Golden Nugget owner Tilman Fertitta is facing trouble close to home. $30.5 million in liens have been levied for unpaid work done at $400 million The Post Oak hotel in Houston. Like Sheldon Adelson, Fertitta blames the primary contractor and his officials say they will try to get the subcontractors paid. The news comes shortly after it was 
revealed that Fertitta paid a mind-boggling 35X cash flow for the Houston Rockets. “The restaurant business, Mr. Fertitta’s primary source of wealth, typically trades in the 10-14x EBITDA multiple range, so the transaction would seem, at first blush, quite dilutive to Tilman,” writes Justin Levine. “However, there is a case for why Fertitta’s acquisition will be quite successful. A critical characteristic of the NBA is that it is a defined market with high barriers to entry – the amount of market participants stays static unless the league agrees to a new team. Hence, a team’s value is somewhat due to the non-competitive nature of the market. It is a principle [sic] reason why the value of a sports team continues to grow over time.” Another is the greening of the NBA audience, which continues to get younger. Levine adds that Rockets games provide a platform for advertising his restaurants and casinos.
As for those restaurants, an S&G source says rumors of a Fertitta sale are rampant and — this would be catastrophic — the restaurants would be rebranded. Much of the value of the Landry’s empire lies in the brands whose name recognition Fertitta has built up over the decades. However, one tourist reports “I did notice when I was downtown last week they had people scrubbing the façade and putting in new landscaping.” Most owners who are positioning their property for a sale tend to let capex go to hell, making it the next owner’s problem. If Tilman is looking for a deep-pocketed buyer he needn’t waste his breath on Derek Stevens: An official document from Pacific Casino & Entertainment Group, which plays matchmaker between financiers and Circa, touts its ability to raise casino funding via EB-5 visa programs. EB-5 financiers got hosed on SLS Las Vegas and Lucky Dragon Casino. Will they be third time lucky on Circa?
* While his unloved Texas cousin wrangles with mechanics liens, Frank Fertitta III can take heart from Station Casinos‘ 1Q14 earning report. JP Morgan analyst Joseph Greff called the numbers “encouraging,” adding, “We continue to believe that the LV locals market is on sound footing, with attractive growth for the next few years given the 
region’s population, job, and wage growth prospects.” Station, he said, was in “harvesting mode,” its investments in Palace Station and the Palms primed to pay off in 3Q19, when free cash flow is expected to be “sizable.” Greff projects 11.5% cash flow growth this year, with non-Palms locals revenue up 4%.”Palace Station renovations are complete, and importantly, came within its most recent budget.” Total Station 4Q18 locals revenue of $411 million comfortably exceeded JP Morgan estimates and cash flow of $121 million topped Wall Street consensus by $7 million. Cost controls were credited with less-than-expected corporate outlays. Now that its major Las Vegas upgrade is all but finished, will Station turn its eyes toward Reno, where two parcels are laying fallow? Forecasting Station’s next move is always difficult because the company so rarely does the obvious thing.
* For a textbook example of a “george,” look no further than Vice Media co-founder Shane Smith. The Canadian entrepreneur is flown to Las Vegas by MGM Resorts International, whose hospitality he then enjoys. And if he wins, he tips handsomely, sometimes as much as $100,000, reportedly from shrink-wrapped bricks of cash. (If it’s not true it should be.) His heavy play may be taking its toll: Two Smith-owned mansions are on the market. As for his company, it recently lost $50 million and massive layoffs are expected. An employee accused him of “fiddling in Vegas” while Vice burns. If you’re hoping to strike up a friendly chat with Smith at the blackjack table, forget it. He only plays by himself, using high-denomination “pumpkin” chips.
Smith’s gambling habit may be of some concern to the American Gaming Association. In a new broadside, it releases survey results that show 88% of Americans think gambling is an acceptable pastime and 90% are successful in tracking their casino spending. We’re worried about the other 10%. We need to get that number lower. Ninety percent of regular casino visitors said they were aware of responsible-gaming programs (good), 80% see casinos as a job creator but only 60% think it helps their local economies. That’s enough at the Election Day ballot box but it sounds like the AGA has some educational work to do.
* Gaming & Leisure Properties released fourth-quarter results, which were pretty much as Wall Street expected, except for earnings per share, which were far below company guidance. That might be attributable to GLPI’s partial write down of its Baton Rouge riverboat “which reflects general market deterioration in the region and smoking ban that went into effect in the 2Q18.”
