Quote of the Day

“Everywhere we build integrated resorts, our mantra is always to build the coolest thing. And Japan will easily be the coolest; we’ll experiment with the latest in technology, latest in building methods, latest in engineering. But in order to do that, we really have to pick a location that is top tier — near major cities with a huge population and also high potential for tourists. We don’t think Tokyo is going to happen. It’s such a fantastic city but it’s a city for government, for financial … it’s less casual when you go to Tokyo. I think the government is thinking of using the integrated resorts as urban revitalization, so I think they’re looking at Yokohama.” — Melco Resorts & Entertainment CEO Lawrence Ho, on the subject of Nipponese casino development. Ho’s willing to invest an unlimited amount of money in the Land of the Rising Sun.

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“It feels like business as usual”

As we mentioned earlier, Deutsche Bank analyst Carlo Santarelli is in Las Vegas this week. He just released an investor note detailing the atmosphere following the tragic events of October 1. I don’t have much to add, so I will take the liberty of quoting Santarelli in extenso. As far as the forward-looking aspects of the tragedy are concerned, he predicts “1) a push for some permanent tweaks to security measures, 2) an increase in operator costs related to enhanced security measures, and 3) a likely softening, to some degree, in peak period demand (New Year’s/Events) … While there is a different feeling in Las Vegas since Sunday night and hotel security is heightened with a more visible police presence on and around casino floors, as well as some Continue reading

Posted in Economy, Law enforcement, Mandalay Bay Massacre, The Strip, Tourism | Comments Off on “It feels like business as usual”

Caesars exits bankruptcy; Station’s California headache

Caesars Entertainment‘s long Chapter 11 nightmare is finally at an end. Regulators in Missouri and Louisiana have signed off on a reorganization that will leave Caesars creditors $10 billion lighter in the wallet. The consummation of the deal is a triumph of tenacity on Caesars’ part and removes an enormous cloud that was hanging over the company’s efforts to move forward. CEO Mark Frissora is now free to purse new opportunities. As for Chairman of the Board Gary Loveman, he promised to step down when the company emerged from bankruptcy. Is he going to make good on his promise or is that just more of his empty bloviation?

* In case you were wondering, yes Virginia, MGM Resorts International is extending its “Welcome to the Show” campaign to include Continue reading

Posted in Atlantic City, California, Harrah's, Illinois, Louisiana, Marketing, Maryland, MGM Mirage, Mississippi, Missouri, Regulation, Station Casinos, Technology, Tribal, Wall Street | Comments Off on Caesars exits bankruptcy; Station’s California headache

Quote of the Day

“There were probably some elements of the Chinese government that thought Macao was growing too quickly. Maybe people like [Sheldon] Adelson and the like were getting rich too quickly.”  — Richard McGregor, author of The Party: The Secret World of China’s Communist Rulers, on the ongoing anti-graft crackdown that has taken such a big bite out of the Macanese economy.

Posted in Economy, Macau, Regulation, Sheldon Adelson | Comments Off on Quote of the Day

A modest proposal; Boyd on the prowl

Warning: You’re probably not going to like this post. That being said, the catastrophe at Mandalay Bay demands a more proactive response from the casino industry. There is always a certain element of risk in life, but we can ameliorate the worst of it. Las Vegas wishes it was Macao, in most respects (albeit with lower taxes). Well, here’s a Macanese idea that could easily be implemented in Sin City. Casinos in Macao are required to have metal detectors at all points of ingress. It’s about time that Vegas took the same measure. The very idea will provoke howls of outrage from some and yet we willingly submit to far greater indignities when boarding a flight to get to Las Vegas.

 

If Stephen Paddock had to pass through a metal detector at Mandalay Bay, we wouldn’t be Continue reading

Posted in Boulder Strip, Boyd Gaming, G2E, Geoff Freeman, history, Law enforcement, Louisiana, Macau, Mandalay Bay Massacre, Massachusetts, MGM Mirage, Palms, The Strip, Wall Street | Comments Off on A modest proposal; Boyd on the prowl

Hot numbers in August; MGM Cotai postponed

Although visitation to Las Vegas was down 2% in August, room revenues and rates were both up 3% (with a hotel room costing you $125/night on average) and occupancy at 91%. JP Morgan analyst Joseph Greff credited the Floyd Mayweather-Conor McPherson fight with driving the RevPAR and ADR numbers. Ditto a 2.5% uptick in convention attendance.  Convention attendance for the year is tracking 6% ahead of 2016. Lower visitor traffic notwithstanding, Nevada gaming revenue was up 15% and the Strip’s rose 21%. That’s impressive, even knowing that August of last year showed a decline. Baccarat players wagered heavily and played most unluckily, with the house winning 38% more. So it was at other table games, with 7% more bet and 18% more lost to The Man.

