Aristocrat

Tribe trumps Trump; Rockford pleads for casino

Despite being thrown off the fast-track legislative calendar by a blast of hot air from Donald Trump, a bill to restore land-in-trust status to the Mashpee Wampanoags has sailed through the House of Representatives, 257-146 in a bipartisan win. “Without support from Congress it will be impossible for the Mashpee Wampanoag to engage in any type of true self government because they won’t own their own land. No economic development, no tribal headquarters, no elder housing, no pre-k programs. It means being treated as secondhand tribe with no future,” said Rep. William Keating (D). “Just two weeks ago we passed a parallel Republican-led bill for a tribe in California without a single member [of Congress] objecting.”

Trump’s umbrage is suspect, as advisor Matt Schlapp (husband to White House Strategic Communications Director Mercedes Schlapp) also moonlights as a lobbyist for nearby Twin River-branded casinos in Rhode Island, hardly an uninterested party. Rep. Tom Cole (R) seconded Keating’s emotions, saying, “The real conflict here is between private gaming interests that don’t want Native American competition.” The Mashpee Wampanoag’s cause still must pass through the Senate, where Massachusetts Sens. Ed Markey (D) and Elizabeth Warren (D) have introduced supportive legislation. If the tribe prevails in that currently listless body and manages to get past the White House (a pretty tall order), then there’s a ghost of a chance for its Project First Light, whose future has been in much doubt since Genting Group bailed on it.

Vegas: Locals outperform the Strip; Sisolak nuked

Vegas: Locals outperform the Strip; Sisolak nuked

Nevada gaming revenue was up 4% last month, just a few hundred thousand shy of an even billion dollars, even though the Las Vegas Strip was relatively stagnant. Strong baccarat win by the house (jumping 14.5%) was offset by 3% less win in other games. Slot win was up 6% ($292 million) despite flat coin-in. The house lost big-time on table games, with 3% less win on 9% greater wagering. Las Vegas locals casinos cleaned up, with slot win — possibly fattened by late-November coin-in — vaulting 23% for an overall gain of 20%, on 2% higher coin-in and despite on less weekend day. The Strip grossed $566 million, while Downtown checked in with $59 million (26.5% higher) and North Las Vegas leapt 18% to $23 million. The Boulder Strip rocketed 45% higher, to $68 million, and miscellaneous Clark County casinos raked in $100.5 million for an 8% hop. Laughlin was a comparative underachiever, up only 4.5% on $32.5 million. Reno slipped 2.5% to $54 million while Lake Tahoe skilled 9% to finish with $17 million.

Cameron McKnight of Credit Suisse called the Strip numbers “Very good … even against higher expectations … shows the (important) everyday gambler is

Frissora postpones departure; Oscar forecast

Frissora postpones departure; Oscar forecast

That game of musical chairs known as industry consolidation has left a lot of fine ladies and gentlemen standing when the melody stopped, included Anthony Sanfilippo, a favorite of ours. However, Caesars Entertainment apparently hasn’t heard of any of these people, as it has prevailed upon CEO Mark Frissora to extend his tenure through April, despite reports of tension between Frissora and shareholders. If you’re of a conspiratorial mindset, perhaps Caesars is vamping for time as it positions itself seductively for an MGM Resorts International takeover, which would render the CEO question moot. But Caesars has taken the succession issue seriously enough to hire an outside executive-search firm but, in a typical Caesars blunder, engaged one that has been incapable of locating a replacement for Frissora, despite a target-rich environment. Frissora, meanwhile, was enticed to stay on with a $7 million compensation package. That will buy a lot of Excedrin to make those shareholder headaches go away. Whoever Mr. or Ms. Right turns out to be, one hopes they have a gaming background and won’t repeat such Frissora faux pas as imposing parking fees.

* There’s a chicken-and-egg quality to Gavin Isaacs‘ having left Scientific Games and having almost immediately popped up at

Breaking bad at the Trop; More trouble for Wynn Resorts

Breaking bad at the Trop; More trouble for Wynn Resorts

Business was afire — literally — at the Tropicana Atlantic City after a meth lab in one of the hotel rooms caused a blaze and led to the evacuation of four floors. This wasn’t how owner Carl Icahn wanted to make headlines, I’m sure. Suspect Michael Pillar, the pride of Whiting, New Jersey, was charged with maintaining a drug production facility, possession of methamphetamine and criminal mischief. Ya gotta watch out for that criminal mischief. It’ll get you every time. Two man and a woman briefly got away as the fire consumed a bed and bathroom, were apprehended on the street but were released without any charges being filed. “Only a few rooms were affected by the fire. Hotel rooms have been professionally inspected, and cleared to

Case Bets: Maryland, Illinois, New Jersey, The Strip, etc.

