Quote of the Day

“I’ve changed my mission from making New Jersey the Silicon Valley of Internet gaming to the mecca of Internet gaming.” — state Sen. Raymond Lesniak (D), author of a bill that would remove the requirement that the state’s online-gaming servers all be located in Atlantic City. How he hopes to get around the necessity for states to compact with one another to share liquidity remains unsaid.

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Mickey Mouse comes to Sin City; Unrest at MGM

Locals might cringe every time the “What happens in Vegas stays in Vegas” cliché is trotted out — in part because what happens there usually finds its way to YouTube within hours, if not minutes. However, the staying power of its source, the “What happens here, stays here” series of commercials is pretty amazing. When the Las Vegas Convention & Visitors Authority rolled it out in 2003, who thought it would still be going strong 14 years later? It’s spared creator (and owner) R&R Partners a lot of gray matter, as they don’t have to come up with a new brand for Sin City for the foreseeable future. The LVCVA soft-pedaled the campaign during the Great Recession but it’s never fully gone away and surely inspired The Cosmopolitan‘s attempted approximation, “The Right Amount of Wrong,” which didn’t have quite the same swing to it.

I wouldn’t go as far as Thrillist and imply that “What Happens Here Stays Here” saved the Las Vegas Strip from Continue reading

Posted in Cosmopolitan, Culinary Union, e-sports, Economy, history, LVCVA, Marketing, MGM Mirage, Mississippi, Taxes, The Strip, Transportation | Comments Off on Mickey Mouse comes to Sin City; Unrest at MGM

Dover downer; Connecticut rewrites the rules

Expect another request for tax cuts from Dover Downs after the Delaware racino posted a 96% decrease in second-quarter profits. (Slots are taxed at a usurious 43%.) While Dover Downs made $32,000, it suffered a 7% decline in casino revenues. A piquant Delaware law requires racinos to close on Christmas and Easter, and the latter happened to fall in 2Q17. CEO Denis McGlynn also has been pressing Gov. John Carney for increased promotional efforts on the casino industry’s behalf — although, having extracted that 43% pound of flesh, it’s an open question whether Carney would reinvest it right back from whence it came.

“The balance of our performance reflects the expected impacts of our increasingly competitive market,” said McGlynn and he’s not Continue reading

Posted in Atlantic City, Cordish Co., Delaware, Foxwoods, GameCO, Greenwood Racing, Harrah's, International, Marketing, MGM Mirage, Mohegan Sun, Pennsylvania, Politics, Racinos, Regulation, Taxes, Technology, Tribal | 1 Comment

Quote of the Day

“The suburban casino smells like vanilla. Trust us, it does. And not some lowbrow, bodega-incense vanilla, either. It smells like a Diptyque candle or fancy shampoo. Like vanille, sourced from some formerly colonized nation. Like rich people. If you do not come from wealth, it’s intoxicating, this scent that permeates the MGM National Harbor. It sticks to your hair and your clothes, quietly bathing you in status.” — from a satire of MGM’s new casino, penned by the Washington Post’s Lavanya Ramanathan, whose taxi driver asks her afterward, “May I ask, what perfume are you wearing?

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Revel sold? Sez who?; Wynn loses his shirt

Atlantic City may have seen the last of Glenn Straub. Last week, Global Gaming Business Editor Roger Gros took to Twitter to announce that Revel (aka Ten) had been sold, former exec Mark Juliano — late of Sands Bethlehem — would return to the helm and it would reopen as a casino … something that was far from certain under Straub’s mercurial ownership. If true, this news would explain Juliano’s sudden departure from Las Vegas Sands. So far that seems to be the only report to date on what would a pretty radical piece of news along the Boardwalk. Could the alleged buyer be that mystery private-equity firm that Straub denies having met? Only PR firm Digital Launch knows for sure and they’re not talking other than to say it’s a hospitality company that would (unlike Straub) apply for a gaming license.

Channeling his inner Donald Trump, Straub has called the rumored purchase offer “fake news,” going on to say,  Continue reading

Posted in Atlantic City, Glenn Straub, Hard Rock International, Harrah's, Lawrence Ho, Macau, Melco Resorts & Entertainment, MGM Mirage, Neil Bluhm, New York, Pennsylvania, Racinos, Regulation, Revel, Sheldon Adelson, Sociedade de Jogos de Macau, Steve Wynn, Wall Street | Comments Off on Revel sold? Sez who?; Wynn loses his shirt

Land of the Sinking Hopes?; MGM hearts McCain

If Japanese casinos must be majority-owned by local companies, that suits Sega Sammy Holdings just fine. The company is challenging the likes of Galaxy Entertainment, Las Vegas Sands and MGM Resorts International for one of the initial casino licenses. Of course, we could see — in fact, are likely to see — a Sega Sammy scenario in which the company takes the majority position in a megaresort project and one of the gaijin casino developers, like Wynn Resorts, holds a minority stake. Galaxy and Hard Rock International have already embraced this possibility, without explicitly naming any prospective partners.

