Baha Mar, beached whale of gaming; Betfair makes a tactical retreat

Posted on January 5, 2016 by David McKee

Prospective mold and corrosion are the likely fate of unfinished Baha Mar Resort, the $3.5 billion boondoggle that is probably the biggest megaresort flop of all time. (Only Fontainebleau on the Las Vegas Strip can hope to BahaMar_Vert_TM_RENDERED GOLD_4Ccompare and it has just one hotel to Baha Mar’s four.) It’s a debacle 10 years in the making and could jeopardize the credit rating of the Bahamas, for whom it was supposed to generate 12% of the nation’s GDP. In a moment of prescience, the-CEO of Caesars Entertainment Gary Loveman pulled his company out of Baha Mar early. Whether he saw the trouble that was coming is anybody’s guess but he’s earned the right to say “told you so.”

Local tycoon Sarkis Izmirlian envisioned Baha Mar as a $900 million project. But his partners got cold feet early in the Great Recession, forcing Izmirlian to make a Faustian pact.  Continue reading →

Posted in Cirque du Soleil, Fontainebleau, Harrah's, International, Internet gambling | 1 Comment

Schneiderman tightens the squeeze on DFS; Caesars’ Korean woes

Posted on January 4, 2016 by David McKee

SchneidermanIf you’re in New York State and lost money to FanDuel and DraftKings, you may be in line for a refund. At least that’s the case if Attorney General Eric Schneiderman has his way. He’s suing the two daily fantasy sports giants to refund losses to any Empire State player, with a $5,000 penalty per loser as a consolation prize. Schneiderman contends also that the DFS companies are using misleading advertising, hyping hundreds of dollars in bonuses that can only be gained by making thousands of dollars in wagers.

DraftKings and FanDuel say they don’t take wagers — but who are we kidding? — and DraftKings attorney David Boies added that the lawsuit showed Continue reading →

Posted in Harrah's, Internet gambling, New York, Planet Hollywood, Regulation, South Korea, Sports, The Strip | Comments Off on Schneiderman tightens the squeeze on DFS; Caesars’ Korean woes

Quote of the Day

Posted on January 4, 2016 by David McKee

“Police in illegal gambling raid in south Belfast.” — contrary to what the headline’s faulty grammar implies, it was the gambling which was illegal, not the raid.

Posted in International | Comments Off on Quote of the Day

Macao ends 2015 quietly; Record visitation not good enough for Vegas

Posted on January 4, 2016 by David McKee

That “squish” you heard from across the sea was Macao‘s gaming market reporting a decrease of 21% last month, practically good news when the-parisianmeasured against November’s 32% plunge. Mind you, Macanese casinos were averaging $74 million in win per day, so the six concessionaires are crying all the way to the bank. To put it in a historical context, this is the lowest Macao revenues have been since 2010.

As luck would have it, two resorts — Studio City and Sheldon Adelson‘s St. Regis — have just opened and three megaaresorts are scheduled for this year, starting with Continue reading →

Posted in Economy, Eldorado Resorts, Environment, Horseracing, LVCVA, Macau, Melco Crown Entertainment, MGM Mirage, Sheldon Adelson, Steve Wynn, The Strip, Tourism, Wall Street, West Virginia | Comments Off on Macao ends 2015 quietly; Record visitation not good enough for Vegas

Trump’s hocus-pocus; Tribal backlash in New York

Posted on January 4, 2016 by David McKee

If there is one thing that Donald Trump is good at, it is making dealings with creditors that come out in his favor. Perhaps this fuels his current mania that he can make the rest of the civilized world bend to his personal trump 2will. What it’s meant for the casino industry is bankruptcy upon bankruptcy in Atlantic City, where he paid himself $1.5 million in 1992 to take Trump Castle out of bankruptcy, setting a pattern of self-dealing at the expense of his creditors who “were told to take less than they were owed. Workers lost their jobs.” Trump’s ass, however, was never in a sling.

Trump has no remorse toward those he stiffed, saying, “They made plenty of money on me.” In the meantime, he was leveraging Continue reading →

Posted in Atlantic City, Donald Trump, Internet gambling, New York, Regulation, Tribal, Wall Street | 2 Comments

DFS advances in Iowa, regroups in Illinois

Posted on December 31, 2015 by David McKee

Legalization of daily fantasy sports got halfway to the goal line in the 2015 Iowa Legislature. State Rep. Jake Highfill (R) hopes to get into the endzone in 2016 with a revised version of a bill that already cleared the state Iowa sealSenate. One of the things Highfill will have to reconcile with his bill is an existing Iowa law that caps social-gaming winnings at $200. That’s peanuts compared to some of the DFS payouts, most notoriously Ethan Haskell‘s controversial $350,000 gold strike. Public sentiment — to the tune of 63% of Iowans surveyed — backs Highfill.