Case Bets: Maryland, Illinois, New Jersey, The Strip, etc.

MGM National Harbor goes from strength to strength. Last month, it captured 40% of Maryland market share en route to a $56.5 million gross (for a property record of $1.8 million gross gaming revenue per day). Maryland Live, hanging onto 33.5% of market share, grossed $47 million for a 2% dip. By contrast, Horseshoe Baltimore had only 17% of market share, grossing $24 million and plummeting 19.5%. The sole gainer other than MGM was Rocky Gap Casino, where Golden Entertainment juiced business 7% for a $4 million gross. Other small fry were not so lucky. Ocean Downs (pre-table games) plunged 9% to $4 million while Hollywood Perryville slipped 5.5% to $6 million. MGM continues to fortunate in the split of play at National Harbor, which only slightly favors heavily taxed slot play, with low-tax table winnings representing 49% of the tally.

West Virginia, even though it reports on different calendar than Maryland, held its own, up 1%. Penn National Gaming‘s Charles Town Races was not quite so lucky, with

Strip loses, locals joints win; Aristocrat hooks Big Fish

Strip loses, locals joints win; Aristocrat hooks Big Fish

Given the robustness of October 2017, last month’s Las Vegas Strip revenues ($529 million) were already facing a difficult comparison and the Stephen Paddock shooting spree didn’t help matters. Gambling revenues fell 6% last month along Las Vegas Boulevard. (Statewide, gaming revenues were flat.) A 6% drop-off in baccarat wagers translated into flat casino win, while non-baccarat table games were big losers — down 13% — for the house, as wagering slipped  7%. The only place where the house was even slightly lucky was slot win, down 3.5% on 4% less coin-in.

A tough, +10% comparison with last year didn’t deter locals casinos, who won 13% more this year, pretty phenomenal when you think about it. Admittedly, a little bit of September revenue was stashed in there, the month having ended on a weekend, but if that’s the case what’s the Strip’s excuse? Downtown ($63.5 million) did just fine, up

The future of Caesars; Larry Ellison buys Cal-Neva

The future of Caesars; Larry Ellison buys Cal-Neva

Executives from Caesars Entertainment flew to New York to meet with Wall Street analysts and lay out their vision of the company’s post-bankruptcy future. According to Deutsche Bank‘s Carlo Santarelli, internal research “displays a healthy Millenial participation rate, a long time knock on the secular industry outlook.” Management “spoke optimistically” about the prosperity of acquisitions — in case you thought Caesars couldn’t get any bigger — seeing “a sudden influx of opportunities.” Bad news for players, though: Caesars is going to save its pennies by sweating comps and other promotions, validating its image as the company where the customer almost matters.

On the acquisition front, prices remain inflated at this point, dampening

Hall of Fame game

Inductees to the American Gaming Association‘s Gaming Hall of Fame have sometimes been questionable (mobbed-up Clifford Perlman, for one) but this year’s foursome are unlikely to stir controversy. In a family affair, Paragon Gaming CEO Diana Bennett joins her late father in the HoF, albeit not on the grounds that she fleeced Sam Nazarian to the tune of $1 billion when she sold the Sahara (and if he were not to be sheared, God would not have made Nazarian a sheep).

Her citation reads, in part, “Bennett earned a reputation as an expert in establishing gaming systems during her time as the president of Casino Data Systems (CDS), where she

Light at end of Atlantic City tunnel; Madonna gets played

Light at end of Atlantic City tunnel; Madonna gets played

There’s one reason to look forward to November in Atlantic City: Revenue comparisons will no longer have to include the dead weight of Trump Taj Mahal. Gaming revenues were up 3.5% on the Boardwalk last month but add the Taj to the mix and they were almost 3%. Internet gambling ($21 million) was gangbusters, up 32.5%. Slot handle, hold and revenue were all flat, at $166 million for the month, while a 1.5% slippage in table game wagering translated into an 8.5% drop in revenue, to $55 million. Borgata grossed $70.5 million, a 7.5% increase, with table revenue up almost 15% ($21 million) and slots gaining 5% on a corresponding increase in coin-in.

Market share of online play was a follows:

Running the tables in Pennsylvania; MGM woos Georgia (again)

Due to Pennsylvania‘s quirky habit of releasing slot and table game revenue numbers in staggered fashion, we don’t often comment on Keystone State gambling revenues. Fortunately, the Center for Gaming Research at UNLV consolidates the information into sugar-house-800one handy-dandy report. In October, for instance, table game revenue was remarkably volatile yet had no correlation to whether the casino in question had a revenue-positive month or not. For instance, winnings were up 40% at The Meadows but the casino overall was down 2% for the month. SugarHouse, by contrast, rode a 45% growth in table winnings to a 19% increase casino-wide. The Neil Bluhm-owned casino ate Harrah’s Philadelphia‘s lunch, with the latter down 11%. Bluhm’s Rivers Casino in Pittsburgh was off 2% (11% more table revenues be damned).

