Quote of the Day

Posted on June 24, 2015 by David McKee

Glendale casino 2“I understand the desire to stick it to the tribe, given that it has outmaneuvered, well, everyone. But this lawsuit seems like a loser for the state … I haven’t seen any signs of plague ravaging the land. No frogs running amok. Not so much as a single locust.” — Arizona Republic columnist Laurie Roberts, advocating that the state, with political jujitsu, legalize racinos instead of continuing to fight the Tohono O’odham Nation‘s Glendale casino project.

Posted in Arizona, Racinos, Taxes, Tribal | Comments Off on Quote of the Day

Big legal bill for Steve Wynn; SLS Las Vegas craters

Posted on June 24, 2015 by David McKee

In case Steve Wynn is having second thoughts that maybe it was a bad idea to try and muzzle stock-picker James Chanos, a federal court Wynn Forbesmade it official. On top of two defeats in the courtroom, Wynn has been handed a $422,380 bill for Chanos’ legal expenses. Chanos had asked for six hundred dimes but, as John L. Smith puts it, “I’m guessing Wynn’s legal eagles didn’t brag to their client that they got him a nifty 25 percent discount.”

Chanos’ crime was basically to tell the truth about the volatility of the Macao casino business and its treacherous undercurrents. As though to Continue reading →

Posted in Colony Capital, Cosmopolitan, Entertainment, Genting, James Packer, Macau, Marketing, Massachusetts, MGM Mirage, Sahara, Sam Nazarian, Sheldon Adelson, SLS Las Vegas, Steve Wynn, The Mob, The Strip, Tribal, Wall Street | Comments Off on Big legal bill for Steve Wynn; SLS Las Vegas craters

Billion-dollar bonanza in Macao; Mob boss returns

Posted on June 24, 2015 by David McKee

Casino investment in the U.S. has largely been a bust for private equity firms. However, two funds — Silver Point Capital and Oaktree Capital Management — could be about to hit the jackpot in Macao. macau-studio-cityIt seems that Melco Crown Entertainment just secured a package of loans and credit lines. What do Lawrence Ho and James Packer plan to do with all that money, especially since they intend to draw down the loan portion immediately?

The answer is, buy out Silver Point and Oaktree, making Melco Crown the sole owner of Studio City, its rescue project on Continue reading →

Posted in Economy, International, James Packer, Lawrence Ho, Macau, Melco Crown Entertainment, MGM Mirage, Singapore, Stanley Ho, The Mob, Tourism, Wall Street | Comments Off on Billion-dollar bonanza in Macao; Mob boss returns

Election wins for Foxwoods, Golden Gaming; New boss at Beau Rivage

Posted on June 24, 2015 by David McKee

Almost lost in the excitement over the opening of Plainridge Park, in Plainview, is a little-reported event: New Bedford‘s vote on New_Bedfordcasino host-community status. To say that KG Urban Enterprises won is rather an understatement. It garnered 73% of votes cast, in a rout of anti-casino forces, who were evidently unmotivated to get out and vote. (Turnout was light: 21%.) This sets up a confrontation between KG’s partner, Foxwoods Resort Casino, and Neil Bluhm‘s Rush Street Gaming for the last casino license in Massachusetts.

Unless Bluhm or KG Urban can get their casino to Continue reading →

Posted in Current, Election, Foxwoods, Golden Gaming, Harrah's, Lyle Berman, Massachusetts, MGM Mirage, Mississippi, Neil Bluhm, Ohio, Penn National, Racinos, Regulation, Steve Wynn, Wall Street | Comments Off on Election wins for Foxwoods, Golden Gaming; New boss at Beau Rivage

Atlantic City fights back; Packer a good bet again

Posted on June 23, 2015 by David McKee

 

After seemingly being in shock from the stampede to put casinos in northern New Jersey, civic leaders of Atlantic City are starting to put up a fight. The terms of battle vary, with some dead-set against a breaking of the Boardwalk’s monopoly, and others saying the goal is to get as much money for Atlantic City out of outstate casinos as possible. Mayor Don Guardian took a hard-line stance, saying,  Continue reading →

