Revel’s Faustian pact; Hope fades in Florida

Posted on April 22, 2015 by David McKee

Glenn Straub finally got what he wanted, the right to ixnay the contracts of all the tenants at Revel, aka Polo North. After much hesitation during the constipated bankruptcy sale, Judge Gloria Burns finally ruled against the leaseholders, meaning the brawl will probably spill over into state court, although Straub attorney Stuart Moskowitz says Straub’s object of desire is merely “reasonable lease adjustments.” Besides, what are the chances of Straub getting a whole new set of restaurateurs, nightclub operators, etc., in time for a summer reopening, especially if he wants to take advantage of new amenities and big-name outdoor concerts?

Straub isn’t faring so well on Continue reading →

Posted in Atlantic City, Environment, Florida, Glenn Straub, Politics, Racinos, Regulation, Revel, Steve Wynn, Tribal, Wall Street | Comments Off on Revel’s Faustian pact; Hope fades in Florida

Problems for the Pequots, Mohegans; Twin River looks north

Posted on April 22, 2015 by David McKee

A legislative attempt to add three Mashantucket Pequot/Mohegan tribal casinos in Connecticut is running into a buzz saw of legal problems … or at least questions. Since the Jepsencasinos are gift-wrapped for the tribes in question, state Attorney General George Jepsen (left) warns that they could violate the Equal Protection Clause of the U.S. Constitution. Jepsen was seconded by the Legislature’s Office of Legislative Research, which found problems with the bill within the Connecticut constitution also. According to The Associated Press, “In a recently released analysis of the bill, the office said a provision in Connecticut’s constitution stating ‘no man or set of men are entitled to exclusive public emoluments or privileges from the community’ has been referenced by the Connecticut Supreme Court when it invalidated state laws that grant privileges to individuals when there isn’t a valid public purpose.”

Saying that a casino has “a valid public purpose” beyond Continue reading →

Posted in Architecture, Foxwoods, Harrah's, Macau, Massachusetts, Mohegan Sun, Penn National, Politics, Racinos, Rhode Island, South Korea | Comments Off on Problems for the Pequots, Mohegans; Twin River looks north

Phua case goes “poof!”; Texas casinos a mission impossible

Posted on April 20, 2015 by David McKee

A federal case against an unlicensed, do-it-yourself sports book collapsed like a pup tent when a federal judge tossed out both the premise of an FBI search and, by extension, the Caesars Palaceevidence gathered therefrom. In a warrantless search, G-men cut the Internet access to Paul Phua‘s high-roller villa at Caesars Palace, then took a peek at the premises under the pretense (and guise) of being repairmen. Simply put, “The government violated the defendant’s Fourth Amendment rights,” said U.S. District Judge Andrew Gordon. While the case against Phua is still alive, it’s on life support.

As Judge Gordon wrote, “Permitting the government to create the need for the occupant to invite a third party into his or her home would effectively allow the government to conduct warrantless searches of the vast majority of residences and hotel rooms in America.” The best the government could do by way of pushback was for the prosecution’s Kimberly Frayn to argue, “There is not a constitutional right to Continue reading →

Posted in Atlantic City, Environment, Harrah's, Internet gambling, Iowa, Louisiana, Politics, Problem gambling, Racinos, Regulation, Texas, The Strip, Tribal | Comments Off on Phua case goes “poof!”; Texas casinos a mission impossible

Caesars’ ordeal drags on; Adelson wants more

Posted on April 20, 2015 by David McKee

Our long national nightmare — otherwise known as the Caesars Entertainment bankruptcy — will be with us a lot longer: six months, to be precise. Caesars has requested,
gary_loveman-copy_compand is expected to get, an extension until Nov. 15 to file its own reorganization plan without fear of it being superseded by rival parties. This is a relatively routine move and Judge Benjamin Goldgar is expected to grant Caesars’ request. “These Chapter 11 cases are also among the largest and most complex ever filed,” stated Caesars, in something of an understatement. The company also says it wants to wait for the outcome of an investigation into the company’s ledger-demain, whereby assets were shuffled between some of Caesars’ 173 subsidiaries.

