110 in the shade

Posted on February 16, 2016 by David McKee

Who needs trees in MGM Resorts International‘s The Park when you can have 75-foot-tall “shade structures,” which will look particularly spectacular after dark? It’s another only-in-Vegas innovation and you have to give MGM kudos for thinking outside of the forest on this one, the product of 3,200 hours of labor by Dutch firm IHC Studio Metalix. which is normally in the shipbuilding business.

Posted in Architecture, Environment, MGM Mirage, The Strip | Comments Off on 110 in the shade

Winning quarter for Wynn

Posted on February 15, 2016 by David McKee

In the current era of managed expectations of all things related to Macao, the 4Q15 report from Wynn Resorts fell into the “better than anticipated” category, with earnings down ‘only’ 17% (superior to Wall Steve-Wynn-Chairman-of-the-Board-and-CEO-of-Wynn-Resorts-Limited-e1395978569748-1023x1023Street consensus) and profits just over $1/share (ditto). Those results — and some sanguine commentary by CEO Steve Wynn — prompted a runup in the stock as well as that over similarly Macao-centric Las Vegas Sands. Compared to Las Vegas ($127 million), return on investment in Macao ($160 million) is relatively anemic, reflective of a 27% decline in Macanese casino win. “Still, that was the smallest quarterly decline of 2015, leaving some analysts to suggest the market may be bottoming out,” reported Bloomberg.

As for the earnings call, Deutsche Bank‘s Carlo Santarelli reports that “commentary was guarded, but certainly more constructive than the 3Q15 session,” when Wynn went thermonuclear on Continue reading →

Posted in Economy, Florida, Georgia, Law enforcement, Macau, Melco Crown Entertainment, Nevada, Penn National, Pennsylvania, Regulation, Reno, Seminole Tribe, Sheldon Adelson, Steve Wynn, Texas, The Strip, Wall Street | Comments Off on Winning quarter for Wynn

Quote of the Day

Posted on February 15, 2016 by David McKee

“We need a product that converts the new generation to poker. If you had a choice between BlizzCon or a Las Vegas casino, you’re going to BlizzCon. The status quo must change.” — entrepreneur Alexandre Dreyfus, on his brainchild, the Global Poker League. The latest attempt to make a spectator sport of poker, it aims to pit teams of three against one another in timed, fast-paced play in an arena setting.

Posted in Technology | Comments Off on Quote of the Day

Cruel blow to Atlantic City; Sex in the Vegas sky

Posted on February 15, 2016 by David McKee

Winter storm Jonas, which put paid to the Jan. 22-24 weekend, dealt a heavy blow to Atlantic City gaming revenues, which had finally appeared to have stabilized. The market was down 6% and Borgata Borgata($52 million) suffered an uncharacteristic 9% falloff. Slot revenue slipped 2% on flat coin-in and table revenues dropped 13% on 3% less wagered (an unlucky month for the house). Borgata slots were up 4.5% on 8% more coin-in but table games plummeted 32%, on 7% less play.

Despite all the adversity in the marketplace, four casinos managed revenue-positive months, including Continue reading →

Posted in Atlantic City, Boyd Gaming, Environment, Harrah's, MGM Mirage, Mohegan Sun, The Strip, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Cruel blow to Atlantic City; Sex in the Vegas sky

It’s a new day at the Cosmo; Atlantic City’s fate in Borgata’s hands

Posted on February 8, 2016 by David McKee

“The bottom line is you have a casino. Instead of downplaying that, let’s celebrate it.” That’s Cosmopolitan of Las Vegas CEO Bill McBeath outlining the besetting sin of his predecessors, ignoring the central role Cosmo askewof gambling as the Cosmo’s revenue driver. His changes ran the gamut from moving the sports book to welcoming higher-limit play, $200,000 a hand, with $5 million lines of credit and bigger slot jackpots, ending risk-averse Deutsche Bank policies. The Cosmo isn’t out of the woods yet, lacking a hotel-loyalty affiliation while trying to compete in the $300/night tier among other problems, the big difference between the Cosmo’s Deutsche Bank era and the new Blackstone Group is that the latter is actually turning a profit.

