That impersonal touch; Big day for MGM

What is almost completely missing from this commercial? Caesars Entertainment guests are lengthily shown drinking, dining, riding the High Roller (which could use the traffic) and — as a very brief afterthought — gambling. So the company’s definitely on the curve as regards the changing demands of the Las Vegas tourist. The purpose of the spot is to promote the company’s new mechanical-check-in system, currently being field-tested at the Flamingo Las Vegas, Linq and Caesars Palace. Once any kinks are worked out, expect the system to go wide at Caesars’ Strip properties. Continue reading

Posted in California, CityCenter, Detroit, Dubai, Genting, Harrah's, International, LVCVA, MGM Mirage, Mississippi, Penn National, Regulation, Riviera, Taxes, Technology, The Strip, Tourism, Tribal, Wall Street | 1 Comment

Trouble at the Trop; Liberace resurgence in Vegas

After a methodical — or at least slow-moving — investigation, FBI agents dropped the hammer on Tropicana Las Vegas‘ resident illusionist, Jan Rouven. The latter is accused of felony child pornography, having allegedly had myriad violent child-porn trop-picimages and videos (3,235 of the latter) on his computers. Las Vegas Sun columnist John Katsilometes characterized the material in question as “simply disgusting to any civilized individual.” Rouven is being held without bail, having been deemed a flight risk. (A weird fact: Wherever Rouven goes, implosion follows: first the Clarion, then the Riviera.) Penn National Gaming went into temporary damage-control mode, canceling a week’s worth of Rouven’s New Illusions show, then meted out its own brand of justice, cutting all ties with Rouven and effacing his image from Trop signage by Thursday morning, as well as being careful to state that he was “an outside contractor.” Maintaing his client’s innocence, defense attorney Jess Marchese painted the show’s 12 employees Continue reading

Posted in ABBA, Alex Yemenidjian, Economy, Entertainment, history, Law enforcement, Penn National, Riviera, Steve Wynn, The Strip, Wayne F. Newton | Comments Off on Trouble at the Trop; Liberace resurgence in Vegas

Pinnacle/GLPI deal gets OK; Hard Rock courts Cypriots

Shareholders of Pinnacle Entertainment have voted to approve a deal whereby all but one of the company’s physical assets would be sold to real estate investment Pinnacle HQtrust Gaming & Leisure Properties, while Pinnacle would continue to exist as a casino-management company. This may constitute the acid test of the major qualm that surrounds casino REITs: that high rents may discourage reinvestment in the properties themselves, of which Pinnacle’s are some of the best-regarded in the business. (Unite-Here is predicating its opposition to the merger on precisely this fear.) The deal is valued at $4.1 billion. Although the result of the consolidation will be that GLPI will own multiple properties in the same market (including two of three in Baton Rouge), the REIT is in the catbird seat, collecting rent while competing managerial entities like Pinnacle and Penn National Gaming slug it out for market share. The merger has passed muster with Indiana gaming regulators but the Louisiana Gaming Control Board is still pondering it.

* Did you know that MGM Resorts International considered converting a hotel tower at Circus Circus Reno into Continue reading

Posted in Eldorado Resorts, Foxwoods, GLPI, Hard Rock Hotel, Indiana, International, Lawrence Ho, Louisiana, Massachusetts, MGM Mirage, Mohegan Sun, Ohio, Penn National, Philippines, Pinnacle Entertainment, Racinos, Regulation, Reno, Tribal, Unite-Here, Wall Street, West Virginia | 1 Comment

Wynn Everett gets new name, brushes off criticism

Given his recent obstructionism of Wynn Everett, it should come as no surprise that Somerville Mayor Joseph Curtatone recently made it onto a list of “America’s Worst Politicians.” Presently, the Bostonian blowhard has been vowing to block Steve Wynn‘s project for “years and years,” in an extension of his splenetic opposition to casinos in Massachusetts. Curtatone spends $300,000 on media relations for a town of 80,000 residents. The Village Voice described him as “A darling of neoliberals across the Greater Boston region (as well as of the Boston Globe and both local NPR affiliates) … [who] masquerades as a handsome young progressive.” And yet “turn over a rock and discover an elite and privileged cadre of attorneys and real estate slugs who get virtually any permissions they wish for.”

