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Night of the living dead

Posted At : October 15, 2009 11:06 AM | Posted By : D McKee
Related Categories: Illinois,MGM Mirage,Alex Yemenidjian,Fontainebleau,CityCenter,The Strip,Economy,Entertainment,Regulation,Riviera,Boyd Gaming

Will the last person leaving the Riviera please take down the Charo in Concert, Abra-ca-Sexy! and Tom Stevens posters? Everything about last night's visit to the casino suggested a business that's died but doesn't realize it. Not that it helps to be literally in the shadow of the rotting whale carcass that is Fontainebleau. Between it, Echelon and the apparently defunct Plaza project, that neighborhood is one giant buzz-kill.

Still, even on a Wednesday night one does not expect to see such a thinly populated casino floor. There were more players around the electronic table games than the real ones. In the parking-garage elevator, one of the braille "3" panels was missing from the keypad. Management's solution? Scrawl "3" in red ink where the braille pad should be. (ADA non-compliance much?) If the Riviera is blowing off its interest payments in order to use the money on operating costs, it's not going very far, from the looks of things.

The moribund feeling extended to the upstairs showroom, where Charo has given way to Andrew Dice Clay (or, as the Riv bills him, "Andrew DICE Clay"). Even with a 90-minute cocktail party as an inducement, Clay rolled snake eyes in terms of media turnout. It was a small crowd [sic] and even some many of the local bloggers blew it off, so scant was the event's cachet.

Maybe they were at the Tropicana, checking out Wayne Newton, whose new show ...

Features Rich Natole. This confirms well-sourced reports LVA had been receiving that the impressionist would land a new gig at the Trop and it was merely a question of when. Natole, who was subletting a time slot from Anthony Cools, got caught in the crossfire between Cools and Trop CEO Alex Yemenidjian. When Cools, Bobby Slayton and the Penny Lane show were sent packing, Natole found himself briefly at loose ends, too. The Natoles are nice people, so I'm glad this Vegas saga has a happy ending. On a sadder note ...

Lanni ailing. Former MGM Mirage CEO J. Terrence Lanni has an undisclosed form of cancer. The news comes almost a year to the month since he abruptly resigned from the gaming giant. At the time, Lanni denied that health problems were involved but he also said it had nothing to do with a resumé-inflation scandal that threatened to bring him under investigation in New Jersey, Illinois and Nevada. (Another possible motive for Lanni's abrupt departure: MGM stock had just sunk below $10/share.)

S&G sends wishes for a speedy and full recovery to Lanni, and to his family. I've lost a couple of friends to cancer, so I can imagine the ordeal the Lannis are experiencing. And, if it's not inappropriate, a tip of the Panama hat to low-budget broadsheet Gaming Today, which beat all major news outlets to this sad story.

Reality bites. At least if you're trying to maintain your price point at Aria. The megaresort has cut rates to $159 -- and thrown in a $75 amenity credit -- to entice two-night stays, through April 1. Wouldn't it be ironic if, instead of cannibalizing Bellagio, as feared, Aria wound up gravitating toward the mid-market crowd?

Please spare a thought for the Queen of Comps, the beloved Jean Scott, who's in her sixth week of convalescence from the flu. First, a hepatitis scare, now this. Let's hope LVA's most popular blogger catches a break -- and soon.

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Case Bets: Net bets, Mohegan Sun & What's F'bleau worth?

Posted At : October 13, 2009 10:46 AM | Posted By : D McKee
Related Categories: Illinois,Massachusetts,Penn National,Internet gambling,Ohio,Marketing,Horseracing,Fontainebleau,Tribal,Sheldon Adelson,Kansas,Racinos,Harrah's,Technology,Indiana,New York

You can't play poker for money on the Internet but you can now play the ponies in Illinois via the Web. This is yet another example of legally enshrined hypocrisy under UIGEA, the parting gift of "Slick Billy" Frist and Jim Leach to the American people. (Speaking of Dr. Frist, M.D., if we must, he just sat like a bump on a log when Bill Maher stupidly railed against the swine-flu vaccine last week. Thanks, doc.)