Posted in Atlantic City, Economy, Hard Rock International, Internet gambling, James Packer, Macau, MGM Mirage, Mississippi, New York, Politics, Sheldon Adelson, Tropicana Entertainment | Comments Off on Atlantic City fights back; Packer a good bet again

Penn primed for Plainridge launch; Little tribal traction in Maine

Posted on June 23, 2015 by David McKee

Are executives at Penn National Gaming getting high on their own supply … of slot machines, that is? The industry’s desired average for Healeyslots is $200 but Penn is predicting a sky-high $500/slot/day at Plainridge Park, which opens tomorrow, inaugurating the casino epoch in Massachusetts. “I don’t see Plainridge getting that kind of money. Almost twice what Foxwoods does on its machines? I don’t think so,” Lasell College Assistant Professor of Political Science Paul L. DeBole told the Boston Globe. Even Penn’s most successful racino in Ohio ‘only’ does $290/VLT/day. Laudably, Penn will have problem-gambling counselors on site 16 hours a day.

Penn will also Continue reading →

Posted in Entertainment, Maine, Massachusetts, Penn National, Politics, Problem gambling, SLS Las Vegas, The Strip, Tribal | Comments Off on Penn primed for Plainridge launch; Little tribal traction in Maine

Quote of the Day

Posted on June 23, 2015 by David McKee

“It’s as if these regulations were drafted in a vacuum by someone who has no idea about the gaming industry and how it operates.” — David Bean, Puyallup Tribe council member, on the IRS‘ proposed lowering of the threshold on jackpot reporting, which is estimated to create a 300%-500% increase in “IRS lockups” of slot machines.

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

Massachusetts enters the fray; Delaware racinos press their case

Posted on June 19, 2015 by David McKee

It’s hard to believe but we’re only a few days from the opening of Plainridge Park Casino, bringing gambling to one of the last major, Penn Plainvilleuntapped markets in the U.S.: Massachusetts. While the Penn National Gaming property hasn’t been entirely free from controversy, it also comes with a ready-made player base in the form of the 7,500 Bay Staters who drive to Rhode Island every day for their fix of slot action.

Already it has literally paved the way for newly improved roads in Continue reading →

Posted in Atlantic City, Delaware, Economy, Florida, Genting, Macau, Massachusetts, MGM Mirage, Penn National, Racinos, Regulation, Rhode Island, Sheldon Adelson, Stanley Ho, Steve Wynn, Taxes, The Strip, Tribal | Comments Off on Massachusetts enters the fray; Delaware racinos press their case

Quote of the Day

Posted on June 19, 2015 by David McKee

“Because of your reporting, we’ve seen patrons using casinos and card clubs to conceal narcotics transactions, to move money in support of international fraud schemes, to launder real estate fraud money, or to transfer money for other illicit purposes.” — FinCEN Associate Director of Enforcement Stephanie Brooker, telling casino executives that the good news is that they’re doing a much better job of regulatory activity and the bad news is that their properties seem to be revealed as beehives of dodgy transactions.

Posted in Regulation | Comments Off on Quote of the Day

More grief for Uncle Carl; Bluhm backs down

Posted on June 18, 2015 by David McKee

Carl Icahn has won his gambit to take over Trump Taj Mahal but that doesn’t mean he and Unite-Here are all lovey-dovey. Although Icahn earlier called Trump Entertainment Resorts the most icahndistressed company he’s ever seen, he’s giving CEO Bob Griffin a reprieve and $15 million a year to fix up the Taj, starting with its exterior. However, slapping a new coat of paint on this house of cards won’t address the labor turmoil. Unite-Here continues to appeal the revocation of health benefits and pension contributions. Griffin and Icahn were so petty they even took away workers’ paid lunch breaks.

Icahn has positioned all of this as a necessary survival mechanism and has repeatedly threatened Continue reading →

Posted in Architecture, Atlantic City, Carl Icahn, Cordish Co., Harrah's, history, Maryland, MGM Mirage, Neil Bluhm, New York, Penn National, Regulation, Taxes, Trump Entertainment Resorts, Unite-Here | 2 Comments

Rock in Rio flops; Tighter slots in Maryland?