In his most recent blast of hot air, Curtatone disingenuously told Continue reading

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Caesars in hot water

Caesars Entertainment could be on the hook from anywhere between $3.6 billion to $5.1 billion in damages, thanks to a series of transactions that lessened the viability of Caesars-restartssubsidiary Caesars Entertainment Operating Co. That’s the conclusion of court-appointed examiner Richard Davis, who’s spent the past year of his life unraveling the Caesars bankruptcy. (To add insult to injury, Caesars has to foot the bill for Davis’ time.) Posing the question of whether the removal of properties like Harrah’s New Orleans from CEOC precipitated its Chapter 11 filing, Davis provided his own reply: “The simple answer to this question is ‘yes’.” Davis’ 80-page report validates the claims of Appaloosa Management and other junior bondholders, who have accused Caesars of fraudulent conveyances that looted the company. They were pondering a Continue reading

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Adelson sets the pace; Philippine gaming scandal grows legs

As March gets off to a week start in Macao, operators who don’t yet have a presence on the giant landfill known as Cotai — namely Wynn Resorts, MGM Resorts International and Sands-Cotai-CentralSociedade de Jogos de Macauare being encouraged to increase their mass-market orientation. “As business migrates to Cotai with new properties continuing to open, casino operators with peninsula-concentrated product portfolios … may continue to lose market share over the medium and long-term,” wrote Sanford C. Bernstein analysts Vitaly Umansky and Simon Zhang. In the meantime, Sheldon Adelson is cleaning up. “The lion’s share of Sands China’s profit comes from its mass-market casino tables and non-gaming businesses, and the mix continues to shift more in this direction,” wrote Bloomberg Intelligence senior analyst Tim Craighead.

Noting that mass-market gamblers generated 75% of the gambling profit at the tables last quarter, Craighead added, “These segments generated about 80 percent of last year’s [Sands] operating profit. In contrast, the low-margin VIP business accounted for Continue reading

Posted in Law enforcement, Macau, Marketing, Massachusetts, Melco Crown Entertainment, MGM Mirage, Penn National, Philippines, Regulation, Sheldon Adelson, Stanley Ho, Steve Wynn, Wall Street | Comments Off on Adelson sets the pace; Philippine gaming scandal grows legs

Quote of the Day

California’s hypocrisy on gambling policy is appalling. The state arbitrarily condemns california_state_flagand prohibits some forms of gambling, while permitting other forms in Indian casinos and card rooms, and even actively promoting it through the California Lottery. Some may gamble irresponsibly, and a small percentage may become addicted to gambling, but these vices or mental health issues should not constitute crimes … California should simply get off its faux moral high horse and legalize all forms of gambling.” — The Orange County Register, on attempts to legalize Internet poker in the Golden State.

Posted in California, Internet gambling, Regulation, Tribal | Comments Off on Quote of the Day

New Jersey sticks it to Atlantic City; No payday for Suen

Life just got a little more difficult for Atlantic City. Casino owners will have to dig into their pockets in order to defeat a ballot initiative to end their monopoly on casino gambling. The referendum mustered the necessary supermajorities to clear the New Jersey Legislature and, certain to be approved by Gov. Chris Christie (R), now heads for the November ballot, where it faces a still-unconvinced electorate. The other new wrinkle in the story is Continue reading

Posted in Architecture, Atlantic City, Election, Glenn Straub, Macau, Massachusetts, Penn National, Politics, Sheldon Adelson, Tribal | Comments Off on New Jersey sticks it to Atlantic City; No payday for Suen

