Quote of the Day

“I had such a headache when I left. Two bigger egos there are not.” — Las Vegas Mayor Carolyn Goodman, commenting on ex-Mayor Oscar Goodman and former casino mogul Donald Trump, who once debated a potential Trump development for downtown Vegas.

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Trump Taj: Everybody loses; Mixed bag for Boyd

Labor Day weekend will be the final hurrah for Trump Taj Mahal. Owner Carl Icahn has expressed his intent to close the struggling casino rather than continue to negotiate with trump-taj mahastriking Unite-Here Local 54. ““I would never have thought Carl Icahn was so one-dimensional … For a few million bucks, he could have had labor peace and a content workforce,” Local 54 President Robert McDevitt said, “but instead he’d rather slam the door shut on these long-term workers just to punish them and attempt to break their strike.There was no element of trying to reach an agreement here on Icahn’s part; it was always ‘my way or the highway’ from the beginning with Icahn.” In a written statement, Tropicana Entertainment CEO Anthony Rodio fired back, writing, “Our directors cannot just allow the Taj to continue burning through tens of millions of dollars when the Union has single-handedly blocked any path to profitability.” Rodio added that Tropicana “has lost almost $100 million trying to save the Taj when no other party, including the prior equity owners who put it into its recent bankruptcy, was willing to invest even one dollar to save it. Currently the Taj is losing multimillions a month, and now with this strike, we see no path to profitability.”

The timing is especially infelicitous, as the strike had hit just when Rodio’s improvement campaign was yielding better revenue at the Taj. (Hard as it is to believe now, this was once the market’s highest-grossing casino.) Still, as the Wall Street Journal notes, its workers are some of Atlantic City’s lowest-paid, averaging $12 an hour, so they could hardly Continue reading

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Nevada’s oldest casino turns 85; Flynt doubles down on Lucky Lady

Contrary to the impression of many, yours truly included, the oldest operating casino in Nevada isn’t the Golden Gate but the 85-year-old Railroad Pass, just outside of Boulder railroad-picCity. It even still has its original vault. New owner Joe DeSimone Jr. is marking its anniversary not with words but deeds, including updating hotel rooms so musty-looking that even the Web site seemed coated with dust. (Cathode-ray TV sets in 2015? Really?) The Railroad Pass had suffered from a period of neglect under former owner MGM Resorts International. DeSimone has set out to reverse that trend. He’s also going to augment the already trucker-friendly Railroad Pass with a new truck stop, in anticipation of the opening of the Boulder City Bypass. In an industry in which the small operator is an endangered species, DeSimone’s entrepreneurial spirit is to be lauded.

* “Macao is obviously short of a family theme park” said Galaxy Entertainment executive Raymond Yap, giving a further preview of Continue reading

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Mashpee casino blocked; Wynn: Doing more with less

Carcieri v. Salazar and the Indian Reorganization Act have come back to bite the Mashpee Wampanoag tribe in the hindquarters. U.S. District Judge William G. Young has ruled Taunton casinoagainst a Taunton casino project, siding with the contention of a group of Massachusetts property owners that the Interior Department lacked standing to grant land-in-trust status to the tribe because the latter wasn’t a federally recognized band in 1934. (The Mashpee weren’t recognized until 2007.) While the tribe isn’t tipping its hand whether construction will continue on Project First Light or not, it’s definitely planning an appeal. Said Chairman Cedric Cromwell, “Our people have been challenged throughout history and we are still here, living on the land of our ancestors. I have no doubt we will prevail.”

While taking a victory lap, plaintiff Michelle Littlefield said, “It isn’t about a casino, it’s about land in a trust, and it’s now under state and local control. Our goal has always been that there be Continue reading

Posted in Boyd Gaming, Charity, Eldorado Resorts, Foxwoods, Genting, Harrah's, history, International, Internet gambling, Isle of Capri, Macau, Massachusetts, MGM Mirage, Mississippi, Neil Bluhm, Pennsylvania, Regulation, Steve Wynn, Taxes, Tilman Fertitta, Tribal | Comments Off on Mashpee casino blocked; Wynn: Doing more with less

Land of the Rising Hopes; Delaware racinos struggle

It will take a constitutional amendment to make it happen but casinos could be back on the political agenda in Japan. In a promising development, he strengthened his position abein the Diet, apparently freeing his Liberal Democratic Party from its dependance on the anti-gambling Komeito Party, which had doomed one casino initiative after another. Given the widespread skepticism over the efficacy of so-called “Abenomics,” (“Even in Japan there is a limit to the number of shinkansen trains and bridges and roads to nowhere that can be built”) the prime minister needs a new engine of fiscal stimulus and expanded gambling might be it.

