‘Net betting in Massachusetts?; Fast track for skill-based slots

Posted on December 3, 2015 by David McKee

Pressure to legalize Internet gambling has emerged from an unexpected quarter — Massachusetts. State Sen. Bruce Tarr (R) Tarrhas proposed a bill that would allow Web casinos to piggyback onto existing brick-and-mortar ones. True, Wynn Resorts is averse to ‘Net betting and MGM Resorts International is indifferent, but we haven’t heard from the Mashpee Wampanoags and Penn National Gaming is ready to jump in with both feet. “We support the authorization of Internet gaming to the extent it protects the economic investment the brick-and-mortar casinos have made in the state and the jobs we’ve created,” said Penn’s spokesman, Eric Schippers. Depending on how much clout Penn wields at the statehouse, Massachusetts could leapfrog several other states which are pondering Web wagering at a snail’s pace.

Speaking of the Wampanoag, the tribe is treating its casino project as a fait accompli. It is working with two Continue reading →

Posted in Atlantic City, Internet gambling, Macau, Massachusetts, MGM Mirage, Penn National, Politics, Scientific Games, Steve Wynn, Technology, Tribal, Wall Street | Comments Off on ‘Net betting in Massachusetts?; Fast track for skill-based slots

Quote of the Day

Posted on December 3, 2015 by David McKee

“Nevada, deep down inside, would like to have it and regulate it. It’s another profit center … If it were put into play and if it was regulated by Nevada, that’s going to be another way to get millennials into the casinos.” — Ohio University professor Alan Silver on the growing movement to regulate — and tax — daily fantasy sports.

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

Penn charms Wall Street

Posted on December 3, 2015 by David McKee

JP Morgan analyst Joseph Greff recently sat down with Penn National Gaming COO Jay Snowden and, of course, the big topic of conversation was Plainridge Park. Penn doesn’t see Wynn PlainridgeEverett — when it opens in 2018 — as a competitive threat, focusing more on Twin River Casino, in Rhode Island. Although Plainridge is doing a boffo $335/slot win/day, this was characterized as “weaker than expected.” New England Patriots fans were scapegoated and Penn’s solution is “continuing to build its database (up to ~135k) and ongoing operational tweaks,” which sounds like another way of saying there’s not much they can do. Besides, at a 20% return on investment, there’s really nothing to apologize for in its operational performance.

Much talk was also devoted to the Tropicana Las Vegas, for whose performance Greff thinks Continue reading →

Posted in California, Economy, Illinois, M Resort, Marketing, Maryland, Massachusetts, MGM Mirage, Missouri, Penn National, Pennsylvania, Racinos, Rhode Island, Slot routes, Sports, Steve Wynn, Taxes, The Strip, Tribal, West Virginia | 1 Comment

Quote of the Day

Posted on December 2, 2015 by David McKee

450px-Cosmopolitan_from_Las_Vegas_Blvd“This contract is an example of when multiple parties have a vested interest in the outcome, lives can be changed.” — Cosmopolitan of Las Vegas CEO William McBeath, announcing the consummation of a four-year labor pact with the Culinary Union. The generous terms of the agreement are a testimony to the cooperative spirit of owners Blackstone Group and the tenacity of the union, which hung in there for five years without a contract.

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The ubiquitous Packer; The 27% solution

Posted on December 2, 2015 by David McKee

James Packer has already missed his 2015 deadline for breaking ground on Alon and once again he is taking his eye off the Las Vegas ball. He and his Nobu co-investor, Robert DeNiro, have cut a deal with James PackerAntigua and Barbuda to build a $250 million casino on the site of the defunct K Club Hotel. The pact didn’t sit well with some lawmakers, who took exception to a 25-year tax exemption granted to Packer (a “george” agreement by any measure).