Investment banker William Newby describes the Cosmo’s original, back-asswards market positioning thusly: “The joke was you’d go there later at night, you’d notice the Continue reading →

Posted in Atlantic City, Boyd Gaming, Cosmopolitan, Entertainment, Illinois, Marketing, MGM Mirage, Regulation, Slot routes, Taxes, The Strip, Wall Street | Comments Off on It’s a new day at the Cosmo; Atlantic City’s fate in Borgata’s hands

DFS: Trouble in paradise; It’s not good to be Dan Gilbert

Posted on February 8, 2016 by David McKee

Besieged on all sides, daily fantasy sports operators find themselves in retreat. DraftKings said it “will voluntarily pause” its operations in Hawaii in response to a ruling by state Attorney General Doug Chin Kaneshirothat DFS is gambling and therefore illegal in the 50th state. That prompted prosecutor Keith Kaneshiro (right) to issue cease-and-desist orders to DraftKings and FanDuel. The alternative is to face prosecution for promoting gambling, a Class C felony.

The Hawaiian trouble comes at the same time that DFS is being chased out Continue reading →

Posted in Eldorado Resorts, Florida, Hard Rock International, Harrah's, Hawaii, Indiana, Internet gambling, Mississippi, Ohio, Penn National, Pinnacle Entertainment, Politics, Racinos, Regulation | Comments Off on DFS: Trouble in paradise; It’s not good to be Dan Gilbert

Taunted in Taunton; Sands’ Chinese generosity

Posted on February 8, 2016 by David McKee

It was bound to happen and finally did: An activist group in Taunton has filed suit to stop the Mashpee Wampanoag tribe from building its dreamt-of casino, Project First Light. The litigants’ argument is as Neil Bluhmpredictable as the filing itself. Namely, that the Carcieri v. Salazar decision prevents the Mashpee Wamps from being given reservation acreage in Taunton because the tribe was not under federal recognition in 1934, the cutoff date established in Carcieri and the time of passage of the Indian Reorganization Act.

The tribe’s opponents contend that the Department of Interior took an overly liberal attitude in how it construed “Indian” with regard to the Mashpee, “falsely proclaiming ambiguity where none exists.” Being unable to get a “Carcieri fix” through Congress, they add, Interior Department bureaucrats decided to Continue reading →

Posted in Macau, Massachusetts, Neil Bluhm, Regulation, Sheldon Adelson, Tribal | Comments Off on Taunted in Taunton; Sands’ Chinese generosity

Illinois beats the odds; MGM goes au naturel

Posted on February 8, 2016 by David McKee

Well, here’s a novel piece of news out of Illinois, where it always seems that gloom and doom hold sway. Gaming revenues were up 2% last month. That’s even more impressive when you consider that it’s being Metropolismeasured against a January 2015 that saw an 8.5% boost in casino winnings. Deutsche Bank analyst Carlo Santarelli reports that foot traffic was down 2% but player spending rose 4.5%. The worst blotch on the ledger was Argosy Belle, down 25% on a $4 million gross. It was a rough month along the Mississippi River, with Harrah’s Metropolis (above) reporting a 9.5% decline ($6.5 million).

Smaller declines were seen at Boyd Gaming‘s Par A Dice (-4%, $7 million) and Penn National Gaming‘s Hollywood Aurora (-2%, $10 million). Otherwise it was all Continue reading →

Posted in Boyd Gaming, Culinary Union, Entertainment, Environment, GLPI, Harrah's, Illinois, MGM Mirage, Neil Bluhm, Nevada, Penn National, Technology, The Strip, Transportation, Wall Street | Comments Off on Illinois beats the odds; MGM goes au naturel

Major policy change strikes Philippines entrepreneurs

Posted on February 4, 2016 by David McKee

Just when Melco Crown Entertainment and other operators have gone heavily into the Manila market, they stand to take a hit from a Tiger-Resort-Okada-Manila-Bay-Resorts_01-e1402018244904potential Philippine Amusement & Gaming policy change that would end the Pagor’s monopoly on casino gambling outside Manila. Pagcor Chairman Cristino Naguiat said that there are (unspecified) areas in the archipelago that are “very ripe for a casino.” The criteria for entry would include a minimum $300 million investment. “We’re developing a template to ensure that no one would be granted a license unless an investment commitment is made,” Naguiat added.

A bigger loser than Melco could be Kazuo Okada, who has committed $2 billion to Continue reading →

Posted in Environment, Kazuo Okada, Melco Crown Entertainment, Mohegan Sun, Pennsylvania, Philippines, Technology | Comments Off on Major policy change strikes Philippines entrepreneurs

Delaware racinos seek relief; Abrupt change at Downtown Grand

Posted on February 4, 2016 by David McKee

If a casino is losing money, does that qualify it for state relief? That’s the philosophical question in Delaware, where Dover Downs is pursuing a public bailout. A bill by state Sen. Brian Bushweller (D) would waive Delaware_State_Capitoltable-game franchise fees and reduce the casino tax rate from 29% to 15%, making it one of the lower imposts on the East Coast. The changes would be phased in between now and 2018. Dover Downs President Brian McGlynn predicts Delaware “will experience a significant long-term decline in contributions to the General Fund from its video lottery operations” without lower taxation.

