Caesars wins some, loses some; Dotty’s drives Station batty

Posted on March 5, 2015 by David McKee

“I don’t have any authority to disband a committee that the U.S. trustee has appointed,” said Judge A. Benjamin Goldgar, handing a victory to the second-tier debtors in the caesarscasino_1Caesars Entertainment bankruptcy. Caesars had sought to have the creditors’ watchdog committee dissolved into one representing unsecured creditors. As the Wall Street Journal summarized, the committee has “challenged the legality of several prebankruptcy transactions [Caesars Entertainment Operating Co.] made with its parent company.”

At issue are transactions which transferred $6 billion in assets to other Caesars branches. Paradoxically, the second-tier lenders want to probe the matter on their own while Caesars has called for an independent examiner. So has a group of bondholders and unsecured creditors represented by Wilmington Trust. The second-tier bondholders allege that Continue reading →

Posted in Dotty's, Harrah's, Politics, Regulation, Station Casinos, Wall Street | Comments Off on Caesars wins some, loses some; Dotty’s drives Station batty

Straub spurned again; Union vs. Icahn, Round Two

Posted on March 5, 2015 by David McKee

Revel has been snatched from Glenn Straub‘s grasp, at least for another week, even though Revel AC has switched its position from contentious opposition to Straub to support. Or, as Revel_1340Revel attorney John Cunningham said, they have “82 million reasons” to close the deal. However, Los Angeles-based DTLA Development Group is singing a siren song to Judge Gloria M. Burns. DTLA’s position is that Revel can keep Straub’s $10 million deposit, thereby making their $80 million “offer of funds” the superior bid. Fired back Straub attorney Stuart Moskowitz, “You have no bond, no guarantee, nothing submitted to the court. It’s illusory.” Despite not having been given access to Revel, rival bidder Izek Shomof proclaimed, “We love it, that’s why we’re very interested.”

Straub was not impressed, saying, “This guy from Los Angeles doesn’t know a thing, and I don’t believe he’s a real bidder. He was not there when Continue reading →

Posted in Atlantic City, Carl Icahn, Glenn Straub, Revel, Trump Entertainment Resorts, Wall Street | 1 Comment

IRS money grab; Nastiness at Wynn

Posted on March 5, 2015 by David McKee

Gaming is a “soft target” for politicians and the Obama administration is looking into a backdoor method of engorging more gaming taxes. It is “considering” (but not yet imposing) Slot reelslower thresholds for the “IRS lockdown” on winnings at keno, bingo and slots. In the case of slots, the proposal is fiendishly clever: If you hit a $1,200 jackpot or higher, you would no longer be taxed on that win alone but on any other winnings from the same, 24-hour period. (Ah, the downside of the player’s card!) The official mumbo-jumbo is here.

The taxmen are also considering halving the Continue reading →

Posted in Columbia Sussex, Missouri, Regulation, Steve Wynn, Taxes | Comments Off on IRS money grab; Nastiness at Wynn

Fear and loathing in Washington; New goodies at Borgata

Posted on March 4, 2015 by David McKee

Sheldon Adelson sock puppet Rep. Jason Chaffetz (R) would be holding his much-ballyhooed hearing on Internet gambling today, had Mother Nature not intervened and forced a postponement. When it Chaffetzhappens, it’ll be pretty much the kangaroo court you’d expect. His star witness is rabid and troglodytic University of Illinois boffin John Kindt, who has advocated for the federal seizure of all tribal casinos on the grounds of “allegations of misuse, non-accounting, and even malfeasance involving gambling revenues in Native American operations.” Blithely ignoring tribal sovereignty, he would convert them to “educational, cultural, and business facilities.”

