More trouble for Caesars; Slot routes corrode casino revenues

Posted on May 12, 2015 by David McKee

Caesars Entertainment will soon have a new unsecured creditor — Uncle Sam. The company is trying to negotiate a settlement with the Financial Crimes Enforcement caesars-palace-02Network. The tab for making things right with The Man could run to $20 million and Caesars isn’t out of the woods yet: a federal grand jury probe into the company continues. However, “Uncle,” as he’s referred to in The Friends of Eddie Coyle, might be lucky to collect a dime of that $12 million-$20 million. As the newest unsecured creditor, the Treasury Department takes a spot at the back of the long line of people trying Continue reading →

Posted in Dan Gilbert, Environment, Harrah's, Illinois, Missouri, Ohio, Pennsylvania, Racinos, Regulation, Slot routes, The Strip, West Virginia | 1 Comment

Pence ultimately gets it right

Posted on May 11, 2015 by David McKee

WDRB 41 Louisville News

After months of Hamlet-worthy public agonizing, Indiana Gov. Mike Pence (R) did the right thing by doing nothing. Satisfied that it was not his never-defined “expansion” of gambling, he decided to let a casino-reform bill that enjoyed heavy legislative support become law without his signature. One could fume about Continue reading →

Posted in Economy, Indiana, Kentucky, Macau, Politics, Racinos, Regulation, Sheldon Adelson | Comments Off on Pence ultimately gets it right

Hooters sold (again); Fat lady sings for Opera House

Posted on May 11, 2015 by David McKee

If someone with deep pockets wants to gamble on a big recovery on the Las Vegas Strip, then Spectrum Group Management would like to have a chat with them. Spectrum
hooters-picholds title to optimistically slugged “Project Jackpot,” just north of MGM Grand. The collection of commercial properties, described as “a hodgepodge of shopping, parking lots, chain restaurants and a motel” was written down to $220 million in 2008 and is probably even cheaper now, given the deflation of land prices on the Strip. If the location sounds vaguely familiar, it’s because it was to be the site of Robert F.X. Sillerman‘s high-end, Elvis-themed megaresort. That project not only never Continue reading →

Posted in Ameristar, Dotty's, Genting, Harrah's, Hooters, Isle of Capri, MGM Mirage, Missouri, North Las Vegas, Penn National, Pinnacle Entertainment, Steve Wynn, The Strip, Tropicana Entertainment, Wall Street | 2 Comments

Quote of the Day

Posted on May 11, 2015 by David McKee

Wynn on Fox“What will the second quarter look like in Las Vegas? Weak. Did you hear me? Weak. This notion of a big recovery is a complete dream.” — Steve Wynn, waxing pessimistic on Las Vegas’ near-term prospects.

Posted in Economy, Steve Wynn, The Strip, Tourism | 1 Comment

Ohio: Racinos get a leg up; Pro b-ball for Vegas?

Posted on May 11, 2015 by David McKee

Business is booming for Penn National Gaming in the Buckeye State. Not only are its two casinos up 5.5% from last year — 4% at Hollywood Toledo and 7% at former Columbus exteriorunderachiever Hollywood Columbus — but it continues to get impressive per-slot bang for its bucks at its racinos. By contrast, Dan Gilbert‘s two Horseshoe-branded casinos are slumping (-5%), with Horseshoe Cleveland falling behind Hollywood Columbus for the highest gross in the state. Hard Rock Rocksino (+18%), meanwhile, has zoomed past Gilbert’s ThistleDown Racino (down 8%) and into third place. (Is it mere coincidence that Continue reading →

Posted in Dan Gilbert, Hard Rock International, Harrah's, International, Internet gambling, Maryland, Ohio, Penn National, Pinnacle Entertainment, Racinos, Sports | Comments Off on Ohio: Racinos get a leg up; Pro b-ball for Vegas?

For sale (?): One casino, heavily used

Posted on May 8, 2015 by David McKee

We have information that we trust, but have not been able to confirm. It concerns the immediate future of Hooters Casino Hotel. Never has there been such an inverse Hootersproportional ratio between the quality of a casino and speculation about its next incarnation. Anyway, a reliable source says that Junius Real Estate Partners bought the property on April 30. When we called Junius, Executive Director Michael Lynch would neither confirm nor deny the purchase. So far, the Clark County Assessor‘s Web site shows no transfer of title … yet.

