Editor’s note: The origins of the somewhat eccentric name change can be found in the undercurrents of the Pacific Ocean. It’s now a Caesars-owned brand, with the company registering every Cromwellian iteration it can find.
Cromwell is the new brand name that Caesars Entertainment has mysteriously bestowed on the old Barbary Coast (currently undergoing a massive makeover). If the moniker means anything to the general public it is usually a predominantly untoward association. I mean, Oliver Cromwell wasn’t a Vegas kind of guy.
Early results from Internet betting in New Jersey have been disappointing, no question. But a Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism at The Richard Stockton College of New Jersey poll showed that interest has already doubled. (OK, so it was up from 3% up to 7%, but that’s still progress.) Better still were the results on sports betting, which has 55% support. Of course, the opinion of 55% of New Jersey punters carries zero weight with the U.S. Supreme Court, which is the only venue left for legalizing the practice.
Caught between harsh weather and low hold percentages, Borgata has been a disappointment to Boyd Gaming this winter. The company is warning of 4Q13 loss that could be as deep as $50 million. The stock market reacted equably, with Boyd making a slight gain. The company is thought to have announced the loss now, rather than at its earnings call, to soften any “ticker shock.” “While the extent of Borgata’s decline is a bit surprising, the overall state of Boyd’s portfolio … is not.” wrote Macquarie Securities analyst Chad Beynon.
Caesars Entertainment owns four casinos (including two of the top three) in Atlantic City, plus a defunct hotel. Now it reportedly wants to acquire one of the weakest performers, Revel. Why it would want to do this, potentially diluting its customer base, is a mystery. State Sen. James Whelan (D) wants Gov. Chris Christie‘s administration to invoke an “undue economic concentration” clause and put a stop to the madness. (Why do you think Caesars had to sell the Atlantic City Hilton a decade ago?) Caesars CEO Gary Loveman‘s favored strategy is a surprisingly crude one: Own the most capacity in any given market. This can be a recipe for mediocrity but its made his company the most widespread in gaming.
However, horseracing has pretty clearly not been a priority for Caesars at Harrah’s Philadelphia. The apparent neglect of the racing oval is blamed for a crash in which harness racer Anthony Coletta sustained permanent brain injuries. It’s all too sad for words.
Reality ($821 million) is colliding with propaganda ($1.9 billion in casino revenue) in the State of Ohio, where government is going to have to make do with less casino-tax money for education than it was led (or led itself) to believe. Gov. John Kasich‘s prized racinos will only worsen the problems, as their tax monies go to the Ohio Lottery Commission and not to schools.
* If this is “a pretty good quarter” for Mohegan Sun I’m not sure I’d want to see a bad one.
* Chinese New Year is here, and it requires of the casino executive and planning staff a depth of cultural nuance you’d probably not expect.
* When it comes to revitalizing downtown Las Vegas, why didn’t somebody think of this sooner?