The stock market reacted adversely to the news. TheStreetRatings went so far as to put a “sell” recommendation (very rare) on Caesars stock, citing “weak operating cash flow and generally disappointing historical performance in the stock itself … Despite any rallies, the net result is that it is down by 32.58%.”

On another front, Continue reading →

Posted in Atlantic City, Economy, Harrah's, Internet gambling, Macau, Massachusetts, Mohegan Sun, Penn National, Racinos, Regulation, Sheldon Adelson, Wall Street | Comments Off on Caesars’ ordeal drags on; Adelson wants more

Tightening the screws on Macao; While we were in recess

Posted on April 15, 2015 by David McKee

In what may come as bad news to casino operators, the Macao government is placing a quota on the number of mainland visitors the gaming enclave will allow per year: 21 million. On the HotelLisboaother hand, the government is pivoting towards a greater appeal to international visitors, giving with one hand what it takes away with the other. Having proposed this tourism cap, the Macanese government must send it to Peking for approval. Macao’s government is aiming for a 2:1 ratio of domestic to overseas visitors. Rationalized Secretary for Social Affairs & Culture Alexis Tam, “during the Chinese New Year there were 147,000 visitors per day. This number is well above the city’s capacity according to the [Institute for Tourism Studies] study and if this trend continues the quality of life of residents will be affected.”

The local government also remains set on Continue reading →

Posted in Atlantic City, Environment, Hard Rock International, Harrah's, LVCVA, Macau, Marketing, Ohio, Penn National, Pennsylvania, Regulation, Stanley Ho, Technology, Tourism | 2 Comments

Trump blocks progress in Atlantic City; Legal trouble for Penn

Posted on April 15, 2015 by David McKee

Although they enjoyed a same-store increase of 1% last month, Atlantic City casinos pulled in 14% less than last year at this time, grossing $191 million (more than some entire Midwestern Resorts ACstates, it should be noted). Twelve percent less coin-in at the slots drove a 14.5% revenue decrease, while a sharp (22%) diminution in table play produced an 18% declivity. Borgata — grossing $56 million — spectacularly outperformed the slot market, with coin-in up 16% and table revenue off only 3.5%. Luck wasn’t with the house, as table play was incrementally up. Gambling revenue rose 9% for the month. Borgata also enjoyed the lion’s share (32%) of $13 million in Internet-gaming monies. Tropicana Atlantic City (23%) passed both the Golden Nugget (22.5%, but ascending rapidly) and Caesars Interactive (21%) for second place, as cyber-gambling continues to gain acceptance.

Over at Trump Taj Mahal, CEO Bob Griffin continues to Continue reading →

Posted in Atlantic City, Boyd Gaming, Glenn Straub, Harrah's, Internet gambling, Kansas, Massachusetts, MGM Mirage, Mohegan Sun, Ohio, Penn National, Pennsylvania, Politics, Racinos, Regulation, Revel, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Trump blocks progress in Atlantic City; Legal trouble for Penn

Freeman takes aim; Pinnacle commands high price

Posted on April 15, 2015 by David McKee

Geoff Freeman continues his aggressive agenda at the American Gaming Association. In a move possibly intended to take the heat off American online casinos, he’ll calling for — and promising the AGA will take the lead in — a beatdown on illegal and merely shady forms of gambling, such as Continue reading →

Posted in Geoff Freeman, GLPI, Internet gambling, MGM Mirage, Mississippi, Pinnacle Entertainment, Regulation, Sheldon Adelson, Sports, Taxes, Wall Street | Comments Off on Freeman takes aim; Pinnacle commands high price

Revel: Crippled giant; Tough choice in Indiana

Posted on April 13, 2015 by David McKee

It may feel good for Glenn Straub to spit defiance (“We will never give in to blackmail. Let them dig their own grave, along with endangering other peoples’ lives.”) at the ACR power revel_0601plant that just cut off water and electricity to Revel but it’s a Pyhrric victory. All manner of bad things can happen to the mammoth casino-hotel while it’s powerless (and it will take as long as two weeks to reroute its systems into the adjacent Showboat grid), including burst pipes, mold formation and fire hazards that could turn the 47-story Revel into a real-life towering inferno. With its fire-suppression systems out of commission, Revel is racking up $5,000 a day in fines and has lost its certificate of occupancy.

