Murren takes sanguine view; Straub’s struggles

Posted on April 30, 2015 by David McKee

With MGM Resorts International having rejected one REIT proposal, in part because it relied too much on asset sales, Union Gaming is teeing up another. It’s not providing Jim-Murrenspecifics but says it would provide “additional financial flexibility without the disruption of a major reorganization that could limit longer-term growth prospects for the company.” That sounds like code for saying that more money would remain available for expansion and for capex maintenance, serious concerns when casino companies contemplate REITs.

Meanwhile, CEO Jim Murren seems to be preparing for the worst with regard to online gambling. He pooh-poohed disaster scenarios if Internet betting is nixed — and if sports betting spreads to other states, even if MGM isn’t as well positioned as, say, Continue reading →

Posted in Atlantic City, Boyd Gaming, Glenn Straub, Harrah's, Internet gambling, Japan, Macau, MGM Mirage, Politics, Revel, Sheldon Adelson, South Carolina, Sports, Technology, Transportation, Wall Street | Comments Off on Murren takes sanguine view; Straub’s struggles

The perils of Pence; Court prods Caesars

Posted on April 30, 2015 by David McKee

Indiana‘s casinos are now officially at the mercy of Gov. Mike Pence (R). The Hoosier State’s General Assembly passed a compromise bill that has something for the casinos (transplanting Penceto terra firma) and something for Pence, namely a five-year moratorium on live dealers at the state’s two racinos. Whether that will be enough, nobody knows except Pence, whose views on the legislation have been exquisitely opaque. The mere fact that the moratorium would end a few days before Pence’s second term might be enough to make him reach for his veto pen, even though the bills passed both houses with decisive majorities. Besides, Pence is weighing a presidential run, which requires a certain amount of pandering to the anti-gambling crowd. However, he could simply choose to let the bill become law without his signature, sparing himself the embarrassment of a veto override. All he has to do is “forget” it for a week.

Casinos get to keep their free-play deduction tax deduction and it’s been bumped up to $7 million apiece, from Continue reading →

Posted in Atlantic City, Entertainment, Harrah's, Illinois, Indiana, Planet Hollywood, Politics, Racinos, Riviera, Taxes, The Strip, Tribal, Tropicana Entertainment | Comments Off on The perils of Pence; Court prods Caesars

MayPac: Winners and losers; Adelson, Wynn take big hits

Posted on April 30, 2015 by David McKee

Not a punch has been thrown yet but already we know some things about the outcome of the hype-driven Floyd “Money” Mayweather and Manny “Pac-Man” Pacquiao fight, mgm-picincluding the fact that with guaranteed purses for both fighters, they win just by showing up. Heck, “Money” over there could throw the fight and still collect 60% of the total purse. The losers include hotels, which are seeing an average drop of $150 in ADRs as consumers realize just how limited access even to closed-circuit feeds of the fist-fest are going to be: exclusive to MGM Resorts International and already sold out.

Who’d have thought Arizona Charlie’s could charge Continue reading →

Posted in Economy, Macau, Massachusetts, MGM Mirage, New Hampshire, Politics, Sheldon Adelson, Sports, Steve Wynn, The Strip, Tourism | Comments Off on MayPac: Winners and losers; Adelson, Wynn take big hits

Nothing’s easy at Revel; Death sentence for Harrah’s Tunica

Posted on April 29, 2015 by David McKee

“What am I going to do with this stuff with no electricity, no heat, no air conditioning? These people just give me so many roadblocks.” So complained Glenn Straub after New Jersey‘s revel_0606Division of Gaming Enforcement ordered him to post guards on Revel‘s dormant slot machines. One understands his frustration, as reviving Revel constantly creates new sets of difficulties. The latest wrench in the works is that the gaming license has been deemed non-transferable, meaning Straub will have to apply for one of his own … although perhaps it was naive of him to expect otherwise. And if that were not enough, he has to sort out the fate of Stockton University‘s Island Campus (aka the Showboat), school President Herman Saatkamp having stepped out in disgrace after failing to anticipate that Trump Entertainment Resorts would dust off an ancient Continue reading →

Posted in Architecture, Atlantic City, Genting, Glenn Straub, Harrah's, Mississippi, Regulation, Revel, Sheldon Adelson, Singapore, Trump Entertainment Resorts | 1 Comment

