Tag: united states

Virginia lawmakers are pushing to create a new state committee on gaming addiction to tackle a feared rise in problem gambling, as wagering becomes more easily available and state and local governments chase extra tax dollars from lottery, casinos, sports betting, horse racing and slots parlors.

A bipartisan pair of state lawmakers have introduced legislation to create a new committee on problem gambling. In a joint news release announcing the bill co-filed with Delegate Paul Krizek (D-Fairfax), Senator Bryce Reeves (R-Spotsylvania) said: “As Virginia moves forward with the expansion of gaming, it’s important that we understand the ills that come with it.”

As more forms of legal gambling have become available, a Virginia problem gambling hotline has seen a sustained increase in calls from people seeking assistance, reports Virginia Mercury. The hotline, run by the nonprofit Virginia Council on Problem Gambling, has seen a 143% increase in intake calls over the last three years, with 816 calls last year from Virginia residents seeking help with gambling issues. 

The new legislation calls for the establishment of a Problem Gambling Treatment and Support Advisory Committee by the state’s Department of Behavioral Health and Developmental Services, which already deals with addiction and mental health issues. Its mission would be to “enable collaboration” between treatment providers and the gambling industry “on efforts to reduce the negative effects of problem gambling.” 

If approved, the new committee would be chaired by the state’s problem gambling prevention coordinator, a position recently created within DBHDS, and feature representatives from all state agencies that regulate gambling. The gambling industry would have seats on the panel as well; and there would also be a spot for someone from the problem gambling council.

In the lawmakers’ news release announcing the initiative, Krizek pointed to 2021 survey data showing that more than 21% of Virginia high schoolers said they had gambled or placed a bet in the past year, further reports the cited source.

“We know from prevention research that people who begin gambling in their teens are at a higher risk of developing a problem with gambling,” Krizek said. “And that one of the fastest growing groups to have gambling problems are young adults.”

Builder and operator of hospitality and commercial properties Fontainebleau Development and Koch Real Estate Investments (KREI) have secured – with J.P. Morgan as an administrative agent – a $2.2 billion construction loan to complete Fontainebleau Las Vegas. Real estate investment trust VICI has agreed to provide up to $350 million in mezzanine loan financing to support said partnership. The 67-story hotel, gaming, meeting, and entertainment destination is expected to make its debut at the north end of the Las Vegas Strip in the fourth quarter of 2023.

Brett Mufson, Fontainebleau Development President, said: “This is a milestone for Fontainebleau Las Vegas and stands as a testament to the tremendous dedication of our team and our partners at Koch Real Estate Investments. We are eager to bring our iconic Fontainebleau brand – timeless beauty, unparalleled service, and innovative design – to the Las Vegas Strip.”

Jacob Francis, president, Koch Real Estate Investments, commented: “We would like to thank J.P. Morgan, SMBC, Blackstone Real Estate Debt Strategies, Goldman Sachs, Guggenheim, and VICI Properties for recognizing both the potential of this property and the expertise of those involved in its capitalization, design, and construction. Securing $2.2 billion in financing in today’s market speaks to the widespread confidence in this project, and the team that’s come together to bring it to Las Vegas.”

David Kieske, Executive Vice President and Chief Financial Officer of VICI Properties, added: “We are thrilled to partner with both Fontainebleau Development and Koch Real Estate Investments, global leaders in experiential real estate development and investing, on the financing of Fontainebleau Las Vegas.”

“We believe the addition of the property will contribute to the increased vitality of the north end of the Las Vegas Strip. This transaction further strengthens VICI’s track record of creatively structuring and investing our capital to generate AFFO growth for our stockholders,” he further stated.

Fontainebleau Las Vegas spans 25 acres and nine million square feet on the northern end of the Las Vegas Strip directly adjacent to the Las Vegas Convention Center, and will feature approximately 3,700 luxury hotel rooms, 550,000 square feet of customizable convention and meeting space, and a world-class collection of gaming, dining, retail, lifestyle, and health and wellness experiences.

The partnership between Fontainebleau Development and Koch Real Estate Investments was advised by Dustin Stolly and Jordan Roeschlaub of Newmark. Upon completion, Bowtie Hospitality LLC, a subsidiary of Fontainebleau Development, will be the sole operator of Fontainebleau Las Vegas.