Cuomo’s New York mess thickens

Posted on January 14, 2015 by David McKee

Bowing to pressure from New York State Gov. Andrew Cuomo (D), the Gaming Facility Location Board is starting the clock on a new round of bidding for casinos in the Seal_of_New_York.svgstate’s thinly populated Southern Tier. It didn’t draw much interest last time. Only Tioga Downs and Traditions at the Glen Resort (which has withdrawn from consideraton) stepped up to the plate. Ergo, the Location Board decided to withhold the fourth of four gaming concessions.

“Governor Cuomo initially supported the decision, saying that a casino was not likely to spur economic development in the relatively sparsely populated area near Binghamton. But after hearing criticism from elected officials and local residents, Mr. Cuomo asked the board to consider a new round of bidding for a casino license specifically for the Southern Tier,” reports Continue reading →

Posted in Economy, International, James Packer, LVCVA, New York, Philippines, Regulation, South Korea, Sports, Technology, The Strip, Transportation | Comments Off on Cuomo’s New York mess thickens

New day at the AGA; Illinois casinos feel the slot-route squeeze

Posted on January 14, 2015 by David McKee

For the first time, a Native American gaming enterprise has become part of the American Gaming Association, as Seminole Hard Rock Gaming has cracked what had been the Freemanlobbyist equivalent of a whites-only country club. It’s part of an image makeover that includes a spiffy new headquarters in Washington, D.C. that displays casino games, boasts a sports ticker and will soon install a poker table. As AGA President Geoff Freeman put it, “The organization needs to be more transparent, more inclusive and more contemporary.” (A bit of a poke at predecessor Frank J. Fahrenkopf‘s governing style.) Looking back on his days in the health-insurance industry, Freeman characterized his new gig as “vibrant, appealing and fun.”

Freeman is not only engaging in talks with other Native American tribes, his goal is for the AGA to eventually encompass all Continue reading →

Posted in Alabama, Economy, Geoff Freeman, Greenwood Racing, Hard Rock International, Illinois, LVCVA, Missouri, Penn National, Slot routes, Tribal | 1 Comment

Caesars’ hand forced; Pick a peck of Packer

Posted on January 14, 2015 by David McKee

Efforts by Appaloosa Management and others to push Caesars Entertainment Operating Co. into an involuntary bankruptcy have lit a fire under Caesars. The company is Loveman speaksmoving its planned bankruptcy filing up from Jan. 20 to tomorrow.  Appaloosa and cohorts Tennenbaum Capital Partners LLC and Oaktree Capital Management, however are going to seek to prevent Caesars — which is incorporated in Delaware — from filing anywhere until their own involuntary bankruptcy motion is heard in the Diamond State.

“If the restructuring goes as planned for Caesars’s owners, Apollo [Management] and TPG will keep a stake in the parent company, allowing them to share in the upside if its fortunes improve,” reports Continue reading →

Posted in Genting, Geoff Freeman, Harrah's, James Packer, Movies, Philippines, Politics, The Strip, Wall Street | Comments Off on Caesars’ hand forced; Pick a peck of Packer

Caesars’ shell game; Phua gambit backfires

Posted on January 13, 2015 by David McKee

Caesars Entertainment continues to plow toward a Jan. 20 prepackaged bankruptcy filing, but it’s got a tough row to hoe. For one thing, it must get around the involuntary bankruptcy motion by Appaloosa Management, Oaktree Capital Management and caesarscasino_1Tennenbaum Capital Partners. As Temple University School of Law professor Jonathan Lipson pithily put it, “They want to throw sand in the gears and slow down a prenegotiated plan.” However, the dissenters may have tripped over their own shoelaces by delaying Caesars’ own bankruptcy and giving it more time to sell and reshuffle assets. They’re also bumping up against the automatic stay that is applied to litigation during a Chapter 11.

What’s more, unidentified senior creditors are demanding pre-approval of Caesars’ bankruptcy, which slow those gears a bit more. “Examiners are often frowned upon by Continue reading →

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Fly Mohegan; End of an era; Washington takes up i-gaming

Posted on January 13, 2015 by David McKee

Mohegan Sun“Never before has a traveler been able to leave New York City, fly to Mohegan [Sun], enjoy a world class show, have a terrific dining experience, play in the casino and be back home … by midnight.” So says Fly Blade General Manager Evan Licht, touting his company’s new helicopter service from the Big Apple to Mohegan Sun. It’s not for everybody … not at $625 per one-way trip. (If you’ve got a bucketful of Mohegan Momentum points you can bring that price down a bit.) For special occasions, round-trip packages will be organized. Call me pessimistic, but I don’t think this will last. How many high-rollers will want to be choppered out to Mohegan Sun, especially after similar service to Atlantic City has fizzled?

