Quote of the Day

Posted on November 12, 2015 by David McKee

slot machine“I hate slots. It’s all up to luck. It’s boring, and I can’t control what happens. The only time I would ever even consider playing is to pretend I am so I could score free drinks.” — Arizona State University student Philip Smith, demonstrating the mindset of the millennial gambler casinos have to win over to electronic games.

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Tohono O’odham win again; Union tackles REIT craze

Posted on November 12, 2015 by David McKee

Forces opposed to the Tohono O’odham Nation‘s attempts to build a casino (due to open Dec. 20) suffered yet another defeat — the Tohono casino18th, by the tribe’s count — when the Ninth Circuit Court of Appeals tossed out a particularly odious piece of Arizona legislation. HB 2534 would have empowered Glendale to annex the Tohono O’odham‘s adjoining land and confiscate the casino. It’s amazing how little the establishment’s mentality toward Native Americans has changed since the 19th century.

Acting on permission from Congress under the 1986 Gila Bend Indian Reservation Lands Replacement Act, the tribe bought Continue reading →

Posted in Ameristar, Arizona, GLPI, Indiana, Mississippi, Missouri, Penn National, Pinnacle Entertainment, Regulation, Tribal | Comments Off on Tohono O’odham win again; Union tackles REIT craze

Same old same-old at Trump; F-blew finally up for sale

Posted on November 12, 2015 by David McKee

Perhaps the biggest question surrounding Trump Taj Mahal is whether, when Carl Icahn takes over, the management team he has publicly upbraided will get to keep their jobs, especially since Uncle trump-taj mahaCarl has perfectly competent people taking care of business over at the Tropicana Atlantic City. In an old-wine-in-new-bottles move, lead Trump Entertainment Resorts [sic] investor Marc Lasry has promoted Taj General Manager Mike Mellon as CEO. Like his predecessor, Bob Griffin, who retired last month in a fit of pique, Mellon was dredged up from the depths of Mountaineer Gaming, before the latter was bought out by Eldorado Resorts.

Don’t expect anything but the same losing ways. “I look forward to the opportunity to emerge from bankruptcy,” Mellon said, “and continue Continue reading →

Posted in Atlantic City, Carl Icahn, Economy, Eldorado Resorts, Fontainebleau, Genting, Massachusetts, Penn National, The Strip, Trump Entertainment Resorts | 2 Comments

Phil Ruffin, International Man of Mystery; Another day, another DFS probe

Posted on November 12, 2015 by David McKee

So now we know where those The Mirage-is-for-sale rumors were coming from. Seems that the place really was not for sale, although ruffinPhil Ruffin wished it was, to the tune of $1.3 billion. And, as badly as MGM Resorts International could use the cash to deleverage, CEO Jim Murren nixed Ruffin’s offer. It’s not the first time Murren has indicated it would take some super-lucrative offer (to the tune of 15X cash flow or so) to make him part ways with Steve Wynn‘s precedent-shattering megaresort.

The deal would have made a lot of sense for Ruffin, whose Treasure Island is umbilically connected to The Mirage and could use the Continue reading →

Posted in Atlantic City, Donald Trump, GLPI, Internet gambling, Macau, MGM Mirage, Phil Ruffin, Politics, Regulation, Sports, Stanley Ho, The Strip, Wall Street | Comments Off on Phil Ruffin, International Man of Mystery; Another day, another DFS probe

Catastrophe for DFS; Strong month for Missouri

Posted on November 11, 2015 by David McKee

Daily fantasy sports’ house of cards continued to topple yesterday when New York Attorney General Eric Schneiderman ordered FanDuel and DraftKings to cease and desist from taking bets in the Empire State, home to 500,000 DFS players. According to Schneidermanthe New York Times, Schneiderman has determined that DFS is flat-out illegal under New York State law. “It is clear that DraftKings and FanDuel are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: Not in New York and not on my watch,” Schneiderman said.

The attorney general’s office investigated DFS in the wake of the Ethan Haskell insider-dealing scandal and determined that “top 1 percent of DraftKings winners receive the vast majority of the winnings.” It also held that ads “seriously mislead New York citizens about their prospects of winning.” To make matters worse, the National Council on Problem Gambling is reporting “severe gambling problems” in connection with DFS.