“We definitely want to take a bigger stake in Japan—not just the entertainment part, but the whole resort,” remarked Continue reading

Posted in Cordish Co., Foxwoods, G2E, Galaxy Entertainment, Geoff Freeman, Hard Rock International, Harrah's, Horseracing, International, Japan, MGM Mirage, Mohegan Sun, Politics, Problem gambling, Sheldon Adelson, Singapore, Tribal | Comments Off on Land of the Sinking Hopes?; MGM hearts McCain

Adelson: I did it my way

Despite Las Vegas numbers that were deemed disappointing by Las Vegas Sands execs, the company still managed to haul in $3 billion-plus in 2Q17, driven in part by the opening of Parisian in Macao. “I think you know this quarter was disappointing in terms of the lodging component, which is more and more important in Las Vegas,” COO Rob Goldstein allowed during the conference call, before predicting better results in the back half of the year: “business is picking up and the group business is accelerating, so we’ll do well.”

Table-game revenue at Venelazzo was one of several bright spots, up 16%. While Goldstein talked dollars and cents, CEO Sheldon Adelson couldn’t resist Continue reading

Posted in Dining, Illinois, Macau, Penn National, Sheldon Adelson, Technology, The Strip, Wall Street | Comments Off on Adelson: I did it my way

Quote of the Day

“[Americans] frequently misunderstand the nature of gambling addiction, seeing it as a symptom of moral weakness rather than a medical condition. [It’s why] people with problems are reluctant to get help.” — National Council on Problem Gambling Executive Director Keith Whyte on the difficulty of obtaining funding for problem-gambling treatment.

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The allure of Brazil; DraftKings blows a gasket

Jan Jones Blackhurst has really been racking up the frequent-flier miles on behalf of Caesars Entertainment, having made multiple trips to Brazil to assess the potential for casinos down there. She’s narrowed down the possible sites to Brasilia, Sao Paulo, Salvador da Bahia and (of course) Rio de Janeiro, although her top pick might surprise you. “Personally, I like Brasilia,” the original CityCenter, “because it’s the capital and many affluent people live there. It’s very safe.” Over at Las Vegas Sands, President Rob Goldstein seconded Jones’ enthusiasm, noting that Brazil (like Japan) has a large population base. “He decided to have a look for himself and he was impressed with what he saw,” said Goldstein of CEO Sheldon Adelson‘s May reconnaissance of the country.

Of course, there’s the little matter of casinos being presently illegal Continue reading

Posted in Australia, Brazil, Economy, GameCO, Harrah's, Internet gambling, Macau, Massachusetts, MGM Mirage, Oklahoma, Sheldon Adelson, Steve Wynn, Technology, The Strip, Tribal | Comments Off on The allure of Brazil; DraftKings blows a gasket

Quote of the Day

“As soon as the government lets us, we’ll build more new and beautiful hotel rooms. We have property on both sides of our current land concession and we have already built connections to both sides of it, so we can build rooms when we want. We will erect beautiful hotel towers with convention and meeting space the minute we’re allowed to do it.” — Steve Wynn, outlining his aspirations for Macao during this week’s earnings call.

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Palace coup; India: No Goa

While Station Casinos still hasn’t made up its mind whether to add a new hotel tower to Palace Station (with 606 rooms spread over 27 stories), it’s filed plans with the City of Las Vegas, just in case it decides to move forward. The reinvention of Palace Station could also include an all-important convention center (nightclubs are so 2015), a pool deck, an outdoor restaurant and 42,252 more square feet of casino space. It’s also unclear at this point whether the remodeling would undo the convoluted layout of Palace Station, which has very bad chi in that respect. If the Fertitta Brothers took my advice (and that’ll be the day), I’d say tear out everything except the existing hotel tower and the new bingo room and start anew.

The new hotel would add nicer rooms but wouldn’t Continue reading

Posted in Architecture, Atlantic City, Boyd Gaming, Dining, Donald Trump, Economy, history, International, Internet gambling, Palms, Regulation, Station Casinos | 1 Comment

Of clowns and hackers

 

If you miss the old Boardwalk Casino on the Las Vegas Strip (which died so that CityCenter could live; they don’t call it “City Cemetery” for nothing) and have $900,000 under the sofa cushions, do we have a deal for you. Up in Tonopah there’s a hostelry called — we kid you not — the Clown Motel. If this sounds like a disturbing and fucked-up concept in hospitality, just wait, it gets worse: It’s been dubbed “The scariest motel in America.” (Considering that Lizzie Borden‘s house is now a B&B, that’s quite an honorific.)

