Breaking bad at the Trop; More trouble for Wynn Resorts

Posted on February 16, 2018 by David McKee

Business was afire — literally — at the Tropicana Atlantic City after a meth lab in one of the hotel rooms caused a blaze and led to the evacuation of four floors. This wasn’t how owner Carl Icahn wanted to make headlines, I’m sure. Suspect Michael Pillar, the pride of Whiting, New Jersey, was charged with maintaining a drug production facility, possession of methamphetamine and criminal mischief. Ya gotta watch out for that criminal mischief. It’ll get you every time. Two man and a woman briefly got away as the fire consumed a bed and bathroom, were apprehended on the street but were released without any charges being filed. “Only a few rooms were affected by the fire. Hotel rooms have been professionally inspected, and cleared to Continue reading →

Posted in Aristocrat, Atlantic City, Carl Icahn, Cirque du Soleil, CityCenter, Law enforcement, MGM Mirage, Palms, Sexual misconduct, Silverton, Station Casinos, Steve Wynn, The Strip, Tropicana Entertainment, Wall Street, Wynn Resorts | 3 Comments

Quote of the Day

Posted on February 16, 2018 by David McKee

“What a difference a blizzard makes. When people are stuck in their homes by more than a foot of snow, and temperatures are dipping into single digits, they don’t come to Atlantic City.” — New Jersey Casino Control Commission Chairman Jim Plousis, explaining last month’s 12.5% falloff in casino revenue.

Posted in Atlantic City, Economy | Comments Off on Quote of the Day

Louisiana stutters; MLB rigs the odds

Posted on February 16, 2018 by David McKee

Gambling in Louisiana was a bit off the pace last month, down 4% ($187 million). Most of that was due to a terrible Baton Rouge market, tumbling 21%, while Lake Charles (+2%) remained immune. New Orleans (-2%) and Shreveport/Bossier City (-5%) were victimized to a much lesser degree. Pinnacle Entertainment took it hard, down 10%, led by an 18.5% plunge at L’Auberge Baton Rouge ($12 million). Boomtown New Orleans slipped 2% ($9 million) and Boomtown Bossier ($4 million) was off by 8%. Not even flagship L’Auberge du Lac was bulletproof, sliding 8% to $23 million. Golden Nugget snuck past L’Auberge with a 23.5% gain and $25 million gross. Elsewhere in the market, Isle Grand Palais declined 8.5% to $8.5 million (really) and Delta Downs was down 3% to $14 million.

In New Orleans, Harrah’s New Orleans still proves that fears of the effect of a smoking ban were unfounded as it continues to dominate the market with Continue reading →

Posted in Boyd Gaming, Churchill Downs, Economy, Eldorado Resorts, GLPI, Harrah's, Internet gambling, Isle of Capri, Kazuo Okada, Louisiana, Missouri, Pinnacle Entertainment, Politics, Sports, Steve Wynn, Tilman Fertitta, Tropicana Entertainment, TV, Wall Street, Wynn Resorts | 1 Comment

Cold January in Atlantic City, Pennsylvania; Bull runs rampant in Vegas

Posted on February 15, 2018 by David McKee

Just when everything seemed settled into a comfortable groove in Atlantic City, January revenues fell off the table, down 12.5%. The silver lining, if it qualifies as that, was that online revenues ($22 million) climbed 17%. Golden Nugget, with 33% market share, far outdistanced its closest competitor, Borgata, with 19%. For someone who was initially baffled by the Atlantic City market, Tilman Fertitta has figured it out with a vengeance, Not even Borgata’s terrestrial gambling was spared: Its $53.5 million was an 11.5% decline, with slots revenue of $35 million down 9% on 7% lower coin-in. Borgata tables ($16 million) tumbled 17%, as players wagered 10% less. No casino was spared in the downturn: Tropicana Atlantic City ($23 million) and Resorts Atlantic City ($11.5 million) stanched the bleeding best, off 6%. Grind joint Bally’s fared best in the Caesars Entertainment trio, down 9% with $13 million. Caesars Atlantic City fell a near-catastrophic 23%, grossing Continue reading →

