Under fire for the low property valuations it placed on Pinnacle Entertainment‘s River City and Caesars Entertainment‘s Harrah’s Maryland Heights, the St. Louis County Board of Equalization backpedaled … sorta. They accepted County Assessor Jake Zimmerman‘s increased valuation for soon-to-expand River City. However, the board stood by the 57% cut it make in Zimmerman’s assessment of the Harrah’s casino. It also gift-wrapped an excuse for a Caesars mouthpiece, who threatened “less in the future by way of improvements and amenities.” In other words: ‘Raise our assessment and we’ll pull the same crap here that we’re already doing in Las Vegas.’
In Caesars’ defense, its St. Louis-area casino saw revenue fall 8% in 2010 and River City continues to cut into its market share. But Caesars’ argument that it’s just not cricket to value Harrah’s Maryland Heights comparably to Ameristar Casinos‘ nearby riverboat in St. Charles looks, at first glance, like a crock. The former grossed $272 million last year, compared to $282 million for Ameristar St. Charles, which was down 6% for 2010 and is three years older than the Harrah’s facility.
Next, Wynn Manila? The Japanese company that’s Steve Wynn‘s sugar daddy, Universal Entertainment Corp. has a yen — 150 billion of them — for a Philippines casino megaresort. It figures it can pull $2 billion/year out of Manila, provided it opens it project in 2014. Company chair Kazuo Okada‘s masterplan is for a two-hotel, three-casino configuration that will cost at least $1.6 billion, possibly $3 billion, and he’s “in talks with investors.” Gee, now who might he try to recruit … ?
Angels fear to tread where Okada is rushing in and it remains to be seen what, if anything, Wall Street thinks of Wynn Resorts being one degree of separation away from the scandal-plagued Filipino casino industry. Tokyo-based stock analyst Takashi Oka is skeptical that Okada will succeed. But if the pachinko plutocrat needs advice, good pal Steve is only a trunk call away and, of three rival developers, only Genting Berhad is a gaming heavyweight.
G2E snooze news. My G2E ennui must be catching. Earlier today, Global Gaming Expo released a list of discounts, rebates, contests and raffles literally as long as my arm. And you thought the days of G2E wag were over? Look! Free stuff! A major international casino correspondent informs me that he has, on the spur of the moment, decided to attend G2E after all. (An irresistible room rate at the Plaza did the trick.) It’s not a harbinger of expo excitement if this particular globetrotter is reluctant to put in an appearance.
Also in attendance will be Randall Fine, of the eponymous Fine Point Group. He’d better show up: Fine’s delivering the closing address, devoted to player tracking and loyalty programs. Since Fine succeeded at Greektown Casino where many others failed, he can speak with authority to customer development. It’s not going to be like — or as funny as — Gary Loveman preaching fiscal responsibility or pooh-poohing the importance of new technology. (Yes, he really did.)