It was only last April 22 that VegasChatter.com went to print with Continue reading →

Posted in Hooters, The Strip, Wall Street | 1 Comment

Carey: raptures and wreckage; Vegas’ affordability tested

Posted on May 8, 2015 by David McKee

Our most giddy local gossip merchant experienced multiple verbal orgasms when describing Mariah Carey‘s Caesars Palace residency show. Even the Second Coming of Caesars PalaceJesus Christ would have a hard time living up to this nonstop gush. (Helpful hint: If Carey has been singing “vocal chords [sic!]” she’s capable of feats bordering on the supernatural.) Where the Las Vegas Sun experienced The Rapture, the New York Times saw a train wreck. Probably the most usable promotional blurb will be “looking away is never the right choice.” Comparing Carey’s vocal cords to “decaying manufacturing machinery,” reviewer Jon Caramanica raised the spectre of lip-synching when confronted by pristine high notes amidst “a largely difficult two hours” that reprised her number-one hits, with many a downward transposition along the way.

Apparently being the home of Celine Dion is not enough to preserve Caesars from the reputation of being a place where Continue reading →

Posted in Entertainment, Florida, Harrah's, Massachusetts, MGM Mirage, Politics, Sports, The Strip, Tourism, Transportation, Tribal | 1 Comment

Why is this man smiling?; Adelson’s latest antics

Posted on May 8, 2015 by David McKee

Bankruptcy’s been good to Caesars Entertainment. For CEO Gary Loveman‘s final earnings call prior to yielding his title to Mark Frissora, the company Loveman_x220gift-wrapped him a $7.6 billion profit on net revenue of $1 billion. If that sounds surrealistic, it’s due to a one-time, $8 billion gain achieved by shuffling off Caesars Entertainment Operating Co. (aka “Bad Caesars”). Even the red-headed stepchildren of the latter posted a 33% increase in cash flow … it’s amazing what you can do when you stop paying interest on your debt. In other words, don’t expect $52-a-share yields in every quarter going forward.

You’d almost think that 1Q15’s results were choreographed so that Loveman could go out in a blaze of glory, riding the best quarter since 2008. Only the Las Vegas Review-Journal’s Rick Velotta cut to the chase, merging “good” and “bad” Caesars numbers to discover Continue reading →

Posted in Atlantic City, Harrah's, Internet gambling, Maryland, Penn National, Pennsylvania, Politics, Regulation, Scientific Games, Sheldon Adelson, Steve Wynn, The Strip, Wall Street, West Virginia | Comments Off on Why is this man smiling?; Adelson’s latest antics

Illinois’ news bad even when it’s good

Posted on May 8, 2015 by David McKee

Illinois‘ casino lobby hopes to stave off (potentially disastrous) expansion, currently working its way through the state house. Unfortunately, last month’s results didn’t give it Illinoismuch ammunition. Revenues were down only 1%, which in any other context would be relatively good news. Expansion proponents will point to it as evidence that the Illinois market has stabilized, shaken off the debilitating effects of slot routes and is ripe for more casinos — and racinos. Revenue in southern Illinois was actually up 2%, but softness in the northern tier of the state offset that gain.

Penn National Gaming‘s long-suffering Argosy Alton staged a 12% comeback and the newfangled version of Harrah’s Metropolis rose 6%. Against this, Gaming & Leisure Properties‘ Casino Queen continued to decline, off 3.5%. Mid-state, Boyd Gaming‘s Par-A-Dice failed to produce the stable revenues projected Continue reading →

Posted in Boyd Gaming, Derek Stevens, Downtown, GLPI, Harrah's, Illinois, Kansas, Neil Bluhm, Oscar Goodman, Penn National, Riviera, Slot routes, Sports, Wall Street | Comments Off on Illinois’ news bad even when it’s good

Steve Wynn talks, we listen

Posted on May 5, 2015 by David McKee

Elaine Wynn finds herself underwriting a Steve Wynn colloquy with Jon Ralston. (We may have “the Adelson primary” but we also have “the Ralston primary.”) Bet she didn’t see that coming. As for Steve, he can be combative, God knows, but Ralston catches him in one of his expansive moods.

