Impatience in Philly; Big sting at Caesars

Posted on October 29, 2014 by David McKee

NutterIt’s been eight months since the Pennsylvania Gaming Control Board held suitability hearings for awarding Philadelphia‘s second and final casino license. Those deliberations seem to have receded in the hazy yon of the past. It’s a situation that’s not sitting well with Mayor Michael Nutter, who wants action. “The record’s been closed for some time,” he told the International Association of Gaming Regulators. In response, board member Gregory C. Fajt could promise nothing better than “We’re still deliberating and hopefully, we’ll make a decision soon.” Fajt didn’t define “soon” and, given the PGCB’s idea of a timeline, we’ll be lucky to be alive when D-Day finally occurs. The board only meets twice more this year.

* Further west, having committed $465 million to buy the Meadows racino from Cannery Casino Resorts, REIT Gaming & Leisures Properties Inc. is having buyer’s remorse on a grand scale. It has (somewhat belatedly) decided that Continue reading →

Posted in Cannery Casino Resorts, Harrah's, Internet gambling, Law enforcement, Macau, Penn National, Pennsylvania, Racinos, Regulation | Comments Off on Impatience in Philly; Big sting at Caesars

The village idiot; Knuckle-dragging in Maryland

Posted on October 29, 2014 by David McKee

Every city has its cross to bear. In the case of Las Vegas, it’s former steroid user, baseball player and serial dumbass Jose Canseco. He obviously skipped firearm-safety class the day they told you to make sure your gun is empty before cleaning in it. Luckily for Canseco, no vital organs were injured, just a finger in his left hand. (Had he shot himself in the head, would the bullet have found anything to hit?)

* On a distantly related note, Caesars Entertainment continues to burn through cash. It offered Toby Keith $325,000 to perform one show at Planet Hollywood and make an in-person appearance at Toby Keith’s I Love This Bar & Grill. Still, that pales next to the $4.5 million put before Kanye West to perform nine shows at The Axis, at Planet Hollywood. If I were Celine Dion, I’d be a bit miffed, since the Kanye payday exceeds the $476,000/concert she pulls down at Caesars Palace. And who does more for Vegas tourism?

* Card-counting may be legal in Maryland but nobody told Continue reading →

Posted in Cordish Co., Cretins, Entertainment, Harrah's, International, Maryland, Planet Hollywood, Regulation, Technology, The Strip | Comments Off on The village idiot; Knuckle-dragging in Maryland

Wynn confounded; Sands gets tough

Posted on October 29, 2014 by David McKee

??????????????????????????????????????????????????????????????????During yesterday’s call with gaming analysts, Steve Wynn admitted to being “confused” by a Macao gaming market where revenues in October could fall 20%-23%. “The new regulations in smoking, the turmoil in Hong Kong lately, in the month of October, and of course, the policy of the central government in being very aggressive about what appeared to be misconduct and corruption in the government… has had an impact in Macao on October – we all noticed it … I don’t know if it is a squall or if we are in the rainy season, or how long it will last, but we are still very bullish on Macao.”

You know things are serious when Wynn Macau President Ian Caughlan says an impending smoking ban is the least of the casino’s concerns. Still, Wynn said, “Generally speaking, we were happy with the third quarter.”

Wynn’s ill fortune was compounded by Continue reading →

Posted in Architecture, Macau, Massachusetts, Regulation, Sheldon Adelson, Steve Wynn, Tourism, Wall Street | Comments Off on Wynn confounded; Sands gets tough

Story time with Grandpa Sheldon

Posted on October 28, 2014 by David McKee

Although he’s almost upstaged by his toupee, Sheldon Adelson delivers a fairly absorbing history of the world according to Sheldon.

Posted in Architecture, Internet gambling, Macau, Sheldon Adelson, Singapore | 1 Comment

Fighting on in New Jersey; One-armed banditry

Posted on October 28, 2014 by David McKee

Monmouth Park may have been stayed from offering NFL and World Series bets, among others, but state Sen. Raymond Lesniak (D) isn’t giving up fighting the good fight, describing it as “the last hurrah.” Describing an Atlantic City that’s devoid of life during major sports events, he envisions bringing players back to the Boardwalk to put some action on, say, March Madness. Sports wagering would be confined to tracks and casinos to “put fannies in the seat,” to help restore their financial health. OTB and betting parlors need not apply.

