Mike Ditka gets behind Champions Casino & Resort proposal

STICKNEY, Illinois -- (PRESS RELEASE) -- Just seven miles from downtown Chicago on I-55 at the gateway to Midway Airport, the owner-operator of Hawthorne Race Course is proposing an entertainment destination unlike any in the nation, in its unprecedented bid for Illinois' tenth online casino license.

Hawthorne's Board of Directors, a 100-year old family business, has partnered with Altium Development Group and Merit Management Group, both leaders in gaming, entertainment and retail development and management to dramatically expand the use of its 136-acre holdings between Cicero and Laramie Avenues to create the premiere regional entertainment destination. The location is a ready-made setting for the proposed casinos, resort and entertainment district, that could phase in casino operations within 180 days, generating nearly $200,000,0000 in immediate tax revenue. Additionally, the location would serve as a vital stop-gap to hundreds of millions of consumer gaming dollars spent in Hammond, Indiana, while directly servicing the highest density market in the state.

"Location, location, location" says Tim Carey, Hawthorne Race Course president and representative of the development partners. "The statute requires that the license benefit an economically depressed area while maximizing revenue for the state. Not only is the Village of Stickney and the surrounding area in desperate need of this type of economic impact, but we have the real estate and an existing facility to quickly develop an entire entertainment and retail park. We can be the first to market. And we can do so at the doorstep to Chicago without cannibalizing Illinois' existing casinos."

Named CHAMPIONS Casino & Resort, the proposed development will be an entertainment destination that showcases the renowned heritage and nostalgia of Chicago sports but with the comfortable luxury and complete amenity of modern entertainment facilities. Several high profile Chicago sports icons have joined discussions to support the development, most notably Coach Mike Ditka who will develop a restaurant and/or hotel on the property.

Physical development plans include:

- 40,000 sq. ft casino

- 1,150 slot positions

- 50 table games and poker room

- 300-room casino hotel, and conference center

- 140,000 sq. ft entertainment district

- 8-12 restaurants

- 8 movie theaters

- 25,000 sq. ft. bowling lounge

- 150,000 sq. ft. water park resort with 400 all-inclusive suites

- 4,800 seat outdoor subterranean amphitheater

Hawthorne anticipates as many as eight other applicants for the tenth license, but has been silently winning-over south suburban municipalities to support its bid. "Hammond, Indiana is the largest regional draw for gaming entertainment," says Joseph Canfora, CEO of Merit Management Group, formerly president of Empress and Horseshoe Casinos. "Over $720,000,000 is spent out of state every year for lack of a competitive casino alternative to service the south side of the Chicagoland area. The solution is not another casino close to the Indiana border, it's a casino closest to the market that spends this money. The Hawthorne development will not only serve as the most complete stop-gap for that lost tax revenue, but its sheer scope will create thousands of new jobs in Illinois—more than any other proposed site."

Current projections for job creation—many designated for union positions—within the casino are over 1,200 positions, with an additional 2,000 jobs per the water park and retail development. Because of CHAMPIONS ability to open within six months, it is estimated that 500 jobs will be created in 2009.

However, Hawthorne, Merit, Altium and their investment partners, are covering their bets so to speak by including top-line development of non-gaming entertainment. "The way that this venue succeeds is as an entertainment destination for the whole family. It will be a part of the Chicago community with specific appeals to the downtown and south suburb markets," adds Ed Pilarz, president of Altium. "But perhaps most importantly we have a 400,000 sq. ft. facility ready to go that will serve as catalyst for economic development along Cicero Avenue's Midway Airport Corridor. No other applicant for the 10th license can provide this, which means no other applicant can benefit the state as much as this development can, both in terms of tax revenue and jobs created to staff a bigger and more varied regional entertainment destination."

Though other applicants have proposed entertainment complex concepts, CHAMPIONS would be the first casino venue in the nation to additionally showcase live racing. "Hawthorne's proposal will have dramatic benefits for both the racing and casino industries," says Joseph Sinopoli, chairman of the Illinois Racing Board. "It will be great for Illinois horsemen and Illinois racing fans, and will provide tremendous revenues for the state. Hawthorne and its management have a long and exemplary record in Illinois racing."

"There are over 40,000 people employed by the agribusiness of Illinois horseracing," explains Carey. "This development would be a vital benefit to Illinois racing, and would certainly return Illinois to national prominence in racing. CHAMPIONS will be a complete sports and gaming entertainment destination like no other in the country. Not even Vegas has live racing alongside table and slots entertainment. Hawthorne Race Course is the oldest sports venue in the state, and our family has been a part of the grand tradition of Chicago sports for 100 years. This development would ensure the vitality of horseracing by exposing it to hundreds of thousands of new fans, and it would help ensure Chicago's national renown for the next 100 years."