Strip slot handle was up 3.5% but the one-armed bandits were tight, with players losing 6.5% more than last year. By comparison, Continue reading

Posted in Atlantic City, Boulder Strip, Colony Capital, Cosmopolitan, Downtown, Economy, Fontainebleau, Foxwoods, Hard Rock Hotel, International, Lake Tahoe, Laughlin, Macau, MGM Mirage, Mohegan Sun, North Las Vegas, Politics, Problem gambling, Regulation, Reno | Comments Off on Hot numbers in August; MGM Cotai postponed

G2E: The show must go on; Real hope for Moulin Rouge site

A giant, unstoppable machine, Global Gaming Expo is opening as planned today, despite last night’s bloodbath at Mandalay Bay. G2E officials said they were “closely monitoring the horrific events” of last night, which I hope translates into a higher security profile at G2E, where any nut with a gun could wreak serious havoc. Said American Gaming Association President Geoff Freeman, “The AGA and Reed Exhibitions will be in constant contact with local and national law enforcement and our host, Las Vegas Sands. We will closely monitor the situation and safety remains our priority. The gaming industry is a tight-knit community and Las Vegas is the beating heart of our operations. The AGA and Reed Exhibitions will offer our full assistance as the city recovers, and we will strive to honor the victims of this tragic event.”

Dare we suggest that an impromptu keynote panel on casino security would not only be Continue reading

Posted in Current, Economy, G2E, Geoff Freeman, Macau, Mandalay Bay Massacre, Moulin Rouge, Taxes | Comments Off on G2E: The show must go on; Real hope for Moulin Rouge site

Mass murder at Mandalay Bay

I’m angry today. Angry because, for whatever reason, Las Vegas has become the site of the biggest incident of domestic terrorism in U.S. history, as gunman Stephen Paddock  killed at least 50 people (subsequently updated to 58) at a Mandalay Bay concert and wounded 515 others, from among a crowd of 22,000. (Perhaps we should be thankful the death toll was not worse, given the target-rich environment.)

Perched in a 32-floor room, Paddock made Mandalay Bay’s mid-Strip festival arena his killing zone, gunning down Jason Aldean concertgoers by the score, in a nauseating rat-a-tat of automatic weapons fire. Las Vegas Metro eventually breached the sniper’s nest, Paddock having gone the Adolf Hitler route and killed himself but not until he’d left a field of carnage that gave Las Vegas a “most ever” milestone in history that it never wanted. “As far as we know, Steve was perfectly fine,” said brother Eric Paddock, but since when do mass murderers telegraph their intentions in advance?

Paddock had 17 rifles and automatic weapons with him (and, as any reader of the Las Vegas Review-Journal knows, Americans should Continue reading

Posted in Florida, history, Hooters, Law enforcement, Mandalay Bay Massacre, Mesquite, MGM Mirage, The Strip, Transportation | 1 Comment

Quote of the Day

“If I was. I would activate every Food truck in the country,create blocks of 10,centralize kitchen, 20k meals a day per block” — one of a flurry of Tweets from Las Vegas chef José Andres, who’s on the ground in Puerto Rico, engaging in rescue efforts.

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Case Bets

Rock in Rio having been one-and-done for MGM Resorts International, word is that the latter is pursuing the Kaaboo music festival for its mostly vacant outdoor-concert space up on Sahara Avenue. For the moment, Kaboo says it has “no plans” to move but we’re not sure Kaboo’s fealty is any greater than that of the now-Los Angeles Chargers. If Kaboo ankles, expect it to reach Vegas in 2019. Hey, MGM, if you want to think really outside the box, bring Burning Man Festival to the Strip. Holy culture clash, Batman!

