Wynn, Walsh make peace; Borgata ups the ante

Posted on January 28, 2016 by David McKee

In the end, it was all about the money. In return for an extra $400,000 per year for the next 15 years, plus reimbursement of $750,000 in legal walshfees, Boston Mayor Martin Walsh dropped his efforts to block Wynn Everett. “We fought the good fight, but at the end of the day, the judge dismissed our lawsuit,” Walsh said, bowing to the will of the courts. He also tried to palliate casino adversaries in the Charlestown area by pointing out that they’d benefit from traffic improvements in Sullivan Square and Wynn-funded spending on civic programs.

An additional win for Wynn was the abandonment of a potential fine of $20 million if casino-area traffic exceeds a prescribed level. Under the new regimen, Wynn Resorts will have to Continue reading →

Posted in Architecture, Atlantic City, Boyd Gaming, Lucky Dragon, Massachusetts, MGM Mirage, Station Casinos, Steve Wynn, Taxes, The Strip, Wall Street | Comments Off on Wynn, Walsh make peace; Borgata ups the ante

Quote of the Day

Posted on January 28, 2016 by David McKee

mgm-pic“The Las Vegas Strip is a uniquely American landmark, an amalgamation of public square and private space, famous around the world for projecting bounty to all comers. [MGM Resorts International] has for decades benefited from being part of that, but now it has violated the public trust. It might propose strip-mining the Grand Canyon next.” — Las Vegas journalist C. Moon Reed, going nuclear on MGM’s pay-for-parking initiative.

Posted in MGM Mirage, The Strip, Tourism, Transportation | Comments Off on Quote of the Day

Meet the candidates; Even when Adelson loses, he wins

Posted on January 28, 2016 by David McKee

One of the many first-ever things that Geoff Freeman has done to remake the American Gaming Association in his image is compile a voting guide As Deadline On Debt Reduction Impasse Looms, Super Committee Meets Over Weekendfor industry workers, walking them through the primary and caucus processes in their states, and providing a rundown on where the candidates stand on gaming. Fortunately, gaming policy is largely an intrastate game of political football in which Washington, D.C., cannot intervene. However, tribal casinos and Internet gambling are very much at the mercy of whoever is in power in Foggy Bottom. For instance, federal attitudes towards tribal gaming have been far more expansive during the Obama administration than they were under Bush II, including the scrapping of a proposed rollback of Class II gaming — so tribes like the Mashpee Wampanaog and Tohono O’odham know where to send their ‘thank-you’ notes.

But I digress. You can read the AGA report here, so I’ll just note some of the highlights. Candidates’ attitudes towards casinos range from Continue reading →

Posted in Economy, Election, Geoff Freeman, Macau, Maryland, Pennsylvania, Politics, Regulation, Sheldon Adelson, Sports, The Strip, Tribal, Wall Street | Comments Off on Meet the candidates; Even when Adelson loses, he wins

Quote of the Day

Posted on January 26, 2016 by David McKee

sheladelson1“I guess [the Sands general counsel] could have filed something that said, ‘Dear Public: Our chairman is a little cuckoo.'” — Las Vegas Sands CEO Sheldon Adelson, testifying to the impairment of his job performance caused by painkillers. Interestingly, now that he owns the Las Vegas Review-Journal, Adelson is granting it interviews, as he did in this definitive chronicle of the Richard Suen litigation.

Posted in Macau, Sheldon Adelson | Comments Off on Quote of the Day

Christie’s bum rap; New partner for Packer?; Casino chicanery in Maine

Posted on January 26, 2016 by David McKee

“The people involved in this, if you took a thimble and put their knowledge of Atlantic City in it, it wouldn’t fill it,” says Thomas Carver, former policy czar for the resort town, who lost his job when he Christie Guadagnodispleased Gov. Chris Christie (R). The Washington Post has a comprehensive rundown of Christie’s struggles to revive the Boardwalk and concludes that it was a litany of poor decisions. There were certainly bad bets — a subsidy for Revel — and disappointments like Internet gambling. And there were less well-publicized gaffes, like ill-chosen public art (a nude woman cradling a dead deer — metaphor for Atlantic City?) and costly but underwhelming promotional campaigns: “Do A.C.” which locals rechristened “D.O.A. A.C.” But …

To take issue with some the Post‘s contentions, Christie was dealing with inexorable economic trends and, to his credit, he actually tried to Continue reading →

Posted in Atlantic City, Australia, Cosmopolitan, Economy, Election, Internet gambling, James Packer, Maine, Melco Crown Entertainment, New Hampshire, Penn National, Politics, Racinos, Revel, Taxes, The Strip | Comments Off on Christie’s bum rap; New partner for Packer?; Casino chicanery in Maine

The 7% solution; Grief in Texas

Posted on January 26, 2016 by David McKee

Woe betide the “Borgata Babe” who loses or gains more than 7% of her body weight. Do it and you’re out the door. This archaic — to say nothing of sexist — policy was passively reaffirmed when the New Jersey Supreme Court refused to hear the case. Boyd Gaming “is pleased borgata_exterior_sunsetwith the decision,” as well it might be, although it perpetuates a double standard in which women’s physical appearance is an essential criterion of her employment on the casino floor. On the one hand, the casino industry continues to treat women like Barbie dolls. On the other, the courts are guilty of allowing them to continue doing so. It’s difficult to say where blame should be affixed, although casinos like Borgata could make the first step and enter the 21st century when it comes to their attitudes toward women.

