U.S. IN FOCUS

Cannibalization Debate Continues at NCLGS Summer Meeting

As legislators, regulators, company reps, lobbyists and other stakeholders from around the gaming world descended on Louisville for last week’s National Council of Legislators from Gaming States summer meeting, several pressing industry debates were top-of-mind.

These ranged from prediction market uproar to federalist furor, tax increase malaise and beyond. Despite the attention drawn to more recent issues, however, a more enduring discourse still permeated throughout the conference: the online-retail revenue cannibalization debate.

On July 10, Macquarie senior gaming analyst Chad Benyon presented numbers showing the overall legal U.S. gambling industry generated total revenue of $172 billion in 2024, up 3.3 percent year-over-year.

Despite that positive news, what caused some agita was an estimate that iGaming does cannibalize retail revenue by about 15 percent in the first few years post-legalization. However, by the three-to-four-year mark, the market’s combined GGR is about 40 percent higher than it was pre-expansion, Benyon said.

His assessment mirrored findings from an Innovation Group study commissioned by the state of Maryland as it was considering iGaming last year, when no bill was passed. Other studies from about the same time, however, have reached different conclusions. Among them were research from Analysis Group and Eilers & Krejcik Gaming, and the EKG study even directly criticized the IG study as “flawed.” NCLGS founder and former Florida Senator Steve Geller lamented last week that such conflicts give the impression of research that is bought by competing interests.

Presenting shortly after Benyon was gaming attorney Jeff Ifrah, who is among the leading proponents of online expansion. Ifrah co-founded iDEA Growth, a trade group representing leading online operators including FanDuel and DraftKings.

“We don’t see that [iGaming] stunts growth,” he said. “We don’t really see that there’s a decrease or layoffs to employees, and we don’t see that it’s hurting the bottom line of land-based casinos and their online partners.”

Despite the fact that many companies now offer both retail and online products, numerous brick-and-mortar operators have taken hard stances against online expansion. These range from top-line developers like Las Vegas Sands and Wynn Resorts to regional specialists like Monarch Casino, Churchill Downs and Cordish Companies.

Those latter three, as well as others, have gone a step further by forming their own action group, the National Association Against iGaming. The title of the newly formed entity speaks for itself. On July 11, representatives from both iDEA and NAAiG took to the stage to rehash the debate directly.

“The reality is that no states have done this in two years,” said Shannon McCracken, senior director of government relations for Churchill. “In 2024 and 2025, over 20 iGaming bills have been rejected by states. So the momentum is not there. People are really giving pause to that as the data comes out on cannibalisation and especially the social harm.”

John Pappas, iDEA’s state advocacy director, in response called this “shocking” hypocrisy from Churchill, which he dubbed as “the largest online gambling company in the country.” The company operates TwinSpires, an online horse betting platform available in nearly 40 states.

McCracken, expecting such an argument, shot back that horse racing is “fundamentally different” from iGaming. It is event-based, she said, with longer run times between races and wagers instead of “a non-stop slot machine in your pocket.”

Maverick Gaming Files for Bankruptcy

Maverick Gaming, the casino and cardroom operator that owns a portfolio of more than 30 properties across the U.S., has filed for Chapter 11 bankruptcy.

The operator made the filing in Texas this week, according to Bloomberg. It has listed assets in the range of $100 million to $500 million in the filing with the U.S. Bankruptcy Court of Southern District of Texas.

Maverick Gaming made the bankruptcy move despite undertaking a debt restructuring last year. The restructuring granted the operator access to additional funds as well as a two-year extension for its debt.

The loan also made an allowance for a payment-in-kind arrangement, where Maverick was able to pay interest with principal instead of cash. It also required cash interest starting in Q1 of the current year.

The debt exchange was detailed in a report by S&P Global Ratings. The same publication also set out how the operator suffered from a weaker local economy, as layoffs from within the technology industry hit its customer base.

Maverick Gaming owns and operates casinos, restaurants and hotels in Nevada, Washington and Colorado. Court documents said its holdings include approximately 2,500 slot machines, 320 table games and 1,200 hotel rooms.

Strip Casinos No Longer Cashing Poker Chips from Other Companies

Several prominent Las Vegas Strip operators, including Wynn, MGM and Caesars, have changed their chip cash-out policy for poker players. As of this week, companies will only cash out poker chips from their properties, ending any previous arrangements between properties. The new policies do not appear to extend to any other table games.

The move is aimed at addressing anti-money laundering concerns, as poker can be especially vulnerable to such risks given that there are constant chip-cash conversions and vice versa, sometimes without the casino’s direct involvement.

“We believe this change was a good idea and a great example of our industry actively addressing (anti-money laundering) concerns,” Nevada Gaming Control Board Chairman Mike Dreitzer told the Las Vegas Review-Journal.

Churchill Takes Over Casino Salem Project

Churchill Downs Incorporated has agreed to acquire the outstanding equity interests of Casino Salem, a joint venture to develop gambling and entertainment facilities in New Hampshire.

The agreement covers charitable gaming, entertainment and dining destinations featuring historical horse racing machines. Churchill Downs did not disclose the financial details behind the Casino Salem acquisition deal.

Casino Salem is located at The Mall at Rockingham Park. Its initial phase opened on July 9, with approximately 100 HRMs and 13 live table games.

Over the coming months, Churchill Downs will finalize plans and commence construction of the future phases of the project. This includes rebranding the venue, expanding the gaming floor, and several food and beverage concepts.

Local developers Joe Faro and Sal Lupoli will maintain ownership in Casino Salem.

Churchill Downs CEO Bill Carstanjen described the project as an “exciting opportunity” for the business, which will draw customers from across the “growing New England market.”

Carstanjen said: “We look forward to sharing more about our plans to build an expanded, state-of-the-art gaming and entertainment facility in Salem and to support charitable organizations throughout New Hampshire.”

Developers Faro and Lupoli said the partnership will not only support the project but benefit the local community in Salem.

“With our vision for Salem, we remain committed to driving economic stimulus to our local economy, creating new jobs, and increasing tourism while delivering a world-class destination that will create lasting benefits for the community for decades,” they said.

Green Valley Ranch Announces Hotel Renovations

Green Valley Ranch Resort in Henderson has announced plans to renovate all 493 of its hotel rooms and suites, as part of a sweeping $200 million property-wide overhaul. Work is already underway, and the property’s West Tower is slated for completion later this year. The East Tower and south lobby areas will be unveiled sometime in 2026.

“This transformation represents a new era of luxury at Green Valley Ranch,” VP and General Manager Ken Janssen said in a statement. “Every room and suite has been completely reimagined with bespoke finishes, refined design, and thoughtful touches that cater to the discerning modern traveler. Our new accommodations will be some of the most distinctive rooms and suites in the city and will complement the elevated experiences we offer across the property.”

Renovation of Former Harrah’s Reno to Resume Shortly

Renovation work for the newly renamed Reno Revival project, which includes the former Harrah’s Reno casino downtown, is expected to resume this fall, now that a new owner and developer has taken over the project.

Boise-based Ahlquist, brought in by Madison Capital Group, has taken over the project, which used to be called the Reno City Center. The mixed-use development will not include a casino, but is expected to feature various residential, office and commercial spaces downtown. The new owners may also split the project into different pieces with different owners, which would make it easier to finance and complete.

“It just gives you tons of flexibility in the development to have different ownership groups,” Ahquist CEO Tommy Ahlquist told the Reno Gazette Journal. “It’s the right way to do something half as big as this, let alone two city blocks with hundreds of thousands of square feet.”