The genius of Wynn; Wilmot charges ahead

Posted on December 19, 2014 by David McKee

Steve Wynn doesn’t wrap his hotels in bronze glass just because he likes the color. No, he has determined that the light passing through it makes his guests look more attractive “in macau_wynnrooms that have warmer light … One of the things that happens with glass is that the wavelength of the light affects the color palette on the inside of the room,” he told the Boston Globe, sounding anything like your standard-issue casino owner.

It’s not any old bronze glass, either, but a custom-made blend, to be found only at Wynn Resorts properties. Likewise, when all types of artificial turf were inspected and found lacking, “Wynn lawn” was invented to Continue reading →

Posted in Architecture, Entertainment, LVCVA, Massachusetts, New York, Ohio, Regulation, Steve Wynn, Tourism | Comments Off on The genius of Wynn; Wilmot charges ahead

Blast from the past

Posted on December 19, 2014 by David McKee

It’s time to revive the S&G tradition of a Friday film festival. Thanks to Bellagio Director of Productions Frank Coccaro for pointing the way to these nostalgia-inducing clips.

Continue reading →

Posted in Architecture, Downtown, history, MGM Mirage | Comments Off on Blast from the past

Nazarian’s luck, Caesars’ hoard

Posted on December 19, 2014 by David McKee

Sam Nazarian won’t be able to have an operational role in the casino at SLS Las Vegas but he’ll be able to participate in its revenue stream now that he is finally the holder of a Nevada Nazariangaming license — albeit a heavily conditional one. Howard Stutz‘s Twitter feed contains such a vivid tweet-by-tweet account that any further synopsis feels almost superfluous. The hearing had a Kabuki-theatre quality to it: testimonials to Nazarian, statements of contrition from the man himself, pro forma scolding from the Nevada Gaming Commission and then a unanimous vote in his favor. However, the Commission imposed a couple of additional terms on Nazarian’s highly provisional license, including making the mandatory drug testing more … intimate. A bit of unplanned drama was added when Nazarian hanger-on Derrick “Smokey” Armstrong showed up, attempting to testify, only to be arrested on outstanding warrants. (Why couldn’t he have said his peace, then been cuffed?)

Among yesterday’s revelations was that Nazarian had fathered a child out of wedlock, which might explain help explain why Continue reading →

Posted in Harrah's, Regulation, Sam Nazarian, Wall Street | Comments Off on Nazarian’s luck, Caesars’ hoard

Icahn saves Taj, kinda sorta

Posted on December 18, 2014 by David McKee

Trump Taj Mahal‘s fate seesaws by the day, if not the hour. According to the New York Post, Unite-Here Local 54 “got pretty much what it wanted” from Carl Icahn and “all work rules” will be reinstated. Icahn did persuade Local 54’s Robert McDevitt to put pension payments icahninto a Taj-only fund, the one significant concession made by the union, other than the abandonment of its bankruptcy-court appeal. Gov. Chris Christie (R) and his gaming-industry liaison, Jon Hanson, were credited with bringing all parties together. According to the union, Trump Entertainment Resorts CEO Robert Griffin put his signature on the pact … and then Icahn got cold feet.

The mogul promises this won’t be the Taj’s doom. He’s ponied up $20 million, writing, “Even though I believe that Atlantic City will be great again someday, many people would still argue that it would be a better financial decision for me to let the Taj close. But I cannot be so callous as to let 3,000 hardworking people lose their jobs.” McDevitt’s reaction was, “We and everybody else thought we could start Continue reading →

Posted in Atlantic City, Carl Icahn, Donald Trump, Economy, Politics, Regulation, Sam Nazarian, Tropicana Entertainment, Trump Entertainment Resorts | 3 Comments

Many called, few chosen for New York casinos

Posted on December 18, 2014 by David McKee

Count mega-budget offerings from Genting Group and Caesars Entertainment among the marquee-name dismissals in the New York Gaming Facility Location Board‘s final HRH Albanycut of casino applicants. Also going into the circular file were a second Genting project (Resorts World Hudson Valley), along with a Penn National Gaming/Cordish Gaming joint venture, and proposals from Full House Resorts, Churchill Downs, Mohegan Sun and a Hard Rock-branded project (right). It was a bad day from brand names, who generally got swept from the board. Considering Mohegan Sun CEO Mitchell Etess‘ family’s decades-long connection to the Catskills, that rejection must have been especially painful.

Orange County went 0-for-six, as Continue reading →

Posted in Churchill Downs, Cordish Co., Economy, Genting, Hard Rock International, Harrah's, Horseracing, International, Mohegan Sun, Neil Bluhm, New York, Penn National, Racinos, Taxes, Tribal | Comments Off on Many called, few chosen for New York casinos

Quote of the Day

Posted on December 18, 2014 by David McKee

“Meanwhile, Americans continue to play cards on unregulated, off-shore poker websites. Americans also continue to place wagers through online, unregulated, off-shore sports books. And there are no signs that the collapse of the republic is imminent.” — from a Las Vegas Review-Journal editorial, criticizing proposed congressional bans on Internet casinos and poker.

