It’s official: Red Rock Resorts has purchased The Palms for $312.5 million. It got a bargain when one considers the inventory that comes with the deal — the Palms Place 
condo tower, 710 hotel rooms, 85 of the most famous suites in Las Vegas, 1,250 slot machines and 48 table games, plus a spacious race and sports book. Its mix of tourist and locals clientele is consonant with the business model Station has been pursuing at Green Valley Ranch and Red Rock Resort. The fate of the Palms’ employees is up in the air but, since they’re not unionized, I’d be surprised if Station didn’t keep them in place. (The noisiest objections to ratification of the deal are certain to come from the Culinary Union, though.) Station paid almost 9X cash flow for the Palms, a reasonable multiple when its proximity to the Las Vegas Strip is considered. Besides, the overall purchase is only slightly more than half of what it cost ($600 million) to build the Fantasy Tower alone. Station expects an 11% return on investment in the first year of operation, which is pretty good for the Strip market.
* Las Vegas Sands got a rap on the knuckles from Continue reading
positive months, led by Caesars 7.5% gain. It even had a good month at ThistleDown Racino, up 9% on an $11 million gross. Horseshoe Cleveland rose 5% ($19 million) and Horseshoe Cincinnati gained 10% ($17.5 million). How interesting that the Caesars-run properties are showing such good results just as owner Dan Gilbert has Caesars halfway out the door. Pinnacle’s Belterra Park ($7 million) was booming compared to last year, up 28% and generating $180/slot/day in VLT play — a huge improvement.
Lionel Leong said 
little island in the middle of the lagoon has swelled into an eight- to 10-story mountain with two summits connected by a rope bridge. The fast-growing island will also sprout “cabanas and other special effects platforms … [a] beach bar with white sand,” plus zip lines. Evidently, Wynn had second thoughts about his 
5%. The percentage champion was Tropicana Evansville, up 17% on an $11 million gross. Other casinos enjoying notably good fortune were Full House Resorts‘ Rising Sun ($4 million), ascending 16%, French Lick Resort ($7 million), up 12%, and Indiana Downs ($23 million), prospering 10%. The only casino to outgross Indiana Downs was Horseshoe Hammond ($37 million), up 1%. Although there were no dramatic fluctuations at the other casinos, all did well except for Majestic Star II ($6 million), incrementally down, and Belterra ($9 million), minus 4%.
million. JP Morgan analyst Joseph Greff credited much of the success to 8% greater room revenues on the Strip, led by — believe it or not — Circus Circus, up 17%. Detroit and Mississippi “contributed to the upside as well,” while MGM’s relatively small presence in Macao shielded the company from adverse consequences, even with VIP winnings down 41%. To put that in context, MGM derived $409 million of its cash flow from the Strip, only $114 million from Macao. “We are also encouraged by recent asset sales to reduce its balance sheet leverage,” referring to MGM’s enormous debt overhang and its selloff of non-core assets, climaxing in a $1.1 billion disposal of the Crystals mall. The company will also reinvest $425 million maintenance this year.
around Carcieri v. Salazar. But the prevailed time and again, and now are poised to build a Class III casino, having already compacted with Massachusetts, which stands to collect 17% of gross gaming revenues if the Massachusetts Gaming Commission rubber-stamps what is now a fait accompli. The MGC could argue that Region C is saturated with gambling and not issue a license, but that’s just taking bread off the state’s plate and I don’t see gaming commissioners doing that. Besides, it’s not like the Mashpee Wampanoag haven’t 
(in)validity of petitions filed by Scott and his sister Lisa, who was bankrolling the referendum drive. Shawn Scott had craftily worded the petitions so that only he would qualify for a casino under the wording of the referendum, but his petition-gathering drive was not so careful about dotting its i’s and crossing its its it’s. Anyway, the fall election can proceed without any Scott-related hanky-panky. In other Maine news, Churchill Downs 
this is such a close call, I for one may have come down a different way, but I don’t think this is the kind of casino Massachusetts envisions,” said Chairman Stephen Crosby. Fellow commissioner Bruce Stebbins went further, saying, “I don’t want to make an award of a license to an application that in my estimation is just not up to the level of excellence I would expect.”
would legalize online poker in the Golden State. A provision that would skim off $57 million to $60 million (accounts vary) in revenue to subsidize the horseracing industry doubtless contributed to the 18-0 legislative landslide. Although the Internet poker market in the state is generously estimated at $400 million, it also thought that no more than 10 operators, tops, could be viable in it.
American casino operators in China are now glad that the Nevada Gaming Commission wouldn’t allow them to issue credit over there, leaving the problem in the laps of the junket operators. Add “stale” debt to the so-called “healthy” bad debt and the hole gets even deeper. Part of the problem is simple: With less VIP play taking place, the volatility of that segment becomes considerably greater. Gross high-roller revenue from baccarat fell 40% last year.
blamed but stock analysts should have seen that coming. (A 
IPO is rather more base than enlarging the company. The already wealthy Fertitta Brothers stand to make out like bandits. As the Las Vegas Sun 
toward the lower end of Wall Street had predicted for the deal and means the Boyd is getting Cannery at an industry-standard multiple of 7X EBITDA (as opposed to the crazy 13X cash flow it paid for Aliante Casino). That takes some of the sting out of the problem Boyd will facing when it starts competing with itself on the Boulder Strip. There, Sam’s Town and Eastside Cannery are only a (long) block apart, separated by a KOA campground. At least the original Cannery (shown) is seven miles from Aliante, ameliorating any North Las Vegas cannibalization. “We view the transaction favorably,” wrote Deutsche Bank analyst Carlo Santarelli, as well he might, given the Boyd had picked up two casinos for $115 million each, a bargain in today’s market.
DeNunzio, Anthony Gattineri and Charles Lightbody attempted to defraud Wynn Resorts by concealing convicted felon Lightbody’s ownership role in the 35 acres Wynn acquired from them. While the three men are all in danger of spending the next 20 years in prison, Wynn Resorts faces the PR blotch of appearing to have been, at best, willfully ignorant of who owned the land it was buying. Wynn go-between Daniel Gaquin is alleged not to have asked who the owners were. Worse still, Wynn’s Matthew Maddox and General Counsel Kim Sinatra were said to have been informed of Lightbody’s involvement and showed no concern.
camps.” However, he’s found one idea that he’s not only sticking to but has already begun putting into motion: the installation of a ropes course in the former valet-parking area. Later, sand will be trucked in to create a Nikki Beach-like lounging space. The vehicular entrance to Revel will become subterranean. What Straub may not be able to pull off, at least not yet, is reopening the megaresort’s restaurants. He needs to have an operational casino to get a liquor license,