Posted in Animals, Atlantic City, Boyd Gaming, Culinary Union, Current, Dan Gilbert, Detroit, Economy, Eldorado Resorts, Greenwood Racing, Harrah's, Internet gambling, Isle of Capri, MGM Mirage, Mohegan Sun, Neil Bluhm, North Las Vegas, Penn National, Pennsylvania, Pinnacle Entertainment, Sheldon Adelson, Station Casinos, Tilman Fertitta, Tropicana Entertainment | 1 Comment

Quote of the Day

Posted on February 15, 2018 by David McKee

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Florida is on the clock; Political football in New Jersey

Posted on February 14, 2018 by David McKee

In Florida, the clock is running fast on a court order that the state reach an agreement with the Seminole Tribe or kiss at least $250 million (possibly as much as $400 million in proposed legislation) goodbye forever. Part of the problem is that Speaker of the House Richard Corcoran (R, below) and state Sen. Bill Galvano (R, left) are tied to Jeff Soffer‘s apron strings, and Soffer wants to move the Mardi Gras Casino & Racetrack gaming license to Miami Beach, at best, Broward County at worst. Genting Group, which is saddled with expensive Miami real estate it purchased several years ago on the presumption that resort casinos were coming, would like to see a return on its investment, too.

Florida’s lower house would prefer to cut the Gordian knot in a simple fashion, ratifying the new Seminole compact and deregulating DFS. The Senate bill is more convoluted, with some concessions to the tribe but with provisions it will find unpalatable, such as legalizing “designated-player” (i.e., banked) card games across the state, which the Seminoles say tramples on their compacted monopoly on such games. The Senate bill also contains a complicated Continue reading →

Posted in Atlantic City, DFS, Florida, Genting, Horseracing, Internet gambling, New York, Politics, Racinos, Seminole Tribe, Taxes | 1 Comment

MGM wins race in Macao; Wynn complaints proliferate

Posted on February 14, 2018 by David McKee

Whew! For a while it was looking as though MGM Grand Cotai wouldn’t make it out of the starting blocks in time for Chinese New Year. However, the megaresort opened yesterday, with room to spare before the all-important holiday. Architecturally the most striking of all the Macanese casinos, MGM now has to prove itself in the business department, especially after being hobbled by a governmental allocation of only 125 table games, plus 52 imported from the peninsula. (MGM can draw on the supply at MGM Grand Paradise, but that’s a limited pool of 427 tables.) With 1,972 rooms, Grand Cotai triples MGM’s inventory of hotel rooms in the enclave and, in the frills department, boasts 28 Qing Dynasty carpets as part of its decor.

“Based on the numbers we are seeing, the reservations we have got, it was very important for us to open before [Chinese New Year],” MGM China CEO Grant Bowie. As Reuters added, with regard to the timing, “Macau’s January numbers stormed past expectations with a 36 percent year-on-year jump, the 18th gain in a row, on demand from big whale gamblers and mom-and-pop mass punters.” Much of the future of the two MGM casinos will depend on Continue reading →

Posted in Economy, history, Illinois, Indiana, Kentucky, Macau, Massachusetts, MGM Mirage, Missouri, Ohio, Politics, Regulation, Sexual misconduct, Steve Wynn, West Virginia, Wynn Resorts | Comments Off on MGM wins race in Macao; Wynn complaints proliferate

Quote of the Day

Posted on February 13, 2018 by David McKee

“There are often times when I would like corporate statutes and law to comply with what we believe socially, but it doesn’t. It insults me personally that all over America there are people sitting on boards with a CEO who is a sexual predator, but unless it affects the stock price, they don’t care.” — Northern Illinois University Assistant Professor of Law Carliss Chatman on the action (or lack of it) from the Wynn Resorts board to Steve Wynn‘s sexual predation.

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MGM’s sincerity challenged; Probe continues at Wynncore

Posted on February 13, 2018 by David McKee

“Is this legislature capable of setting a course and sticking with it?” That’s the very legitimate question posed by the editorial board of The Day, with regard to the Lege’s rather addled behavior on whether to stand by the satellite casino it authorized in East Windsor or entertain overtures from MGM Resorts International. “There are several problems with following MGM down this primrose path,” opined The Day. “MGM’s sincerity in building a Bridgeport casino is much in question. The company has been telling investors it is not planning more casinos in the United States. MGM is asking state lawmakers to believe it would make another massive investment not terribly far from Springfield to tap a New York market already saturated.”