But Kindt doesn’t just reserve his wrath for aboriginals. Known for his dodgy research claims, Kindt idolizes the anti-gambling policies of Vladimir Putin and advocates the criminalization of gaming. Compared to the despot-slurping Kindt, the other witnesses are practically Continue reading →

Posted in Atlantic City, Boyd Gaming, Economy, Entertainment, Horseracing, International, Internet gambling, Politics, Regulation, Sheldon Adelson, Taxes, The Strip, Tribal | 1 Comment

Fly the friendly slots; New tax takes aim at slot routes

Posted on March 4, 2015 by David McKee

Unlike most states, Maryland hasn’t hit the saturation mark and a bill to put a slot route into Thurgood Marshall Airport will probably have little effect on that. The slots will Great_Seal_of_Maryland_reverseonly be accessible to ticketed passengers, with the idea being to ‘tax’ out-of-state travelers for Free State infrastructure improvements. Not only has the airport stopped opposing the concept but the House Ways & Means Committee has new 13 members, at least some of whom could be receptive to the idea, which has been killed annually for the last six years, like some sort of legislative skeet shoot.

According to the Baltimore Sun, the city’s airport would — if the legislation is passed — have more slot machines than McCarran International Airport. Look to thy laurels, Continue reading →

Posted in Aristocrat, Cordish Co., Dotty's, Golden Gaming, Harrah's, Maryland, Michael Gaughan, Politics, Taxes, Technology, Transportation | Comments Off on Fly the friendly slots; New tax takes aim at slot routes

Naughtiness at Las Vegas Sands; Caesars makes bankruptcy plan official

Posted on March 4, 2015 by David McKee

Sands China could have some stateside problems. Judge Elizabeth Gonzalez is mulling whether or not to slap Sands’ wrist for tampering with evidence. The documents in question Sands Cotaiare part of a wrongful-termination lawsuit brought by former Sands China CEO Steven Jacobs, a case entering its hit sixth year. Gonzalez ordered that documents not be redacted but Sands, which often takes a high-handed attitude toward the judicial process, did it anyway, having hid the material in question for two years.

“We are here today because of a long series of misrepresentations,” said Jacobs’ attorney, Todd Bice, in support of the potential sanctions. Gonzalez also decreed the Macao Personal Data Protection Act irrelevant to the case. Sands General Counsel David Fleming countered that Continue reading →

Posted in Harrah's, IGT, International, Macau, Sheldon Adelson, Technology, The Strip | Comments Off on Naughtiness at Las Vegas Sands; Caesars makes bankruptcy plan official

Caesars’ wheel of pain

Posted on March 3, 2015 by David McKee

“Loveman ‘fascinated’ by complexities of High Roller,” read one of today’s headlines. Perhaps he ought to be more fascinated by the complexities of Caesars Entertainment‘s Linq revisedbankruptcy, of which he is the undisputed architect. The company announced quarterly earnings yesterday, losing a mere billion dollars compared to last year’s $1.76 billion, helped by $9 million in unspecified cost cuts. The blow was softened by a 6% increase in revenue, though not much of that was attributable to gambling win, up 2%. Dining and drinking (+9%) and hotel rooms (+5%) were stronger drivers of financial performance. If there’s one thing Caesars has been successful at, it’s been in rebranding the “Four Corners” of the Las Vegas Strip as a dining/shopping/sightseeing destination, as the quarterly figures imply.

Caesars also credited “continuing strength in the company’s interactive business, new Continue reading →

Posted in Dining, Entertainment, Harrah's, The Strip, Tourism, Wall Street | 3 Comments

New problem for Straub; Broad casino push in Florida

Posted on March 3, 2015 by David McKee

Whenever you think the Revel saga is done, a new complexity arises. Glenn Straub‘s $82 million purchase is set to be ruled upon in bankruptcy court tomorrow. But, slipping over the revel-resort-in-atlantic-citytransom at the last minute come Leo Pustilnikov and fellow developer Isek Shomof, brandishing $80 million. While Straub has placed $82 million in escrow, Pustilnikov and Shomof are making “an offer of funds.” Ooooooh, an offer of funds! How exciting. The duo argues that their seemingly lowball offer outdoes Straub’s because $10 million of his $82 million in cash comes from a forfeited deposit on his (since superseded) $95 million bid. They must be mighty enamored of Revel, since they’re making a purchase offer without ever having seen the place.