Posted in Economy, Election, Harry Reid, Macau, Steve Wynn, Taxes, TV | Comments Off on Steve Wynn talks, we listen

Well done, Horseshoe; Hard Rock gets hacked

Posted on May 5, 2015 by David McKee

Last week, Horseshoe Baltimore found itself a sitting duck during the civil disturbances that followed the death of Freddy Gray. With police imposing a 10 p.m.-5 Horseshoe Baltimorea.m. curfew, Horseshoe had no choice but to curtail its operating hours, closing at 9 p.m. for five nights. Since the casino is struggling and parent company Caesars Entertainment is in bankruptcy (although not the subsidiary that owns the plurality of Horseshoe Baltimore), management would have a very good excuse not to pay its employees for the hours the casino was dark.

This is where management rose to the occasion, Continue reading →

Posted in Cordish Co., Dan Gilbert, Georgia, Hard Rock International, Harrah's, Maryland, MGM Mirage, South Carolina, Warner Gaming | Comments Off on Well done, Horseshoe; Hard Rock gets hacked

Crystals for sale again; Hit-and-run Sheldon

Posted on May 5, 2015 by David McKee

MGM Resorts International isn’t hurting for cash, having just posted a $170 million profit for 1Q15, far outstripping analysts’ projections (and despite an 11% falloff due crystalsto Macao). However, its Crystals shopping mall is back on the market, carrying a $1 billion price tag. The protracted absence of the Conexpo-Con/Agg show — not due back until 2017 — was another hurdle MGM overcame. The company also achieved a benchmark: the first-ever dividend payout on CityCenter to the tune of $400 million. You can say that the ‘new urbanism’ experiment was a long-shot bet by CEO Jim Murren that finally came in.

Murren wasn’t busting any numbers out on Continue reading →

Posted in Economy, history, Macau, MGM Mirage, Riviera, Sheldon Adelson, SLS Las Vegas, Sports, The Strip, Westgate LV | Comments Off on Crystals for sale again; Hit-and-run Sheldon

Quote of the Day

Posted on May 5, 2015 by David McKee

Riviera“The amazing thing about Las Vegas is how soon it forgets itself because it keeps reinventing itself.” — Splash choreographer Jeff Kutash on the closing of the Riviera, which took place at noon yesterday.

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

Chicago casino push gathers steam

Posted on May 4, 2015 by David McKee

It’s been a while since we’ve heard about a casino in Chicago but that doesn’t mean Mayor Rahm Emanuel (D, below) has given up. Far from it. He’s looking at a $839 million pension

Emanuelobligation and a $300 million budget shortfall. Put that together and it spells “casino,” and Mayor Emanuel is launching a full-court press. Gov. Bruce Rauner (R) is a gambling opponent but he’s also a realist, expected to be willing to deal. Emanuel’s real problem is conflicting agendas in the statehouse, where gambling money is seen as the answer to the state’s own budgetary woes.

State Senate President John Cullerton (D) has put his support behind state Sen. Terry Link‘s bill to incept a city-owned in Chicago. But, in order to get what he wants, Emanuel would also have to accept additional new casinos in Lake County, Rockford and Danville, plus five racinos. A more circumspect — but anathema to Emanuel — pair of bills would create a state-owned casino in the Windy City. Link characterizes the negotiations as precarious: “We’ve just received another proposal from the city. We’re Continue reading →

Posted in Cirque du Soleil, Economy, Entertainment, Illinois, MGM Mirage, Politics, Racinos, Slot routes, The Strip | Comments Off on Chicago casino push gathers steam

Ohio casinos: Half a loaf better than none; Brighter days for Macao?

Posted on May 4, 2015 by David McKee

Ohio cities are trying to use casino revenues to keep pace with Gov. John Kasich‘s austerity regime — and partly succeeding. “It is an important part of the budget, particularly Kasich_Johnwhen you look at the fact the state has eliminated almost $13 million in local government funds to the city of Toledo. Thank God we at least had the casino,” said Finance Director George Sarantou. Still, the tax revenues the casinos are bringing in — like Hollywood Toledo‘s $5.6 million — can’t keep pace with the state’s cutbacks. State grants to Toledo have fallen from $21 million in 2009 to $8 million.

Blame some of it, ironically, on casino proponents. Penn National Gaming, shamelessly exaggerated revenue projections, predicted a $651 million windfall. The Department of Taxation and Office of Budget & Management was scarcely more conservative, predicting $643 million. Instead, casinos and racinos generated Continue reading →

Posted in Economy, Environment, history, Macau, Melco Crown Entertainment, MGM Mirage, Ohio, Penn National, Philippines, Racinos, Sheldon Adelson, Steve Wynn, Taxes, Wall Street | Comments Off on Ohio casinos: Half a loaf better than none; Brighter days for Macao?