For now, Monmouth Park says it wants “the whole enchilada” of sports but Lesniak thinks that, as the court case moves forward, Continue reading →

Posted in Atlantic City, Entertainment, Foxwoods, Harry Reid, Illinois, Macau, Mohegan Sun, Racinos, Sports, Steve Wynn, Technology, The Strip | Comments Off on Fighting on in New Jersey; One-armed banditry

Election Special: What’s at stake; Fire sale at Trump

Posted on October 28, 2014 by David McKee

We know the big enchilada is Massachusetts, where repeal of the state’s casino law is on the ballot. It looks like it’s going to lose big-time, but anti-gambling sentiment runs file_3_3deep in parts of the state. We’ve already been over California‘s Proposition 48, which would nix a casino compact between the state and the the North Fork Rancheria of Mono Indians. In other states …

Colorado voters are mulling expansion of gambling to several would-be racinos. This appears likely to go down to defeat and gambling expansions in Colorado haven’t substantially enlarged the revenue pie. Rhode Island voters have two constitutional questions to ponder. One would Continue reading →

Posted in Atlantic City, California, Charity, Colorado, Election, Environment, Kansas, Marketing, Massachusetts, Racinos, South Carolina, South Dakota, Station Casinos, Steve Wynn, Technology, Tribal, Trump Entertainment Resorts | 1 Comment

Players take Vegas to the cleaners

Posted on October 28, 2014 by David McKee

DSCN1282Baccarat players stayed home or played smaller last month. The Strip’s most important revenue driver dropped 30% on 12.5% less play. So luck and players’ wallets were both working in the casinos’ disfavor. Despite a 2% increase in coin-in, slot revenues were down 4%. Non-baccarat table play was down 7.5% and house win fell 13%. Bottom line, Strip casinos got their clocks cleaned by players. By contrast, locals play was 7% more remunerative for casinos — albeit not in Downtown, where revenue fell 4%. North Las Vegas was flat but play on the Boulder Strip leapt 14%. Laughlin grew revenue 4% and the nebulous “balance of Clark County” rose 3%. On average, the Las Vegas Strip was down 12%.

* Penn National Gaming parent Gaming & Leisure Properties Inc. has hit its first snag. GLPI was poised to Continue reading →

Posted in Boulder Strip, Cannery Casino Resorts, Downtown, Economy, Laughlin, Macau, North Las Vegas, Penn National, Pennsylvania, Racinos, Technology, The Strip | Comments Off on Players take Vegas to the cleaners

Freeman strikes again

Posted on October 28, 2014 by David McKee

Here’s the latest chapter in American Gaming Association President Geoff Freeman‘s charm offensive: an election-season ad push targeting a few key markets. One can certainly understand why these spots are running in Boston, even Dover (where the horseracing industry wants subsidies) or in Indianapolis (where casinos are pushing to move ashore). But why Freeman is buying ad time in Las Vegas boggles the mind. There’s nothing relevant on the ballot and gambling is so fully accepted into the social fabric that he’s just preaching to the converted. It seems a waste of money that could be better spent in other jurisdictions.

Posted in Delaware, Geoff Freeman, Indiana, Marketing, Massachusetts, TV | Comments Off on Freeman strikes again

N.Y.: Accentuate the negative; Sheldon’s change of heart

Posted on October 27, 2014 by David McKee

“The economy is so depressed around here, anything is a plus. That’s how bad it is around here.” With that backhanded endorsement, the owner of Pepe’s Bar-B-Q in Binghamton, N.Y., gave his blessing to casinos in the area. In order to make their case Traditionsto the casino-siting board, Binghamton city fathers have had to accentuate the negative, pointing to their cities’ high poverty rate (31%) and leading status in depression, obesity and pessimism. The Binghamton area appears likely to get at least one casino — but where? Tioga Downs already has VLTs, so upgrading it to a full-service casino might seem redundant. Traditions at the Glen (above) at least has the resort atmosphere that New York State seems to want in its casinos. Those are just two of the projects jostling for advantage in the casino-selection process.

Virtually all of the casino proposals are near the ivy-clad groves of academe, a turn of events upon which some frown. “We do not need a casino within a short drive to distract and attract our … college students who, all over this country, are already burdened with monumental student debt,” harrumphed Continue reading →

Posted in CityCenter, Economy, Greenwood Racing, Hard Rock International, Illinois, MGM Mirage, Neil Bluhm, New York, Pennsylvania, Sheldon Adelson, Slot routes, The Strip | Comments Off on N.Y.: Accentuate the negative; Sheldon’s change of heart

Warfare in California; Turnover at SLS

Posted on October 27, 2014 by David McKee

Fear of spreading off-reservation gambling are fueling opposition to Proposition 48, which would ratify a casino compact in the greater Fresno area. The North Fork FeinsteinRancheria Band of Mono Indians, supported by Station Casinos, would be permitted to open a $350 million casino in Madera, 38 miles from its tribal land near Yosemite and close to Highway 99. In an unusual provision, the Wiyot Tribe — which lives near a national wildlife refuge — would forego the prerogative of building a casino, in return for a cut of the Mono Indians’ gaming revenue.

