Brokeback Adelson; McDowell calls it a day

Sheldon Adelson must be wishing he could quit Michael Schroeder. He’s the loud tin can tied to the back of the Adelson limousine whose incessant rattling continues to draw attention to the casino tycoon’s foray into U.S. new media. Schroeder, the micro-tenured “manager” of the Las Vegas Review-Journal and Sheldonstalking horse for the Adelson family, who screwed up and was quickly sent scuttling back to Connecticut, has now taken center stage in the Steven Jacobs lawsuit. The latter’s lawyers want to know whether Las Vegas Sands Vice President of Finance & Strategy Patrick Dumont (who orchestrated Adelson’s R-J buyout) discussed the Jacobs case with Schroeder. The latter is reviled throughout the journalistic community for having published a hit piece on Judge Elizabeth Gonzalez that “contained plagiarized passages and made-up quotes, and was published under the pseudonym Edward Clarkin.”

Dumont tried to conceal himself behind journalistic shield laws when questioned whether he’d done any string-pulling in the “Clarkin” piece. Jacobs’ attorney, Todd Bice, said the questioning of Dumont was germane because Continue reading

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Atlantic City: Better than expected

As much as one hates the term “rightsizing” or endorsing the closure of four casinos, with all the job losses those entail, the numbers say that Atlantic City‘s casino market has been reduced to optimal size. December’s revenues resortswere down only 1% from last year. Internet gambling dollars, meanwhile, shot up 31%, for a $14 million gross. The market share division for online play remains much as before, although Resorts Atlantic City‘s sloth in deploying its PokerStars affiliation is tantamount to giving money away to the competition.

Terrestrially, Borgata grossed $55 million, a 10% increase. Much of this was driven by the tables, where the house won 27% more, despite 7% less money wagered. That was quite a difference from the market as a whole, where Continue reading

Posted in Atlantic City, Boyd Gaming, Dining, Harrah's, Internet gambling, MGM Mirage, Mohegan Sun, PokerStars, The Strip, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts, Wall Street | 3 Comments

Crosby: DFS equals Internet gambling; Macao’s newfound love for slot players

Although state Attorney General Maura Healey continues to draw a road map for daily fantasy sports in Massachusetts, the state’s gambling regulatory body has stepped forward to volunteer its services as an Crosbyenforcement agent. Yes, DFS would be classified as gambling in the Bay State, at least if Massachusetts Gaming Commission Chairman Stephen Crosby gets his wish. “One approach for the Legislature to consider is to recognize that because Internet gaming activity is unique, quickly deployed and highly malleable, regulation ought to be vested in a single, nimble Internet gaming regulatory body,” wrote the MGC. (That’s right, DFS would be codified as Internet gambling.) It added, “This approach would require new legislation, but the regulatory body could be one that currently exists or one that the Legislature creates” (emphasis added).

Down in New York City, state Attorney General Eric Schneiderman‘s attempts to pull the plug on DFS were stayed by an appeals court, meaning that DraftKings and FanDuel can continue operations at least until the issue has been adjudicated at trial. Schneiderman — known to some as “Inspector Gotcha” — is pushing back with Continue reading

Posted in Illinois, Internet gambling, Macau, Marketing, Massachusetts, MGM Mirage, Missouri, New York, Penn National, Regulation, Stanley Ho, Tribal, Tropicana Entertainment, Wall Street | Comments Off on Crosby: DFS equals Internet gambling; Macao’s newfound love for slot players

Quote of the Day

“Right off, the proposal set off a howl of opposition from legislators against any deal that might be seen as ‘an expansion of gambling.’ (As if there’s Florida flagsome moral difference between, say, Floridians losing money while playing the electronic virtual roulette and craps machines now available at South Florida casinos and Floridians betting at actual roulette wheels or craps tables.) Perhaps it’s the opposition of influential companies like Disney World that brings moral clarity to anti-gambling lawmakers.” — Miami Herald columnist Fred Grimm on the multifarious issues and myriad opponents lining up against Gov. Rick Scott‘s compact with the Seminole Tribe.

Posted in Florida, Politics, Tribal | Comments Off on Quote of the Day

Atlantic City: Sweeney wins … or does he?

