I try to be an intelligent, informed person, even if the "intelligent" part is often questionable... I've never heard of a casino whose business was limited to hotel guests... is there precedent for that, or is it even common and I just never heard of it?... in what other location has it been done this way and what is the story of how that developed?...

I'd be amazed to find that the "hotel stay" restriction wouldn't eventually become the topic of some serious whining by the gaming company:

"Oh dear, we aren't doing as much business here as we would if we weren't restricted like this... we aren't restricted like this in any other location in the country... and just think of all the jobs we could grow, if only you'd remove this tourniquet from our marketing arms... can't you see Mr./Ms. Lawmaker... you've allowed us to come here, but we could do sooooooo much better if you'd just consider undoing this one little thing..."