* As the history of Nevada gaming regulation is written, it is inextricably linked with Continue reading →

Posted in Dubai, Genting, history, Internet gambling, Mohegan Sun, Pansy Ho, Politics, Sheldon Adelson, Transportation | 1 Comment

Start making sense; Walker dodges a bullet

Posted on January 12, 2015 by David McKee

“Indianapolis is making it impossible to run cities,” complains Hammond Mayor Thomas McDermott Jr., who’s nettled by a proposal to eliminate the $3 admission fees Indiana Pencecasinos pay on behalf of their customers. The port authority of Hammond is run almost entirely off such fees from Horseshoe Hammond. The fee cancellation that’s got McDermott nettled is part of a generally sensible package of reforms proposed by a study committee of the Indiana General Assembly, which also recommended moving riverboat casinos ashore and permitting live dealers at racinos. These ideas ran into an iron-fisted snit by Gov. Mike Pence (R) who, through some tortured form of reasoning, deems them an expansion of gambling.

The two Majestic Star vessels, in Gary, would be particularly happy to see the Assembly’s projected changes put into action. They’re the only riverboats in the state that still have to carry a crew and rough weather means they have to cease operation. Majestic Star CEO Pete Liguori wants to build a $135 million casino next to Majestic Star’s hotel, but he must Continue reading →

Posted in Atlantic City, Economy, Entertainment, Greenwood Racing, Harrah's, Horseracing, Indiana, Macau, Melco Crown Entertainment, Pennsylvania, Regulation, Tribal, Wisconsin | 1 Comment

Rendering unto Caesars’ debtors; Missouri bounces back

Posted on January 12, 2015 by David McKee

Before Caesars Entertainment could file for bankruptcy, second-tier bondholders struck first. They have filed with a U.S. bankruptcy court in Delaware, seeking to supersede IMG-20130507-00006Caesars’ prepackaged bankruptcy. At issue are the controversial transfer of highly valuable Caesars assets into subsidiary Caesars Acquisition Co., shielding them from Chapter 11. “Insiders paid themselves hundreds of millions of dollars while moving assets out of the reach of second-lien debt holders, according to the filing,” asserts the filing, as summarized by Bloomberg News.

The document itself makes the following j’accuse:  Continue reading →

Posted in Ameristar, Delaware, Foxwoods, Harrah's, Isle of Capri, Massachusetts, Missouri, Penn National, Pinnacle Entertainment, Tropicana Entertainment | Comments Off on Rendering unto Caesars’ debtors; Missouri bounces back

Gaming board yields to Cuomo’s pressure; Indian givers in Florida

Posted on January 12, 2015 by David McKee

By leaning on the New York State Gaming Facility Location Board, Gov. Andrew Cuomo appears to have persuaded it to reopen the bidding process for a casino in the state’s Andrew_CuomoSouthern Tier. However, if Tioga Downs owner Jeff Gural thought he’d get a concession by default he’s in for a rude surprise. New York Gaming Commission Chairman Mark D. Gearan said he’s looking for “generate new proposals focused on the Southern Tier.” So it could be a whole new ballgame. Gural, meanwhile, thinks his $87 million purchase of Tioga Downs and promise of additional investment are being given insufficient consideration.

Putting a casino in the Southern Tier is not without its risks. Its 600,000 residents are considered a small population base for supporting a regional casino. For instance, Continue reading →

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Wynn proceeds in Boston, Genting stalls in Miami

Posted on January 9, 2015 by David McKee

Although Steve Wynn‘s Everett project is besieged with lawsuits, a member of the Massachusetts Gaming Commission is relatively sanguine about the resort’s prospects. “Steve-Wynn-201198-1-402I don’t think necessarily the suit will delay it; I think it is the various permit-granting authorities that really hold the timing keys now,” said Commissioner James McHugh, referring to a recent legal hissy fit thrown by Boston Mayor Martin “McCheese” Walsh.  “The statute’s clear as to who gets the vote, and the host community gets the vote, and the surrounding community doesn’t, and the commission has concluded Boston is a surrounding community. I just don’t foresee any other action the commission can take,” rejoined McHugh. There’s still a gamut of approvals that Wynn Resorts needs to run, including from the Massachusetts Environmental Policy Act and the Boston Transportation Department.

“I don’t see any blocker to the casino. Everything that Continue reading →

Posted in Florida, Genting, International, Massachusetts, New York, Regulation, Sports, The Strip | 1 Comment

That wily Glenn Straub

Posted on January 9, 2015 by David McKee

Freed by Judge Gloria Burns of encumberances, Revel is Glenn Straub’s for the taking — provided he’s willing to pay $95 million. Ir sounds like Straub’s position is softening. Although he has the power to evict Revel’s remaining tenants, he just revel-resort-in-atlantic-citywants to move them to other parts of the complex. Less practically, he wants Revel’s power plant torn down. He’s also talking about high-speed ferry (jetfoils?) transportation to Manhattan, “some gaming” and — get this — the world’s largest water park, costing $108 million. Straub would get some of the dough by selling re-naming rights to megaresort. Since he is already commissioning designs, we can take it that he is resigned to paying the full $95 million and getting on with putting his visions for Revel into reality.