MGM: The lion meows; GLPI: Still hungry

Posted on May 4, 2015 by David McKee

MGM Resorts International needed to increase net revenue this past quarter by 2% to meet Wall Street forecasts and offset inflation. Instead, revenue stayed flat and the Leo the MGM Grand MacauLion came in $33 million on cash-flow forecasts and down $12 million on MGM Macau net revenues. Among the bright spots were MGM’s low-end Las Vegas Strip properties, whose revenue per available room rose 4%. Not so good were “weak” table hold on the Strip and Macao cash flow that didn’t even match the most recently adjusted forecasts. VIP player volume in the Chinese enclave was off by a staggering 51%.

While Deutsche Bank had expected Strip net revenue of $1.33 billion, it had to settle for Continue reading →

Posted in CityCenter, Economy, GLPI, Louisiana, Macau, Maryland, MGM Mirage, Penn National, Pinnacle Entertainment, The Strip, Wall Street | Comments Off on MGM: The lion meows; GLPI: Still hungry

The world according to Wynn

Posted on May 1, 2015 by David McKee

Nobody likes a sore winner and Steve Wynn has nothing but unkind words for Elaine Wynn, a week after she was voted off the Wynn Resorts board. His dismissive attitude toward her criticisms of the board’s composition makes me skeptical that we’re going to see much in the way of diversity on that august (and very white, very male) body. Also, despite having been pummeled by government policy in China, Wynn warbles a sweet serenade to Peking and blames his problems on Continue reading →

Posted in Economy, Election, Macau, MGM Mirage, Sheldon Adelson, Sports, Steve Wynn, The Strip | 1 Comment

Boyd shatters expectations; Dover Downs flounders

Posted on May 1, 2015 by David McKee

Compared to Steve Wynn‘s gloom — and sapped stock price — about Las Vegas’ immediate economic prospects earlier this week, Boyd Gaming CEO Keith Smith was bullish on Sin City. And why not? Boyd suncoast-picreported profits of 31 cents a share, exponentially higher than Wall Street‘s dime-a-share consensus. Citing a 3% reduction in local cash flow, J.P. Morgan analyst Joseph Greff basically yawned at the results, maintaining his “neutral” rating on the stock. Not even above-expectation results at every outlying Boyd jurisdiction, including 12% at Borgata, was enough to move Greff.

Increased pedestrian traffic in Downtown Vegas, cheaper jet-fuel costs and increased Continue reading →

Posted in Architecture, Boyd Gaming, Delaware, Downtown, Economy, Iowa, Kansas, Louisiana, Planet Hollywood, Racinos, Sports, Taxes, The Strip, Tourism, Wall Street | 1 Comment

Quote of the Day

Posted on May 1, 2015 by David McKee

“If you were planning to see the Duck Dynasty inspiration, Duck Commander Musical at the Rio, you best get the lead out. I’m hearing it’s operating on a wing and a prayer. It opened two weeks ago.” — Las Vegas Review-Journal columnist Norm Clarke. Call it ‘The Revenge of Longmire,’ sacrificed on the altar of the cretinous Robertson klan, er, clan.

Posted in Cretins, Entertainment, Harrah's, TV | 1 Comment

Wynn frustrated with Macao; Adelson vs. Adelson

Posted on April 30, 2015 by David McKee

“Macau giveth and Macau taketh away for Wynn Resorts.” With that sentence the Las Vegas Review-Journal‘s Richard Velotta pithily summarized the precipitous reliance that Wynn ForbesWynn and other Macanese operators have on that unpredictable market. “Our hopes for a turnaround during Chinese New Year turned out to be incorrect,” said CEO Steve Wynn, announcing a first-quarter loss of $45 million. He added that he’d even be satisfied with a flat 2Q15 but isn’t anticipating one. Given the Macao-heavy tilt of Wynn Resorts’ balance sheet, a 2% improvement in Las Vegas doesn’t count for much against a 38% decline in China (with VIP play down 52%), where the forecast is clouded by social unrest and a continuing government campaign to root out graft.

Wynn blamed some of his problems on a “cloudier” atmosphere in Macao — and he wasn’t referring to the air pollution. Mentioning delays in a light-rail project that prompted a government official to publicly apologize, the CEO said,  Continue reading →

Posted in Economy, history, Macau, Regulation, Sheldon Adelson, Steve Wynn, The Strip, Wall Street | 1 Comment