* As the major manufacturers jockey for position in the skill-based-slots tournament, it’s not clear what their target audience is. Gamblit‘s latest gambit is Pac-Man Battle Casino, a multi-player version of Continue reading

Posted in California, Entertainment, Foxwoods, MGM Mirage, Movies, Sheldon Adelson, Technology, The Strip | 1 Comment

Firebugs in Macao; New slots at Harrah’s

Already slowed by construction fatalities, jinx-prone Grand Lisboa Palace has now been ravaged by fire. The best that CEO Angela Leong could say about the casino’s late-2018 opening date was that it was now uncertain. Sociedade de Jogos de Macau has floated the idea of limping into the market by opening undamaged parts of the property to the public while the flame-affected ones (which include floors one through five) are repaired. “I believe everything relating to the typhoon or the fire will have a certain level of impact, but for now we still haven’t evaluated the level of damage so there is nothing I can concretely say on the matter,” Leong initially told the media.

Although no one was killed, thank God, there were injuries and suspicions of arson have been raised by the multiplicity of burning points. The blaze raged for Continue reading

Posted in Arizona, Atlantic City, California, Economy, GameCO, Harrah's, Macau, Massachusetts, MGM Mirage, Nevada, Sociedade de Jogos de Macau, Technology, Tribal | Comments Off on Firebugs in Macao; New slots at Harrah’s

Trump to bigfoot Connecticut controversy?

Could we see heavy-footed federal intervention in the MGM Resorts International vs. Connecticut tribes slugfest? Bridgeport Mayor Joe Ganim (D) hopes so. A supporter of Donald Trump‘s presidential campaign, he’s hoping the White House will stomp into the Nutmeg State fray, interceding on the side of MGM and the City of Bridgeport. Ironically, Trump himself tried to build a casino in Bridgeport in the payback, but lost out to what would become Foxwoods Resort Casino. During that dustup, Trump demonstrated his propensity for ethnic slurs, saying of the Mashantucket Pequots, “They don’t look like Indians to me … I look more like an Indian.” (The Clinton administration disagreed.)

“There’s a very specific reason why Joe hasn’t taken a hard line against Trump like other Continue reading

Posted in DFS, Donald Trump, Economy, Election, Foxwoods, Galaxy Entertainment, Genting, Geoff Freeman, International, Macau, MGM Mirage, Mohegan Sun, Regulation, Singapore, Sports, The Strip | Comments Off on Trump to bigfoot Connecticut controversy?

Palms renovation weighs upon Station; Japan dithers on casinos

Calling Palms renovations “an issue that has been persistent all year and whose magnitude keeps surprising us to the downside,” J.P. Morgan analyst Joseph Greff lowered revenue projections for Station Casinos for the remainder of the year, extending into early next year. “We now model Palms contributing zero dollars of [cash flow] from 3Q17 until mid-2Q18,” he wrote, citing 40% of the casino floor being out of action, not to mention disruption of the food court. Not to worry, he anticipates that customers will return once the new-and-improved Palms debuts. However, renovations to the nightclubs and hotel rooms loom on the horizon, so expect disruptions to continue for a while, as Station pours $146 million into upgrading the resort.

Not all the news is bad. Once the Palms has been redone, Greff anticipates double-digit Continue reading

Posted in Dining, Entertainment, Foxwoods, Mohegan Sun, Regulation, Scientific Games, Sports, Station Casinos, Technology, Wall Street | 1 Comment

Quote of the Day

“I can’t imagine any scenario in which the tribal nations would agree to open up the compact on those grounds. I can’t imagine entering into an agreement with any entity that would endanger our agreement with the tribal nations.” — Connecticut Gov. Dannel P. Malloy (D), rebuffing proposed MGM Bridgeport, which would cost the Nutmeg State $500 per biennium in lost tribal slot revenue-sharing,

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A picture worth 1,000 words

Rev. Martin Luther King Jr. and Jackie Robinson, exercising their First Amendment rights,

Posted in history | 1 Comment

MGM gets potty-mouthed; New York casino flops

MGM Resorts International‘s casinos-without-gaming new ad campaign is playing to divided opinions. For instance, the company has 100,000 square feet of gaming at Bellagio but you won’t spot so much as a pair of dice in the ad, yet MGM claims that its shows and restaurants “form the nexus across the company’s 27 distinctive resort destinations.” Gambling? That’s so 2008. There’s 100% more Cirque du Soleil than gaming in the commercials, except in the YouTube version, which devotes a whole two seconds to gambling. True, you can get the casino experience close to home nowadays but the casino floor remains ubiquitous and unavoidable in Las Vegas. For instance, Aria reverted to the old-school business model of making hotel guests trek through the gaming floor to get to their rooms — a mentality that one thought had gone out with Bellagio. MGM may derive ‘only’ 40% of its revenue from gambling but you don’t see it building any casino-free hotels on the Las Vegas Strip, unless you count Vdara,

