“The fix is in”; MGM’s youth movement

Hard Rock International CEO Jim Allen is trying to have it both ways in Greece, saying that Mohegan Gaming & Entertainment hasn’t been awarded the Hellenikon casino concession but that “the fix is in.” Well, is it or isn’t it? “Mohegan hasn’t been officially awarded the license because the appeal process needs to be completed. The government has yet to open the technical and financial offers. So no one, in fairness to Mohegan, has been confirmed as the winner at this time,” said Allen, trying to keep hope alive. He does allow that Hard Rock has been disqualified by the government, for reasons to which he takes umbrage, such as a lack of financial wherewithal, mainly because a bank guarantee was allowed to lapse, which Allen says Hard Rock self-reported.

“We have the strongest financial balance sheet in the industry. We’re the first gaming company to achieve and maintain an investment grade rating from Moody’s, Standard & Poors and Fitch,” said Allen. “Bank of America supplied a highly confident letter supporting our ability to finance this project, and with our group of companies being one of the lowest leveraged in the industry, we find it difficult to believe that Bank of America’s recommendation was insufficient.” Without going into technicalities, the dispute devolves into a did-so/did-not argument between Allen and the Greek government. The CEO won’t curry any favor with remarks about “the corruption in the process.”

Allen says his company’s project would have been as expensive and large-scale as MGE’s—but has been chary with specifics. His pitch boils down to trusting Hard Rock’s (undeniably impressive) track record. He hit out at his competitor, saying, “Mohegan Sun Pocono is the entity with the most fines in Pennsylvania gaming history, $1.8 million. No one even comes close to that and there were allegations of money laundering and other crimes. And none of that was disclosed on the application either when there were questions specifically requesting such information. Another reason for automatic disqualification.” If this were the U.S. he’d be right about that. But it’s Greece and Allen holds out little hope for his appeal, saying that the government has predetermined the outcome. He threw a Hail Mary pass, saying, “Our hope is that the Prime Minister and other officials were not aware or involved in this situation and that [they] will make the appropriate corrections to ensure a fair process.”

* The Las Vegas Strip is riding a decade-long rise in gambling revenue, to the point where numbers are starting to rival the all-time peak of 2007 (once viewed by some of us as unrepeatable). What’s behind the numbers? For one thing, sports books were up 9.5%, “erasing fears that the spread of legal bookmaking nationwide was going to exact a toll,” according to James Rutherford.

Get ’em while they’re young! No, seriously folks, there is a worrisome shortage of young workforce talent in Japan. Nor has this escaped the notice of MGM Resorts International. It has brought in students from Kansai Gaidai University for a 14-day immersion in the how and why of running casino megaresorts. Could jobs in Osaka wait for these carefully groomed youngsters? Only time will tell. That being said, they could have few better shepherds than President of Global Gaming Development Brian Sandoval, one of the few class acts in politics we have ever met.

Kudos also to MGM for being chosen as one of the “Top Corporations for Women’s Business Enterprises” for the seventh year running. The idea is to mentor women- and minority-owned businesses to develop and grow, and become ongoing partners with MGM. According to the company, “The annual list is the only national award honoring corporations for world-class supplier diversity programs.” Bravo.

* Never will we doubt DraftKings‘ oddsmaking perspicacity after it called the Oscars almost right down the line (admittedly making for a numbingly predictable ceremony). OK, so they missed two biggies—Best Director and Best Picture—both of which went to slight underdog Parasite but only by the slimmest of odds. It didn’t pay to bet long shots. Maybe some prop bets are in order. Who’da thought Netflix would win more Oscars (two) than Little Women (one) and that viewers should have taken the over on Greta Gerwig reaction shots—or the number of obscenities bleeped from Eminem‘s surprise performance, while the audience tried desperately to groove. (“Look! We’re hip, America. No, really!”)

Jottings: Bad news for Singapore, another coronavirus outbreak, this time from a corporate meeting. The good news (if you’re Sheldon Adelson) is that it was held at one of your competitors … While Macao casinos are nominally closed for 15 days, Wynn Resorts CEO Matt Maddox says it’s too soon the say when they’ll reopen. “It could be two weeks or two months,” added Las Vegas Sands President Rob Goldstein … Using coronavirus as his excuse, Lawrence Ho is skedaddling from a deal to buy an extra 10% of Crown Resorts, an acquisition under Australian regulatory scrutiny. Coronavirus, yeah that’s the ticket … $10 million in renovations later, Lucky Dragon has opened as Aehrn Hotel. Better luck this time … Casino-based money laundering is becoming a hot issue in Ontario. There were 945 investigations in 2017, some 2,266 in 2018 and 2019 is expected to chart even more … The Flutter Entertainment/Stars Group merger is on hold while British regulators weigh it. If consummated it would make the combined companies the world’s biggest gambling operator … A little birdie tips Boyd Gaming as a buyer for Ocean Casino Resort in Atlantic City. However, Twin River Holdings is making aggressive noises about the Boardwalk, so keep an eye on them.