Shomof, “a prominent redeveloper of older buildings in Continue reading →

Posted in Atlantic City, California, Florida, Glenn Straub, Politics, Racinos, Regulation, Revel, Tribal | Comments Off on New problem for Straub; Broad casino push in Florida

Macao in freefall; A RAWA deal

Posted on March 3, 2015 by David McKee

Sheldon Adelson can call Macao‘s doldrums “cyclical” until he’s blue in the face but there’s no mistaking that the gambling enclave is having serious problems. Actually, that’s a bit of an Venetian Macaounderstatement when February revenue falls 49%. VIP play is especially hard to find, down 60% in sheer volume and 56.5% in revenue. Las Vegas Sands took an especially heavy hit, its VIP revenue down 66%. MGM Grand Paradise took a 59% haircut and Wynn Macau was walloped worst of all, its VIP revenue falling 70%. “During a recent visit … to four of the city’s glitziest casinos, VIP rooms were mostly desolate,” reports Reuters.

You can get on a conference call with Wall Street analysts and Continue reading →

Posted in Economy, Internet gambling, Melco Crown Entertainment, MGM Mirage, Mohegan Sun, Pennsylvania, Politics, Regulation, Sheldon Adelson, Stanley Ho, Steve Wynn, Wall Street | Comments Off on Macao in freefall; A RAWA deal

First big hurdle in Indiana cleared

Posted on March 2, 2015 by David McKee

Both the Indiana state Senate and Gov. Mike Pence (R) could still nix the deal, but the Indiana House of Representatives voted 76-19 to put riverboat casinos ashore and OK live dealers at the state’s Indiana Grand and Hoosier Park racinos. Pence is hung up on the CasinoAztarlive-dealer provision, which he incomprehensibly deems an “expansion” of gambling in the state. Maybe it will have to be sacrificed to get the other casinos off the rivers, something that should have been done years ago. (God forbid it should take a calamitous tornado to open Pence’s eyes.)

Referring to the landslide vote for the bill, state Rep. Tom Dermody (R) held out hope of changing Pence’s mind, saying,  Continue reading →

Posted in Boyd Gaming, Genting, Hard Rock International, Harrah's, Indiana, Internet gambling, Isle of Capri, Macau, Mississippi, New York, Ohio, Pennsylvania, Politics, Racinos, Regulation, Sheldon Adelson, Singapore, South Dakota | Comments Off on First big hurdle in Indiana cleared

Caesars quits Ohio; Adelson’s Iran problem

Posted on March 2, 2015 by David McKee

Caesars Entertainment‘s portfolio is lighter to the tune of two Ohio casinos and a racino. The beleaguered company sold its 20% in Horseshoe Cleveland, Horseshoe Cincinnati and danielgilbertThistleDown Racino to majority shareholder Rock Ohio Ventures, giving Dan Gilbert full control of all three properties. The precipitous move was obviously not the outcome of acrimony between the two parties: Caesars will continue to run the casinos at Gilbert’s behest and you can still win Total Rewards points at them. Perhaps Caesars had soured on the Ohio market, where it was becoming an also-ran among the state’s quickly expanding casino-and-racino market. Or perhaps it needed the cash, pronto. Given that Caesars is in the midst of an expensive bankruptcy, I vote for Theory B.

If this Gilbert partnership has been dissolved, is a selloff of Continue reading →

Posted in Dan Gilbert, GTECH, Hard Rock Hotel, Harrah's, IGT, International, Kentucky, Maryland, Ohio, Racinos, Regulation, Sheldon Adelson, Technology, Warner Gaming | 2 Comments

Straub’s new plan for Revel; Elaine Wynn gets rude treatment

Posted on March 2, 2015 by David McKee

Glenn Straub may be America’s newest casino owner but he’s quickly emerging as its most unpredictable. While he plans to reopen the gambling component of Revel, his latest Revel_lobbypatio_PANObrainwave is to add an anti-aging institution. Details are sketchy at present, but we can glean a few ideas from Straub’s own regimen, which involves multivitamins, among other things. (Weekly polo games probably won’t happen, though — although, given the preposterous bulk of Revel, anything is possible.) “We’ll give you a week of knowledge and maybe extend your life,” Straub says of his concept. Off the wall as it may sound, it would diversify the Atlantic City economy and give tourists a new reason to visit the Boardwalk.

