Goodman batshit crazy; Detroit puts casinos on ‘hold’

Could we be seeing the last of Las Vegas Mayor Carolyn Goodman (I), and her ‘every man for himself and devil take the hindmost’ approach to Coronavirus? Poker pro Doug Polk has begun a recall petition drive to try and return Her Honor to the private life she would so richly endow. Incidentally, after reading several first-person narratives of Covid-19, we are 101% confident that if Mrs. Goodman had the disease in January, as she laughingly states “might” have happened, she A) would be in no doubt and B) wouldn’t want to put anyone else at risk. Oblivious to the dangers of the pandemic, Goodman continues to run her trap, putting fear of poverty on an equal footing with a fear of illness (an illness that has claimed more American lives than did the Vietnam War). “When,” she wailed, “is too soon too late?” In your case, Your Honor, everything you say is “too soon” and if people are taking your advice it will be “too late.”

* At least Las Vegas casinos are likely to be open again within a month. No such luck in Detroit. Don’t blame Gov. Gretchen Whitmer: It’s Motown Mayor Mike Duggan who’s putting on the brakes, tying reopening of entertainment venues to the development of a vaccine, which could keep casinos closed literally for months. “It costs us $600,000 a day, I haven’t complained about it a single time because the health of our community is more important than the revenue coming in,” said Duggan, who added he’s taking his lead from what’s happening in Nevada.

If the casinos reopen sooner in Detroit, it will be under safety protocols—masks, distanced slot machines, limited table-game access—like those being put into place on the Las Vegas Strip. Added Duggan, “I think we are a long way away — six months, maybe a year from the casinos operating the way we’re used to seeing them operate, but I do think it is possible.” Detroit, which has suffered 9,562 cases and 1,128 deaths, leans on casinos for 20% of its city budget. Police and fire services have not suffered so far, due to a sizable rainy-day fund. Whitmer had the Detroit casinos closed until May 28 but Duggan has just thrown a large wrench into the works.

Normally this would redound to the benefit of the state’s tribal casinos but they’re not rushing into the vacuum. Even Island Casino & Resort has paused its reopening until May 16, citing “unforeseen circumstances.” (Like a case of Coronavirus maybe?)

* Was the Eldorado Resorts takeover of Caesars Entertainment an inside job? That’s basically what dissident shareholder Dennis Palkon is contending in a would-be class action suit that he’s filed, naming Caesars and CEO Anthony Rodio as defendants, among others. His accusations include that the merger agreement is missing key information, such as Caesars’ and Eldorado’s respective cash flow and how that EBITDA figure is itemized. Palkon also discovered a provision that not only forbids Caesars from seeking third-party offers but requires CZR to notify ERI if any such offers are received unsolicited. It’s costing Eldorado a lot to keep this deal alive, especially given its decimated stock price. Palkon’s lawsuit is another unwelcome obstacle.

* Beleaguered gaming tycoon Tilman Fertitta is digging himself even deeper into debt. He’s seeking a leveraged $250 million loan, one which would bring his total indebtedness to $2.5 billion. The loan would be set at 1,400 basis points, what is described as “an eye-watering spread” with a 96-cents-on-the-dollar discount. Lenders have until today to subscribe to the loan, which would mature in 2023. (Tilman says he can buy back some of this debt when business returns to something like normal.) Fertitta has understandably taken the phone off the hook. Like many of us, Tilman is the casualty of too much ‘retail therapy,’ including a $300 million loan to buy the Del Frisco’s Double Eagle Steakhouse chain (Can’t own too many steakhouses, eh Tilman?) and an ill-advised borrowing of $200 million to essentially manufacture a dividend. Then again, we’re talking about the person who said of Coronavirus, “You are not going to die from this.” This also the same guy who tried to cut benefits to his Post Oak Hotel workers, only to backpedal in the face of a public backlash.

He also advocated for the reopening of restaurants (albeit at reduced capacity) back in March. Clearly this is someone with a tin ear for public sentiment. He’s not popular with Houston Rockets fans, having hired cheap players—and let stars walk—rather than pay the NBA luxury tax. When Utah Jazz players tested positive for Covid-19, Tilman The Wise “suggested a three- to four-week pause while expressing frustration over the financial hit he’d already taken with empty restaurants and early-season issues in China.” (He’s been one of the worst appeasers of Chinese repression.) We don’t wish hardship on anyone but Fertitta knows how to test our patience.