According to the Times, the sites have themselves at least somewhat themselves to blame by Continue reading →

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Quote of the Day

Posted on November 10, 2015 by David McKee

“I think if you classify it as gambling and you try to regulate it in the same fashion as online gambling, the industry ceases to exist. The model that exists today cannot exist under the kind of proposals that I’ve seen.” — Eilers Research Managing Director Adam Krejcik on regulation of daily fantasy sports.

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SLS gets new patron; Mixed quarter at Caesars

Posted on November 10, 2015 by David McKee

Revolving doors continue to spin, metaphorically, at SLS Las Vegas. No sooner had Hilton Worldwide dropped the property SLSfrom its Curio brand but Starwood Resorts Worldwide picked up part of the property and slapped its W hotel escutcheon on it. The northeast tower — the only one with “a dedicated entry and reception area for W Hotel guests” will fly the W flag and be managed by Starwood, while SLS Las Vegas President Scott Kreeger rides herd on the other two towers. (Throw in SLS‘ continuing role in running its restaurants and you have a stateroom scene as crowded as in a Marx Brothers movie.)

While owner Stockbridge Capital Partners yields the cream of SLS’ business to Starwood, it gets juiced into Continue reading →

Posted in Harrah's, International, Macau, Marketing, Maryland, Regulation, Sam Nazarian, SLS Las Vegas, Station Casinos, Technology, The Strip | 1 Comment

The woes of Scientific Games

Posted on November 10, 2015 by David McKee

Having devoured seemingly half the manufacturing sector, Scientific Games is having some digestion problems. J.P. Morgan analyst Joseph Greff came off the 3Q15 conference call Wall-streetand promptly halved his price target for the stock “given SGMS’s high operating and financial leverage … we remain Neutral until we gain increased confidence in planned post-Bally Technology–related acquisition costs cuts and synergies translating into stronger free cash flow conversion.”

Scientific missed Wall Street‘s consensus for its cash flow, which it blamed on one of its customers postponing an order from 3Q15 to 4Q15. An eroding installed-slot base didn’t help either, “down 1,751 units year over year.” This is the consequence of seven straight quarters of Continue reading →

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Big month for Maryland; Much ado about Dotty’s

Posted on November 9, 2015 by David McKee

Developers of MGM National Harbor have to like what they saw when Maryland busted out its October revenue numbers: 9% Harrahs Baltimoregrowth (to $95 million), with all five casinos in the plus column. Horseshoe Baltimore General Manager Chad Barnhill is defecting to co-owner Dan Gilbert‘s Cincinnati casino but he leaves on an up note, with the ‘Shoe increasing revenues 10% ($25 million). Even that couldn’t put a dent in Maryland Live, which saw a 9% increase and $55 million in revenue.

The smaller casinos all performed well, with only the 2% increase (for $6 million) at Continue reading →

Posted in Cordish Co., Dan Gilbert, Dotty's, Golden Gaming, Harrah's, Internet gambling, Maryland, MGM Mirage, Penn National, Pennsylvania, Politics, Racinos, Sheldon Adelson, TV | 1 Comment

Caesars exiting Ohio with head held high; New Showboat setback

Posted on November 9, 2015 by David McKee

Caesars Entertainment may have gotten the boot from its three managerial arrangements with Dan Gilbert in Ohio but it’s spending the waning weeks of its tenure putting up impressive cincinnatcasinonumbers. Horseshoe Cleveland ($18 million) was up 4% and Horseshoe Cincinnati had a resounding, 14% million increase, taking $16 million to the bank. The only property where Caesars couldn’t work its magic was ThistleDown Racino ($9 million), down another 8%. Gilbert is reported to be sinking another $70 million into the racino to make it competitive with Hard Rock Rocksino — $17 million, up 12% — but that seems like a real stretch. Total Rewards is on the way out but members can redeem point accrued up to this point at other Caesars properties. Future point accruals will only redeemable at other Rock Gaming properties, like Greektown Hotel-Casino in Detroit.