“Clearly, with two bankruptcy filings in less than two years, Continue reading →

Posted in Atlantic City, Boyd Gaming, Glenn Straub, history, Kazuo Okada, Revel, Steve Wynn | 2 Comments

Las Vegas’ robust January; Measles in a casino

Posted on March 2, 2015 by David McKee

January was good for the State of Nevada (+8%) but especially powerful for the Las Vegas Strip, up 15%. The casinos played lucky, with baccarat winnings up 68.5%, despite 13.5% less Baccaratbeing wagered. Strip slot revenues were up 4%, even if they didn’t quite keep pace with a 6% increase in coin-in. Table play was a bit anemic. Casinos won 6.5% more on the felt but players wagered big, 21% more than last year. Casino Electronics Show was credited with helping to drive the strong business.

The locals market stubbornly refuses to recover, down 6%. Downtown was off 11% and the Boulder Strip slid 15%. (According to Deutsche Bank, proxy Boyd Gaming was 6% off.) North Las Vegas was down 6% and the remainder of Clark County was flat. Laughlin pancaked as well but Continue reading →

Posted in Boulder Strip, Boyd Gaming, Downtown, Economy, Environment, Fontainebleau, Lake Tahoe, Laughlin, MGM Mirage, New York, North Las Vegas, Riviera, The Strip, Wall Street | Comments Off on Las Vegas’ robust January; Measles in a casino

Midwest casino follies

Posted on February 25, 2015 by David McKee

Indiana municipalities caught a break when the state House of Representatives voted against scrapping the state’s $3 admission tax, which goes to casino-hosting localities. That Dermodykeeps $200 million in the kitty of jurisdictions like LaPorte County, home to Boyd Gaming‘s Blue Chip riverboat. State Rep. Tom Dermody (R, right) vowed to revisit the issue in 2016. However, the House did pass a bill chockful of goodies for casinos, including permission to move on land, an extension of a tax cut on free play, tax incentives for new construction and live dealers for the state’s two racinos. The bill passed overwhelmingly, although it still faces the obstacle that is Gov. Mike Pence‘s veto pen. (The prospect of live dealers at the tracks is one of the aspects that sticks in Pence’s gubernatorial craw.) The bill must also survive one more vote by the full House.

In a peculiar flip-flop, the House initially amended the bill to remove the live table dealers, 96-1, then put them back in, 76-22. Hoping against hope, Continue reading →

Posted in Boyd Gaming, Environment, GLPI, Illinois, Indiana, Iowa, Ohio, Politics, Racinos, Regulation, Taxes | Comments Off on Midwest casino follies

Could Station go public?; Straub buys Revel again

Posted on February 25, 2015 by David McKee

Station Casinos is doing as well as it ever has since the Great Recession, fueling speculation that an IPO might be on the way. Granted, this is mostly speculation by investors and the red_rockmedia but Deutsche Bank‘s 25% stake in the locals-casino company gives it the option to initiate a public offering in June 2016. CFO Marc Falcone is trying to douse the fire, saying, “We’ve enjoyed being their partner, and we think they’re all happy with the performance of the company since we’ve emerged from the restructuring. I don’t really anticipate any change.”

But an IPO would make a lot of sense (a lot more than Continue reading →

Posted in Atlantic City, Glenn Straub, Michael Gaughan, Revel, Station Casinos, Wall Street | 4 Comments

Macao casinos squeezed again; Isle’s clean sweep

Posted on February 25, 2015 by David McKee

First, it was the corruption crackdown. Now, the Chinese government is reviewing visitation levels to Macao. As Macanese Secretary for Social Affairs & Culture Alexis Tam put
venetian-macao-bridgeofsighit, “[T]oo many tourists impact residents’ quality of life.” That’s not music to casinos’ ears and gaming stocks reacted predictably. None of the declines were precipitous (Wynn Macau had the worst of it, down 4%), but all Macao gaming operators were negatively impacted.