The Supreme Court let stand a 2013 appellate court ruling that “The Borgata Babe position comprised more than a job serving drinks and washing glasses. From its inception, an element of performance and Continue reading →

Posted in Atlantic City, Boyd Gaming, California, Delaware, Election, Internet gambling, MGM Mirage, Problem gambling, Regulation, Sports, Texas, Vermont | Comments Off on The 7% solution; Grief in Texas

Case Bets

Posted on January 25, 2016 by David McKee

Casinos: They’re not just for French resorts anymore. Marseille Mayor Jean-Claude Gaudin is plumping for a casino in his city, which is badly afflicted by poverty. He seems to be right on the curve, as far as a casino injection goes. Last year, the French casino industry’s revenues grew 2%, to $2.4 billion. To put the importance of provincial casinos in perspective, Deauville derives 30% of its tax base in gambling. The idea of bringing gambling to major French cities may catch on but probably not in Continue reading →

Posted in Economy, International, Internet gambling, Isle of Capri, Mississippi, New York, Taxes, Tilman Fertitta, TV | Comments Off on Case Bets

To park or not to park, that is the question

Posted on January 25, 2016 by David McKee

Jim Murren wants more than our money with MGM Resorts International‘s controversial new parking fees. He wants our gratitude. murren_t198“I ask them to honestly reflect what it means to be a local and how the tourist economy has improved their quality of life,” he said of irate Las Vegans, whose standard of living ebbs and flows with the tourist economy. Murren has a good point (and a tangible one) when he says that MGM’s Strip garages have lagged in capex maintenance. CityCenter‘s is so state-of-the-art compared to the others that it seems light years ahead. As for his competitors, “Frankly, they are sitting back and letting MGM take the heat on this,” he told the Las Vegas Review-Journal. Murren says he’s not tone-deaf on the issue, but he’s done a good impersonation so far.

Amazingly, the company claims to be surprised by the volume and intensity of negative reaction, which makes you wonder what kind of Yellow Submarine corporate culture is incubating at MGM. (I’ve never found them to be as out of touch as Caesars Entertainment, for instance.) Ever since it released this lead balloon, MGM has been shading in the gray areas of the initially nebulous policy. Circus Circus customers, rejoice: Continue reading →

Posted in CityCenter, Culinary Union, Economy, Harrah's, International, MGM Mirage, Sports, The Strip, Transportation | Comments Off on To park or not to park, that is the question

Another card room busted; Station becomes Red Rock

Posted on January 22, 2016 by David McKee

Scarcely was the ink dry on the American Gaming Association‘s proclamation of improved anti-money-laundering compliance than a plea-bargaining agreement was revealed involving the Normandie Casino, a venerable Gardena, California, card room. According to the Los Angeles Times, the Normandie “failed to properly record and report a series of large-scale cash transactions in 2013.” As a consequence, it will have to forfeit $1.3 million in winnings, plus pay a federal fine of $1 million. The Normandie’s sin was to Continue reading →

Posted in California, Economy, Geoff Freeman, Internet gambling, Law enforcement, Macau, Massachusetts, MGM Mirage, Neil Bluhm, Pennsylvania, Sheldon Adelson, Station Casinos, Tribal, Wall Street | Comments Off on Another card room busted; Station becomes Red Rock

Lean Christmas in Louisiana; Greater vigilance in industry

Posted on January 22, 2016 by David McKee

Louisiana gaming revenues came in for a hard landing (-7.5%) as the Golden Nugget Lake Charles marked its first anniversary. The New Orleans market (-13.5%) took it worst, although Lake Charles was lauberge_exteriordown 12%. The latter continues to be the top grosser in the state, bringing in $76 million to New Orleans’ $66 million. The Nugget’s novelty factor wore off in a hurry, as it was down 24% year/year. Grossing $30 million to the Nugget’s $21 million, L’Auberge du Lac was off 7%. Isle Grand Palais ($10 million) was down 11% while Boyd Gaming had a relatively easy time of it at Delta Downs, off only 2% on a $15 million gross.