Although Pinnacle Entertainment‘s Belterra Park continued to bring up the rear in Ohio ($6 million, $148/slot/day), the racino made a Continue reading →

Posted in Atlantic City, Dan Gilbert, Detroit, Eldorado Resorts, Glenn Straub, Harrah's, Marketing, Penn National, Pinnacle Entertainment, Politics, Racinos, Taxes | Comments Off on Caesars exiting Ohio with head held high; New Showboat setback

Hoosier stasis; Last-minute scramble in Connecticut

Posted on November 9, 2015 by David McKee

Gaming revenues in Indiana were even with 2014 last month, as Hoosier State casinos pulled in $186 million. Foot traffic was down 9% and per-player spend rose 11%. So you’ve got fewer but bigger-spending gambleAmeristar East Chicagors: Is that a good thing or not? An upward trend at Ameristar East Chicago was blunted with a 2% and Pinnacle Entertainment seems to be robbing Peter to pay Paul in the southern Indiana/Ohio region. Revenues at Ohio-based Belterra Park have been improving but original-recipe Belterra is down 6%.

The other headline-worthy item was a 14% surge in winnings at French Lick Resort. Despite a 1% dip, Horseshoe Hammond continued to dominate the state with Continue reading →

Posted in Boyd Gaming, Foxwoods, Full House Resorts, Harrah's, Indiana, Mohegan Sun, Ohio, Penn National, Pinnacle Entertainment, Racinos | Comments Off on Hoosier stasis; Last-minute scramble in Connecticut

Quote of the Day

Posted on November 9, 2015 by David McKee

steve-wynn-1“I don’t think either one of them has been at their best on this one. But, you know, they’re big boys. They can do their own business.” — Massachusetts Gaming Commission Chairman Stephen Crosby on the feud between Steve Wynn and Boston Mayor Martin Walsh.

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As the Showboat turns

Posted on November 6, 2015 by David McKee

Will the Showboat have a new owner (Bart Blatstein) on Monday? Only its hairdresser knows for sure. Will Caesars Entertainment‘s removal of its gaming entitlement trump (pardon the pun) Trump Showboat_Atlantic_CityEntertainment Resorts CEO (and civic villain) Bob Griffin‘s mandate that it be run as a hotel-casino or nothing? Will mercurial Glenn Straub find a way to contest the sale to Blatstein despite having no legal standing in the matter? Will he be able to siphon heat and electricity from the Showboat to power Revel? Continuing his scorched-earth campaign in re the Showboat, Straub threatened “It’s ours. There’s nobody that’s going to get title to it.”

Tune in Monday for the next exciting episode.

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

New blows to Adelson, SLS; Seminoles’ air war

Posted on November 6, 2015 by David McKee

Ex-Sands China CEO Steven Jacobs‘ wrongful-termination case will still proceed under the gavel of Judge Elizabeth Gonzalez. The Nevada Supreme Court, in an unpublished opinion, reaffirmed AdelsonGonzalez’s standing in the case and also ordered Las Vegas Sands to pony up the $250,000 it owes to charity, a penalty incurred after it was found hiding evidence from Clark County District Court. Although it has not formally gone to trial yet, Sands has been losing one preliminary bout after another. This prompted it to scapegoat Judge Gonzalez, writing to the Supremes that its courtroom losses “continue to evidence this jurist’s bias and hostility toward defendants and further calls into question her ability to preside over this case as an impartial judicial officer.”

What remains unresolved is the issue of jurisdiction. Sands wants Continue reading →

Posted in Florida, Indiana, Internet gambling, Macau, Politics, Regulation, Sam Nazarian, Seminole Tribe, Sheldon Adelson, SLS Las Vegas, Taxes, The Strip, TV | Comments Off on New blows to Adelson, SLS; Seminoles’ air war

Bluhm thinks big in Massachusetts; Cautious optimism in Illinois

Posted on November 6, 2015 by David McKee

Never accuse Neil Bluhm of thinking small. His Mass Gaming & Entertainment has published some eye-popping projections as part of a 200-page casino application to the State of neil-bluhmMassachusetts. Despite nearby competition from Plainridge and Rhode Island, Bluhm is projecting four million customers a year and an average of $400 million in revenue (plus $60 million a year in non-gaming dollars) for his $677 million project. It will be a red-brick structure reflecting “conservative New England architecture,” containing 2,100 slot machines and nearly 125 table games. The amenities will include a 250-room hotel.