In the end, New Jersey‘s two houses of the Legislature came together on casino expansion and we have to say that Assembly Speaker Vincent Prieto (D) blinked first, from where we sit. (In the peanut gallery, natch.) But was state Senate President Stephen Sweeney‘s victory Pyhrric in nature? Looks that way. By squabbling until after the Jan. 11 deadline, Sweeney and Prieto will now have to summon supermajorities in both houses. And legislators will have to keep in mind the prospect of Continue reading

Posted in Atlantic City, Carl Icahn, Fontainebleau, Glenn Straub, Hard Rock International, Harrah's, MGM Mirage, New York, Politics, Sheldon Adelson, Steve Wynn, Taxes, Tilman Fertitta, Trump Entertainment Resorts | 2 Comments

Gaming forecast: Moderately sunny; Adelson + R-J = bad news

Deutsche Bank analyst Carlo Santarelli hung out along the Las Vegas Strip last week and “found few signs of caution as forward indicators remain favorable in most key areas.” Both New Year’s Eve business and mgm-picconvention calendars for the first half of this year were characterized as strong. “Strip-centric operators” (think MGM Resorts International, maybe even Caesars Entertainment) were deemed “attractive.” Santarelli predicted that room rates would continue to rise, based on “1) no new supply, 2) added airlift capacity, 3) continued visitation growth on top of the 2015 expected new peak, and 4) steadily growing convention attendance in 2016.”

Even without resort fees (which the Las Vegas Convention & Visitors Authority doesn’t report as revenue) casino-hotels saw 3% higher RevPAR last year, with 85% of that driven by higher room rates. Santarelli predicts occupancy levels to Continue reading

Posted in Economy, Harrah's, Law enforcement, Louisiana, Macau, MGM Mirage, Sheldon Adelson, Technology, The Strip, Transportation | Comments Off on Gaming forecast: Moderately sunny; Adelson + R-J = bad news

Quote of the Day

Maharashtra is the den of illegal gambling. If the taxation on gaming is legalised, it could earn good revenue for State.” — attorney Jay Sayata on the activation of a 40-year-old law which could legitimize casinos in Goa and Sikkim. The Indian subcontinent is estimated to be as large as a $60 billion market for gambling.

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Christie takes sides in casino fight; Healthy month in Missouri

“I can’t say it won’t ever happen, but by 2018, New York will have approved a casino in Staten Island. It needs to be now because we have the christieopportunity now.” Thus spake New Jersey State Senate President Stephen Sweeney (D), trying to light a fire under opponents of his casino-expansion bill. He picked up two heavyweight supporters over the past week. Not only does Unite-Here Local 54 President Robert McDevitt prefer Sweeney’s bill — no doubt because it restricts new casino development to existing operators and sends more tax money to Atlantic City — so does Gov. Chris Christie (R).

Calling the Lege’s impasse “disturbing,” Christie said, “Inaction should not be an option. Delay puts the expansion of gaming in peril. That is not in the interests of anyone in New Jersey, north or south.” Assembly Speaker Vincent Prieto (D), alluding to Christie’s months on the campaign trail, shot back,  Continue reading

Posted in Ameristar, Atlantic City, Georgia, Harrah's, Illinois, Isle of Capri, Massachusetts, New York, Penn National, Pinnacle Entertainment, Politics, Regulation, Steve Wynn, Tribal, Tropicana Entertainment, Unite-Here | Comments Off on Christie takes sides in casino fight; Healthy month in Missouri

Tribal headache for Connecticut; Wynn, Adelson eye New Jersey


Proposed new rules that would make it easier for tribes to gain federal recognition could have a seismic effect on the casino business in Connecticut. Three potentially recognized tribes could vie for as many as four new casinos. One says “four” because the Schaghticokes are split into two factions, the Schaghticoke Indian Tribe and the rival Schaghticoke Tribal Nation, both of which are seeking recognition. A plethora of new, casino-seeking tribes would upset the applecart that is the state’s longstanding relationship with the Mashantucket Pequot and Mohegan tribes. Small wonder that Gov. Dannel Malloy (D) is personally lobbying Continue reading

Posted in Atlantic City, Donald Trump, Economy, Foxwoods, Mohegan Sun, Pennsylvania, Politics, Sheldon Adelson, Steve Wynn, The Strip, Tribal | Comments Off on Tribal headache for Connecticut; Wynn, Adelson eye New Jersey

Illinois down, Indiana up

While surrounding states prosper at their casinos, Illinois‘ continue to suffer, especially now that they must compete with slot routes. Deutsche Grand Victoria ILBank analyst Carlo Santarelli crunched the numbers and found that even though bettors were wagering 2% more, there was a 5% decline in foot traffic. The brightest spot was MGM Resorts International‘s Grand Victoria (pictured), up 6% on a gross of $15 million. Other gainers were Neil Bluhm‘s Rivers Casino, up 2% on $36 million, Gaming & Leisure PropertiesCasino Queen (+3%, $9 million) and Jumer’s Casino Rock Island (+1%, $6 million).

