Falling out in Philly; Falling apart at Caesars

SugarHouse Casino has finally said what needed to be said: The Philadelphia market is tapped out for casinos. It’s not entirely a  disinterested stance; SugarHouse is finishing a $155 million expansion and vulnerable to new competition. But the numbers have shown, for some time now, that the saturation point has long since been reached. “Revenues will be split, resources will be strained, capital improvements will be postponed, and employees will lose their jobs as casinos cut costs,” argue SugarHouse attorneys.

Neil Bluhm‘s people also cannily point out that Greenwood Racing and Penn National Gaming may be ineligible because of their racino ownerships. (Greenwood, owner of Parx Casino, would be getting a second bite of the Philadelphia apple.) Then there’s Mr. Everywhere, Ira Lubert, who owns pieces of two casinos and would have a portion of a third. Bart Blatstein‘s The Provence casino is drawing ire from Congregation Rodeph Shalom, Friends Select School and Mathematics, and the Civics and Sciences Charter School, posing a potentially serious obstacle. Kiddies and casinos don’t mix and if that’s the perception of The Provence, Blatstein’s chances may be fading.

It’s not even been a week and already the wheels are coming off Caesars Entertainment‘s lawsuit against Massachusetts Gaming Commission Chairman Stephen Crosby. Caesars claims that the MGC’s investigation board failed to advise of a recommendation from Spectrum Gaming Group, to whom the MGC farmed out its investigative work. That’s because Spectrum made no such finding, the company says. “At the conclusion of our investigation, Spectrum submitted a draft report to the [Investigations & Enforcement Bureau] recommending that certain specified issues pertaining to Caesars’ suitability be addressed at an adjudicatory hearing, at which Caesars would be required to establish its suitability by clear and convincing evidence. Notably, Spectrum did not recommend a finding of suitability or a finding of unsuitability in its draft report,” Spectrum VP Steve Ingis. In the meantime, Crosby is taking it all in stride, telling the Las Vegas Review-Journal that “I knew that there was going to be a lot of losers, as well as some winners. This sort of goes with the territory.” Steve Wynn, meanwhile, has a few ideas for improving the regulatory process.

Not so fast! So says Greenwood Racing to Prince George’s County, contending that consultant reports have been too favorable to a rival MGM Resorts International and had “substantial issues and questions.” County commissioners will take this under advisement when they meet to select the casino on Friday. The condescending tone of Greenwood’s letter may not help its cause, however.

What’s the over/under on when MGM Resorts International will be able to start dismantling its structurally compromised Harmon Tower, the first Strip tower to be (potentially) demolished without housing a single guest? Ever.

Congratulations to the Golden Nugget Atlantic City for belatedly joining the online fray and with 77 titles, no less. Maybe this will change Tilman Fertitta’s mind about selling the place.