“What the government is doing and the way they are proceeding is wrong,” groused Sen. Harold Lovell. The casino resort will include 40 private bungalows, each with its own pool. Opponents say that the terms of the agreement Continue reading →

Posted in Colorado, Dan Gilbert, Economy, Full House Resorts, International, James Packer, Kentucky, MGM Mirage, Politics, Racinos, Riviera, The Strip | Comments Off on The ubiquitous Packer; The 27% solution

Holiday season in Vegas

Posted on December 2, 2015 by David McKee

An extended Thanksgiving Day weekend allowed my wife and I to partake of some random Sin City fare — helped greatly by her superior Downtown Grandcomp-getting abilities. Last Sunday, we spent the night at the Downtown Grand (not our first stay there). This time we were put in one of the smaller rooms, in the Casino Tower. Even having what I would imagine is a typical tourist experience is still greatly superior to The Linq, the most overhyped “new” hotel in town. (I actually turned down a free room night at The Linq, our first stay there having been so underwhelming.) The beds are so comfy-cozy that I must confess to dozing off while listening to my audiobook of War and Peace.

Breakfast at S+O was scrumptious — try the corned-beef hash — as had been an excellent dinner at Continue reading →

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Bad news for Atlantic City; Finally, a ‘Carcieri fix’

Posted on December 1, 2015 by David McKee

Just when you thought the Atlantic City market had rightsized and the Boardwalk was out of the woods, here comes Moody’s Investors Service with a baleful report. Pointing to in-progress casino CaesarsBallysACexpansion in several neighboring East Coast states, Moody’s predicts that Atlantic City is in for another round of casino closures. It makes no firm predictions but the ones it identifies as “already on the brink” contain one surprise — Caesars Atlantic City — and two sad sacks, Trump Taj Mahal and Bally’s Atlantic City. It is no coincidence that all three are in Chapter 11. (The bad news for Atlantic City comes with a silver lining for the manufacturing sector, which is expected to be called upon to supply 90,000 new slots to adjoining states by 2019.)

“As the number of casinos shrink, some of the remaining casinos have seen revenues increase. But we expect increased competition will keep the heat on incumbents, and that number of casinos in Atlantic City will likely Continue reading →

Posted in Atlantic City, Economy, Glenn Straub, Harrah's, Internet gambling, Regulation, Revel, Technology, Tourism, Tribal, Trump Entertainment Resorts, TV, Wall Street | Comments Off on Bad news for Atlantic City; Finally, a ‘Carcieri fix’

Caesars gets the boot; Impatience in New York

Posted on December 1, 2015 by David McKee

Lawyers for Caesars Entertainment will be burning a little extra midnight oil after they lost a case that will enable the National Retirement Fund to kick Caesars — its largest donor — out of the caesars-palace-02fund. That makes Caesars liable for $364 million in pension obligations over a 20-year period, plus a fine for leaving fund early. Caesars spokesmen say the company has no intention of quitting the NRF ahead of schedule, is up to date on its obligations and the parent company would be pushed closer to bankruptcy. NRF attorneys scoffed at those arguments, pointing to Caesars’ $2.1 billion asset base and billion-plus market capitalization.

The NRF’s indignation is somewhat forced, though. It’s underfunded and is having to Continue reading →

Posted in California, Election, Foxwoods, Harrah's, history, Internet gambling, Mississippi, Mohegan Sun, New York, Pennsylvania, Regulation, Technology, Tribal | Comments Off on Caesars gets the boot; Impatience in New York

Quote of the Day

Posted on December 1, 2015 by David McKee

“It’s no secret that for a long time the rumor was we were going to
get [only] 150 tables. Were we flipping out? Of course we were flipping out. But we never went out publicly. There’s no arguing with City Hall. There’s no arguing with the government. There’s only begging and lobbying and more begging.” — Lawrence Ho, one of an increasingly antsy group of casino owners in Macao. In the end, he got 250 tables.

