Case Bets: Maryland, New Jersey, Arizona & the Riv

Although the Maryland public has warmed up to the idea of table games, casinos in Pennsylvania, West Virginia, Delaware and New Jersey needn’t lose sleep: Marylanders are at least two years — probably four — from voting table games into existence in their state. Until then, electronic simulations will have to serve as a panacea. Casino development still isn’t an attractive proposition in the Old Line State, either, due to the usurious 67% tax rate. Gubernatorial challenger Robert Ehrlich (R) contends that he could improve on the slow, sometimes painful rollout of gambling under Gov. Martin O’Malley (D). But with O’Malley widening his lead in the polls, we’re unlikely to see Ehrlich’s thesis put to the test.

The horsey set in New Jersey says its tracks will be self-sufficient in five years. Oh! Oh! My sides! I haven’t heard anything that funny since I saw the late Sam Kinison do standup. The tracks’ assumption is predicated on several “ifs,” including the legalization of sports betting. While I still doubt that the sport of kings can stand on its own four legs, it apparent willingness to wean itself off the teat of subsidies from Atlantic City casinos should be encouraged.

Setting an example. Maybe you have to go all the way to one of the two Sol Casinos in Arizona to find a place where the bosses have figured out an anti-recession formula. The San Pasqual Tribe is loosening its slots, and pushing bargain-oriented entertainment and food options. (The article ends with the blackly funny saga of a player-incentive promotion at Foxwoods Resort Casino that went south in a big way.) One hopes the Sol Casinos message gets around, particularly here in Vegas, where customers are onto the price-gouging that has become commonplace in casinos. Not so long ago, we were leaving Suncoast and passed a couple who’d been to Vons, and were toting food and beverages up to their room.

That’s far from an isolated occurrence. For the time being, it would appear considerably more imperative to get people back into spending on-property, as opposed to spending more. (On a side note, MGM Resorts International CEO Jim Murren‘s projections for 2010 were well off target, so I take his prediction of a 20% revenue increase at MGM’s Strip properties in 2011 with just a wee bit of salt.)

Bad news for F-blew. Hotel projects with high costs and long timelines aren’t attractive prospects for lenders. Judging by what Starwood Capital Group said about its preferences in hotel redevelopment, look for the Riviera to be (hopefully) turned around with quick, incremental fixes that require little capital outlay.