Other changes would include extending the state’s sports betting to the Internet, as well as tax credits for Continue reading →

Posted in Delaware, Downtown, Harrah's, Politics, Racinos, Taxes, Tribal | Comments Off on Delaware racinos seek relief; Abrupt change at Downtown Grand

Penn: Glass nearly full

Posted on February 4, 2016 by David McKee

Prior to its conference call with analysts, Penn National Gaming shared some earnings guidance and hints of what is to come. Perceptions of the performance of Plainridge Park Casino have become something of a sore Penn logopoint with Penn execs. While it continues to undershoot Wall Street‘s expectations, the glass is more than half-full when one considers that Plainridge has the highest win/slot/day numbers of any Penn property. However, management continues to fine-tune promotions and marketing, the better to compete with Twin River Casino, which has proven a formidable adversary. It’s concentrating on Marquee Rewards signups, which have reached 160,000 in Massachusetts. Penn is also writing off the costs of its Plainridge license and that of its Hollywood Dayton racino, which JP Morgan analyst Joseph Greff called “not so large in the grand scheme of things.”

As for the big question mark in Penn’s portfolio, the Tropicana Las Vegas, the focus is on Continue reading →

Posted in Arizona, Dining, Marketing, Massachusetts, Ohio, Penn National, Racinos, Steve Wynn, The Strip, Wall Street | Comments Off on Penn: Glass nearly full

New York deals itself in on i-poker

Posted on February 3, 2016 by David McKee

A bill to legalize Internet poker in New York State advanced unanimously out of the state Senate Committee on Racing, Gaming & Wagering. That’s the easy part. It now goes to the Finance Committee, where tougher Continue reading →

Posted in Internet gambling, New York, Pennsylvania, Politics | Comments Off on New York deals itself in on i-poker

MGM’s brass balls; Seminoles dream big

Posted on February 3, 2016 by David McKee

Las Vegans are still in an uproar over MGM Resorts International‘s new pay-for-parking policy. And yet MGM had the gall to issue a press City Center duskrelease calling the added fees part of a “strategy to provide significant improvements.” Yes, because paying more for the same product is always an improvement. MGM was even so nervy as to call the $10 self-parking and $17 valet-parking charges “modest.” Executives at MGM need to get out of their biosphere and breathe some fresh air. Seventeen bucks is real money to you and me.

The meat of MGM’s announcement was that it was offloading the bulk of its parking-attendant staff to service provider SP+. Parking employees are promised continuation of the same salaries and benefits they enjoyed under MGM. The exceptions to the new policy are Continue reading →

Posted in Architecture, Florida, MGM Mirage, Seminole Tribe, The Strip, Transportation, Tribal | Comments Off on MGM’s brass balls; Seminoles dream big

Case Bets

Posted on February 2, 2016 by David McKee

Sheldon Adelson once called it “a mistake” but Sands Bethlehem is proving to be a bright spot on the Las Vegas Sands balance sheet. Last Sands Bethworksyear, its profitability rose 9%, adding $108 million to Adelson’s coffers. As the CEO would be quick to point out, the company isn’t exactly collecting chump change from Macao, where casino revenues were $6.7 billion even after a net revenue drop of 28%. What’s more, not even all-time-high room rates at Sands Bethlehem did nothing to discourage overnight visits, with the hotel running at 91.5% occupancy.

* From Pocahontas to slot machines. The could be the trajectory of Virginia‘s Pamunkey Indian nation, which staved off a challenge to its recognition by the Interior Board of Indian Appeals. The tribe was pleasantly surprised by how quickly litigation against it by Stand Up for California was struck down. The Pamunkey are Continue reading →

Posted in Election, Macau, Maine, Maryland, MGM Mirage, Pennsylvania, Sheldon Adelson, Tribal | Comments Off on Case Bets

Quote of the Day

Posted on February 2, 2016 by David McKee

“We didn’t kick anybody out. All we said is play by the rules. This board has been progressive toward innovation.” — Nevada Gaming Control Board Chairman A.G. Burnett on the state’s stance toward daily fantasy sports.

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

Atlantic City omnibus

Posted on February 2, 2016 by David McKee

If Carl Icahn has his way, executives at Trump Taj Mahal may have to start updating their resumes. Tropicana Atlantic City President Icahn 2Anthony Rodio is expected to add the Taj to his portfolio as well. It’s well past time that inept Trump Entertainment Resorts managers were sent packing and the advent of Rodio would actually inspire hope for a turnaround at the Taj, similar to what he has achieved at the Trop.

