No gold rush in California

Posted on August 11, 2014 by David McKee

CorreaIn a huge setback for Internet gambling, California‘s legislature is calling it a day. State Sen. Lou Correa (D) is not only withdrawing his i-gaming bill from consideration, he’s being termed out at the end of the session, so the cause will have to find a new champion. Correa felt, no doubt rightly, that a month was insufficient time to get card rooms and fragmented Native American tribes to the bargaining time and hammer out a consensus.

In the lower house, an i-poker bill by Assemblyman Reginald Jones-Sawyer Sr. (D) is stuck in Committee Hell and unlikely to progress sheldonadelsoneither. “The politics of this aren’t right for this to get rushed through by the end of this year,” gaming law guru I. Nelson Rose told the Los Angeles Times. “The state is so large and there are so many tribes and they don’t agree on anything.” Other setbacks included outside interference by Sheldon Adelson and the conviction of i-poker proponent Sen. Roderick Wright (D) on unrelated felonies.

* Growing from six casinos and racinos to nine, Ohio‘s gaming revenue swelled  Continue reading →

Posted in California, Harrah's, International, Internet gambling, Isle of Capri, James Packer, Melco Crown Entertainment, Missouri, Ohio, Penn National, Pinnacle Entertainment, Politics, Regulation, Sheldon Adelson, Tropicana Entertainment | Comments Off on No gold rush in California

Success story in the Free State; Stalking horses in Nebraska

Posted on August 6, 2014 by David McKee

Horseshoe Baltimore

Correction: According to Caesars Entertainment — and contrary to the Washington Post — Horseshoe Baltimore is not being renamed “The Legend.” That is a misconstrual of an ad slogan: “The Legend is coming!”

There’s no need to worry about saturation in Maryland, where casino revenue rose another 10% last month. Rocky Gap Casino Resort, out in the western part of the state, shot 20% upward ($204/slot per day). By contrast, Hollywood Perryville was flat ($178/slot per day), thoroughly aced by Maryland Live! (up 11%) and its 81% market share($280/slot per day). Even little Ocean Downs did better ($241/slot per day), registering a 5% gain.

In the most interesting development, Horseshoe Baltimore (above) is undergoing a name change to Continue reading →

Posted in Cordish Co., Election, Harrah's, Maryland, Nebraska, Penn National, Racinos | 3 Comments

Good Caesars and Bad Caesars

Posted on August 6, 2014 by David McKee

caesars-palaceThat’s how a bondholder lawsuit distinguishes between Caesars Entertainment Operating Co. and Caesars Growth Partners. It castigates the toga-clad companies for — for instance — transferring Caesars Interactive (worth: $779 million) “for little or no consideration.” Similarly, Octavius Tower and The Linq were to be traded for a pile of bank debt until a bondholder’s complaint caused some cash to be tossed into the transaction as mitigation.

The crux of the bondholders’ complaint is that Caesars is shuffling valuable collateral, in the form of assets like Continue reading →

Posted in Atlantic City, Harrah's, Internet gambling, Louisiana, The Strip, Tilman Fertitta, Wall Street | Comments Off on Good Caesars and Bad Caesars

Slump in Macao; Trump’s latest tantrum

Posted on August 6, 2014 by David McKee

July was unkind to casino operators in Macao, with revenues down 4%. Mass market table win was healthily up, 17%, and slot revenue increased, albeit by 4%. However, VIP revenues were 14% on 13.% less volume of OB-BB375_Macau__20080221142644play. This pulled Las Vegas Sands‘ revenues down 2%, despite an increase in mass table play. An enormous upsurge in slot play at Wynn Macau and a smaller-than-average drop in VIP action saved the month, for which Wynn was up 6%. Hardest hit of the U.S. operators was MGM Grand Paradise, down 11% overall on declines in almost every category. Mass-market table win was up 40% but it still wasn’t enough to turn the tide.

Sociedade de Jogos de Macau led the market both in Continue reading →

Posted in Atlantic City, Donald Trump, Economy, Entertainment, Environment, Macau, MGM Mirage, Sheldon Adelson, Stanley Ho, Steve Wynn, The Strip, Trump Entertainment Resorts | 4 Comments

The Macanese squeeze

Posted on August 5, 2014 by David McKee

macau_wynn“Everyone has got dealers and waitresses and cooks and housekeeping and we all got them from the same place … what do you think is going to happen 18 months from now? Exactly the same thing.” That’s the sound of Steve Wynn being either sanguine or dangerously complacent, depending on your point of view. Who is “everyone”? It’s the six casino concessionaires, several of whom are having labor troubles. With Macanese labor at a premium and guest-worker importation strictly regulated, casino workers have the upper hand and aren’t afraid to flex it.