Even without the Komeito albatross around his neck, Abe is hinting at a curtailed legalization of casinos, restricting them to Tokyo and Osaka, with each city getting one megaresort, probably opening in 2022, best-case scenario. Also, Western companies looking to get one of the few seats at the table (MGM Resorts International has been particularly ardent) will probably have to Continue reading

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Quote of the Day

“The chief minister should go to Las Vegas and Macao. Macao also has large casinos and is dominated by the casino lobby. The identity of Macao is finished. It is ruled by the casino mafia.Tomorrow they will take over Goa. [Casino operator] Jaydev Mody will decide who will be a minister and a chief minister. In 10 years, casinos will take over Goa and all of us.” — Minority legislator Pandurang Madkaikar decrying the size of the casino industry (14 ships and hotels) in the city of Goa and demanding that the government of India take action.

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June in Vegas: The house won; Wynn gets spanked in Macao

While a 10% increase in June gambling revenues on the Las Vegas Strip fell short of some Wall Street analysts’ projections, it was a healthy month nevertheless. Slot Cosmopolitan Las Vegaswinnings were up 10% ($253 million) on only 1% higher coin-in. Luck was really with the house at baccarat, where revenue vaulted 32% despite 12% less money wagered. Baccarat play remains in a 13-month swoon but results like June can keep casino moguls whistling past the graveyard. Other table games saw 9% less money dropped on the felt but Las Vegas Strip casinos eked out a 1% increase, to $159 million. For a change, the Strip heated up more than locals markets, where revenues rose 3%, to $183 million. Players beat the house, winning 9% more on 3% increase in wagers.

Most of the gain for local operators was in the nebulous “balance of Clark County” jurisdiction. Downtown was flat, as was the Boulder Strip, while North Las Vegas lost a percentage point. It certainly was a good month for Continue reading

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Quote of the Day

“When the [Cherokee Nation] casino went in and we had other businesses go in, I think it sparked stability for our community. People aren’t afraid to build here. The Cherokees are good neighbors of ours.” — Sallisaw, Oklahoma Mayor Julie Ferguson, vouching for the positive economic impacts on tribal gaming on the surrounding area.

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Trailer trash in Boston; New crisis looms in Atlantic City

Massachusetts lawmakers may have thought they’d settled the question of casinos in the Bay State when they voted to baptize three resorts and slot parlor. However, thanks to a Healeyruling by state Attorney General Maura Healey, a ballot question here and a ballot question there, and voters could put additional casinos pretty much anywhere they want. OK, it’s not quite that easy. The Massachusetts Gaming Commission gets to weigh in on the constitutionality of the casino-to-be and, in this case, Revere has to be persuaded to give the project its blessing. But don’t count out developer and international man of mystery Eugene McCain. He wants to build a slot parlor on the site of a trailer park and compel nearby Suffolk Downs to revive horseracing (the ballot question specifies that the parlor must be within 1,500 feet of a racing oval). The Boston Globe calls this curate’s egg, “one of the most mysterious ballot questions voters have confronted in years.”