Setting Sun? The incoming chief of the Mohegan tribe is saying the right things about the imminent need for diversification. Specifics, however, are few on the ground. Mohegan Sun, meanwhile, finds itself between several rocks and hard places: potential competition from Massachusetts and Long Island, $1 billion in debt, falling revenues and the economic inability to finish planned improvements. Depending on how quickly Massachusetts gets its act together, Mohegan's moment in the sun could soon pass.

You've heard of "pocket pool," now the Review-Journal's intrepid Howard Stutz reaches deep into the demimonde of PocketCasino, the new, portable sports-betting technology in play at Venetian/Palazzo. No word yet on whether excessive play causes blindness or hair growth on one's palms.

(Seriously, as a longtime skeptic of Cantor Gaming's portable-gambling applications, I have to say it looks like the Cantor boys have come up aces this time. As for handheld substitutes for table games, the jury is still out on that, four years after their legalization.)

Fontainebleau Las Vegas from Running Bull Productions on Vimeo.

Pennies for F'bleau. What's Fontainebleau worth? Jack shit, according to Penn National Gaming (aka, 15 cents on the dollar). In return, Penn is willing to accept a 10% return on investment ... provided it can bring the project in a no more than $1.5 billion (not counting the billions already spent and written off).

This remains an iffy proposition, in part because it's predicated on increased profitability at Penn's patchwork assemblage of casino properties. Those have to be welded into a Harrah's Entertainment-like loyalty program that drives visitors to Las Vegas. This is a huge "if," as Penn currently has no casinos in major destination markets, unless you stretch that to include recently singed Empress Joliet. Bringing customers to Vegas or even Atlantic City is terra icongnita for Penn.

To put it bluntly, Penn was a third-tier operator -- mainly of racinos -- that "married up" by taking over Argosy Gaming, the classiest of the riverboat operators. However, the Vegas market is notoriously unforgiving of new-to-town operators and Penn will have a very steep learning curve. Also, Penn is not associated with upscale properties, so F'bleau will either have to be repriced downward to reflect the Penn customer base or may need to offer promotional allowances up the ying-yang (more likely both).

If that weren't sufficient cause for concern, Penn's oft-brandished $1.5 billion (the breakup fee from an ill-advised and abortive LBO) is covering multiple bets. Penn is the primary mover behind a pro-casino ballot initiative in Ohio -- partly to protect its Hollywood Lawrenceburg investment just across the border in Indiana. It also recently bought out Cordish Gaming in hopes of getting piggybacked onto the Kansas Speedway casino license, should the Sunflower State's lottery board approve.

At least Penn is working on ways to trim the completion price of F'bleau. Costs to date -- and projected ROI -- being what they are, it behooves Penn CEO Peter Carlino to get this rampaging beast under some semblance of control.

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Good times ahead?

Posted At : October 12, 2009 12:58 PM | Posted By : D McKee
Related Categories: International,James Packer,Economy,Current,Fontainebleau,Detroit,Illinois

New Yorker economic columnist James Surowiecki puts current consumer-spending strends in perspective -- and what he finds should gladden the hearts of casino owners. Basically, he finds historical evidence the current tendency toward thriftiness will soon pass. Of course, when Americans' savings rate (now 6%) dipped below 0%, that should have been a canary-in-the-coal-mine moment for heedlessly expansionist gaming moguls. But they'd probably laid off the canary in order to "maximize shareholder value."

If wishing made it so ...

... Chicago would have had a casino a long time ago. Some city parents think they've found the perfect site, but it's still a long shot. Just keep it out of the Loop, OK? Seriously, downtown Chicago is looking livelier than it has in a while and doesn't need a big-ass casino plunked in its midst. The likelihood that it would be Windy City version of, say, a classy anomaly like MGM Grand Detroit is pretty remote.

So much for speculation that Australian casino magnate James Packer would get into the running for Fontainebleau. Seems that Packer is buying up Crown Ltd. stock instead. (Indeed, why would Packer write off his F'bleau investment, then double down on the failing development?) Packer has raised at least $772 million by disposing of non-gaming assets and appears on course to make a takeover bid for Crown, of which he owns 40% at present.

