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Illinois: No country for big casinos
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Quote of the Day

Posted At : October 20, 2009 03:06 PM | Posted By : D McKee
Related Categories: Tourism,Politics,Transportation,Atlantic City,Election

"I'd like to keep one strip of that airport as an airport. I think it closed prematurely. I think greed went nuts." -- Atlantic City mayoral candidate Joseph Polillo (I), on what to do with Bader Field. Incumbent Mayor Lorenzo Langford's idea for the former airport is -- wait for it -- another casino.

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Goliath, computer nerd; Lowden Trek: The Wrath of Reid

Posted At : October 20, 2009 01:09 PM | Posted By : D McKee
Related Categories: Animals,Downtown,Laughlin,Politics,Harry Reid,Tamares Group,Pets,Election

As some may recall, the saga of Goliath, the LVA rescue kitten, had a happy ending. Not only has he found a new, loving home but the hyperactive little fellow (whose new owners renamed him "Murderface") has developed an interest in technology:

"Robin said he’s obsessed with the computer — he’ll shimmy up her leg or the back of the chair, then either perch on her shoulder or sit in front of the monitor and bat at the cursor on screen."

Since my two cats only acknowledge computers to the extent of sitting either A) on the mouse pad or B) in front of the screen, effectively blocking it, Goliath would appear to be part of that younger, techno-savvy generation.

Sue Lowden = Klingons? The senatorial candidacy of Archon Corp. Treasurer Sue Lowden is evidently being taken quite seriously by Sen. Harry Reid. So much so that Reid's office has threatened to "vaporize" Lowden, prompting some musings on the proper response to phaser fire. If Reid wanted to do Nevadans a service, shouldn't he instead vaporize Lowden's Pioneer Gambling Hall, a grind joint that's been likened to the barren, depressing, post-2004 Vegas Club downtown?

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Ohio slots slip sliding away?

Posted At : October 19, 2009 03:21 PM | Posted By : D McKee
Related Categories: Ohio,Racinos,Current,Maryland,Election,Marketing

A sample conducted by the tag team of TruthPac and Strategic Polling finds support for the Ohio casino initiative backed by Penn National Gaming polling below 50%. Casinos still have a slight edge (48%/43%, with 8% undecided) ... so in theory the ballot measure should squeak through, so long as the undecideds split down the middle.

If, however, "likely voters" means so-called "values voters," then Issue 3 could be in serious trouble. Only 30% of Democrats polled were against putting casinos in Toledo, Cincinnati, Columbus and Cleveland -- but 58% of Republicans gave it the thumbs-down. It should be noted, though, that a Dayton Daily News poll released three weeks ago had Issue 3 winning in a 59%/38% wipeout.

From the mailbag: An East Coast reader writes, "I live in Washington, D.C. Only a tiny 1%-2% of the D.C. television market is in West Virginia, yet I'm surprised to be seeing several TV ads to legalize table games in Charlestown, West Virginia -- home of a racino (I've never been there). I hadn't even known that was on the ballot. Anyway, if they are buying D.C. TV for a Jefferson County, W.V. issue, they sure are spending boatloads of money -- not too surprising, I guess." 

Well, this did come as a bit of a surprise to me ... but it makes sense in retrospect. Not in terms of influencing votes: However, with table games an inevitability in Pennsylvania, a push for casinos in Ohio, slot parlors (slowly) ramping up in Maryland, etc., the advertising blitz is probably a means of preparing ground for after the election. Should table games be voted in, D.C.-area gamblers will know Charlestown has them and may think twice about driving to Pennsylvania and points northeast.

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Only in Nevada

Posted At : October 16, 2009 04:17 PM | Posted By : D McKee
Related Categories: Election,MGM Mirage,Marketing,Politics,Current,Sheldon Adelson,The Strip,Harry Reid,New York

To end the week on a note of levity: For the second time this year, both Gov. Jim Gibbons and Lt. Gov. Brian Krolicki got it into their heads to be out of state simultaneously. (One senses that they don't consult each other about scheduling or much of anything else.) Which means that -- also for the second time this year -- the Silver State was briefly helmed by state Senate President Pro Tempore Mike Schneider. Let's just say that, given this opportunity, Acting Gov. Schneider didn't let it go to waste.

Elsewhere in the Silly File, we find New York-New York holding auditions for a spokesman. They're being politically correct and saying "spokesperson," but considering that aforesaid person is going to be dubbed Vinny "The Man," I have a faint suspicion that members of the gentler sex aren't going to be in the running. The winning candidate must "have the most New York swagger" and be adept at gluttony: Winning a hot dog-eating contest is a prerequisite for would-be Vinnys.