Posted in Internet gambling, Politics, Regulation | Comments Off on Quote of the Day

Vegas hits the jackpot & other Case Bets

Posted on December 17, 2014 by David McKee

We don’t know how much they’ve spent yet and how much of a blockbuster year this will be for Las Vegas but we know one thing for certain. We’ve finally broken the 40 million mark pinup-picin annual visitation, a Holy Grail long sought by the tourism industry. Heck, we may hit 41 million by the time midnight strikes on New Year’s Eve. We doubt that Visitor #40 Million was garlanded with roses or laurels. But, reports the Las Vegas Review-Journal, “To mark the milestone, tourism officials are giving away Las Vegas suite upgrades, dining and thrill experiences and beauty makeovers to random tourists with local entertainers Penn &Teller, Carrot Top and Claire Sinclair (above) making the presentations.” Carrot Top? We want people to come here, not scare them away.

* Cordish Co. got the deal it was looking for to build a Continue reading →

Posted in Cordish Co., Downtown, Entertainment, Harrah's, International, Sports, Tourism | 1 Comment

Taj at Icahn’s mercy; The wrath of Wynn

Posted on December 17, 2014 by David McKee

Trump Entertainment Resorts CEO Bob Griffin (below) has basically flung himself at the feet of Carl Icahn and begged the billionaire to keep funding Trump Taj Mahal “well into Griffin2015,” while Unite-Here‘s appeal of a bankruptcy court ruling is adjudicated, maybe longer. (If I were Icahn, I’d like to know what I’m getting in return.) Icahn’s ultimatum of ‘Give me tax breaks or I’ll kill this casino’ having fallen upon deaf ears in Trenton, there’s a serious danger the Taj will close this Saturday. This may not be cause for grief among other Boardwalk operators, all of whom stand to inherit what little business the Taj still does.

In yet another of his open letters, Griffin wrote, “The state, city and the union have all abandoned us. You are our last hope to find a solution that will keep the Taj open and save these 3,000 jobs.” Say what you like, the man has a flair for melodrama. However, he needs to work on Continue reading →

Posted in Atlantic City, Carl Icahn, Columbia Sussex, Entertainment, Harrah's, Macau, MGM Mirage, Mohegan Sun, Morgans Hotel Group, Steve Wynn, The Strip, Tilman Fertitta, Trump Entertainment Resorts | Comments Off on Taj at Icahn’s mercy; The wrath of Wynn

Sayonara, Sam; Showstopping Steve

Posted on December 17, 2014 by David McKee

When the going gets tough, Sam Nazarian gets the hell out of Dodge, although he’ll try to take some of the revenue stream with him. That’s the moral to be drawn from his withdrawal from any operational role at SLS Las Vegas, a property already Sam_Nazbesieged with rumbles of financial trouble. Nazarian had already been through a rough hearing before the Nevada Gaming Control Board and approval by the Nevada Gaming Commission is no slam dunk. The best Nazarian can hope for, it appears, is a provisional, probationary, one-year license. Hardly a ringing vote of confidence in this oft-proclaimed “visionary.”

“With the extremely talented executive team led by Scott Kreeger and our dedicated work force at the resort, I feel my professional efforts are Continue reading →

Posted in California, Entertainment, Geoff Freeman, Regulation, Sahara, Sam Nazarian, Steve Wynn, The Mob, Wall Street | Comments Off on Sayonara, Sam; Showstopping Steve

Atlantic City: Fertitta wins, Taj too close to call

Posted on December 16, 2014 by David McKee

Score one for the Golden Nugget in Atlantic City and its peppery owner, Tilman Fertitta. Its threat to “blow up” a property-tax reform deal was sufficient to bring about a fertitta_webcompromise acceptable to all sides. Under the original bill and its fixed-payment system, annual levies would have risen for casinos that arguably need the help the most. Now, that overage will be credited toward their Casino Reinvestment Development Authority payments. Also subtract the $2 million a year the Nugget would have paid the defunct Atlantic City Alliance and you’ve got a package Fertitta can accept.

As Nugget corporate counsel Steve Scheinthal put it, “We’re protected for five years; that’s a good thing. At least we have some stability and we know our taxes aren’t going to rise.”