How messed up is the Clown Motel? “Hundreds of clowns stare from every corner, the walls are hung with Continue reading

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Mohegan Sun rules; Conflict over e-sports

Executives at Mohegan Gaming Entertainment can take a victory lap this morning. Readers of USA Today voted Mohegan Sun the finest casino in America, edging out Caesars Palace for the top spot. Bracketing Caesars was another tribal casino, Pechanga Resort & Casino, in California. Another Caesars Entertainment property that is up and coming rapidly, The Cromwell, took the #8 spot. The dark horse on the list, given its small market, was Hard Rock Hotel & Casino, in Sioux City, Iowa. Hard Rock urged its patrons to stuff the ballot box and the lobbying campaign paid off. Just below Hard Rock, in the #10 spot, was Station Casinos‘ flagship property, Red Rock Resort. Other casinos on the list were L’Auberge du Lac (#4), Borgata (a surprisingly low #5), Peppermill Resort Spa Casino, in Reno (a surprisingly high #6) and Foxwoods Resort Casino (lucky #7).

The big takeaway from the survey is that, Continue reading

Posted in Arizona, Atlantic City, California, Downtown, e-sports, Foxwoods, Harrah's, Iowa, Louisiana, MGM Mirage, Mohegan Sun, Pinnacle Entertainment, Regulation, Reno, Sheldon Adelson, Station Casinos, Steve Wynn, The Strip, Tourism, Tribal | 2 Comments

Pennsylvania: Small is lucrative; Sleazy doings in Maine

Lawmakers in Pennsylvania have passed an unbalanced budget but are still undecided on how (not “if”) to expand gambling to cover the shortfall. One late-entrant idea that is gaining more traction than anything else is the proposal of mini-casinos, 10 of them. (The size of the casinos still appears to be undefined.) This would give the Keystone State three tiers of casinos: big, Vegas-style ones like Rivers Casino in Pittsburgh; smaller, restricted-admission resort casinos like Valley Forge (which sits immediately below the bluff upon George Washington encamped his army) and now “mini casinos.” Penn National Gaming is crying foul, since most of the prime locations happen to be around its eponymous racino near Harrisburg.

Complained Penn spokesman Eric Schippers, “The vast majority of the potential sites for these new casinos fall within Continue reading

Posted in Affinity Gaming, Election, Foxwoods, Genting, Harrah's, Maine, Massachusetts, MGM Mirage, Mohegan Sun, Neil Bluhm, Penn National, Pennsylvania, Politics, Regulation, Tribal | Comments Off on Pennsylvania: Small is lucrative; Sleazy doings in Maine

Play dirty; Ayre beats the rap

One of the great things about Nevada‘s gambling industry is that it’s a free market. If you’ve got the capitalization and qualify for a license, any number can play. (Actually, some have gotten licensed only to be exposed as empty suits, but we won’t belabor the point.) In a bit of dirty pool, three Carson City casinos went to court to try and impede competition. The owners of Carson City Nugget, Gold Dust West and Casino Fandango asked the courts to block the licensure of Michael Pegram to reopen the defunct Horseshoe Club. What gave the plaintiffs conniption fits was that regulators had not revoked the Horseshoe Club’s exemption from needing to have 100 hotel rooms, grandfathering Pegram into this status. Horrors! The plaintiffs had already had their bite of the apple when Pegram was going through the licensing process and deserved the verdict they received. Chalk up a victory for the Carson City economy.

* Calvin Ayre got off really easy. The Continue reading

Posted in Australia, Crown Resorts, Culinary Union, Donald Trump, Genting, International, Internet gambling, James Packer, Law enforcement, Nevada, Regulation | Comments Off on Play dirty; Ayre beats the rap

Louisiana: Hot in June

Gambling revenues in the Pelican State enjoyed a 5% jump last month, reaching $213 million (not counting slot routes). How good was business? The “worst performing” market, Lake Charles, was up 1%. L’Auberge du Lac ($27 million) had an aberrantly poor month, tumbling 11%. What Pinnacle Entertainment lost at L’Auberge, Tilman Fertitta made up at Golden Nugget ($24 million), vaulting 14.5%. Isle of Capri ($10 million) was flat but Boyd Gaming‘s Delta Downs ($15 million) gained 7%. In Baton Rouge, Pinnacle’s L’Auberge Baton Rouge ran away with the market, posting $15 million on a 15% gain. The best that Casino Rouge (+2%) and Belle of Baton Rouge (+15%) could between them was $11 million.

