Bunny blues. Given the travails affecting Hugh Hefner‘s eroding PEI empire — including a recent abandonment of its Chicago offices and spinoff of its Cyber Club — it was only a matter of very little time before the Palms’ franchised Playboy Club got rabbit-punched. However, this divestiture appears to be the handiwork of Palms owners Leonard Green and Texas Pacific Group. Although the licensing fee collected by Playboy was relatively small ($5 million from Chinese and Las Vegas operations combined, at the outset), a couple of million a year is probably more than Palms boss Joseph Magliarditi can afford to pay as the debt-strapped resort moves aggressively downmarket. Of course, this could win TPG and Green brownie points from wannabe Porn Censors in Chief. I never realized that my Playboy collection represented such a menace to the Republic.
The wisdom of Butera. Despite recording a half-million less in slot win on $3.6 million higher handle — and “george” free play — Foxwoods Resort Casino CEO Scott “Eagle Eyes” Butera is spinning it as a win. He’s got a slightly better case than Mohegan Sun, which recorded 7% lower coin-in and $2 million less in win. (Mohegan’s hold was tighter.) If the Mohegans can’t draw stronger business without casino competition in Rhode Island or Massachusetts, what’s going to happen when those states start going Vegas-style?