Suffolk Downs COO Chip Tuttle, who lost out on a megaresort bid, is even blunter. “We have not and do not plan to support it,” he told the Globe. “And as far as gaming on the … property, we think Continue reading

Posted in Atlantic City, Economy, Election, Horseracing, Lawrence Ho, Macau, Maine, Marketing, Massachusetts, Melco Crown Entertainment, Regulation, Sheldon Adelson | 1 Comment

Analysts: Buy Penn!; Veteran columnist calls it quits

According to J.P. Morgan analyst Joseph Greff, “meaningful contributions” from the Tropicana Las Vegas, Plainridge Park Casino and Illinois slot route Prairie State Gaming drove a 14.5% improvement in Penn National Gaming‘s cash flow last Penn logoquarter. M Resort hit a record level in that department and Greff reported continuing improvement at the Trop, all this despite “economic and political uncertainty that is weighing on discretionary spend.” Penn management also noted positive results from a tweaked casino floor and new marketing strategy at Plainridge. At the Trop, room revenues are up 6.5% and volume of slot play has increased 30% (although some of the latter could reflect a winnowed-out slot inventory). Penn continues to wean the old gal off online travel agencies, getting OTA room nights down to 36% from 52% a year ago. It credits 10,000 room nights in May and June to incorporation of the Marquee Rewards loyalty program. As for the oft-mooted Phase II, customer feedback has Penn looking at investing in more non-gaming amenities rather than adding hotel rooms.

In the San Diego area, Hollywood Casino Jamul continues to plod toward a vaguely late-summer opening. In addition to getting 30% of Continue reading

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Quote of the Day

J'Adoube“Of all God’s creatures, there is only one that cannot be made slave of the leash. That one is the cat.” — Mark Twain

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Poker players 1, Adelson 0; Competition in Maryland gets ugly

For the first time in anyone’s recollection, the Republican Party has dropped its opposition to Internet poker from the election platform. It’s a win for the Poker adelson_t200Players Alliance, which lobbied for the change of heart. This doesn’t mean the GOP is about to embrace Internet gambling. But if it reframes the i-gaming debate as a state-level issue … that’s where it should have been all along. However, you will pardon us if we enjoy the egg on the faces of Sheldon Adelson, sugar daddy of the GOP, and Indiana Gov. Mike Pence (R), another bitter foe of online poker. However, at the top of the ticket you have Donald Trump, who — as a private citizen — has dabbled in prospective Internet gambling. It would hardly do for the party to give him the finger by dissing one of his fields of endeavor. Compound this with the grisly demise of Restore America’s Wire Act in the last Congress and Adelson’s Luddite crusade against the evil Internet seems to be breathing its last, thank God.

* MGM National Harbor hasn’t opened yet and already the competition with Maryland Live has turned nasty. The latter is alleging that ex-Cordish Gaming employees made off with a list of 3,000 Continue reading

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Plainridge Park hits the one-year mark; Pennsylvania casinos spurn booze tax

Recording its first anniversary with a reported $160 million in revenue, against projections closer to $300 million, is Penn National Gaming‘s Plainridge Park a dud? Not so fast. The casino reports the highest win/slot/day by far of any casino for which Penn Plainridgeshares such numbers. Smokers only had to drive an extra 11 miles to play at nicotine-friendly Twin River Casino, in Rhode Island, which is only 5% off last year’s revenue pace. Ditto table-game players. So those were two constituencies with whom Plainridge was bound to disappoint. However, $130 million of Plainridge’s haul was new revenue. So it grew the market, even if it largely failed to interdict the flow of capital to casinos to the south. Penn spokesman Eric Schippers had to tip his cap to the competition: “This is a highly competitive market where we learned that, despite having the newest product and great customer service, we underestimated the ongoing benefit that table games and indoor smoking continues to provide Twin River.”

A slots-only casino with a reputation for tight holds, Plainridge still managed to accomplish at least half its mission, which was to Continue reading

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Quote of the Day

“[W]e’re going to spend millions now marketing to them, because hey, before you know it, it’s 2030, and we’ve missed our shot. It’s like marketing a car to 6-year-olds so they’ll want to drive it when they’re old enough.” — Frank Legato on the casino industry’s new infatuation with millennials and particularly with e-sports, which has already had its first betting scandal.

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Wynn Boston Harbor a ‘go’; Caesars’ big score

Depending on how peevish Somerville Mayor Joseph Curtatone is feeling, groundbreaking on Wynn Boston Harbor could be a week away. Wynn Resortswynn_night-fullacknowledgement of its latest victory contained just a hint of battle fatigue, saying the rejection of Curtatone’s arguments “hopefully concludes” one of the most protracted construction debates in Massachusetts history. For his part, dese-dem-dose palooka Curtatone is saying maybe he won’t appeal further — but maybe he might. (My money’s on the latter; surely Curtatone hasn’t enjoyed this much press in years.)

