Foxwoods: Woody exits; Eldorado’s big gains

Posted on September 18, 2014 by David McKee

Foxwoods Resorts Casino‘s financial problems could hardly be called “solved,” but CEO Scott “Woody” Butera plans to leave next month anyway for a non-gaming foxwoodsjob. He will continue to advise Foxwoods from his new perch, though, even dickering with the casino’s creditors. Butera hasn’t disclosed what his “rare opportunity outside of the gaming industry” is. Perhaps, having converted $2.2 billion in old debt into $1.7 billion in new debt, Butera feels his work is done. Said Woody, “Foxwoods now has a strong executive team and a solid plan that I believe will result in great success in the near future.”

Among the unfinished business Butera leaves is the casino’s attempt to penetrate southeastern Massachusetts. It’s been mulling sites in Fall River and is expected to make a strong push for Continue reading →

Posted in Boyd Gaming, Churchill Downs, Foxwoods, Harrah's, Isle of Capri, Louisiana, Massachusetts, MTR Gaming, Ohio, Penn National, Pinnacle Entertainment, Racinos, Reno, Tropicana Entertainment, West Virginia | 1 Comment

Oh no, not him again!

Posted on September 17, 2014 by David McKee

Trump in LVDonald Trump is posturing as the potential rescuer of Trump Plaza and Trump Taj Mahal, provided he can get them dirt cheap. (Principal creditor Carl Icahn will have a thing or two to say about that.) In true Trump fashion, he is blaming all their ills on “funds” and let’s forget all the years when he talked big but never did anything — like building something to replace Trump World’s Fair.  Trump is described by a close associate as looking at the matter “cautiously,” although he seems to have achieved his prime objective: being seen in the media as Atlantic City‘s savior.

All this is very odd coming from a man who keeps loudly congratulating himself on having gotten out at the right time. Also, the poor performance of his Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Colony Capital, Economy, Glenn Straub, Harrah's, Revel, Trump Entertainment Resorts | 1 Comment

As Iowa goes, so goes America

Posted on September 17, 2014 by David McKee

Chips and cardsIf you need any evidence of the increasing American acceptance of casino gambling as an everyday activity, just look to Iowa. Two years ago, 69% of Iowans had gambled in the previous year. Now it’s up to 78%. Mind you, it’s not all casino-driven: Casino revenues gained 4% while the lottery leapt 20%. According to the University of Northern Iowa’s Center for Social & Behavioral Research, “factors for the increase in gambling activity could be the improving national economy or an increased public awareness of the types of activities that are considered gambling for the study’s purposes.”

The news wasn’t entirely good: 8,000 Iowans were quantified as problem gamblers, with another Continue reading →

Posted in Boulder Strip, Downtown, Economy, Herbst Gaming, Iowa, Problem gambling, Regulation, Station Casinos | Comments Off on As Iowa goes, so goes America

Case Bets: Multimedia, Philadelphia, Maryland

Posted on September 17, 2014 by David McKee

Here’s a vivid account of Multimedia Games‘ reversal of fortune, how a company focused on B-level gaming markets established a presence in Nevada, Atlantic City and Pennsylvania, and improved its value sufficiently to make it a Multimediatakeover target for Global Cash Access. One of the keys to Multimedia’s turnaround is slot platform TournEvent, which allows for multiple tourneys to be run simultaneously. Having gobbled up PokerTek earlier this year, Multimedia finds itself on the verge of being swallowed itself.

Analysts, however, don’t think the $1.2 billion GCA offer — expected to save $30 million in synergies — to be the end of the story. “We would not consider Continue reading →

Posted in Cordish Co., Global Cash Access, Harrah's, Marketing, Maryland, MGM Mirage, Penn National, Pennsylvania, Problem gambling, Regulation, Technology | 1 Comment

Boston: Wynn wins!; Changing horses at Boyd

Posted on September 17, 2014 by David McKee

Although the Massachusetts Gaming Commission put Wynn Resorts through the wringer this past week, when the chips were down Wynn emerged the steve-wynnwinner by a 3-1 vote. The positive verdict comes with some conditions, so a second vote will be held Wednesday, to ratify yesterday’s verdict. Though the process has been contentious, Steve Wynn was in a conciliatory mood, saying, “We expect that now that a decision has been made, everybody will find it much easier to relate to one another, get on with the job of creating jobs and building a better life for the citizens of Everett and the surrounding communities in the Greater Boston area.”

Or, as Everett Mayor Carlo DeMaria said, “We’ll no longer be the butt-end of Boston.”