The paper points out that Fairfield County already voted down a casino, albeit two decades ago. Noting that tinkering with the current tribal compacts imperils Connecticut‘s 25% slot-revenue share, The Day describes MGM’s endgame as Continue reading →

Posted in Election, Foxwoods, Hard Rock International, Harrah's, International, Japan, Macau, MGM Mirage, Mohegan Sun, Politics, Regulation, Sexual misconduct, Singapore, Taxes, Wynn Resorts | Comments Off on MGM’s sincerity challenged; Probe continues at Wynncore

Mohegan Sun strikes again; Magic 8s in Pennsylvania

Posted on February 12, 2018 by David McKee

Even as Steve Wynn was on his way out at Wynn Resorts, the casino he bested for the Boston-area gaming concession, Mohegan Sun, was launching a legal counterattack. It demanded that Wynn Resorts’ license be pulled and the project awarded to Mohegan Sun. That would certainly solve one worry: Who’d take on the $2.4 billion project if Wynn Resorts is deemed unsuitable to operate in Massachusetts?  A Mohegan legal brief argued that “the deck was stacked from the start. The entire licensing proceeding was infected with bias toward Wynn, thus the Court must vacate the entire process, and order MGC to begin the process anew.” Replied the Massachusetts Gaming Commission, “That the commission’s licensing decisions were somehow ‘shot through with bias’ towards Wynn is pure fiction.” Local alarmists are arguing in favor of keeping Wynn in place, contending that the $2.4 billion Wynn Boston Harbor could stand empty for as much as 10 years.

In Macao, the company is in much better shape vis-a-vis Continue reading →

Posted in Animals, Cordish Co., Greenwood Racing, International, Macau, Massachusetts, Mohegan Sun, Ohio, Penn National, Pennsylvania, Sexual misconduct, Sheldon Adelson, Steve Wynn | Comments Off on Mohegan Sun strikes again; Magic 8s in Pennsylvania

Quote of the Day

Posted on February 12, 2018 by David McKee

“[I]n practice, the United States is alone among developed countries in insisting that while human rights are of fundamental importance, they do not include rights that guard against dying of hunger, dying from a lack of access to affordable healthcare, or growing up in a context of total deprivation … at the end of the day, particularly in a rich country like the USA, the persistence of extreme poverty is a political choice made by those in power. With political will, it could readily be eliminated.” — United Nations Special Rapporteur Dr. Philip Alston, on the subject of extreme poverty in America.

Posted in Economy | 1 Comment

Wynn reverses himself; New name, plans for F-blew

Posted on February 12, 2018 by David McKee

Wynn Resorts took a step closer to being taken over or sold off in pieces last weekend. Ex-CEO Steve Wynn submitted a letter saying that the now-famous 2010 stockholders’ agreement which binds Elaine Wynn’s shares with his was “invalid and unenforceable as a matter of law.” According to Deutsche Bank analyst Carlo Santarelli, “Right now, the announcement means nothing. The ball is now in Ms. Wynn’s court as it is up to her to decide if she would like to abolish the Agreement. While Ms. Wynn has wanted to dissolve of the agreement for some time, it is possible that she changes her position with the Court, in which case, the two parties would essentially swap sides of the same argument. If she maintains her existing position, the Court is likely to dismiss the issue and the Stockholders Agreement would then be terminated.” He added that Mr. Wynn has made it clear he has no intention of selling down his position in the company. However, decoupling the voting rights of Elaine Wynn‘s shares from him his own would probably make it harder for him to thwart a sale of the company that he built. (And the wolves are on the prowl.)

Adds Santarelli, “Ms. Wynn has to agree to the proposal, and while likely, we don’t believe it to be Continue reading →

Posted in Fontainebleau, Genting, LVCVA, Riviera, Steve Wynn, Steven Witkoff, The Strip, Wall Street, Wynn Resorts | 2 Comments

Quote of the Day

Posted on February 9, 2018 by David McKee

“We continue to believe that Mr. Wynn’s quintessential strength lies in his resort design abilities. So much so that his resorts have demonstrated superior performance under the management of others, i.e. Bellagio, and thus would hold their value in an [merger-and-acquisition] scenario, which admittedly is more likely given Mr. Wynn’s departure.” — Gabelli & Co. analyst Adam Trivison, attempting to see into the post-Steve Wynn future.

