Walker finally acts; Pessimistic about Japan

Posted on January 23, 2015 by David McKee

After numerous delays, Wisconsin Gov. Scott Walker (R) finally was roused from inaction on the proposed Menominee Nation casino for Kenosha. The governor’s scott-walker1response to the tribe was a firm “no,” predicated upon forecasts of revenue losses from the state’s other tribes, particularly the Potowatomi Tribe and Ho-Chunk Nation. Walker passed the blame to his predecessor, stating “Due to the compacts negotiated by Governor [Jim] Doyle, the current cost to taxpayers of approving the proposed casino project is up to $100 million and the long-term economic hit to the state budget would be a potential loss of hundreds of millions of dollars.”

The Potowatomi were quick to reward Walker for his decision, releasing Continue reading →

Posted in California, International, Japan, PokerStars, Politics, Sheldon Adelson, Taxes, Tribal, Wisconsin | 1 Comment

The man who couldn’t make up his mind

Posted on January 22, 2015 by David McKee

Wisconsin Gov. Scott Walker (R) has become the Hamlet of the casino industry, torn between varying tribal interests and uncommitted to decisive action. He’ll have to make Hamletsome decision on the Menominee Nation‘s Hard Rock International project in Kenosha by Feb. 19 because that’s all the time Washington will give him. If Walker’s long-awaited decision can be predicted from recent developments, the Menominee are in for a disappointment. One could so far as to say that Walker’s people are drafting a compact that’s designed to fail.

Already, the Bureau of Indian Affairs has struck a provision whereby the Potowatomi Tribe would be reimbursed by the state for revenue shortfalls. Now a compact provision calling for the Menominee to make the Potowatomi whole is drawing scrutiny. Department of Administration Secretary Mike Huebsch advised Walker that the state could be doubly exposed in a Potowatomi court challenge of the compact. One, Continue reading →

Posted in Hard Rock International, Louisiana, Pinnacle Entertainment, Regulation, Taxes, Tribal, Wisconsin | 1 Comment

Straub wins again; Delaware, racinos at an impasse

Posted on January 22, 2015 by David McKee

Revel is Glenn Straub‘s — if he wants it. HQ nightclub, ACR Energy Partners and other Revel tenants saw their objections swept aside at a bankruptcy hearing yesterday. Judge Jerome revel-appeal-720x340Simandle wrote that “the court notes that, the palpable risk of losing a ready buyer demonstrates, without more, a risk of substantial harm” when there was a bid on the table, a risk too great to take. The plaintiffs fear that an earlier ruling by Judge Gloria Burns that Revel can be sold “free and clear of liens, claims, encumbrances and interests,” means they could be evicted and their investments eradicated. But Straub’s Polo North Country Club said it would rather forfeit a $10 million deposit than humor the dissidents.

“The land that we have the right to occupy would have been sold to Continue reading →

Posted in Atlantic City, Delaware, Glenn Straub, Politics, Racinos, Revel, Taxes | 1 Comment

Mohegan Sun ambushes Wynn

Posted on January 22, 2015 by David McKee

Pursuing by lawsuit what it could not win on merit, Mohegan Sun has piled onto the scrum of litigation against the Massachusetts Gaming Commission for having awarded a Massachusetts GamblingBoston-area casino license to Wynn Resorts (which had no comment). Mohegan Tribal Gaming Authority CEO Mitchell Etess felt no shame at playing the victim card. “We were the most injured party. Yeah, this was bad for Revere and for those workers losing their jobs,” he shrugged. “But we were really not treated fairly at the end of the day, and it was time for us to stand up for ourselves.”