I love New York. Seriously, Manhattan is my favorite place on Earth. (However, it is a poor vantage point from which to write about the casino biz.) Which is why I think promoting its Vegas knockoff through the persona of a dese-dem-dose palooka is a notion so creaky and archaic it needs a walker. Not for nothing has a colleague already dubbed this "the dumbest promotion of the year." I concur.

Jim Murren to the rescue. The CEO of MGM Mirage is going to bat for Sen. Harry Reid. The latter's got the casino moguls (Sheldon Adelson, excepted) in his corner, if nothing else.

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Leaving Las Vegas

Posted At : October 12, 2009 04:17 PM | Posted By : D McKee
Related Categories: Ohio,Horseracing,MGM Mirage,Pennsylvania,CityCenter,Atlantic City,Tribal,Current,The Strip,Detroit,Election,Racinos,Indiana,Economy,Tourism

At least 28,000 have done so over the two years-plus (probably more when you allow for the people still moving here). What are the likely consequences of Las Vegas' pegging its future on a one-trick economy? And is it going to be like one of those Rust Belt cities (like Pittsburgh) that turned it around or one of those (say, Detroit) that continues to decline?

Those questions and others are posed in a splendid article that connects most of the dots regarding Vegas' economic plight. One of the most disturbing points raised by Las Vegas Sun reporter J. Patrick Coolican is that cities doing well at present tend to be ones that possessed robust institutions of higher learning -- and invested in them. Neither can be said of Nevada's dismal education system, the recipient of savage budgets, thanks to our governor and the ever-feckless Lege.

If Las Vegas' future hinges on well-funded and -respected academic institutions, then the near-term prognosis is grim.

Speaking of Detroit, casino owners and politicians there may be casting a wary eye on rising pro-casino sentiment in Ohio. In whichever form casino gambling is legalized by Buckeye State voters, it stands to take a big bite out of Motown casino receipts -- and sap state and local revenue collection, too. A helpful Detroit News map shows precisely which Detroit, Indiana, Pennsylvania and West Virginia casino operators have reason to be fretful about the emergence of a casino industry next door.

Like their Strip brethren, tribal powerhouses Mohegan Sun and Foxwoods Resort Casino went all-in ... into debt, that is. Now that it's time to pay the piper,  they find themselves in binds comparable to those facing non-tribal casinos. However, they have fewer options for relief, as they discover the downside of being a tribal operation.

Dog's breakfast at Tiffany's. Few readers of this column can probably afford to buy anything at the Tiffany mega-boutique that will be part of the Crystals mall at CityCenter. However, it will make for some lovely window-shopping. (Click on the pictures to see them in a larger size.)

Atlantic City reprieve. Although New Jersey's three-way gubernatorial race is up for grabs, casino owners can take one consolation. Whichever of the two leading candidates is elected, continued opposition to racinos is promised.

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Case Bets: Reid, Goodman, Madison (Holly) & a kegger

Posted At : October 12, 2009 02:06 PM | Posted By : D McKee
Related Categories: Technology,Election,TV,Environment,Oscar Goodman,Steve Wynn,Politics,Downtown,Harry Reid,Entertainment,Economy

As they say on Dancing with the Stars, in no particular order ...

Eight against Harry: For a speedy primer on the myriad challengers to Sen. Harry Reid (D-NV), you can't go wrong with Jon Ralston's droll and speedy primer. It even gets props from John Chachas (R-Central Park West), who recently tossed his homburg into the ring. At least one among the posse Ralston calls "Snow White [Archon Corp. Treasurer Sue Lowden] and the Seven Dwarfs" has a sense of humor.

Reason vs. rage: While Steve Wynn was ranting on the boob tube this weekend, Thomas Krugman's column offers an indirect rebuttal to Wynn's Johnny One-Note ("Tax policy!") table-pounding.

Run, Oscar, run! If these poll numbers don't nudge the World's Happiest Mayor into the 2010 gubernatorial race, perhaps nothing will. Oscar Goodman not only has the highest favorables among Nevada politicians included in the survey, he wins one theoretical electoral matchup and ties for first in the other.

Gov. Jim Gibbons' political future looks bleak (read: borderline nonexistent) and there's not much comfort for Hapless Harry, either. Just think how much worse it would be if Reid had an opponent possessing genuine gravitas. Besides, given the rising tide of discontent among Nevada's progressives, there's a good chance that much of Hapless Harry's old base will just stay home on Election Day.

In Oscar's domain, an architect suggests ways to revitalize Downtown by decreasing energy use, increasing sustainability and generally targeting long-term cost savings. The proposal makes a lot of sense -- a virtual guarantee it will be ignored.

Holly Madison tapped an Oktoberfest keg at Siegfried & Roy hangout Hofbrauhaus last Friday. [Your punchline here.]