ACR says it’s willing to Continue reading →

Posted in Architecture, Atlantic City, Economy, Glenn Straub, Indiana, Marketing, MGM Mirage, Politics, Revel, The Strip | 1 Comment

Pansy Ho on the campaign trail; Connecticut tribes optimistic

Posted on April 13, 2015 by David McKee

MGM China would probably prefer that its co-chairwoman, Pansy Ho, stay out of the headlines, considering the negative publicity she’s generated over the years. But she opened Pansy Ho 28up to the media this week, specifically the newspaper of which she is a director, The Standard, as well as to the magazine East Week. Her main talking point was that the government of Macao should give several additional years to the existing casino operators, whose licenses could be nationalized or re-bid (or renewed, of course) during the 2020-2022 period. Said Ms. Ho, “The fundamental principle should not be altered. Otherwise, how can Macao attract long-term investments? If the payback period is too short, no one will be interested.”

As heiress to Macao’s first family of gambling, Ms. Ho speaks with Continue reading →

Posted in Downtown, Entertainment, Foxwoods, Hooters, Internet gambling, Macau, Massachusetts, MGM Mirage, Mohegan Sun, Movies, Palms, Pansy Ho, Pennsylvania, Regulation, The Strip, Tourism | Comments Off on Pansy Ho on the campaign trail; Connecticut tribes optimistic

Quote of the Day

Posted on April 13, 2015 by David McKee

Revel_0966“This is the last thing we want. But this guy … I don’t know what to believe. He wants us to provide free power. Glenn Straub doesn’t want to pay anything. He bought Showboat and he thinks he’s going to be sending sea turtles down the Boardwalk with electrical cords.” — ACR attorney Timothy Lowry on the cutoff of water and electric power to Revel, a move with innumerable dangerous potentialities.

Posted in Atlantic City, Glenn Straub, Revel | Comments Off on Quote of the Day

No megaresorts in Florida’s future; Big experiment at Sands Bethlehem

Posted on April 8, 2015 by David McKee

Bowing to political realities, Florida state Rep. Dana Young (R, left) has Slim-Fasted her omnibus gambling-expansion bill from 300 pages to 60. Among the items gone into the dana youngshredder was a provision for two casino megaresorts in South Florida. So, for another year, the door to the Sunshine State is slammed in Las Vegas Sands‘ face. The provisions that remain are of a decidedly smaller scale, such as allowing dog tracks to convert to racinos that don’t actually conduct races. A proposal to put racinos in Palm Beach County and Lee County is gone but a cap on future gaming permits remains. Over in the state Senate, where a one-year extension of the Seminole Tribe casino compact is being pondered, an amendment has been offered that would also permit ‘decoupling’ of dog racing from other forms of wagering. Another amendment would convert Palm Beach Kennel Club to a racino. Rumor has it the Seminoles might keep dealing blackjack even without a new compact, but that seems like asking for trouble with the state.

* Sands, meanwhile, is unveiling plans for Sands Bethlehem that would Continue reading →

Posted in Animals, Atlantic City, Entertainment, Florida, Genting, Macau, Marketing, Massachusetts, New Hampshire, Pennsylvania, Politics, Racinos, Sheldon Adelson, Singapore, Taxes, Technology | 1 Comment

Good year for Atlantic City

Posted on April 8, 2015 by David McKee

Boardwalker boosters like Glenn Straub who says Atlantic City‘s still got plenty of life in it can point to today’s headlines: The city’s casinos increased their operating profit last year by trump-taj maha45%. Unless you count the defunct Revel (-$48.5 million) and Trump Plaza (-$13 million), only one casino finished in the red. It was — you guessed it — Trump Taj Mahal, where bungling CEO Bob Griffin turned 2013’s $20 million profit into a $1 million loss. Heck, even the Showboat, before Gary Loveman smothered it in the crib, posted a $13 million profit. Caesars Interactive managed to lose that money right back, registering a $12.5 million deficit. While the three remaining Caesars Entertainment casinos saw profitability tighten, most particularly at Bally’s Wild Wild West, all were safely (?) in the black.