Posted on June 17, 2015 by David McKee

According to Vital Vegas, the first Strip outing of Rock in Rio might be its last, as the music festival may have lost as much as $28 million. Circus-Circus-picVital Vegas puts attendance at a dreadful 130,000 (out of a possible 320,000) and even the MGM Resorts International-friendly Las Vegas Review Journal places the head count at just 50% of capacity, with only 15% coming from locals. (I’m told that the music carried so loudly into some neighborhoods that a ticket was superfluous.) The poor showing can partly be attributed to Continue reading →

Posted in Australia, Cordish Co., Current, Entertainment, Florida, Harrah's, International, Japan, Macau, Maryland, MGM Mirage, Pets, Philippines, Politics, Racinos, Regulation, Singapore, South Korea, The Strip, Tourism, Tribal | Comments Off on Rock in Rio flops; Tighter slots in Maryland?

Kirk Kerkorian, 1917-2015

Posted on June 17, 2015 by David McKee

Here in Las Vegas, the impact of Kirk Kerkorian‘s death is still sinking in. A man known for self-effacing personal habits left the world as discreetly as he passed through it in his Ford Taurus, leaving accomplishments that far exceeded any personal ego. Tributes were quick to roll in. The Fremont Street Experience played a memorial video montage — a valediction as outsized as Kerkorian’s career. He is only the second casino owner to rate such a salute, Jackie Gaughan being the other. Aria has dedicated its I-15 video billboard to a series of Kerkorian portraits.

If there was an important casino on the Strip, Kerkorian bought it at some point or other. And if it didn’t exist, Continue reading →

Posted in Architecture, Atlantic City, Downtown, Harry Reid, history, Internet gambling, MGM Mirage, Mohegan Sun, Movies, Neil Bluhm, New York, Ohio, Penn National, Pennsylvania, Politics, Slot routes, Steve Wynn, Taxes, The Strip, Wall Street | 2 Comments

Quote of the Day

Posted on June 17, 2015 by David McKee

“What good does it do being rich? I can’t do what I want to do. I don’t like to get dressed up and go to see bankers. I hate that kind of thing.” — the late Kirk Kerkorian, to Dial Torgerson in “Kerkorian: An American Success Story.”

Posted in history, MGM Mirage | Comments Off on Quote of the Day

Mixed news from Atlantic City; More silliness from Trump

Posted on June 17, 2015 by David McKee

Atlantic City continued its paradoxical ways last month. The market as a whole suffered another big decline, down 10%. However, for CaesarsBallysACindividual operators, May was mostly good, with a same-store gain of 4%. (To see the blended impact of Internet and terrestrial gambling, look here.) The casinos were unlucky at the slots, with 11% less revenue on 8% less coin-in. Table play was 14% smaller but revenue was down only (?) 8%. Borgata, which grossed $52 million, suffered a rare bad month, down 5%, despite a 10% gain in slot winnings.Table play was up but the casino was spectacularly unlucky, suffering a 40% decline in winnings.

A new repositioning of Bally’s as a low-roller joint has Continue reading →

Posted in Architecture, Atlantic City, Boyd Gaming, Donald Trump, Harrah's, International, Internet gambling, Mohegan Sun, Scientific Games, Technology, Tilman Fertitta, Tribal, Tropicana Entertainment, Trump Entertainment Resorts, TV, Wall Street | 1 Comment

GLPI treads water

Posted on June 11, 2015 by David McKee

Top honchos from Gaming & Leisure Properties, including CEO Peter Carlino, recently met with J.P. Morgan analyst Joseph Greff.
CarlinoThey assessed the current state of regional gaming markets as no better than “okay” and predicted that the industry trend to come would be more consolidation, not regional expansion. When it was undergoing its REIT split-off from Penn National Gaming, GLPI executives bragged that the phone would be ringing off the hook from casino companies looking to make deals. That didn’t happen, unless you count the Casino Queen acquisition. Greff reports that “conversations have happened, but nothing has exceeded the introductory stage.”

