Icahn’s olive branch

Posted on December 1, 2014 by David McKee

As the clock ticks down toward a Dec. 4 bankruptcy hearing at which Trump Entertainment Resorts could be dissolved, Carl Icahn is nothing if not optimistic. Taj MahalHe continues to believe he can recoup the $286 million in debt he holds on Trump Taj Mahal, plus the $100 million he’s promised toward capital improvements. He’s also a realist, having now dropped preposterous demands for state and city tax subsidies. That dog was never going to hunt. However, he’s adamant that unionized workers accept the status of second-class citizens, bereft of pensions and having to shop for health care on the open market. That’s a precedent Unite-Here can’t afford to allow (next stop: Caesars Entertainment).

So, whilst Icahn and union prexy Robert McDevitt duke it out Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Environment, Genting, New York, Regulation, Taxes, Trump Entertainment Resorts | 2 Comments

Adelson keeps coming; Eternal frustration in Florida

Posted on November 26, 2014 by David McKee

Let’s face it: Sheldon Adelson is old, distrusts computers and clearly fears Internet gambling’s encroachment on his mammoth brick-and-mortar casinos. Which means Sheldon pashathat even if he fails to get the Restore America’s Wire Act bill passed in Congress’ lame-duck session, he won’t be satisfied until he’s come between you and your legal right (where applicable) to gamble online. As chief lobbyist Andy Abboud says, “He’s a man of great conviction. He doesn’t waver.”

Emissaries from Adelson have been meeting with Speaker of the House John Boehner (R) and outgoing Senate Minority Leader Harry Reid (D). It’s well known that Reid would trade away games of chance in order to preserve online poker. But it’s doubtful that Adelson would even consider such a compromise. It’s his way Continue reading →

Posted in Election, Florida, Harry Reid, Internet gambling, Politics, Sheldon Adelson, Taxes, Tribal | Comments Off on Adelson keeps coming; Eternal frustration in Florida

Slots drive Vegas; Big change at Foxwoods

Posted on November 26, 2014 by David McKee

Las Vegas Strip casino revenues fell 6% last month, largely thanks to soft table play. Deutsche Bank analyst Carlo Santarelli characterized slot play as “encouraging
Liberace slotand driven primarily by volume,” as the Strip recorded its sixth consecutive month of increased coin-in, up 7%. Since Santarelli had been expecting a flattish 4Q14 he termed the results not “all that meaningful relative to our Company forecasts.” Baccarat revenue plunged 35.5% on 15% lower play. This is a change from 2013, when baccarat carried the Strip. Despite lighter play, non-baccarat table games did 4% than October previous. Over at J.P. Morgan, analyst Joseph Greff was comparably sanguine, writing, “we maintain our positive outlook for the LV Strip and believe the overall recovery will continue for the balance of the year and into 2015.”

Reno posted an 8% increase in a month in which non-Strip revenues tended to seesaw violently. Downtown Las Vegas was stable, with a 1% bump and the unclassified parts of Clark County had a 2% boost. Lake Tahoe shot up 53%. The Boulder Strip plunged 24% and North Las Vegas fell off 15%. Laughlin got off easy, with a 5% decline. Whatever else the locals customer is, he is cautious with his money these days.

* “We think we have too much gaming.” When was the last time Continue reading →

Posted in Boulder Strip, Delaware, Downtown, Entertainment, Foxwoods, Lake Tahoe, Laughlin, Mohegan Sun, North Las Vegas, Racinos, Slot routes, Taxes, The Strip, Wall Street | Comments Off on Slots drive Vegas; Big change at Foxwoods

Quote of the Day

Posted on November 25, 2014 by David McKee

harrahsnightsign“I maintained this status for about 10 days, working about 14 hours a day. Several times during this effort, I would email my supervisor back in Kansas with the message, ‘I have fallen in Harrah’s financials and can’t get up.'” — former Kansas regulatory consultant Richard Schuetz, on the Harrah’s Entertainment leveraged buyout.