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What's a Trump casino worth?

Posted At : October 8, 2009 01:07 PM | Posted By : D McKee
Related Categories: Harrah's,Station Casinos,Current,Tribal,Ohio,Atlantic City,Neil Bluhm,Taxes,Sheldon Adelson,Massachusetts,Baseball,Melco Crown Entertainment,Lawrence Ho,Pennsylvania,Texas,Regulation,Politics,M Resort,Illinois,Sports,Penn National,Horseracing,Oklahoma,Internet gambling,Fontainebleau,Slot routes,International,Donald Trump,Macau,Steve Wynn,Harry Reid

Only $14 million in cash (plus a $100 million equity infusion), according to The Donald. Bondholders say, we'll see your $115 million and raise you $100 million. The latter would recoup at least some -- but not very much -- of their $1.25 billion debt under their plan, while Das Trump would send them away virtually empty-handed. (Moral: When Donald Trump asks you for a loan, take a page from Nancy Reagan and Just Say No.)

The bondholders' assignment of a $75 million valuation to Trump Marina seems awfully optimistic for what is, in essence, a corpse that can't be sold. In essence, the real value proposition is resurgent Trump Taj Mahal, with the other two casinos scarcely better than throw-ins. The Marina is, if anything, an albatross around the company's neck. Still, given that CEO Mark Juliano is going to exceptional lengths to champion the Trumpster's bid, which is a big "screw you" to the debtholders, here's hoping Judge Judith H. Wizmur holds firm for a more responsible solution.

Ho: No! "I don't see major resorts opening for the next couple of years now," says Lawrence Ho. thereby raining pessimism on the expansion plans of Las Vegas Sands, Wynn Resorts and Galaxy Entertainment. The younger Ho also speculates upon the Chinese government's motivation for throttling, then somewhat relenting upon travel to Macao. Interesting tidbit: Marketwatch.com reports that "Venetian Sands" [sic] has cut its number of table games by 25%.

Nevada revenues in. And yeah, they suck. They're much less sucky than usual (-9%), showing an upward trend in baccarat plus two locals-oriented bright spots in the form of Aliante Station and M Resort. It's unclear, though, how much of the growth generated by the last two is new business vs. redistribution of dollars from elsewhere in the valley. The Sun's analysis is far more informative than that found in the R-J.

Wait 'til next year. That's the timeline for casinos in Massachusetts. Even though western Mass looks like slim pickings, lawmakers will probably have to put a casino there just to get the bill onto the floor.

Penn bid falls. Lenders to bankrupt Fontainebleau won a small victory or two, as the judge overseeing the case seems determined to keep lead developer Jeffrey Soffer as far from the disposition of F'bleau as possible. (Soffer is both a debtor and creditor on the project.)

F'bleau, for its part, revealed that Penn National Gaming's offer is now "substantially less" than $300 million, but would include money to replace the windows that are reportedly falling off the building. (One more reason not to build a Strip megaresort tower flush against the "pedestrian realm.")

Groundbreaking today for the long-awaited SugarHouse casino in Philadelphia, under the shadow of a stick-it-to-SugarHouse tax that's been proposed in the Lege. Table games, meanwhile, might be off the table in the face of a $200 million lawsuit. You see, non-racino casinos are allowed to have 5,000 slots (in return for a $50 million fee). Small "resort" casinos -- known as "Category 3" -- only have to $5 million and get 500 slots (accessible only to guests). That's proportional, obviously, and seems fair.

However ... lawmakers want to tilt the playing field by giving Category 3 casinos 30% as many slots as, say, Rivers Casino or SugarHouse, instead of 10% ... and open those games to the general public, not just guests. Of course, the state can't go to the one existing Category 3 casino and ask for another $10 million -- can it? Casino operators are also solidly behind the GOP position on table games: $10 million upfront plus a 12% tax. But, unless House Dems completely capitulate, the gaming bosses are unlikely to get what they want, at least where the tax rate is concerned.