“The process however is not over as the vote to repeal gaming remains on the ballot for November,” cautioned Continue reading →

Posted in Architecture, Boyd Gaming, Election, Horseracing, Macau, Massachusetts, Mohegan Sun, Steve Wynn, Wall Street | Comments Off on Boston: Wynn wins!; Changing horses at Boyd

Revel draws more interest; Risky business

Posted on September 16, 2014 by David McKee

Revel_0947Glenn Straub having put $130 million in escrow just in case his $90 million, all-cash bid on Revel doesn’t do the trick, other bidders are tipping their hands. Money doesn’t mean much to California developer Richard Meruelo, who forfeited a $5 million deposit on the defunct resort in favor of bidding on it at a bankruptcy auction. “We were of the belief that the shutdown of Revel could increase bidder interest, and that is exactly what happened,” Revel attorney John K. Cunningham told aforementioned court. Straub consigliere Stuart J. Moskovitz countered that his boss could have Revel back on its feet “within a few weeks,” although casino operations would be farmed out to a management company. Meruelo scrapped with Bankruptcy Judge Gloria Burns over Straub’s $3 million breakup fee, demanding a “level playing field.”

Cunningham shrugged off Meruelo, saying, “We don’t have another buyer standing in the wings.” Straub’s all-cash offer would have to Continue reading →

Posted in Atlantic City, Glenn Straub, Neil Bluhm, Ohio, Penn National, Pennsylvania, Regulation, Revel, Technology, Tilman Fertitta | 1 Comment

Boston: Wynn takes a stand

Posted on September 16, 2014 by David McKee

Wynn_fullFriday will go down as the day Steve Wynn told the Massachusetts Gaming Commission where it could get off. In a letter to the commissioners, Wynn “said Wynn Resorts would not alter the design of their proposed 27-story hotel tower in Everett. Wynn strongly defended the proposal in a letter to the commission though representatives of Wynn told reporters that they are actually open to redesigning the tower.” This has become an 11th-hour sticking point and it looks as though Wynn has decided if he has to jump through any more hoops it’s not worth it — although his surrogates are sending mixed signals. Wynn himself wrote that “There is no doubt that a glass curtain wall allowing for floor to ceiling wall to wall glass that looks upon the Mystic River and the Boston skyline is the most attractive solution for the guest experience.”

Representatives of Mohegan Sun and Suffolk Downs also had to take heart from attacks upon Continue reading →

Posted in Architecture, history, Maine, Marketing, Massachusetts, Mississippi, Mohegan Sun, Ohio, Penn National, Racinos, Regulation, Steve Wynn, Transportation | Comments Off on Boston: Wynn takes a stand

Quote of the Day

Posted on September 15, 2014 by David McKee

revel_0409“This is the first time in this case there seems to be a buzz going on.” — Bankruptcy Court Judge Gloria Burns, on an acrimonious hearing for Revel, marked by “threats of litigation if the auction was postponed, complaints that [buyer Glenn Straub] was being secretive about his plans for the massive complex and the appearance of a potential competing bidder.”

Posted in Atlantic City, Glenn Straub, Revel | Comments Off on Quote of the Day

Cycle of futility; Hard luck in Indian Country

Posted on September 15, 2014 by David McKee

As the casino industry braces itself for Global Gaming Expo, this could hardly be a worse moment to be hawking slot machines. Not only is it undergoing a slotspainful contraction but new markets (like Boston and Washington, D.C.) are a long way off from opening. As the U.S. casino industry does the unthinkable — remember the days when it was “recession proof”? — and downsizes, that makes for a lot of orphaned slots … 9,675 according to analyst Todd Eilers. Roughly 3,600 of the idled machines can be found in defunct Caesars Entertainment casinos, another 2,200 just in Revel, more still in Biloxi‘s Margaritaville and Atlantic City‘s Trump Plaza. Almost certainly, in the case of Caesars, a significant number of these boxes will find new homes in other casinos, further depressing a Continue reading →

Posted in Atlantic City, Bally Technologies, California, Economy, G2E, Harrah's, IGT, Maryland, Massachusetts, Mississippi, Revel, Scientific Games, Station Casinos, Tribal, Trump Entertainment Resorts | Comments Off on Cycle of futility; Hard luck in Indian Country

Case Bets: Wisconsin, Nebraska, Alabama

Posted on September 15, 2014 by David McKee

Jumping the gun, the Menominee Nation has launched a site for job-seekers at its hoped-for Dairyland Park casino. The landing page promises “Opening Soon Kenosha sitePending Approval.” (Did you notice how they jumped over that pesky construction phase?) The Forest County Potowatomi aren’t amused, withholding $25 million from the state to, in essence, coerce it into nixing the Menominee project.