Posted in Harrah's, Kansas, Wall Street | Comments Off on Quote of the Day

Good news from the Boardwalk; Leven leaves

Posted on November 25, 2014 by David McKee

Rid of the Atlantic Club Hotel, Showboat, Trump Plaza and Revel, cash flow at Atlantic City casinos shot upward 7%, or $147.5 million. Once that unhappy quartet is Resorts ACremoved from the year-over-year comparison, the percentage increase falls to 3% but the dollar growth goes to $152 million in gross operating profit. Of course that’s before interest, taxes, depreciation and all that good stuff — and the Caesars Entertainment properties are carrying particularly heavy interest. Mohegan Sun, meanwhile, is working wonders at Resorts Atlantic City, increasing cash flow 600%, to $5 million. Tilman Fertitta‘s people also did well at the Golden Nugget, generating 156% EBITDA growth. By contrast, the maladroit Robert Griffin administration at Trump Taj Mahal saw operating profit fall 39%. The Caesars trio of casinos also had declines, but none that severe.

Would-be Taj owner Carl Icahn doesn’t want Griffin around — can you blame him? — if and when he takes over. So he’s looking to former magician Herbert L. Becker, Continue reading →

Posted in Carl Icahn, Cirque du Soleil, Colony Capital, Harrah's, Macau, Massachusetts, MGM Mirage, Mohegan Sun, Regulation, Revel, Sheldon Adelson, Steve Wynn, The Strip, Tilman Fertitta, Trump Entertainment Resorts, Wall Street | Comments Off on Good news from the Boardwalk; Leven leaves

SLS struggles to find its niche; Cordish knows its one

Posted on November 25, 2014 by David McKee

Granted, Sam Nazarian had to do something with the Sahara, but so far when SLS Las Vegas makes the headlines it’s with another piece of bad news. F&B offerings have sls_rendering_cleo_restaurantbeen cut back and the nightclub program is struggling. Rationalizes former Revel prexy Scott Kreeger, who now holds the same position at SLS, “we opened the property and the nightlife program heading into a slow season.” (Why?) According to Kreeger, SLS is already regrouping to “come into 2015 with some really strong offerings.”

SLS, which opened targeted to SoCal trust-fund babies and with little understanding of locals casinos is now rather naively counting on Continue reading →

Posted in Boyd Gaming, Cordish Co., Dining, Genting, George Maloof, Harrah's, Maryland, New York, Regulation, Revel, Sahara, Sam Nazarian, The Strip | Comments Off on SLS struggles to find its niche; Cordish knows its one

Paid to not play?; More trouble for Trump, Caesars

Posted on November 24, 2014 by David McKee

Although the American Gaming Association came down against Massachusetts‘ proposed “managed play” system of regulating losses, casino companies are saying, Chips and cards“Not so fast.” Wynn Resorts, MGM Resorts International and Penn National Gaming are all in favor of the idea of allowing players to cap their losses in advance. However, they are opposed to rewarding it with future free-play incentives, fearing that players will set exaggeratedly high limits they have no intention of hitting, qualifying them for free play. Said Wynn’s Robert DeSalvio, “If someone has a problem the worst thing is to give him incentives to come back.” He wasn’t opposed, however, to programming the limits into loyalty cards. Penn and MGM representatives had their own reservations about the program’s feasibility.

The industry representatives seemed more concerned, overall, about players gaming the system to get free goodies than whether or not Continue reading →

Posted in Arizona, Atlantic City, Carl Icahn, Harrah's, Massachusetts, MGM Mirage, Penn National, Problem gambling, Regulation, Sports, Steve Wynn, Tribal, Trump Entertainment Resorts, Wall Street | 1 Comment

Failure in Japan … on to South Korea

Posted on November 24, 2014 by David McKee

Shinzo AbeCasino legalization fell on its sword in Japan when Prime Minister Shinzo Abe abruptly dissolved the Diet, in order to call for elections. According to Reuters, “That means lawmakers cannot pass regulatory legislation next year, making it highly unlikely any casinos  will be ready in time to profit from tourists arriving for Japan’s 2020 summer Olympics.” And since budgetary and defense issues will take priority, passage of any casino legislation in 2015 is looking unlikely, too. Or, as one lobbyist said, “It’s challenging but not impossible.”