One gaming analyst took the ads in stride, saying, Continue reading

Posted in Cirque du Soleil, CityCenter, Genting, International, Lawrence Ho, Marijuana, Marketing, MGM Mirage, Neil Bluhm, New York, Philippines, Politics, Sports, Tribal, TV | 2 Comments

Trying again in Kentucky; Trump Taj goes tits up

Casinos and Kentucky politicians have been like oil and water. But there’s nothing like a pension-fund crisis to focus people’s attention and the Bluegrass State faces a $33 million shortfall on its obligations. Hence a proposal for “limited” casino gambling, although the proposed 10 casinos doesn’t sound particularly limited to us and may be too big of a pill for the churchy set to swallow. State reps Dennis Keene (D) and Rick Rand (D) are behind this latest push. They predict casinos will generate $236 million in taxes a year, which looks mighty optimistic but would be within the realm of possibility, assuming a high levy. (Atlantic City generates that much for New Jersey, even at a much lower rate.) License fees would total $325 million. Rand says he bases his projections on how neighboring states have performed, and some of what Kentucky loses to Indiana and Ohio could certainly be recaptured under the Rand-Keene bill, which not only has to pass the Lege but also a general election.

Kentucky’s seven racetracks would undoubtedly be first in line when the casino licenses are handed out. They would report to Continue reading

Posted in Atlantic City, Dan Gilbert, Detroit, Dining, Economy, Election, Hard Rock International, Indiana, Kentucky, Marijuana, Nevada, Ohio, Politics, Racinos, Taxes, TV | 1 Comment

Hall of Fame game

Inductees to the American Gaming Association‘s Gaming Hall of Fame have sometimes been questionable (mobbed-up Clifford Perlman, for one) but this year’s foursome are unlikely to stir controversy. In a family affair, Paragon Gaming CEO Diana Bennett joins her late father in the HoF, albeit not on the grounds that she fleeced Sam Nazarian to the tune of $1 billion when she sold the Sahara (and if he were not to be sheared, God would not have made Nazarian a sheep).

Her citation reads, in part, “Bennett earned a reputation as an expert in establishing gaming systems during her time as the president of Casino Data Systems (CDS), where she Continue reading

Posted in Aristocrat, Entertainment, Geoff Freeman, history, Hooters, International, Lake Tahoe, MGM Mirage, North Las Vegas, Paragon Gaming, Riviera, Sahara, Sam Nazarian, Steve Wynn, Technology, The Mob, The Strip, Westgate LV | Comments Off on Hall of Fame game

Escalating war at Hard Rock; New slots flood the market

Leadership of the Culinary Union has gone thermonuclear on the Hard Rock Hotel & Casino, filing a National Labor Relations Board complaint against owner Brookfield Asset Management. The latest broadside from the Culinary against Brookfield alleges that “the company has rules suppressing employees’ free speech, including prohibitions against saying anything to discredit the company, talking about personnel matters, saying negative things about the company on social media, engaging in ‘rebellious’ behavior, etc. Despite Hard Rock Las Vegas’ claim that it wants employees to be able to ‘express themselves’ they are prohibited from wearing union buttons.”

This follows a September 8 blast from the union, to the effect that “the company in anti-union communications to its workers promised to Continue reading

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MGM Bridgeport … ?!?; Battle lines drawn in Maine

Poor MGM Springfield. It’s not even finished and MGM Resorts International is already off on a snipe hunt in Connecticut. Like Steve Wynn many years ago, it is proposing a casino for Bridgeport. MGM says it is prepared to invest $675 million in the project and pay annual host-community fees of $8 million. CEO Jim Murren must be really scared of that tribal satellite casino in East Windsor, even though it won’t be open before he starts doing business in Springfield. MGM’s promising 7,000 jobs for the depressed Bridgeport area and $50 million to the state in exchange for a license. It’s even commissioned a design for the casino-hotel. Desperate much?

Getting a bit carried away, Murren promised, “This project can help to turn the economic tide of this state. We just need the Continue reading

Posted in e-sports, Economy, Election, Foxwoods, history, Maine, Marketing, Maryland, Massachusetts, MGM Mirage, Mohegan Sun, Nevada, Politics, Regulation, TV | Comments Off on MGM Bridgeport … ?!?; Battle lines drawn in Maine