Speaking of which, the Mono, Station and California Democrats have been heavily outspent, with $400,000 going to the “yes” campaign, compared to $14 million spent in opposition. The “no” forces can count Sen. Dianne Feinstein (D) and two county boards of supervisors among their allies, along with Continue reading →

Posted in California, Charity, Detroit, Election, James Packer, Politics, Regulation, Sam Nazarian, Station Casinos, Tribal | Comments Off on Warfare in California; Turnover at SLS

No sports betting for New Jersey; Christie’s quest

Posted on October 27, 2014 by David McKee

Much as might be expected, a federal judge handed down an injunction preventing Monmouth Park from taking sports wagers last weekend. Track advisor Dennis MonmouthDrazin tried to shrug off the setback, calling it “only a step in the road.” State Sen. Raymond Lesniak agreed, characterizing the ruling as a “temporary setback.” Ignoring extant sports betting in Nevada and Delaware, Judge Michael Shipp said “irreparable harm” would befall the major sporting leagues and the NCAA were they to be associated with gambling. “More legal gambling leads to more total gambling, which in turns leads to an increased incentive to fix plaintiffs’ matches,” Shipp wrote primly.

He also wrote that the plaintiffs “established a reasonable likelihood of success” that the U.S. Professional and Amateur Sports Protection Act would be Continue reading →

Posted in Atlantic City, Delaware, Economy, Harrah's, Regulation, Sports, Taxes | Comments Off on No sports betting for New Jersey; Christie’s quest

Quote of the Day

Posted on October 27, 2014 by David McKee

Icahn pensive“Frankly, several of my advisers have told me that if the city and the state did not come up with the money, they’d be doing me a large favor. Even if we get the concessions from the city and the state, we’re going to lose a lot of money. Everybody thinks I’m trying very hard to do this. I’m not.” — Carl Icahn, on his attempted takeover of Trump Taj Mahal.

Posted in Atlantic City, Carl Icahn, Trump Entertainment Resorts | 1 Comment

Wild, wild East; Fertitta remembered

Posted on October 24, 2014 by David McKee

Imagine a Las Vegas in which to play you were required to lay out at least $65 … and where the average minimum bet was $270, maybe even $320. You’d have Macao,
HotelLisboawhose players dwarf Vegas’ ($20 average minimum bet) and even Singapore ($50) in their audacity. The most tight-fisted punters, by the way, are those in the Philippines, where the average minimum wager is just $10, although glamorous new casinos may have a pursestring-loosening effect.

Of course, such boldness has its downside. “It might be fun to lose $1,000 in two to three hours, but it is definitely not enjoyable to lose your entire gaming budget in one hand of Baccarat,” says Continue reading →

Posted in Harrah's, history, International, Internet gambling, Lake Tahoe, Macau, Michael Gaughan, Singapore, Station Casinos, The Strip, Warner Gaming | 1 Comment

All’s well at Penn; Casinos wary of Uncle Sam

Posted on October 24, 2014 by David McKee

Helped by better-than-expected performances at M Resort and Hollywood Casino at Charles Town Races, beating its own estimates, Penn National Gaming Penn logoexceeded Wall Street’s consensus for 3Q14. Cannibalization of Charles Town has not been as great as was feared and mid-to-lower tier players ard showing up in greater numbers. Promotions have been “rational” save in Missouri, where Penn is locked in mortal combat with Pinnacle Entertainment‘s two Ameristar-branded casinos.

Deutsche Bank analyst Carlo Santarelli noted that “regional trends remain uninspiring” but, in light of that, Penn should be able to exceed its own projections for the fourth quarter. Another positive augury is polling in Massachusetts, which shows casino repeal failing by a 14-point margin. That is not only encouraging in the short term, it means Penn will have a significant Continue reading →

Posted in Ameristar, Atlantic City, Boyd Gaming, Delaware, Election, Harrah's, M Resort, Massachusetts, MGM Mirage, Missouri, Mohegan Sun, Penn National, Pennsylvania, Pinnacle Entertainment, Racinos, Regulation, Sports, Tilman Fertitta, West Virginia | Comments Off on All’s well at Penn; Casinos wary of Uncle Sam

Reading Loveman’s tea leaves

Posted on October 23, 2014 by David McKee

Loveman fluffyGary Loveman has made a lot of mistakes as Caesars Entertainment CEO but building a convention center in Atlantic City wasn’t one of them. In fact, it’s been one of his better ideas. While he was in town to put his John Hancock on the final beam of the $126 million Waterfront Conference Center, he shared several cryptic remarks with the media. While he said he wasn’t in any talks with Unite-Here, Loveman added “The challenge in Atlantic City is not simply revenue but cost.”

