Then there was Resorts …

Posted on February 19, 2015 by David McKee

By tomorrow afternoon, there will be a new player in New Jersey‘s online-gaming industry: Resorts Atlantic City. The casino’s Internet-play site will go online in a limited fashion, Resorts ACgradually ramping up to full capacity over the ensuing week. Resorts execs don’t feel that they’ve suffered from their caution getting into the market but rather have benefited from seeing the ups and downs of the Garden State’s first year of online gambling. As CEO Mark Giannantonio told The Press of Atlantic City, “We think we’ve had an opportunity to see what’s been working and maybe not working so well in the market.”

The online venture, a partnership with  Continue reading →

Posted in Atlantic City, Dennis Gomes, Florida, Internet gambling, Isle of Capri, Mohegan Sun, Oklahoma, Regulation, Tribal, Trump Entertainment Resorts | Comments Off on Then there was Resorts …

The new Siegel in town; The word on the Strip is “Fore!”

Posted on February 19, 2015 by David McKee

Any article that begins by described the late Star Trek: The Experience as “essentially weird” has one strike against it. (I can’t tell you how many former employees told me it was hilton-picthe best job they ever had.) Such is the case with Brock Radke‘s somewhat snooty look at the reinvention of the International/Las Vegas Hilton/Las Vegas Hotel as Westgate Las Vegas. (Radke even gets the date of the Colony Capital takeover wrong and flubs the reason it ceased to be a Hilton.)

“I definitely saw a great opportunity here, but more important, Continue reading →

Posted in Architecture, Colony Capital, Entertainment, Japan, MGM Mirage, New York, Politics, Singapore, Sports, The Strip, Westgate LV | 2 Comments

Tilman Fertitta’s blockbuster

Posted on February 19, 2015 by David McKee

When looked on Ye Olde Same Store Basis, gaming revenues in Louisiana are good enough, up 4%. Add Tilman Fertitta‘s Golden Nugget Lake Charles to the mix and revs shoot up 17%. No, GoldenNugget Lake Charlesthat’s not a typo. The Nugget is proving to be the perfect confluence of owner, location and timing. It’s also a rising tide that’s lifting L’Auberge Lake Charles, up 6.5% ($28 million). Golden Nugget pulled in $23 million and even stimulated business at Delta Downs (+4.5%) and Isle Grand Palais (+6%), as the Lake Charles market completely eclipsed New Orleans, $78 million to $47 million. For someone who was mocked as a naif when he bought the Las Vegas Golden Nugget, Fertitta has proven himself to be a natural for the casino business. (Contrast Fertitta to Continue reading →

Posted in Atlantic City, Boyd Gaming, Churchill Downs, Downtown, Entertainment, GLPI, Harrah's, Isle of Capri, Louisiana, Pinnacle Entertainment, Racinos, Tilman Fertitta, Tropicana Entertainment, Wall Street | Comments Off on Tilman Fertitta’s blockbuster

That wacky Glenn Straub; Instant racing stumbles; Mongolia or bust

Posted on February 18, 2015 by David McKee

Revel AC has been continuing to negotiate with beady-eyed billionaire Glenn Straub, even after the clock has run out on their purchase agreement. Revel’s incentive is that it wants to avoid Chapter 7 liquidation. Trouble is, Straub is reported to be Straublowballing Revel (as though $95.4 million for a $2.4 billion casino weren’t low enough), even though a deal has been described as “close.” Further complicating the issue, different courts have issued differing opinions about whether Straub can buy Revel without negotiating with its tenants. (In the old ham-and-egg scenario, Straub has an interest but the tenants are committed.) At least this week’s Straub/Revel meetings haven’t disintegrated into shouting matches. Or, as one report put it, “This week there were fewer loud voices to be heard from the room.” Everyone is dancing attendance upon Bankruptcy Court Judge Gloria Burns, who will decide tomorrow whether or not to sever the remnants of Continue reading →

Posted in Atlantic City, Glenn Straub, Idaho, International, New York, Politics, Racinos, Regulation, Revel, Tribal | 2 Comments

Station is back; MGM’s praises sung

Posted on February 18, 2015 by David McKee

When the Great Recession struck, no company was more ill-positioned to weather it than Station Casinos. A few tribal contracts aside, all of Station’s eggs were in the Las Vegas palacestation-picbasket. To put it another way, Vegas may have gotten the flu but Station contracted tuberculosis. The company went south so fast that its bankruptcy is now a distant memory.