As state Sen. Jeff Danielson (D) says, “We cannot scare ourselves to death about issues that come up. This is Iowa. We learn to adjust and protect our citizens, and we will do that in the online gaming environment as well.” Highfill’s bill will be Continue reading →

Posted in Atlantic City, Boyd Gaming, Dining, Entertainment, Glenn Straub, Illinois, Internet gambling, Iowa, MGM Mirage, New York, Regulation, Revel | Comments Off on DFS advances in Iowa, regroups in Illinois

What’s Sheldon’s game?; Penn struggles at Plainridge

Posted on December 30, 2015 by David McKee

Sheldon Adelson‘s apparent use of Las Vegas Review-Journal reporters to get back at Judge Elizabeth Gonzalez is putting him and his purchase of the newspaper under the microscope of the Nevada Gaming Control Board. Casino owners aren’t barred from owning newspapers, gosh knows, sheladelson1but are liable for activity that “might reflect discredit upon the state.” According to the New York Times, the anti-Gonzalez piece “appeared to use fabricated quotations and had the byline of a person who does not appear to exist.” The Adelson purchase has also attracted regulatory scrutiny in Pennsylvania. Ironically, Adelson and Las Vegas Sands are refusing interview requests from the very newspaper the Adelson family owns.

Adelson has already said he might import “positive characteristics” to make the Review-Journal more like his Israel Hayom. The latter is so closely aligned with the agenda of Continue reading →

Posted in Atlantic City, Economy, Horseracing, Kansas, Massachusetts, Penn National, Politics, Racinos, Regulation, Rhode Island, Sheldon Adelson, Tribal | Comments Off on What’s Sheldon’s game?; Penn struggles at Plainridge

Caesars’ escape artistry; Boyd goes native

Posted on December 30, 2015 by David McKee

Caesars Entertainment gained some breathing room after U.S. District Judge Shira Scheindlin ruled that “material disputes” involving its Caesars Palaceremoval of guarantees to bondholders required resolution by trial, not summary judgment. Caesars feared the latter, contending that it would contend that it would cause the parent company to join subsidiary Caesars Entertainment Operating Co. in bankruptcy. Judge Scheindlin’s ruling compounds the frustration of creditors MeehanCombs Global Credit Opportunities Funds and Frederick Barton Danner, who claim that Caesars violated the Trust Indenture Act. Caesars wants any court proceeding in the case to held off until two months after court-appointed examiner Richard Davis concludes his investigation of the Chapter 11. One of the matters that Davis is probing is Continue reading →

Posted in Boyd Gaming, California, Harrah's, International, Macau, Melco Crown Entertainment, Oklahoma, Sheldon Adelson, Tribal, Wall Street | Comments Off on Caesars’ escape artistry; Boyd goes native

Trump: The art of disaster; Good November for Las Vegas

Posted on December 30, 2015 by David McKee

If Donald Trump proposes to run America the way he ran his casinos, God help us all. He built a Boardwalk empire in Atlantic City with a lot of hocus-pocus, debt financing and sky-high interest rates (14% for Trump Trump mediumTaj Mahal). With typical Trump insecurity, he got analyst Marvin Roffman — a friend of mine — fired from Janney Montgomery Scott after Marvin predicted (accurately) that Trump Taj Mahal would go bankrupt, so heavily was it leveraged. In another sham transaction, Trump had his father buy $3.5 million in Trump’s Castle chips as a subterfuge to pump money into the casino.

Trump’s massive indebtedness was, in a perverse way, his salvation. True, he had to submit to a personal allowance and sell some of his toys, like Continue reading →

Posted in Atlantic City, Boulder Strip, Donald Trump, Downtown, Economy, Harrah's, Laughlin, Mesquite, North Las Vegas, Reno, The Strip, Trump Entertainment Resorts, Uncategorized, Wall Street | 2 Comments

Merry Christmas to all and to all a good night

Posted on December 24, 2015 by David McKee

S&G will be taking a few days off for the Christmas holidays. To help tide us all over, here is the most erotic Christmas song ever recorded, “Santa Baby.” The incomparable and unique Eartha Kitt makes it clear through sly innuendo exactly what she wants from the fellow in the red suit.

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Florida compact decried; Reprieve for Atlantic City?

