Could saturation have peaked?

Posted on February 10, 2015 by David McKee

It’s a banner day when casino revenues in Illinois grow 8.5%. It’s no illusion: In context, $115.5 million is a pretty good haul. A downward spiral in gas prices may already be showing Illinoisup in slot hoppers and drop boxes. According to Deutsche Bank analyst Carlo Santarelli, players are still spending 2% less but there were 10% more of them. As Penn National Gaming went, so did the market, with Penn up 11% last month. Hollywood Aurora (+14%) and Empress Joliet (+11%) were held back somewhat by Argosy Alton, up ‘only’ 5%.

MGM Resorts International experienced a modest improvement aboard Grand Victoria, up 3%. Caesars Entertainment saw dramatic improvements at Harrah’s Joliet (+14%) and aboard new Harrah’s Metropolis (+28%). Boyd Gaming‘s Par-A-Dice (+3%) improved more modestly. The one anomaly was Continue reading →

Posted in Ameristar, Boyd Gaming, Economy, Entertainment, Foxwoods, GLPI, Harrah's, Illinois, Isle of Capri, MGM Mirage, Mohegan Sun, Neil Bluhm, Penn National, Pinnacle Entertainment, The Strip, Tropicana Entertainment, Wall Street, Warner Gaming | 1 Comment

Straub’s time runs short; Smoke gets in Macao’s eyes

Posted on February 10, 2015 by David McKee

Revel_0966Glenn Straub may be $10 million the poorer after yet another deal for Revel has come apart at the seams. Straub wanted to expunge any obligations to Revel tenants. Federal courts would not let him. And, upon that impasse, the hourglass ran out on Straub’s deal with Revel. As casino attorney Michael Viscount said, “We need to come up with a Plan C really quickly.” A hearing will be held tomorrow morning on whether Continue reading →

Posted in Architecture, Atlantic City, Downtown, Economy, Environment, George Maloof, Hard Rock International, Harrah's, history, Macau, Revel, Steve Wynn | 1 Comment

Leaning Tower of Vegas

Posted on February 10, 2015 by David McKee

OK, the Clarion/Greek Isles/Royal Resort/Royal Americana/Paddlewheel and erstwhile Debbie Reynolds Hollywood Hotel wasn’t a grand implosion and there was a bit of a malfunction with the elevator core, what? But we’ll take what we can get when it comes to some large-scale, tourist-friendly destruction in Las Vegas these days. How would you Continue reading →

Posted in history, The Strip | 2 Comments

The fall and rise of Gary Loveman

Posted on February 6, 2015 by David McKee

In a bankruptcy as enormous as that of Caesars Entertainment, you would expect its primary culprit to be held responsible — and this has happened, after a fashion. Gary Loveman fluffyLoveman is relinquishing his titles as president and CEO, but will remain chairman of the board. That means that as long as he’s Leon Black and David Bonderman‘s fair-haired boy, Loveman is in a position to call the shots … and he’s already indicated he intends to oversee the REIT conversion of Caesars Entertainment Operating Co. (aka “Bad Caesars”). He’s got the gavel and the backing of Caesars’ two biggest investors, so Loveman is effectively in charge.

Even as its current troubles deepen, the company’s selection of a successor, Mark Frissora, late of Hertz Global Holdings, may mean going from bad to worse. According to the Minneapolis Star-Tribune, “Hertz has been reviewing its financial reports for the past three years and restating results.” Caesars’ announcement “pointed to Frissora’s experience with complex and highly leveraged companies,” which is going to come in handy at debt-strapped Caesars. For his troubles, Frissora Continue reading →

Posted in Carl Icahn, Harrah's, history, Wall Street | 4 Comments

One man’s toxic waste …

Posted on February 6, 2015 by David McKee

Wynn Everett 1

… is Steve Wynn‘s treasure. Reader thsully1 has supplied us with these photos of Wynn’s casino site in Everett. Mentally superimpose Wynn Las Vegas and decide if you’d like to go there or not. “The site is sandwiched in between a shopping center, crappy Continue reading →

