Good morning, and welcome to the Indy Gaming e-newsletter, a weekly take a look at gaming issues nationally and internationally and the way the occasions tie again to Nevada.
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Unstable pricing fluctuations that may wipe out billions of {dollars} value of cryptocurrency values is one among amongst many explanation why Nevada gaming regulators haven’t allowed Bitcoin or different monetary cost strategies tied to blockchain know-how for use on the state’s on line casino flooring.
There’s additionally the necessity to set up a regulatory construction to make sure taxes are collected and cost actions don’t run afoul of federal anti-money laundering legal guidelines.
That’s to not say, nonetheless, that the Gaming Management Board has shut the door on cryptocurrency.
Chairman Brin Gibson advised the Legislature’s Joint Interim Standing Committee on Income final week the company is open to ideas from gaming corporations supporting using cryptocurrency.
“We’ve advised the business to please convey your proposals to us,” Gibson mentioned throughout a two-hour public listening to on the topic, which included a presentation on cryptocurrency traits by two representatives from the Federal Reserve Financial institution of San Francisco.
“We are going to vet (the proposals) and if there’s one thing that appears viable, we’ll transfer in that path,” Gibson mentioned.
He added that almost all of the cryptocurrency interest has come from gaming tools producers and companies that deal with monetary transactions and cash providers — not from people trying to gamble with cryptocurrency. The on line casino business in Nevada and nationwide, nonetheless, has been extra centered up to now 18 months on increasing using cashless gaming technology that makes use of digital wallets and different backend know-how.
“I’ve not been approached by any licensee pushing arduous for using cryptocurrency on precise playing transactions,” Gibson mentioned.
A measured response by gaming regulators was embraced by committee chair Sen. Dina Neal (D-Las Vegas), who admitted she was “not a fan” of the connection between cryptocurrency and gaming.
“I’m some (invoice draft requests) within the house,” Neal mentioned with out elaborating on the path she was headed.
Ben Kieckhefer, a former state senator appointed to the Nevada Gaming Fee final yr, tried to alleviate Neal’s considerations. He supported Gibson’s feedback that regulators are dedicated to working with the business on any cryptocurrency adoption “to maneuver in a path that’s cheap and mandatory.”
Kieckhefer cited legislative efforts going again 5 years that added a definition of a blockchain and language regarding digital currencies into Nevada legislation. He authored laws within the final session that created an eSports Technical Advisory Committee, the place he mentioned extra discussions will come up regarding using digital currencies.
“I feel that that is place for us to be proper now, as cryptocurrency itself continues to evolve and because the gaming business tries to determine the suitable match,” Kieckhefer mentioned.
A number of casinos – three properties owned by downtown gaming operator Derek Stevens and Resorts World Las Vegas – have cryptocurrency alternate kiosks on gaming flooring. The units, that are much like automated teller machines, enable clients to alternate Bitcoin and different digital currencies for money that can be utilized at a desk sport or slot machine.
Stevens, in a February interview, mentioned many of the kiosk’s transactions in his casinos contain individuals utilizing the machines to alternate their money for cryptocurrency.



Prior to now few months, cryptocurrency valuations have skilled substantial will increase and declines with little forewarning.
In late January, a report that the Biden Administration was making ready a complete authorities technique on cryptocurrencies prompted a cryptocurrency market meltdown that noticed roughly $130 billion of worth disappear in at some point.
Final month, the New York Times reported the collapse of two cryptocurrencies developed by a South Korean investor took a toll on the complete market. A dramatic drop within the worth of Bitcoin and different cryptocurrencies precipitated a $300 billion crash throughout the crypto economic system.
It’s these forms of worth fluctuations that concern Jim Barbie, chief of the management board’s know-how division. He mentioned any gaming laws must embody some sort of patron safety or reserve requirement for casinos on wagers dealt with with cryptocurrency.
He provided up a state of affairs wherein a patron would possibly place a future wager on the result of the Tremendous Bowl utilizing cryptocurrency. Any fluctuation in cryptocurrency pricing between when the sportsbook accepts the wager and when the successful ticket is cashed might trigger main points.
“You may really win the wager and be paid in cryptocurrency, but when the worth of the cryptocurrency has deflated, you could possibly probably lose cash on that endeavor,” Barbie mentioned. “There’s a distinctive side to the gaming house in the case of making use of cryptocurrency.”
The Federal Reserve representatives profiled cryptocurrency consumers as largely male between the ages of 25 and 34 with an annual revenue of greater than $100,000. Of those that personal cryptocurrencies, 69 p.c view their stake as a long-term funding.
Gibson mentioned there have been a handful of unregulated cryptocurrency-based casinos on the web which aren’t positioned within the U.S.
“One of many explanation why cryptocurrencies are so enticing for that form of playing is that it is troublesome to hint the actions again to any particular person,” Gibson mentioned.
Gaming regulators mentioned their key considerations are being able to gather gaming taxes from cryptocurrency transactions and making certain there are zero points with illicit exercise that will elevate the considerations of the U.S. Division of Treasury’s Monetary Crimes Enforcement Community (FinCEN).
“Our posture is just not one among rejection,” Gibson mentioned of any cryptocurrency proposals provided by the gaming business. “We’re simply making an attempt to get in entrance of one thing that’s so advanced.”

