Caesars branches out; Atlantic City’s apron strings loosened

Caesars Entertainment CEO Mark Frissora is beginning to put his stamp on the company (unless you count imposing parking fees and that was just copying MGM Resorts International.) Caesars has announced a joint venture with Meras Holding to build and manage two non-gaming hotels on a man-made island in Dubai. The hostelries are part of a larger, $2.2 billion project called Bluewaters (an ironic name when you consider Dubai’s atrocious environmental problems). The man behind Meras is Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai and Prime Minister of the United Arab Emirates. Frissora presented it as a low-risk venture, telling the Wall Street Journal, “This is a good way for us to get into places that we haven’t been to. The capital is paid out by someone else. They do the investment.” Caesars, by implication, laps up all the gravy.

At the same time, Caesars is branching out in California, inking a deal to build and manage Harrah’s Northern California, 30 miles southeast of Sacramento. The casino will be the property of the Buena Vista Rancheria of Me-Wuk Indians, the fruit of a compact signed in 2016. Its main competitor will be Jackson Rancheria Casino Resort. The $168 million project will house 950 slot machines (although the Buena Vista tribe can go up to 2,000 machines per their compact) and 20 table games, spread across 25,000 square feet. Other amenities will be relatively minimal, perhaps on hold until it’s seen how well the casino performs. A 2019 opening is expected.

* New Jersey Gov. Phil Murphy (D) isn’t relinquishing state control of Atlantic City but he’s loosening the reins a bit. Chris Christie crony Jeff Chiesa was overseeing the Boardwalk for a cushy $400/hour. No more. Murphy has cashiered Chiesa and transferred Atlantic City to Lieutenant Gov. Sheila Oliver (D) who, as an opponent of the Christie takeover, can be expected to take a more relaxed attitude toward her foster child. Murphy played his cards close to the vest, saying, “The actions we are taking today will ensure we are working in full partnership with the city to ensure economic growth and empowerment for all Atlantic City residents.” There was also much talk of state and city “moving in the right direction” together.

New Atlantic City Mayor Frank Gilliam (D) was full of praise for Murphy’s transfer of power. He clearly did not share Christie’s opinion that “If you compare the results Senator Chiesa has gotten from what he billed with what you all have paid to the people who have been running this city into the ground, Senator Chiesa is the biggest bargain in the world. You all should wish he stays here for the rest of his life.” At $400 an hour? That’s a lifetime appointment Atlantic City would gladly do without.

* Casinos would be bereft without peel-and-eat shrimp at the buffet. Now this isn’t much of a bully pulpit at S&G but I’d like to use to call upon the casino industry to boycott Mexican shrimp. Why? Because our neighbor’s fishing industry uses gill nets that trap the perilously endangered vaquita porpoise, whose numbers in the wild are down to 30. Clearly this is a race between preservation and catastrophe. There may be only so much the individual consumer can do but casino companies buy in bulk. Speak strongly to the Mexican government and your seafood providers, sirs, and they’ll listen. It’s a chance to put all that talk about “sustainability” into practice. The consequences of not taking action are too depressing to contemplate.