All of which is preamble to the disclosure that Station’s 4Q14 numbers were the best since the halcyon days of 2008, when company execs were dreaming big and Station was living large. As CFO Marc Falcone put it, “It may finally appear we have reached that inflection point we have Continue reading →

Posted in California, Detroit, Economy, Hard Rock International, Macau, MGM Mirage, Mississippi, Riviera, Station Casinos, The Strip, Tribal, Wall Street, Wisconsin | Comments Off on Station is back; MGM’s praises sung

Why the Riviera deal stinks

Posted on February 18, 2015 by David McKee

Occasional S&G contributor Jeff in OKC shares some blunt sentiment about this week’s biggest story: the planned sale and demolition of the Riviera, the most venerable casino on the Las Vegas Strip:

RivieraI’m 56. A 100% pure Baby Boomer, born in 1958. A couple of images from my childhood came to mind when I began to read the rumors about the sale of the Riviera.  When we were in grade school, teacher would check out a projector, and we would watch 16mm wildlife and scientific documentaries on that “projector/screen in the same cart thingie.”

One was about the Labrea Tar Pits, which, best I can remember, are in the Los Angeles area. Seems that in Prehistoric Times it used to be an area that had these pools of tar, and a giant, elephant-type beast called a woolly mammoth would walk into them and get trapped like they were walking into quicksand. I think they had excavated some bones and had a display set up out there. For some reason, I most vividly remember some charcoal sketches of the mammoth sinking into the tar, with its mouth open in a panicked roar, head pointing to the heavens.
Continue reading →

Posted in California, Derek Stevens, Economy, history, LVCVA, Riviera, Tourism | 8 Comments

Good and bad news for Caesars

Posted on February 17, 2015 by David McKee

caesarscasino_1Caesars Entertainment‘s last hopes for a Massachusetts casino are slipping through its fingers. A federal appeals court ruled in favor of the Massachusetts Gaming Commission and cleared Chairman Stephen Crosby of any charges of untoward conduct. Judge David Souter ruled that the MGC had “highly discretionary” powers, particularly when the license carried “substantial risks of commercial and social harm.” Citing recent Supreme Court precedent, it also answered Caesars’ claim of deprivation of property rights through an “arbitrary exercise of government power” by ruling that submission of a casino bid does not a property right create. To quote the legalese,   Continue reading →

Posted in California, Harrah's, Internet gambling, Massachusetts, PokerStars, Politics, Regulation, Sheldon Adelson, Tribal | Comments Off on Good and bad news for Caesars

Riviera’s fate sealed

Posted on February 17, 2015 by David McKee

riviera-pic2… or soon will be. On Friday, the Las Vegas Convention & Visitors Authority is holding a board meeting at which the future of the venerable hotel-casino will be decided. On the table is a $182.5 million purchase, which values the site at $6.9 million,
less expenses related to closing the Riviera. (I’ll bet Carl Icahn wishes Fontainebleau was in the path of the LVCVA instead.) Considering how advanced the LVCVA’s plans for the site are — including something called a multimodal transportation hub — rejection Continue reading →

Posted in Fontainebleau, LVCVA, Movies, Riviera, Technology, The Strip, Westgate LV | Comments Off on Riviera’s fate sealed

Adieu, Riviera?