Posted in Lawrence Ho, Macau, Regulation | Comments Off on Quote of the Day

No Great Pumpkin for Las Vegas; Further woe for Macao

Posted on December 1, 2015 by David McKee

It was Las Vegas Strip casinos’ bad luck to have Oct. 31 fall on a Saturday, meaning that revenues (particularly from slots) from that weekend won’t be reported until the end of November. Consequently, Strip Miragerevenues fell 5% in October, grossing $494 million. Still, “volume trends were largely in line with our estimates,” wrote Deutsche Bank analyst Carlo Santarelli, including a 9% drop in the volume of baccarat play (compounded by a 19.5% decrease in winnings) and a 3% increase in all other table game play, which failed to stave off a 10.5% drop in winnings. (Interestingly, “card games” — i.e., poker — are now being folded into table game results.) JP Morgan analyst Joseph Greff added that “we expect the market to Continue reading →

Posted in Boulder Strip, Dan Gilbert, Detroit, Dining, Downtown, Economy, Galaxy Entertainment, Lake Tahoe, Laughlin, Law enforcement, Macau, Maryland, Melco Crown Entertainment, MGM Mirage, North Las Vegas, Reno, Sheldon Adelson, Stanley Ho, Steve Wynn, Wall Street | 1 Comment

Resolution at Revel; MGM turns up the heat on Connecticut

Posted on November 27, 2015 by David McKee

Our long Revel nightmare is at least partially over, now that Glenn Straub has a deal in place to buy the disputed ACR Energy Revel_lobbypatio_PANOPartners power plant. While ACR pays $15 million to placate bondholders, Straub gets the plant for $30 million, theoretically putting to an end a number of pressing issues of how he was going to keep Revel heated and alight through the winter. It also ends worries that Bank of New York Mellon was going to foreclose on the plant … although there always seems to be another shoe about to drop where Revel is concerned. Let’s see if Straub can now move on to honing a new vision for the property without any additional footwear hitting the floor.

* Here’s a bad idea that didn’t make it through the Nevada Lege in 2015 but just give it a couple of years: “The Brownstein Hyatt Farber Schreck law firm has proposed a new regulation that would Continue reading →

Posted in Atlantic City, Eldorado Resorts, Foxwoods, Glenn Straub, Massachusetts, MGM Mirage, Mohegan Sun, Ohio, Politics, Racinos, Regulation, Reno, Revel, Wall Street | 1 Comment

Quote of the Day

Posted on November 27, 2015 by David McKee

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

Atlantic City casinos make less, profit more

Posted on November 24, 2015 by David McKee

In a paradoxical development, Atlantic City casinos reported a 61% increase in profitability in Q315. That largesse came even as gross trump-taj mahagaming revenues only rose 5%. Cost-containment is credited with being the source of the bounty. Caesars Interactive swung from a loss to a profit, while Resorts Digital did the reverse. In addition to climbing the ladder of Boardwalk casinos, Resorts Atlantic City grew profits by 80%. Weirdest of all, even as it fell into last place in revenue, Trump Taj Mahal reported a profit increase 182%, some of that clearly made by then-CEO Bob Griffin off the backs of his workforce, whom he has screwed over royally.

While the casino industry can bask in a moment of prosperity, there’s no such relief down at Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Dan Gilbert, Economy, Election, Glenn Straub, Harrah's, Indiana, International, Internet gambling, Massachusetts, MGM Mirage, Mohegan Sun, Ohio, Politics, Revel, Sheldon Adelson, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Atlantic City casinos make less, profit more

DFS sued again; Penn disappoints, MGM excels

Posted on November 24, 2015 by David McKee

A Florida attorney seems to have found the soft underbelly of the daily fantasy sports industry: its investors. Ervin Gonzales, representing two Sunshine State punters, has filed a class-action lawsuit that names among its defendants all the major sporting leagues, Jerry Jones, Robert Kraft, JP Morgan Bank, PayPal, Capitol One (“Who’s in your lineup?”) and so forth. All are accused of illegal gambling, and the plaintiffs allege that “DFS sites acted in a deceptive manner by luring average players into competition with industry employees who had access to insider information.” At the very least, this could make payment processors skittish about providing DFS-related services.

DraftKings has lawyered up in New York with some high-powered legal talent, namely Continue reading →

Posted in Florida, Internet gambling, Law enforcement, Massachusetts, MGM Mirage, Penn National, Regulation, Sports | Comments Off on DFS sued again; Penn disappoints, MGM excels

Quote of the Day

Posted on November 24, 2015 by David McKee

“They may have to give up daily games and be limited to real athletic events that take place on at least two days.  And they will certainly be required to be regulated. But there is too much money at stake to see daily fantasy sports disappear any time soon.” — gaming-law expert I. Nelson Rose on the future of DFS.

