Daily Business Report-July 21, 2016
Indian Gaming Industry Shows Largest
Revenue Growth Hike in a Decade
Tribal casinos reported nearly $30 billion in gaming revenues last year while posting their largest year-on-year revenue gain in a decade.
Figures released Tuesday by the National Indian Gaming Commission show tribal gaming revenue of $29.9 billion in 2015, up 5 percent from 2014’s numbers, which were up only 1.5 percent from 2031’s total. In 2006, total revenue was $24.9 billion.
San Diego County is home to 10 Indian gaming facilities. The Jamul Indian Village is currently in construction of what will be the region’s 11th casino.
Of the seven geographic regions into which the NIGC groups tribal gaming operators, the Sacramento region (California, Northern Nevada) posted the largest year-on-year gain at 8 percent. Oklahoma City (Western Oklahoma, Texas) ranked second with 6.7 percent, while Tulsa (Kansas, Eastern Oklahoma) placed third with 6.5 percent. All seven regions posted growth last year compared to five year-on-year gainers in 2014.
Of the 474 tribal gaming operations tracked by the NIGC, only 31 reported gross gaming revenue of $250 million or greater, but these 31 operators accounted for 45 percent of the overall pie.
The commission also noted the role of the many small or moderately sized Indian gaming operations that support rural economic development where little else has. More than half (57 percent) of tribal gaming operations generated less than $25 million per year while 20 percent generated under $3 million per year.
NIGC Chairman Jonodev O. Chaudhuri said “the strong regulation that tribes as well as federal regulators and other stakeholders provides has played a key role in the stability and growth of the Indian gaming industry by providing consistency and predictability.”
Chaudhuri took pains to point out that tribal gaming was “fundamentally different” from commercial casinos, in that it provided financial benefits —not to mention slimmer children — to Indian peoples that have yet to be matched by any other economic driver.
Chaudhuri said that Indian gaming is fundamentally different than commercial enterprises. It directly provides resources for Indian people including, social services, public works, education, housing, health care, emergency services, public safety and cultural presentation programs that no other economic driver has yet to provide.
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UCSD Pulls in Record $1.07 Billion for Research
UC San Diego pulled in a record $1.07 billion last year for research, maintaining the school’s status as one of the 10 largest research centeres in the U.S. It was the fifth time in the past seven years that the campus broke the billion dollar mark. The money was awarded to do everything from help develop cancer and dementia drugs to explore ancient ruins in Belize and study melting glaciers in the Antarctic. San Diego Union-Tribune
$350.5 Million Invested in San Diego
During the Second Quarter of 2016
Venture capitalists invested $350.5 million in 19 San Diego deals during the second quarter of 2016, according to the MoneyTree Report from
PricewaterhouseCoopers LLP and the National Venture Capital Association,
based on data provided by Thomson Reuters.
Consistent with historical investment in San Diego, the life sciences industry (biotechnology and medical devices combined) was the top industry for venture capital investment in San Diego during the second quarter, capturing $257.3 million, or 73 percent, of the total amount invested.
The life sciences industry was propelled by a $220 million megadeal in an early stage company, Human Longevity Inc. Megadeals are deals that exceed $100 million. This megadeal represents the largest single deal that San Diego has seen, based upon availableThomson Reuters data dating back to 1995.
The average deal size in San Diego for the second quarter was $18.4 million, an increase from the average deal size in the first quarter, when it was $11.9 million, as well as a significant increase from the second quarter of last year, when the average deal size was $5.8 million. Excluding the megadeal, the average deal size in the second quarter still exceeded the second quarter of last year, sitting at $7.3 million.
The top three industries in San Diego (in terms of dollars invested) for the second quarter were life sciences, software, and consumer products and services, with $257.3 million, $52.4 million, and $25 million, respectively. These industries represented 15 of the total 19 deals that took place in San Diego during the second quarter. Within the consumer products and services industry, the $25 million was represented by a single deal in an expansion stage company.
Southwest Apologizes for Computer
Failure that Canceled 221 Flights
By City News Service
Southwest Airlines issued an apology today after passengers in San Diego and at airports across the nation were forced to deal with extensive delays caused by a computer failure.
Southwest “began experiencing intermittent performance issues” Wednesday afternoon, which prompted a temporary halt to all flights that had not yet left the gate, according to the airline. The ground stop was lifted around 1 p.m., but delays continued throughout the day.
In a statement released this morning, Southwest spokeswoman Linda Rutherford said more than 221 flights had been canceled.
“I want to start off by once again apologizing to our customers and reiterating that your experience throughout the past 24 hours is not the service you should expect from Southwest Airlines,” Rutherford said. “Most of our systems are back online this morning following yesterday’s technology outages, but recovery will take some time.”
Rutherford said additional cancellations and delays would be possible as the airline positioned its aircraft and crews.
A handful of Southwest flights into San Diego were delayed this morning, but the majority of outbound flights were scheduled to depart on time, according to flight status information posted on the San Diego International Airport’s website.
“Thank you for hanging in there with us,” Rutherford said. “We will have more information later regarding flexible rebooking, and we will continue to work with each and every affected customer to make this right.”