“It’s not a question of whether we want the casino here or not or whether we want the jobs or not. I want jobs in Kenosha,” said Gov. Scott Walker (R), who continues to study the issue. He ought to like the aggressive job projections being made by the Menominee: Continue reading →

Posted in Alabama, Hard Rock International, Horseracing, Racinos, Technology, Tribal, Wisconsin | Comments Off on Case Bets: Wisconsin, Nebraska, Alabama

‘I’m poorer than you are’

Posted on September 15, 2014 by David McKee

KennedyThat’s the argument being reiterated in New York State, as impoverished cities and their would-be casino saviors fight for over one or (more likely) two casino licenses. Case in point: Newburgh, where Mayor Judy Kennedy (left) has become a media celebrity of sorts in her crusade to bring a casino to town by badmouthing local economic conditions. The New York Times describes Newburgh thusly: Boarded up rowhouses and vacant storefronts line the streets north of City Hall and Broadway, the city’s main thoroughfare. Drug dealers rule some corners. The sound of gunfire occasionally echoes through the streets.

Damn, it makes Las Vegas sound bucolic by comparison.

New York’s casino-licensing process has fallen into Continue reading →

Posted in Architecture, Economy, Genting, Massachusetts, Mohegan Sun, New York, Regulation, Steve Wynn | Comments Off on ‘I’m poorer than you are’

When a loss is a gain

Posted on September 12, 2014 by David McKee

Come this time next month, we could easily be reporting year/year gains in Atlantic City. Last month, as Revel and Showboat were winding down atlantic-cityoperations, the Boardwalk was only 1% off last year’s pace. Internet gambling played a role in that, obviously (to the tune of $10.5 million), but fortune favored the casinos, too, their table revenues up 12% in spite of a 10% drop in play. At the slots, coin-in (-6%) roughly matched a revenue decline. Tighter hold helped Borgata report 5% more in slot play. Table play rose 5%, as did the house’s winnings, for an overall gross of $66 million.

With players fleeing Revel ($12 million, -41%), Showboat ($15 million, -24.5%) and Continue reading →

Posted in Atlantic City, Carl Icahn, Current, Economy, Harrah's, Internet gambling, Mohegan Sun, New York, Revel, Tilman Fertitta, Trump Entertainment Resorts | 1 Comment

Wynn battles Boston

Posted on September 12, 2014 by David McKee

Steve-Wynn-201198-1-402Despite leading Mohegan Sun on points, Steve Wynn seems far from a TKO for a Boston casino. (For the full monty on both projects, the Massachusetts Gaming Commission provides heavy detail.) For one thing, Mayor Martin Walsh‘s administration appears to be laying the groundwork for a lawsuit. Wynn is also required to “obtain all permits required by the city of Boston for traffic mitigation” but midsummer of 2015 or risk losing his license.

Wynn also has to agree to a litany of conditions worth $20 million by later today and, if he doesn’t, he becomes the underdog for getting a license. Opines the Boston Globe, Continue reading →

Posted in Horseracing, Massachusetts, Mohegan Sun, Regulation, Rhode Island, Steve Wynn, Transportation | Comments Off on Wynn battles Boston

He came to buy Atlantic City

Posted on September 12, 2014 by David McKee

Just when you thought Atlantic City had shed several casinos, they’re coming right back. Would-be Revel buyer Glenn Straub would include casino gambling in his larger strategy for the property but make it incidental to other revel-resort-in-atlantic-city“hobbies.” “Who in the hell wants to go where there’s not something more than
just gambling? You can only gamble for so many hours, maybe eight hours a day. You’ve still got 16 hours longer to eat, sleep and have fun,” he groused to The Press of Atlantic City. “We’re not going to let a building be dominated by a casino,” he added, vowing to put the casino in the hands of a third-party operator. His focus, meanwhile, will be on converting Atlantic City into a sporting destination. (Womens’ basketball and skateboarding have been mentioned.) He’s already thinking big, talking about high-speed rail to New York and Philadelphia.

Straub, whose Revel bid seems to have caught Mayor Don Guardian off-guard, is just starting an Atlantic City white-tag-sale spree, expressing interest both Continue reading →

Posted in Atlantic City, Glenn Straub, Harrah's, Internet gambling, Politics, Regulation, Revel, Sports, Taxes, Transportation, Trump Entertainment Resorts | 2 Comments

Macao’s loss is Vegas’ gain

Posted on September 12, 2014 by David McKee

There is discernible evidence that the anti-corruption crackdown in China is redounding to Las Vegas‘ benefit. According to a report by Deutsche Bank‘s Venetian MacaoCarlo Santarelli, “we do see a relatively compelling empirical case that supports the view that anti-corruption crackdowns have, at the very least, temporarily diverted VIP flow from Macau.” For one thing, international traffic into McCarran International Airport is up 13% for April through July — coinciding with the anti-corruption push. This also parallels a 6% dropoff in rolling chip volume (the primary metric of VIP play) in Macao, as VIP rooms see less action.

