A giant, unstoppable machine, Global Gaming Expo is opening as planned today, despite last night’s bloodbath at Mandalay Bay. G2E officials said they were “closely monitoring the horrific 
events” of last night, which I hope translates into a higher security profile at G2E, where any nut with a gun could wreak serious havoc. Said American Gaming Association President Geoff Freeman, “The AGA and Reed Exhibitions will be in constant contact with local and national law enforcement and our host, Las Vegas Sands. We will closely monitor the situation and safety remains our priority. The gaming industry is a tight-knit community and Las Vegas is the beating heart of our operations. The AGA and Reed Exhibitions will offer our full assistance as the city recovers, and we will strive to honor the victims of this tragic event.”
Dare we suggest that an impromptu keynote panel on casino security would not only be thoughtful but imperative? There’s no point in going on as though it were business as usual outside the Sands Expo Center?
* Fans of the Moulin Rouge will be relieved to note that there is finally a reliable savior in sight for the grounds of the barrier-breaking hotel casino (of which almost nothing, alas, remains). Clark County is entering the bidding war for the land, a matter that is presently before the courts. Unlike some of the previous and current suitors, the county has reliably deep pockets and 
would have to respond to its constituency if nothing were done with the site. As county spokesman Dan Kulin says, “If we were to acquire the land, we would recognize the historical significance in some way.” One possibility would be to permanently house county staffers there rather than in leased offices, as is presently done. The county is offering $5 million, which seems pretty george given the condition of the Moulin Rouge grounds,
Obviously, if the county takes possession, gambling at a rebuilt Moulin Rouge is out of the question, but that was never a realistic option. The area is still blighted, the only major neighbor being the offices of the Las Vegas Review-Journal. Of the two other bidders, the highest offer ($6.2 million) comes from Real Estate Management Services, but it has a track record of being all hat and no cattle, while receiver Kevin Hanchett‘s proposal of “an African American cultural center and museum, a hospitality training facility, a motel, a shopping center and eventually, a revival of the Moulin Rouge hotel and casino itself” seems both ambitious and impractical. If there was ever a time to think small, the Moulin Rouge is it. We wish Clark County good luck in court.
* Speaking of development, the tax-reform changes issued by the “Big Six” GOP leaders in Congress contain some incentives. Not only would the corporate rate be reduced to 20%, according to 
the AGA, companies could write off the cost of new investments in depreciable assets other than structures made after September 27, 2017, for at least five years. That would, we hope, incentivize capex maintenance in casino-hotel assets. The current rate for R&D-related tax credits would be maintained, but companies would find it easier to offshore their assets, which would be taxed at a lower rate. Given the need for technological innovation in the casino world, we’d advocate a greater R&D credit, though we think most if not all of these emendations would be welcomed by Big Gaming.
* Macao beat the Consensus Metrix estimate last month, as gambling revenues rose 16%, impressive in light of the Typhoon Hato-related disruption. Looking ahead, Deutsche Bank analyst Carlo Santarelli is optimistic, writing that “adequate VIP liquidity and strong advanced bookings bodes well for October.”