Adjustments to I-15/Tropicana interchange to be achieved with resort hall progress in thoughts
By the point a $305 million redevelopment of the Tropicana Avenue interchange with Interstate 15 is accomplished in 2024, the Strip might see a number of hotel-casino expansions that will convey extra site visitors and customer quantity to what Gov. Steve Sisolak referred to Tuesday because the “gateway” to the resort hall.
Moreover, a $1 billion, 33,000-seat Main League Baseball stadium could be underneath building close to the Rat Pack-era Tropicana Lodge On line casino if the Oakland A’s observe by way of with a relocation to Las Vegas.
Nevada Division of Transportation Director Kristina Swallow mentioned the shortage of a baseball stadium or different initiatives wouldn’t render the challenge out of date earlier than it’s even accomplished, although. She mentioned NDOT and builders regarded a lot additional out than the two-year building timeline because it sought to anticipate adjustments within the space.
Swallow steered planners thought of potential developments as far out as 2040.
“The entire modeling relies on the extra site visitors that we might anticipate, whether or not it is one particular improvement or one other,” Swallow mentioned. “We anticipated progress into the design.”
The 60-year-old Tropicana Avenue bridge can be utterly rebuilt and widened, and its peak can be raised an extra 4 ft above I-15. The present flyover ramp that takes southbound I-15 drivers above the overpass and eastbound on Tropicana may even be partially reconstructed and raised.
The challenge can be accomplished in 4 phases — parts that can trigger the most important site visitors interruptions will start later this summer season.
The I-15/Tropicana Interchange challenge is being constructed with funds from the $1 trillion infrastructure package deal signed into legislation final yr by President Joe Biden. Transportation Secretary Pete Buttigieg and Sisolak had been joined by members of Nevada’s congressional delegation and state and native elected officers in kicking off the challenge throughout an hour-long occasion at Allegiant Stadium.
Discussions surrounding enhancements to the Tropicana interchange had been happening properly earlier than 2016, when the development and financing of the $1.9 billion Allegiant Stadium was permitted by state lawmakers and then-Gov. Brian Sandoval. On the time, NDOT mentioned it had a $190 million challenge within the works to transform the Tropicana interchange someday after 2020.

Along with widening and lengthening the Tropicana Avenue bridge over I-15 and enhancing the present flyover, NDOT will add excessive occupancy car (HOV) ramps and separate the by way of site visitors on Dean Martin Drive from the Tropicana Avenue intersection.
Swallow mentioned the development timelines will contemplate particular occasions within the space, similar to Las Vegas Raiders soccer video games at Allegiant Stadium, Vegas Golden Knights video games at T-Cell Area, and weekends with excessive visitation that may convey as many 300,000 guests to Las Vegas.
Two main occasions – Method One’s Las Vegas Grand Prix in November 2023 and Tremendous Bowl LVIII in February 2024 – will happen whereas the interchange is underneath building.
Swallow mentioned building paperwork will restrict street closures, together with what number of happen and their timing.
“Our contract really went above and past and I consider (the challenge) has considerably fewer closures,” she mentioned. “We now have ongoing weekly and frequent conversations with the entire main stakeholders to guarantee that we’re all on the identical web page to know when issues are going to occur.”
Swallow mentioned Challenge Neon, which renovated a big portion of I-15 between Sahara Avenue and U.S. 95, had related street closure points, however NDOT took extraordinary steps to alert the general public.
“I think about we’ll have related themes alongside these strains, and we’ll be asserting (closures) with as a lot discover as we will probably have,” she mentioned.