Penn whiffs again. Although Penn Nat'l was supposed to be a bidder in the bankruptcy auction for the Lone Star Park racino, it evidently didn't get into the action and the track went to the Chickasaw Nation for $27 million. (A lot less than Harrah's Entertainment paid to get into Ohio.)

Which means that if/when gambling is legitimized in Texas, the Chickasaws will have a double advantage (parimutuel + tribal status), while Penn will be looking at yet another missed opportunity. Penn's corporate strategy is a baffling alternation of rashness and hyper-caution.

In other tribal news, much-criticized National Indian Gaming Commission Chairman Phil Hogen is gone, thank God, and with him his new, more-restrictive Class II rules. Hogen was justly pilloried for attempting a rollback of hard-won gains in what games tribes could offer. His new rules reflected Bush administration paternalism toward tribes and while they're officially postponed for a year, I think it's safe to say they're dead.* No wonder Rep. Dan Boren (D-OK) is smiling. Watch out for that doorknob, Mister (Ex-)Chairman.

(* It's probable the same thing would have happened under a President McCain, as either candidate would have brought a more enlightened attitude to D.C.-tribal relationships.)

Supporters of video gambling are starting to push back in Illinois, at least in rural, conservative McHenry County. So far it's been the urban areas where this expansion of gambling hasn't been gaining traction.

A repeal of UIGEA continues to gain ground in the House of Representatives, even if it got pulled off the floor in the Senate. (Thanks for nothing, Harry Reid.) The money quote, literally, is a reference to an amendment Rep. Jim McDermott (D-WA) which would would specify that "corporate taxes owed on regulated Internet gambling activities are collected, as they currently are from the land-based casino industry." [emphasis added]

If that means what it implies, it would remove the spectre of industry-wide federal gambling taxation from the discussion and leave taxation to the states. If not, then the nose of the federal casino-tax camel is still sticking through the legislative tent. And you know where that leads.

We've seen a nationwide gaming tax get shot down during the Clinton administration but there are desperate times, obviously. Republicans like Mike Huckabee and Rep. Steve King (R-IA) have been looking to sock it to casinos at the federal level for some years now, so I fear it could have bipartisan support, should such a debate come to pass.

It's playoff time. A tired, flat-footed Minnesota Twins squad looked positively dreaful last night, flailing at outside pitches from C.C. Sabathia (if you couldn't reach that slider in the first inning, your arms aren't going to be any longer in the seventh, son). Cliff Lee made short work of the Colorado Rockies (besides, Jim Tracy can't win in the postseason), the St. Louis Cardinals look set to continue their tradition of postseason underperformance and my Anaheim Angels are forever reduced to a quivering heap of Jello in playoff games against the Boston Red Sox. Why am I having visions of brooms? 

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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.

[Add Comment]

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.

[Add Comment]

Go ask Alex

Posted At : September 23, 2009 04:04 PM | Posted By : D McKee
Related Categories: TV,Alex Yemenidjian,MGM Mirage,Tropicana Entertainment,The Strip,Entertainment,Dining,Illinois

Without further ado, we present S&G's much-hyped interview with Tropicana Las Vegas CEO Alex Yemenidjian, a trim, nattily attired man of impeccable manners and refreshing directness, as you will see. I led off with questions from the readership ...

Nelson asks, “What’s your game plan for motivating the staff into offering quality service to your guests?”

First of all, we have a lot of staff that’s already very motivated. When I took over here, it was a very pleasant surprise to see that there is this reservoir of good will. Many of the employees have been here a long time. They love this place, it’s home for them, they are proud of it and they are happy to be part of the future of it, and they’re very excited because these changes that we are proposing is something that they have been waiting for for a very long time.

In addition to that reservoir of good will, we’re going to be implementing a new training program, a new guest-service-quality program to make sure we elevate the service to a whole new level. So I think the combination of those is going to do the trick.

