Trouble in Fantasyland

Posted on September 15, 2015 by David McKee

Daily fantasy sports leagues have gotten awfully brazen since pairing with major sports leagues, inundating TV airwaves with advertising, and this has gaming regulators in some states looking askance at DFS. The first shot across the bow came from Nevada, where the Nevada Gaming Control Board announced it was undertaking a “legal analysis” of the wagering. The NGCB was responding to pressure from the likes of Boyd Gaming and William Hill Plc. The latter’s Joe Asher remarked, “I think daily fantasy sports betting should be legal, just like I think traditional sports betting should be legal. But let’s not pretend one is OK and the other is not.”

There’s no danger of DFS being outlawed but it could have to be regulated like Continue reading →

Posted in Boyd Gaming, Detroit, Kansas, MGM Mirage, PokerStars, Politics, Regulation, Sports, TV | 1 Comment

First the good news …

Posted on September 14, 2015 by David McKee

Internet gambling revenues were up 16% in Atlantic City last month, for a $12 million haul. Resorts Atlantic City didn’t get Harrahs AC_2much of the action — 6% — but the other four online operators divvied it up pretty equitably. As for the bad news, the Boardwalk was 6% down on a same-store basis. Since Labor Day weekend fell in August last year, that accounts for much of the decline. When the four defunct casinos are factored into year/year comparisons, the dropoff is a queasy-making 16%. Even without the Showboat in the mix, Caesars Entertainment was really in the dog days, down 17% at its three remaining properties. By contrast, Borgata beat the odds and improved 8% on last year’s performance.

Tighter hold and slightly greater volume of play conspired to generate a 22% increase in Borgata table revenue. Slot players enjoyed looser holds and reciprocated with Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Glenn Straub, Harrah's, history, Internet gambling, MGM Mirage, Mohegan Sun, Revel, Sports, Tilman Fertitta, Tribal, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on First the good news …

Georgia on their minds; How to kill a casino

Posted on September 14, 2015 by David McKee

MGM National Harbor President Lorenzo Creighton dangles some shiny objects and big numbers before Georgia newspaper readers, promising even bigger things for Atlanta, as MGM Resorts International tries to counter lawmakers’ congenital opposition to gambling with suasion and seductive dollar figures. Hearings begin today in the Peachtree State’s Legislature on the potential legalization of as many as six casinos.

It won’t be an easy sell for Continue reading →

Posted in Boyd Gaming, Culinary Union, Derek Stevens, Detroit, Downtown, Economy, Georgia, Horseracing, International, James Packer, Maryland, MGM Mirage, Penn National, Politics, Sheldon Adelson, Steve Wynn, Taxes | Comments Off on Georgia on their minds; How to kill a casino

Culinary Union declares war on Deutsche Bank; The NFL’s dirty hands

Posted on September 14, 2015 by David McKee

Deutsche Bank, in its role as 25% shareholder in Station Casinos, continues to draw fire from the Culinary Union. Let’s clear up a couple of things first. Yes, the Culinary still has an axe to boulderstation-picgrind with Station over the non-union status of the latter’s casinos. No, nobody is implying any wrongdoing on Station’s part here. The focus is strictly on Deutsche Bank and its culpability in rigging interest rates. Assistant Attorney General Bill Baer said Deutsche Bank “undermined the integrity and the competitiveness of financial markets everywhere.” Nor is Uncle Sam finished investigating Deutsche Bank, which may have circumvented U.S. sanctions against dealing with Iran, among other matters, including money laundering — a sore spot with Washington, D.C., where the casino industry is concerned.

However, just as some companies (Caesars Entertainment) are too big to fail, others are too big to Continue reading →

Posted in Culinary Union, Entertainment, Harrah's, history, Oklahoma, Regulation, Sam Nazarian, Sports, Station Casinos, Tamares Group, Tribal | Comments Off on Culinary Union declares war on Deutsche Bank; The NFL’s dirty hands

Gural doubles down; Royal brouhaha

Posted on September 11, 2015 by David McKee

Jeffrey Gural wants a casino in New York State so bad he can taste it — or at least invest $82 million of his own money in it. It’s refreshing when a developer makes that kind of equity commitment. Gural’s upped the ante again, raising the budget for the conversion of Tioga Downs by $32 million, making it a $195 million proposition. Gaming Facility Location Board Chairman Kevin Law seemed impressed by Gural’s level of commitment, calling it “a step in the right direction,” and the man himself liked his chances: “The fact that I’m the only bidder helps.” Referring to an earlier presentation that he called “lipstick on a pig,” Law said that this time “It is certainly more than just lipstick. It was some significant changes.”

