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 …

Quote of the Day

Posted on July 13, 2015 by David McKee

“We have a tough time envisioning a scenario where Pinnacle’s board and management could create the same value in the same time frame that GLPI’s deal would, and we don’t see the likelihood of a superior bid from another entity” — J.P. Morgan analyst Joseph Greff on the continued sparring between Gaming & Leisure Properties and Pinnacle Entertainment. GLPI just raised its offer for Pinnacle by 32%.

Posted in Uncategorized | Comments Off on Quote of the Day

Poor Phil Ruffin

Posted on July 13, 2015 by David McKee

trump-14First he gets skunked in his attempt to secure the last Kansas casino license, now’s he being used as a prop in Donald Trump‘s traveling freak show. Ruffin, by the way, is Trump’s designated mandarin of China policy. If the Chinese want to negotiate with a casino mogul, they’ve always got Sheldon Adelson and plenty of him. Speaking of which, has Ruffin been dipping into Adelson’s hair dye?

Posted in Donald Trump, International, Kansas, Phil Ruffin, Sheldon Adelson | Comments Off on Poor Phil Ruffin

Bluhm tries, tries again; Caesars sees profits

Posted on July 10, 2015 by David McKee

“Metal panels and precast stone” are the look of Rivers Casino 3.0, as Rush Street Gaming struggles to find a design that sits well with Schenectady city fathers. The casinos is the $330 million linchpin of a Rivers Schenectady$480 million development which includes a rather plain-looking hotel, bike paths and condos. (Design has never been a strong point of Rush Street’s.) Neil Bluhm’s company has endeavored to retool the exterior appearance without changing the casino’s footprint. The modernistic solution it has devised is advertised as an attempt to reflect “new Schenectady.”

“It’s a much more refreshing, modern look. I don’t want to use the word high-tech, but it’s a little bit high-tech, so I think Continue reading →

Posted in Architecture, Atlantic City, Harrah's, Neil Bluhm, New York, Taxes | Comments Off on Bluhm tries, tries again; Caesars sees profits

White knight for Caesars?; Missing the Blarney Stone

Posted on July 10, 2015 by David McKee

Caesars Entertainment may have to cede more equity in Caesars Entertainment Operating Co. in order to get junior creditors behind a Chapter 11 restructuring. A Paulson & Co. initiative caesars-palace-02reportedly aims to do exactly that. In tandem with Canyon Partners and Soros Fund Management, Paulson is said to be discussing a new bankruptcy reorganization, sources say. As the third-biggest investor in the Caesars mothership, Paulson carries a lot of clout, which it is flexing on behalf of junior creditors. It’s also bailed out Caesars co-owner Apollo Management from its Realogy Holdings fiasco, in addition to having de-levered Caesars in the past, so there’s reason for Caesars, Apollo and Texas Pacific Group to hear what Paulson has to say.

Meanwhile, the mothership could be tipped into bankruptcy, too, if Judge Benjamin Goldgar permits Continue reading →

Posted in Dan Gilbert, Derek Stevens, Detroit, Downtown, Economy, Harrah's, Internet gambling, MGM Mirage, Sports, Wall Street | Comments Off on White knight for Caesars?; Missing the Blarney Stone

SLS: House of Pain

Posted on July 8, 2015 by David McKee

Former Revel President Scott Kreeger, now running SLS Las Vegas, must feel like he’s gone from the frying pan into the fire. An Sam Nazarianunusually trenchant Howard Stutz column lays out the problems facing the new casino, a hipster joint sitting all by its lonesome in a bad neighborhood. (If this was Sam Nazarian‘s “vision,” the people who bought into it must have been snorting his leftover cocaine.) Kreeger tells Stutz that it will take as long as two years for SLS to become viable. It may not have that much time. Resorts World Las Vegas still hasn’t started work that will take three years and next-door neighbor All-Debt, er, I mean All-Net Arena probably never will. (Even Stutz calls it Continue reading →

Posted in California, Carl Icahn, Dining, Eldorado Resorts, Florida, Fontainebleau, Genting, Marketing, MGM Mirage, New York, Reno, Riviera, Sam Nazarian, SLS Las Vegas, Wall Street | 1 Comment

Around the Midwest

Posted on July 8, 2015 by David McKee

Iowa was as flat as much of its landscape last month. Amidst the prevailing revenue stasis (sign of a perfectly sized market) there were a few significant movers. Isle of Capri Casinos‘ three properties were HET Council Bluffsup a collective 2%, while Boyd Gaming had a mixed month, gaining 6% at Diamond Jo ($5 million) but ceding 3% at Diamond Jo Worth ($7 million). Customers migrated from racetracks to casinos, which cost Horseshoe Casino 9% of its business ($19.5 million) while Harrah’s Council Bluffs (left) was steady. Ameristar Council Bluffs had a slightly adverse month, down 2% to $13 million. (Where were all those Council Bluffs players going?)

The big gainers and losers were small fry like Continue reading →

Posted in Ameristar, Boyd Gaming, Dan Gilbert, Full House Resorts, GLPI, Hard Rock International, Harrah's, Illinois, Indiana, Iowa, Isle of Capri, Neil Bluhm, Penn National, Pinnacle Entertainment, Warner Gaming | Comments Off on Around the Midwest

Quote of the Day

Posted on July 8, 2015 by David McKee

“[Donald] Trump sues when he is made to feel small, insufficiently trump_gold_ap_328wealthy, threatened or mocked. He sues for sport, he sues to regain a sense of control, and he sues to make a point. He sues as a means of saying ‘you’re fired’ to those he does not employ. But he sues, most of all, to make headlines and to reinforce the notion that he is powerful.’ — Olivia Nuzzi, chronicling Trump’s long history of litigation, which includes suing himself.

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