What’s a casino company to do? Turn one’s gaze to South Korea, of course. It may be a $2.4 billion market, a fraction of Las Vegas‘ annual tally, but its Chinese tourism is growing, with mainlanders up 53%, seeking everything from retail to plastic surgery. It’s also Continue reading →

Posted in Harrah's, Japan, Macau, Marketing, MGM Mirage, Mohegan Sun, Politics, Sheldon Adelson, South Korea, Transportation | Comments Off on Failure in Japan … on to South Korea

New Jersey cuffed; Adelson stirs controversy

Posted on November 24, 2014 by David McKee

In a development of no great surprise, federal District Court Judge Michael Shipp enjoined Monmouth Park (and anybody else in New Jersey) from offering sports betting. And he made the injunction permanent, decreeing that the Garden State’s gavelunregulated sports wagering contravened the Professional & Amateur Sports Protection Act of 1992. “We are going to continuing pursuing every legal option available. The economic impact that sports wagering can have on New Jersey is far too important to simply shrug our shoulders and move on,” said state Senate President Steve Sweeney, in a prepared statement.

Since the Third Circuit Court of Appeals has ruled that individual states can decide “the contours of the prohibition” on sports betting, Continue reading →

Posted in Foxwoods, Harry Reid, Internet gambling, Massachusetts, Politics, Regulation, Sheldon Adelson, Sports, Tribal | Comments Off on New Jersey cuffed; Adelson stirs controversy

Are the feds scrutinizing Wynn … and why?

Posted on November 24, 2014 by David McKee

Uncle Sam appears to be making a systematic sweep of the Strip, probing all the major players. The latest target, according to the Wall Street Journal, is Wynn wynn-picResorts, which denies knowledge of any federal probe. However, according to the WSJ, a trident of the U.S. Attorney’s office, the DEA and the IRS is aimed squarely at Wynn, investigating potential money laundering. This comes while Caesars Entertainment is under the microscope and Las Vegas Sands has recently ponied up $47 million for money-handling infractions.

“We are not aware of any criminal investigation of the company whatsoever and we have serious doubts that any such investigation is taking place,” said Wynn Resorts attorney Michael Weaver, who said that there had been no contact from the feds … and if there was, it wouldn’t necessarily be damning:  Continue reading →

Posted in Harrah's, Iowa, Macau, Massachusetts, Regulation, Sheldon Adelson, Station Casinos, The Strip, Wall Street | Comments Off on Are the feds scrutinizing Wynn … and why?

Case Bets

Posted on November 20, 2014 by David McKee

A California tribe is getting into Internet gambling in a somewhat roundabout way. The Pala Indians are beta-testing PalaCasino.com, which will be run off the online atlantic-city-borgata-hotelplatform of … Borgata. (Casinos in Atlantic City can host as many as five ‘Net casinos per property.) Pala’s 90-game package will go live on Monday, pending approval by the Division of Gaming Enforcement. Of course, it can only take action from Garden State punters. Pala Interactive Chief Marketing Officer Jeremy Clemons told media, “Our launch in New Jersey is a huge step for the company, and we want to make sure we’re rolling out one of the best, most user-friendly casino experience on the market.”

* Faced with the imminent approval of four new casinos, Turning Stone Casino, in Oneida, New York, is differentiating itself with Continue reading →

Posted in Atlantic City, Boyd Gaming, California, Cosmopolitan, Economy, Entertainment, Harrah's, Internet gambling, New York, Ohio, Penn National, Regulation, The Strip, Tourism, Tribal | Comments Off on Case Bets

Big Ease; The Mirage, 25 years later

Posted on November 20, 2014 by David McKee

Even with 19 non-tribal casinos and racinos to support, the Louisiana market continues to rebound. It was up 4% last month, with even 2% growth in the crowded Louisiana_FlagShreveport/Bossier City marketplace. El Dorado was the second-highest grosser and the percentage leader (+7%), while Diamond Jacks (-6%) brought up the rear. Horseshoe Bossier City was the top grosser, at $15.5 million.