So does rebalancing the construction budget so that it relies more on Continue reading →

Posted in Architecture, Dining, New York, Racinos, Regulation, The Strip | Comments Off on Gural doubles down; Royal brouhaha

Meanwhile at the Linq …

Posted on September 11, 2015 by David McKee

… Brian Brown Photography laid several publicity photos of The Linq guestsLinq on us, so it would be churlish not to share. How do we know these are models and not prototypical Vegas-tripping millennials? For starters, they’re not covered in tattoos, which is a dead giveaway. As for the 3:2 ratio of girls to guys, it suggests there’s going to be some “alternative lifestyle” hanky-panky back up in the room.

Posted in Harrah's, The Strip, Tourism | 1 Comment

That wild and crazy Glenn Straub strikes again

Posted on September 10, 2015 by David McKee

Now that wacky Glenn Straub is out of the picture, Stockton University says it is fielding offers for the ex-Showboat. What anybody can do other than run it as a hotel (Caesars Entertainment having removed its gaming entitlement but forgotten to void a covenant that requires it to be a “first class” hotel-casino). Thwarting Stockton is probably Trump Entertainment Resorts CEO Bob Griffin‘s biggest achievement, other than closing Trump Plaza. He can congratulate himself on impeding efforts to diversify the Atlantic City economy.

Straub, meanwhile, must be sniffing glue. He’s trying to flip Revel for $200 million, far more than Continue reading →

Posted in Atlantic City, Boyd Gaming, Glenn Straub, GLPI, Harrah's, history, Iowa, Isle of Capri, Missouri, Penn National, Pinnacle Entertainment, Revel, Tilman Fertitta, Tourism, Tropicana Entertainment, Trump Entertainment Resorts, Unite-Here, Warner Gaming | Comments Off on That wild and crazy Glenn Straub strikes again

Bluhm restless in Massachusetts; Adelson’s latest innovation

Posted on September 10, 2015 by David McKee

Few regulatory bodies move as slothfully as the Massachusetts Gaming Commission and it’s got one would-be developer, Neil Bluhm, kind of antsy. “I’ve got other things to do,” he told the neil-bluhmBoston Globe, adding, “Do I want to be here? Yes. I’m not giving an ultimatum, but I’m not going to sit here waiting forever.” The MGC, as reported earlier, is holding out for some fantasy-dreamboat casino applicant to emerge for Region C, even though Bluhm’s $650 million proposal is the only one on the table. (Bluhm’s currently building a Rivers Casino in Schenectady, New York.)

The MGC is also dancing attendance on the Mashpee Wampanoag tribe, which might, just maybe qualify for a casino in Taunton in the distant future. It’s also taking public comments on Region C. As Bluhm rightly points out, Continue reading →

Posted in Entertainment, Foxwoods, Genting, Harrah's, Massachusetts, Mohegan Sun, Neil Bluhm, Planet Hollywood, Regulation, Sheldon Adelson, Singapore, Taxes, The Strip, Tribal | 1 Comment

Quote of the Day

Posted on September 10, 2015 by David McKee

“August was a strong month for Horseshoe Cleveland. We had some exciting summer promotions and there was a lot happening downtown that brought guests in throughout the month.” — Horseshoe spokesperson Shannon Mortland, trying to rationalize the casino’s declining revenues.

Posted in Dan Gilbert, Harrah's, Ohio | Comments Off on Quote of the Day

Case Bets: Caesars, Detroit, New York & Steve Wynn

Posted on September 9, 2015 by David McKee

In one of the industry’s more bizarre developments, Harrah’s Tunica will become an assisted-living facility if buy TJM HarrahsTunicaExteriorProperties has its druthers. Caesars Entertainment Operating Co. has asked a bankruptcy court to approve the sale. It won’t bring in that much — $3 million — but now that CEOC is in Chapter 11, it’s been turning modest profits every month, so each little bit helps. If the court OKs the sale, could we see other asset liquidations from CEOC? And how would creditors feel about the potential diminution of the asset base?

