Sheldon Adelson, spymaster?

Posted on July 22, 2015 by David McKee

So Sands China did have a “blackmail strategy” after all … in the eyes of the Chinese government, that is. According to a report commissioned Sheldon Aby Sands and marked eyes-only for Sands China CEO Steven Jacobs, “Many of the officials we contacted were of the view that US intelligence agencies are very active in Macao and that they have penetrated and utilised the US casinos to support their operations,” it read, adding that Sands “is the primary subject” of Peking’s concern: “A reliable source has reported that central Chinese government officials firmly believe that Sands has permitted CIA/FBI agents to operate from within its facilities. These agents apparently ‘monitor mainland government officials’ who gamble in the casinos.”

U.S. government agents were accused of “‘luring’ and entrapping Continue reading →

Posted in Internet gambling, Macau, Politics, Sheldon Adelson | Comments Off on Sheldon Adelson, spymaster?

Trump, Trump, pants on fire; Tensions in California

Posted on July 22, 2015 by David McKee

Did Donald Trump lie to casino regulators when he put his net worth at $3.6 million? He told one of his biographers that “I try” to be honest Trump smallbut added that his value “goes up and down with markets, and with attitudes, and with feelings, even my own feelings …  affect my value to myself.” Isn’t it nice knowing that subjective feelings now impact net worth. How valuable are you feeling today? In the past few weeks, Trump’s self-proclaimed net worth has fluctuated between $8.7 billion and $10 billion. He must have been feeling very good about himself.

(Incidentally, Trump is a piker compared to Sheldon Adelson, whose net worth is pegged around $28 billion.)

* Tempers are fraying between California tribal casinos and the state’s card rooms, which are skirting Continue reading →

Posted in Atlantic City, California, Donald Trump, Economy, Regulation, Sheldon Adelson, Tribal, Trump Entertainment Resorts | 2 Comments

Quote of the Day

Posted on July 22, 2015 by David McKee

“As Macau also is painfully aware, what Beijing gives it can readily take away, and it’s difficult to believe the Communist Party has gone to the trouble it has to cut off illicit money flows through the South China Sea only to have it slip out the Yellow Sea.” — Global Gaming Business correspondent James Rutherford, on the burgeoning South Korea casino market.

Posted in International, Macau, Regulation, South Korea | Comments Off on Quote of the Day

Doubts pervade Massachusetts; California casino resurrected

Posted on July 21, 2015 by David McKee

A recent article in the Las Vegas Review-Journal poked fun at Massachusetts‘ nascent casino industry and at Penn National Gaming‘s Plainridge Park in particular. All that schadenfreude may
not have been gratuitous after all, in view of the gloom presently emanating from the Bay State. With both MGM Springfield and Wynn Resorts looking at 2018 openings (possibly later in Wynn’s case), New England casino expert Clyde Barrow tells the Boston Globe, “You could say the state is losing $1 billion in revenue because of the delay from 2016 to 2018.”

With perhaps a bit of exaggeration, Barrow says the implementation of casino gambling in Massachusetts could last as long as Continue reading →

Posted in California, Environment, Foxwoods, Massachusetts, MGM Mirage, Mohegan Sun, Penn National, Regulation, Rhode Island, Steve Wynn, Taxes, Tribal | Comments Off on Doubts pervade Massachusetts; California casino resurrected

Caesars ups the ante; Packer: Fear and loathing

Posted on July 21, 2015 by David McKee

Caesars Entertainment stock rallied today on news that the company had palliated its junior creditors by offering them a $200 million forbearance fee along with 10% ownership of the REIT, which it Harrahs_NOcharacterized as “a substantial improvement in recoveries.” Caesars claims to have a “significant amount” of junior debtors behind the move. It also plumped up the value of its proposed REIT by transferring Harrah’s New Orleans and Harrah’s Laughlin into it if the deal goes through. The Motley Fool‘s Travis Hoium, however, wasn’t buying it. He characterized it as a last-ditch move to keep Caesars Entertainment from toppling into bankruptcy, too. Currently it’s teetering on the precipice, as Judge Benjamin Goldgar prepares to rule on whether lawsuits challenging the alleged “fraudulent conveyances” of assets out of Caesars Entertainment Operating Co. can move forward or not.