DFS returns to Nevada; Dustup near the Stratosphere

While DraftKings CEO Jason Robins and FanDuel CEO Nigel Eccles insist that their companies are just too special to apply for a Nevada gaming license, entrepreneurs Vic Salerno and Michael Knapp are effectively calling their bluff. They’re seeking a license for their newly formed US Fantasy. Rather than being run as a sports pool, as Draft Kingsmost DFS sites are, US Fantasy would offer parimutuel-style wagering. “What we did is kind of work within the framework of the existing rules and regulations that were on the books either in Nevada or in California,” remarked Knapp, whose experience spans Internet gambling to California horse tracks. He characterized his product as “a lot easier, more fun, fairer” than conventional DFS … if we can characterize such a novel product as “conventional.” Knapp himself feels that it is in a natal state and will evolve considerably over the next few years.

US Fantasy’s product is designed to be compatible with both casino and online play, and comes with geofencing capabilities that would Continue reading

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Atlantic City has a big month

Reports of Atlantic City‘s demise have been greatly exaggerated. The city’s casinos posted a 13% revenue increase (over an admittedly weak February 2015) and Internet Resorts ACgambling revenue was up 42%, to $15 million. In the latter department, Borgata (29% of market share and $4 million in revenue) is pulling away from the pack, although we’ll see what happens when laggard Resorts Atlantic City (9%) finally deploys its PokerStars platform this month.

As for terrestrial play, slot revenue rose 9% (to $130 million) on 8% higher coin-in, while table win ($57 million) shot up 23%, despite 7% less money wagered. Much of that increase was driven by Borgata, where table win was 68% (!) higher, on Continue reading

Posted in Atlantic City, Boyd Gaming, Harrah's, Internet gambling, MGM Mirage, Mohegan Sun, Tilman Fertitta, Tropicana Entertainment | Comments Off on Atlantic City has a big month

Doldrums in Louisiana; Free play imperiled in Pennsylvania

Louisiana gaming revenues, aided by Leap Day, were flat last month, which is pretty surprising because most of the brand names had revenue-negative months. Lake Charles GoldenNugget Lake Charlesled the state with $74 million. Golden Nugget had a signal month, up 37% for a $19 million gross. Despite a 2% decline, L’Auberge du Lac continued to dominate the market — and lead the state — with $27 million, while Boyd Gaming‘s Delta Downs receded 4% to $16 million. Isle Grand Palais was flat, with a $12 million gross. Boyd’s outlying properties also fared poorly, with Amelia Belle ($4 million) down 8% and Evangeline Downs retreating 9% ($9 million gross). Despite a 5% decline, L’Auberge Baton Rouge keeps crushing the competition, grossing $14 million. Gaming & Leisure PropertiesHollywood Baton Rouge was a distant second, with $6 million (-9.5%), while Tropicana Entertainment‘s Belle of Baton Rouge slipped 4%, to $5 million.

It’s virtually impossible to tell whether the New Orleans smoking is actually hurting Harrah’s New Orleans or Continue reading

Posted in Boyd Gaming, Churchill Downs, Eldorado Resorts, Election, GLPI, Greenwood Racing, Harrah's, Horseracing, Idaho, Isle of Capri, Louisiana, Maine, Penn National, Pennsylvania, Pinnacle Entertainment, Taxes, Tilman Fertitta, Tropicana Entertainment, West Virginia | Comments Off on Doldrums in Louisiana; Free play imperiled in Pennsylvania

Virginia is for lovers … of DFS

Score a “win” for daily fantasy sports, as it was legitimized in Virginia. Gov. Terry McAuliffe (D) applied his signature to the Fantasy Contests Act, which places DFS under the auspices of the state’s  Department of Agriculture & Consumer Service, McAuliffeeffective July 1. DFS sites will have to submit to twice-yearly audits and pay a $50,000 operation fee to the state. In a provision echoing one in Massachusetts, employees would be prohibited from playing on rival sites. Unlike many other states, the age of eligibility to play would be set at 18, not 21. There’s some concern, however, that the licensing fee is going to make Virginia the province of big DFS companies like FanDuel and DraftKings. The latter was appropriately grateful for the legislation, issuing a statement that read, in part, “We thank Governor McAuliffe for his leadership and advocacy and are hopeful that other states across the country will follow Virginia’s lead.”