Penn National Gaming took a battering, with Argosy Belle in a disastrous, 23% spiral ($3.5 million), while Continue reading

Posted in Ameristar, Boyd Gaming, Dan Lee, GLPI, Harrah's, Illinois, Indiana, MGM Mirage, Neil Bluhm, Penn National, Pinnacle Entertainment, Racinos, Tropicana Entertainment | Comments Off on Illinois down, Indiana up

Rage against DFS; Iowa stays stable

FanDuel and DraftKings are optimized for power players to rape and pillage regular players over and over again.” So says daily fantasy sports podcaster Gabriel Harber, in the course of a lengthy New York Times Draft Kingsexpose of the DFS industry. It shows a business desperately in need of regulation, playing its games on a tilted field that favors the high rollers in the sport. According to reporter Jay Caspian Kang, the fact that a small number of players rake in most of the winnings does not prove that DFS is a game of skill and “only the sites with the biggest prize pools could survive.”

Rather, it’s “a rapacious ecosystem in which high-volume gamblers, often aided by computer scripts and optimization software that allow players to Continue reading

Posted in Ameristar, Boyd Gaming, Economy, Harrah's, Internet gambling, Iowa, Isle of Capri, Massachusetts, Nevada, Pinnacle Entertainment, Regulation | Comments Off on Rage against DFS; Iowa stays stable

Arc de scandale; New Illinois casino nominee

Macao is still reeling from an embezzlement scandal involving a Wynn Macau junket operator and now $13 million has gone missing from L’Arc, a Larcsublicensee of Sociedade de Jogos de Macau and owned by SJM’s Angela Leong. This immediately raised the prospect of more governmental oversight, prompting Deutsche Bank analyst Karen Tang to write, “If Macau tightens junket regulations, we feel that more small junkets will go out of business after Chinese New Year, and even bigger junkets may face redemption pressures.”

In what was a blessing in disguise for the operators, VIP played dropped to less than 50% of gaming revenue Continue reading

Posted in Foxwoods, Galaxy Entertainment, Illinois, Macau, Massachusetts, MGM Mirage, Mohegan Sun, Penn National, Regulation, Sheldon Adelson, Stanley Ho, Steve Wynn, Wall Street | Comments Off on Arc de scandale; New Illinois casino nominee

Ground shifts on i-gaming in California; T-Mobile’s new trophy

California took one step forward and one step back in the field of Internet gambling. A bill to legalize online poker was scratched from yesterday’s legislative agenda. If it makes you feel any better, the opposition california_state_flagof six major California tribes probably doomed the legislation from the outset. The bill was favored by PokerStars, whom the tribes want to see excluded from the Golden State under a “bad actor” clause. This is such a hot-button issue that it has doomed every previous attempt to legitimize online gambling in California, with no resolution in sight.

Elsewhere in the state house, a bill advanced out of an Assembly committee that would legalize daily fantasy sports — provided that Continue reading

Posted in California, Cosmopolitan, Dining, Entertainment, MGM Mirage, Planet Hollywood, PokerStars, Politics, Sam Nazarian, Sports, The Strip | Comments Off on Ground shifts on i-gaming in California; T-Mobile’s new trophy

Penn owns Ohio; Adelson expands R-J

Gaining 19% last month, Hard Rock Rocksino reclaimed its top spot in Ohio, grossing almost $19 million and edging aside Horseshoe Casino Cleveland by one decimal point. The latter saw an 11% slippage revenues, Hollywood Casino Columbus treeswhile ThistleDown Racino continues to look like a mistake, down 7% on an $8.5 million gross. Rock Gaming Caesars managed to save some face in the Queen City, where Horseshoe Casino Cincinnati rose 4% on an $18 million gross.

But the big story was Penn National Gaming, displaying success across the board. Hollywood Columbus, in its most competitive market, grossed 18% and was up 6%, despite slot revenues that were only average. It still managed to outperform analyst expectations, as did Hollywood Casino Toledo, where coin-in was up 10% and Continue reading

Posted in Cosmopolitan, Dan Gilbert, Eldorado Resorts, Hard Rock International, Harrah's, MGM Mirage, Ohio, Penn National, Pinnacle Entertainment, Racinos, Regulation, Sheldon Adelson, Steve Wynn | Comments Off on Penn owns Ohio; Adelson expands R-J

Hope for Atlantic Club; Boffo month for Maryland

Not so fast, says Endeavor AC about yesterday’s report that its purchase of the Atlantic Club was defunct. The would-be purchaser says it has “a very atlantic-city-hilton-casino-resortstrong and creditable private equity source to finance the acquisition and development of the Atlantic Club property as an indoor waterpark resort.” Failing that, “Endeavor is also actively considering other sites in Atlantic City.” Endeavor is already pretty seriously committed, having spent several months paying the carrying costs on behalf of Atlantic Club owner TJM Properties. It’s also publicly committed to invest up to $160 million building the water park onto the back end of the Atlantic Club (and has bought some adjoining real estate) and revive the dormant hotel. The plan was to open the water park late this year or early next year, but TJM has thrown a monkey wrench into the works. We’d advise Glenn Straub to keep pushing forward on his water-park plan for Revel.