Source: http://www.casinocitytimes.com/news/

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Indian gaming dominates 20 years later

WASHINGTON -- Twenty years after President Reagan signed the Indian Gaming Regulatory Act, tribal casinos rake in more money than those in Las Vegas and Atlantic City combined.

"I believe the expectation of almost every lawmaker then was that the future of Indian gaming was going to be in high stakes bingo," said Phil Hogen, chairman of the National Indian Gaming Commission.

Instead, about 90 percent of the $26 billion in Indian gaming revenue last year came from casinos. By comparison, Nevada casinos collected $12.8 billion and New Jersey casinos collected $4.9 billion.

Indian gaming employs more than 700,000 workers; more than half of them are not American Indians.

Frank Fahrenkopf, president of the American Gaming Association, said the act signed Oct. 17, 1988, by Reagan "changed the landscape" of the casino industry.

"I don't think anyone ever thought the result would be as dramatic as it has been," Fahrenkopf said.

Senate Majority Leader Harry Reid of Nevada, who played a key role in drafting the legislation, said the objective was to protect Nevada casinos from competition.

"Just the opposite has occurred," Reid said.

Northern Nevada has borne the brunt of an explosion of tribal casinos in California. Especially during winter, online casino in Carson City, Lake Tahoe and Reno see business plummet as customers from the once-fruitful market of Sacramento stay home to play at the slot machines and card tables offered by tribes.

On the other hand, some mainstream gaming companies such as Harrahs and Boyd Gaming Corp. have entered into lucrative management contracts with tribes.

Despite their success, Indian gaming officials still regard the legislation as a violation of tribal sovereignty "What other business in America has a federal law that tells it what it has to do?" said Ernie Stevens Jr., chairman of the National Indian Gaming Association.

Tribes gained the upper hand in 1987 when the U.S. Supreme Court ruled in California vs. Cabazon Band of Mission Indians that federally recognized tribes could operate gambling businesses without state regulation.

Fearful of being unable to control gambling within their borders, states turned to Congress for help and the result was the 1988 regulatory act.

In addition to Reid, one of the primary architects of the legislation was Sen. John McCain of Arizona, this year's Republican presidential nominee.

The Senate passed the bill by voice vote on Sept. 15, 1988, and 12 days later, the House approved it 323-84.

"It's one of the ugliest pieces of legislation there is. That old saying about legislation being like making sausage fits it," said Kevin Washburn, a law professor at the University of Arizona who served as general counsel of the National Indian Gaming Commission from 2000 to 2002.

For example, the law sought to encourage negotiations between tribes and states to establish regulations for Indian gaming.

But that has not happened. After giving the tribes a major victory with the Cabazon decision in 1987, the Supreme Court ruled in Seminole Tribe vs. Florida in 1996 that tribes could not sue states that refused to negotiate gaming compacts.

"The drafters just blew it. They should have caught that when they wrote the bill," Washburn said.

Stevens, the NIGA chairman, said every piece of legislation proposed by tribes now includes a provision attempting to "fix" the Seminole decision.

The law also hamstrings tribes by limiting management contracts with mainstream casino partners to seven years, Washburn said.

"That's unduly paternalistic," Washburn said. "The tribes have become capable business people at this point and if they want a 20-year contract, they should be able to get it."

Nevertheless, tribes remain fiercely opposed to any attempts by Congress to amend the regulatory act, which has allowed them to finally develop a wildly successful economic tool to help their people.

As Hogen, the chairman of the federal commission overseeing Indian gaming, said, "There were so many abject failures before."


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Atlantic City casinos likely had biggest decline ever in Sept

ATLANTIC CITY, New Jersey -- As reported by the Burlington Country Times: "If the president of the Borgata Hotel Casino and Spa is right, Atlantic City casinos experienced their biggest revenue decline in history in September.

"Revenue figures for September are due out on Friday from the state Casinos Control Commission, but Larry Mullin says he expects them to be down about 15 percent.

"Mullin made his comments at a City Council meeting in support of delaying a smoking ban for a year, due to the worsening economy.

"...Mullin estimated that if a smoking ban took effect next week, the city could experience a 25 to 30 percent decline going forward.

"...The council gave preliminary approval to the delay, but confusion reigned over whether the ban would still take effect next Wednesday, only to expire after a week..."

Source: http://www.casinocitytimes.com/

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