Posted in Architecture, Steve Wynn, Wall Street, Wynn Resorts | Comments Off on Quote of the Day

GLPI picks at Wynn; Indiana players stay home

Posted on February 9, 2018 by David McKee

Gaming & Leisure Properties met with Wall Street analysts this week and it had the future of Wynncore on its mind. “While GLPI remains open to doing Las Vegas asset transactions, they view the risk profile as considerably higher given the volatility and maintenance capital expenditure requirements,” wrote Deutsche Bank‘s Carlo Santarelli. “CEO Peter Carlino made a vague reference, to we believe, Wynn Las Vegas, noting that they are unlikely transaction participants if ‘expectations are anywhere near what I’ve kinda heard'” That doesn’t mean GLPI isn’t in a buying mood: “Management noted that tax reform should aid future transactions as it provides several benefits, as well as clarity.”

In the meantime, GLPI is buying Belterra Park and Penn National Gaming‘s Plainridge Park, and renting them back at $7 million and $25 million, respectively, which seems Continue reading →

Posted in Ameristar, Boyd Gaming, Centaur Gaming, Charity, Economy, Eldorado Resorts, Full House Resorts, GLPI, Harrah's, Indiana, Majestic Star, Mandalay Bay Massacre, Massachusetts, MGM Mirage, Penn National, Pennsylvania, Pinnacle Entertainment, Racinos, The Strip, Tribal, Tropicana Entertainment, Wall Street, Wynn Resorts | Comments Off on GLPI picks at Wynn; Indiana players stay home

Wynn: What’s in a brand?

Posted on February 9, 2018 by David McKee

More than the trouble (and cost) it takes to replace it, experts conclude. Another reason for keeping the founder’s name on Wynn Resorts is one that he would not find flattering: “I think the impact on Wynn Resorts will be short-lived, in part because I doubt most people link these resorts with Steve Wynn or are even aware of him,” opined Stanford University marketing professor Itamar Simonson. Ouch! Even if people had no idea of who Steve Wynn is, his casinos still had brand equity. Donald Trump‘s hotels have performed well despite his numerous peccadillos — although the name “Trump” was the kiss of death for an Atlantic City casino going back at least 10 years. There it meant a third-rate, shabby gaming experience. College of Southern Nevada Women’s Alliance Co-chair Sondra Cosgrove argues that keeping the Wynn name won’t resound well with Millennials, who gravitate to properties with value systems familiar to their own. Even so, it’s going to take a lot more than skywriting by UltraViolet to convince Wynn Resorts’ board that their company’s name is tainted.

UltraViolet might not want to place too much hope in the younger generation, whose reactions Continue reading →

Posted in Atlantic City, Charity, Cretins, Donald Trump, Genting, Japan, Marketing, Massachusetts, Politics, Regulation, Sexual misconduct, Steve Wynn, The Strip, Wall Street, Wynn Resorts | Comments Off on Wynn: What’s in a brand?

Quote of the Day

Posted on February 8, 2018 by David McKee

“[Steve] Wynn’s tone-deaf statement about the resignation is telling. ‘In the last couple of weeks, I have found myself the focus of an avalanche of negative publicity,’ says Wynn. You didn’t find yourself anything, Mr. Wynn. You caused this. You’re not a victim. The victims are victims. You’re not a victim of the media or even your ex-wife. You did despicable things. For decades.” — Vital Vegas author Scott Roeben on the collapse of Wynn’s house of cards.