"Serpent Head" Jr.: If CNN ever has to let James Carville go on vacation, don't worry ...

... SNL's Bill Hader can fill in and nobody will notice a difference.

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Case Bets: Corzine, Penn vs. MTR, Pinnacle, Manilow & strippers

Posted At : October 7, 2009 01:06 PM | Posted By : D McKee
Related Categories: Election,Harrah's,Entertainment,Current,Louisiana,Ohio,IGT,Kansas,Pinnacle Entertainment,Economy,Atlantic City,Pennsylvania,Iowa,Politics,Illinois,Penn National,Boyd Gaming,Horseracing,Regulation,The Strip

Forbidden by New Jersey law from directly contributing to political campaigns, casino companies are making an end run through Virginia. Harrah's Entertainment, Boyd Gaming and IGT are among those funneling campaign cash into a reverse version on the Underground Railroad. No wonder Gov. Jon Corzine (D) is able to carpet-bomb his opponents with advertising, if he so chooses.

Hey, big spender. The New Jersey gubernatorial race may be chump change compared to the cash being expended in the battle over Issue 3, which would permit four Vegas-style casinos in the Buckeye State. This is boiling down to a proxy fight between Penn National Gaming (pro) and racino specialist MTR Gaming (con). You'll recall that the Ohio Supreme Court nixed Gov. Ted Strickland's plan to unilaterally add slots to the state's horse tracks, which might have given MTR a level playing field with Penn.

While I can understand why Penn or Harrah's would be willing to pay 23% in taxes in Iowa or 27% in Kansas, it's mind-boggling that Harrah's would be chomping at the bit in Rhode Island, where the rate is 73%. Oy vey!

A green shoot. The Baton Rouge Business Journal reports that Pinnacle Entertainment is inking contracts to begin driving piles for its Lake Charles project. Called "Sugarcane Bay" and budgeted at $407 million, this is the first positive movement we've seen out of Pinnacle in a while (unless you count its hijinks with the President license up in Missouri). Good on them.

Manilow on the move. The Las Vegas Hilton has confirmed what all suspected: Barry Manilow's contract expires Dec. 30 and will not be renewed. As we reported in Question of the Day, it's nearly a done deal that he will now set up shop at Paris-Las Vegas, whose main showroom has gone long unused.

Good luck trying to get the Vegas constabulary interested if your car is stolen or your home burglarized. They're too busy going undercover to get lap dances. As Richard Abowitz notes, rampant prostitution on the Strip goes unchecked in the meantime. It's an open secret around here, although many of the "working girls" look downright scary, so you have to wonder how they turn tricks, especially in this economy.

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Want your ass kicked?

Posted At : October 5, 2009 03:16 PM | Posted By : D McKee
Related Categories: Illinois,Taxes,Penn National,MGM Mirage,Pennsylvania,Transportation,The Strip,South Carolina,Sheldon Adelson,Dining,Election,Harrah's,Tourism,Colorado

Then go hang out at Stack. If they don't like your looks, the in-house goons will be sicced on you. And Las Vegans wonder at the schadenfreude so many people feel with regard to Sin City's current doldrums.

No magic bullet. Liberalization of casino rules in Colorado will raise considerably less revenue than expected. Whoever made the projections that are now coming up 60% short obviously didn't take the recession into account.

Opposition grows. An effort by Illinois Gov. Pat Quinn to saturate the state with video gambling devices is encountering widening opposition. Chicago suburbs Evanston and Naperville are among the areas that have nixed the prospect of slot routes.

Don't like our roads? Mail your thanks to Gov. Jim Gibbons, who just got his knuckles rapped by the chairman of the House Committee on Transportation & Infrastructure for laggard deployment of federal highway funds. It's pretty slow around Carson City once the Lege decamps, so what's Midnight Jim's excuse this time?

Sanity 1, Drunks 0. A trio of boozing bozos who rampaged through Buffalo Bill's before piling their car into a ditch can't sue MGM Mirage for their own asshattery, Nevada's high court rules. Since they were drunk off their asses and getting into fights, the trio of boozehounds maintained, casino management had an obligation to keep them on-property ... presumably so they could have continued terrorizing other patrons and otherwise letting the good times roll. In an unrelated victory for common sense, it is no longer a crime in South Carolina to play poker in the privacy of your own home.

Keystone stalemate. Casino owners like Las Vegas Sands who have gone ahead with preparations to add table games will soon be rewarded -- but not until endless legislative machinations play out. House Democrats appear to be backing off a 34% tax rate for tables (J.P. Morgan reports that leadership is now floating a 21% figure) and may even come down to the 12% rate favored by their GOP colleagues. The $10 million upfront fee, though, appears to be a done deal.