Evidence of whether or not New Orleans’ new smoking ban has hurt Harrah’s New Orleans has been all over the place but it had a terrible December, grossing Continue reading →

Posted in Boyd Gaming, Churchill Downs, Economy, GLPI, Harrah's, Isle of Capri, Louisiana, Pinnacle Entertainment, Racinos, Regulation, Tilman Fertitta, Tropicana Entertainment | Comments Off on Lean Christmas in Louisiana; Greater vigilance in industry

A Revel by any other name …; Christie abandons Atlantic City

Posted on January 20, 2016 by David McKee

Whatever it’s called when Glenn Straub reopens it, that $2.4 billion turkey along the Boardwalk won’t be named Revel. The new moniker is the least of several uncertainties surrounding the property. For one, Straub Revel_0947hasn’t even finished his gaming-license application yet, so it’s ‘wait ’til next year’ for a reopening of Revel’s casino. And when it does come back, it will be half the size it once was. No operator has been announced (it definitely won’t be Straub’s Polo North) but the marketing focus will be on Asian players.

However, the casino is low on Straub’s to-do list for Revel. He wants to get construction of his planned water park underway this spring. While that’s in progress, he hopes to Continue reading →

Posted in Atlantic City, Election, Glenn Straub, Harrah's, Macau, Politics, Revel, Trump Entertainment Resorts | 1 Comment

Seminoles take to the air; Trop exec vanishes

Posted on January 20, 2016 by David McKee

Florida‘s Seminole Tribe is taking its case to the people, as its new compact with Gov. Rick Scott (R) faces an uphill slog in the Legislature. The compact is such a Rube Goldberg contraption, with so many moving parts, you might say it has something to offend everyone. Clearly, though, the Seminoles think their chances are better by bypassing the Lege and conducting TV air warfare to win what will be a Continue reading →

Posted in Delaware, Florida, GLPI, Harrah's, Indiana, Internet gambling, Marketing, Missouri, Pennsylvania, Pinnacle Entertainment, Politics, Regulation, Seminole Tribe, Tropicana Entertainment, TV | Comments Off on Seminoles take to the air; Trop exec vanishes

Big contract from Wynn; Parking debate continues

Posted on January 19, 2016 by David McKee

Wynn Resorts bought locally in its search for a Wynn Everett general contractor. It has let the $1 billion construction contract to Suffolk Construction, biggest in Massachusetts. By choosing a Boston company Massachusetts Gamblingfor this seven-figure deal (plus 4,000 jobs), perhaps Wynn will finally get Beantown Mayor Martin Walsh to quit running his yap about what a raw deal he’s getting from Steve Wynn. The casino company says it conducted a nationwide search for the right builder but surely it is more than coincidence that the prize ultimately went to a local contractor. Said Wynn’s Robert DeSalvio, “Suffolk Construction shares our values and is working with us full speed to meet our ground-breaking target,” having promised to meet the end-of-2018 deadline.

Responded Suffolk CEO John F. Fish, “To me, it is the crown jewel of our portfolio,” being the largest single contract the Continue reading →

Posted in California, Florida, GLPI, International, Iowa, Lawrence Ho, Marketing, Massachusetts, MGM Mirage, Missouri, Pinnacle Entertainment, Regulation, Steve Wynn, Technology, The Strip, Tourism, Transportation, Tribal | 2 Comments

Big win for Icahn; Boffo year for Pennsylvania

Posted on January 19, 2016 by David McKee

No further obstacles should remain to a Carl Icahn takeover of ailing Trump Taj Mahal after an appeals court found in favor of wage- and health-care rollbacks at the Atlantic City casino. Unite-Here Local 54 and the workers it represents were dealt a stinging setback, and have icahnto be wondering what other economy measures Icahn may implement. The latter has, however, promised a substantial infusion of capital into the Taj which “performs at the bottom of the Atlantic City market.” Icahn lost in one respect, namely the time it took to get a court ruling. His representatives contended the resort couldn’t withstand “another lost summer.” However, that may be just what it’s looking at after the long legal battle.

While Local 54 ponders its next move — possibly including a strike — it faces a lose-lose situation, its now workers now having to live on limited means but faced with an Icahn closure of the Taj had the appeals court gone against him. (Unite-Here wanted the dispute heard by the National Labor Relations Board.) In the meantime, it has to Continue reading →

Posted in Atlantic City, Carl Icahn, Cordish Co., International, Internet gambling, Nevada, Pennsylvania, Regulation, Sheldon Adelson, Taxes, Trump Entertainment Resorts, Unite-Here | Comments Off on Big win for Icahn; Boffo year for Pennsylvania

Case Bets

Posted on January 15, 2016 by David McKee

The glass at Penn National Gaming‘s Plainridge Park is both half-full and half-empty these days. The win/slot/day ($291) is 50% above the industry’s desired norm. However, Plainridge continues to bleed customers,
wilmottgoing from $12 million in revenue in November to $11 million last month. A racino with first dibs on Boston gamblers shouldn’t be suffering that kind of revenue drain. Writes Penn CEO Tim Wilmott, in a blast at the Boston Globe, “our slot machines in Plainville outperform every casino on the Las Vegas Strip.” That’s a bold claim but Wilmott’s got the numbers that presumably back him up … sounds like he’s really been hitting the books. “Even so, Wilmott adds, “Even so, we’re continuing to make adjustments to our gaming floor, based on customer preferences, and to ramp up our promotions and advertising.” The better is always the enemy of the good.

