We are all looking for the Big Casinos to benefit from online gamining legislation. But the parimutuel race tracks are also setting themselves up to be players.
Kentucky-based Churchill Downs, now owner of Bluff Magazine, operates TwinSpires, one of the country’s only legal online gambling sites (thanks to the UIGEA carve out for horse racing).
UK-based Betfair, owner of TVG, another legal online horse wagering site operating in the US, just completed a five-year naming rights deal with California’s Hollywood Park.
And now Las Vegas-based casino operator Pinnacle Entertainment bought a 75.5% stake in Retama Park in Texas for $22.8 million. Since Texas is one of the few states that hasn’t legalized gambling, Retama is an unlikely racino conversion. Pinnacle could, however, augment its revenues with an online wagering site.
In the not too distant past, parimutuel racing was a stagnant enterprise. But the industry’s UIGEA exemption has made it a gateway to online gaming revenues, initially from horse racing, and perhaps ultimately from poker.
This should be a semi-fascinating case should it not get insta-folded as frivolous: Two “recreational” California poker players, Dennis Chae and Jeff Kim, have sued the Bike, Commerce, Hustler, Hollywood Park, and Hawaiian Gardens casinos — alleging that the dollar-a-pot raked for bad beat jackpots makes them illegal lotteries.
In a 2005 advisory, then-Atty. Gen. Bill Lockyer cautioned casinos that the promotions violated state law unless players were allowed to win the jackpots without paying the fee. It’s the same legal principle that requires McDonald’s to give away game pieces for its popular Monopoly game to consumers who ask for them, regardless of whether they buy anything.
On its surface, the lawsuit seems like a hustle. I’m not sure how much in damages are they’re seeking, but the suit requests class-action status and hopes to enlist 10s of thousands of poker players as plaintiffs. But at the same time, Chae and Kim may have a technical point, at least to the extent that casinos advertise these promotions. We’ll have to see about how the finer details of rakeage break down according to California law. Honestly, can’t see this getting too far … but then again, it’s hard to say how many people might jump at the chance to score some rebate and slightly improve their EV retroactively.
This one will make Dan smile.
The first annual “All In for CP” charity poker tournament was held at Hollywood Park Casino in L.A. this past Sunday and is being hailed as a total success. More than $44,000 was raised for Jacob Zalewski’s One Step Closer Foundation, which helps ease the lives of those afflicted with cerebral palsy, as well as researchers seeking a cure.
Numerous celebrities and poker pros attended to make the event a success, names like Montel Williams, Shannon Elizabeth, Miguel Nunez, Jamie Gold, and Barry Greenstein. And in the end, it was The Simpsons creator and Hollywood writer/producer Dan’s man crush Sam Simon who won the tournament and donated all of the winnings back to the charity. Awww!
Congrats to Jacob for hosting his first charity tournament! Sorry I missed it, as I heard it was great fun, but hope to catch the next one…
There should be a big turnout for this one. The “All In for CP” tournament will be held on at noon Sunday, August 3rd (this weekend for the calendar-challenged) at the Hollywood Park Casino in Los Angeles. The event has been organized by Jacob Zalewski, pictured at right, who spent countless hours at the Rio during the WSOP gathering support for this tournament and his organization, the One Step Closer Foundation. The non-profit is his brainchild, and as a person who has dealt with cerebral palsy throughout his life, he hopes to raise funds to help others, as well as the researchers and scientists who are working toward a cure.
The $500 buy-in tournament (with $100 rebuys for the first 90 minutes) looks to have some famous names in the field, like Ben Affleck, Matt Damon, Mekhi Phifer, Montel Williams, Jennifer Tilly, and Norm MacDonald. It is open to the public. The only poker pro officially on board is Jamie Gold, but it is likely that others will attend, as they often do when charity events are held in the L.A. area.
A silent auction will accompany the festivities, where memorabilia will be up for bid, as well as prize packages donated by Ray Romano and Brad Garrett.
I have family (with two kids) in town this weekend, so I will not be able to attend, but my hope is that others in L.A. will go enjoy a day with the celebs for a good cause. (And if you see Mekhi there, take photos please.) For more info, visit the official website.