Part of the rationale for the water park Continue reading →

Posted in Atlantic City, Economy, Entertainment, Glenn Straub, Indiana, Politics, Revel, South Dakota, Sports, Taxes, Transportation | 2 Comments

Caesars, bankrupt, rewards Loveman

Posted on January 8, 2015 by David McKee

Both sides in the Caesars Entertainment bankruptcy are playing hardball. According to Bloomberg News, senior bondholders don’t care for what Caesars is offering and want a caesars-palace-02bigger payday. “Investors who say they own $1.6 billion in Caesars first-lien notes hired law firm Debevoise & Plimpton LLP to negotiate for better terms, said My Chi To, a partner at the New York-based firm.” Time is on their side, as Caesars has until Monday to settle with its creditors. Back on Dec. 28, it had 39% of bondholders in support of its offer, well short of the magic number of 60% that is needed for its restructuring plan to go through. (Two-thirds approval is required by the bankruptcy court.) Caesars claims now to have 55% support.

The Debevoise-represented faction, however, is reported to be holding out for 100 Continue reading →

Posted in Harrah's, Louisiana, South Korea, The Strip, Wall Street | 1 Comment

Buckeye State bullseye

Posted on January 7, 2015 by David McKee

Ohio casinos and racinos posted spectacular figures last month. By the calculations of Deutsche Bank analyst Carlo Santarelli, revenues were up 37% (or 18% on a same-store
ohio_plate_08basis). Horseshoe Cleveland, up 16.5%, was also the top grosser — $21 million, while Belterra Park continues to be the poor relation of the Pinnacle Entertainment family, bringing in only $5 million ($121/slot win/day). The top five were rounded out by Hollywood Columbus, finally out of the doghouse ($17 million, up 5%) Horseshoe Cincinnati ($17 million, up 20%), Hard Rock Rocksino ($16 million) and Hollywood Toledo ($15 million, up 5%). The only real loser was Caesars Entertainment‘s ThistleDown Racetrack, walloped with a 15% decline and a $9 million gross.

Penn’s casinos continue to improve their Continue reading →

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Turning point for Illinois?; Cuomo creates a mess

Posted on January 7, 2015 by David McKee

Santa Claus was extra generous to casinos in Illinois last month (and they sure could use a little Kringle largesse). Revenues grew to 6%, visitation was up 5% and spend per visitor rose Aurora1%. All that added up to a winning formula for the Land of Lincoln. In the case of Penn National Gaming, it was a flat month, with Empress Joliet (+6.5%) making up for a miniscule, 1% decline at Hollywood Casino Aurora and a bigger one (-7%) at weak sister Argosy Casino Alton. It was an even better month for Boyd Gaming‘s Par-A-Dice, with revenues up 4%, while Grand Victoria gained half that amount.

Somebody added a rocket launcher to Harrah’s Joliet, whose grosses shot Continue reading →

Posted in Boyd Gaming, Current, Economy, Foxwoods, Hard Rock International, Harrah's, Illinois, MGM Mirage, Mohegan Sun, Neil Bluhm, New York, Penn National, Wall Street | 1 Comment

Quote of the Day

Posted on January 7, 2015 by David McKee

MGM splash“There’s a workout room with elliptical machines, free weights and medicine balls; a lunchroom with free entrées, soups and salad bar; and a fun room with a pingpong table where tables and chairs are sometimes removed for free yoga sessions.” — description of MGM Resorts International‘s new corporate offices.

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Wynn faces sore loser in Boston

Posted on January 6, 2015 by David McKee

WalshSteve Wynn was finally able to close a $35 million deal on the site of his Everett, Massachusetts, casino project. That’s good, because Wynn has to deal with new perfidy from Boston Mayor Martin “McCheese” Walsh. The latter’s long silence after Wynn was awarded a Hub casino was too good to be true. No, Walsh was busy cooking up trouble for Wynn.

