It’s Elaine’s world; Big Uneasiness in Louisiana

When the dust settles from the annual Wynn Resorts board meeting, there will be a directorate that is at least 60% new. Two more longstanding board members bit the dust this week, including former Nevada Gov. Bob Miller (D). One particular bete noire of Elaine Wynn‘s, John Hagenbuch (whose candidacy looked headed for defeat, for reasons outlined below), fell on his sword, saying, “I do not want my candidacy to detract from the important progress we have made throughout the organization, including the ongoing refreshment process this Board has initiated,” a process that makes Steve Wynn cronies like Hagenbuch expendable. In addition to pressure from Mrs. Wynn, the company’s largest shareholder, Hagenbuch was blown raspberries by Institutional Shareholder Services and Glass Lewis, both of which urged shareholders to give Hagenbuch the heave-ho. “Hagenbuch was part of a legacy board that oversaw material failures in governance and risk oversight,” wrote ISS.

Las Vegas Review-Journal reporter Todd Prince (one of the very few reasons to read Sheldon Adelson‘s crappy rag) wrote that “Hundreds of institutional investors managing mutual funds, hedge fund and index funds follow the recommendations of Institutional Shareholder Services and Glass Lewis,” making Hagenbuch a goner. As for Elaine Wynn, she’s not resting after this latest victory. Calling the Miller and Hagenbach seppoku a “good step” toward a New Wynn, she added “there remains work to be done.” In other words, watch this space.

In other Wynn Resorts news, the company said it would create a “critical mass of attractions,” if tapped to operate a casino in Japan. This is further clarified as ‘a series of iconic structures and open public spaces.’ President of Wynn Development Chris Gordon explained, “What we envision is not one big building, it should be an entertainment district different to anything we’ve done before. It would incorporate multiple buildings, multiple hotels and a space to wander around in the open. Wynn Resorts envisions creating a new Japanese district just as there are other city districts, with both large and medium-sized buildings.” This would include one large-scale theater for headliner shows, as well as a smaller space, perhaps to accommodate permanent shows like Le Reve.

Taking a bit of a poke at Sheldon Adelson, Gordon said, “If someone travels to Japan they are here to see Japan. We would still clearly have themes of our company but it would be quintessentially Japanese.” In other words, the Las Vegas Strip wouldn’t be cropping up in Osaka or wherever. Gentlemen, Wynn has thrown down the gauntlet. Let’s see what you’ve got.

* If you enjoy S&G, your pleasure may shortly be curtailed by the FCC‘s obliteration of ‘Net neutrality. However, all may not be lost. Supporters of ‘Net neutrality have lined up 50 votes in the U.S. Senate. All we need is one more. Call your senators and let them know you want an unfettered Internet now and in the future. Thank you.

* Louisiana state senators had qualms about giving Harrah’s New Orleans a no-bid contract but those scruples were not sufficient to prevent them from voting said contract out of committee. The difference in the 4-3 vote seems to have been a sweetheart provision negotiated by state Sen. Gary Smith (D). Harrah’s renewal will now cost it an additional $40 million and the annual payment to Louisiana, which Phil Satre once successfully negotiated downward, goes back up from $60 million to $100 million. Since the casino is doing well and its license extension is just squeaking through the Lege, we don’t think we’ll too many howls of outrage from Caesars Entertainment‘s executive suite. After all, Harrah’s New Orleans would be juiced into a license extension until 2054, which is pretty “george.”

Some solons worried about a possible selloff of Harrah’s New Orleans to Vici Properties, as well as the apparent haste with which Caesars is cutting a deal six years before its license ends. The company’s defenders responded that state regulators had already given the agreement their thumbs-up. Harrah’s added that it needed the security and stability of a long-term arrangement in order to proceed with its planned, $350 million upgrade. “I don’t think it’s a question that the state wants to continue its relationship with Harrah’s. I don’t think there’s anything wrong with pumping the brakes a little bit,” said state Sen. Norby Chabert (R). The bill now goes to the finance committee. Meanwhile, Gov. John Bel Edwards (D) is playing his cards close to the vest.

* Monday’s Supreme Court ruling legalizing sports betting met with a cool reception in Ohio. “Expanding gambling has not been a priority for this administration, and that remains unchanged. We’re aware of the ruling and looking to see what impact it will immediately have on Ohio policies.” said Gov. John Kasich‘s office frostily. The state constitution permits “approved types of casino gaming authorized by Michigan, West Virginia, Indiana, and Pennsylvania as of January 1, 2009 or games subsequently authorized by those states.” So, as those states go in re sports betting, so likely will Ohio. West Virginia is already on the sports-betting bandwagon, albeit with an onerous “integrity fee.” (The sports bettor’s equivalent of a resort fee.) DFS is already legal in the Buckeye State. Sports betting has the support of Penn National Gaming and Jack Entertainment, though it’s too early to say whether they’ll push hard for it.