Posted on December 23, 2015 by David McKee

Despite being at the epicenter of Florida‘s gaming industry, the Miami Herald has come out against Gov. Rick Scott‘s compact with the Seminole Tribe, wringing its hands and seeing a slot machine under every Seminole logobed. “This is a major expansion of gambling in Florida, with serious implications for Miami-Dade County,” frets the editorial board, although you’d think the “serious [economic] implications” would be good for the county. But no, the Herald is greatly distressed, especially about the fact that under the terms of the compact the Seminoles could have as many as 6,000 slots at one of their casinos. Horrors!

In addition to the predictable objections to banked casino games at the Seminole-owned properties, the Herald balks at provisions like Continue reading →

Posted in Atlantic City, Election, Florida, Massachusetts, Neil Bluhm, New York, Penn National, Politics, Racinos, Regulation, Seminole Tribe, Sheldon Adelson, Tribal | Comments Off on Florida compact decried; Reprieve for Atlantic City?

New York blesses three casinos; Sinatra hangout resurrected

Posted on December 23, 2015 by David McKee

Not a discouraging word was to be heard as the New York State Gaming Commission unanimously approved licenses for three casinos in various Rivers Schenectadyupstate market. (Tioga Downs‘ turn comes later, as it was delayed entrant to the process.) This removes the uncertainty  and frustration that were dogging $320-million Rivers Casino & Resort at Mohawk Harbor, near Schenectady, $425-million Lago Resort & Casino and the big dog, $1.3-billion Montreign Resort Casino, in the Catskills. Montreign developer and Genting Group subsidiary Empire Resorts certainly isn’t thinking small about the casino: 90,000 square feet of gambling that will include 102 tables and 2,150 slots. It’s part of a bigger resort project, Adelaar, that will supplement Montreign’s charms with an indoor water park and a golf course. Now Empire can stop just moving dirt around and get down to construction in earnest.

Gaming Commission Chairman Robert Williams made the sort of remarks that are de rigeur for such occasions, saying,  Continue reading →

Posted in Architecture, Genting, history, Lake Tahoe, Neil Bluhm, New York, Regulation, Taxes | 1 Comment

Quote of the Day

Posted on December 23, 2015 by David McKee

Layout 1“I could have sold pencils over there and made more money.” — Cosmopolitan of Las Vegas CEO Bill McBeath on the casino floor, which is due to be part of a $200 million, three-year revamp of the megaresort.

Posted in Architecture, Cosmopolitan, The Strip | Comments Off on Quote of the Day

Good news in Indian Country

Posted on December 22, 2015 by David McKee

It’s a happy day for the Picayune Rancheria of Chukchansi Indians, which got the go-ahead from the National Indian Gaming Commission to reopen its long-troubled Chukchansi Gold Resort & Casino. The CapitolNIGC was feeling so generous, in fact, that it suspended a $19 million fine, Chukchansi so long as the casino remains in compliance with commission regulations. The tribe also got a bailout from its bondholders. Although the Chukchansi are at least $12 million in arrears to them, the bondholders arranged $35 million in supplementary financing to cover the cost of reopening the casino, the target date for which is sometime in January. That means 1,000 new jobs in 2016.

If “anything occurs to threaten the health and safety of the facility or its patrons and employees,” the tribe’s deal with the NIGC is off. As Madera County Supervisor Tom Wheeler said,  Continue reading →

Posted in California, Dan Gilbert, Harrah's, Massachusetts, Ohio, Pennsylvania, Regulation, Sheldon Adelson, Technology, Tribal | Comments Off on Good news in Indian Country

Quote of the Day

Posted on December 22, 2015 by David McKee

“I’ve never wagered in a football pool, and find sports as interesting as watching grass grow. But I’d rather try my hand at these games than the state lottery or slot machines. The websites have daily wagers now (and not just season-long competitions), but they are still based on choices and statistics.” — San Diego Union-Tribune columnist Steven Greenhut, arguing on behalf of daily fantasy sports.

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

Malice on the Strip; Tribal foes routed

Posted on December 22, 2015 by David McKee

For people with evil in their hearts, the Las Vegas Strip represents a target-rich environment. Most vulnerable are the pedestrians who clog the Hollowaysidewalks, prey for all manner of harm. Last weekend, it took the form of a rampaging automobile with Lakeisha Holloway at the wheel. Ramming her vehicle into the crowds from Planet Hollywood to Bally’s Las Vegas, Holloway killed one woman and injured 35 more people. Holloway had been lurking in Vegas for several days with her small daughter in tow, living in her car in casino garages, which ought to be a loud wake-up call to casino security throughout Sin City. How was this missed?