Bluhm predicts a 1,400-man construction workforce and a casino workforce of 1,500. A strategic location between Boston and Cape Cod is supposed to be the magic ingredient that Continue reading →

Posted in Architecture, Boyd Gaming, GLPI, Harrah's, Illinois, Internet gambling, Massachusetts, MGM Mirage, Neil Bluhm, Penn National, Politics, Regulation, Tribal | Comments Off on Bluhm thinks big in Massachusetts; Cautious optimism in Illinois

Quote of the Day

Posted on November 6, 2015 by David McKee

Circus Reno“We will show some love to the clown.” — Eldorado Resorts‘ CEO Gary Carano, promising to bring the Reno iteration of Circus Circus into the 21st century. Eldorado will also rebrand and add a Hampton Inn to its Scioto Downs racino in Ohio.

Posted in Current, Eldorado Resorts, Ohio, Racinos, Reno | Comments Off on Quote of the Day

Packer on the move in Vegas; Impending strike in Detroit?

Posted on November 4, 2015 by David McKee

Formally speaking, Alon hasn’t broken ground but that hasn’t stopped James Packer‘s bulldozers and backhoes from moving earth around at the site of the planned megaresort, as well as james_packerleveling some of the landscaping Steve Wynn paid for to conceal the empty land. So can we move this into the “in progress” category? (That’s more than can be said for dormant Resorts World Las Vegas.) CEO Andrew Pascal has taken a vow of silence on the project until “early next year,” when details — it is promised — will be revealed.

While the exact appearance of the resort remains under wraps, Vegas Inc. obtained some specifics of the Alon-to-be, which will have Continue reading →

Posted in Architecture, Carl Icahn, Dan Gilbert, Detroit, Fontainebleau, Genting, James Packer, MGM Mirage, SLS Las Vegas, Steve Wynn, The Strip | Comments Off on Packer on the move in Vegas; Impending strike in Detroit?

Georgia on their minds; DFS regulation gathers speed

Posted on November 4, 2015 by David McKee

There’s a new suitor in the crowd of casino companies eager to extend their brands into Georgia: the Seminole Tribe. It wants to build a Hard Rock International casino in 2018, opposite Mercedes-Benz Stadium, where the Atlanta Falcons will play. Hard Rock CEO James Allen said the company would build the Georgia flaghotel even without gambling but “Hard Rock could be your solution.” Whoever gets the primary Atlanta license had better bring a big checkbook: The proposed license fee is $1 billion, while the five other casinos would only require $200 million upfront.

Reported the Atlanta Journal-Constitution, “The companies have made an effort to sell themselves as legitimate and transparent businesses that welcome robust regulations,” and won’t require Continue reading →

Posted in Atlantic City, Boyd Gaming, Georgia, Hard Rock International, Illinois, Internet gambling, Minnesota, New York, Problem gambling, Regulation, Seminole Tribe, Taxes | Comments Off on Georgia on their minds; DFS regulation gathers speed

Straub has new plan for Revel; Station cans Cactus Lane casino

Posted on November 4, 2015 by David McKee

Glenn Straub can’t even heat Revel but he’s got his sights on becoming Atlantic City‘s biggest slumlord. The ever-unpredictable billionaire’s latest plan for the megaresort is to use it to house Syrian refugees. However, this homeless-hostel offer is good for only so long as it takes Straub to hash out a long-term strategy for Revel.

Straub has no shortage of ideas for Atlantic City but they’re scattershot and seemingly whimsical. For instance, flying in VIP players via 25 jets from airports in the eastern U.S. hardly seems to Continue reading →

Posted in Atlantic City, Glenn Straub, Internet gambling, Michael Gaughan, Regulation, Reno, Revel, Sports, Station Casinos, Taxes, The Strip, Westgate LV | Comments Off on Straub has new plan for Revel; Station cans Cactus Lane casino

Quote of the Day

Posted on November 3, 2015 by David McKee

Lawrence_Ho_Melco“There’s no arguing with City Hall. There’s no arguing with the government. There’s only begging and lobbying and more begging.” — Melco Crown Entertainment Co-Chairman Lawrence Ho on doing business in Macao.

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