Posted in Australia, Foxwoods, Macau, Massachusetts, Melco Crown Entertainment, MGM Mirage, Mohegan Sun, Neil Bluhm, Philippines, Sheldon Adelson, South Korea, Stanley Ho, Steve Wynn | Comments Off on One man’s toxic waste …

Case Bets

Posted on February 6, 2015 by David McKee

A lengthy bout of bronchitis has kept me out of action, but I’m finally on the mend and apologize for all the news coverage I missed, such as …

* First there was Deflategate. Now there’s Menzelgate. Could Idina Menzel have done prop bettors a favor by deliberately fixing the timing of her glorious, unaccompanied rendition of our national anthem? Her triumphant fist-pump could mean she’d nailed the time as surely as a Julian Edelman catch. Say not so, Idina!

* Speaking of the Super Bowl, when it comes to sports analysis, Donald Trump is a casino investor and a lousy one at that.

* Yet another state is considering making fantasy sports a Continue reading →

Posted in Donald Trump, Entertainment, Internet gambling, Iowa, Mississippi, Regulation, South Dakota, Sports | Comments Off on Case Bets

Addition in Mississippi; Subtraction in Atlantic City; Gluttony in Las Vegas

Posted on January 29, 2015 by David McKee

It was all there in black and white: $935 million in state and federal taxes paid, and $4 billion in economic. That’s what Mississippi casinos achieved, despite two closures. “The Mississippi_Capitol_Buildingnumbers reflect we’re doing OK here in Mississippi,” understated Mississippi Gaming & Hospitality Association Executive Director Larry Gregory. To help legislators make the case for the state’s casino industry against their more-prudish brethren, Gregory had this year’s report done in brochure form, highlighting facts like the staggering statistic that 71% of Mississippi’s 2.6 million visitors included a casino on their itinerary.

Mississippi posted its first casino-revenue increase since Continue reading →

Posted in Atlantic City, Dining, Economy, Glenn Straub, Louisiana, Marketing, Mississippi, Missouri, Revel, Taxes, The Strip | 1 Comment

Dismay in Wisconsin; Disorder at SLS

Posted on January 29, 2015 by David McKee

Wisconsin Gov. Scott Walker (R) has managed to bring Democrats and Republicans together — in opposition to his decision to nix a proposed Menominee Nation casino. Lawmakers kenosha hard rock casinocited the $250 million bond posted by the Menominee and the tribe’s promise to indemnify the state against any action by the Forest Lake Potowatomi as reasons to go forward. “Fear of litigation — or the risk of losing litigation — should not be a factor in your decision,” 10 legislators wrote. Walker replied that, since his decision was on file with the Bureau of Indian Affairs, the point was moot. He also reiterated that the prospect of $100 million in near-term losses to the Potowatomi (and potentially millions more) was too great a risk to run.

Kenosha residents were the picture of dejection, stung by Continue reading →

Posted in Dining, Economy, Illinois, International, Internet gambling, James Packer, Politics, Regulation, Sam Nazarian, The Strip, Tribal, Wisconsin | Comments Off on Dismay in Wisconsin; Disorder at SLS

Weak quarter for Las Vegas Sands; Penn weathers a blow

Posted on January 29, 2015 by David McKee

SheldonThere was definitely some grit in the 4Q14 financial results for Las Vegas Sands‘ Strip properties. Table play was down $102 million, or 16%. And those players who showed up played lucky. Table revenue was down 26%, or $37 million. Coin-in at the slots was healthy, though, up 8%. Looser hold percentages, however, turned the gain into a 2% loss. At $150 million, casino revenue was $38 million down (-20%). Retail, entertainment and F&B almost equaled the gambling haul, grossing $143 million (+2%). And although room rates were up, averaging $222, 81% occupancy and a decline in revenue per available room spelled a 5% decline.

