Quote of the Day

Posted on October 23, 2015 by David McKee

sheldon-adelson-25“We have a belief our gaming license is a privilege and not a right. We have always been respectful of the Macao government’s desires. We were the pioneer of the integrated-resort business model. That’s what the government wants. We will continue to do that.” — Sheldon Adelson, striking a different tone from Steve Wynn in re Chinese regulatory policies.

Posted in Macau, Regulation, Sheldon Adelson, Steve Wynn | 1 Comment

Caesars: New wine in old bottle; The house that poker built

Posted on October 23, 2015 by David McKee

Starting Jan. 1 (What? No New Year’s Eve bookings?), guests at Caesars Palace will have the chance to stay in the new Julius caesars-palaceTower. Except that it’s not really new: It’s the old Roman Tower, given a dramatic, $75 million rejuvenation. “Bursts of freesia yellow and Aegean blue stand out among the neutral color palette and textured fabric décor,” enthuses the Caesars Entertainment blog. Amenities will include a “stone shower with glass enclosure” and a 55-inch (above-average for Las Vegas) HDTV set in the bedroom. All this and more can be yours for a $149 ADR (plus resort fees, etc.).

It’s all part of a rolling makeover of the property which has already yielded Nobu Hotel and Searsucker restaurant, among other Continue reading →

Posted in Architecture, California, Economy, Genting, Harrah's, Macau, Regulation, Sheldon Adelson, Singapore, Steve Wynn, The Strip | Comments Off on Caesars: New wine in old bottle; The house that poker built

Boyd: What’s not to like?; Poker cheat gets flushed

Posted on October 23, 2015 by David McKee

Try as it might, Boyd Gaming just doesn’t feel any warm fuzzies from Wall Street. J.P. Morgan analyst Joseph Greff Wall-streetcalled the most recent quarter “very impressive,” with 3% revenue growth and huge increases in cash flow. Still, Greff wrote, “we’d wait for a better entry point … We remain Neutral at current levels and continue to prefer [Penn National Gaming] within the U.S. regional gaming sector given its robust development pipeline, solid free cash flow generation … and better balance sheet.” Greff adjusted his full-year cash flow expectation for Boyd significantly upward, though.

Contributory factors to Boyd’s exceptional 3Q15 were 5% greater net revenue in the Las Vegas locals market and lower costs of Continue reading →

Posted in Atlantic City, Boyd Gaming, Environment, Harrah's, Hawaii, Internet gambling, Iowa, Louisiana, Penn National, Wall Street | Comments Off on Boyd: What’s not to like?; Poker cheat gets flushed

Adelson crashes MGM’s party; More trouble for DFS

Posted on October 22, 2015 by David McKee

Sheldon Adelson has a genius for sucking the air out of whatever room he enters. After MGM Resorts International laid the groundwork for a casino debate in Georgia, offering to invest $1 Sheldon_Adelson dye jobbillion in an Atlanta pleasure palace, Adelson has come along and upped the ante to $2 billion. That’ll make an impression. Adelson also has Peachtree State allies, like Newt Gingrich and former Las Vegas Sands COO Michael Leven, who has returned to the Georgia Aquarium, from which Adelson had plucked him. “He’s controversial for sure. He’s dynamic and aggressive. But he makes enormous contributions to every community he’s been in,” Leven told the Atlanta Journal-Constitution. “He’s never going to get left behind. He makes sure he knows what’s going on and where it’s going. He knows every detail,” added political consultant Randy Evans.

Penn National Gaming and Boyd Gaming have been reported as having interest in Georgia, but nobody’s Continue reading →

Posted in Boyd Gaming, Donald Trump, Economy, Election, Florida, Georgia, International, Internet gambling, Kansas, Macau, Maryland, MGM Mirage, Penn National, Politics, Regulation, Sheldon Adelson, Singapore, The Strip | Comments Off on Adelson crashes MGM’s party; More trouble for DFS

All’s well at Penn; Mulroy’s misdeed; Discomfort at Studio City

Posted on October 22, 2015 by David McKee

Penn National Gaming pleasantly surprised Wall Street, reporting third-quarter revenue of $739 million and $210 million in cash flow, exceeding projections by $8 million and $11 million, respectively. It Penn logopaid out $109 million in rent to Gaming & Leisure Properties Inc. Penn announced that $266 million Plainridge Park, in Massachusetts, and its two newest racinos in Ohio were all pulling in a 20% return on investment. At the former, Penn has signed up 130,000 members already for its loyalty program. “We think this should assuage investors’ recent concerns about a moderating recent revenue performance at Plainridge,” wrote J.P. Morgan analyst Joseph Greff of the slot parlor’s performance.

