Another day, another Las Vegas Sands executive falls by the wayside. In the case of Marina Bay Sands, it sounds like CEO Thomas Arasi has been burned out in what must have been a pretty intense 18 months at the helm of the $5.6 billion megaresort, which struggled with schedule and budgetary issues. In a memo to colleagues, he wrote, “I have decided to pause, take a breather and spend more time with my daughter and other family.”
Arasi’s clearly not being given the sack, as his resignation doesn’t take effect until Tuesday and even then he’ll be hanging around for until Feb. 18, ensuring an orderly transition. J.P. Morgan analyst Joseph Greff was sanguine, saying that this was not one of those executive departures that betokened turmoil within Sands. (Others suggest Sheldon Adelson may have pushed Arasi out.) He also predicted that the company’s Asian viceroy, Rob Goldstein, would be shopping around for a marquee-name executive to replace Arasi, one more conversant with the casino side of the business.
Although Marina Bay Sands came roaring out of the gate, at least as far as its casino was concerned, there were early and well-publicized troubles with its hotel rooms and convention area. That might cloud Arasi’s future but he can point to an absence of tsuris in recent months, as well as to high accolades. It was named best in Asia for meetings and conventions, blowing past Venetian Macao en route to the laurel. That’ll look good on Arasi’s resumé.
Jackpot! Three of them to be precise. S&G doesn’t usually report these sorts of things but Borgata customers hit three big progressive ones in a fortnight. Most recently, a Wizard of Oz player bagged $4,963,819.15, and two Wheel of Fortune punters raked in $700,161.82 and $3,491,146.57, respectively. That’s almost $9.2 million collectively and a windfall of good publicity for Boyd Gaming, International Game Technology and WMS Gaming alike. The sudden perception of Borgata as an “auspicious” casino is unquantifiable compensation for the dent that will be made in January’s gambling revenue.
Any good PR is welcome, seeing as a Spectrum Gaming Group report just projected — surprise, surprise — another crappy year for the Boardwalk. The city has already shed over 40% of the business it enjoyed at its peak in 2006 and there isn’t any new product this year to boost whatever excitement still exists out there. Spectrum pegs Borgata (obviously) and the four Caesars Entertainment properties as best-positioned to ride out the continuing, 13% downturn, which includes table revenue retreating below the $1 billion mark. What the city’s losing is being more than made up for in surrounding states, which continue to ramp up their casino offerings.
One such instance is that of Maryland, where the first shovelfuls of dirt have been turned on Cordish Gaming‘s Arundel Mills casino (left). Ironically, site opponent Gov. Martin O’Malley (D) — who evidently knows little shame — was initially scheduled to be on hand among those picking and grinning, although he had business elsewhere when the time came. Against O’Malley’s wishes, lawmakers continue to press ahead with the “Angelos amendment” that would add a sixth casino site at Rosecroft Raceway, part of a broader push that would add table games to the state’s slot parlors. Shamelessness seems to abound in Maryland, as Penn National Gaming is reportedly willing to abandon (again) its Perryville casino, opened last fall to great fanfare, for a shot at Rosecroft. Penn CEO Peter Carlino seems to have a serious case of “grass is greener” syndrome.
Back north, with most of Atlantic City’s casinos operating at a loss, it’s open question how much longer Trump Marina, Trump Plaza and the Atlantic City Hilton can be propped up as corporate charity cases. Landry’s Restaurants CEO Tilman Fertitta seems to have had second thoughts about adding the Hilton (left), a former Golden Nugget, to his pocketful of Nuggets. At least whoever inherits it from Colony Capital is certain to get it for dirt cheap, following Resorts Atlantic City‘s $31.5 million fire-sale precedent.
Your note on the Borgata progressives begs the question about how they recognize revenue and payout on progressives? Does each casino only recognize the revenue of coin in that it keeps and doesn’t go into the progressive jackpot and conversely, do all the casinos that participate recognize their portion of the payout when it gets paid or does Borgata get the whole enchilada on their results?
I am not quite sure why Trump Plaza is so sluggish. I think they did a good job with their limited renovation. They have one of the best locations in all of AC, the best beach bar, decent rooms and decent restaurants. Perhaps not enough attention from the corporation? Not enough promoting? They certainly can use some new amenities, but just not sure why this hotel struggles as much as it does.
Bob, I put your question to Boyd Gaming and they passed the buck to IGT, so I’ll have to continue following up on this.