Overseas, Marina Bay Sands came in above Continue reading →

Posted in California, Election, Harrah's, Indiana, Japan, Macau, Massachusetts, MGM Mirage, Penn National, Racinos, Sheldon Adelson, Singapore, The Strip, Tribal, Wall Street, West Virginia | Comments Off on Weak quarter for Las Vegas Sands; Penn weathers a blow

Super Bawl

Posted on January 28, 2015 by David McKee

Never mind that it’s one of the biggest weekends in Sin City, the National Football League continues to stick its fingers in its ears when it comes to casinos that dare whisper the words football“Super Bowl.” Not only must Las Vegas hide behind the “Big Game” euphemism when promoting Super Bowl-related events, if they show aforesaid large-scale game on TV screens that exceed 55 inches, the NFL is prepared to make trouble.

While the league might more sensibly opt for a piece of the action, which included a $119 million wagering pool last year, it prefers to pretend Las Vegas doesn’t exist. It’s missing out on a big slice of pie. According to the American Gaming Association, $3.8 billion will be bet illegally on the Super Bowl, dwarfing legal wagers into insignificance. You’d think the NFL would want Continue reading →

Posted in Architecture, Arizona, Economy, Geoff Freeman, Regulation, Sports, The Strip, Tribal | Comments Off on Super Bawl

Case Bets: IGT, Hard Rock, Golden Gaming

Posted on January 28, 2015 by David McKee

web1_WEB-IGT-LOGOProfits were slimmer for International Game Technology in 1Q15, with the company reporting $35 million, 56% less than a year ago. IGT, which is in the process of being acquired by GTECH, offered little commentary on the results. CEO Patti Hart issued a statement that “market challenges remain in the land-based casino business.” However, the company’s social-gaming sector — driven by DoubleDown Casino, up 11% — grew 23%, grossing $91.5 million.

* The former Horizon Casino on the shores of Lake Tahoe, purged of Continue reading →

Posted in Colorado, Columbia Sussex, Dining, Harrah's, Lake Tahoe, Lyle Berman, Maryland, Regulation, Sam Nazarian, Slot routes, Warner Gaming | 1 Comment

Caesars wins big

Posted on January 28, 2015 by David McKee

Ruling earlier than expected, U.S. Bankruptcy Court Judge Kevin Gross handed Caesars Entertainment a massive, possibly decisive victory in its bankruptcy fight, transferring the caesarscasino_1case from Wilmington to Chicago. Gross ruled that Caesars, despite some behavior that “on its face is suspect,” was entitled to “just enough deference” to choose its own battleground, “even though the decision may have been made to favor third parties and insiders” to choose the ground on which it would fight. He added that he felt the Chicago court would apply sufficiently stringent scrutiny to “serious allegations that the debtors’ controlling equity holders, Apollo Capital Group and TPG Capital, engaged in a series of self-dealing transactions.”

Gross said the dissident creditors “raced to Continue reading →

Posted in Current, Delaware, Harrah's, Illinois, Wall Street | 1 Comment

Caesars on the defensive

Posted on January 27, 2015 by David McKee

It’s Chicken Little time at Caesars Entertainment, where the company is sketching gloom-and-doom scenarios unless the court system goes along with its preferred Loveman speakstimeline for a prepackaged bankruptcy. “If you go to the earlier filing day, you likely jettison the [restructuring support agreement],” said a Caesars attorney, referring to the Jan. 12 involuntary bankruptcy filing being pushed by junior bondholders. “Aren’t you sort of manufacturing a restructuring agreement that in fact has holes all through it as a basis for venue,” U.S. Bankruptcy Judge Kevin Gross asked him. Caesars also had to ‘fess up that its Chicago filing was being conducted under the auspices of an affiliate, Des Plaines Development, that is perfectly solvent.

In Wilmington, Gross is weighing arguments as to whether Continue reading →

Posted in Carl Icahn, Delaware, Environment, Fontainebleau, Harrah's, Illinois, Louisiana, Wall Street | Comments Off on Caesars on the defensive

Hard Rock back to A.C.?; Today Massachusetts, tomorrow Vermont?