Meanwhile, sports book giant William Hill US is clashing with the big DFS operators, saying their contention that DFS isn’t sports betting is “ridiculous.” CEO Joe Asher noted that, unlike Continue reading

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High-stakes headbutting in Hartford; Pennsylvania grapples with slot routes

All the key players in Connecticut finally butted heads in a showdown in Hartford yesterday. In one corner, you had the casino-ineligible Schaghticoke Tribal Nation. Seal-of-ConnecticutBehind it was its patron, MGM Resorts International, which has a $950 million investment in Springfield, Massachusetts, it wants to protect. It also thinks that if a third casino in built in Connecticut, somebody — MGM? — should do it in the other part of the state. In the other corner was MMTC, the Mohegan Sun/Foxwoods Resort Casino joint venture that is trying to develop a casino in the greater Hartford area and stem the flow of gambling dollars to Springfield.

In yet a third corner was Norwalk Rep. Chris Perone (D), who wants to throw a monkey wrench into the works by commissioning “a comprehensive study of gambling in Connecticut” to determine where a third casino would go best. (If want to slow things down, call for a comprehensive study.) Mashantucket Pequot Chairman Rodney Butler didn’t even wait for the legislative hearing to throw the first punch. “We know that we are going to lose Continue reading

Posted in Economy, Florida, Foxwoods, Massachusetts, MGM Mirage, Mohegan Sun, Pennsylvania, Politics, Problem gambling, Seminole Tribe, Slot routes, Taxes, Tribal | Comments Off on High-stakes headbutting in Hartford; Pennsylvania grapples with slot routes

Hang up for MGM National Harbor; Dances with insolvency

If a July opening of MGM National Harbor, in Maryland, sounded too good to be true, it was. The company says “things got more and more real” and the Washington Post reports that MGM executives told it the target “was unrealistic given the magnitude of the MGM National Harborproject.” When National Harbor was initially approved by the Maryland Video Lottery Facility Location Commission, it was contingent upon opening no later than this August, although the company has an option — which it plans to exercise — for a six-month extension. Either the lottery commission or MGM didn’t read the fine print on the project proposal, which specified a 30-month timeline for construction. MGM didn’t break ground until May 2014, meaning it went forward knowing Continue reading

Posted in California, Internet gambling, Law enforcement, Maryland, MGM Mirage, Movies, New York, Philippines, Regulation, South Dakota, Tribal, Tropicana Entertainment | Comments Off on Hang up for MGM National Harbor; Dances with insolvency

Wynn, Sands, Penn meet the Street

JP Morgan analyst Joseph Greff has had a busy week, meeting with most of the top companies in gaming. First up was Penn National Gaming, which had little new to TROPICANA VIEW 1B_LO 042010report on the Tropicana Las Vegas other than it was looking for “some synergies” with M Resort. (Could that be code for resort fees, which M doesn’t charge?) Although popular perception of the national economy is that it’s poor, Penn says its casinos “continue to benefit from low gas prices and see some level of wage growth. In February, [it] saw increased spend/visit and visitation up beyond any impact from leap year.” Biloxi, for some reason, “remains difficult,” but it’s a small piece of the larger Penn picture.

With so much of its Massachusetts competition hamstrung by construction delays, Penn was bullish on Plainridge Park, where it expects to see Continue reading

Posted in Economy, GLPI, Illinois, M Resort, Macau, Marketing, Massachusetts, Mississippi, Penn National, Sheldon Adelson, Singapore, Slot routes, Steve Wynn, The Strip, Wall Street | Comments Off on Wynn, Sands, Penn meet the Street

There’s no source like home

“[D]espite Las Vegas‘ reputation for harsh heat, The Park will offer a cooler and more comfortable atmosphere thanks to plenty of shade and the use of materials like meta-quartzite. Because of its porous physiology, meta-quartzite absorbs and dissipates heat, making it cooling to the touch – an ideal stone for constructing outdoor spaces in hot climates.”