Mohegan Sun, in its filings, asserts that Steve Wynn was awarded several mulligans in the application process while Continue reading →

Posted in Architecture, Massachusetts, Mohegan Sun, Regulation, Steve Wynn | 1 Comment

New chief at Resorts World; Pay cut for Wynn

Posted on January 21, 2015 by David McKee

In a change of horses that might kick-start development of dormant Resorts World Las Vegas, boss Christian Goode is out, replaced by Gerald Gardner, a former top aide to Resorts World LVNevada Gov. Brian Sandoval. The groundbreaking for the project has now been formally pushed back to sometime in 2Q15. “Creating something substantial that will be a draw to both locals and visitors alike is no easy feat, and we want to get it right,” Genting Group Vice President of Corporate Communications Michael Levoff said by way of explanation. He added that Genting has been quietly at work on “utility relocation” and on the permitting process.

Since Genting’s resort aspirations in Florida and New York have come a-cropper, the company will Continue reading →

Posted in Charity, Cordish Co., Florida, Genting, Harrah's, Maryland, New York, Steve Wynn, The Strip | Comments Off on New chief at Resorts World; Pay cut for Wynn

Straub holds Revel hostage; Caesars cutbacks begin

Posted on January 21, 2015 by David McKee

Revel continues to be a bone of contention. Utility supplier ACR Energy Partners is leading a group of creditors attempting to block the sale of Revel to Glenn Straub. The revel_0601latter, they assert, could simply walk away from all contracts, claims, liens and leases on the property. In turn, Straub attorney Stuart Moskowitz argues that, for $10 million, his client could just scuttle the deal. “My client would say, ‘I’d rather lose $10 million now than bleed $5, $6, $7 million a month for the next three years’,” he explained. Revel nightclub tenant Idea Boardwalk counters that it will lose its whole $16 million investment if Straub’s purchase is consummated.

ACR’s Craig Martin contends that, with Revel in hand, Straub would Continue reading →

Posted in Atlantic City, Carl Icahn, Dining, Glenn Straub, Harrah's, Revel, The Strip, Trump Entertainment Resorts | 1 Comment

Politicians desert Atlantic City; Cuomo dreams on

Posted on January 20, 2015 by David McKee

Despite four years of yeoman’s work repairing and altering Atlantic City‘s image, the Atlantic City Alliance is being abandoned like an orphan on the church steps. State Senate SweeneyPresident Steve Sweeney (D, left) blamed the casinos for killing it off and Borgata President Tom Ballance confirmed that the ACA had become a low priority: “Atlantic City is on the brink if bold actions are not taken in the very near term” … actions that don’t include the ACA.

Added state Sen. James Whelan (D), “things have changed now. We’re in an emergency situation, and there are more urgent needs for the money the alliance had been using could be put to better uses, even if it means no one is promoting the resort as a whole.” The ACA’s remaining $30 million will be rechanneled into either shoring up Atlantic City’s finances or financing “a development agency to attract new business and homes here,” according to The Associated Press.

Gov. Chris Christie‘s envoy to Atlantic City, Jon Hanson, pronounced the ACA’s work Continue reading →

Posted in Atlantic City, Boyd Gaming, Cordish Co., Harrah's, Marketing, Maryland, New York, Pennsylvania, Politics, Tourism, Wall Street | Comments Off on Politicians desert Atlantic City; Cuomo dreams on

Casinos slump in Illinois, boom in Arkansas

Posted on January 20, 2015 by David McKee

Never mind that Illinois casino admissions were down 1.4 million last year and the state’s gambling houses brought in $87 million less than in 2013. Politicians are preparing to try Raunerand ram another big gaming expansion through the Legislature, counting on the support of new Gov. Bruce Rauner (R, right), who is said to be “open” to persuasion. In the plan currently being floated, Arlington International Racecourse would get 1,200 slots and casinos would go into Lake County, Chicago, Rockford, Danville, and an undesignated southern suburb of the Windy City. Legislators continue to imagine that more gambling will be the panacea to Illinois’ financial problems, all evidence.

