Casinos in Macao blew way past expectations, raking in $1.6 billion last month (a 70% increase). Stanley Ho‘s SJM widened its lead on Las Vegas Sands, although the latter had more market share (20%) than MGM Grand Macau and Galaxy Entertainment‘s several properties combined. Still, comparing Sands’ market share to those of competitors Wynn Macau and Melco Crown Entertainment (15% and 14%, respectively), it continues to be difficult to be persuaded by Sands’ “Big is More!” strategy, as continued addition of capacity doesn’t appear to be translating into commensurately increased market share.
(And is Sands actually offering to pledge its Singapore casino against restructured debt … or merely projecting a better debt-to-cash-flow ratio once $5.5 billion Marina Bay Sands opens? [The latter, most likely.] It Resorts World Sentosa is any indication, Sands execs had better brace themselves for lower-than-expect numbers.)
Speaking of Wynn, congratulations to longtime design associate Roger Thomas on being tapped to design the green room for this year’s Oscar ceremonies. ‘Cept that it won’t be green; Thomas is going with a black-and-white look, inspired by old Astaire & Rogers musicals. The Academy has chosen well.
Florida legislators seem to be headed in all directions with regard to their next move in their protracted compact negotiations with the Seminole Tribe. If, as they hope, the National Indian Gaming Commission intervenes to shut down the Seminoles’ renegade version of blackjack, it is presumed the tribe will be more tractable to Tallahassee‘s demands. Also, it will be interesting to see what the near-term effects will be of relaxing a usurious 50% tax on private-sector slot houses to a merely burdensome 35%. Some accuse ex-Gov. Jeb Bush of pushing for the higher tax as a circuitous way of killing the casino business in Florida. If so, he damn near succeeded.
Leaving aside the issue of whether Las Vegas Sands is the right company to develop resort casinos in Florida, it’s a fascinating question as to whether casino-based resorts would be the game changer the hitherto-disappointing Sunshine State market needs. Of course, Vegas-style casinos in someplace like Miami would mean having to allow Vegas-style game offerings at the Seminole properties. Which would put the Lege right back at Square One and render current compact talks — such as they are — an exercise in futility. Once you let the Class III genie out of the bottle, there’s no more telling the Seminoles what they can and can’t have.
Their horse having fled, the grand poobahs of Atlantic City debate whether or not to fix the barn door … or, in this case, the Boardwalk. Major casino owners seem to be absent from the discussion, with Revel Entertainment Group being a noteworthy exception.
Harrah’s gets off. The casino giant’s punishment for illegal, on-the-sly remodeling work at six Strip hotels? Oh, merely 26 dimes. Yeah, that’ll really teach them a lesson. It’s less of a slap on the wrist than a big, sloppy kiss. If at time you get the impression that the casino giants dictate policy to the government, you’re not alone.
