“Northern Kentucky hotelier William Yung III may be gambling on Gov. Steve Beshear and Covington to save his crumbling casino empire.” Those are the words of the Lexington Herald-Leader, catching readers up on the quickly evolving troubles of Yung, CEO of Columbia Sussex (colloquially known online as ‘ColSux’).
The really interesting information comes near the bottom, where reporter Janet Patton chronicles the Flying Dutchman-like saga of the former Belle of Baton Rouge (now apparently destined for yet another relocation; see previous blog entry). She also reveals that Yung’s company is under investigation in Mississippi, pursuant to its eviction from New Jersey.
Meanwhile, Yung’s proposed Covington, Ky., casino has to overcome quite a few hurdles to become a reality. If Kentucky solons or voters ixnay casinos, it’s a moot point, never mind whether Yung would get a license (though he’s in favor with Beshear) or mollify historic preservationists — or even whether Covington would get approved for a casino, period. (Several readers also envision nightmarish traffic problems.) The Cincinnati Enquirer lays out some of the other complications. The paper’s editorial board keeps its powder dry, letting readers debate the issue. The Online Casino Advisory is less circumspect.
Meanwhile, what of the sagging fortunes of Yung’s erstwhile cash cow, the Atlantic City Tropicana? Justice Gary Stein, and his “lonely” quest to turn around and sell the revenue-leaking property are profiled.
There’s also an interesting scorecard on potential Trop buyers, though I take strong issue with some of its conclusions. I’m in agreement as far contenders #1-3, but the Steve Wynn card seems overplayed. Wynn has washed his hands of Atlantic City twice before. If he isn’t gun-shy at this point, state officials may be.
Also, it’s a grave disservice to Penn National Gaming and Ameristar Casinos to equate them with Columbia Sussex. These aren’t hoteliers who dabbled in gaming on the side; they’re successful, casino-centric operators. Ameristar, in particular, may have something to prove after being an also-ran in the bidding for Aztar Corp. A Tropicana acquisition would also increase the company debt load (like, duh) thereby achieving the strategic objective of making Ameristar less attractive as a takeover candidate.
And don’t count James Packer out, either. Although he’s put his money on Pennsylvania with a racino purchase there, he’s also on a casino-shopping spree that has seen him snap up the growing Cannery franchise in Las Vegas, as well as getting large stakes, at bargain prices, in Fontainbleau and Christopher Milam‘s as-yet-unbuilt Las Vegas Tower, now Crown Las Vegas. Depending on how much Packer has left in his piggybank, the Trop may not be out of his reach.
Now for some good news: One of the more conservative presidential-delegate estimates, that of CNN, now has Sen. Barack Obama only 27 delegates behind Sen. Hillary Clinton.*
Why is Obama’s success important. Well, it seems that — in East Baton Rouge — it gave casino expansion some extra muscle at the ballot box.
* — Sen. Clinton’s name is un-bolded not out of disrespect but because, through a computer glitch that has everyone here baffled, sometimes our system just deletes copy when commanded to boldface or italicize it. Strange but true.