The last time I walked the property, it was very lightly staffed. I saw two maids to a hotel floor, even on a floor with 44 rooms. Rockymet asks, “Will they staff a full size cleaning crew [and] will they spruce up what is/was one of the best pools in Vegas?”

The answer to the first question is, yes, we’re actually increasing our staff in many areas. We’re reducing in certain areas and increasing in others, as the particular area dictates – particularly in the area of guest-room attendants. One of our objectives is for our new rooms that we are designing to look perfect at all times. It’s a whole new image, it’s a whole new brand that we’re putting forward, so we want to make sure that service matches the new brand.

As far as the pool is concerned, [the question is] very timely. I just finished final touches of the design this morning. We will be getting permits by December 1 so that we can open the new pool area by April 1, which is the beginning of the next summer season. We recognize that the pool area is renowned and we want to make sure that we do it justice, so we’re going to be spending a little more money than we originally thought. [smiles] But it’s going to be wonderful.

Jeff in Oklahoma City wants to know if Onex Corp. “is keeping the property warm for MGM until [MGM’s] debt structure gets better” and if this your way back to MGM Mirage?

I can speak for Onex when I tell you that they are not in the business of keeping things warm for anybody.

Your proposed executive team for the Illinois casino you were seeking included Karen Sock and Joe Billhimer, a couple of heavy hitters in the business. Are they or any other well-known executives going to be joining you at the Trop?

At the moment we have an excellent team here. I am very proud of my team. I actually have a team that I wouldn’t trade for any other team in Las Vegas at the moment. As our company expands – and Onex and my intention is to expand by either acquiring new ones or building new hotels – hopefully we will have more openings and more opportunities to have people like Karen and Joe join the team.

Does that mean Trop President Ron Thacker is staying on?

Ron hasn’t been here. Ron decided to retire. He had actually come out of retirement to take this job as a favor to Tropicana Entertainment.

How serious are the deferred-maintenance issues you’ve had to address?

Well, we were spending a significant amount of money on the deferred maintenance that was left to us, courtesy of the previous owners. We addressing all issues, including roof, elevator, escalator – all items of deferred maintenance that have been ignored for a very long period of time, and we are spending whatever it takes to make sure that the property comes up to a top-notch level.

You’ve said that one of the priorities was redesigning the buffet, but what about the food itself? I’ve eaten there and it was one of the worst buffets in Las Vegas.

I agree with you. Lucky for us, you ate there with the previous chef. We have just hired a new chef. He is in the process of changing the quality of the food. He hasn’t gotten to the buffet yet; he is very busy right now in the new restaurant we just opened, an Italian restaurant called Bacio. Pretty soon he’s going to move from there to significantly improving the quality of food at the buffet.

The last I read, Dirk Arthur was on an interim contract, into the autumn. What’s his status going forward?

I think he had a six-month contract. I’m not quite sure when it expires. We’re really quite happy with Dirk Arthur. But we don’t have any particular plans one way or the other. We’re just happy to have him.

How are you able to incorporate Let’s Make a Deal without significant interruption? What kind of infrastructure is involved with having a TV show where Bodies and Titanic used to be?

That’s the pavilion space. It’s 55,000 square feet. It was really sort of custom-made for this kind of a production. We really don’t have much disruption. We have a really large property – 34 acres and we have plenty of space for the additional traffic that is being created.

We welcome the traffic. A little bit of commotion is fun in a casino. It’s actually funny because [contestants] come in these great costumes, walk in and out. We have some major events planned in the pavilion but it turns out that the taping of the first 50 shows will be complete by the time we need to [switch].

You’ve outlined a very ambitious, multi-phase program of changes. How are you going to execute all of that on $175 million, considering how expensive construction and renovation have become in Las Vegas?

Two things. One is, because of the current economic conditions, we are getting at least 30% discounts on all material and all labor. So we only pay $70 million for something that costs $100 million. If we were building this two years ago, it would have been a very different story.

The second aspect to that is that, as you undoubtedly know, a lot of construction projects here in Las Vegas are done with little regard for budget and sometimes people end up overspending. We can’t afford to do that, so we have to make sure that every dollar that we spend counts as $5.