Posted on January 27, 2015 by David McKee

New investment in Atlantic City has yet to materialize, yet the New Jersey Casino Control Commission‘s holding of a hearing for Hard Rock International is
Hard Rock International Press Conferenceencouraging. It’s a purely theoretical exercise, a determination of suitability. Its goal, however, is for the Seminole Tribe to “act quickly if an appropriate investment opportunity arises.” And those opportunities could indeed arise should, for instance, Curtis Bashaw seek a gaming-experienced partner for his Chelsea Hotel, to which he’d like to add gambling. Also, hiring Hard Rock to run his Revel casino would be the least-daffy thing Glenn Straub has done so far.

But Hard Rock has already had a look at Revel and passed on it. So it may be going back to Plan A: Continue reading →

Posted in Economy, Glenn Straub, Hard Rock International, Nebraska, Politics, Regulation, Revel, Vermont | Comments Off on Hard Rock back to A.C.?; Today Massachusetts, tomorrow Vermont?

Golden, Scientific on the move

Posted on January 26, 2015 by David McKee

Golden Gaming continues to absorb its competitors. Its latest acquisition is Lakes Entertainment, one of the most venerable names in Midwestern gambling. Golden will pay a Sartini37% premium to purchase Lakes at $9.57 a share. While 64% of shareholders will be Lakes ones, the power shift is decisively in Golden’s favor. The latter’s Blake Sartini (right) becomes CEO and chairman of the merged, publicly traded company, Golden Entertainment (and receives 7.8 million shares of stock), while longtime Lakes CEO Lyle Berman moves down to board member and consultant. A similar arrangement will be made for Lakes CFO Tim Cope.

The merger brings Golden’s already-considerable slot inventory to 9,250 one-armed bandits in over 600 locations, virtually all in Nevada. It also puts Golden in the driver’s seat of Maryland‘s Rocky Gap Casino, giving it an East Coast presence for the first time. Golden is projecting $348 million in revenue this year. There’s some addition-by-subtraction in the deal: Golden will divest 10% interests in Horseshoe Cleveland and Horseshoe Cincinnati. It will also unload a pair of horse tracks, one in Ohio and one in Kentucky, for a mere $750,000.

* Scientific Games is very much in Continue reading →

Posted in Bally Technologies, Golden Gaming, Horseracing, IGT, Kentucky, Maryland, Ohio, Scientific Games, Slot routes, Technology, Wall Street, WMS Industries | Comments Off on Golden, Scientific on the move

Where will the Caesars fight be fought?

Posted on January 26, 2015 by David McKee

In the battle between Caesars Entertainment and its dissident creditors, the opening route — the choice of venue — may be the decisive one. As noted previously, Caesars wants Gary_loveman_Cropped_fmtthe case heard in Chicago and not in Wilmington, even though it is a Delaware-incorporated company. Dissidents point out that Delaware is practically in CEO Gary Loveman‘s back yard of Wellesley, Massachusetts. For its part, Caesars has proffered a variety of excuses … Chicago is closer to Las Vegas, there are more Caesars casinos around it, its law firm is headquartered there, etc.

And then there’s this: “Federal courts in Chicago apply a looser standard when deciding whether to release company affiliates, owners or insiders from liability related to a bankruptcy. Such third-party releases are harder Continue reading →

Posted in Delaware, Economy, Harrah's, Illinois, Macau, Massachusetts, MGM Mirage, Sports, The Strip, Wall Street | Comments Off on Where will the Caesars fight be fought?

Possible Pennsylvania cutback?; Prudes pressured Walker

Posted on January 26, 2015 by David McKee

Once casinos move to fill a vacuum, it’s difficult to push them back. But that’s what Pennsylvania state Rep. Will Talman (R) is trying to do. He’s proposing a bill to close Pennsylvania 064Keystone State casinos nightly between 2 a.m. and 6 a.m. As justification, he cites existing laws which require non-casino bars to close between those hours. Casino bars can stay open — they just can’t serve alcohol during that period. Considering that, last year, the Legislative Budget & Finance Committee recommended 24-hour liquor sales in Pennsylvania casinos, I’d give the monied interests the upper hand over Talman. The latter is certainly shooting dice with the state budget by suggesting that casinos close down for one-sixth of their operating hours. Ideology would seem to have gotten the upper hand with him over fiscal sense.