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Rosy prospects for Boyd; Victories in Indian Country

Top Boyd Gaming executives sat down with JP Morgan analyst Joseph Greff and sketched out their program for the coming year, with includes new restaurant concepts at boyd-gaming-20012 casinos (including 20 new restaurants this year) and 167 hotel rooms at Delta Downs. The company sees its balance of gaming/non-gaming revenue tipping from 80/20 to 75/25 but does not think this will be a problem, food and beverage having often been a loss leader in the past. The new “offensive” is to bring non-gaming amenities to the forefront and make them more appealing to younger customers. This capital campaign is expected to cost the company $100 million.

While Las Vegas has lagged the economic recovery seen in Boyd’s various territories, the company’s regional properties are benefiting from higher employment, higher wages and lower gas prices. The only exception to this roseate picture is Continue reading

Posted in Architecture, Atlantic City, Boyd Gaming, Election, history, Illinois, International, Law enforcement, Louisiana, Massachusetts, Melco Crown Entertainment, MGM Mirage, Nevada, Philippines, Taxes, Tribal, Wall Street | 1 Comment

Quote of the Day

trump lv_1857289_20_b“We have no problem getting a gaming license, but we wanted to do something different here. We wanted a true luxury resort experience. It’s hard to have a high-quality product when you walk into ‘ding, ding, ding’ and there are people walking around in Hawaiian shirts with big plastic drink mugs.” — Eric Trump, on the business model of Trump International hotel, which has managed to recoup its fortunes after stumbling out of the gate.

Posted in Donald Trump, The Strip | Comments Off on Quote of the Day

Missouri: No misery here; Trouble at Trump

Foot traffic in Missouri casinos was up 3%, as customers spent 4% more than last year, leading to an 8% increase in casino revenue. Both Pinnacle Entertainment and Penn River City-0-1National Gaming came in comfortably above Deutsche Bank analyst Carlo Santarelli‘s projections for the month. Pinnacle’s River City grossed $19 million (+12%), while its Ameristar St. Charles property hauled in $22 million (+2%). To the west, Ameristar Kansas City grossed $17 million (+9%). Penn brought in $19 million (+5%) at Hollywood Casino St. Louis and, in Kansas City, $13 million from Argosy Riverside for a 15% gain.

It was a good month for everybody in the Show-Me State, with not one casino posting a revenue-negative month. The Isle of Capri Casinos quartet fared well, including a 4% uptick (to $7 million) in Continue reading

Posted in Culinary Union, Donald Trump, Harrah's, Isle of Capri, Missouri, Penn National, Pinnacle Entertainment, Taxes, The Strip, Tropicana Entertainment, Trump Entertainment Resorts, Wall Street | Comments Off on Missouri: No misery here; Trouble at Trump

Galaxy thinks big; Hoping against hope in Illinois

Feeling the pressure to diversify the market appeal of his casino resorts, Galaxy Entertainment CEO Lui Che-Woo is talking vaguely about a theme park, “something special and high-tech,” similar to the movie Avatar. Note that James Cameron isn’t

Galaxy Macauexplicitly involved in this (as he was in a rejected Caesars Entertainment proposal for Singapore), so Che-Woo may merely be throwing ideas against the wall to see what sticks. Whatever the case, this cutting-edge amusement park would be part of the $11 billion buildout of Galaxy Macau, a two-phase project with an unspecified timeline … which is probably a good thing, considering all the uncertainty surrounding Macao. Galaxy would also build non-gaming attractions, like a water park, on adjacent Hengqin Island.

“Theme parks are a great idea and Macao is desperate for more non-gaming attractions. These investments are in line with government demands so this will further Continue reading

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