It’s a measure of how lucrative nightclubs are that casino companies are willing to run the attendant risks. (Put another way, by contrast to nightclubs, casinos look as staid as banks.) Case in point, MGM Resorts International‘s half-million-dollar settlement with the Nevada Gaming Control Board over repeated instances of drug dealing and prostitution at House of Blues‘ Foundation Room. In response to a two-month NGCB undercover investigation, MGM sacked several Foundation Room employees and acceded to the hefty fine. (Rick Velotta has the salacious details.) The company also struck a posture of high dudgeon, stating, “The intolerable activities discovered by investigators are obviously completely contrary to the type of luxury resort our company strives to run.”
Judging by the frequency and freedom with which cocaine, Ecstasy, pot, Lortab and trollops were flowing through the Foundation Room, oversight could charitably be described as lacking. We hope MGM is tightening oversight of all its nightclubs, even at the risk of being seen as a party pooper. After all, we’re on the eve of pool season, with its “anything goes” atmosphere.
Jackie Gaughan, 1920-2014. Tributes continue to roll in for the man synonymous with Glitter Gulch. Gaughan is revealed to have spent his final days in hospice care, to which he was only briefly subjected. The cause of death is given as pneumonia and just plain old age (reportedly complicated by dementia). Gaughan exited this vale of tears in his sleep, a peaceful exit he’d more than earned with his years of good deeds. Alas, it was his tragedy to briefly outlive the El Cortez poker room of which he was so beloved.
Speaking of family businesses, Station Casinos had cause for celebration in 4Q13, as revenue rose 8%. This enabled the company to book a tidy little profit of $26 million. Station 
is also just short of a year of monthly cash-flow increases, which bodes well for the health of the locals gambling market. A modest amount of capex is going toward things like connecting Red Rock Resort with the nearby Shops at Summerlin. CFO Marc Falcone put a positive spin on slow results from Ultimate Poker, saying “there is opportunity for growth.” He added that public awareness of legalized Internet gambling remained low in New Jersey, where Station is affiliated with Trump Taj Mahal. However, it’s Problem Gambling Awareness Month in the Garden State, so perhaps this isn’t the exact moment to increase consciousness of Internet play.
Foxwoods Massachusetts has optioned 30 acres in Fall River, bringing its southeast-region proposal a big step closer to reality. A host-community agreement is the next step, followed by a local referendum. The owner and location of the site are being kept secret, which may complicate negotiations a bit. Rival KG Urban‘s New Bedford project is just so much noise at this point, so Foxwoods would appear to have the momentum.