So we are being very cautious and very smart and very careful about making sure that every dollar that we spend, we have an opportunity to impress the customer. And the combination of that and the fact that we’re getting unbelievable bids for the work means that if we announce a $150 [million]-$175 million project, it’s really equivalent to spending $300 million-plus.

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Can John Ensign disown his dad?

Posted At : September 16, 2009 11:39 AM | Posted By : D McKee
Related Categories: Detroit,MGM Mirage,Regulation,Politics,Kansas,Taxes,Technology,Illinois

Sen. John Ensign (R-NV) finally has achieved distinction within the Senate -- albeit in a manner of which he's surely never dreamt. Citizens for Ethics & Responsibility in Government* has named Johnny Casino to its Most Corrupt Members of Congress list. It's an elite club in which he'll find six fellow Republicans and eight Democrats.

This calls for an awards-acceptance speech and, like so many before him, Sen. Ensign couldn't have done it without Dad. CREW's citation reprises the role played by recent Kansas casino aspirant Mike Ensign, who once upon a time ruled Mandalay Resort Group: "Sen. Ensign’s parents paid Ms. Hampton and her family $96,000 after they had learned of the affair. Mr. Coggins [the senator's attorney] insisted the payments were not made from campaign or official funds, nor were they related to any campaign or official duties. Rather, he explained, the April 2008 payments were 'gifts made out of concern for the well-being of long-time family friends during a difficult time.' Each of Sen. Ensign’s parents made out four checks in the amount of $12,000 to Cynthia Hampton, her husband and two of their children. [emphasis added] Sen. Ensign’s office claimed the alleged $25,000 severance payment was part of his parents’ $96,000 'gift.'"

So, in case your son doesn't show appropriate gratitude, let me say, thank you, thank you, thank you Mike Ensign for smearing feces all over the casino industry's image at the precise moment that new (and very conservative) jurisdictions are opening to it. And if you're MGM Mirage CEO Jim Murren, you might want to have your accountants vet the old Mandalay corporate books, just to be doubly sure there weren't any "patterns of generosity" back around 2002, when Sen. Ensign is widely believed to have had a prior affair. (The identity of his alleged mistress is no secret around Vegas, by the way.)

For all the senior Ensign's labors in the gaming industry, he's likelier to go into the history books as the bagman and enabler for his son's sexcapades.

Sen. John Ensign believes out-of-wedlock births should be "somewhat stigmatized." But out-of-wedlock sex? His position on that is more "nuanced," shall we say.

(* Yeah, yeah, I know: Ethics + responsibility + guvmint often seems oxymoronic, especially in Nevada, but we're working on it. And the senatorial Twitter feed actually springs from the satirically fecund mind of Andrew Kiraly.)

Speaking of Mike Ensign, what the heck was Kansas Lottery Executive Director Ed Van Petten doing playing the role of media-shy Ensign's personal spokesman? In a literally incredible statement, as paraphrased by The Associated Press, Van Petten said of Ensign and ex-Mandalay sidekick Peter Simon: "they didn't like the fact that the Lottery owns the new gambling under Kansas law — or the 27 percent share of revenues reserved for state and local governments."

Bullshit. Casino ownership by the Lottery has been part of the deal from Day One. As for the tax-rate malarkey, Mandalay Resort Group co-owned the Grand Victoria riverboat in Illinois, which -- in 2003 -- became eligible for a top-tier tax rate of 70%. In Detroit -- again on Ensign's watch -- MotorCity's tax rate went to 24%. In neither instance did Mandalay stalk out of town in a state of high dudgeon.

So the notion of Ensign Sr. falling into a gentlemanly swoon at the prospect of a 27% rate just doesn't wash. Either he and Simon knew this going in and are now prevaricating -- via messenger boy Van Petten -- or they're doofuses who failed to perform due diligence on the Kansas market. Which reputation would they prefer?