The state’s revenue leader was, as almost always, Parx Casino, whose $45 million haul was good for a 2% increase, while Sands Bethlehem banked $42 million, a 3% dip. The state’s table games leader, it nonetheless

Ducey: Let’s make a deal; Trump = legal sports betting?

It looks like the State of Arizona may be ready to throw in the towel in its losing fight against the Tohono O’odham Nation over its Desert Diamond casino. Gov. Doug Ducey (R) Tohono casinohas inked a new compact with 10 other tribes that gives them expanded keno and poker, in return for a proviso that they will not build any new casinos in the greater Phoenix area. The “T-O” as they’re locally known, are mulling whether to sign on. Ducey has hinted that their signature could pave the way to Class III gaming at Desert Diamond, but who knows what options the tribe would like to keep in reserve? It has been holding a winning hand in the federal courts and may want to get a compact from Ducey that doesn’t include any concessions. Based on the way things have gone, we expect the Tohono O’odham to drive a hard bargain.

* Contrary to earlier reports, the newly opened Lucky Dragon Casino is being more ecumenical than previously thought, in terms of customer service. While developers Andrew Fonfa and William Weidner have done a thorough job of

Isaacs moves on; 50 years of Laughlin

Gavin Isaacs will be taking it easy, the CEO of Scientific Games is moving up to vice chairman, his CEO’s chair to be filled by former Norwegian Cruise Line executive Kevin M. Sheehan. If anybody’s earned the right to take it easy, it’s Isaacs, whose varied tenure has GavinIsaacstaken him to Aristocrat Technologies, where he was the company’s new broom on the American front, to Bally Technologies, to Shuffle Master and to Scientific. Most of those companies have subsequently been consolidated (including Bally and Shuffle Master into Scientific), some of them under the Scientific banner. “This management change, we think, increases execution risk in a set of complex, low growth businesses, that were relatively recently put together in a series of M&A transactions. Losing Gavin is a loss of gaming industry talent, and SGMS loses an executive who was well thought of by its customer base globally and well respected by his competitors,” wrote a somewhat shocked J.P. Morgan analyst Joseph Greff. In other words, the incoming CEO has big shoes to fill while learning a new industry.” He took comfort in the fact that Isaacs’ resignation didn’t take effect until the end of 2016 but couldn’t help noting that Sheehan had no background in the gaming sphere. (In other news, Scientific opened a new outpost in Australia, with Nevada Gov. Brian Sandoval [R] partaking of the festivities.)

Carlo Santarelli of Deutsche Bank went much further, headlining Isaacs’ departure as “shocking” in a dispatch to investors. He “viewed Mr. Isaacs as a good steward, who is and has been, as engrained as any leader in the industry. While the change was

So long, Sammy; DFS gets a wakeup call

As predicted here, Sam Nazarian has liquidated his 10% stake in SLS Las Vegas to majority owner Stockbridge Capital Group. He’ll still get some extra cash out of the deal, which licenses his SLS brand to Stockbridge (although you could call the place Sam’s Shack snazas have as much brand equity). With the departure of Sam The Sham, we will hopefully have an end to newspaper mentions of Nazarian as a “visionary.” After all, unlike SLS, CityCenter actually produces a return on investment but nobody has ever lobbed the V-word around in reference to Jim Murren. By getting The Naz out of the picture Stockbridge “says it allows the SLS Las Vegas more flexibility to switch out brands and restaurants,” says the Las Vegas Sun.

That would seem to portend drastic changes at the property, which has already severed ties with retailer Fred Segal and may have many more surprises in store. Considering that SLS Las Vegas is sinking fast,

Pit bosses think their job is the pits; One-hoss Hsieh

PayScale.com has been researching the most and least meaningful jobs, and some of it reflects unfavorably on our casino industry. Table game Maco table actionsupervisors “report that they do not find their jobs meaningful, 20% actually believe their jobs make the world a worse place.” (Even if Steve Wynn gives them a cut of the dealers’ tips?) That puts them in third place on the dissatisfaction index, outdone only by warehouse pickers (21%) and fast food workers (25%). One would expect a hash slinger at, say, Wendy’s to feel unfulfilled in their work … but pit bosses? This sounds like a serious morale problem that the casino industry should make haste to address.

