Scott, Seminoles make a deal; Reid does Caesars’ bidding

Posted on December 8, 2015 by David McKee

Just things were threatening to get ugly between the Seminole Tribe and the State of Florida, Gov. Rick Scott (R) has emerged from the cone of rick-scottsilence to disclose a new, $3 billion revenue-sharing agreement with the Seminoles. The pact, which must still garner the approval of the Florida Lege, would run for seven years, preserve Seminole blackjack and permit the addition of craps and roulette. The Seminoles appear to have gotten everything they wanted but they made a few concessions, too, including capping slots and tables at 3,000 and 150 respectively per casino.

The Associated Press reports, “The deal also allows for the addition of slot machines at the Palm Beach Kennel Club and also leaves an opening for another casino in Miami-Dade as well as create a path for existing tracks in that county and Broward to eventually add blackjack tables as well.” Could that additional Miami-Dade casino be Continue reading →

Posted in Genting, Harrah's, Harry Reid, Internet gambling, Politics, Regulation, Seminole Tribe, Taxes, Tribal | Comments Off on Scott, Seminoles make a deal; Reid does Caesars’ bidding

Indiana: Visiting less, spending more

Posted on December 8, 2015 by David McKee

That’s the verdict of Deutsche Bank analyst Carlo Santarelli, who reports that foot traffic at Indiana casinos was 11% down last month, implying a 7% spending increase. If free play is counted, casino revenues fell 5%, with the Hollywood Lawrenceburgsouthern tier of properties having the worst of it (-8.5%). Only Full House Resorts‘ Rising Sun ($4 million) stood off Ohio competition, growing revenues 12% ($13 million). At the opposite end of the spectrum was Penn National Gaming‘s Hollywood Casino Lawrenceburg ($13 million), down 16%. Belterra ($8 million) slipped 5%, while Horseshoe Southern Indiana ($20 million) took an 8.5% dive. Slot routes in Illinois may be cutting into business at reliable old Casino Tropicana ($10 million), in Evansville, which had a rare, 5% decrease.

Further upstate, French Lick Casino ($6 million) had a good month, up 10%, while Continue reading →

Posted in Ameristar, Boyd Gaming, Full House Resorts, Harrah's, Illinois, Indiana, Penn National, Pinnacle Entertainment, Racinos, Slot routes, Tropicana Entertainment, Wall Street | 1 Comment

Quote of the Day

Posted on December 8, 2015 by David McKee

“A government that can shut down mosques simply because they are mosques can shut down Bible studies because they are Bible studies. A trump_gold_ap_328government that can close the borders to all Muslims simply on the basis of their religious belief can do the same thing for evangelical Christians. A government that issues ID badges for Muslims simply because they are Muslims can, in the fullness of time, demand the same for Christians because we are Christians.” — Southern Baptist Ethics & Religious Liberty Commission President Russell D. Moore on Donald Trump‘s latest brainstorm.

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Crisis point in Atlantic City; Alabama casino bill abandoned

Posted on December 7, 2015 by David McKee

Atlantic City‘s immediate future is teetering over whether it can persuade Boyd Gaming and MGM Resorts International to parcel a $161 million tax refund over an extended period of time. If not, warns Mayor Don Guardian (R), the city will go bankrupt by the end of March. Nobody’s saying Borgata isn’t rightly owed the money … but do Boyd and MGM want to be known as the companies that tipped the Boardwalk into insolvency?