“She didn’t appear to be distressed due to her actions,” said Sheriff Joe Lombardo of Holloway, who got as far as Tuscany Suites & Casino on a flat tire before being arrested, having already confessed her crime to Continue reading →

Posted in Arizona, Harrah's, International, Lake Las Vegas, Law enforcement, Politics, The Strip, Tourism, Tribal | Comments Off on Malice on the Strip; Tribal foes routed

Reid delivers for REITs; Packer calls it quits

Posted on December 22, 2015 by David McKee

Sen. Harry Reid (D) may not see as well as he used to, but he’s still got plenty of ‘juice’ on Capitol Hill. He delivered an early Christmas present harryreid_t178for campaign donor (and Caesars Entertainment co-owner) David Bonderman, in the form of a provision that would preserve a loophole whereby REIT spinoffs would not be subject to capital-gains taxes. The proposed rules change also “would prevent companies from setting up their own affiliated REITs, to hold their property and no one else’s,” which would run a cart and horses through REITs planned by Caesars and MGM Resorts International, another staunch Reid supporter. The so-called “Caesars-TXU carve out” will cost the U.S. government roughly $1 billion in anticipated tax revenues.

Rep. Kevin Brady (R), author of the legislation that Reid gutted, took the defeat in stride, saying Continue reading →

Posted in Atlantic City, Australia, Boyd Gaming, Hard Rock International, Harrah's, Harry Reid, James Packer, MGM Mirage, Politics, Taxes, The Strip | Comments Off on Reid delivers for REITs; Packer calls it quits

When you wish upon a star

Posted on December 21, 2015 by David McKee

Despite a shakeup by Gov. Greg Abbott (R, below), the Texas Racing Commission still has a death wish when it comes to “instant racing.” When, in keeping with Abbott’s wishes, the TRC held a vote to repeal the AbbottVLT gambling, it failed, stuck in a 4-4-1 tie. Never mind that the TRC wants to revisit the issue in February, “give the industry two months to try to do something,” as one commissioner put it, new TRC Chairman Rolando Pablos told his colleagues to expect the worst: defunding of the commission by irate GOP lawmakers. And, without a TRC there can be no racing season, so there goes the whole shooting match … and all because some commission members wanted to keep the door open for racinos, which really ought to be the prerogative of the Lege. (I hate to side with anti-gamblers but the TRC really overreached here.)

Horseman continue to mawkishly posit VLTs as their last, best hope for an industry “that doesn’t have any hope.” (Shades of  the Continue reading →

Posted in California, Dining, history, Horseracing, New York, Racinos, Regulation, Texas | Comments Off on When you wish upon a star

Quote of the Day

Posted on December 21, 2015 by David McKee

“You’re talking about a man who a month ago wasn’t paying for water or revel_0606sewer, didn’t pay his taxes and couldn’t figure out how to get heat and electricity into his building. He’s resolved all those things, and it’s a good step forward now. It’s a different feeling.” — Atlantic City Mayor Don Guardian (R), extending a cautious olive branch to will o’ the wisp developer Glenn Straub. The latter, for his part, wasn’t ready to reconcile. Said Straub, “we’ll just keep buying up the town for 5 cents on the dollar. If we have to sit on it for 10 years, we will, and then there will be a new government.”

Posted in Atlantic City, Glenn Straub, Revel | Comments Off on Quote of the Day

Gaming expansion in Garden State moving fast; Mashpee Wampanoags challenged

Posted on December 18, 2015 by David McKee

New Jersey lawmakers are wasting no time getting a casino-expansion question onto next year’s election ballot. Enabling legislation fairly shot out of committee in both houses of the Lege. The Assembly version would Guardiandevote 33% of tax revenue from two gambling houses in northern New Jersey to Atlantic City. That arrangement would last for 15 years, after which the subsidy would be stepped down to 20% in Year 25. None of this seems to impress dapper Atlantic City Mayor Don Guardian (R, right). It’s hard to disagree with him when he calls the policymaking in Trenton “devastating” for the Boardwalk.

Lawmakers seem to tacitly agree, having just send a bill to Gov. Chris Christie‘s desk that would set aside job-retraining funds specifically for Continue reading →

Posted in Arizona, Atlantic City, Genting, Indiana, Internet gambling, Massachusetts, MGM Mirage, Neil Bluhm, Pennsylvania, Politics, Regulation, Taxes, Tribal | Comments Off on Gaming expansion in Garden State moving fast; Mashpee Wampanoags challenged