* Sliding stock prices across 4Q15 may have accelerated Continue reading →

Posted in Atlantic City, Florida, Isle of Capri, Massachusetts, Penn National, Politics, Racinos, Regulation, Seminole Tribe, Tribal, Wall Street | 1 Comment

Stick ’em up!

Posted on January 15, 2016 by David McKee

Addressing concerns about the quantity and proximity of parking to the T-Mobile Arena, executives at MGM Resorts International are busting Excalibur garageout plans for a $54 million parking garage, to be built on the northwest corner of the Excalibur “campus,” cannibalizing acreage devoted to space-inefficient surface parking. The 3,000-vehicle space will encompass employee parking as well as that for guests. In addition, MGM is spending $36 million to add (in verbatim): Continue reading →

Posted in Current, Economy, Marketing, MGM Mirage, Technology, The Strip, Transportation, Wall Street | 3 Comments

Moment of truth for DFS; Surprise champion for i-poker

Posted on January 14, 2016 by David McKee

Massachusetts Attorney General Maura Healey has come forth with her much-anticipated set of rules by which daily fantasy sports will be Healeyconducted in the Bay State. It’s not definitive yet (a public-comment period is forthcoming) and there may be some wiggle room, but as the first regulatory regimen devised for DFS in the United States, Healey’s example is bound to be influential. As one observer noted, “Maura Healey is a powerful law-enforcement officer. And DraftKings is headquartered in Massachusetts. To some extent, they have to play ball with Healey.”

That doesn’t mean DraftKings or FanDuel have to like the new rules. They include: Continue reading →

Posted in Internet gambling, Law enforcement, Massachusetts, Politics, Regulation | Comments Off on Moment of truth for DFS; Surprise champion for i-poker

Wynn Resorts opens its wallet; Further woes for Macao

Posted on January 14, 2016 by David McKee

Steve-Wynn-201198-1-402The most “george” figure in the casino industry last year would have to be Steve Wynn. Rank-and-file employees at Wynn Macau received a month’s salary as an end-of-year bonus. Senior management is ineligible for bonuses. Now, this is part of previously agreed-to bonus plan running through next year. However, if there was ever a time when Wynn could take cover and renege on the pretext of a poor business year, 2015 was it, especially as Wynn Resorts has taken it on the chin in VIP play. But Wynn kept his/its word and is to be commended for it.

The generosity certainly compares favorably to the two-tier bonus system implemented by Stanley Ho‘s underlings at Continue reading →

Posted in Economy, International, Law enforcement, Macau, Marketing, Regulation, Stanley Ho, Steve Wynn, Tribal, Wall Street | Comments Off on Wynn Resorts opens its wallet; Further woes for Macao

Atlantic City under siege; Detroit casinos deliver

Posted on January 14, 2016 by David McKee

New Jersey state Senate President Stephen Sweeney (D) hasn’t been elected governor yet but he’s behaving as though he were the Garden State’s chief Sweeneyexecutive. He’s the driving force behind a suddenly urgent move to exert state control over Atlantic City. Voicing economic policy evidently honed from playing too many games of Monopoly, Sweeney’s plan would “give the [Local Finance Board] control over governmental and administrative operations; the right to dissolve any municipal board or commission; and the right to sell municipally owned assets including water, sewer, wastewater and storm water facilities as well as city-owned real estate.” So who gets Boardwalk and Park Place?

Seriously, this regimen could place a heavier financial burden on hard-hit Atlantic citizens, although Sweeney thinks they’re a pampered lot. According to his figures, Atlantic City spends $6,717 per capita, more than double Continue reading →

Posted in Atlantic City, Dan Gilbert, Detroit, Economy, Entertainment, Georgia, Hard Rock Hotel, MGM Mirage, Politics, Revel, Taxes | Comments Off on Atlantic City under siege; Detroit casinos deliver

Quote of the Day

Posted on January 14, 2016 by David McKee

“Moms altered into purchasing their children unhealthy food, study states.” — CNN, as channeled by ArchyNewsy.com. And into what were these mothers altered? Stepford Wives maybe?

Posted in Dining | Comments Off on Quote of the Day