Posted on February 16, 2015 by David McKee

Is Las Vegas‘ oldest Strip casino facing a date with the wrecking ball? Last week, LVA broke the news that — at least according to one of our sources — the Riviera was being sold to the Las 

RivieraVegas Convention & Visitors’ Authority. And what gambling would replace it? Nothing. The Riv would be demolished and the Convention Center would be extended to the Las Vegas Strip. The LVCVA would neither confirm nor deny the story when we asked them about, but the Las Vegas Review-Journal has rounded up other “on background” confirmations, so the Riv’s fate would appear to be sealed. Owner Starwood Capital Group and manager Paragon Gaming have also headed for the tall grass.

The LVCVA’s interest in the Riv would appear to be as the site for a sought-after transportation center. As for Paragon, Continue reading →

Posted in Internet gambling, LVCVA, New Hampshire, PokerStars, Politics, Riviera, The Strip | 2 Comments

Can New York casinos work miracles?

Posted on February 16, 2015 by David McKee

“Do I believe in it? I believe in it. I think Sullivan County is destined for an absolute true turnaround,” says Monticello restaurateur Bill Sipos, when asked about the potential Montreignimpact of Empire Resorts‘ Montreign (left) on his area. The project is described as an “18-story casino, 2,150 slots, 390 hotel rooms, an entertainment village and a waterpark.” One of the points of concern about casinos coming to New York State is how much money will be spent outside the casino. For instance, Lago Resort & Casino promises to promote local casinos and wineries. Casino skeptics, however, point out that Lago is just off a major highway and is unlikely to produce trickle-down effects. “There’s all these promises of spinoff, but it just Continue reading →

Posted in Atlantic City, Boyd Gaming, Economy, Environment, Neil Bluhm, New York, Regulation, Sheldon Adelson, Sports, Trump Entertainment Resorts | Comments Off on Can New York casinos work miracles?

We’re Number One; Adelson goes Disney

Posted on February 13, 2015 by David McKee

Las Vegas is officially the epicenter of the nightclub universe. Seven of the 10 top-grossing clubs in Nightclub & Bar‘s 2014 survey are on the Las Vegas Strip. The honor roll is topped by XS-picXS Nightclub, followed by Hakkasan, Marquee and TAO Las Vegas (there is also a high-performing New York equivalent). In addition to the top four spots, Sin City also claims laurels for Surrender (#6), Hyde at Bellagio (#9) and Lavo (#10). Among the many also-rans are Chandelier Bar at Cosmopolitan of Las Vegas (#17) and Tryst (#18). Further down were the likes of Chateau Nightclub (#28) and Ghostbar (#48) at the Palms.

XS grossed $103 million-plus, with Continue reading →

Posted in Cosmopolitan, Economy, Entertainment, Harrah's, Macau, MGM Mirage, Palms, Sheldon Adelson, Steve Wynn, Technology | Comments Off on We’re Number One; Adelson goes Disney

Pence’s and Markell’s tunnel vision

Posted on February 13, 2015 by David McKee

Indiana Gov. Mike Pence (R) may be swimming against the tide when he opposes casino reforms that he slimes as gambling expansions. For instance, for safety reasons alone, moving Penceriverboat casinos ashore is an idea that was overdue 10 years ago, when Hurricane Katrina showed the peril of the water-borne casino. As House Public Policy Committee Chairman Tom Dermody (R) says, “We want to try to do something like we would for any other industry or another other business in our state that was struggling.” Dermody’s committee voted the reform package through, 10-2.

