Case Bets

Although we’ve learned to take Moulin Rouge revival projects with a shakerful of salt, the latest round of interest is drawing some serious players, such as the Southern Nevada Regional Housing Authority. Its piquant plan would mix affordable housing, dining and—yes—a casino. (Here’s your chance to get in on the ground floor, Frank Fertitta III.) The idea is to pay homage to the Moulin Rouge’s nightlife origins, at least in part. The idea is create a money-spinner that will generate funds for affordable-housing projects in other parts of the county.

* The takeover of Caesars Entertainment by Eldorado Resorts seems such a done deal could anything gum up the works? Yes, says the Motley Fool. First, shareholders—who are experiencing a drag in the ERI share price—could nix the deal. “In a move that illustrates just how desperate Eldorado was to find financing, it agreed to a $98.5 million increase in rent payments to [Vici Properties] in exchange for $1.4 billion of the $3.2 billion in REIT financing. It’s literally mortgaging its future to get the deal done, and that may not sit well with the market.” Secondly, the economy has to cooperate. One downturn and it’s the Caesars bankruptcy all over again. And although Eldorado says it has earmarked $385 million worth of assets to sell, that may not be enough to mollify antitrust concerns. Nor may Eldorado get premium prices on those assets, since the market knows that the pressure’s on for it to sell. Finally, writes Travis Hoium, “Eldorado has been extremely successful at leveraging low interest rates and steadily growing gambling revenue to grow over the past five years, but this deal may turn out to be a step too far.”

* Miller time at the American Gaming Association means a muscled-up research arm and an increased state-level emphasis, as more and more American states grapple with this newfangled thing called sports betting. AGA President Bill Miller believes the research is already paying off, especially when major sporting leagues come rattling their tin cup for “integrity fees.” “They’re 0 for 19 so far,” he told the Las Vegas Review-Journal. He added, “The leagues obviously have a responsibility to run their teams with integrity, but they had that responsibility well before sports betting moved into these states. That’s why the legislators reject that argument that there be an additional fee to do what they had done previously.” The AGA is also going international, advising companies on how to best represent themselves in Japan. Gaming has a compelling story to tell and the AGA is in a good position to help shape the message.

* Casino compacts in Oklahoma expire at the end of this year. Gov. Kevin Stitt is saying a lot of nice things about the state-tribal partnership but makes one thing crystal clear: He wants “exclusivity fees” (read: taxes), exponentially higher to judge from the examples he cherry picks. Something tells me Stitt’s going to be in for a fight, although it’s brave of him to lead with his chin on this issue.

* Ocean Resorts often lags the Atlantic City market in several respects. However, its brand-new, high-tech, wraparound sports book may raise the bar for everybody on the Boardwalk.