Out West, Penn is focused on improving the restaurant options and slot product at the Tropicana Las Vegas, while construction of Continue reading →

Posted in California, Economy, Galaxy Entertainment, GLPI, Illinois, Lawrence Ho, Macau, Marketing, Massachusetts, Melco Crown Entertainment, MGM Mirage, Missouri, Ohio, Penn National, Regulation, Sports, Steve Wynn, The Strip, Tribal, Wall Street | Comments Off on All’s well at Penn; Mulroy’s misdeed; Discomfort at Studio City

Pennsylvania edges toward ‘Net bets; The forbidden dance

Posted on October 20, 2015 by David McKee

There’s nothing like a budget crisis and a partial government shutdown to focus lawmakers’ minds on gaming expansion. That’s Reed-2014the case in Pennsylvania, where House Majority Leader Dave Reed (R, right) says, “We need to come to a conclusion on liquor reform. We need to address cost drivers like our pension system. We need to look at gaming options.” [emphasis added] And by “gaming options,” Reed means Internet gambling, OTB slot parlors and airport slots. The House rejected Gov. Tom Wolf‘s $2.4 billion tax increase like a hanging curve ball, putting “gaming options” onto the front burner.

“Before we look at increasing taxes on working families, we have a responsibility to look at every other possible revenue source out there, and expanded gaming is Continue reading →

Posted in Election, Idaho, Pennsylvania, Politics, Regulation, Sheldon Adelson, Taxes, Tribal | 1 Comment

Quote of the Day

Posted on October 20, 2015 by David McKee

“Probably the [New Jersey] in me, but this should not be allowed to happen. Makes regulators look like their [sic] tools of casinos.” — Global Gaming Business Editor Roger Gros on Pat Mulroy‘s sudden move from the Nevada Gaming Commission to the board of Wynn Resorts, sans cooling-off period.

Posted in Regulation, Steve Wynn | 1 Comment

Macao rebukes Wynn

Posted on October 20, 2015 by David McKee

Steve Wynn‘s criticism of Macao governmental policy toward casinos as “outrageous and ridiculous … the single most counterintuitive and irrational decision that was ever made” went over like a lead balloon in China. Casino executives, including Wynn Macau President Gamal Aziz, were called on the carpet. Present to read the riot act was

Continue reading →

Posted in Internet gambling, Macau, Massachusetts, Regulation, Sports, Steve Wynn, TV | Comments Off on Macao rebukes Wynn

Penn bullish on Trop; DraftKings can’t help itself

Posted on October 19, 2015 by David McKee

J.P. Morgan analyst Joseph Greff met with Penn National Gaming executives and found them very upbeat on the Tropicana Las Vegas, even though it grosses less than $54 million a year. “Of trop-picthe three million Marquee Rewards members, Penn estimates 20-25% visit Las Vegas at least once per year and believes capturing just 15% of that user base’s average gaming spend would deem the property successful,” Greff wrote.

As for renovation, Greff doesn’t think we’ll see anything on that front (ditto new construction) until Continue reading →

Posted in Internet gambling, Marketing, Penn National, Regulation, The Strip, Wall Street | 2 Comments

Quote of the Day

Posted on October 19, 2015 by David McKee

“It’s a shot in the arm. But it’s not the silver bullet that’s going to solve our financial woes.” — Binghamton Mayor Richard David, whose city ranked dead last in civic optimism, on the selection of nearby Tioga Downs for a full-service casino.

Posted in Economy, New York, Racinos | Comments Off on Quote of the Day

James Packer thinks big; DFS’ self-inflicted wound

Posted on October 19, 2015 by David McKee

One scarcely thinks of Crown Resorts as anything but an upmarket brand. However, as it contemplates debuting in Las PackerVegas and pines after Japan, Crown is developing a new, luxury brand. The unlikely template will be a $1.1 billion, 90-story hotel/apartment complex in Melbourne. Said Crown exec Todd Nisbet, “the idea of being able to come up with a new resort proposition and potentially a new resort brand, we think is a good thing for Crown holistically and where we want to position ourselves over the next 10 years.”

The hotel tower is being built across the street from Crown’s Melbourne casino, so gaming will presumably monetize James Packer‘s billion-dollar real estate play. There’s still no word Continue reading →

Posted in Australia, California, Delaware, Illinois, James Packer, Japan, Macau, Mississippi, Ohio, Pennsylvania, Regulation, Sheldon Adelson, Sports, The Strip | Comments Off on James Packer thinks big; DFS’ self-inflicted wound

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.

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

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.

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

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.

Posted in Culinary Union, Donald Trump, Election, The Strip | Comments Off on Quote of the Day