Admittedly, switching to live table games from electronic ones at Hoosier Park and Indiana Grand just might constitute an “expansion.” Rather than be an obstructionist, perhaps Pence ought to horse-trade onshore casinos for continued electronic table games at the racinos. He has a surprising ally in Full House Resorts CEO Dan Lee, who offers the following rationale for the live-dealer provision: “If it wasn’t an expansion of gaming, they wouldn’t be asking for it.” He’s also against Continue reading →

Posted in Dan Lee, Delaware, Indiana, Marketing, Ohio, Racinos, Taxes | Comments Off on Pence’s and Markell’s tunnel vision

Indian giver wins big in Atlantic City; Positive quarters for Pinnacle, Boyd

Posted on February 13, 2015 by David McKee

Fourteen gamblers are $1.5 million lighter in the wallet after a New Jersey judge ordered them to pay restitution to the Golden Nugget Atlantic City. At issue was the Nugget’s use of Golden Nugget AC“pre-shuffled” card packs that were nothing of the sort. Once the mini-baccarat players copped to the repetitive sequence of the cards, they bet accordingly and cleaned the casino out, winning 41 consecutive hands. (That should have tipped somebody in management off.) However, although Judge Donna Taylor deemed the games illegal under Garden State law, she put the onus of her ruling on the players, not the non-compliant casino. They’ll have to return $1 million in chips, plus $500,000 in cash.

“The dealer did not pre-shuffle the cards immediately prior to the commencement of play, and the cards were not pre-shuffled in accordance with any Continue reading →

Posted in Atlantic City, Boyd Gaming, Downtown, Economy, Louisiana, Pinnacle Entertainment, Taxes, Tilman Fertitta, Wall Street | Comments Off on Indian giver wins big in Atlantic City; Positive quarters for Pinnacle, Boyd

Quote of the Day

Posted on February 12, 2015 by David McKee

“PokerStars is one of the only gaming companies that has been actively committed to pursuing a position in the Atlantic City market. Everybody else is running away. So, why Macau Sands New Casinowould we rebuff a company that wants to make a major investment in Atlantic City while everybody else is sort of backing off? I just don’t understand it.” — Unite-Here Local 54 President Robert McDevitt, questioning the inability of PokerStars to get a New Jersey gaming license and adding his voice to those suggesting a cabal between presidential wannabe Gov. Chris Christie (R) and the latter’s Daddy Warbucks, Sheldon Adelson. The ties between Adelson and Christie do run deep.

Posted in Atlantic City, Internet gambling, PokerStars, Politics, Sheldon Adelson | Comments Off on Quote of the Day

Whither Bally’s?; Boffo January for Atlantic City

Posted on February 12, 2015 by David McKee

From publicly mulling a Horseshoe rebranding to talk of a new hotel tower, Caesars Entertainment has never seemed to know quite what to do with Bally’s Las Vegas, white BALLYSHOPSelephant of its parade of Strip casinos. The Las Vegas Weekly‘s Brock Radke has taken a gander at the latest prettying-up around the edges and come away unimpressed. At least when the Grand Bazaar Shops formally open on Feb. 26, we’ll learn if the Las Vegas Strip needs another 120 Swatch and Ugg boutiques. One thing certain to set the Bazaar apart is the Swarovski crystal store, shaped like a diamond and crowned with a Yesco-devised 14-foot LED installation that at “midnight every night, the starburst will blast out a three-minute light and sound show.”

Another indication of Bally’s identity crisis was the demise, after seven months, of Continue reading →

Posted in Atlantic City, Boyd Gaming, Economy, Entertainment, Harrah's, Internet gambling, Marketing, MGM Mirage, Mohegan Sun, Taxes, The Strip, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Whither Bally’s?; Boffo January for Atlantic City

Fisticuffs in Idaho; Wynn woos Bostonians

Posted on February 12, 2015 by David McKee

Idaho‘s Coeur d’Alene tribe got a taste of its own medicine when four lawmakers penned a letter to Gov. C.L. Butch Otter and to the U.S. Attorney’s office charging the tribe with imgresbeing out of compliance with its compact. The quartet accuses the tribe of deploying Class III slot machines, “not stylized electronic bingo or electronic pull-tab games with spinning wheels as were once used in the past by the tribes.”