For his part, Wynn Boston Harbor President Robert DeSalvio isn’t waiting to find out. “Crews and resources are being readied and mobilized,” he told the Boston Herald. Curtatone could ask the Department of Environmental Protection to reconsider its ruling or even take the whole matter to court — and never mind that Continue reading

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Tomato King gets squashed; California, the wild, wild west of gambling

So much for Lawrence Downs Casino & Racing Resort. In a unanimous vote, the Pennsylvania Gaming Control Board decided to drop-kick the casino project, which had already Joseph-G-Procacci-and-Dr-Walter-Lomax-Jrlost the backing of Penn National Gaming, which has racino interests nearby in Ohio. What seems to have shot down Endeka Entertainment was a lack of financing. It proposed to execute a $500 million-size project on $205 million, a number that shrank to $145 million once licensing fees were subtracted. This is the second major defeat for Joseph “Tomato King” Procacci, the hapless vegetable mogul who tried and failed to get a Philadelphia casino, too. The Lawrence County site also seems to have been hexed, having been through a revolving door of developers, of whom Procacci was the sixth to date. The news comes as Pennsylvania hits a new high in casino revenues — $3.2 billion for the last fiscal year — providing a huge revenue stream to the state … albeit not enough for Continue reading

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Casino lingo that’s getting tired

Why is “Millennials” a more overused term than “skill-based slots”? Read more and find out.

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Straub’s empty bluster; Cantor gets smacked

Some people either put up or shut up. Glenn Straub can’t put up and won’t shut up. His latest brush with the news pages is his welshing on a bet with Bart Blatstein that the latter couldn’t open the Showboat by his self-imposed deadline. When Blatstein won the revel_0494bet and asked for the money so he could give it to charity, Straub claimed there was no bet and he was keeping the 100 dimes for himself. Now he’s scrapping with Blatstein over the latter’s plans to redevelop Garden Pier, which just seems like sour grapes. Blatstein has crossed all the t’s and dotted all the i’s in dealing with Atlantic City bureaucracy. Straub, by contrast, seems illiterate. And, yes, there’s still not even hint of a new reopening date for Revel, let alone the much-ballyhooed new name. Rival casino owners shouldn’t be worried because we don’t think Straub can throw up a serious challenge, even if he ever gets Revel back on its feet. We’ll say this for Donald Trump‘s legacy: Continue reading

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Pinnacle dominates Louisiana; Trump settles Vegas case

Pulled under by the Shreveport/Bossier City market (-6%), June gaming numbers in Louisiana came in 3% off last year’s. Pinnacle Entertainment‘s Boomtown Bossier ($5 million) far sams town shloutperformed the competition, up 11%. Hardest hit were the Caesars Entertainment properties, with usually reliable Horseshoe Bossier City plunging 16% ($14 million) and Louisiana Downs 9% off the pace, at $3 million. Eldorado Shreveport also had an aberrantly bad month, down 8% and grossing $10 million. Except for Sam’s Town (-1%, $6 million, above), all other casinos were essentially flat for June. In fact, Boyd Gaming had a rough month of it across the market. Delta Downs was down indeed (-5.5%, $14 million), Amelia Belle swooned 7% ($4 million, below) and Evangeline Downs was 6% off, to $7 million. Only old reliable, Treasure Chest, had a good month. It grossed $9 million, a 3% gain.

Considering that Pinnacle’s Boomtown New Orleans (-1%, $9 million) wasn’t up for the month, it isn’t necessarily a case of Continue reading

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Quote of the Day

“It is anything but a victimless crime. Just as we have partnered with law enforcement at every level, including the FBI, state attorneys general, sheriffs and chiefs of police, we look forward to supporting efforts of the Ohio Casino Control Commission and Attorney General Mike DeWine, who also has been a leader, in any way we can.” — American Gaming Association Vice President of Government Relations Whit Askew, on gray-market, Internet “sweepstakes cafes.”

Posted in Internet gambling, Law enforcement, Ohio, Texas | 1 Comment