It was a $6.6 billion rescue package that Golden Nugget CEO Tilman Fertitta received, in the form of a merger with FAST Acquisition. Fertitta’s been hard up for cash and forks over a portion of his casino empire in return for some badly needed liquidity. The deal gives FAST “voting control and ownership by the Company of approximately 31 million shares, or nearly half of all outstanding shares in Golden Nugget Online Gaming (NASDAQ:GNOG) … Mr. Fertitta will also be the company’s largest shareholder, with an approximately 60 percent interest in the company and stock valued upon the closing of the transaction in excess of $2 billion dollars.” The Nuggets will also be getting a $1.4 billion infusion of public equity capital. FAST stock hopped 20% on the news. The Bubba Gump’s, Chart House, Del Frisco’s, Mastro’s and Morton’s restaurant chains are also included in the deal, for which some feel gaming was an afterthought. However, the Nuggets have been outperforming the rest of the casino industry in recent stages of the pandemic. Public investors, take heart: 4% of the company will still be put up for sale.
A casino in Times Square? It could happen. L&L Holding Co. has pitched the idea of a $2.5 billion megaresort at 1568 Broadway, part of a larger, mixed-use development (hotel, retail, concert hall, all that jazz). Not having gaming experience, L&L is looking for a joint-venture partner (Las Vegas Sands, take heed). This isn’t the only casino being proposed for Manhattan: a Herald Square one has been floated by Vornado Realty Trust. Both developers seem to be banking on economic and political pressure to accelerate the 2023 deadline for opening New York City to full-fledged casinos. At present, L&L is proceeding, in part, with EB-5 loans from foreign investors, a business model with which Las Vegas is well acquainted.
Nebraska‘s first casino will be coming to Lincoln Race Course. The Nebraska Horseman’s Benevolent & Protective Association has filed the necessary paperwork. Plans are for a 165K square foot facility, complete with 196 hotel rooms and 1,500 parking stalls, all budgeted at $200 million. To be dubbed “WarHorse,” the tribal venture would be a considerable augmentation of the existing horse track—and a glamorous one. The hotel would tower 100 feet tall, if permitted. Developer Ho-Chunk Inc. also plans racinos in Omaha and South Sioux City. Ho-Chunk anticipates opening a temporary casino first, breaking ground on the permanent one next year, pending how soon Nebraska gaming regulations can be formulated.
Even after the direst year in casino history, Hard Rock International continues to be ‘george.’ It’s busting out a second consecutive round of bonuses for 2,000 front-line workers at Hard Rock Atlantic City. “The dedication of our team members has been crucial to driving the success of our casino resorts, and we are proud that Hard Rock Atlantic City has been able to prevail during these challenging times,” said CEO Jim Allen. At present, Hard Rock is the only A.C. casino to post year/year revenue growth, a feather in President Joe Lupo’s cap. More corporations should think like Hard Rock and reward workers before shareholders. Over at Caesars Atlantic City and Harrah’s Resort, boss Ron Baumann is out, replaced by Joe Lodise (Caesars) and Gregg Klein (Harrah’s). Both properties have reeling in recent months.
Tough luck for Harrah’s Cherokee. Gov. Roy Cooper (D) of North Carolina has inked a compact that will allow the Catawba Nation of South Carolina to build a casino near Charlotte. This is the culmination of a long struggle by the Catawba, whose cause has been championed by Sen. Lindsey Graham (R), among others. The jobs created and economic impact of the casino are expected to ameliorate the low-income/high-unemployment plight of the Catawba. Harrah’s fears the loss of $100 million in revenue per year. Cherokee Principal Chief Richard Sneed blasted the governor, saying, “The proposed Kings Mountain casino was born of an illegal act and has continued to swirl in controversy and unethical behavior.”
Sneered Sneed, “It’s disappointing to hear that the Governor felt compelled to sign an agreement that furthers this scheme and threatens the integrity of Tribal gaming everywhere. But this compact changes nothing. We continue to believe the courts will affirm the illegality of this casino and when that happens, the Catawba agreement will be nothing more than a worthless piece of paper.” The Cherokees’ legal argument hinges upon the lack of contiguousness between the casino site and Catawba land, as well as the involvement of developer Wallace Cheves, “a casino operative with a history of criminal and civil enforcement actions against him and his companies for illegal gambling.” The courts have yet to rule and the Department of Interior has to approve Cooper’s contract, although that is expected to be a low hurdle. The Catawba say their compact is “closely modeled” on the Cherokee one. Touché.
Jottings: Last year was the worst for Mississippi casinos since 1995, when the industry was fairly new. Revenues fell to $1.8 billion, most of that made on the Gulf Coast … FuboTV is buying online sports-betting provider Vigtory, with the aim of making OSB available both to Fubo subscribers and the public at large. Fubo shares leapt 34% at the report … 2020 was the worst-ever year for U.S. hotels, both in occupancy and revenue per available room. The former was 44% and the latter eked out $45.48/night. Over one billion room nights went unsold. Among top-25 markets, only Tampa/St. Petersburg notched 50% occupancy, while Minneapolis/St. Paul was hardest hit (33%). “We, along with airlines and restaurants, were the first hurt and the worst hurt,” said American Hotel & Lodging Association CEO Chip Rogers. “As most other businesses come out of this, we’re still going to be hurting for a while.” Demand is expected to pick up but not for about five months. Full recovery isn’t anticipated until 2024, with business travel being the X factor … Full House Resorts is putting $180 million in capex into its Bronco Billy’s casino in Colorado. The plan is to add 180 hotel rooms …
Many big advertisers are staying on the Super Bowl sidelines but not DraftKings. It has two 15-second spots ready to air during the Patrick Mahomes/Tom Brady matchup … When at Venelazzo, visit the new Museum of Dream Space. “Everyone comes out happy and in a better mood. You get creative and that’s what we want,” said Manager Gabriella Diaz of the digital-art exhibition … Social influencer Brian Christopher has his own, dedicated slot parlor within the Plaza Hotel downtown. The 16-slot area features the games Christopher admires most, including Cleopatra II, Dollar Storm, Lightning Zap and others. The Plaza has also introduced a dedicated Wheel of Fortune slot floor. Remember when Gary Loveman was trying to push Wheel of Fortune out of Caesars Entertainment casinos, claiming it had lost popularity? Another bad call, Gary.