“Since slot machines are clearly not allowed in Idaho, we respectfully request that you review for compliance the electronic games in use at all Idaho tribal casinos including the Coeur d’Alene Casino,” wrote principal author state Sen. Bob Nonini (R, left). “I would say Sen. Nonini apparently hasn’t taken a look at federal laws, hasn’t taken a look at the gaming compacts, hasn’t taken a look at Proposition 1 or years of court history if he’s making Continue reading →

Posted in Environment, Horseracing, Idaho, Massachusetts, Politics, Problem gambling, Racinos, Regulation, Steve Wynn, Technology, Transportation, Tribal | Comments Off on Fisticuffs in Idaho; Wynn woos Bostonians

More trouble for Taj; Revel sale hangs by a thread

Posted on February 12, 2015 by David McKee

It seems that Trump Taj Mahal has been rather cavalier about reporting large transactions and suspicious financial activities to FinCEN. For instance, when customers’ names and Social trump-taj mahaSecurity numbers didn’t square, Taj management still didn’t pursue the discrepancies. The Taj ‘fessed up to violations of the Bank Secrecy Act‘s “program, reporting and record-keeping requirements,” triggering a $10 million fine, which is the largest in casino history. The naughty activity occurred between 2010 and 2012, so there may be more where that came from. “During a three-month period of examination in 2010, Trump Taj Mahal failed to file 56% of required suspicious activity reports, regulators concluded. During a similar period in 2012, the casino’s reporting failure rate was 44%,” reports the Wall Street Journal.

Since litigating the matter with the Justice Department would probably have Continue reading →

Posted in Atlantic City, Glenn Straub, Harrah's, Regulation, Revel, Trump Entertainment Resorts | Comments Off on More trouble for Taj; Revel sale hangs by a thread

Where to dump Trump?; Straub stumped

Posted on February 11, 2015 by David McKee

Donald-Trump-Apprentice-2011Although he’s buried millions of dollars in New Jersey, having been party to four casino bankruptcies, Donald Trump doesn’t want his carcass interred there. Instead, when he goes to that big sand trap in the sky, he wants to be buried at Trump National Golf Club, in Florida. Think about it: What makes a more logical combination than a golf course with a cemetery? Gives a whole new meaning to “Amen Corner.”

* There’ll be no end-of-February extension for Continue reading →

Posted in Affinity Gaming, Atlantic City, Donald Trump, Florida, Glenn Straub, Golden Gaming, Horseracing, Illinois, Louisiana, Lyle Berman, Maryland, Revel, Slot routes | 1 Comment

Quote of the Day

Posted on February 11, 2015 by David McKee

“We were told this was about saving the horse racing industry. I find it somewhat ironic that two of the three racetracks that have instant racing have never been live horse-racing tracks. This is not about live racing. This is about casino gambling.” — Coeur d’Alene Tribe lobbyist Helo Hancock, testifying in support of a bill to abolish “instant racing” in Idaho.

Posted in Horseracing, Politics, Racinos, Tribal | 1 Comment

Hoosier State comeback; Surprise contenders in Ohio

Posted on February 10, 2015 by David McKee

In light of all the gaming growth being experienced in Ohio, results in Indiana are not quite as roseate as in Illinois or Missouri, say. But they’re beating analyst expectations by Indianaimpressive margins. Crunching the numbers, Deutsche Bank‘s Carlo Santarelli concludes that foot traffic is up 12% and gamblers are spending 2% more on average. In the state’s northern tier, only Majestic Star was down (-1%) while its sister vessel was up 28%. Pinnacle Entertainment‘s Ameristar East Chicago performed impressively enough ($17 million, +17%) but it was still doubled by Horseshoe Hammond (it’s not a casino, it’s a continent), which pulled in double the amount of money, for a 14% increase. Boyd Gaming also performed impressively aboard Blue Chip, growing revenue 26%.

With few exceptions, players didn’t stray far from Continue reading →

Posted in Bally Technologies, Boyd Gaming, Hard Rock International, Harrah's, Kansas, Penn National, Pinnacle Entertainment, Wall Street | 1 Comment