Remember when Kirk Kerkorian made Steve Wynn an offer he couldn’t refuse for Mirage Resorts? It looks like history is going to repeat itself with “back-channel approaches” being made by MGM Resorts International to embattled Wynn Resorts. “Wynn Resorts 
is not on the block, but one source close to the situation said the company’s new CEO would sell if he got the right price,” reports the New York Post. A source described as “close to a large gaming company” opined that there’s a 50/50 chance that Wynn CEO Matt Maddox gets the price he wants. Added a banking source, “Yeah, MGM is interested.” All this taking place amid disparaging remarks about Wynn’s “caretaker management team,” which appears not to have inspired great confidence on The Street.
Two vacancies on the Wynn board are going unfilled, leading one source to remark, “That inference corroborates to me that Continue reading
impaired eyesight has become a catch-all excuse. For one thing, we’ve seen him getting around Wynncore perfectly well, certainly not bumping into walls or anything of that ilk. In fact, if you didn’t know that Wynn’s eye troubles make him legally blind you’d be hard put to tell the difference. Wynn is responding to a suit from a ShowStoppers cast member who said that Wynn was something of a Peeping Tom.
Never mind that the casinos agreed to those tax rates, nor that lawmakers — seeing less tax revenue than they’d been promised — are hardly going to assent to a still-lower amount. The casinos were supposed to be the golden goose for the Empire State’s school system. Their failure to lay eggs leaves yolk on the face of Gov. Andrew Cuomo (D) and gives challenger (and public-school activist) Cynthia Nixon a stick with which to beat him.
Less pleasing for MGM execs: Slots continue to pull away from table games, $32 million to $28 million. Since tables are taxed at a far lower rate, this is not a development MGM wants to see. Overall, gaming revenue in the Free State was up 6%, with Maryland Live gaining a percentage point, MGM vaulting 18% and Horseshoe Baltimore down 8% ($25 million). MGM’s gain in market share came mainly at Maryland Live’s expense. Hollywood Perryville was up 2.5% to $7 million while Ocean Downs was supercharged by the addition of table games, leaping 26% to $6 million. Out west, Golden Entertainment‘s Rocky Gap Resort was flat at just under $5 million.
Street speculation is that we’re just seeing the beginning of the transaction. JP Morgan analyst Joseph Greff expects that the operating company half of Hard Rock will be spun off to a third party, but “we’d be surprised if it was MGM or some other operator with a meaningful Ohio operation.” Adds Deutsche Bank‘s Carlo Santarelli, “we believe, given the lessons learned from the GLPI acquisition of Meadows, that some loose agreements/backstops are likely in place.” (Gaming & Leisure Properties acquired the Meadows racino in Pennsylvania with an eye to having Pinnacle Entertainment run it.) MGM is paying a pretty penny for the physical asset: $1 billion or 13 times cash flow. Whew! Given the drawing power of the racino, however, we’d hesitate to say that MGM Growth Properties overpaid.
Said state Rep. Jared Moskowitz (D), “Before anybody gets too excited or upset on the issue of gaming, I would remind them that for the past five years we have not been able to do anything on this subject.” Agreed incoming state Senate Majority Leader Bill Galvano (R, right), “There is no agreement; only some discussions.” Considering that addressing the myriad pressing issues involving gaming (decoupling, additional racinos, the elusive Seminole Tribe compact) is nothing new, state Sen. Audrey Gibson (D) laid the problem at the feet of the Legislature’s leadership.
hotel-casino’s amenities. The last two desiderata have to pass muster with the New Orleans City Council but we feel bullish for Caesars Entertainment‘s chances for expanding its iconic New Orleans flagship property. Gov. John Bel Edwards (D) is on board with the project, as is Mayor-Elect LaToya Cantrell. Speaker of the House Taylor Barras (R) is crediting with bringing otherwise recalcitrant Republicans into the fold for the vote. “If someone hasn’t talked to you about this bill, I’ll be very surprised,” Barras said of lobbying that was described as reaching a “fever pitch” in the hours leading up to the vote.
owner Brookfield Asset Management “have all agreed to a fair process that will ensure management remains neutral as the Hard Rock Las Vegas workforce in the unions’ classifications choose whether to unionize.” This comes as a relief because, for a while there, it looked as though Brookfield would force the Culinary to picket the HRH. No longer the case. “This is a new era of positive labor-management cooperation at the Hard Rock Las Vegas. Card-check neutrality agreements provide a fair process that are the standard for the Culinary and Bartender Union’s 83-years of organizing over 800,000 workers,” crowed the formal statement.
we’ve gone through a change; it’s that the rest of the world has changed and we have not … Late fees on a video cassette are like resort fees and parking fees are now in hotels—something you do for revenue, but is not necessarily pleasing to the customers… If you forget the customer, you’re doomed … It makes spreadsheet sense, but it doesn’t make emotional sense. And gambling is an emotional business. If we forget that, we’ll be just like Blockbuster.” — John Acres, 
the Wall Street Journal launched a new set of ‘fish,’ and these will be harder to duck. The WSJ basically exposed a culture of corruption that pervaded Wynn Resorts, with an executive corps portrayed as being out to protect Steve Wynn’s predatory penis at all costs. For instance, Arte Nathan will no longer be the dean of human resources in Las Vegas if these allegations prove true. Nathan allegedly told one victim of sexual assault, “You need to keep your mouth shut.” He added, “Don’t try to make this something.”
“The state seems to have this Faustian bargain with the card rooms—if you provide jobs and taxes, we will not fund an appropriate regulatory environment, and you can open up a great many additional sources of revenue. I always was of the impression that many in the state had the attitude that the tribes make enough, and let’s give the card rooms a break—even if it does totally contort the law.” — former California Gambling Control Commission member Richard Schuetz on the oversight (
tries to negotiate a new compact with New Mexico. The Pojoaque Pueblo had been operating without a compact since 2015. The Trump administration’s forfeiture reverses one of a series of conditions imposed by the Obama administration to keep the Pojoaque casinos open while compact negotiations progressed. Even though a new compact was signed last year, the tribe didn’t release the money, while the New Mexico government tried to pry it loose. The tribe’s new stance was that it was not obligated to share revenue with the state during a time when no compact was in place and that the feds are acting in punitive fashion.
when he stepped down. He could have a lot of legal fees and, of course, there always is the chance that Steve Wynn could buy or build another casino, which most likely would be outside the U.S. if he were to do it.” Hmmmm. Could Wynn ‘go rogue’ in Macao or Japan? (He’s permanently barred from the Philippines.) In the former instance, a seventh concession would have to be issued. In the latter, it’s still anyone’s ballgame, although a corruption scandal involving the wife of Prime Minister Shinzo Abe — and the unpopularity of casinos among the electorate — casts a shadow on their chances there.
before they’re hatched. Among other remaining hurdles there’s the small matter of a Federal Trade Commission request — 
“I was at a low point in my personal life. She was kind, exciting and fun. Mariah is a woman of substance. But it was a mistake for her and a mistake for me.” — James Packer on ex-fiancée Mariah Carey, who collected a breakup fee