Missile Engagement
- U.S. Navy photo by Lt. Bryce Hadley
USS Coronado, an Independence-variant littoral combat ship, launches the first over-the-horizon missile engagement using a Harpoon Block 1C missile. Twenty-six nations, 40 ships and submarines, more than 200 aircraft and 25,000 personnel are participating in RIMPAC from June 30 to Aug. 4, in and around the Hawaiian Islands and Southern California.
The world’s largest international maritime exercise, RIMPAC provides a unique training opportunity that helps participants foster and sustain the cooperative relationships that are critical to ensuring the safety of sea lanes and security on the world’s oceans.
RIMPAC 2016 is the 25th exercise in the series that began in 1971
New Director Named for SDSU’s
Corky McMillin Center for Real Estate
SDSU News Center
The new director of San Diego State University’s Corky McMillin Center for Real Estate said she intends to strengthen the real estate program by continuing to work with its alumni base.
Elaine Worzala will join SDSU in August after serving 3½ years as executive director of the Carter Real Estate Center at the College of Charleston. She will also join SDSU’s finance department in the College of Business Administration as a fully tenured professor of real estate.
Worzala, who previously led the Richard H. Pennell Center for Real Estate at Clemson University, has also taught at the Edward St. John Department of Real Estate at Johns Hopkins University. She earned her Ph.D. at the University of Wisconsin-Madison with a specialization in real estate and urban land economics.
Worzala said she is eager to work with alumni from the SDSU real estate program to strengthen both the academic program and the McMillin Center.
“San Diego State has been educating real estate professionals since 1959, and I look forward to working with the many SDSU real estate alumni,” said Worzala.
UC San Diego to Open Office
In Life Sciences Cluster in Tokyo
UC San Diego News Center
The University of California San Diego has launched a workspace in the heart of the life sciences hub in downtown Tokyo, Japan. The goal is to promote collaborations between UC San Diego researchers (and the larger San Diego innovation and business ecosystem) and research, education and industry partners in Japan.
The UC San Diego Tokyo Office officially launches at the July 26 grand opening event and symposium. The Tokyo Office is a collaboration between the UC San Diego Jacobs School of Engineering and the UC San Diego Office of Research Affairs.
The facility is in the Nihonbashi Life Science Building in Tokyo and will serve as a home base for UC San Diego faculty whose research brings them to Japan. The Tokyo Office will also serve as a venue for hosting research symposia, networking events and UC San Diego alumni functions.
“We are very pleased the office is located at the heart of the life science hub in Tokyo, a perfect fit for UC San Diego as our two cities are seen as world leaders in life sciences and biotechnology,” said Sandra A. Brown, UC San Diego Vice Chancellor for Research.
Mitsui Fudosan Co., Ltd., a major real estate developer in Japan, recently established “Life Science Innovation Network Japan” (LINK-J), a new organization dedicated to facilitating interactions among industry, academia, government and public sectors. The Nihonbashi Life Science Building is the geographical center of LINK-J, and UC San Diego is an inaugural member of this organization.
Mobile Privacy Workshop Set for Aug. 11
A free, hands-on mobile privacy workshop for adults 18 and older will be held on Aug. 11 by the Better Business Bureau of San Diego, Orange and Imperial Counties and the Identity Theft Resource Center. It will be at 8:30 a.m. at the Scottish Rite Event Center in Mission Valley.
The initial concept for the workshops stemmed from the experience the Identity Theft Resource Center CEO had when speaking at several Secure Your ID Day events in the Midwest, where it became readily apparent that older participants were extremely interested in the issues of privacy on mobile devices.
At this free interactive workshop, attendees will learn how to navigate the privacy settings on their tablets and mobile phones. In addition, they will gain an understanding of how much of their personal information is shared through their devices. This program will review why privacy is important, how to use the permission settings on mobile devices, apps, and social media accounts, and more.
Interested parties can register online at: http://bit.ly/privacyworkshop or visit bbb.org to register.
BBB is asking all attendees to bring their tablets and mobile phones, as the presenter will go app-by-app giving instructions on how to use and update privacy settings.
College District Board OK’s $348M
Bond Measure to Fund Workforce Center
The Grossmont-Cuyamaca Community College District governing board has approved putting a $348 million bond measure on the Nov. 8 general election ballot to provide a workforce center to train future employees for critically needed jobs.
The measure also would be used to address needs for veterans’ centers to assist former and active-duty military and to improve facilities and update classrooms at the Grossmont and Cuyamaca college campuses, serving more than 28,000 students.
“Our board members saw a crucial need for an East County center that will provide students and existing workers skills they need for the rapidly-changing economy,” said Bill Garrett, president of the board. “This bond measure will provide for an innovative economic development hub in East County to provide customized training for local businesses, workforce readiness, and career-technical education leading to skilled employment and industry certifications.”
The bond measure requires approval by at least 55 percent of the votes cast. The district will not use bond funds for any operations, administrator salaries, or employee pensions, and will continue an independent citizens’ oversight panel to assure accountability for the use of all funds and annual audits to ensure funds are spent only as authorized, officials said.
Salk Scientists to Speak at TEDx San Diego
Salk Institute faculty members Tom Albright and Janelle Ayres have been chosen to talk about their research at the annual TEDx San Diego on Oct. 22 at Copley Symphony Hall in Downtown San Diego.
They are among 10 speakers for this year’s event, “The Age of Magic,” which aims to celebrate aspects of life that produce a sense of awe and wonder.
Registration is open. Early bird discount is available through July 31.
To purchase tickets, click here.