Elsewhere, negotiations have reached an impasse between Continue reading →

Posted in Atlantic City, Carl Icahn, Economy, Oklahoma, Politics, Regulation, Taxes, Tilman Fertitta, Tribal, Trump Entertainment Resorts | Comments Off on Atlantic City: Fertitta wins, Taj too close to call

Quote of the Day

Posted on December 16, 2014 by David McKee

James-Packer-030709L_0“JP Morgan analyst Matt Ryan questioned Crown‘s, timing given it is ramping up its exposure to the wagering industry at a time when increased racing fees are eating bookmakers’ margins.” What? Would James Packer ever make a bad business decision? Heresy!

Posted in International, James Packer | Comments Off on Quote of the Day

Fixing Foxwoods, Perryville

Posted on December 16, 2014 by David McKee

Felix Rappaport continues to unveil a new strategy for Foxwoods Resort & Casino. Operations weren’t predecessor Scott Butera‘s strong suit, by the latter’s own profession.

RappaportSo, the restructuring having been done, enter Rappaport to commence the rebranding. Of oncoming competition from Boston, Rappaport said, “We’ll certainly lose some people altogether, and we’ll lose some people in terms of frequency. But if we do our jobs properly, I think we can become even more compelling.” And he’s got two or three years to entrench. Both Foxwoods and Mohegan Sun are cutting back on slot inventory dramatically, prompting one pundit to say, “They have, in a sense, already closed the equivalent of two casinos.”

While Mohegan Sun has been targeting nearly every new casino market that comes along and, closer to home, is ramping up its concert program, Foxwoods is being a bit choosier with its comeback strategy. Gambling is still, far and away, the cash cow, but Continue reading →

Posted in California, Economy, Foxwoods, Internet gambling, Marketing, Maryland, Massachusetts, Mohegan Sun, Penn National, Regulation, Tourism, Tribal | 2 Comments

Much ado about Harmon

Posted on December 16, 2014 by David McKee

After endless months of maneuvering and legal posturing, MGM Resorts International and  Tutor Perini arrived at a settlement on what was to have been the opening day of an Harmoniniepic trial. (That’s seven weeks of jury selection down the drain.) The case revolved around the defectively constructed Harmon hotel and came down to where the finger for the fiasco should be pointed. Although the settlement was nominally confidential, Deutsche Bank analyst Carlo Santarelli got the nitty-gritty via the SEC. CityCenter will receive $110 million from contractors, insurers, MGM and sundry third parties. In addition to paying CityCenter $20 million, MGM lays Continue reading →

Posted in CityCenter, Current, Entertainment, Hard Rock Hotel, Harrah's, International, MGM Mirage, Morgans Hotel Group, The Strip, Wall Street | Comments Off on Much ado about Harmon

Captain Loveman’s sinking ship

Posted on December 15, 2014 by David McKee

Loveman_x220As was widely expected, Caesars Entertainment defaulted on a $225 million interest payment, setting the stage for a prearranged bankruptcy. Company spokesman Stephen Cohen said airily, “It’s clear Caesars has sufficient liquidity to make the payment, we just chose not to at this time.” In related SEC filings, the company alluded to an unspecified “oral agreement in principle” with certain parties to its debt negotiations. The plan is apparently to put Caesars Entertainment Operating Co. into bankruptcy and then reinvent it as a REIT, since it controls over 75% of the company’s real estate (and a hernia-inducing 10:1 debt-to-cash flow ratio). A managerial company would be spun off the REIT, enabling CEO Gary Loveman to keep calling the shots.

Making Loveman’s job harder, creditors keep leaving the sinking Caesars ship. KKR & Co. and Franklin Resources are among those Continue reading →

Posted in Atlantic City, Genting, Harrah's, New York, Regulation, Wall Street | 1 Comment

Hope and change in Atlantic City

Posted on December 15, 2014 by David McKee

Not everybody is on board with Gov. Chris Christie‘s and state Senator Stephen Sweeney‘s plan for a new, fixed-rate payment system for Atlantic City casinos, in lieu of chris-christieproperty taxes. Despite a floodtide of new revenue in recent months, the Golden Nugget is still one of the smaller fish in the Atlantic City pond. As such, its general counsel, Steve Scheinthal, says the Nugget would be penalized by the new proposal. “This is Robin Hood taking from the poor to give to the rich. It takes our taxes from $4.7 million to $8.1 million. We’re not happy. We are going to go to court and blow this whole thing up,” he vowed.

General Manager Todd Pohlman added his voice: “”As ecstatic as we are to lead the industry in revenue growth, this proves Continue reading →

Posted in Atlantic City, Boyd Gaming, Glenn Straub, Harrah's, MGM Mirage, Mohegan Sun, Pennsylvania, Revel, Taxes, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | 1 Comment

Reid’s treachery and Adelson’s myopia

Posted on December 15, 2014 by David McKee

As predicted here, Sen. Harry Reid (D) stuck a knife in erstwhile allies Caesars Entertainment and MGM Resorts International, embracing Sheldon Adelson harryreid_t178instead. If Sheldon, who holds all the cards at this point, cedes to a carve-out for online poker, Reid will support some iteration of GOP-birthed Restore America’s Wire Act, banning online gambling. In a ludicrous statement, Reid rhetorically wrung his hands, saying, “I think it is hard to control for crime when you’ve got brick-and-mortar places, let alone something up in the sky someplace, and it is very bad for children.”