As GLPI’s big gulp, its attempted takeover of Pinnacle Entertainment, the two sides were said to be Continue reading →

Posted in Economy, GLPI, Illinois, MGM Mirage, Pinnacle Entertainment, The Strip, Wall Street | Comments Off on GLPI treads water

Heavy online interest in Pennsylvania; New twist in Jersey expansion

Posted on June 10, 2015 by David McKee

Caesars Interactive sent Michael Cohen to Harrisburg, to educate Pennsylvania lawmakers in online gambling and demonstrate the safety features whereby underage players can be thwarted. Cohen’s presentation pleased lawmakers on both sides of the aisle but drew a squawk of protest from Mike Barley, of the Coalition Against Online Gambling, which looks suspiciously like a Sheldon Adelson stalking horse.

“When is enough enough,” Barley wailed, although we’ve never known Adelson to Continue reading →

Posted in Election, Harrah's, International, Internet gambling, Pennsylvania, Politics, Racinos, Regulation, Sheldon Adelson | Comments Off on Heavy online interest in Pennsylvania; New twist in Jersey expansion

Quote of the Day

Posted on June 10, 2015 by David McKee

“Indonesia is not going to have gaming. Malaysia is not going to have increased gaming. Vietnam is a giant question mark and doesn’t have Marina Baythat many players. So you are left with only Singapore and Malaysia, and Chinese individuals living in Indonesia. That’s really the source market for Singapore. If it can dig more into the Indian subcontinent, there’d be some significant demand coming out of that area. But with [Marina Bay Sands] operating at 99%, it is hard to bring more players in. Singapore will remain a saturated duopoly market.” — Vitaly Umansky, global gaming senior research analyst for Sanford C. Bernstein on the future of the Singapore market.

Posted in International, Sheldon Adelson, Singapore, Vietnam | Comments Off on Quote of the Day

Straub’s latest truce; Twin River readies for competition

Posted on June 10, 2015 by David McKee

Bitter foes Glenn Straub and ACR Energy Partners have agreed to make nice and keep the lights on (literally) at Revel, at least for the revel_0601short term. The brinkmanship between these two parties had reached such extremes that ACR cut power to Revel for three weeks, putting the property at risk for fire and  mold. When a previous truce was set to expire a month ago, the state intervened to order that ACR keep the juice flowing. Straub’s Polo North has to pick up the tab in return for two continuous megawatts of electricity and a standby diesel generator.The arrangement is to stay in place “until Continue reading →

Posted in Animals, Atlantic City, Environment, Glenn Straub, Harrah's, Illinois, Isle of Capri, Louisiana, Massachusetts, Penn National, Regulation, Revel, Rhode Island, Tilman Fertitta | Comments Off on Straub’s latest truce; Twin River readies for competition

Case Bets: Club Fortune, NFL, PokerStars

Posted on June 10, 2015 by David McKee

“Loose sluts!”, cries the grandmotherly-looking woman at 00:13 in this Club Fortune Casino commercial (so bad it never gets old). Those days may soon be over once Nevada Gold‘s purchase of Club Fortune closes. Having obtained the property for a relatively cheap $14 million, Nevada Gold is going to Continue reading →

Posted in Boulder Strip, Geoff Freeman, Internet gambling, PokerStars, Regulation, Sheldon Adelson, Sports | Comments Off on Case Bets: Club Fortune, NFL, PokerStars

Steady in Indiana

Posted on June 9, 2015 by David McKee

Gaming revenues were flat in Indiana last month, especially in the south, and this is a good thing. Why? Because it means that the Hoosier belterraState is absorbing the impact of competition from Ohio. Operators can also, thanks to Gov. Mike Pence‘s clemency, look forward to building new facilities, the sex appeal of which could bring even more business back over the state line from the Buckeye State.

Admittedly, only a couple of properties in the southern tier showed gains, like Hoosier Park‘s +2%. The big winner last month was Continue reading →

Posted in Ameristar, Boyd Gaming, Dan Lee, Harrah's, Indiana, Ohio, Penn National, Pinnacle Entertainment, Racinos, Tribal, Tropicana Entertainment | Comments Off on Steady in Indiana