“Gambling expansion would just sift people from one place to another and would not increase revenue,” said  Continue reading →

Posted in Arkansas, Economy, Illinois, MGM Mirage, Penn National, Politics, Racinos, Taxes, Technology | Comments Off on Casinos slump in Illinois, boom in Arkansas

Celebrity Caesars investors get clipped

Posted on January 20, 2015 by David McKee

caesars-palace-02As the opposing sides entrench for an acrimonious battle over the assets of Caesars Entertainment, a few early losers are emerging. Unsecured creditor Robert DeNiro‘s Nobu in Caesars Palace is owed $459,964 and loud-mouthed chef Gordon Ramsay can yell all he wants but he’s probably out $307,479. Couldn’t happen to a nicer guy.

In better news for Caesars, the merger of its WSOP.com with 888poker.com (which uses the same software) has pushed the former to the lead in New Jersey gaming traffic, with a 50% increase. 888, also known as Continue reading →

Posted in Atlantic City, Boyd Gaming, Charity, Dining, Harrah's, Internet gambling, New York, Reno, The Strip, Tourism, Transportation, World Series of Poker | Comments Off on Celebrity Caesars investors get clipped

Indian givers in D.C.; Mixed bag for Foxwoods, Mohegan Sun

Posted on January 19, 2015 by David McKee

Arizona‘s congressional delegation continues to single out the Tohono O’odham Nation for being too successful. Sens. John McCain (R) and Jeff Flake (R), and Reps. Trent Franks and West Valley ResortPaul Gosar are trying yet again to legislate the Tohono O’odham’s $400 million casino project out of existence. Other tribes in the area must feel proud that they can get two senators and a brace of congressmen to carry water for them. As Arizona Republic columnist E.J. Montini wrote of the nervily worded Keep the Promise Act, “Members of the U.S. government, which has broken just about every treaty ever made with the nation’s many tribes, is now trying to tell one of them to ‘keep the promise.'”

As Montini writes, the Tohono O’odham never promised not to build a casino on off-reservation lands, ones the acquired as a make-good for the flooding of ancestral lands in the 1980s. The tribe was simply smarter than its adversaries and pounced on Continue reading →

Posted in Arizona, Economy, Foxwoods, Geoff Freeman, International, Mohegan Sun, Politics, Regulation, Sports, Tribal | Comments Off on Indian givers in D.C.; Mixed bag for Foxwoods, Mohegan Sun

Sands scores in Pennsylvania; More nonsense from Trump

Posted on January 19, 2015 by David McKee

Pennsylvania isn’t anywhere near done with building casinos but it is feeling market saturation. A $40 million decline in slot winnings pushed casinos to sub-2013 levels. The proliferation of casino product did not help. “When I came here six years ago, there were Sands Bethworksfour casinos within 175 miles of the Meadows. Now there are 12. There are more casinos and not much growth in population,” lamented Meadows Racetrack & Casino Vice President Sean Sullivan.

Still, the casinos and racinos finished the year strong, especially Sands Bethlehem. There, a $21 million gross pushed the Las Vegas Sands casino to its best year ever. (And to think Continue reading →

Posted in Cantor Gaming, Donald Trump, Macau, Massachusetts, Michael Gaughan, Pennsylvania, Regulation, Sheldon Adelson, Sports, Steve Wynn, TV | Comments Off on Sands scores in Pennsylvania; More nonsense from Trump

Quote of the Day

Posted on January 19, 2015 by David McKee

“At least we are not Detroit.” — Atlantic City Mayor Don Guardian, trying to put a positive spin on the Boardwalk‘s lean times.

Posted in Atlantic City, Detroit, Economy | Comments Off on Quote of the Day

Caesars bankruptcy stymied; Big Total Rewards payday

Posted on January 19, 2015 by David McKee

Just when it looked like Gary Loveman & Co. were going to get away with murder in the Caesars Entertainment Operating Co. bankruptcy, U.S. District Judge Shira caesarscasino_1Scheindlin said, in essence, ‘Not so fast.’ Judge Scheindlin found the movement of assets and stripping of guarantees from creditors to be in violation of the Trust Indenture Act of 1939. The guarantee removal is “an impermissible out-of-court restructuring,” she ruled, precisely what the act “is designed to prevent.” Caesars endgame was to but CEOC “into bankruptcy while protecting Apollo Management LP and TPG Inc. from CEOC’s creditors.” She added that the companies’ bobs and fakes were “an impairment of the right to sue for payment.”