Posted in Sexual misconduct, Steve Wynn | Comments Off on Quote of the Day

Tribal betrayal in Connecticut; Disappointing year in Schenectady

Posted on February 8, 2018 by David McKee

If the Mashantucket Pequots and the Mohicans feel they’ve been screwed they’re right to do so. Connecticut legislators, in a classic white-man-speaks-with-forked-tongue move, are proposing to tear up the bill that gave Mohegan Sun and Foxwoods Resort Casino a satellite casino in East Windsor. In its place, a bill would be introduced to breach the current gaming compact by designating Bridgeport as the site for a third casino and opening bidding to all comers. This is MGM Resorts International‘s wet dream. Rationalized state Rep. Chris Rosario (D), “The process will let every developer with an interest — whether it is MGM or the tribes or anyone else — give it their best shot. It is a process that is consistent with industry best practices, and it’s best for Connecticut.” Rhapsodized state Rep. Ezequiel Santiago (D), “With its strategic location right in the center of the transportation hub including highway, rail, bus and ferry, Bridgeport is uniquely poised to become an entertainment center that can attract patrons far and near.”

While Gov. Dannel Malloy (D) withheld comment, his spokeswoman allowed that “we have consistently stated that we should aim to Continue reading →

Posted in Economy, Foxwoods, Internet gambling, MGM Mirage, Mohegan Sun, Neil Bluhm, New York, Pennsylvania, Politics, Taxes, Tribal | Comments Off on Tribal betrayal in Connecticut; Disappointing year in Schenectady

Life after Wynn

Posted on February 8, 2018 by David McKee

There may not be much, according to a feature in the New York Times. Wall Street analysts are already circling Wynn Resorts like buzzards. “Elvis has left the building. Mr. Wynn’s value to the company is unarguably profound as its chief visionary and diplomat. As such, we do not believe the company can grow at the same trajectory nor can it maintain its cutting edge position,” wrote Jeffries analysts. They added, “Given the reduced value implied for the company going forward, we believe the value of the market value of the assets could be higher.” In other words, sell the company off in pieces. That would certainly appeal to rival companies that haven’t got the $24 billion scratch for Wynn Resorts in toto or have antitrust concerns but would like to increase their presence in select markets. For instance, perhaps Sheldon Adelson will have a change of heart about his native Boston area, now that Wynn has done most of the heavy lifting in that region. Then again, the $2.4 billion price tag on Wynn Boston Harbor may give him pause, as might projected ROI of just under 10%.

In addition to shareholder lawsuits, Wynn Resorts still has to fend off regulatory concerns. Wynn Macau President Linda Chen was called on the carpet by the Gaming Inspection & Coordination Bureau. In Massachusetts, the chairman Continue reading →

Posted in Boyd Gaming, Dan Gilbert, Eldorado Resorts, Hard Rock International, Macau, Massachusetts, Ohio, Penn National, Pinnacle Entertainment, Racinos, Regulation, Sexual misconduct, Sheldon Adelson, Steve Wynn, Wall Street | 1 Comment

One picture = 1,000 words

Posted on February 7, 2018 by David McKee

Las Vegas visual artist Laura Martin has a one-word solution for Wynn Resorts‘ new branding problem.

Posted in Steve Wynn, The Strip | 1 Comment

Caesars seeks to transform New Orleans skyline

Posted on February 7, 2018 by David McKee

Harrah’s New Orleans was built on the presumption that it would have neither hotel rooms nor restaurant, thereby not sapping the businesses around it. Through some clever — one might even say Machievallian — maneuvers by then-CEO Phil Satre, both restrictions were overturned. Now Caesars Entertainment CEO Mark Frissora is trying a similar gambit, requesting permission to build a 24-story hotel tower. It would be built in a style intended to harmonize with the buildings in the immediate area, and would have a nightclub and more restaurants. The $340 million expansion, would not, however, have additional gaming positions. While you might expect this initiative to go down like a load of coal with Harrah’s competitors, it’s not. In fact, “There seems to be a lot of support,” said state Rep. Walt Leger III (D). State Senate President John Alario (R) is also supportive but has a caveat: “I’d like to know: What else is involved? I just want to make sure the state’s interest is protected. I always like to see the fine print.” He does well to be concerned, as Satre was a master of the fine print, to the detriment of the state’s political establishment.

The hotel addition is thought to be a done deal since it has the backing of Speaker of the House Taylor Barras (R). Other aspects of the hotel would be a rooftop pool and a canopy over Fulton Street, to facilitate Continue reading →

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