In the Baton Rouge area, Pinnacle Entertainment‘s L’Auberge du Lac Baton Rouge continues to be responsible for over 50% of all the dollars grossed therein. It raked in $11 million million, while Tropicana Entertainment‘s Belle of Baton Rouge and Continue reading →

Posted in Boyd Gaming, Churchill Downs, CityCenter, Downtown, GLPI, Hard Rock Hotel, Harrah's, history, Isle of Capri, Louisiana, MGM Mirage, Penn National, Pennsylvania, Pinnacle Entertainment, Regulation, Sheldon Adelson, Steve Wynn, Tropicana Entertainment | 1 Comment

Revel: Brookfield bails, Straub back in; A few good men

Posted on November 19, 2014 by David McKee

Like its predecessors at Revel, management at Brookfield US Holdings found itself with an albatross around its neck: the cost-intensive Inlet District Energy Center. The Revel_0947standalone power plant cost the resort $1.25 million a month. Brookfield hoped to reduce those costs but couldn’t. The interest rate, 12% on bonds and as much as 18% on equity, was too onerous. The bondholders want to be paid what they were promised when the plant was built and Brookfield evidently doesn’t have the scratch. Finding Revel too rich for its blood, it’s scrapping the purchase.

Spurned Revel bidder Glenn Straub, who’s been challenging the outcome of the bankruptcy auction. was quick to take credit. “Obviously Continue reading →

Posted in Atlantic City, Foxwoods, Genting, Glenn Straub, Harrah's, International, Internet gambling, Massachusetts, MGM Mirage, New York, Pennsylvania, Revel, Sports, Taxes, Tribal, Wall Street | Comments Off on Revel: Brookfield bails, Straub back in; A few good men

Forcible restraint in Massachusetts; The big winners in Philadelphia

Posted on November 19, 2014 by David McKee

As you’ve read here earlier, the Massachusetts Gaming Commission is eyeing the concept of “play management.” It’s a somewhat paternalistic concept wherein players Crosbypre-set a loss limit and are rewarded with free-play credits, points or other incentives for staying within that limit. “It’s to let people go to casinos and enjoy themselves instead of walking out with that horrific feeling of regret because they spent more than they wanted to,” rationalized MGC consultant Judith Glynn. MGC Chairman Stephen Crosby adds that it targets “maybe 10 percent to 20 percent” of players. The American Gaming Association is pushing back, bombarding the MGC with a four-page letter which, among other arguments, says that it’s “disproportionate to Continue reading →

Posted in Cordish Co., Foxwoods, Geoff Freeman, Greenwood Racing, Harrah's, Isle of Capri, Macau, Maryland, Massachusetts, Mohegan Sun, Pennsylvania, Regulation, Technology, Tomato King Procacci | 1 Comment

Everybody’s doing it

Posted on November 19, 2014 by David McKee

Building conference centers in Atlantic City, it seems. Add Resorts Atlantic City to the brief list of casino trying to diversify their appeal by going for the meeting business. ResortsIt won’t be as grand as the one as Harrah’s Resort but, at a $9 million budget, will be wallet-friendly for Mohegan Tribal Gaming Authority, which runs Resorts. “This project speaks to a specific niche,” said consultant Cory Morowitz, referring to small business meetings. Resorts hopes to have the project finished by July, when the appeal of Atlantic City is at its peak. Speaking for owner Morris Bailey, Morowitz said, “The project completes the repositioning of Resorts.”

The project will be funded either entirely or at least in part in redevelopment credits from the  Continue reading →

Posted in Atlantic City, CityCenter, Harrah's, Internet gambling, Mohegan Sun, Revel, Sports, The Strip, Tourism | Comments Off on Everybody’s doing it

Flat at the Strat and other Case Bets

Posted on November 18, 2014 by David McKee

StratWhat a difference a year makes for American Casino & Entertainment Properties. Twelve months ago it was losing $9 million. In 3Q14, it posted a $600K profit. The reversal was achieved, in part, by squeezing customers with higher room rates and resort fees. Interestingly, a department not credited with driving profitability was the casino floor. Indeed, casino revenue was almost flat at the Stratosphere while room revs ascended 8%. The popular Sky Jump also helped drive improved performance. And never discount the power of bingo, which was credited for a 2% growth in casino revenue at ACEP’s two Arizona Charlie’s properties.

* Thanks, no doubt, to the absence of a gaming entitlement, Station Casinos took a bath on 101 acres of Reno real estate. The company still has two other, gaming-entitled sites in Reno, so it’s not done with the market by any means. Continue reading →

Posted in Architecture, Boulder Strip, Columbia Sussex, Kentucky, Massachusetts, MGM Mirage, North Las Vegas, Reno, Station Casinos, Steve Wynn, The Strip | Comments Off on Flat at the Strat and other Case Bets

The sport of kings in cyberspace

Posted on November 18, 2014 by David McKee

Illinois‘ addiction to gaming revenues resembles that of a heroin junkie in the throes of severe withdrawal. The latest proposed “fix” would create de facto racinos at all of the state’s horse tracks. State Rep. Dwight Kay (R) is pushing “historical racing,” which has already been adopted in Arkansas and Kentucky. Playing slot machine-like terminals, historical-racing players wager on previously run races, with the identity of the horses concealed.

