In case you missed it …

Posted on September 10, 2015 by David McKee

… we had a bit of excitement yesterday at McCarran International Airport. According to British Airways, its jetliner experienced “a technical issue.” Ya think? Major props to the Clark County Fire Department for quenching the potential disaster, the worst in McCarran history, within five minutes. The plane was barreling down the runway at 100 miles per hour when the fire broke out, prompting one passenger to say, “Three seconds later, we would’ve left the ground and crashed in Henderson.”

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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.

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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

Wynn gets one step closer; Those insidious resort fees

Posted on September 1, 2015 by David McKee

“At moments like this, there is certainly a feeling of gratification and forward movement. It lifts our spirits and energizes us.” Thus spake Steve Wynn after Wynn Everett cleared another hurdle on its way Massachusetts Gamblingto completion. A 27-page memo from Massachusetts Energy & Environmental Affairs Secretary Matthew Beaton found Wynn’s traffic plans to be in compliance with codified state environmental policy — meaning Wynn’s done all he can to mitigate the effect of his eponymous resort on traffic in the Everett area. Wynn’s allies at this point also include Continue reading →

Posted in Economy, Macau, Massachusetts, New York, Regulation, Sports, Steve Wynn, The Strip, Tourism, Transportation, Tribal | 1 Comment

Quote of the Day

Posted on September 1, 2015 by David McKee

“We believe replacement activity will continue to plod along at trough levels and we see a more muted expansion pipeline in the US.” — Deutsche Bank analyst Carlo Santarelli, in the course of upgrading Scientific Games from “sell” to “hold.”

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The Strip is all right

Posted on August 28, 2015 by David McKee

A 2% decline in July revenues on the Strip may not seem like good news but the casinos were competing against the anniversary of a very Baccaratgood month for baccarat last year. By comparison, this July saw players drop 35% less money onto the felt, although the house was relatively lucky, its winnings only 21% down. Looking ahead, J.P. Morgan analyst Joseph Greff wrote, “we expect the market to continue to experience volatility in baccarat play given a likely slowdown in Chinese players.”

A slight uptick in coin-in plus tighter holds combined for a 9% increase in slot winnings. Players were luckier at Continue reading →

Posted in Boulder Strip, Downtown, Economy, Hard Rock International, Lake Tahoe, Laughlin, Marketing, MGM Mirage, North Las Vegas, Reno, Seminole Tribe, The Strip, Wall Street | Comments Off on The Strip is all right

SLS: Sinking less slowly

Posted on August 27, 2015 by David McKee

Judging by the looks of this going-out-of-business sale at SLS Las SLSVegas (and the exorcism of the Fred Segal name from the Web site), more rats are scurrying off Sam Nazarian‘s sinking ship. It makes me sorry my wife and I turned down a free-stay package this weekend (too busy): It may be our last chance to experience SLS before it’s gone.

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Maryland to players: Drop dead

Posted on August 27, 2015 by David McKee

If you suddenly find that you’re in a Free State casino and your gambling budget doesn’t go as far as it once did, you can thank the Maryland Lottery & Gaming Control Commission. It’s prepared to Great_Seal_of_Maryland_reversevote on a staff-recommended change that slot holds in the state be lowered from the 90%-95% range to 87%-95%. In a slight concession to players, holds are not being tightened to the 85% sought by casinos. Now I understand that casinos in Maryland are taxed to within an inch of their lives, but they’re big boys. They didn’t go into the state with their eyes shut. They knew the tax rate was (initially) 65% and they fought hard — and in the case of Penn National Gaming, dirty — to get a foothold just the same. They even got a tax break during the last election and they still want to sweat the percentages. It all adds up to a big “screw you” for the consumer.

Both the state and the industry are offering the rationalization that competition will Continue reading →

Posted in Cordish Co., Environment, Harrah's, Massachusetts, Ohio, Penn National, Regulation, South Dakota, Tribal, West Virginia | 1 Comment

Atlantic City profits grow; Good and bad news for Caesars

Posted on August 26, 2015 by David McKee

Second-quarter operating profits in Atlantic City were up everywhere except for — you guessed it — Trump Taj Mahal. The Golden Nugget ACTaj swung from a $2 million profit in 2Q14 to a $900,000 loss, another testament to CEO Bob Griffin‘s inspiring leadership. Despite the drag exerted by the Taj, cash flow was up 28% in the market. The increased profitability is actually greater if defunct turkeys like Revel, the Atlantic Club, Trump Plaza and the martyred Showboat are added to the year/year splits. The Golden Nugget‘s ability to draw in refugee players from the closed casinos was reflected in a 902% increase (that’s not a typo) in profitability, nearly $8 million.

Resorts Atlantic City also continues to climb the ladder, up Continue reading →

Posted in Arizona, Atlantic City, Boyd Gaming, Carl Icahn, Genting, Georgia, Harrah's, history, International, Mohegan Sun, Politics, Regulation, Revel, Sheldon Adelson, Technology, The Strip, Tilman Fertitta, Tribal, Trump Entertainment Resorts | Comments Off on Atlantic City profits grow; Good and bad news for Caesars

Caesars, O’Malley flunk key tests

Posted on August 26, 2015 by David McKee

Caesars Entertainment got caught with its pants down by Howard Stutz, who wrote that the company “committed public
Loveman speaksrelations suicide” by lavishing a $200,000 bonus on General Counsel Tim Donovan. This is the same Caesars that is trying to stiff its junior creditors and the same Tim Donovan who — as Stutz pointed out — defended the company’s denial of pensions to 63 former employees. Moneybags Donovan isn’t exactly a Continue reading →

Posted in Atlantic City, California, Election, Entertainment, G2E, Harrah's, Maryland, Mohegan Sun, Taxes, Technology, The Strip, Tribal, TV | 1 Comment