Quote of the Day

Posted on October 16, 2015 by David McKee

“When you legalize a form of gambling, the state looks around, finds out what the highest rate is in the country, and then goes higher.” gaming-law expert I. Nelson Rose on what the daily fantasy sports industry should be prepared to expect.

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Steve Wynn’s an unhappy camper

Posted on October 16, 2015 by David McKee

A decade ago, Steve Wynn would badmouth doing business in Nevada and warble sweet hymns to that capitalist’s paradise, China. How times change. On yesterday’s quarterly earnings call, Wynn was apoplectic about the Chinese government’s shifting Wynn on Foxpolicies in re Macao. “In my 45 years of experience, I’ve never seen anything like this before,” Wynn complained, expressing skepticism about the government’s promise of “supportive” — but undisclosed — new measures for the casino industry. Wynn’s dander was up, calling Peking‘s policy “ludicrous,” and his stock price down — dipping 7.5% over the course of the call, which disclosed a 32% revenue decline at Wynn Macau and Encore Macau. The company still managed to eke out a $74 million profit.

Wall Street analysts expected over $1 billion in earnings from Wynn Resorts and it ‘only’ delivered Continue reading →

Posted in Economy, Galaxy Entertainment, International, Lawrence Ho, Macau, Marketing, Melco Crown Entertainment, MGM Mirage, Regulation, Steve Wynn, The Strip, Wall Street | 4 Comments

DFS banned in Nevada

Posted on October 16, 2015 by David McKee

Well … not exactly, but the roof came crashing in for DraftKings, FanDuel and their ilk yesterday when the Nevada Gaming Commission sent them a cease-and-desist order, instructing that daily fantasy sports pools quit taking action from Nevada-based Laxaltplayers until they (the sites) have Silver State gaming licenses. So, anybody with a 10% or greater state in a DFS site can prepare for the lawyerly equivalent of a body-cavity search or they can decide the Nevada market isn’t worth the trouble. (The prospect of going before the Nevada Gaming Control Board should cause some DFS sphincters to pucker.) The NGC’s decision was taken after Nevada Attorney General Adam Laxalt‘s office issued an opinion that DFS was gambling, not a contest of skill.

Licensed Nevada operators of sports pools were advised by the NGC to “exercise discretion in participating in business associations with D.F.S. operators that have not obtained Nevada gaming approvals.” Internet-gaming blogger Chris Grove called the decision Continue reading →

Posted in Foxwoods, Massachusetts, Mohegan Sun, Penn National, Regulation, Sports | Comments Off on DFS banned in Nevada

Fantastic month for Atlantic City; Gural gets his wish

Posted on October 15, 2015 by David McKee

As the window for apples-to-oranges comparisons of Atlantic City casino revenue closes, so does the gap between same-store and outright gross-gaming revenues. In September, casinos were up 10% Resortson a same-store basis (i.e., excluding the four closed ones from the comparison) and 9.5% higher on a straight up comparison. This is some of the best news the Boardwalk’s had in a while. A 17% increase in Internet play certainly didn’t hurt, contributing $12 million to the gross. Once Resorts Atlantic City integrates PokerStars into its offerings, its tail-end Charlie 8% market share will undoubtedly improve significantly, maybe even giving Borgata a run for its money.

Resorts has been operating for so long under the auspices of the Mohegan Tribal Gaming Authority that it comes as a jolt that only now has Continue reading →

Posted in Atlantic City, Boyd Gaming, Election, Harrah's, Internet gambling, Massachusetts, MGM Mirage, Mohegan Sun, New York, Penn National, PokerStars, Regulation, Rhode Island, Tilman Fertitta, Tourism, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Fantastic month for Atlantic City; Gural gets his wish

DFS rose fast, fell faster

Posted on October 15, 2015 by David McKee

This just in: Nevada has lowered the boom on DFS operators.

The fat’s in the fire for daily fantasy sports — and New Jersey might want to rethink its push for unregulated sports betting in the Garden As Deadline On Debt Reduction Impasse Looms, Super Committee Meets Over WeekendState. According to the New York Times and Wall Street Journal, the FBI is probing DraftKings. The Justice Department is said to be “trying to determine whether daily fantasy games are a form of gambling that falls outside the purview of the exemption” in UIGEA for ‘skill-based games.’ Both FanDuel and DraftKings are conducting their own, internal investigations and the latter went into a defensive crouch, stating, “It is entirely predictable that the government would follow up on the misleading reports about our industry.” In other words, when the news is bad, kill the messenger.