* 2015 went out like a lion in Maryland, with near-record gaming grosses, including Continue reading

Posted in Atlantic City, Cordish Co., Dan Gilbert, Glenn Straub, Golden Gaming, Harrah's, Japan, Law enforcement, Maryland, Penn National, Pennsylvania, Planet Hollywood, Politics, Problem gambling, Racinos, Revel, Sheldon Adelson, SLS Las Vegas, The Strip, Tourism | Comments Off on Hope for Atlantic Club; Boffo month for Maryland

Quote of the Day

Memo to Ted Cruz: Journalism salaries are already in the crapper. It’s called “outsourcing.”

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Adelson’s endurance; Doom for Dotty’s?

Outwardly, Sheldon Adelson maintains an air of placidity regarding business affairs in Macao, where gaming revenue dropped 34% in 2015. sheldonadelsonHowever, it can’t much please him to pick up his morning newspaper and read that Wall Street is expecting more of the same in 2016. For that matter, where are the relief measures that China‘s central government promised would materialize by year’s end but somehow forgot to implement? Of all the Macao concessionaires, Adelson has borne Beijing‘s crackdown on everything from currency movement to table-game allocations with the most grace. (A real surprise, considering Sheldon’s hard-earned reputation for intemperance.)

Whether or not casino operators bought into it, gaming analysts had visions of a $100 billion-a-year Macao market by 2020 dancing in their heads, so last year’s $29 billion gross was Continue reading

Posted in Cosmopolitan, Dotty's, Economy, Macau, Regulation, Sam Nazarian, Sheldon Adelson, Wall Street | 1 Comment

Quote of the Day

Diaz“I don’t think there’s a single person that, no matter how you craft this bill, is going to be 100 percent happy with it. I think the question they’re going to have to ask themselves is, ‘Can I live with the things I don’t like and the things I like about this bill in totality?’ ” — Florida state House Regulatory Affairs Chairman Jose Felix Diaz (R), on the difficulty of passage (and many moving parts) in Gov. Rick Scott‘s gaming compact with the Seminole Tribe.

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Suffolk Downs fights back; Scrum in New Jersey Lege

Boston Mayor Martin Walsh may well have thrown in the towel in his lawsuit against Wynn Everett (technically against the Massachusetts Gaming Commission) but a quartet of Suffolk Downs workers aren’t letting Judge Janet Sanders‘ dismissal of aforesaid lawsuit go down healey_maurawithout a fight. They’re suing to have the litigation reinstated. After all, state Attorney General Maura Healey had ruled that 100 hours of MGC deliberations violated Massachusetts open-meeting laws by being held behind closed doors. Judge Sanders ruled that the suit against the MGC lacked “sufficient factual allegations.” Aye, there’s the rub. Without knowing the content of the meetings, how could the litigants make substantive allegations? The Suffolk Downs foursome hopes that conundrum is enough to bring their lawsuit back from the dead.

* Let’s hope Glenn Straub is serious about his proposed water park for Revel (Straub tends to Continue reading

Posted in Atlantic City, Colony Capital, Entertainment, Glenn Straub, Macau, Massachusetts, MGM Mirage, Politics, Racinos, Regulation, Revel, Stanley Ho, Steve Wynn, The Strip | 1 Comment

Another day in Adelsonia

After a weeks of ham-handed “managing” of the Las Vegas Review-Journal, controversial executive Michael Schroeder got the heave-ho, the apparent Adelson portraitprice of having brought unwanted attention to Sheldon Adelson‘s ownership. He was also an ethical cancer on the R-J, having been exposed as the author of a hit piece on Judge Elizabeth Gonzalez, in a story that “included made-up quotes and plagiarized passages.” Schroeder didn’t exactly endear himself to staffers by telling them “focus on your jobs … and don’t worry about who [the owners] are.” What a snot. Such clumsy obfuscation caused the spotlight to shine all the more brightly on Adelson.

I’m also going to go out on a limb and predict that Sheldon will be revealed as the mogul planning a 100,000-seat arena, as reported in Continue reading

Posted in Donald Trump, Harrah's, Macau, Politics, Regulation, Sheldon Adelson, Steve Wynn, The Mob, The Strip | Comments Off on Another day in Adelsonia