* Speaking of ideology, 11th-hour political pressure on Continue reading →

Posted in International, Iowa, Macau, Pennsylvania, Politics, Regulation, Sheldon Adelson, Slot routes, Tribal, Wisconsin | Comments Off on Possible Pennsylvania cutback?; Prudes pressured Walker

Adelson gives himself promotion; Making Macao family friendly

Posted on January 23, 2015 by David McKee

With Edward Tracy retiring and Rob Goldstein only undertaking the presidency of Sands China on an interim basis, Sheldon Adelson has named himself CEO of Sands Sheldon AChina in addition to Las Vegas Sands. This is viewed as a positive move, centralizing the chain of command that connects Las Vegas, Macao and Singapore. “Business strategy has always been decided by Mr. Adelson all this while, so in terms of strategy, I wouldn’t expect any change,” offered BNP Paribas analyst Goh Shengyong.

Between them, Macao and Singapore represent 88% of Sands’ revenue and Adelson assumes the reins in China at a time of crisis, as casino revenues continue to slide. The government’s anti-graft campaign hasn’t gone away as Adelson predicted it would, and high rollers continue to keep a low profile. With its mass-market orientation, Sands China can say it’s insulated but it’d be kidding itself.

* Casino crisis or not, the Brookings Institution and JPMorgan Chase ranked Macao #1 in the world for Continue reading →

Posted in Architecture, Economy, James Packer, Lawrence Ho, Macau, Melco Crown Entertainment, MGM Mirage, Sheldon Adelson, Singapore, Steve Wynn | Comments Off on Adelson gives himself promotion; Making Macao family friendly

Stir crazy in Massachusetts

Posted on January 23, 2015 by David McKee

For all the restrictions it has placed upon its casinos, there’s one restraint the Massachusetts Gaming Commission wants to ease. It has proposed raising the $600 ‘IRS lockdown’ imposed on slot winners: “a player will not be able to play the machine again Crosbyuntil a casino or slots employee takes down the player’s name, address and 5 percent off of the $600 in winnings for a state withholding tax.” The prevailing lockdown point in the U.S. is $1,200. Commissioners are worried that the inconvenience of a lower jackpot lockdown could impel them to play in Rhode Island or other neighboring states.

“And the whole point of the Massachusetts law was to repatriate Massachusetts dollars that are now being spent in other states, and this runs counter to Continue reading →

Posted in Environment, Louisiana, Massachusetts, Ohio, Penn National, Regulation, Rhode Island, Taxes | Comments Off on Stir crazy in Massachusetts

Possible rescue for Delaware tracks; New boss in Atlantic City

Posted on January 23, 2015 by David McKee

Going against Gov. Jack Markell (D), Delaware lawmakers are wrapping up a relief package for the state’s beleaguered racino industry. The tax rate on table games would be cut Delaware leg-hallfrom 29% to 15% and the $3 million licensing fee would be eliminated. The state would also increase its percentage of vendor costs to 43.5%, costing taxpayers an additional $3 million annually. Slot machine revenue would get a 5% credit to offset marketing and capex costs. (“They want us to pay the full thing and that’s not fair,” said one detractor.) A controversial add-on would divert 1% of revenue from the state to the horseracing industry. Main proponent state Sen. Brian Bushweller (D) was forthright in his reasoning, saying, “We’re simply taking too much money. The simple solution to a simple problem is let’s take less money from the casino industry.”

Added Dover Downs CEO Denis McGlynn, “If you want this industry to fight the competition, you have to Continue reading →

Posted in Atlantic City, Cordish Co., Delaware, Harrah's, Maryland, Politics, Racinos, Taxes | Comments Off on Possible rescue for Delaware tracks; New boss in Atlantic City