All that said, solons managed to spend much of a special weekend session dickering over matters that ought to be none of their business. Like: Should casinos be allowed to serve free drinks to their patrons? Or: Can they operate on Christmas? Now, nothing sounds more depressing than spending Christmas Day at Harrah's Chester, but aren't these matters that ought to be the prerogative of the individual casino owner? Also, ostensibly pro-business Republicans wanted to put table games before the voters, which could render the whole legislative exercise moot ... and relief can't come soon enough for racinos like Penn National Gaming's Hollywood Casino, which is starting to slash its payroll.

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From the mailbag #8

Posted At : October 5, 2009 01:08 PM | Posted By : D McKee
Related Categories: Donald Trump,MGM Mirage,Colony Capital,Marketing,International,Atlantic City,Current,Sheldon Adelson,Election,Oscar Goodman,Singapore

"Doesn't the IOC realise it will be winter in Brazil in August, 2016?" -- comment Blackberried in by a reader, regarding the award of the '16 games to Rio de Janeiro. Y'know, I'd been wondering about that myself. The average August temperature in Rio hovers between 66 and 78 degrees. Not frigid but not exactly torrid, either. Meanwhile, the IOC promises to keep an eagle eye on the betting lines for the Vancouver games in 2010.

From Jeff in OKC, regarding the recent National Coming-Out Day promotions on the Strip: "Casino ads need a gambling reference in their marketing, I found it cute. If I want to offend easily, I would say that 'Two queens are more fun than a straight' suggests that straight people are inherently less enjoyable than gay people, and NY-NY doesn't want my money. I think we can always be offended, if we look hard enough."

From kerr_mudgeon, on the growing possibility that Las Vegas Mayor Oscar Goodman will tilt at the 2010 gubernatorial race: "I don't think he'll run because the odds are less than 50% in his favor as a non-partisan + he'd not want to disrupt his family by taking a job in Carson [City] - BUT if he runs and wins, he'll start pushing immediately to move the state capital to Las Vegas (maybe to take over one of the partly-built Strip complexes in/near bankruptcy)."

It's not the worst idea I've heard. Nor is this ...

Singapore is building an expansion of its ocean-liner terminal, enabling it to berth four cruisers at a time. The good news for Las Vegas Sands and Genting Bhd is, obviously, that this means more potential customers for their ultra-megaresorts. The not-so-good news is that the new berths won't be ready until late 2011, by which point both casino-based resort will have been open nearly two years.

Everybody's got a private equity fund these days, like the 21-year-old owner of a Persian resaturant in Maryland. Youthful Artin Afsharjavan claims he's got the scratch to buy Trump Entertainment Resorts, prompting Trump CEO Mark Juliano to reply, "Show me the money."

Hey, if some kid wants to throw as much as $500 million into acquiring five (mostly) bottom-of-the-barrel Atlantic City casinos, including Resorts Atlantic City and the A.C. Hilton, I'd like to see the color of his money, too. If it's for real, TER and the others ought to pluck the guy clean. You don't get a pigeon like this every day.

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Goodman: "We're in the toilet"; "Peepshow" redux

Posted At : October 2, 2009 01:42 PM | Posted By : D McKee
Related Categories: Economy,Regulation,Oscar Goodman,Politics,The Strip,Election,Planet Hollywood

Mayor Oscar Goodman sounds increasingly motivated to run for governor next year. He's angry, which is good: Nevada needs someone who's nettled about our sorry -- pardon the pun -- state of affairs. (I tried umpteen times to embed the KRNV-TV video but had to admit defeat; sorry again!)

As to Goodman's fear that a governor couldn't make a difference, recent history is a poor guide. Both Gov. Jim Gibbons and predecessor Kenny Guinn developed reputations for doing as little as possible to move their legislative agendas through Carson City. The rap on both was that they'd issue their budget and then basically take the phone off the hook. One cannot imagine such passivity from Goodman.

On the issue of why we need an irate candidate, just replace "Somalia" with "Nevada" and this is where we're headed, fast:

We don't have cholera yet but we had a dandy hepatitis outbreak recently. And our assembly-line endoscopy centers will be happy to literally rip you a new one. (Remember, it was Goodman who took action during the hepatitis crisis, while Gibbons dithered. Even the Gibbons-adoring Las Vegas Review-Journal editorial page likened Midnight Jim's crisis response to a kitten trapped in a paper bag.)

Peepshow 3.0: The R-J's Mike Weatherford goes back for the band-less, Aubrey O'Day-augmented version and finds that this addition-by-subtraction thing is working pretty well. He also makes some trenchant points about the dainty approach that has ill-served the show from its inception.

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