Lion attempts to devour Caesar; Louisiana casinos to come ashore?

That proposed takeover of Vici Properties by MGM Growth Properties looks stranger by the day. Since it would be a transaction between two landlords, it would not require Nevada regulatory approval. But it would not, contrary to its initial appearance, give MGM a near-monopoly on the Las Vegas Strip. In fact, the only Strip casinos to be affected would be Caesars Palace and Harrah’s Las Vegas. Despite the incongruity of MGP owning casinos managed by Caesars Entertainment, Fitch Ratings‘ Alex Bumazhny says, “There should not be any conflicts of interests in theory. Caesars’ leases, and other agreements such as the right of first refusal on certain assets, should dictate the nature of the relationship between Caesars and VICI or MGP.”

What would MGP add to its portfolio? Nothing but Caesars Atlantic City, Bally’s Atlantic City, Harrah’s Lake Tahoe, Harveys, Horseshoe Hammond, Louisiana Downs, Bluegrass Downs (Kentucky, a canny hedge against potential racino expansion there), Horseshoe Southern Indiana, Horseshoe Council Bluffs, Harrah’s Council Bluffs, Horseshoe Bossier City, Harrah’s Reno, Harrah’s North Kansas City, Harrah’s Metropolis, Harrah’s Joliet, Horshoe Tunica, Tunica Roadhouse and Harrah’s Biloxi. That’s a lot of properties where Caesars employees would be working, by extension, for their corporate archrival. And the addition of Caesars Atlantic City and Bally’s to Borgata‘s market share in Atlantic City might require the divestiture of a casino — depending on how New Jersey regulators square the circle — in what is not exactly a seller’s market. This story is a moving target and we’ll do our best to keep it in our crosshairs.

* Louisiana legislators are at least a dozen years behind the curve but they’re catching up. A group of solons has proposed moving the Bayou State’s riverboat casinos to (safer) dry land. The downside is that the recommendation is accompanied by a proposed hard cap on gaming positions: 2,365. (It could be worse.) Currently, Louisiana casinos operate under a ludicrous law whereby “the casinos are required to have an operating paddle wheel and a maritime crew though the riverboats don’t actually sail.” Since casinos generate one of the largest sources of tax revenue — $906 million in 2016 — in the state, they’ve got friends in high places, like state Sen. Ronnie Johns (R), who’s behind the bring-the-casinos-onshore push. The Riverboat Economic Development & Gaming Task Force would, if given its way, allow casinos to move 1,200 feet away from the nearest body of water, inside the levees but outside the heart of the cities. That’s the intent, anyhow.

In order to get casino-reform legislation to the floor, Johns punted on sports betting, preferring to focus on the possible. Cutting taxes on free play was also mulled but ultimately dropped in favor of the status quo. Johns left that one on the casinos’ doorstep, tasking them with coming up with a solution that eliminates the free-play tax without nixing the $18 million it brings the state every year. Solomonic wisdom will be required.

* After much delay, Cordish Cos. and Greenwood Gaming are ready to move forward on their Philadelphia casino. Instead of, as previously planned, incorporating an existing Holiday Inn into the project, Cordish and Watche “Bob” Manoukian have been given permission to demolish it. In its place will arise five restaurants, at least one nightclub, a parking garage and — of course — a casino. There will be a small (205-room) hotel component in the $600 million project, which should open in 2020. There’s also been a name change, Philadelphia Live having apparently been dropped in favor of Stadium Casino, a nod to the project’s environs.

* Genting Group is doubling down on its megaresort investment in the Catskills. It’s adding a $150 million water park that will bring the total project cost to nearly $1.1 billion. The owners and operators of the park will be those of nearby Camelback Lodge. Cost aside, this move makes a certain sense. New upstate casinos have struggled in part because they’re offering plain-vanilla gambling, already in plentiful supply. Genting is working to differentiate itself in the marketplace. The inspiration for the amenity will be the “architecture of indoor waterparks in Europe,” including a “barrel-shaped transparent Texlon roof that will bathe visitors in natural sunlight throughout the year.”

According to the Times Herald-Record, “The water park is named for Camelback Resort’s fictional character Sir Kartrite Van Der Berris – an explorer, adventurer, inventor, aviator, submariner, tinkerer, thrill-seeker and teacher of worldly things. Images of his adventures and tales will adorn the property.” The amusement park will sprawl across 25 acres. Six hundred permanent jobs are promised. Genting is going out on a limb with Resorts World Catskills, so let’s hope this tips the balance in its favor.

* Station Casinos continues to hesitate to develop its acreage in Reno. Could it be fear of earthquakes? But seriously, by waiting while Reno ramps up economically, Station is leaving money on the table.