* Phhhht. That’s the sound of pro-casino legislation fizzling in Alabama, where Senate Majority Leader Del Marsh (R) has aborted his own bill to create a gaming commission and legalize Continue reading →

Posted in Alabama, Atlantic City, Boyd Gaming, Dining, Harrah's, Internet gambling, MGM Mirage, Politics, Regulation, Steve Wynn, The Strip | Comments Off on Crisis point in Atlantic City; Alabama casino bill abandoned

Ohio: Caesars effects a turnaround; Heightened scrutiny for MGM Springfield

Posted on December 7, 2015 by David McKee

Although it’s got one foot out the door in Ohio, the management half of Rock Gaming Caesars, i.e.,  Caesars Entertainment, is starting to shore up the recent decline of its casinos in the Buckeye State. Horseshoe Cincinnati and horseshoeHorseshoe Cleveland both inched past Hard Rock Rocksino by the tiniest of margins. ThistleDown Racetrack, however, seems a lost cause — pending Dan Gilbert‘s upcoming $70 million capex infusion — grossing only $8 million. Hollywood Columbus, however, put everyone in the shade with a $17 million gross (+3%), even when averaging only $173/slot/day. Despite doing an industry-average $196/slot/month, Hollywood Toledo grossed just $14 million.

Horseshoe Cincinnati grossed $16.5 million (+4.5%), with Horseshoe Cleveland (+1.5%) just behind and Hard Rock Rocksino a decimal point behind the Cleveland ‘Shoe, despite a Continue reading →

Posted in Architecture, Dan Gilbert, Economy, Eldorado Resorts, Hard Rock International, Harrah's, Massachusetts, MGM Mirage, Mohegan Sun, Penn National, Pinnacle Entertainment, Racinos, Regulation, Rhode Island | Comments Off on Ohio: Caesars effects a turnaround; Heightened scrutiny for MGM Springfield

Continued erosion in Illinois

Posted on December 7, 2015 by David McKee

Illinois gamblers visited measurably less (-8%) and spent slightly more (+3%), as casino business in the Land of Lincoln took a 5% dip in November. HarrahsJolietThe calendar had one less weekend day than last year, which surely didn’t help. Even the top grossing ($33 million) Rivers Casino wasn’t immune, with a 3% slippage. The novelty factor has definitely worn off Harrah’s Metropolis, down 18% ($6.5 million). Boyd Gaming didn’t do so hot either, falling 13% at Par-A-Dice ($6.5 million). By contrast, MGM Resorts International was off only 2% at Grand Victoria ($13 million), in Elgin.

Penn National Gaming had the one gainer in the state, Continue reading →

Posted in Boyd Gaming, Economy, GLPI, Harrah's, Illinois, MGM Mirage, Movies, Neil Bluhm, Penn National | 1 Comment

Quote of the Day

Posted on December 4, 2015 by David McKee

“The responsibility for everything that takes place upon a property [is on] the owners of that property — regardless of whether it’s regulated by a specific code or not. It is perhaps prudent that they consider what transpired.” — Clark County Department of Building & Fire Prevention Director Ron Lynn on the fake plants at The Cosmopolitan of Las Vegas, which flunked indoor fire-resistance tests (the plants, not the Cosmo). Although there are no Clark County regulations governing such materials, the Cosmo is removing all fake foliage and expects to be finished in early 2016.

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Straub’s plans evolve; Martin Walsh, loser

Posted on December 4, 2015 by David McKee

Remember, you read it here first. Glenn Straub intends to sublicense the casino portion of Revel to an outside operator. It will have to be a company with a high tolerance for risk, as Straub is Revel_1340insisting on a 30-year lease. The tycoon feels that, with the energy-plant issues finally resolved, it will be easier to find a casino operator. “It’s not going to be the old Revel. But now we can talk to casino operators and tell them we’re interested in a 30-year lease,” Straub said. Any takers?

In the meantime, Straub is trying to evict Revel’s remaining tenants, a seemingly perverse fixation which seems Continue reading →

Posted in Atlantic City, Economy, Glenn Straub, Macau, Marketing, Massachusetts, Melco Crown Entertainment, Politics, Regulation, Revel, Steve Wynn | Comments Off on Straub’s plans evolve; Martin Walsh, loser

Message from the AGA

Posted on December 3, 2015 by David McKee

Posted in Animals, Geoff Freeman, Law enforcement | Comments Off on Message from the AGA

‘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