“Beginning in April, when VIP drop decelerated significantly but remained positive, we saw a Continue reading →

Posted in Detroit, Economy, Macau, MGM Mirage, Ohio, The Strip, Transportation, Tribal | Comments Off on Macao’s loss is Vegas’ gain

Quote of the Day

Posted on September 11, 2014 by David McKee

“The expansive villa is truly the pinnacle of the Nobu Hotel. We wanted to further showcase and interpret the Nobu aesthetic and designed a luxurious and modern environment inspired by Japanese art, design and culture.” — Shawn Sullivan, Rockwell Group studio leader. Expansive, yes, and expensive.

Posted in Architecture, Harrah's, The Strip | Comments Off on Quote of the Day

Boston: Another agonizing delay; Loveman: Don’t worry, be happy

Posted on September 11, 2014 by David McKee

Just when it looked like the suspense would be ended over who’d get the Boston-area casino, the slow-moving Massachusetts Gaming Commission imposed another week’s delay on the process. Basically, Wynnscommissioners want Wynn Resorts to do better than it has in proposing to mitigate additional traffic in Sullivan Square, to the tune of $20 million. They also as much as told Wynn to redesign its “brooding” hotel tower … not something that Wynn can just pull out of its hat. They also want Mohegan Sun to rejigger its $45 million equity/$732 million financing package to include $100 million more in equity. Wynn’s task may be the more difficult, in that it involves reaching an accord with Boston Martin Walsh, who has been at daggers drawn with Steve Wynn from Day One.

Although Wynn was seen as outscoring Mohegan Sun (including in the omitted “general overview” category) in the MGC’s main criteria, the latter still appears to be Continue reading →

Posted in Alabama, Architecture, Atlantic City, Cordish Co., Genting, Harrah's, history, Marketing, Massachusetts, Mohegan Sun, New York, Penn National, Pennsylvania, Regulation, Steve Wynn, Transportation | Comments Off on Boston: Another agonizing delay; Loveman: Don’t worry, be happy

Atlantic City: MGM returns, Revel sold

Posted on September 11, 2014 by David McKee

BorgataThere was a happy ending for MGM Resorts International in its long soap opera with New Jersey gaming regulation. The New Jersey Casino Control Commission voted unanimously to relicense the company, reuniting it with Borgata — and with 86 million smackeroos that were being held in trust. This ends a process that’s been a year and a half in the making. Said NJCCC Chairman Matthew Levinson, “When I look over the last nine years, I see a company that looked for a way to get to the most lucrative gaming market on the planet … But I also see a company that took steps to remedy problems created by those shortcuts.” (Overseas, the news was spun as a verdict on Pansy Ho.)

The NJCCC was receptive to MGM’s contention that, with a 24% ownership stake, Ho’s influence was diluted and her involvement in management is nil. CEO James Murren also said he would Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Donald Trump, MGM Mirage, Pansy Ho, Regulation, Revel, Riviera, The Strip, Trump Entertainment Resorts | 1 Comment

Decision time in Boston

Posted on September 9, 2014 by David McKee

Wynn EverettAt last, the Massachusetts Gaming Commission is taking up the Steve Wynn vs. Mohegan Sun battle for a Boston-area casino. Hearings began yesterday, with one round going to each challenger. Wynn Resorts surprisingly (given its reputation) lost the swimsuit competition, its design deemed merely sufficient. Concerns were also raised about traffic problems its location might create … although Wynn’s plan to use oyster beds to clean the Mystic River won kudos.

Mohegan Sun’s shaky finances told against it in round two. Concerns were also raised that Mohegan Sun could use its Boston casino as a stalking horse for its Connecticut flagship — where Continue reading →

Posted in Architecture, Cordish Co., Environment, Harrah's, Internet gambling, Maryland, Massachusetts, Mohegan Sun, Penn National, Racinos, Singapore, Steve Wynn | Comments Off on Decision time in Boston

Trump bookmarks Chapter 11; Christie’s canny moves

Posted on September 9, 2014 by David McKee

Trump smallTrump Entertainment Resorts is back in familiar territory: Chapter 11. It is the fourth time that minority owner Donald Trump‘s casinos have gone insolvent. He may try to wash his hands of the mess, but he gets equity for the use of his face and moniker, so you could say that the market has blown him a big raspberry. Nothing says “failure” in Atlantic City like the Trump name.

TER has as much as a half-billion dollars in debt against a paltry $50,000 asset base and it’s pleading poverty in bankruptcy court. Betfair and other Internet-casino partners are reported to be Continue reading →

Posted in Atlantic City, Culinary Union, Donald Trump, Harrah's, Internet gambling, Maryland, New York, Pennsylvania, Sports, Tilman Fertitta, Trump Entertainment Resorts | 2 Comments