“This latest offer at least gives second-lien note holders something to think about, but there’s not an agreement with Continue reading →

Posted in Australia, Harrah's, James Packer, Laughlin, Lawrence Ho, Louisiana, Macau, The Strip, Wall Street | Comments Off on Caesars ups the ante; Packer: Fear and loathing

Pinnacle deal done; Christie’s tribal blind spot

Posted on July 21, 2015 by David McKee

After playing hard to get, Pinnacle Entertainment management finally succumbed to the embrace of Gaming & Leisure Properties. SanfilippoIt’s a great deal on Pinnacle’s part: It sells its real estate to GLPI for 12.5 times cash flow, an unheard-of multiple for regional casino properties. Since Pinnacle will still be managing the casinos, the onus remains on them to justify GLPI’s (over)payment. However, CEO Anthony Sanfilippo and his team extracted a sweet deal for their shareholders, who will receive 0.85 shares of GLPI stock for every share of Pinnacle they hold.

“We believe PNK management did a superb job maximizing Continue reading →

Posted in Entertainment, GLPI, Japan, MGM Mirage, Pinnacle Entertainment, The Strip, Tribal, Wall Street | Comments Off on Pinnacle deal done; Christie’s tribal blind spot

MGM challenged in Connecticut, praised in Maryland

Posted on July 20, 2015 by David McKee

Connecticut‘s gaming tribes are confident they can beat MGM Springfield to the punch by a wide margin. How wide depends on Mohegan Sunwhether they’re able to use a repurposed building (in which case we could be talking about the end of this year) or have to build the ground up, which could push the timeline out to December 2017. To hear Mohegan Sun and Foxwoods Resort Casino tell it, they’ve got no shortage of interested host communities, from Enfield to Windsor Locks, with Bradley International Airport in the mix. Of course, all this presupposes that the Legislature approves the host-community agreement, off-reservation gaming being terra incognita for the state.

Strengthening the tribes’ hand is their recent Continue reading →

Posted in Economy, Foxwoods, Maryland, Massachusetts, MGM Mirage, Mohegan Sun, Wall Street | Comments Off on MGM challenged in Connecticut, praised in Maryland

Caesars CEO earns dunce cap; Downtown Grand faces identity crisis

Posted on July 20, 2015 by David McKee

New Caesars Entertainment CEO Mark Frissora scarcely got his chair warm when former employer Hertz Global Holdings pushed him under the bus, blaming him for a managerial style that led to four Mark Frissorayears’ worth of “material misstatements [and] inappropriate accounting decisions and the failure to disclose information to an effective review” by the company. Hertz continues to be investigated by the SEC and has had to re-state four years’ revenue reportage. Forbes Magazine named Frissora one of the “Worst CEO screw-ups of 2014,” especially after his job performance got a blistering review from Carl Icahn. You’d think a CEO would be held responsible for the restated-earnings fiasco but …

Caesars was quick to circle the wagons around Frissora. Spokeswoman Jan Jones was Continue reading →

Posted in Downtown, Eldorado Resorts, Harrah's, MGM Mirage, Regulation, Reno, The Strip | Comments Off on Caesars CEO earns dunce cap; Downtown Grand faces identity crisis

Pit bosses think their job is the pits; One-hoss Hsieh

Posted on July 20, 2015 by David McKee

PayScale.com has been researching the most and least meaningful jobs, and some of it reflects unfavorably on our casino industry. Table game Maco table actionsupervisors “report that they do not find their jobs meaningful, 20% actually believe their jobs make the world a worse place.” (Even if Steve Wynn gives them a cut of the dealers’ tips?) That puts them in third place on the dissatisfaction index, outdone only by warehouse pickers (21%) and fast food workers (25%). One would expect a hash slinger at, say, Wendy’s to feel unfulfilled in their work … but pit bosses? This sounds like a serious morale problem that the casino industry should make haste to address.

* Angela Leong, legislator and the power behind the Sociedade de Jogos de Macau throne, Continue reading →

Posted in Aristocrat, Donald Trump, Downtown, Economy, Environment, Macau, Pets | Comments Off on Pit bosses think their job is the pits; One-hoss Hsieh

SLS: The news just gets worse

Posted on July 17, 2015 by David McKee

Despite SLS Las Vegas having lost $183 million in its first eight months of operation, against pitiful revenues of $88 million, President SLS_LV-Splash_v2Scott Kreeger insists that owner Stockbridge Capital is in it for the long haul. It has to be, Sam Nazarian having hung this millstone around Stockbridge’s neck. Aside from the obvious location problem, SLS is the subject of frequent complaints about catering to the L.A. street gang crowd. It’s also doing a dismal job of courting locals. Station Casinos CFO Marc Falcone, when asked about SLS’ effect on nearby Palace Station, described it as “zero impact.”

