MGM cuts the cheese; Adelson has a heart

Earlier this week MGM Resorts International made a flatulent public-relations move. It offered, in lieu of siccing process servers on some 1,000 Mandalay Bay Massacre victims, that it would donate $500 each to charity. That’s right: A company that made $2 billion in profit last year is offering a few thousand in recompense. As one commentator put it, “A failing of the corporate mindset is that once lawyers are consulted, their advice is doomed to be followed. PR, your marketing people and your customers could be screaming in your face that what you are going to do is the stupidest thing in the history of free enterprise, a disaster on an untellable scale. But you’ve paid for the legal advice so by goodness you’re gonna follow it!” And never mind that, had MGM personnel been doing their jobs Stephen Paddock could have been stopped before he sprayed festival goers with high-powered rifle fire. No, the victims are to blame for having simply been there. MGM also stipulates that charity chosen be one that “supports survivors or families of slain victims.”

Victims’ attorney Robert Eglet dismissed the overture as “just more outrageous conduct by them.” MGM maintained that “The money spent on personal service of process — up to $250 per person — could be better directed to do some affirmative good.” If the offer is refused, process servers would “courteously and respectfully” slap people with legal papers, a move that is never courteous nor respectful. “We understand that being served with a lawsuit can be difficult. We believe that donating funds to a 1 October charity or another appropriate cause makes more sense than spending money on personally serving individual plaintiffs,” said the company, somewhat patronizingly.

Although Las Vegas attorney Aviva Gordon called the move “an attempt to do some damage control on the pretty unpleasant narrative they have of suing the victims,” the damage is done and MGM can’t walk it back short of dismissing its own suit. Crisis-management consultant Eric Rose says MGM should have split the baby: “The time to have made the million dollar charity donation offer to everyone they are suing was when they announced the litigation.” Or maybe not sued the victims. Anybody think that was a good idea? Bueller? Bueller?

* Caesars Entertainment doesn’t have any property in Macao and is a long shot for a casino license in 2022 (barring the unlikely possibility of Beijing smiling on additional casino operators in the enclave). However, just to be safe, it has renewed the Flamingo and Cromwell trademarks in Macao. After all, if concession are re-bid or expanded, Caesars would be a leading candidate, all the more ardent for having passed on the market when it originally opened to outsiders.

As for Japan, analyst Cameron McKnight of Credit Suisse notes that local governments are pushing for majority ownership of casino megaresorts (something that won’t go over well with Sheldon Adelson). He adds that Yokohama has basically taken itself out of the running but Osaka remains very much a prospect.

* Speaking of Adelson, his Palazzo is putting the finishing touches on a top-to-bottom renovation. The casino area, which was basically a big barn o’ gambling (below), has effectively lowered its ceiling by the installation of decorative, overhead ribbon. Two escalators have been removed from the casino area and transferred to the cavernous, Mussolini-like hotel lobby. Using almost every casino buzzword in the lexicon, Palazzo CEO George Markantonis said, “A culmination of nearly two years of work, we have touched nearly every aspect of the guest experience. Beginning with the casino, which has been reimagined from floor to ceiling, and continuing to the resort’s refreshed suites, the Palazzo provides a fresh approach to Las Vegas luxury.”

The Las Vegas Sun has the details on the new bars and nightclub. The suites, impressive to begin with, “ave been refreshed with a lighter, brighter aesthetic while maintaining a sense of luxury.” Said CMO Marcy Miles, “the master plan for the Palazzo is sophisticated elegance for those who are looking for that more refined experience.”

Proving that somewhere in there beats a heart, Adelson is hosting the second annual Summit 18: The Movement in Action convention, a program to address homelessness among America’s youth. Nevada Partnership for Homeless Youth Executive Director Arash Ghafoori said, “For a region our size to have this large of a problem demonstrates not only tremendous need, but challenges with service delivery and community coordination … We appreciate the partnership of Las Vegas Sands to join with NPHY as the catalysts for this comprehensive youth homelessness effort.” (Only Los Angeles and San Jose have more homeless youth than Clark County.) Added Las Vegas Sands spokesman , “We have pledged significant involvement to make an impact in youth homelessness, and we encourage our colleagues in the business community, and local civic leaders, to do the same by joining this year’s Summit, and learning about how they can take a role in the plan.” Thank you, Sands

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