Kay’s concern lies close to home, constituent Fairmount Park having been left out of the most recent plan for gambling expansion. “This is just one stopgap to maybe help Historical racesFairmount and maybe some other tracks. The bill would buy some time for Fairmount” until gambling could be expanded on a wider scale, Kay says. The Illinois Harness Horsemens Association remains fixed upon slot machines at the tracks as its endgame and, in any event, speedy legislative action appears unlikely. The IHHA’s Steve Brubaker “said if a gambling package that includes slots at the race tracks isn’t Continue reading →

Posted in Horseracing, Illinois, Kentucky, Technology, Wall Street | Comments Off on The sport of kings in cyberspace

Philadelphia: No surprise here

Posted on November 18, 2014 by David McKee

As expected, the Pennsylvania Gaming Control Board gave the last Philadelphia casino license to a partnership of Cordish Gaming and Greenwood Gaming. The flashy Live! Hotel & Casino will nestle in the stadium area in the south part of
town. “We’re right off I-95 and I-76, so you can expand your reach and pull from two neighboring states and the region,” said David Cordish. He added, of his plans, “I think the secret to casinos is what you do besides the gaming, because everybody games the same way. The best thing you can do with gaming is surround it with other amenities.”

The three losing bidders have a month to appeal the decision to the state Supreme Court. However, the PGCB’s choices Continue reading →

Posted in Atlantic City, Cordish Co., Economy, Foxwoods, Greenwood Racing, Harrah's, Mohegan Sun, Neil Bluhm, New York, Pennsylvania | Comments Off on Philadelphia: No surprise here

The Philadelphia experiment; Wynn mellows

Posted on November 17, 2014 by David McKee

We’re on the eve of the day the Pennsylvania Gaming Control Board is expected to issue the fifth license for the Philadelphia area. It has to be awarded by a convoluted process called a “qualified majority,” whereby all four legislative appointees and one of the three gubernatorial appointees agree on a bidder.

The PGCB could still surprise us and award no license, as lies within their remit, but we’ve not heard anything indicating they’re leaning that way. Never mind that there’s Cordish Phillyalready cannibalization occurring in the market, “Philadelphia clearly has the population and visitor base to support the additional Philadelphia license,” proclaimed Joseph Weinberg, managing partner of frontrunning Cordish Gaming. Whatever Cordish has that’s so compelling, it’s not its design … and one can’t help noting that Steve Wynn‘s abortive Philly casino was a carbon copy of what he proposed (but is redrawing) for Everett, Massachusetts.

Reports The Associated Press, “A report done this year for Continue reading →

Posted in Architecture, Cordish Co., Economy, Genting, Harrah's, James Packer, Massachusetts, Neil Bluhm, Pennsylvania, Steve Wynn, The Strip | Comments Off on The Philadelphia experiment; Wynn mellows

Paul pounds Sands; Caesars’ Eight

Posted on November 17, 2014 by David McKee

If he used a computer — which he doesn’t — Sheldon Adelson would have to delete Ron Paul from his list of Facebook “friends.” The libertarian gadfly is the latest U.S.
Adelson2_2_12citizen to take umbrage a Adelson’s do-gooder (and dubiously motivated) campaign against Internet gambling. Paul also took umbrage at his former colleagues in the House of Representatives, accusing them of cronyism to reward a rich patron by giving him an Internet-gambling ban in return for his largesse. Paul minced no words: “Mr. Adelson, who is perhaps best known for using his enormous wealth to advance a pro-war foreign policy, is now using his political influence to turn his online competitors into criminals.”

“Nowhere in the Constitution is the federal government given any authority to regulate activities such as online gambling. Arguing that ‘states rights’ justifies creating new Continue reading →

Posted in Harrah's, Internet gambling, Macau, Politics, Regulation, Sheldon Adelson | Comments Off on Paul pounds Sands; Caesars’ Eight