Ouch. Kreeger is making some moves to try and remedy that, such as Continue reading →

Posted in Alabama, Entertainment, International, Internet gambling, Marketing, Politics, Racinos, Revel, Sam Nazarian, SLS Las Vegas, Station Casinos, Taxes, Wall Street | 3 Comments

Quote of the Day

Posted on July 17, 2015 by David McKee

“Massachusetts has a quaint law that prohibits felons from benefiting from casino development. In Nevada, we usually refer to them as “€’forefathers.'” — John L. Smith on Steve Wynn‘s threat of a defamation lawsuit against Boston Mayor Martin “McCheese” Walsh (D) and his minions.

Posted in Massachusetts, Regulation | 1 Comment

“Avenue Q” returns to Vegas

Posted on July 16, 2015 by David McKee

Puppet sex returns to Sin City! This Tony Award-winning musical got a bad rap when it played Wynn Las Vegas but it’s back at Las Vegas Little Theatre and is a smash hit. The first weekend sold out and tickets for the remaining performances are going quickly. I’m somewhat prejudiced (my wife does the costumes) but Continue reading →

Posted in Current, Entertainment, Steve Wynn, The Strip | 1 Comment

The lion grumbles; Is Alabama casino-ready?

Posted on July 16, 2015 by David McKee

MGM Resorts International is not going to sit idly by while the State of Connecticut tries to horn in on MGM Springfield‘s business. MGM President William Hornbuckle said the company Hornbucklewas “not going to go peacefully” but would not give any specifics of the planned counteroffensive. While Connecticut still has to amend its constitution to permit a third tribal casino, MGM’s one-year postponement in Springfield, if permitted by the Massachusetts Gaming Commission, gives both Mohegan Sun and Foxwoods Resort Casino that much more runway to get their competing project aloft, especially since it’s going to be a quickie product.

Meanwhile, the decline of Mohegan Sun and Foxwoods has been at least temporarily arrested. The former’s wagering  Continue reading →

Posted in Alabama, Atlantic City, Foxwoods, Iowa, Macau, Maryland, Massachusetts, MGM Mirage, Mohegan Sun, Penn National, Politics, Racinos, Singapore, Steve Wynn, Taxes, The Strip, Warner Gaming | Comments Off on The lion grumbles; Is Alabama casino-ready?

Stalemate with Straub; MGM’s new bauble

Posted on July 16, 2015 by David McKee

Glenn Straub is sticking it to Stockton University but good. While Showboat_Atlantic_Citythe school tries to find a new buyer for the old Showboat, he’s refusing to let the university out of its purchase agreement with his KK Ventures. So far, the court system has been unable to resolve whether Caesars Entertainment‘s removal of the Showboat’s gaming entitlement superseded the same company’s covenant with Trump Entertainment Resorts to operate “a first-class casino” on the site.

Straub’s intransigence — refusing to consummate a purchase of the Showboat even though he’s Continue reading →

Posted in Atlantic City, Cirque du Soleil, Entertainment, Glenn Straub, Harrah's, Macau, MGM Mirage, Regulation, Steve Wynn, The Strip, Trump Entertainment Resorts | 2 Comments

Quote of the Day

Posted on July 16, 2015 by David McKee

“In keeping with your recent comment about Caesars’ former CEO Gary Loveman‘s penchant for skipping maintenance on existing Gary_loveman_Cropped_fmtproperties, I had the following experiences at this week’s four-night stay at Planet Hollywood: TV in room didn’t work at all. Bathroom sink stopped up. My favorite: water turn-on handle in bathtub FELL OFF (no kidding). No real question here – well, maybe one. How did Gary Loveman manage to keep his job so long while trashing two of the premier gaming brands: Harrah’s and Caesars?” — reader comment on a recent “Question of the Day regarding Caesars Entertainment‘s downfall.

Posted in Harrah's, Planet Hollywood, The Strip | 1 Comment

Web wagers boost Atlantic City

Posted on July 14, 2015 by David McKee

It was more of the same for Atlantic City last month. Overall gambling revenue slid 9.5%, even as surviving operators experienced Atlantic Cityindividual increases. The headline item is that Internet gaming grew 23%, bringing in almost $12 million. Borgata dominated that market, with a 30% share, while Caesars Interactive, Tropicana Atlantic City and Golden Nugget were all bunched together in a cage match for second place. With only 3% share, Resorts Atlantic City was a non-factor.