Bankruptcy may be a headache for Caesars management but it’s a happy day for Total Rewards members. In an e-mail blast Continue reading →

Posted in Entertainment, Harrah's, Marketing, South Korea, The Strip, Wall Street | Comments Off on Caesars bankruptcy stymied; Big Total Rewards payday

Loveman succeeds: Caesars bankrupt

Posted on January 15, 2015 by David McKee

Loveman fluffyNot wasting any time, CEO Gary Loveman put Caesars Entertainment Operating Co. into Chapter 11 today, filing the motion in Chicago to circumvent a Delaware lawsuit. (The reason for the Windy City filing may go a lot deeper than proximity to Harrah’s Joliet; legal precedents in that district could allow Caesars to stiff its creditors.) The company provided this handy primer as to which assets were and weren’t in the doghouse. In a video message, Loveman promised business as usual, including the preservation of all Total Rewards point accruals and procedures. Laudably, he also vowed not to claw back any salaries or benefits. He did try to shift the blame for Caesars’ crash-and-burn to the Great Recession and away from his truly reckless LBO, which crushed the company under unsustainable debt.

In the end, Loveman got the support of 80% of bondholders, well more than Continue reading →

Posted in Boyd Gaming, Delaware, Economy, GLPI, Harrah's, Illinois, Lake Tahoe, Louisiana, Mississippi, New York, Penn National, Pinnacle Entertainment, Racinos, The Strip, Tilman Fertitta, Wall Street | Comments Off on Loveman succeeds: Caesars bankrupt

Atlantic City hangs in there; Mississippi mulls i-poker

Posted on January 15, 2015 by David McKee

When it comes to Atlantic City it literally is a question of whether the glass is half-empty or half-full. The city’s casinos are 48% off their 2006 high of $5.2 billion. In 2014, the decline atlantic_city_boatwas slowed somewhat by $123 million in Internet gambling revenues. Even so, the industry is opting to look at the 2014 glass as half full, considering that revenues fell only 4.5% despite the closure of four casinos. Israel Posner, executive director of the Lloyd D. Levenson Institute of Gaming Hospitality & Tourism at Stockton College, called it “an absolutely remarkable result for a year that saw so much tumult in the gaming market.” Those casinos, such as the Golden Nugget and the Tropicana Atlantic City, that saw revenue gains attributed it to capex investments that kept their properties fresh for customers.

Looking back over 2014, the Nugget led all gainers, up Continue reading →

Posted in Atlantic City, Boyd Gaming, Colony Capital, Economy, Harrah's, Horseracing, International, Mississippi, Politics, Revel, Sports, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Atlantic City hangs in there; Mississippi mulls i-poker

Boffo Christmas for Borgata; ColSux loses again

Posted on January 14, 2015 by David McKee

There wasn’t a lot of Christmas cheer to be had in Atlantic City, where citywide gambling revenues fell 13%. However, for the surviving operators, the take was up 7% on a “same-Borgatastore” basis (i.e., discounting the casinos that have closed). Online gambling chipped in $11 million of the $180 million Boardwalk gross, in a 23% increase from November.

Citywide, slot revenue and handle fell 14%, while table game play was off 20%, resulting in a 11.5% revenue slide. (In other words, the casinos played relatively lucky.) Borgata revenue was up $13 million, for Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Columbia Sussex, Harrah's, history, Internet gambling, Kentucky, Mohegan Sun, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Boffo Christmas for Borgata; ColSux loses again

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 →

Posted in Harrah's, International, Regulation, Wall Street | Comments Off on Caesars’ shell game; Phua gambit backfires