DraftKings executive Jon Aguiar seems to have helped draw federal scrutiny when he popped up on an Internet chat board to advise “players how to deposit funds and Continue reading →

Posted in Atlantic City, Geoff Freeman, International, Louisiana, New York, Regulation, Sheldon Adelson, Sports, Texas, TV | Comments Off on DFS rose fast, fell faster

Station goes public; Florida compact near?

Posted on October 14, 2015 by David McKee

Having tried and failed to grow the company through an LBO, Station Casinos is returning to the public markets again, citing “favorable economic and market fundamentals” in support of an IPO. An executive shakeup that included the promotion of Rich Haskins to president accompanied the IPO. The company is riding station1a long upward trend both in its own performance (17 consecutive quarters of improved cash flow) and in the Las Vegas economy. A sweetheart provision in the proposed IPO would see Station buy management entity Fertitta Entertainment for $460 million. (Station just can’t help its addiction to this stuff.) The company is still carrying $2 billion in long-term debt and it’s not clear that this IPO would create that much more flexibility.

However, Station has been in a prolonged period of inactivity in Nevada, while numerous capital projects remain on ‘hold.’ This proposed offering may be a signal that Station is ready to move again. The initial float is $100 million but Continue reading →

Posted in Atlantic City, Boyd Gaming, Economy, Florida, Fontainebleau, Horseracing, Internet gambling, New York, Pennsylvania, Politics, Seminole Tribe, Sheldon Adelson, SLS Las Vegas, Station Casinos, Steve Wynn, Wall Street | Comments Off on Station goes public; Florida compact near?

Fourth time the charm?; Paging Sheldon Adelson

Posted on October 14, 2015 by David McKee

Gaming-management company Foundation Gaming Group likes DiamondJacks Casino in Vicksburg, it’s buying the place Diamond Jacks Vicksburgoutright — a change of style for Foundation, which prefers running casinos to owning them. There may be some nostalgia in the decision by Foundation COO Les McMackin, a veteran of the Bernie Goldstein era at Isle of Capri Casinos, when DiamondJacks was an Isle-branded property. It was sold to Legends Gaming and went belly-up twice. The casino is currently owned by creditors.

Fortunately, in addition to running a casino in Bossier City, Foundation is something of a turnaround expert. It took over Resorts Casino & Hotel and Bally’s Casino & Hotel, both in Tunica, after Continue reading →

Posted in Colony Capital, Downtown, Genting, International, Isle of Capri, Louisiana, Mississippi, Sheldon Adelson, Technology, The Strip | 2 Comments

Quote of the Day

Posted on October 14, 2015 by David McKee

“I believe that UIGEA is the most overrated, misapprehended, misquoted and misunderstood Federal statute in gaming. It does not preempt state law and it does not prevent the state regulators and state law makers from making their own determinations as to whether fantasy sports, and in particular DFS, is legal or illegal. [UIGEA] is not a magic ticket that gets them to the promised land …” — Gaming attorney Daniel Wallach on the Unlawful Internet Gambling Enforcement Act loophole through which DFS has wriggled.

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Quote of the Day

Posted on October 13, 2015 by David McKee

“Mr. Trump says, ‘Make America great again.’ Well, the Trump workers say, ‘Start here.’” —Trump International Hotel employee Maria Elena Durazo, calling for unionization of the hotel at a rally attended by Hillary Rodham Clinton, as reported by the Las Vegas Sun.

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Adelson finds his man

Posted on October 13, 2015 by David McKee

Marco Rubio could be justthisclose to a Sheldon Adelson endorsement. When Rubio was in Las Vegas last week, playing counterpoint to Donald Trump, he had a meeting Sheldon pashawith Adelson that “had an air of importance” according to Politico.com. Should Adelson give Rubio the nod, it would put a tailwind of at least $100 million behind his campaign. Sons of immigrants, Adelson and Rubio are both frequent phone pals. Rubio has been courting other potential megadonors, like Paul Singer and Charles Schwab, but their war chests pale in comparison to what Adelson (net worth: $25.7 billion) could throw into the race.