In other news, Caesars Entertainment has managed to barter a $20 million FinCEN fine down to $8 million, topped off by a $1.5 million penalty to Continue reading →

Posted in Detroit, Economy, G2E, Harrah's, International, Internet gambling, Massachusetts, MGM Mirage, Mississippi, New York, Regulation, Steve Wynn, Technology, Transportation | Comments Off on Case Bets: Caesars, Detroit, New York & Steve Wynn

Indiana stumbles; “Green shoots” in Macao

Posted on September 9, 2015 by David McKee

Foot traffic was down 15% in Indiana casinos last month and even though players spent 10%, it wasn’t quite enough to stave off a 7% belterradecline. (The numbers are worse if you don’t count free play as revenue, which Indiana casinos are permitted to do. They’re better if you remember that Labor Day weekend fell in August last year.) Pinnacle Entertainment was the big winner for the month, up 1% at Belterra and 4% at Ameristar East Chicago. Down south, Penn National Gaming‘s Hollywood Lawrenceburg continues to be decimated by Ohio competition, down 20%. By contrast, even though it had the lowest gross in the state ($4.5 million), Full House Resorts‘ Rising Sun was only off 7%.

Forever besieged by tribal casinos in Michigan, business at Boyd Gaming‘s Blue Chip was down 2%, while normally reliable Caesars Entertainment casinos were Continue reading →

Posted in Boyd Gaming, Economy, Full House Resorts, Genting, GLPI, Harrah's, Indiana, Internet gambling, Macau, Ohio, Penn National, Pinnacle Entertainment, Racinos, Singapore | Comments Off on Indiana stumbles; “Green shoots” in Macao

Ohio: Dan Gilbert’s downfall; Icahn meets Randy the Rat

Posted on September 9, 2015 by David McKee

Ohio‘s slot hoppers have been emptied for August and it was a month marked by some dramatic swings of fate. Belterra Park‘s danielgilbert$6 million haul won’t blow anybody away but, at $145/slot/day, it’s doing an acceptable average and improved 41% from last year. It’s actually catching up with Dan Gilbert‘s ThistleDown Racino, which slipped 22% and is on a trajectory for last place in the Buckeye State. How the mighty have fallen. Gilbert’s Horseshoe Cleveland ($17 million, -17%) has slipped to third place in the state but he could take some comfort in the performance of Horseshoe Cincinnati ($17 million, up 6%).

State leader Hard Rock Rocksino socked away $19 million, a 14% increase. Despite tightening its slots, Continue reading →

Posted in Atlantic City, Carl Icahn, Dan Gilbert, Eldorado Resorts, Environment, GLPI, Hard Rock International, Harrah's, International, Ohio, Penn National, Pinnacle Entertainment, Trump Entertainment Resorts, Unite-Here | Comments Off on Ohio: Dan Gilbert’s downfall; Icahn meets Randy the Rat

Priced to move

Posted on September 9, 2015 by David McKee

In an effort to reduce leverage from its takeover by Gtech, manufacturer International Game Technology is putting its Las Vegas headquarters on the market. Act fast: You can still get this 33-acre facility at “a significant discount.”

Posted in GTECH, IGT | Comments Off on Priced to move

Quote of the Day

Posted on September 8, 2015 by David McKee

Coward“They are generous, mother-worshippers, sentimental and capable of much kindness. They are also ruthless, cruel, violent and devoid of scruples.” — Noel Coward, on the Mob members he ran across when playing the Desert Inn in 1955.

Posted in history, The Mob, The Strip | Comments Off on Quote of the Day

Disappointment in Illinois; Wynn’s new crib

Posted on September 8, 2015 by David McKee

One less weekend day doesn’t wholly explain the tepid results from Illinois in August. Harrah’s Joliet was down a dramatic 14%, while HarrahsJolietHollywood Aurora was off 10% and Empress Joliet slipped 3%. Even seemingly invulnerable Rivers Casino in Des Plaines sagged 8%. However, long-suffering MGM Resorts International riverboat Grand Victoria was up 3%, so somebody’s marketing department was doing something right. Overall, Deutsche Bank analyst Carlo Santarelli reckons that customer spending was flat with last year but foot traffic was 8% down.

The effect of that deadly combination could be seen Continue reading →

Posted in Boyd Gaming, Dining, Economy, GLPI, Harrah's, Illinois, MGM Mirage, Penn National, Pinnacle Entertainment, The Strip, Tropicana Entertainment, Wall Street | Comments Off on Disappointment in Illinois; Wynn’s new crib

Potential free-for-all in Massachusetts; Tribal triumph in Alabama

Posted on September 4, 2015 by David McKee

Massachusetts Attorney General Maura Healey took time out from impeding Steve Wynn‘s Everett casino to run a cart and horses through the Legislature’s carefully crafted three-casinos-and-healey_mauraone-slot-parlor formula. She approved a ballot question that seemed tailor-made to give Suffolk Downs racino status, although Downs COO Chip Tuttle protested, “It’s not us.” East Boston casino opponents, however, weren’t buying it and proceeded to rend their garments in dismay. “There is something so maddening about the idea that we have to do this again,” said one, while another groused, “I would feel that this is a complete circumvention of the community process.”

