We all know that Carl Icahn has a sharp eye for undervalued assets. Caesars Entertainment stock fell 46% last year, making it ripe for the plucking. And pick it Icahn did, scarfing up enough to spur a 11.5% rally in CZR shares. We didn’t expect Icahn to be back in the casino biz so soon but we do expect Caesars to resist any 
potential Icahn takeover offers just as it did when Tilman Fertitta came a-courting. Icahn is flush at the moment, having made $1.85 billion from selling Tropicana Entertainment to Eldorado Resorts, so he certainly could scoop up a sizable tranche of Caesars stock. Credit Suisse chalked up Caesars’ curb appeal to room renovations and convention center improvements. To further complicate the picture, CNBC reports that Fertitta hasn’t given up on a Caesars takeover either. As for the mooted Caesars/MGM merger, that has been quashed, apparently upon fears of a Federal Trade Commission veto. With the exception of his brief tenure at Trump Entertainment Resorts, Icahn has had the Midas touch with casinos. Caesars should listen to whatever he proposes. Not necessarily agree, but definitely listen.
* Last year was a banner one for Detroit casinos, who banked a record $1.45 billion. (Whatever happened to that conventional wisdom that Ohio was going to wipe out 
Detroit?) That’s $20 million more than 2011, the previous high-water mark. We’re still waiting to see what happens when Penn National Gaming takes over Greektown, but so far the division of the spoils looks pretty healthy. As always, MGM Grand Detroit led with $619 million and 43% market share. MotorCity Casino had $490 million and 34%, while Greektown picked up the remainder: $335 million and 23%. These were new high-water marks for MGM and MotorCity but Greektown has done better in the past. Between the state and the city, the tax haul was $306 million, which gives you some idea of why Gov. Rick Snyder (R) decided to nix Internet gambling, the better to preserve the terrestrial revenue pipeline.
* Faced with a declining population and waning textile industry, Danville, Virginia, is looking at casino gambling with new interest. The city on the North Carolina border has been jawboning its city council to take up the idea. “Seven thousand potential new jobs, over $1 billion in new spending in our city over the next 10 years,” said Councilman James Buckner “to me, that’s a no-brainer.” added colleague Larry Campbell. Still, it’s far from a done deal: Danville citizens would have to approve the casino in a referendum, get the assent of the Legislature, then pass a second amendment. Steps ones and three don’t look so hard but making the case in Richmond will require some heavy lifting.
* Borgata is investing $11 million in a permanent, improved sports book, complete with bar. Borgata President Marcus Glover promises something “innovative,” without getting into specifics. Perhaps it could team with Turner Broadcasting in the latter’s bettor-referral initiative. MGM Resorts International spokesman Brian Ahern says they’re working on something like it already, so we wouldn’t be far off the mark. As Turner prexy David Levy says, “In the future — and this is where I think the opportunity is — not only can I say to you, ‘By the way for 99 cents do you want to watch the game, but would you like to bet on it?’ I can give the referral to MGM or to Caesars or to FanDuel and have the opportunity to benefit in some way, shape or form from that consumer.”
* West Virginia may be the next state to get into Internet gambling, although it’s failed in two previous tries. A bill has been introduced in the Lege to permit the state’s five terrestrial casinos to open online gambling portals. The activity would fall under the auspices of the West Virginia Lottery Commission, the entry fee would be $50,000 and taxes would be set at a sensible, 14% rate. Let’s hope the third time is the charm.