Casinos in New Orleans seem to have adjusted nicely to the smoking ban. Harrah’s New Orleans grossed Continue reading

Posted in Boyd Gaming, California, Churchill Downs, Eldorado Resorts, GLPI, Harrah's, Isle of Capri, Law enforcement, Louisiana, Penn National, Pinnacle Entertainment, Racinos, Tilman Fertitta, Tribal, Tropicana Entertainment | Comments Off on Louisiana: Hot in June

Starting over at the Taj

“I think that we were trying to copy what was happening in Vegas. Everything out there had a theme, and I think that is what we were trying to do.” So says former Trump Taj Mahal executive Steve Norton about the ultra-gaudy casino that become his erstwhile boss’ signature property. The beginning of the end of the Donald Trump era came this week, as Hard Rock International began removing the marquee and some external decorations, just the first step in converting the Taj into a sleek, modernistic, Hard Rock-branded resort. Interestingly, Trump was more forward-thinking than some of the his, favoring an open casino-floor plan of the type that has become standard, while Norton leaned toward the traditional maze layout (and if you’ve ever Continue reading

Posted in Architecture, Atlantic City, California, Carl Icahn, Donald Trump, Greenwood Racing, Hard Rock International, Harrah's, history, Neil Bluhm, Nevada, Pennsylvania, Regulation, Tribal | 1 Comment

Wynn: The inevitable happens; Tribes have boffo year

We knew this day had to come: Wynn Resorts is going to charge for self-parking at Wynncore, starting August 7. The fee structure is very much like those of other Strip casinos that have gone the self-parking route, although offering no discount for disabled motorists is a low blow. One could argue that the paid-parking model is another step in making Las Vegas just like other major cities, but much of Vegas’ appeal was built on its otherness. Like MGM Resorts International and Caesars Entertainment before it, Wynn has obviously done the calculus and concluded that alienating the locals is either irrelevant or an acceptable risk when tapping a new revenue source. At least Wynn is giving something back, in the form of as-yet-undisclosed discounts for Red Card customers. We learn to be grateful for so little these days.

On its Massachusetts front, Wynn is rewriting the state’s liquor laws. The company wants to extent alcohol service until Continue reading

Posted in Entertainment, Harrah's, Law enforcement, Massachusetts, MGM Mirage, Penn National, Politics, Station Casinos, Steve Wynn, The Strip | Comments Off on Wynn: The inevitable happens; Tribes have boffo year

Two decades in Detroit; Juliano out at Sands

Can it really be 20 years since casinos were legalized in Detroit? (It’s been 18 years since MGM Grand Detroit opened.) Time flies and so does casino lucre — straight into city coffers. Then-Gov. John Engler (R) had to dragged kicking and screaming into approving Motown casinos but they’ve been a winning bet, backstopping city revenues during a painful civic bankruptcy. Over the first 20 years of the life of the Michigan Gaming & Revenue Act, $4.5 billion of casino taxes have flowed into state and city bank budgets. The casinos employ roughly 6,800 Detroiters are do business with 1,400-odd firms.

Public education has been a prime beneficiary, to the tune of $1.9 billion. Regulation also appears to be working smoothly, including the state’s self-exclusion policy, which has weeded out Continue reading

Posted in Detroit, Economy, history, Internet gambling, Law enforcement, Massachusetts, MGM Mirage, New Hampshire, Pennsylvania, Politics, Sheldon Adelson, Steve Wynn, Taxes, Tropicana Entertainment | Comments Off on Two decades in Detroit; Juliano out at Sands

Revel: The great silence; Strangulation in Japan

Atlantic City casino owner clueless over $220M offer.” So read one of the headlines about the mystery New York City private equity firm that is ostensibly proffering $220 million (up from $200 million) for Revel and owner Glenn Straub‘s professions of ignorance about the whole matter. On the other hand, if New Jersey doesn’t give him preferential treatment and allow him to reopen the megaresort without a gaming license, “Maybe we will have to look for someone else.”

Straub’s ignorance that he wouldn’t need a gaming license for Ten is premised on the argument that he’s ‘only’ getting third-party lease payments. But where is putative casino manager Robert Landino getting that money? From the casino, of course. So Straub benefits from gambling after all. Then again, he may be playing coy about the purchase offer in hopes of extracting more bidders. With Straub it’s always Continue reading

Posted in Atlantic City, GameCO, Glenn Straub, International, Internet gambling, Japan, Macau, Mohegan Sun, Regulation, Revel, The Mob, Wall Street | Comments Off on Revel: The great silence; Strangulation in Japan