Congratulations to MGM Mirage for being named, for the fourth time in five years, to DiversityInc‘s “Top 50 Companies for Diversity.” Like predecessor J. Terrence Lanni, not only does CEO Jim Murren say the right things (“As long as I have breath in my body and as long as the company wants me around, diversity will remain a core priority.”), he backs them up with measurable results. MGM’s progress on this front has been one of the most inspirational casino industry storylines of the past decade.
The bad news is that MGM and it alone represented Big Gaming and Nevada on the list, which says something not only about the progress made by MGM but the lack of it being achieved everywhere else. The upper ranks of the industry are still very lily-white and very male. As for Nevada, it’s one of those places where you quickly learn just how heterogeneous contemporary America has become. However, there’s a very deeply entrenched element of racism and nativism, against which inroads are only very slowly made, as today’s news reminds us.
When debt is good. MGM’s recent issuance of $845 million in new bonds is an augury of economic recovery, according to the Wall Street Journal. From the WSJ‘s mouth to God’s ear, we say.
Survey says … although 62% of Americans polled gamble, 67% oppose online wagering. This Fairleigh Dickinson University study used a reliable sampling size (1,000-plus respondents), which I’m afraid makes it bad news for supporters of UIGEA repeal and of expanding legalized sports betting, which was frowned upon by 53% of respondents. So gambling is hunky-dory, apparently, but only if you do it in a casino. The brick-and-mortar component of the industry will be reassured by that finding.
Aqueduct deal dies. The office of lame-duck Gov. David Paterson (D-N.Y.) is trying to get out in front and spin the collapse of a very shady award of the racino contract at Aqueduct Racetrack. “We’ll huff and we’ll puff and we’ll sue your house down” (or something to that effect) bellows rebuffed Aqueduct Entertainment Group. Paterson’s office is trying to put its best face on a humiliating rebuke from the state’s Lottery Division, compounded by the precipitate flight of political kingmaker Rev. Floyd Flake and New Jersey Nets owner Jay-Z from the project. The latter, who had a short and fruitless relationship with Las Vegas Sands when it opened Palazzo, didn’t want to undergo the scrutiny that comes with casino investment. Not being able to take the heat, he evacuated the kitchen.
Whatever the reason, the Empire State is right to call AEG’s bluff, seeing as how its obtaining of the valuable contract doesn’t withstand even superficial scrutiny. A lawsuit would also raise the awkward question of why Penn National Gaming didn’t get first dibs, despite not just being an experienced racino operator but the only company to pony up the $300 million Paterson said he wanted. (AEG did so, but only after being — in essence — shaken down for the extra $100 million). This is obviously a huge setback of Las Vegas-based Navegante Group but it’s somewhat underqualified for the job at hand and its current stewardship of the Sahara, which is shutting down in bits and pieces, hardly commends it for a turn on the Big Apple stage.