The slimmest profit was Resorts Atlantic City‘s $2.5 million, a long distance from Continue reading →

Posted in Atlantic City, Boyd Gaming, Economy, Entertainment, Glenn Straub, Harrah's, Internet gambling, Marketing, MGM Mirage, Mohegan Sun, New York, Revel, Tilman Fertitta, Tourism, Trump Entertainment Resorts | 1 Comment

Misery in Macao; Penn’s good fortune

Posted on April 7, 2015 by David McKee

Macao took such a hard hit last month that distinction lies not in which casino did best but whose business was least bad. And, with the territorial government promising to help Peking MGM_Cotaifurther ratchet up its anti-graft campaign, Operation Skynet, recovery seems a long ways away indeed. “Through enhancing communication and cooperation with mainland authorities… and supporting the fugitive manhunt and asset recovery activities, the [Commission Against Corruption] will exert the best efforts to prevent Macao from turning into a transit point or destination for illicit money outflows and corrupt officials fleeing the mainland,” said government minister  Continue reading →

Posted in Boyd Gaming, Economy, GLPI, Hard Rock International, Harrah's, Illinois, Macau, MGM Mirage, Neil Bluhm, Ohio, Penn National, Regulation, Sheldon Adelson, Steve Wynn | Comments Off on Misery in Macao; Penn’s good fortune

Paradox in Maryland; Otter saves “instant racing”

Posted on April 7, 2015 by David McKee

While its competitors dealt with a variety of revenue declines, despite posting a record amount of revenue, Horseshoe Baltimore was up in March, grossing a best-yet $25 Harrahs-Baltimore-renderingmillion. On a statewide basis, revenue was 17% higher last month. However, casinos not named “Horseshoe” bore a collective 15% revenue decline. From the standpoint of Caesars Entertainment, Horseshoe continues to disappoint, coming up short of revenue projections of $31 million a month. The fact that it’s growing the Maryland market must provide some consolation, though.

Those March numbers at Horseshoe certainly weren’t Continue reading →

Posted in Cordish Co., GTECH, Harrah's, Horseracing, Idaho, IGT, Maryland, Penn National, Racinos, Regulation, Reno, Tribal, World Series of Poker | Comments Off on Paradox in Maryland; Otter saves “instant racing”

Who is Glenn Straub?; Tribal desperation in Texas

Posted on April 7, 2015 by David McKee

He’s a specialist in buying and (sometimes) turning around distressed properties, it would seem. He’s also characterized as a hard-charging businessman who leaves bruised feelings in Revel_0966his wake. “He’s not someone who’s going to consider the other person’s point of view. If you want to deal with Straub, you have to deal with him from his point of view. It’s usual, when you speak to people, you talk about things like humanity and compassion and all of those things. They’re not in his lexicon” says one person who’s collided with the mogul, already famous for his Delphic utterances in re Revel, whose sale closed today at four cents on the dollar. He’s also known as someone who specializes in

Continue reading →

Posted in Atlantic City, Florida, Glenn Straub, Louisiana, Politics, Revel, Texas, Tribal, Wall Street, West Virginia | Comments Off on Who is Glenn Straub?; Tribal desperation in Texas

Reid-Adelson lovefest; Massachusetts meddling

Posted on April 7, 2015 by David McKee

Now that he’s no longer standing for reelection, Sen. Harry Reid (D) has flung himself fully into the arms of Sheldon Adelson, calling for a ban on online gambling that might even harryreid_t178extend to Nevada‘s fledgling I-poker industry (although Reid’s being wildly ambiguous on that last point). Isn’t it nice to see that Senate Majority Leader borrowing domestic policy from China? Adelson flunky Andy Abboud added to the nonsense by arguing that online gambling should be outlawed because it is doing poorly financially. So what? If Abboud is right, free-market forces will solve the problem without Congress having to lift a pinkie.

