If the question of casino expansion were put to Empire State voters this November, the outcome would probably be adverse. That’s the conclusion of a Benenson Group survey. If the fact that Benenson is President Barack Obama‘s pollster of preference doesn’t impress you, the size of its sample (800 souls) ought to: Most pollsters skimp by on 500 responses or so, resulting in wide margins of error. Not only is New York‘s support for Class III casinos anemic, anti-casino voters are historically militant and would probably carry the day in a tight race.
Faced with Benenson’s alarming numbers, Resorts World New York, Las Vegas Sands and MGM Resorts International suddenly look as though they’ve been putting the cart before the horse. Finding a suitable location will be a breeze compared to the PR war they’ll have to wage over the next Legislature and the subsequent election cycle. (Sheldon “Tex” Adelson has already decided it’s no longer any fun being a political piñata, a change of heart as inevitable as tonight’s sunset.*) And, with nine racinos already jockeying for a mooted seven licenses, plus sundry resort owners, it’s no shoo-in that a Vegas-based company is going to be given preference to a “native son” racino or an historic resort with a hard-luck story.
* — on the subject of Internet poker, Adelson has been drinking Gary Loveman‘s Kool-Aid but reached an entirely different conclusion, offering a gloomy prediction of a 10%-20% decline in terrestrial casino revenues.
With Revel coming along and, many think, the future of Atlantic City hanging in the balance, this is no time to skimp on public-sector investment. To that end, the Casino Reinvestment Development Authority is tripling both the manpower and budget of its Boardwalk Ambassadors. Their roving role is to provide a more tourist-friendly visiting experience and (more importantly) a high-profile security presence, especially after dark. Since New Jersey is using casinos’ tax dollars to make the casino-visitation experience safer and more attractive, it would be churlish to complain about the expenditure. Likewise, Caesars Atlantic City has realized that making money requires spending money, resulting in occupancy rates that exceed the city’s historical apex. By contrast, the much-abused ACH is way down in the danger zone, at 61% occupancy despite a small room inventory.
Last Call. Good riddance to bad rubbish: Noon today was closing time at O’Shea’s, inarguably the scummiest casino on the Strip. Proud owner Caesars Entertainment will begin demolishing the Irish eyesore forthwith. Meanwhile, at the south of end of the Las Vegas Strip, quietly and without fanfare, developer Howard Bulloch has begun sinking the foundations for his planned Ferris wheel, meaning that the race between Bulloch and Loveman is on in earnest. If it weren’t so geographically isolated from the Caesars acreage, I’d predict Loveman to fold his “Vegas High Roller” project and purchase Bulloch’s instead.
Out with the old. Three new division chiefs have been appointed at the Nevada Gaming Control Board. One of them, Technology Division boss Jim Barbee, may have some extra time on his hands now that most game-testing functions have been outsourced to the private sector (hence the departure of predecessor Travis Foley for those greener pastures). That’s not likely to be the case for incoming Audit Division boss Shirley Springer, who inherits a chronically underfunded, understaffed, overworked NGCB branch that hasn’t grown to keep pace with Nevada’s casino industry. Gov. Brian Sandoval‘s laissez-faire attitude toward casino regulation is likely to walk the state right into a major gaming scandal before his tenure ends. The dismissal of regulator Randall Sayre, in retrospect, had probably much less to do with his having been a Jim Gibbons appointee and more to do with his vigorous pursuit of his duties.