* Angela Leong, legislator and the power behind the Sociedade de Jogos de Macau throne,

Macao casinos feel the heat; $41 million jackpot voided

When the government of Macao makes a suggestion, it’s more like an order. For instance, last week, Secretary for Economy & Finance Lionel Leong summoned representatives of all MGM-Macau-casino-4six casino concessionaires to a meeting in which he ‘requested’ increased hiring and promotion of local workers in the city’s casinos. Among the executives subjected to this pep talk were Sands China Executive Vice President Ben Toh and MGM China CEO Grant Bowie. The government is feeling the discontent of local trade unions and passing it on to the casino bosses ahead of an expected May 1 protest.

Leong had earlier promised

Fly the friendly slots; New tax takes aim at slot routes

Unlike most states, Maryland hasn’t hit the saturation mark and a bill to put a slot route into Thurgood Marshall Airport will probably have little effect on that. The slots will Great_Seal_of_Maryland_reverseonly be accessible to ticketed passengers, with the idea being to ‘tax’ out-of-state travelers for Free State infrastructure improvements. Not only has the airport stopped opposing the concept but the House Ways & Means Committee has new 13 members, at least some of whom could be receptive to the idea, which has been killed annually for the last six years, like some sort of legislative skeet shoot.

According to the Baltimore Sun, the city’s airport would — if the legislation is passed — have more slot machines than McCarran International Airport. Look to thy laurels,

Freeman’s strange plea; Aristocrat on the move

This morning, a strange letter landed upon my cyber-desk, signed by American Gaming Association Senior Vice President of Public Affairs Sara Rayme. However, it’s perfectly congruent with the aggressive tendencies of AGA President Geoff Freeman, so I look upon him as at least the spiritual author of this plea. In its structure and tone it is not unlike (albeit shorter) something you might get from the World Wildlife Fund or Americans for a Conservative Direction … although I never particularly regarded casinos as an endangered species, except for those with bad business practices.

Geoff_FreemanThe letter leverages the recent Get to Know Gaming study as a lobbying tool. Join us in sharing this information by sending a letter to policymakers and enclosing an overview of the survey’s key findings and the positive national media coverage generated … Adapt this sample letter and include the following enclosures to begin to ask policymakers to think about the gaming industry with a renewed perspective … The survey results have generated national media coverage. Share these positive stories along with your letter … Boiled down into a two-sided one sheet are the survey’s key findings on the profile of the casino goers and voters’ attitudes towards gaming – just the right amount of information to inform policymakers.”

Super Bowl hits Vegas jackpot; Hope for Caesars overseas

Money“It was embarrassing, humiliating and unbearable,” but when the Super Bowl was over, Nevada sports books had cleaned up … except for that safety on the first play from scrimmage, costly for the Denver Broncos and the books alike. Heavy betting in the Broncos’ favor was a boon to the bookies, who very well may have set a record for amounts wagered on (to use a ridiculous Vegas euphemism) “The Big Game.” Betting handle last year nearly hit $99 million and this year’s was 3%-5% higher. Whoever laid 300 grand on the Seattle Seahawks will go home a happy camper, but most of the heavy action was laid in the Broncos’ favor.

Las Vegas‘ equivocal recovery had good news last year, as gambling revenue totaled over $11 billion (well below 2007 levels but

Quote of the Day

Batman“When a television show goes off the air, it only has the longevity or staying power that is commensurate with the charm, intelligence, humour and great acting ability and the principal character.” — Adam West, wryly promoting Aristocrat Technologies new Batman slot machine. And remember, kids: There are some days when you just can’t get rid of a bomb.

Herbst Gaming: new name, familiar faces

No, the company hasn’t been dissolved. But with the various Herbst boys having been run off — plus the negative brand equity created by their eponymous casino firm’s financial collapse — new ownership decided it’s time for a new moniker. Exit Herbst Gaming, enter Affinity Gaming. (This portends a dim future for the mustachioed Herbst gunslinger, who bears a suspicious resemblance to former Las Vegas Review-Journal Editor Thomas Mitchell.) The name change is currently on hold while the paperwork goes through Carson City. Executive officers currently having an affinity for Herbst include a few names familiar around these parts.

Chief among them is Michael D. Rumbolz, who’s got a long history in Nevada. From 1987-89 he was Nevada Gaming Control Board chairman, at the end of the Richard Bryan administration (perhaps the last truly enlightened period of governance in Silver State history). As such, he had the unpleasant task of investigating the Nazi Party nostalgia of Imperial Palace owner Ralph Engelstad, whose fondness for Adolf Hitler sickens the stomach to this day.

After leaving office, Rumbolz’s resumé reads like a who’s (no longer) who of gaming. He did time with

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