Of the various attempts to outlaw Internet gaming being pondered in Congress, at least Sen. Lindsey Graham (R) is amenable to a carve-out for online lotteries, which often use out-of-state servers. But Adelson and water-carrier Rep. Jason Chaffetz (R) will have no such talk of compromise. Adelson wants to protect his precious casinos and Chaffetz is the most vocal of his lickspittles on Capitol Hill.

* Once its casinos are up and running, Massachusetts is going to be the most paternalistic Continue reading →

Posted in Atlantic City, CityCenter, Harry Reid, Illinois, Internet gambling, Macau, Massachusetts, MGM Mirage, Politics, Regulation, Rhode Island, Sheldon Adelson, Taxes, The Strip, Wall Street | Comments Off on Reid-Adelson lovefest; Massachusetts meddling

Quote of the Day

Posted on April 6, 2015 by David McKee

revel_0323“We’ve spent six months where we could have been building Atlantic City. We’ve been waiting for Godot instead of building Atlantic City, and Godot isn’t showing up, with all due respect to any attorneys representing Godot.” — Glenn Straub attorney Stuart Moskowitz on the long-running Revel soap opera.

Posted in Atlantic City, Glenn Straub, Revel | 1 Comment

Disney dives into gambling; Death at M Resort

Posted on April 6, 2015 by David McKee

Steamboat WillieGambling really is the all-American pastime now that Walt Disney Co. is buying a $250 million piece of for-money fantasy league DraftKings. The agreement commits Disney to buy $500 million in advertising time and imagery on a variety of ESPN platforms. At present, the ESPN airwaves are awash with ads for FanDuel, featuring socially challenged males boasting of their fantasy-league prowess. (Do their imaginary girlfriends know they’re doing this?) FanDuel will get pushed back into the queue for airtime now that Disney has allied with DraftKings.

I knew Steamboat Willie plied the rivers but Continue reading →

Posted in Florida, Harrah's, M Resort, Penn National, Politics, Sports, Tribal, TV | 1 Comment

Wynn Everett halted, board election blasted

Posted on April 6, 2015 by David McKee

It looks like Wynn Resorts jumped the gun, purchasing land from the MBTA without getting the go-ahead from Secretary of Energy & Environmental Affairs Matthew Beaton Massachusetts Gamblingbeforehand. Although Wynn was found to be “suitable on substantially all of the 59 conditions,” construction work has to be stopped while Beaton reviews the MBTA land transfer, suggesting that the acreage be placed in escrow in the meantime. He’s also ruled that Wynn must coordinate its vehicular-access plans with Boston‘s renovation of roads in the Sullivan Square area, a federally funded project that didn’t anticipate having a casino megaresort plopped down next door. That could be a very thorny negotiation, if it happens, seeing as Beantown Mayor Martin J. Walsh has Continue reading →

Posted in Massachusetts, Steve Wynn, Transportation, Wall Street | 1 Comment

Our long Revel nightmare is over; Big brawl at Resorts World

Posted on April 6, 2015 by David McKee

It only took five tries but it looks like Revel finally belongs to Glenn Straub, the latter having dropped his insistence that it be sold to him free and clear. Now we’ll see if he’s like Straubthe dog who caught the car or he has a winning formula for a property that has done nothing but lose since Day One. Judge Gloria Burns ruled, “The consideration to be provided by the purchaser pursuant to the agreement is fair and reasonable; is the highest or otherwise best offer for the assets; will provide a greater recovery for the debtors’ creditors than would be provided by any other practically available alternative; and constitutes reasonably equivalent value and fair consideration under the Bankruptcy Code.” Sighed Burns, “there’s no funding left” to prolong the bankruptcy sale.

As for the vexatious issue of Continue reading →

Posted in Atlantic City, Carl Icahn, Genting, Glenn Straub, New York, Revel, Trump Entertainment Resorts | 1 Comment