Penn nabs the Trop; Smog City

Posted on April 29, 2015 by David McKee

After years of hinting, feinting and fanning the flames of speculation, Penn National Gaming went out and bought its long-desired Strip casino: Tropicana Resort & Casino. TROPICANA VIEW 1B_LO 042010The old gal has had difficulties keeping up with the times but Union Gaming analyst Chris Jones called the purchase “an absolutely massive deal for Penn National.” The company’s loyalty-program customers will no longer have to stay 10 miles south of the Strip, at M Resort, which CBRE Group broker Michael Parks called “not the Vegas experience a lot of out-of-town people are looking for.” CEO Alex Yemenidjian and owner Onex Corp. bought the Trop in 2011 for $250 million and, factoring in $180 million Continue reading →

Posted in Alex Yemenidjian, Carl Icahn, Environment, Fontainebleau, GLPI, M Resort, MGM Mirage, Penn National, Wall Street | 2 Comments

Quote of the Day

Posted on April 29, 2015 by David McKee

riviera-pic2“Outside the cabaret now called Le Bistro Lounge, however, the Riviera looked seedy, its decor suggesting that Jimmy Carter was still in the White House: pinball machines, worn carpet, old men in wheelchairs and oxygen masks joylessly playing the slot machines.” — the Los Angeles Times’ John M. Gliona, chronicling the waning days of one of the Strip’s last dowagers.

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

Tomato cans KO S&G

Posted on April 29, 2015 by David McKee

As a growing anticipation of mob violence grips Las Vegas in advance of the “Pretty Boy Floyd” Mayweather/Manny Pacquiao fight, I’m at work on a feature about fight security. That’s taken me away from S&G duty but I’ll back soon, especially since Penn National Gaming has pounced on the Tropicana Las Vegas, bringing the prospect of a firm hand at the property’s tiller.

Posted in Alex Yemenidjian, Penn National, Tropicana Entertainment | Comments Off on Tomato cans KO S&G

Macao casinos feel the heat; $41 million jackpot voided

Posted on April 27, 2015 by David McKee

When the government of Macao makes a suggestion, it’s more like an order. For instance, last week, Secretary for Economy & Finance Lionel Leong summoned representatives of all MGM-Macau-casino-4six casino concessionaires to a meeting in which he ‘requested’ increased hiring and promotion of local workers in the city’s casinos. Among the executives subjected to this pep talk were Sands China Executive Vice President Ben Toh and MGM China CEO Grant Bowie. The government is feeling the discontent of local trade unions and passing it on to the casino bosses ahead of an expected May 1 protest.

Leong had earlier promised Continue reading →

Posted in Aristocrat, Economy, Iowa, Isle of Capri, Macau, Marketing, Maryland, Melco Crown Entertainment, MGM Mirage, Regulation, Sheldon Adelson | Comments Off on Macao casinos feel the heat; $41 million jackpot voided

Quote of the Day

Posted on April 27, 2015 by David McKee

steve-wynn-1“Nevada history is festooned with big bosses and bullies, men who lease the Legislature and occupant of the Governor’s Mansion for pet purposes. [Steve] Wynn isn’t the first, but he certainly ranks among the most prolific practitioners of the political art.” — John L. Smith on a Wynn-sponsored bill intended to chill free speech, particularly that which is critical of Steve Wynn.

Posted in Politics, Steve Wynn | Comments Off on Quote of the Day

Indian givers on Capitol Hill; Revel powers up

Posted on April 27, 2015 by David McKee

Arizona‘s congressional delegation is willing to gamble $1 billion of your and my dollars to keep the Tohono O’odham Nation from having a casino. At the moment, Sen. John
mccainMcCain (R) and his junior henchmen are plotting to stick their hypocritically titled Keep the Promise Act onto some piece of must-pass legislation and thwart the tribe in that manner. (When it comes to keeping promises involving Native Americans, Congress’ moral authority is dubious at best.) However, the Congressional Budget Office warns that if the Tohono O’odham sue — as appears certain they will — for not being allowed to make the highest and best use of their land, taxpayers could be on the hook for as much as $1 billion in legal fees, since the law will increase federal spending.

The lone voice of sense in the Arizona delegation belongs to Rep. Raúl Grijalva (D), who warns,  Continue reading →

Posted in Arizona, Atlantic City, Glenn Straub, Internet gambling, Mohegan Sun, Politics, Revel, Sheldon Adelson, Singapore, South Korea, Tribal | Comments Off on Indian givers on Capitol Hill; Revel powers up

Elaine Wynn has left the building

Posted on April 24, 2015 by David McKee

Votes are still being audited but the bottom line from Wynn Resorts‘ board election is this: Elaine Wynn is out and the company’s two preferred candidates have been reelected. “The manner in which the existing board has handled the company’s third-largest shareholder and fellow board member, Elaine P. Wynn, the resulting proxy contest, all too public dispute and the continuing multiyear decline in the company’s stock price, compel us to support the dissident,” Egan-Jones Proxy Services advised in vain.