In addition, many more details have emerged on the Trop’s $25 million renovation. These include “spa-inspired bathrooms with large walk-in showers and modern artwork in the rooms.” Meanwhile, Borgata‘s planned “Roman-style pool” will cannibalize space formerly occupied by an al fresco concert stage. “The occasional concerts simply did not Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Economy, Macau, MGM Mirage, Politics, The Strip, Tropicana Entertainment, Trump Entertainment Resorts, Wall Street | Comments Off on Atlantic City omnibus

Quote of the Day

Posted on February 1, 2016 by David McKee

Trump in LV“[Donald] Trump insists that he’s a conservative, but in his pronouncements and policies, conservatism seems more of a rental — a three-story penthouse rental with Central Park view, to be sure — than an ideological home.” — Charles Krauthammer, on the conversion of conservatism into ‘Trumpism.’

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

Big government wins in Atlantic City; Sheldon’s money grab

Posted on February 1, 2016 by David McKee

“From the looks on your faces, you don’t like ‘Kumbaya’ moments. I’m sorry for that. It’s time for some tough decisions and some pain as we Guardianmove forward.” So said Atlantic City Mayor Don Guardian (R) as he acceded to a state takeover that will effectively render him the puppet monarch of the Boardwalk. Although the length of the new regime has been curbed from 15 years to five, the state is still granted sweeping powers. One that unions are certain to hate is the ability to dissolve collective bargaining agreements … along with municipal departments and such, and to consolidate public services. It also gives state Sen. Stephen Sweeney (D) his much-coveted right to sell off Atlantic City’s water authority, seen as a giveaway to New Jersey American Water Co. (Its magnate, George Norcross, is a Sweeney crony.)

City-owned land and other assets are up for grabs, and Atlantic City’s debt will be restructured. The unilateral state power to Continue reading →

Posted in Atlantic City, Economy, Glenn Straub, Harrah's, LVCVA, Macau, Politics, Revel, Sheldon Adelson | Comments Off on Big government wins in Atlantic City; Sheldon’s money grab

Gulfport: Not so fast; DFS winning in Florida

Posted on January 29, 2016 by David McKee

In one day, attorney Robert Lubin‘s plan for a new Gulfport, Mississippi, casino went from being the next big thing to “Yes, but …” Lubin, whose speciality is EB-5 visa financing, envisions a two-pronged Hewesproject: a $140 million casino plus a $30 rehabilitation of the abandoned Markham Hotel for either residential or office use. The initiative would fulfill Gulfport’s long-unsatisfied desire for a casino in its harbor district (site of a failed Donald Trump initiative in the wayback). A rain-drenched Lubin jetted into Gulfport just in time to testify in favor of his 10-acre, 300-room casino project. Enthused Mayor Billy Hewes (right), “This is a great day for Gulfport and the Coast.”

However, in the cold light of day, complications with Lubin’s plan emerged. Not only do Lubin and partner Kevin Preston still have to raise the money, they have to satisfy Continue reading →

Posted in Entertainment, Florida, Internet gambling, Mississippi, Oklahoma, Regulation, Seminole Tribe, Tribal | Comments Off on Gulfport: Not so fast; DFS winning in Florida

Strip’s illusory Christmas present; A.C. Trop antes up

Posted on January 29, 2016 by David McKee

Las Vegas Strip gaming revenues were up 8% last month but Deutsche Bank analyst Carlo Santarelli is calling that headline “misleading,” the increase “purely optical.” Volume of table play was MIragedown 11% and slot coin-in was 2% less. But increased hold, rule changes and luck conspired in the casinos’ favor. By contrast, a 4% increase in slot play in the Las Vegas locals market couldn’t stave off a 5% revenue slippage. The state of Nevada as a whole was up 3%. Strip slot revenue rose 7% and baccarat winnings shot up 20% despite 11% less volume of play. Other table revenues were flat on 11% less in wagers.

Both the Boulder Strip and Laughlin had a bad time of it, down 15% and 14% respectively. North Las Vegas was off 7% but Downtown eked out a Continue reading →

Posted in Atlantic City, Boulder Strip, Boyd Gaming, Downtown, Economy, Greenwood Racing, Harrah's, Internet gambling, Lake Tahoe, Laughlin, Macau, MGM Mirage, Mohegan Sun, Neil Bluhm, Nevada, North Las Vegas, Penn National, Pennsylvania, Reno, Sheldon Adelson, Technology, The Strip, Tropicana Entertainment, Wall Street | Comments Off on Strip’s illusory Christmas present; A.C. Trop antes up