Although Adelson is officially neutral at this point, he appears to have tipped his hand through a story in his newspaper Haaretz. Its headline unequivocally stated, “Sheldon Adelson Leaning Toward Marco Rubio.” It cited “sources close to Sheldon Adelson” (read: Sheldon Adelson) that “momentum has strongly shifted to Continue reading →

Posted in Culinary Union, Donald Trump, Election, Florida, Geoff Freeman, Internet gambling, Politics, Sheldon Adelson, Station Casinos, Wall Street, Wisconsin | 3 Comments

Mad slot skillz; Tribes at war with one another

Posted on October 12, 2015 by David McKee

Skill-based slot games are a long way from deployment but that didn’t discourage The Motley Fool‘s Jeff Hwang from scouting the Global Gaming Expo show floor in search of entertaining product. The games he saw the greatest potential in were Gamblit Gaming‘s Scientific GamesGrab Poker (despite some concerns about the potential for collusion), International Game Technology‘s Texas Tea Pinball, Scientific Games‘ Space Invaders and NanoTech Gaming‘s Vegas Pinball 2047. Everything else he lumped in the “needs work” category.

He wrote that “most of what was shown are clones of popular non-gambling games with wagering technology slapped on, and not necessarily in a way that makes sense … the most aggressive innovations are coming from smaller upstarts like Continue reading →

Posted in California, Economy, G2E, IGT, Internet gambling, MGM Mirage, Pennsylvania, Scientific Games, Technology, Tribal | Comments Off on Mad slot skillz; Tribes at war with one another

McCheese baffles Wynn; Straub thwarted again

Posted on October 12, 2015 by David McKee

Boston Mayor Martin “McCheese” Walsh has Wynn Everett President Robert DeSalvio “baffled” with his schizoid approach to martinjwalsh-headshotthe hotel-casino. After having an apparently conciliatory meeting with Walsh, DeSalvio was bushwhacked by a McCheese-launched lawsuit to halt construction on Wynn Everett. “We were somewhat baffled by the resulting litigation that followed and I really can’t answer for it. I don’t know why that 
action was taken,” DeSalvio told Boston Herald Radio.

Although he risks driving off $1.7 billion in development, Walsh’s rule-or-ruin approach is polling well in Boston, where it enjoys Continue reading →

Posted in Arizona, Atlantic City, Glenn Straub, Harrah's, Horseracing, Massachusetts, Mohegan Sun, New York, Racinos, Revel, Steve Wynn, Tribal, Wall Street | Comments Off on McCheese baffles Wynn; Straub thwarted again

Trump Trek: The wrath of Khan

Posted on October 8, 2015 by David McKee

Trump flyerDonald Trump‘s touring show is playing Treasure Island even as I type this (Phil Ruffin was the opening act). The Culinary Union‘s Bethany Khan was loaded for bear and unleashed this blast at The Donald today.

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So long, Sammy; DFS gets a wakeup call

Posted on October 8, 2015 by David McKee

As predicted here, Sam Nazarian has liquidated his 10% stake in SLS Las Vegas to majority owner Stockbridge Capital Group. He’ll still get some extra cash out of the deal, which licenses his SLS brand to Stockbridge (although you could call the place Sam’s Shack snazas have as much brand equity). With the departure of Sam The Sham, we will hopefully have an end to newspaper mentions of Nazarian as a “visionary.” After all, unlike SLS, CityCenter actually produces a return on investment but nobody has ever lobbed the V-word around in reference to Jim Murren. By getting The Naz out of the picture Stockbridge “says it allows the SLS Las Vegas more flexibility to switch out brands and restaurants,” says the Las Vegas Sun.

That would seem to portend drastic changes at the property, which has already severed ties with retailer Fred Segal and may have many more surprises in store. Considering that SLS Las Vegas is sinking fast, Continue reading →

Posted in Aristocrat, G2E, Regulation, Sam Nazarian, SLS Las Vegas, Sports, Wall Street | Comments Off on So long, Sammy; DFS gets a wakeup call

Buckeye bounce; Macao’s woes a secret benefit?

Posted on October 7, 2015 by David McKee

Casino and racino revenues in Ohio were up nicely last month, +6.5%. We’re still at least a month away from having a full set of Toledo Casinoyear/year comparisons but Gov. John Kasich‘s decision to supersize a four-casinos-only constitutional amendment into four casinos and seven racinos is paying off handsomely for the Buckeye State. (Too bad he can’t use those talking points out on the campaign trail.) The overall results were about what you’d expect: Penn National Gaming up, Rock Gaming down. Among smaller operators, Eldorado Resorts‘ Scioto Downs was flat ($11 million) and Continue reading →

Posted in Dan Gilbert, Economy, Eldorado Resorts, GLPI, Hard Rock International, Harrah's, Macau, Ohio, Penn National, Pinnacle Entertainment, Racinos, Steve Wynn | Comments Off on Buckeye bounce; Macao’s woes a secret benefit?

