation, effective January 18, to pursue other interests.

Current Foxwoods Senior Vice President of Operations, Barry J. Cregan, 54, will serve as interim President of Foxwoods effective January 18. Mr. Cregan is currently responsible for overseeing the day-to-day operations of Foxwoods as well as managing the growth and expansion projects underway at Foxwoods. He is also heavily involved with the pre-opening of the MGM Grand at Foxwoods scheduled for May 2008, working closely with Gillian Murphy, General Manager of the MGM Grand at Foxwoods.

With more than 25 years of experience in the hotel and gaming industries, Mr. Cregan brings a wealth of industry knowledge and business expertise to his new position, as well as strong management skills needed to guide the continued growth and success of the enterprise. Prior to Foxwoods, Mr. Cregan held senior management roles at Tishman Hotels, Marriott International, and Starwood Hotels and Resorts. Mr. Cregan also served as President and COO of Trump Plaza Casino Hotel Atlantic City from 1994 to 1998. Mr. O’Brien and Mr. Cregan will work together to ensure an orderly transition.

Tribal Council Chairman Michael J. Thomas stated: “During his tenure, John made significant contributions to the success of Foxwoods, particularly during his nine years as CFO. We wish him well in his future endeavors. As we enter an exciting phase at Foxwoods, we are fortunate to have someone with Barry’s expertise and knowledge in the gaming and hospitality industry to fill the President position on an interim basis. Barry is a strong leader, focused on solid execution and delivering a positive customer experience.”

“Foxwoods is a strong organization with a great brand and great prospects for growth. I welcome this opportunity to work with the leadership team during this transition to continue to implement our strategy during an exciting period,” said Mr. Cregan.

The Mashantucket Pequot Tribal Nation will begin a search among internal and external candidates for a President to lead Foxwoods during the next phase of expansion and growth.

“It is truly an exciting period for all of us associated with Foxwoods, which includes the opening of the MGM Grand at Foxwoods destination resort in May. We will continue to ensure that leadership is committed to creating a positive environment for all of its employees and focused on providing our customers with memorable experiences,” said Patricia Irvin, CEO of the Mashantucket Pequot Tribal Nation. “During this transition, the leadership team will continue to passionately pursue our performance objectives and make every effort to execute on our key initiatives effectively. We will begin immediately to conduct a search to fill the President position at Foxwoods.”

“I’ve truly enjoyed serving as President of Foxwoods,” Mr. O’Brien said. “With a solid strategy and a strong management team in place, it’s the right time for me to move on to pursue other interests, including spending more time with my family. I wish Foxwoods and the Mashantucket Pequots continued success in the future.”

MICHIGAN — As reported by the Detroit Free Press: “As nearly every other industry in Michigan tightens its belt, casinos are booming.

“Detroit’s three casinos are making more than they did last year, and beautiful casino resorts are popping up all over the state.

“On the far west side, at Exit 1 off I-94 in New Buffalo, the Four Winds Casino & Resort opened in August, offering lodge-style construction, some pretty restaurants (check out the copper boulder in the Copper Rock Steakhouse) and a hotel and spa. It’s the first casino in the state and one of the few in the country to offer an all-electronic poker room, and it’s ideally placed for a stop on a trip down south or out west.

“The Little River Casino in Manistee (at the intersection of U.S.-31 and M-22) completed a massive renovation in the fall that includes a stone and water-themed exterior.

“…Farther north, the Grand Traverse Band of Ottawa and Chippewa Indians has been hard at work renovating nearly every facility it owns. Turtle Creek, 4 miles east of Traverse City in Williamsburg on M-72, is undergoing a huge transformation.

“The nearby Grand Traverse Resort & Spa finished its renovations in December 2006, so it’s an alternative place to stay…”

LAS VEGAS, Nevadaa — As reported by the Thoroughbed Times: “One Las Vegas race book has started accepting phone account wagers on Thoroughbred races.

“The race book at Wynn Las Vegas accepted its first out-of-state wager in December. While the state’s gaming control board and gaming commission approved such wagers in 2005, Wynn is the first Nevada race book to add interstate wagering. Wynn currently has just one out-of-state customer.

“…Wynn accepts only phone wagers as current Nevada law does not allow Internet account wagering.

“…Wynn can accept wagers from players in Kentucky, Maryland, Massachusetts, New Mexico, North Dakota, Ohio, and Wyoming…”

LAS VEGAS, Nevada — (PRESS RELEASE) — Forbes magazine has named MGM Mirage(NYSE: MGM) one of the “Best Managed Companies in America,” as part of its annual Forbes Platinum 400 list of top-performing large corporations. MGM Mirage was one of nine companies recognized in the “Hotels, Restaurants and Leisure” category. The company also made the list in 2005.

“The commitment to outstanding performance from each of our employees made this recognition possible,” said Terry Lanni, Chairman and CEO of MGM Mirage.

The Platinum 400 list includes both American and foreign corporations that have significant presence in the U.S. Contending companies came from a pool of nearly 1,100 corporations that have at least $1 billion in revenue in the most recent fiscal year, a stock price of at least $5 per share and positive equity.

To identify leaders from each industry category, Forbes ranked companies within their industry by many financial metrics, including growth in sales and earnings, leverage, stock market returns and earnings forecasts. From these ranks, each company received a composite score. Next, a financial analytics firm determined an overall score on each company for accounting and governance practices, financial condition and earnings quality. Finally, Forbes’ editors and writers examined the top-ranked companies in each industry and considered factors such as management ability, innovation and leadership.