Wind of change; Packer “like a car crash”

There’s change in the breeze at Wind Creek Bethlehem. Former general manager Brian Carr “is leaving the organization,” replaced by Kathy McCracken, a longtime veteran of the property, which has underperformed since the Poarch Bank of Creek Indians took ownership. Not coincidentally, Wind Creek is announcing “initiatives which will further enhance the property’s position in the region.” (McCracken’s previous remit was the marketing department.) Plans include a second hotel tower—hopefully better-looking than the first, an indoor water park and an “entertainment complex.” Of the exiting Carr, CEO James Dorris said, “Brian did a fantastic job keeping the staff and employees focused and committed to the property during the time that it took for the sale to close.  We wish him well as he moves on to explore his next opportunities.” In other words, don’t let the doorknob hit you on the way out.

* As though Encore Boston Harbor hasn’t had enough issues with its slot floor, its slot-management system went down. One-armed bandits weren’t disgorging jackpots, forcing the casino to go old school and pay by hand. (Not what you want to do when coronavirus fears are at their peak.) Worst of all was the timing: Friday night, when play should be at its heaviest. The TITO system should be back online now but chalk it up as another bit of hard luck for Encore.

Speaking of slots on the fritz, Newcastle Casino in Oklahoma is dusting off the hoary “mechanical malfunction” excuse to void a $8.5 million jackpot won by patron Maribel Sanchez. The latter had the presence of mind to snap several photos of the jackpot message before the machine inexplicably went dark. Sanchez has hired legal counsel, a good move, because we’d be surprised if Newcastle pays. Isn’t it remarkable h0w these jackpot disputes are invariably resolved in the casino’s favor? And is it any wonder that players regard ‘the house’ with antipathy?

* James Packer is called on the carpet this week as Australia gaming regulators meet “to consider media reports that Crown [Resorts] used agents linked to drug gangs, human traffickers and money launderers to attract wealthy Chinese gamblers to its casinos.” At risk is Crown’s license in Sydney, a judicial action coming at a time when coronavirus-motivated travel restrictions are already weighing upon Crown’s business … as though it weren’t bad enough that high rollers have been scared away from Packer’s Perth and Melbourne casinos for fear of adverse media scrutiny. Both Packer and erstwhile partner Lawrence Ho will be called as witnesses. (Although Ho may not cooperate.) Understated Global Consulting & Development boss Roy Wheatley, “It’s going to be a bit like a car crash. People won’t be able to look away.” Indeed, media heir Packer seems to careen from mishap to misfortune, with events never moving in his favor. In the case, the use of VIP junkets as Trojan horses for money laundering is one of the main concerns of industry overseers. “Infiltration” by organized crime is another worry.

Money laundering is the primary focus of the probe, with the suitability of Melco Resorts & Entertainment to operate in Australia a secondary concern. Packer and Ho could testify as early as today. Expect questions about a possible beneficiary relationship between Melco and mobbed-up old Stanley Ho. According to Bloomberg, “Dozens of entities and individuals that are deemed associates of the Macau casino kingpin have been barred by the New South Wales casino regulator from owning an interest in Crown, directly or indirectly.” Packer is putting the best face on things, saying he’s happy to cooperate and will do whatever he can to expedite the inquiry. Packer may have thought life would get easier for him when he quit doing business in the U.S. but that has been anything but the case.