Doubling down on Philadelphia; Baltimore throws a Horseshoe

Posted on October 7, 2015 by David McKee

Cordish Gaming got the go-ahead to start building its Packer Avenue casino in Philadelphia. The news came on the same as a bulletin that should give Cordish pause, with SugarHouse casino reporting a 4% drop in slot revenues. Given the amount of gaming Cordish Phillyproduct in the greater Philadelphia market, Cordish should probably brace itself for disappointment. It remains a puzzlement why Greenwood Racing is a joint-venture partner in this project, one which is likely to dilute Parx Casino revenues. Perhaps Greenwood has subscribed to the old Gary Loveman business model of flooding a market with your product and hoping to get more money out of it than anybody else, even if you’re your own primary competitor. (A strategy that’s not working too well in Cleveland these days.)

In any event, Cordish’s $400 million Stadium Casino will flood the market with an additional 2,000 slots and 125 table games. It also still has to clear several legal hurdles, including Continue reading →

Posted in Cordish Co., Foxwoods, Greenwood Racing, Harrah's, Maryland, Mohegan Sun, Neil Bluhm, Pennsylvania, Tribal | Comments Off on Doubling down on Philadelphia; Baltimore throws a Horseshoe

No boost for Illinois; The wrath of Wynn

Posted on October 7, 2015 by David McKee

So much for the invigorating effect of Labor Day weekend. Even with a holiday, September in Illinois still saw a decline in casino revenue. Casinos in the Land of Lincoln were down 5% for the month. Foot traffic fell 2% and spending was off by 3%. MGM Resorts Grand Victoria ILInternational‘s Grand Victoria ($14 million) continues to stage a comeback, though, up 4%. That was a rare bright spot in the northern tier of the state, where even Rivers Casino ($32 million) was 14% down. Harrah’s Joliet ($15 million) fell 13%, while Empress Joliet ($10 million) was up 10% but Penn National Gaming‘s Hollywood Aurora ($9 million) dove 7%. Out west, Jumer’s Casino Rock Island ($6 million) staged a rally, up 5%.

To the south, things were somewhat better, with Harrah’s Metropolis ($6.5 million, up 4%) enjoying a positive month, while the percentage declines Continue reading →

Posted in Boyd Gaming, GLPI, Harrah's, Illinois, Massachusetts, MGM Mirage, Neil Bluhm, Penn National, Regulation, Slot routes, Sports, Steve Wynn | Comments Off on No boost for Illinois; The wrath of Wynn

Quote of the Day

Posted on October 7, 2015 by David McKee

macao1952“We believe sentiment has recently benefitted from comments made earlier this month by Li Gang, the director of the Liaison Office between Macau and Mainland China, where he stated that the central government is going to release more measures to support Macau’s economy and that most of these measures (no details were given) will relate to the gaming industry.” — from a report by J.P. Morgan analyst Joseph Greff. Like, duh, Mr. Li. Eighty percent of Macao’s economy is gaming. What else are you going to prop up?

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Trouble in Fantasyland

Posted on October 6, 2015 by David McKee

Remember, it’s not whether you win or lose but whether you covered the spread.

Untoward, insider dealings in a completely unregulated, gray-area, half-understood  industry? Why, I’m shocked, I tell you, shocked! At least the allegations of self-dealing within DraftKings and FanDuel might explain the preposterously large amount of winnings claimed by some of the Joe Schmoe characters who pop up in those ubiquitous TV commercials. One DraftKings employee racked up $350,000 from FanDuel after “inadvertently releasing data before the start of the third week of N.F.L. games,” according to the New York Times. We’ve come a long way from the weekly football pool in the company office.

Both FanDuel and DraftKings assure us that Continue reading →

Posted in Regulation, Sports | Comments Off on Trouble in Fantasyland

MGM reassures Springfield; New gig for Loveman

Posted on October 6, 2015 by David McKee

MGM Resorts International President William Hornbuckle‘s promptly arranged visit to Springfield took on the nature of a damage-control effort yesterday. Hornbuckle made an unequivocal commitment to the city, saying, “We have not gone anywhere, we will not go anywhere and we will be here to the end of this.” He also said that the company had already poured $250 million into the project, and the publicly available figures (which include line items like the Massachusetts license fee) come to $235 million, which we’d say is close enough.

Hornbuckle also dangled the prospect of a high-rise hotel tower if the casino is successful enough to warrant Continue reading →

Posted in Boyd Gaming, Florida, Harrah's, Massachusetts, MGM Mirage, Regulation, Technology | Comments Off on MGM reassures Springfield; New gig for Loveman