There’s continued apprehension about MGM Mirage‘s $8.5 billion, 7,200-unit CityCenter, especially now that hotel rooms there are going for less than ones at either the Venetian or Encore. (Thinking positively: Who knew CityCenter was going to be so affordable?) Business Week also frets that the metaresort will cannibalize existing MGM business. Since the company does not believe in cross-property marketing, managers at Aria will have just as much incentive to siphon business from Bellagio as from Caesars Palace. Or perhaps MGM enjoys a speedier recovery while — as analyst Matthew Jacob hypothesizes — everyone else’s road back is made even longer.
There’s a certain irony in hearing people like MGM Mirage CEO Jim Murren touting the bargains available in present-day Vegas … because that sure wasn’t the sales pitch they had in mind when extolling condo canyons along the Strip. At least Murren has shown the pragmatism to swallow his pride about room rates and extol high occupancy levels instead. Your guess is as good as mine what he means by a throwaway reference to private equity firms. Let’s hope it’s not code for “leveraged buyout.” Because MGM needs more debt like it needs a hole in the head.
MGM could use fans like these. A Milford, Conn. couple is really racking up the miles in its cross-country quest to visit every Boyd Gaming property in existence.
Massachusetts can’t decide. Voters in the Bay State favor bringing in casinos (56% say “aye”), according to a Western New England College Polling Institute survey. But that number flips to 38% when the question is, “Would you like a casino in your town?” So the citizenry favors gambling — just so long as it’s Over Yonder someplace. The question of where Massachusetts casinos would go hasn’t been well addressed by legislators so far. They’d be well advised to temper NIMBY resistance by taking a page from states like Kansas and Ohio, where voters have a fairly clear idea where the slot palaces are likely to arise. Even Pennsylvania, where there’s been some loud local resistance (especially in Philadelphia) has never been coy about what the public could expect and where.
Admiral gets soaked again. One of the problems Pinnacle Entertainment faces in maintaining its minimally remunerative President casino (aboard the Admiral riverboat) is that the ship’s gangways are wont to be swamped by Mississippi River floodwaters. As happened again last weekend. So one sympathizes with Pinnacle’s desire to move the old gal to a new berth. However, while Missouri law may give Pinnacle thismuch wiggle room to do so, it still seems unfair to allow a splitting of the President/Lumiere Place license, giving Pinnacle yet another discrete casino when potential newcomers to the Show-Me State are barred, period.
[…] View post: Case Bets: CityCenter, Boyd odyssey, Massachusetts & the “Admiral … […]
A quick comment: Lumiere Place and President do not share a license; they each have their own individual gaming license. Therefore, there is no “splitting” involved.
Mr. Senger is correct. Any move of the Admiral or replacement of same with a new vessel constitutes a “new” license in the eyes of the state. Hence the decision to try and keep the Admiral limping along in its present location. It’s the only certain way to keep the 13th (i.e., President on the Admiral) license in Pinnacle’s pocket.
Has anyone compiled a list of the likely affects that City Center will have on the other hotels around town? I can think of four categories…..1.will be helped by City Center, 2. will be hurt by it,3. won’t be affected, and 4. will be put out of business because of it.
Pinnacle went after the Admiral to prevent any competition to the then under construction Lumiere Place. Now the company is stuck with a wet White Elephant. Spend a fortune to keep it compliant with CG regulations or lose the license in 2010. This company makes awful decisions. Witness the weed covered lot in Atlantic City that they can’t unload and that costs close to 10 million a year to keep up.
Next stop for Pinnacle’s Atlantic City site — a parking lot: http://www.pressofatlanticcity.com/news/press/atlantic_city/article_11252734-bf6f-11de-9f30-001cc4c03286.html
Note that nobody seems to be losing sleep over what Pinnacle thinks of the idea.
TRB, that’s an excellent question. Perhaps it should be the subject of a future S&G reader survey.
STLtoday.com
County Council member says he was pressured by Vegas casino exec
By Paul Hampel
ST. LOUIS POST-DISPATCH
Thursday, Nov. 05 2009
CLAYTON — The issue before the St. Louis County Council Tuesday night was
casino development. And during the meeting, a touch of the rough-and-tumble ways of old Las Vegas surfaced.
The council voted 4-2 on Tuesday to approve a rezoning request that would allow the development of a controversial new casino and entertainment complex in
north St. Louis County.
Voting with the majority was Steve Stenger, D-Affton.
But Stenger said Wednesday that a casino company executive from Las Vegas had not made the decision easy.
Stenger said he was paid a visit shortly before the meeting began by Daniel R. Lee, chairman and chief executive officer of Pinnacle Entertainment Inc., and several members of Lee’s entourage.
Pinnacle is building the River City Casino in Lemay, which is set to open in the spring of 2010. The company says it isinvesting about $357 million in the project, which is in Stenger’s district.
Stenger said it was the first time he had met Lee, who had flown in that afternoon from Las Vegas.
“He comes into my office 15 minutes before the meeting begins and he muscles me,” Stenger said. “He said, ‘This (the casino) is the largest investment your district has ever seen or will ever see. And we are asking you to vote no (on
the North County rezoning issue).'”
Stenger said he could not understand why Lee would take an interest in the matter. From his perspective, he said, the Lemay casino and a potential North County gambling center would be too far apart to compete.
“I asked Lee why he cared, but he would only say, ‘Voting no is the right decision to make. You need to vote no.'” Stenger said.
In addition to River City, Pinnacle opened the $507 million Lumière Place casino on Laclede’s Landing in 2007 and owns the ailing President Casino nearby. Pinnacle has sued the Missouri Gaming Commission over a ruling requiring it to reapply for a gambling license if it wants to move or replace
the President.
Pinnacle has announced plans to renovate the President, butlast week a backer of the North County casino said the state would be better served by assigning the gambling license to the North County casino.
After Stenger cast his vote, he said, Lee got out of his seat near the back of the chambers, hurried down the side aisle and stepped up onto the council dais.
“He got about two feet from my face before someone waved him aside, telling him he could not interrupt the meeting like that,” Stenger said.
Stenger said Lee then approached Stenger’s assistant, Linda Henry, who was seated at the side of the dais.
“Lee says to her, loud enough for everyone to hear, ‘He (Stenger) just made the worst move in his political career! I won’t forget this! I never forget things like this!'” Stenger said.
Henry confirmed the incident. “He said it very menacingly,” she added. “I felt threatened.”
Through a spokesperson, Lee responded on Wednesday via e-mail about the incident.
“I apologize for making anyone uncomfortable, which certainly was not my intent,” the statement read. “I was passionate in my discussion of the issue, which is important to our neighborhood and to the investment and jobs at River
City. However, I did not mean to cause offense to anyone, including Councilman Stenger and his staff.”
Stenger has not heard directly from Lee but said he accepted the apology. He said, “I would look forward to future discussions with Mr. Lee that are a lot more civil.”