Ms. Wynn’s lawsuit to sever control of her shares from Continue reading →

Posted in Macau, Politics, Steve Wynn, The Strip, TV, Wall Street | 1 Comment

Caesars and Gilbert, separate but together

Posted on April 24, 2015 by David McKee

Dan Gilbert‘s ThistleDown Racino has been losing business to Hard Rock Rocksino, so Gilbert is pushing back with $70 million in upgrades. “Our initial investment in ThistleDown thistledownhas been a tremendous success and now we’re ready to introduce a new level of entertainment and dining options to this area,” said General Manager Rick Skinner, putting an upbeat spin on the move. The racino’s only been open two years, so the flurry of changes comes as a bit of a surprise.

The myriad improvements will include Continue reading →

Posted in Dan Gilbert, Delaware, Hard Rock International, Harrah's, Horseracing, Internet gambling, Maryland, Ohio, Regulation | Comments Off on Caesars and Gilbert, separate but together

Shame on Arizona; Big plans for Gold Strike

Posted on April 24, 2015 by David McKee

With Gov. Doug Ducey opposed, along with a state gaming agency that refuses to OK its casino, the Tohono O’odham Nation has to decide whether to insist upon a December opening or bow to the state’s objections. Despite having lost time and again in federal courts, Arizona state officials maintain that the Tohono O’odham committed “fraud and misrepresentation” to place a casino within a county island adjacent to Glendale. The tribe has allies in Glendale city council, which is counting on revenue sharing to shore up its sagging finances. “Please get out of the way and let us Continue reading →

Posted in Arizona, Massachusetts, MGM Mirage, Politics, Regulation, Rhode Island, Tribal | Comments Off on Shame on Arizona; Big plans for Gold Strike

Tribal tensions in Indiana; Mississippi tapped out?

Posted on April 23, 2015 by David McKee

Indiana legislators are making it more difficult for the Pokagon Band of Potawatomi Indians to reach a compact with Gov. Mike Pence (R), according to the tribe, which charges lawmakers with meddling in the compacting process. The Pokagon Band, which owns several casinos in Michigan, wants to extend its reach into South Bend, where it would build a tribal village, complete with casino. Lawmakers are mulling a bill that would put an extensive regulatory framework into place. This inspired Chairman John P. Warren to declare, “A lot of that language in there is a violation of IGRA, that’s the Indian Gaming Regulatory Act. The management, the infrastructure. This legislation is actually inhibiting the governor from negotiating in good faith even before negotiations have begun.”

The tribe took umbrage at Continue reading →

Posted in Economy, Harrah's, Indiana, Maine, Mississippi, New Hampshire, Politics, Racinos, Regulation, Tribal | 1 Comment

Quote of the Day

Posted on April 23, 2015 by David McKee

Sheldon-Adelson“It’s very difficult to make predictions, particularly about the future.” — Sheldon Adelson, delivering the malapropism of the year, with regard to his Macao casinos. In other Adelson news, the mogul’s bromance with Sen. Marco Rubio (R) is heating up.

Posted in Florida, Macau, Politics, Sheldon Adelson | Comments Off on Quote of the Day

Sands, Penn and Pinnacle report

Posted on April 23, 2015 by David McKee

“Tough to find positives … worse than feared” were the attention-grabbing headlines on Deutsche Bank analyst Carlo Santarelli‘s summary of Las Vegas Sands‘ first-quarter report. Sands-MacaoOf the crisis in Macao, he wrote, “While management remains optimistic with respect to cost control, we believe it will be difficult to tweak much to soften the impact stemming from both market performance and new competition.” The quarter was also marred by 9% lower average hotel occupancy — an area of the Macanese market where Sands leads with its chin.

J.P. Morgan‘s Joseph Greff cited “negative operating leverage associated with Continue reading →

Posted in California, GLPI, Indiana, Louisiana, Macau, Massachusetts, MGM Mirage, Missouri, Penn National, Pinnacle Entertainment, Racinos, Sheldon Adelson, Singapore, The Strip, Tribal, Wall Street | Comments Off on Sands, Penn and Pinnacle report

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