Analysts have blended views on Las Vegas visitation traits
Las Vegas visitation in April was roughly 4 p.c under pre-pandemic numbers from 2019. The common every day resort room charge of $177.12 was 62 p.c above charges from a yr in the past and 36 p.c larger than April 2019, although.
In truth, the common charge was the very best ever recorded for a single month, according to the Las Vegas Conference and Guests Authority.
Different indicators present the figures holding up in Might and persevering with into June.
Based on Macquarie Securities gaming analyst Chad Beynon, group and conference companies that canceled January occasions at MGM Resorts Worldwide’s Strip properties due to the Omicron variant rebooked through the second quarter.
“As that enterprise comes again, we predict this could assist shore up midweek common every day room charges and additional strengthen pricing energy,” Beynon advised traders.
Different analysts, nonetheless, are skeptical that the pattern will final.
Truist Securities gaming analyst Barry Jones mentioned monitoring by his agency reveals Strip resort room charges decelerated in Might, with reductions persevering with into June and July.
“We’ve additionally heard considerations that sustained inflation might present an influence,” Jonas mentioned.
Gaming executives throughout first-quarter earnings calls advised analysts the Strip confirmed resiliency to excessive shopper prices related to rising inflation.
Jonas credited the Strip’s “sturdy” occasion calendar in April, which included the NFL Draft and 4 nights of reveals by Korean pop performers BTS at Allegiant Stadium and helped drive gaming income to an April report of $593.4 million.
Nevertheless, Jonas mentioned, “We’re looking out for any unfavourable influence from macro-inflation headwinds.”
Deutsche Financial institution gaming analyst Carlo Santarelli famous the EDC music competition, which happened over three weekend days in Might, precipitated late demand for resort room nights that exceeded expectations.
He advised traders in a analysis word the room request surge was considered “as a reasonably constructive indicator that, thus far, elevated fuel costs and total prices to go to Las Vegas, haven’t slowed spontaneous demand from the drive to markets.”
However he additionally questioned whether or not occasions — similar to EDC or the late-April NFL Draft — had been as profitable for the gaming flooring as they had been for the resort aspect of the resort enterprise.
Santarelli mentioned he expects the expected determine of greater than 600,000 attendees for the draft will in the end show to be over-inflated, with the precise attendance coming in at roughly half of the expected whole.
“Given the character of the draft and the truth that it’s free to attend, we don’t consider it drew a crowd with excessive gaming spend propensity,” Santarelli mentioned. “We might additionally word that Strip room charges on the Thursday night time of draft weekend had been low. Accordingly, we don’t consider the draft was a significant needle mover for Strip operators.”

Does Las Vegas Sands have its eye on digital sports activities betting supplier Kambi?
Since asserting plans to enter the digital gaming area greater than a yr in the past, Las Vegas Sands Corp. has been considerably secretive about its plans.
The corporate has mentioned little about its two most public strikes, the hiring of a veteran investment executive final July to supervise Sands’ digital operations and an undisclosed investment into sports activities betting know-how supplier U.S. Integrity in April.
Final week, advisory agency Eilers & Krejcik Gaming speculated Las Vegas Sands might make a a lot bigger splash.
In a analysis e-newsletter despatched to gaming business traders, analyst Chris Krafcik named Las Vegas Sands as one among a half-dozen potential suitors of Kambi Group Plc, a developer of sports activities betting platform providers utilized by casinos worldwide, together with industrial and tribal gaming areas in 14 states. Kambi gives retail and on-line sports activities betting platforms.
Krafcik steered a current 24 p.c improve in Kambi inventory that got here when its friends within the on-line gaming and sports activities betting fields have declined in worth had piqued the analyst’s curiosity.
“That dynamic has led to a rise in Kambi for-sale hypothesis which, if true, naturally raises questions on potential acquirers,” Krafcik wrote.
Among the many listing of attainable consumers – personal fairness corporations, gaming know-how suppliers and sports activities betting operators – was Las Vegas Sands.
“The corporate has lengthy been on the hunt for (business-to-business) property and was rumored to have kicked the tires at Evolution [another sports betting platform] earlier this yr,” Krafcik wrote. “On face worth, Kambi would seem to suit inside Sands’ present strategic (technique of working).”
Kambi is headquartered in Malta, is traded on the NASDAQ Stockholm Change and has a U.S. workplace in Philadelphia. Its platform, which incorporates oddsmaking providers, know-how for profiling clients, and operational tools, permits a on line casino to supply sports activities betting and assume the monetary threat with out having to rent an operator.
A spokesman for Las Vegas Sands didn’t reply to a request for remark.
Throughout the firm’s first-quarter convention name in late April, Sands President Patrick Dumont mentioned the corporate hasn’t modified its perspective on getting into the net gaming house because it first introduced the concept in January 2021.
“We take a really long-term perspective on digital,” Dumont mentioned. “I feel what you will see over time is us make investments in small corporations the place we predict they’ve a aggressive benefit within the (business-to-business) house that has numerous progress potential.”
Among the many different corporations Krafcik listed as potential consumers for Kambi was gaming tools supplier Aristocrat Applied sciences, which doesn’t have a sports activities betting platform.