The Poarch Band of Creek Indians (PCI) was linked to a Bethlehem Sands purchase in May 2018.
Bethlehem Sands and Valley Forge Casino each received approval for Pennsylvania online casinos and poker sites, while Rivers Casino in Pittsburgh withdrew its application to have interactive gaming. The decision by Rivers Casino means Pennsylvania’s Gaming Control Board still has 3 interactive gaming licenses to hand out to other operators.
The Bethlehem Sands interactive gaming license application caused the chairman of the Pennsylvania Gambling Control Board to state for the record he had “no choice under the statute” but to consider the license, though David Barasch seemed reluctant to do so.
For that matter, the representative for Las Vegas Sands was apologetic for filing a license. The two men were not the only ones to consider the process noteable.
Many found the fact Las Vegas Sands, owner of Bethlehem Sands, was applying for a license to be ironic or even comical. Las Vegas Sands Corp chief executive Sheldon Adelson is the foremost opponent of online gambling in the United States, as he spent millions of dollars to fund the Coalition to Stop Interactive Gambling (CSIG) in 2014.
Bethlehem Sands Online Gambling Application
Michael Magazzu, the general counsel for Bethlehem Sands, sounded apologetic when he went before the Pennsylvania Gaming Control Board to apply for a license. The Sands did not present a plan for an online gambling site, but instead described why it was applying for a license in the first place.
Mr. Magazzu told the PGCB panel members, “We are only applying for the interactive gaming certificates because of the pending sale of the Sands Bethworks Gaming assets to PCI Gaming. If not for that pending acquisition, Sands Bethworks Gaming would not be applying for these interactive gaming certificates.”
Poarch Band of Creek Indians (PCI)
Las Vegas Sands Corp currently is in discussions to sell the Bethlehem Sands Resort & Casino to the Poarch Band of Creek Indians (PCI), a Native American tribe which has casino holdings in Alabama and Mississippi. The $1.3 billion deal includes all of Bethlehem Sands’ gaming operations, including the ability to launch an online gaming portal.
Now is the time for applicants to make a bid for an online gambling license. Applicants had 90 days to apply for a license after the July 13 filing date. If the window passes, then the PGCB will license other non-Pennsylvania gaming operators.
No Sale of Bethlehem Sands Is Immiment
The final sale of the casino is “not imminent” and PCI cannot apply while they do not own Bethlehem Sands. Had LVS not applied for a license, then while Las Vegas Sands and PCI negotiate the terms of the billion-dollar purchase, PCI would have lost the ability to have an online casino and card room.
Losing an online gambling license would mean the property would be worth less, thus driving down the price of Bethlehem Sands in the negotiation. Thus Las Vegas Sands has to apply for the same kind of gaming license that its owner has spent millions to ban — and likely will try to ban in the future.
David Barasch: “No Choice under the Statute”
As the precedings began, PGCB Chairman David Barasch alluded to the unconventional circumstances of the licensing hearing. In fact, Chairman Barasch also sounded defensive in his remarks, stating of the process, “It may be premature, but we have no choice under the statute but to take the testimony we’re taking today.”
Applying for a gaming license it does not want is an act of faith on the part of Las Vegas Sands. Maguzza told the Gaming Control Board the Sands would pay the $10 million licensing fee within 60 days of applying for the license, as Pennsylvania statutes require.
Maguzza said to the Control Board members that LVS knows it would forfeit that cash, if the deal between LVS and PCI falls through in the coming months. Despite that, LVS is willing to take the risk to complete the $1.3 billion deal.
PCI’s Interactive Gaming Software
The Poarch Band of Creek Indians is not at present negotiating with interactive gaming software providers to support the Bethlehem Sands Online Casino and Bethlehem Sands poker site. PCI is more concerned with buying Pennsylvania’s highest-revenue land-based casino. If it buys Bethlehem Sands, then PCI would be able to open a land-based sportsbook and offer a single-state live in-play sports betting app.
PCI agreed with the Office of Enforcement Counsel that it would need to meet 22 conditions in order to receive a gaming license in Pennsylvania. Given the restrictive nature of gambling in Alabama, one has to assume the Poarch Band would meet all 22 conditions. PCI also has collected gaming licenses in other US states, most notably Mississippi.
Boyd Gaming Receives Online Gambling License
Boyd Gaming’s presentation to the Gaming Control Board was much more traditional. Boyd Gaming, a Las Vegas casino company which finalized the $280 million purchase of Valley Forge Casino three weeks ago, spelled out its plan to build a Valley Forge Sportsbook.
Valley Forge will partner with FanDuel on its land-based sportsbook and sports betting app. FanDuel is the daily fantasy sports operator which was bought by Paddy Power-Betfair earlier this year. FanDuel will bring a complete sports betting package, complete with its own technology and a database of 6 million American gaming enthusiasts.
For Valley Forge’s online casino platform, International Game Technology (IGT) will provide the interative gaming software support.
Rivers Casino Withdraws Application
No word was given why Rivers Casino chose to withdraw its application to host an online casino and card site. Rivers Casino would have needed to pay the $10 million licensing fee for the two gaming options, but presumably access to the gamblers of Pittsburgh and Pennsylvania would have offset that price over the course of a year.
