Florida Blackjack Player Fights $1.2 Million Gambling Debt

I am sure that when Jerome Powers took out his line of credit he thought that he would be doing some winning at the blackjack tables at the Mohegan Sun. And I am sure that the Mohegan Sun thought that Powers would not be a problem.

But two years later the Mohegan Sun is still trying to collect on the millionaire’s credit line with them. Did I mention that Powers is a millionaire? No? Well, he is. To give you an idea, he sold his Ocean Drive magazine for $33 million. And that was only one business deal. So with that kind of money floating around, why is he fighting a $1.2 million gambling debt?

Sure, it probably is not peanuts to his bank account, but he also made five year deal with Donald Trump for $20 million. So while it is not the same as a middle class person forking over $10, there really is no reason why Powers should be fighting the Mohegan Sun and their tribal lawyers for paying the debt.

Unless the money is not there.

The whole problem stemmed from the day in May 2009 when the Mohegan Sun extended Powers the $1.2 million credit line. When he went to write what would be six checks to cover the $1.2 million, his bank returned the checks saying his account was closed. Powers at that point walked out of the Mohegan Sun.

Enter the lawyers.

Powers and his lawyer say that the credit line was illegal since it was issued on tribal land where the state has no jurisdiction. The judge ruled in favor of the Mohegan, saying it was used for legal gambling therefore it was considered legal by the state of Connecticut.

Now Powers and his attorney have filled for an appeal as of last week. The Mohegan are being mum on the entire ordeal, not commenting or saying anything—just keeping their heads down. But that approach is probably best considering they want their money which means the appeals court has to rule in their favor. Mum is best in this case.

But I still do not get why Powers would be so willing to gamble away $1.2 million on blackjack if he never considered losing it all. And there is the lesson: never play blackjack unless you can afford to lose the money.

Blackjack Worth it in Pennsylvania

Build it and they will come. Or rather, add them and they will come.

There were many people in Pennsylvania that were either skeptical or downright opposed adding blackjack tables to the casinos found in their state. The objections and disbelief ranged from ‘Could that really give the state revenue?’ to ‘Gambling will corrupt our society and communities.’

But the table games were approved this past spring and were installed in nine brick and mortar casinos around Pennsylvania:

Harrah’s Chester Casino and Racetrack, Hollywood Casino Penn National, The Meadows Racetrack and Casino, Mohegan Sun at Pocono Downs, Mount Airy Casino Resort, Parx Casino, Presque Isle Downs, Rivers Casino and Sands Casino Resort.

August was the first whole month in which all nine brick and mortar casinos had their blackjack and other table games open for business. While the table games were all installed in July, they were not all installed at the same time. So August is the first month in which revenue could be compared.

For the month of August those nine casinos brought in from the table games alone $34.6 million. Of that $34.6 million, $4.8 million will go to the state of Pennsylvania in taxes, while another $691,000 will to municipalities.

So that is $4.8 million that did not have to come out of citizens’ pockets in the form of raised taxes, so I would call the installation of blackjack, poker, roulette and craps tables a success.

Shawn McCloud, an analyst for Spectrum Gaming Group, agreed:

“It is an impressive start for Pennsylvania…Obviously, Pennsylvania is going to be a formidable competitor in the table games market.”

Here is the breakdown in revenue generated by the new blackjack and other table games:

Parx Casino: $6,338,617
Harrah’s Chester Casino and Racetrack: $5,918,137
Sands Casino Resort: $4,297,070
Rivers Casino: $4,162,280
Mohegan Sun: $3,533,765
Mount Airy Casino Resort: $3,360,361
Hollywood Casino Penn National: $2,658,762
The Meadows Racetrack and Casino: $2,395,124
Presque Isle Downs: $1,891,056

Yet More Blackjack in Pennsylvania

Have you heard that phrase ‘When it rains, it pours?’

That could be said about blackjack in Pennsylvania. It is raining blackjack in Pennsylvania.

Already six casinos have received, set up, tested and opened blackjack tables. Those six casinos would be the Meadows, the Rivers, the Presque Isle Downs in western Pennsylvania and the Mohegan Sun, Mount Airy and Hollywood casinos in eastern Pennsylvania.

Now blackjack, and other table games like craps and roulette, will be coming to the Philadelphia area. Thankfully it is not another three casinos; this time it is only two: the Parx Casino and Harrah’s. Parx is located in Bensalem and Harrah’s in Chester.

Both casinos will be working their table games test today and hope to open said table games at 6 am on Sunday morning.

Ever since table games were approved earlier this year it seems that every brick and mortar casino in Pennsylvania is jumping up to install table games.

The funny thing about the sudden downpour of blackjack and other table games is that table games is not where the money is in casinos games of late. Vegas can attest that money comes from the slots machines. Popularity seems to be with the slots too.

So why the mad dash to install, staff and offer table games?

The only guess that I can offer is that casinos are hoping to draw more traffic, pulling it away from Atlantic City, by offering more gambling options to patrons. Yes, offering table games is could bring in more money but here is a little secret: with the offering of table games, these casinos have also been allowed to increase the number of slot machines to help accommodate an increased number of casino patrons.

So in short the table games were a means to an end. Not that blackjack players in Pennsylvania will care. They are just happy to not have to drive a long distance to play their favorite game.