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The dark side of DFS; Wynn delay provokes caution

Posted on November 23, 2015 by David McKee

Daily fantasy sports backlash has claimed its first casualty. Relatively minor site TradeSports.com has gone out of business. “Recent negative events in the industry have already increased our costs of Draft Kingsoperating (and will most likely continue to do so); or perhaps even prevent operations all-together. Put simply: We aren’t making enough money,” TradeSports told the Wall Street Journal. This closure comes at a time when Georgia, Maryland, Rhode Island and Ohio are joining the pileup of states looking into the propriety of DFS. Even DraftKings is said to be lowering its profile, trying to cut back on its advertising: “We are always in dialogue with [our partner teams], including now.” I’d say especially now.

Better news for Boston-based DraftKings came in the form of Massachusetts Attorney General Maura Healey‘s proposed consumer protections for the industry. These ranged from limiting Continue reading →

Posted in Economy, Internet gambling, Macau, Massachusetts, Problem gambling, Regulation, Steve Wynn, Wall Street | Comments Off on The dark side of DFS; Wynn delay provokes caution

Quote of the Day

Posted on November 23, 2015 by David McKee

Trump“The candidate does not appear to have any commitment to accuracy.” — University of California climate scientist Emmanuel Vincent, assessing the validity of Donald Trump‘s pronouncements on science in a blind study. Trump? Untethered to veracity? Perish the thought!

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

Rick Scott screws the Seminoles; Internet gaming advances in Pennsylvania

Posted on November 20, 2015 by David McKee

By the this point in time it’s pretty clear that Florida Gov. Rick Scott (R) has been negotiating in bad faith with the Seminole Tribe. He’s had five years to come up with a new compact regarding Rick_Scott1the tribe’s blackjack games — and failed miserably. Not even a Seminole offer to up revenue-sharing from $1 billion over five years to $3 billion over seven was good enough for Governor Rick. Even so, he’s trying to have the federal courts both dismiss a suit against him for bad-faith dickering and to enjoin the Seminoles from continuing to offer blackjack. Some gall.

The tribe wants to expand its casino arsenal to include craps and roulette, although if it can’t get an agreement on blackjack, what’s the hope of Continue reading →

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Runaway costs in Springfield; Lucky Dragon not so lucky

Posted on November 20, 2015 by David McKee

MGM Springfield is turning into the worst of both worlds. Not only has the ‘wow’ factor been subtracted (“really the least interesting part of our project,” one exec contended), with the result that the casino-hotel looks more like a bank than a resort, but it will now cost $950 million — a 19% budget increase. MGM Resorts International execs moved quickly to stanch the PR bleeding, with

mgmPresident William Hornbuckle admitting, “No, we’re not changing this into a mall. No, we’re not upping and running … I wish it didn’t cost that amount. I wish we could do it for less. But we will honor our commitments.” Project prexy Michael Mathis added, “We are committed to this city. In fact, we are now $150 million more committed.” Or $150 million deeper into the swamp. MGM has severely downsized the project yet the cost continues Continue reading →

Posted in Architecture, California, Culinary Union, Downtown, Entertainment, Lucky Dragon, Massachusetts, MGM Mirage, Regulation, Taxes, Transportation | Comments Off on Runaway costs in Springfield; Lucky Dragon not so lucky

Tribes 1, NLRB 0; DFS on the rampage

Posted on November 18, 2015 by David McKee

In a big setback for Big Labor, the House of Representatives voted to exempt tribal casinos from National Labor Relations Board oversight. This turns back 11 years of precedent, stemming Capitol-Hillfrom a 2004 NLRB ruling that San Manuel Indian Bingo & Casino fell under federal jurisdiction. The NLRB asserted, according to Reuters, “it can intervene in a tribe’s labor practices when the tribal business is commercial rather than governmental and both employs and caters to non-Native Americans.” The agency has employed this rationale sparingly — only four times in 11 years.

However, “Tribal leaders have repeatedly spoken out against this overreach, and Congress has listened,” said Continue reading →

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