His argument — which flies in the face of lengthy Massachusetts Gaming Commission precedent — is that the Charlestown neighborhood, which borders on Everett, is really a host community because Wynn-bound traffic will pass through it. Ergo, Charlestonians should get to Continue reading →

Posted in Derek Stevens, Downtown, Massachusetts, Politics, Regulation, Steve Wynn, Tamares Group, Technology | 1 Comment

Revel: Straub vs. Straub

Posted on January 6, 2015 by David McKee

If Glenn Straub can’t have Revel, he’s determined to see that no one else can … including Glenn Straub. The sole remaining bidder for Atlantic City‘s $2.4 billion white elephant, StraubStraub’s $95.4 million bid for it was accepted by bankruptcy court Judge Gloria Burns. However, she wouldn’t let Straub knock the price down to $87 million (his original offer, minus the mandatory breakup fee). This prompted a hissy fit from Straub, who signaled — through lawyer Stuart Moskowitz — that he wanted the sale to himself blocked. (You read that right.)

Revel attorney John Cunningham was suitably gobsmacked, saying, “I think in my 23 years of practicing bankruptcy law this is my first time to see that.” Adding to the general air of ambivalence, Straub was heard to mutter something about being more interested in country clubs and vineyards. Focus, Glenn!

Perhaps Straub’s best hope lies Continue reading →

Posted in Atlantic City, Cordish Co., Glenn Straub, Harrah's, Maryland, Penn National, Revel, Tribal, Wisconsin | Comments Off on Revel: Straub vs. Straub

New Yorkers want a do-over; Another EuroVegas folds

Posted on December 29, 2014 by David McKee

Magnanimously, Traditions at the Glen partner — and losing casino bidder — Peter Walsh is throwing his support to racino mogul Jeff Gural. The latter is trying to pry New York‘s fourth and last new-casino license loose from New York State’s siting board, with a Lago Resort 2view to upgrading his Tioga Downs racino into a full-service casino. “The people up there [near the Pennsylvania border] were promised a casino, and somehow the casino they were promised ended up near Canada,” said Gural, who promises he can be operational in three months. The siting board had opted for Tyre, betwixt Syracuse and Rochester. Gural and Walsh’s plea has the support of several lawmakers, including Rep. Tom Reed (R). No fracking, no casino, why don’t you just tell ’em they can all move someplace else?,” fumed Gural, who called the choice of Tyre “unbelievably stupid.”

Up in Tyre, however, it’s all good for winning bidder Thomas Wilmot, who says more competition Continue reading →

Posted in California, Delaware, Economy, Genting, Hard Rock International, Harrah's, International, Internet gambling, Lawrence Ho, Macau, Melco Crown Entertainment, MGM Mirage, New York, Pennsylvania, Philippines, Politics, Racinos, Tribal, Wall Street | Comments Off on New Yorkers want a do-over; Another EuroVegas folds

Atlantic City faces uncertain 2015; Wynn remakes Boston look

Posted on December 29, 2014 by David McKee

It can’t get any worse. That’s the cautious mantra emerging from the Boardwalk, where Atlantic City shed four casinos last year. Trump Taj Mahal is on life support provided by CaesarsBallysACCarl Icahn and Caesars Entertainment CEO Gary Loveman has cast doubt upon the future of Bally’s Atlantic City. Revenue slippage is expected to continue, albeit at a slower rate. And, of course, having less competition has made life easier for the survivors … except the Taj. Wannabe Revel owner Glenn Straub continues to play hardball. He’s now lowered his offering price for the defunct resort to $87 million, effectively subtracting his $3 million breakup fee from his previous offer, never mind Continue reading →

Posted in Architecture, Atlantic City, Carl Icahn, Economy, Glenn Straub, Harrah's, Massachusetts, Regulation, Revel, Steve Wynn, Technology, Tribal, Trump Entertainment Resorts | Comments Off on Atlantic City faces uncertain 2015; Wynn remakes Boston look

Happy New Year from the AGA

Posted on December 29, 2014 by David McKee

Geoff Freeman, dynamic leader of the American Gaming Association, has a wish list for the new year. It includes a crackdown on illegal, offshore gambling and the eradication of gray-market Internet “sweepstakes” cafes. He’d also like to see the expansion of legal sports betting. The latter would be a blow to Las Vegas but New Jersey and California would probably say, “not our problem.”

Posted in Geoff Freeman, Internet gambling, Sports | Comments Off on Happy New Year from the AGA

Quote of the Day

Posted on December 29, 2014 by David McKee

slot machine“We have hit the tipping point. The industry has embarked upon the unsound strategy of raising the price of the product. I don’t think they want to admit they priced it too high. They keep adding bonusing rounds and top-box features with bells and whistles, but they are expensive. In Nevada, some gaming operators even petitioned the state to raise the maximum allowable hold percentage. Contrast that with a place like West Memphis [Arkansas], which has Instant Racing at what I believe is about 5.5% hold, and the game is very popular. They have about 1,000 machines and they are packed, while Tunica is dying on the vine.” — Global Market Advisors co-founder Andrew Klebanow on trends that may be depressing the American gaming market.

Posted in Economy, Marketing, Technology | Comments Off on Quote of the Day