The truly inexcusable Van Petten further went on to apologize for his own state's oversight apparatus, saying, "Basically, [Simon and Ensign] just didn't like the regulatory makeup." Well too bad for them. It comes with the territory. What Van Petten should be saying is that if a couple of unemployed ex-Strip casino executives don't like the way Kansas does business, they never ought to have set their Gucci loafers in the Sunflower State to begin with. Or, in the immortal words of Law & Order's Jack McCoy:

"If you're gonna play stickball in Canarsie, learn Brooklyn rules."

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No more "free" play?; Sahara sleaze; Donny & Tina; Criss F. Angel

Posted At : August 31, 2009 03:29 PM | Posted By : D McKee
Related Categories: TV,Illinois,MGM Mirage,Sahara,Tribal,Current,Dining,The Strip,Cirque du Soleil,Entertainment,Harrah's,Taxes

In a decision that could have wide-ranging implications, Foxwoods Casino Resort and Mohegan Sun have been ordered to count (and pay taxes on) "free play" coupons as though they were revenue. This isn't a sock-it-to-the-players move like the one the Hawaii Legislature just pulled, taxing any money won at a casino (even if it's lost right back and then some). However, the ramifications for consumers if free-play coupons are targeted for taxation are discouraging. Play 'em while you've got 'em.

That stale "sleeping giant" analogy has been dusted off (and I use that verb advisedly) for some pimpery of the Sahara. On the glass half-full side, classy and romantic dinner spot House of Lords has been revived. It used to be a perfect place to take your Special Someone and hopefully will remain so. It's just off the main casino floor -- the most Moorish-themed part of the Sahara and the best "retro" experience to be had in town. (Almost everything else of newer vintage is bland grind-joint crud that needs to go.)

As for the empty half of the glass, that'd be the news that owner Sam Nazarian continues to go downmarket with a vengeance. Because nothing says "classic Vegas" like a tattoo parlor and a biker convention. Worse still, the tramp-stamp place will be in the otherwise elegant main lobby, with extended weekend tattoo-ing times ... since you never know when you want to do something you'll regret the rest of your life.

This "desert jewel rich with history and nostalgia" will continue that tradition with "a wet wife-beater contest, bikini tricycle races, a bourbon paired beef dinner with leatherwear fashion show, and an all-you-can-eat beer fest BBQ with one lucky rider winning a 2009 Harley Davidson Cross Bones bike." It's probably just a matter of time before Nazarian converts the big rear parking lot to a trailer park, too. That's Sam Nazarian for you: "class" with a capital "K."

"Tina Sparkle," flanked by Donny Osmond (evidently still in his pajamas) and Marie, who's looking damn fine from here.

It's old news that Donny Osmond is going to be on the next season of Dancing with the Stars, but I hadn't known he was going to be paired with Aussie Kym Johnson. The latter is known to my Better Half and I as "Tina Sparkle" (it's a Strictly Ballroom thing), which would make for great DWTS levity next season, except ...

... for the soul-crushing news that the gorgeous and talented Cheryl Burke has been twinned with the repulsive (and potentially prison-bound) Tom DeLay, one of "Casino Jack" Abramoff's band of Beltway scoundrels. (Was scum-tastic sleazemeister Rod Blagojevich not available?) Bad luck for Cheryl, good news for DeLay because Ms. Burke could be matched with a tree stump and get aforesaid stump into the final three. If she could carry a woodpile like Cristian de la Fuente to the finale, DeLay should be easy lifting. It looks like he's got the requisite arboreal quality.

Does Criss Angel have compromising photos of high-ranking MGM Mirage executives? The company's "branding" him now, evidently having convinced itself that Believe is beyond wonderful ... and never mind that 11-year-old O regularly outdistances Believe in ticket sales by several country miles. Having sunk $85 million into this Cirque du Soleil turkey, MGM is evidently going to stick with it until the last dancing rabbit is hung.

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Good luck for Illinois casinos

Posted At : August 27, 2009 01:49 PM | Posted By : D McKee
Related Categories: Regulation,Taxes,Technology,Illinois

Turns out that it's not so easy to shower the Land of Lincoln with 45,000 video poker machines ... especially when no money has been allocated to regulate the process:

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