Although the ballot language, without naming a specific track, is explicit enough in Continue reading →

Posted in Alabama, Atlantic City, Delaware, Election, Harrah's, Internet gambling, Massachusetts, Pennsylvania, Racinos, Regulation, Sheldon Adelson, Steve Wynn, Technology, Tribal | Comments Off on Potential free-for-all in Massachusetts; Tribal triumph in Alabama

Reality check at Sands; Bonanza in Baltimore

Posted on September 4, 2015 by David McKee

Sheldon Adelson risks making himself look in denial with his continuing insistence that the economic troubles in Macao are Sheldon Acyclical. This is B.S.: There has never been a ‘cycle’ in Macao of such depth or duration. Adelson’s Pollyanna attitude contrasts sharply with that of Deutsche Bank analyst Carlo Santarelli, who writes, “We are now projecting 3Q15 [gross gaming revenue] to fall 35.1% (previously -33.0%) and 2015 GGR to decline 34.1% (previously -33.0%). Our 2016 forecast is -5.8% (previously -5.5%). Our estimate for September is -35.2%” (The outlook of Santarelli’s DB colleague, Karen Tang, is even more dire.) Also, proving that this leopard can change his spots, Adelson is now bragging on Sands China‘s market share, a metric he used to scorn.

“Sands has managed to boost its profit margins and operating earnings on a quarter-over-quarter basis,” notes Continue reading →

Posted in Economy, Harrah's, Japan, Macau, Marketing, Maryland, Sheldon Adelson, Singapore, Taxes, Technology, The Strip, Wall Street | 1 Comment

Bidding war in cyberspace; Adelson flexes Macao muscles

Posted on September 2, 2015 by David McKee

Having been outbid by GVC Holdings and jilted by Bwin.Party Digital Entertainment, Israeli-based 888 Holdings is upping the ante again in what is shaping up as the bidding war of the year.

SheldonMeanwhile, Internet gamblers can look forward to a new Android application from Betcade, putting the casino in your pocket as it were. Sheldon Adelson won’t like this and — here’s the best part — it will be unveiled at Global Gaming Expo, which is held in Sands Expo Center. Will Adelson chain himself to the Betcade booth and refuse to let them set up?

* Speaking of Sheldon (and how can we not?), the Las Vegas Sands CEO can glean a silver lining from last month’s dark cloud of Continue reading →

Posted in Galaxy Entertainment, International, Macau, Neil Bluhm, New York, Racinos, Sheldon Adelson, Stanley Ho | Comments Off on Bidding war in cyberspace; Adelson flexes Macao muscles

Isle trends upward; Free the Texas ponies!

Posted on September 2, 2015 by David McKee

Add Isle of Capri Casinos to the list of companies enjoying a positive turn in their fortunes. It reported an operating profit of $57.5 million, a 15% increase. The biggest cash cow was Isle Pompano Park, hauling Isle Pompanoin $42 million, an 11% uptick. Other big earners were Isle Casino Hotel Black Hawk, with $34 million (+9%) and — predictably enough — Isle of Capri Lake Charles ($32 million), which did lose a slight amount of business to the Golden Nugget. In terms of revenue growth, Lady Luck Nemacolin, in Pennsylvania (+13%) and Lady Luck Caruthersville (+12.5%) in Missouri, both living up to Continue reading →

Posted in Arkansas, Colorado, Florida, Horseracing, IGT, Iowa, Isle of Capri, Kentucky, Louisiana, Mississippi, Missouri, Pennsylvania, Politics, Racinos, Technology, Texas, Tilman Fertitta, Wall Street | 2 Comments

Turmoil along the Boardwalk

Posted on September 1, 2015 by David McKee

Cult figure Glenn Straub is back in the news again, if indirectly. Stockton University has received Superior Court Judge Julio Mendez‘s blessing to sell the former Showboat and Mendez has Showboat_Atlantic_Cityenjoined the obstreperous Straub from challenging the sale. Stockton is thereby closer to ending the nightmare that was its $18 million attempt to establish an Atlantic City campus. Straub’s consolation is that he gets his $26 million purchase back — plus interest. Anybody want an ex-casino where you can’t gamble anymore?

In other Boardwalk news, the AFL-CIO has called for a Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Glenn Straub, history, Marketing, Massachusetts, Neil Bluhm, Regulation, Technology, Tribal, Tropicana Entertainment, Trump Entertainment Resorts, Unite-Here | 1 Comment