This could easily presage a contractual squeeze like the one Trump Entertainment Resorts put on its labor force (which may have bought them only three more weeks of employment), particularly if Continue reading →

Posted in Architecture, Atlantic City, Economy, Entertainment, Harrah's, Massachusetts, Regulation, Sheldon Adelson, Sports, Steve Wynn, The Strip, Trump Entertainment Resorts | 2 Comments

Memo from Macao

Posted on October 23, 2014 by David McKee

Posted in Economy, Entertainment, Macau, Marketing, Sheldon Adelson | Comments Off on Memo from Macao

Quote of the Day

Posted on October 22, 2014 by David McKee

sls-pic“I think this area south of Charleston [Boulevard] and north of Sahara [Avenue] is up and coming though, and some of that attention Fremont East is getting will turn here. If there were more residential development, something in the middle range, then we’d see real sustainable growth in the neighborhood with more retail and restaurants.” — RCG Economics‘ John Restrepo on the early fiscal effects of SLS Las Vegas.

Posted in Downtown, Economy, Sam Nazarian, The Strip | Comments Off on Quote of the Day

Working-class hero; Caesars courts Philippines

Posted on October 22, 2014 by David McKee

SweeneyHaving thrown its workforce to the wolves as part of its bankruptcy plan — one that may not ultimately save any jobs — Trump Entertainment Resorts has pissed off the wrong guy: state Senate President Stephen Sweeney (D). Chief creditor Carl Icahn has pledged to invest $100 million in Trump Taj Mahal if New Jersey commits hundreds of millions more to a taxpayer bailout of TER and its dubiously competent management team. In a series of tweets, Sweeney laid out his opposition to the rescue plan …

I won’t allow Icahn to use any state grants, tax breaks, subsidies to help underwrite attempt to take away rights and benefits of workers … If the court’s ruling stands, then middle-class America has lost. We should be building economy from the bottom up by supporting workers … It’s unfair and un-American to allow billionaires like Icahn to exploit the financial difficulties of the casino industry to prey on workers. Continue reading →

Posted in Boyd Gaming, Carl Icahn, Economy, Genting, International, Kazuo Okada, Louisiana, Melco Crown Entertainment, Pinnacle Entertainment, Politics, Racinos, Revel, Trump Entertainment Resorts | Comments Off on Working-class hero; Caesars courts Philippines

Fire sale at Full House; Japan: Patience advised

Posted on October 22, 2014 by David McKee

In the casino world it’s pretty much unheard-of for a company to hang a “for sale” sign on itself without a suitor in view. Patti Hart did it successfully at International Game TechnFull Houseology, earlier this year. Now Full House Resorts is trying to lure a buyer. Since Full House stock has 55% since the start of the year, this might be a target of opportunity for companies in growth mode, like Gaming & Leisure Properties Inc.

Buyers would have to swallow one bitter pill, namely that flagship casino Rising Star Riverboat is getting pummeled by rival casinos and racinos closer to Cincinnati. Full House’s other occupants are Continue reading →

Posted in Alabama, Dan Lee, G2E, Genting, Harrah's, IGT, Indiana, Japan, Neil Bluhm, Regulation, Sheldon Adelson, Steve Wynn, Tribal | Comments Off on Fire sale at Full House; Japan: Patience advised

Caesars’ shell game; Setback in Japan

Posted on October 21, 2014 by David McKee

“Extend and pretend.” Those are the words of gaming analyst Alan Woinski, describing the debt-management practices of Caesars Entertainment and CEO Gary Loveman: “they extended out the maturities and just put new debt on top of old debt, and the pretend part is pretending that someday they’d be able to pay it off.” The company has lost $853 million so far this year, yet continues to pursue an aggressive expansive strategy that would have you thinking its worst days were behind it. (Though they already caught up with it in Massachusetts and might do so in New York State.)

One of the ways this has been done is to segregate the new projects and better-performing assets into subsidiaries like Caesars Growth Partners (aka Little Loveman speaksCaesars), although some doubt that if debt takes down Big Caesars — Caesars Entertainment Operating Co. — Little Caesars will be able to escape the tsunami. Loveman is pretty blunt about it, too. “We two years ago created a subsidiary known as Caesars Growth Partners, created with the purpose of funding our growth for new projects like the Baltimore project that opened just a few weeks ago, and this one,” he told Continue reading →

Posted in Atlantic City, Harrah's, Internet gambling, Japan, Louisiana, Maryland, Massachusetts, New York, Politics, Problem gambling, Technology, The Strip, Wall Street | 1 Comment