Eight percent less coin-in led to a 10% slump in slot revenue. Table game action was even Continue reading →

Posted in Arizona, Atlantic City, Boyd Gaming, Harrah's, Internet gambling, Mohegan Sun, Revel, Tilman Fertitta, Tourism, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Web wagers boost Atlantic City

Mirage volcano muzzled; Macao gives the industry hope

Posted on July 14, 2015 by David McKee

One of Vegas’ most iconic attractions is getting minimized. The Mirage mirage-pic2volcano will now only erupt twice on weeknights and thrice on weekends. This austerity move is a concession to MGM Resorts International‘s huge debt overhang. It was also supposedly cut back because it wasn’t driving foot traffic into the casino. The logic of how it was supposed to do that eludes. This was always a freestanding tourist attraction and MGM has just made a mean, little dent in the number of things in Sin City that can be enjoyed for free.

* Now that Tunica has peaked, hard questions are being asked about Continue reading →

Posted in Economy, Environment, Harrah's, International, Macau, Melco Crown Entertainment, MGM Mirage, Mississippi, Philippines, Sheldon Adelson, South Korea, Station Casinos, Steve Wynn, Taxes, The Strip, Tourism | Comments Off on Mirage volcano muzzled; Macao gives the industry hope

Penn has big plans for Trop; It’s not easy being Steve Wynn

Posted on July 14, 2015 by David McKee

Penn National Gaming has been talking up its growth strategy to Wall Street and the Tropicana Las Vegas is central to the plan. At present, the Tropicana is pulling in just $40 million a year in casino TROPICANA VIEW 1B_LO 042010revenues, less than Penn makes at its Bangor casino (in a less competitive market, one should note). Penn plans to increase cash flow first by eliminating redundancies, so if you work in the legal, accounting or compliance departments, you’d better start looking for a new job. Penn’s goal is an 11% return on investment, which J.P. Morgan analyst Joseph Greff calls “conservative.” The 9.5X cash flow purchase price might seem steep … until you consider where the Trop sits. At over $10 million in acre, the deal also signals a significant upturn in the value of Strip real estate.

Although Penn execs describe the Trop’s room product as Continue reading →

Posted in California, Environment, Maine, Massachusetts, Penn National, Regulation, Station Casinos, Steve Wynn, The Mob, The Strip, Tribal, Wall Street | Comments Off on Penn has big plans for Trop; It’s not easy being Steve Wynn

Wynn: Massachusetts vs. Boston; Crisis and opportunity at Station

Posted on July 13, 2015 by David McKee

Steve Wynn appears to be losing patience with the obstacles being thrown in his way by seemingly vanquished adversaries in his long fight to get a Boston-area casino. He’s filed a defamation suit against the city, after a lawsuit championed by Mayor Martin “McCheese” Walsh basically accused Wynn of being mobbed up. Or, as the Boston Herald put it, Walsh’s administration “alleges that former state troopers working as private investigators for Wynn may have known about the criminal ties to the property, a revelation the city says should lead Wynn to lose its license, if proven true.”

Sore losers Revere and Somerville continue to litigate, as does a Continue reading →

Posted in Culinary Union, Eldorado Resorts, Election, Georgia, history, International, Massachusetts, MGM Mirage, New York, Politics, Regulation, Sam Nazarian, Slot routes, Station Casinos, Steve Wynn | Comments Off on Wynn: Massachusetts vs. Boston; Crisis and opportunity at Station

What do you do …

Posted on July 13, 2015 by David McKee

… if you’re Curtis “50 Cent” Jackson? Naturally, you throw yourself 50 Centa birthday party atop The Cromwell, with seemingly half the NBA in attendance. Then you file bankruptcy on Monday, before you’ve even had a chance to sober up. (Geez, better book a few more Vegas dates to pay those Chapter 11 lawyers.) How fitting that the insolvent Jackson chose to ring in another year at a Caesars Entertainment property.

* While we’re on the subject of Caesars, I haven’t been back to Jubilee! since it was turned into a hybrid of new and old acts, in Continue reading →

Posted in Entertainment, Harrah's, Marketing, Sam Nazarian, SLS Las Vegas, Steve Wynn, The Strip | Comments Off on What do you do …