We probably should have seen this coming, between visa restrictions from the Mainland and President Xi Jinping‘s calls for greater economic diversity in Continue reading →

Posted in Colorado, Florida, Isle of Capri, Louisiana, Macau, Melco Crown Entertainment, MGM Mirage, Mississippi, Missouri, Racinos, Regulation, Sheldon Adelson, Steve Wynn, Tourism, Wall Street | Comments Off on Macao casinos squeezed again; Isle’s clean sweep

Straub still hearts Revel; Setback in Indiana

Posted on February 24, 2015 by David McKee

revel_0494Glenn Straub‘s abusive/co-dependent relationship with Revel AC continues, even though federal bankruptcy court has driven a stake through his $95 million purchase agreement for the beached whale of a casino. As Judge Gloria Burns, who has presided over the soap opera, put it, “The history of this case is long and tortured.” However, Revel knows that Straub is the only game in town, despite vague talk of ‘interested parties.’ “I would be very surprised if Straub came back and offered $95.4 million and we turned it down,” said Revel attorney Michael Viscount. As though to Continue reading →

Posted in Atlantic City, Glenn Straub, Harrah's, history, Indiana, Lake Tahoe, Politics, Revel, South Dakota, Taxes, Wall Street | 2 Comments

Bigamy in New York; Bluster in New Jersey

Posted on February 24, 2015 by David McKee

Empire Resorts‘ Montreign Resort Casino project has two things in common with Rivers Casino & Resort and Lago Resort & Casino (well, three if you count the fact that none has been built yet). All were chosen from among 16 applicants for three casino sites in New York State and all three had been clients of Chicago‘s Taft, Stettinius & Hollister law firm. And when the New York Gaming Facility Location Board needed a consultant on the selection process, who did it choose? That’s right: Taft, Stettinus & Hollister. This has drawn the attention of New York Attorney General Eric Schneiderman, who’s looking into possible conflicts of interest, a probe that could upside the whole Empire State applecart.

The Location Board knew of the Chicago’s firm’s past ties to the casino applicants but chose to employ it anyway. To be fair, Continue reading →

Posted in Atlantic City, Bally Technologies, Cordish Co., Genting, Harrah's, Neil Bluhm, New York, Penn National, Racinos, Regulation, Scientific Games, Technology | 1 Comment

Quote of the Day

Posted on February 23, 2015 by David McKee

boyd-gaming-200“We make money in our sports books. We provide good amenities, and they are profitable. I’m just not sure sports betting belongs in every state.” — Boyd Gaming CEO Keith Smith expressing surprising hesitancy about introducing sports wagering to Boyd’s regional markets. Less surprisingly, bookmakers-for-hire CG Technology and William Hill US do not share Smith’s reluctance.

Posted in Boyd Gaming, Cantor Gaming, Sports | 1 Comment

Florida tribe: Casinos or pot. Choose!

Posted on February 23, 2015 by David McKee

Florida Gov. Rick Scott (R) finds himself in just a bit of a pickle. He’s refused to negotiate with the Poarch Band of Creek Indians, who want to extend their burgeoning empire of Class rick-scottII casinos from Alabama into the state’s Panhandle region. But, according to a Department of Justice edict, Native American tribes can grow and sell marijuana. So the Poarch Bank has offered him an ultimatum: give us casinos or we’ll sell pot to your kids. (That’s the gist of it.) Does tribal-averse, former HMO exec Scott want to turn the Sunshine State into a giant cloud of cannabis? Or is he willing to grit his teeth and hammer out another gaming compact? Considering that he’s in no hurry to cut a new deal with the Seminole Tribe, he may well tell the Poarch Band to grow and be damned.

The tribe’s priority is gaming, but the threat of marijuana cultivation is a powerful way of drawing attention to their demands. “We have 642 tribal members living throughout Continue reading →

Posted in Alabama, California, Florida, Internet gambling, PokerStars, Politics, Regulation, Tribal | Comments Off on Florida tribe: Casinos or pot. Choose!