Reid sounds as absurd and technophobic as Adelson when he frets about the Internet being “something up in the sky someplace.” One might rejoin that if Internet gambling is outlawed, only outlaws will have Internet gambling. How much harder will it be to “control for crime” is RAWA passes and Continue reading →

Posted in Harrah's, International, Internet gambling, MGM Mirage, Pennsylvania, Sheldon Adelson | Comments Off on Reid’s treachery and Adelson’s myopia

Icahn: My way or the highway

Posted on December 15, 2014 by David McKee

If Unite-Here doesn’t cave in today, it’s curtains for Trump Taj Mahal. Or so says Carl Icahn, who wants the union to abandon its court fight to restore health and pension benefits breached by Trump Entertainment Resorts. If Icahn carries through with his ultimatum,carl_icahn the property would be mothballed on Dec. 20. TER CEO Robert Griffin got into the act, sending another of his melodramatic missives to Local 54 President Robert McDevitt.

“Please, Bob. This is our final opportunity to help people. Time is running out and money is running short. We simply cannot stay in limbo any longer. Every day, fewer and fewer people patronize the Taj, and we lose more and more of what little money we have left,” wailed Griffin, blaming McDevitt for his own ineptitude. “We just cannot wait any longer.”

At least Griffin is Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Dining, Entertainment, Harrah's, Louisiana, Pinnacle Entertainment, Texas, The Strip, Tilman Fertitta, Tribal, Trump Entertainment Resorts | Comments Off on Icahn: My way or the highway

Migratory patterns in Atlantic City

Posted on December 12, 2014 by David McKee

Considerably less casino revenue continues to flow into Atlantic City, down 13% last month, but it’s not all bad. Thanks to the whale-sized “market correction” of multiple casino closings, Golden Nugget ACthere continues to be more money for everybody who’s left. October’s shifts weren’t as dramatic as September’s save in the case of the Golden Nugget, which rocketed 63% upward, grossing $16 million. That shot it past Resorts Atlantic City ($12 million), which itself gained a respectable 16%, and also vaulted it past the bunglers at Trump Taj Mahal, whose $15 million betokened a 20% decline. The only other casino to lose market share was Bally’s, grossing $17 million and down 5%.

The resorts of the Caesars Entertainment portfolio performed impressively, with Continue reading →

Posted in Atlantic City, Boyd Gaming, Current, Economy, Harrah's, Mohegan Sun, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | 1 Comment

Et tu, Harry?

Posted on December 10, 2014 by David McKee

Internet gambling dodged a bullet when the federal government’s omnibus spending bill was sent to the floor without Restoring America’s Wire Act tacked on like a flea riding a harry-reiddog. “If we can’t get it into the omnibus, it won’t be in anything,” said outgoing Senate Majority Leader Harry Reid (D), whose word can presumably be taken as definitive. However, Harry is not Big Gaming’s friend on this issue: He’s been lately seen breaking bread with emissaries of Sheldon Adelson, Public Enemy Number One when online gaming is concerned.

Reid’s support for ‘Net betting has always been shallow and suspect, never extending beyond support for Web poker and wanly at that. Now he appears he’s ready to sell the whole kit ‘n caboodle down the river. To understand the significance of this, recall that almost all of Big Gaming — especially Continue reading →

Posted in Economy, Harrah's, Harry Reid, Internet gambling, Macau, MGM Mirage, Politics, Sheldon Adelson, Shuffle Master, Taxes | Comments Off on Et tu, Harry?

Stale thinking in Atlantic City; Big trouble in little Macao

Posted on December 10, 2014 by David McKee

New Jersey lawmakers, evidently oblivious to the recent spate of casino closings, have decided that what Atlantic City needs is more and smaller casinos, even though the pitfalls atlantic-cityof a casino-based economy have been amply demonstrated. They’re dusting off 2011’s dud “boutique casino” law, which found no takers — unless you count a scrapped Hard Rock International plan — and are removing some of the disincentives. No longer will small casinos have to be built from the ground up. Instead, existing buildings can be repurposed. Also, the 200-room hotel requirement will be sufficient … no longer will operators be obligated to eventually upsize to 500 rooms.

“This bill addresses a small-scale casino license, but it can help, so we should Continue reading →

Posted in Atlantic City, Economy, Glenn Straub, Hard Rock International, Macau, Regulation, Revel | 1 Comment