Both Venetian Macao and Galaxy Cotai (below) have been picketed in recent weeks by Continue reading →

Posted in Architecture, Current, Macau, Regulation, Sheldon Adelson, Steve Wynn, Tribal, Wisconsin | Comments Off on The Macanese squeeze

Quote of the Day

Posted on August 5, 2014 by David McKee

“This is turning out to be who can generate the most revenue for the state.” — disgruntled Liberty, N.Y., town supervisor Charlie Barbuti on casino expansion. Like, duh!

Posted in Economy, New York, Taxes | Comments Off on Quote of the Day

Packer’s second chance

Posted on August 5, 2014 by David McKee

“You can’t be in the gaming industry and not have a special reverence for Las Vegas — that’s where it all began. While we fell short in past attempts to enter that market, we now have the ideal opportunity.” So Packer & Hosaid James Packer with diplomatic understatement. For “fell short” substitute “fell on our face” and the statement becomes completely accurate. Unlike soon-to-open SLS Las Vegas, Packer’s got a terrific location, with Encore and Fashion Show Mall close at hand. (Trump International‘s there too, but it’s more of a potential beneficiary than a benefit.) Morningstar analysts add that Crown Resorts is on “much stronger footing” this time around and will be able to fill a yawning gap in its portfolio: no stateside property where it can entertain its VIP patrons when they travel to Sin City. Continue reading →

Posted in Arizona, Cannery Casino Resorts, Donald Trump, Election, Fontainebleau, Harrah's, James Packer, MGM Mirage, Politics, Sam Nazarian, Station Casinos, Steve Wynn, The Strip, Tribal, Wall Street | 2 Comments

MGM beats the Street; The wrath of Loveman

Posted on August 5, 2014 by David McKee

MGM_Grand1Not only did MGM Resorts International swing from a loss to a profit in 2Q14, its revenues exceeded Wall Street’s expectations. Analyst consensus foresaw $0.10/share in earnings and MGM delivered more than twice that. Revenues at every MGM property were up, not counting “Other Resort Operations” (read: Illinois), down 6% and a 1% slippage at MGM Grand Paradise in Macao, which still grossed almost as much as Bellagio, MGM Grand and Mandalay Bay — the top three domestic earners — combined. Even in markets that have withstood challenges lately (Detroit, Mississippi), MGM gained. Continue reading →

Posted in Architecture, CityCenter, Current, Detroit, Harrah's, Illinois, Macau, Maryland, Mississippi, Neil Bluhm, The Strip, Wall Street | 1 Comment

A Grand weekend

Posted on August 4, 2014 by David McKee

Thanks to the missus’ connections, we were able to swing a brief stay at the Downtown Grand last weekend. The liveliness of the atmosphere was at just the right level, not Fremont Street-manic. There are certain grand-picinherent design flaws that couldn’t avoided but still bug. Mainly it’s that the porte cochere is on the wrong side of the property, forcing one to traipse — bags in hand — to the check-in desk, all the way across the casino floor. The bathroom shower stalls (no tub) lack a sliding glass door, which is disconcerting. The cabanas on the rooftop-pool area are hardly worthy of the name and room service arrives not on a tray but in a plastic bag.

So there’s a bit of work to be done. And newly reconfigured management seems to realize that. (One change supposedly in the works is Continue reading →

Posted in Architecture, Dining, Downtown, Entertainment, history | 1 Comment

MGM’s urban renewal; Ruffin rides again

Posted on August 4, 2014 by David McKee

MGM Springfield 3Despite an atmosphere of uncertainty in Massachusetts, executives at MGM Resorts International are putting their faith in a November victory at the ballot box. They’ve closed on the purchase of two tornado-damaged buildings, the Springfield State Armory (shown) and the Zanetti School. MGM will finish the 2011 tornado’s work on the school, leveling it. The armory’s facade, however, will be preserved and incorporated into MGM Springfield. The total cost was $3.2 million — pocket change for the casino giant. It’s also a potential tax write off if things go south on Election Day, although we certainly hope Continue reading →

Posted in Architecture, Boyd Gaming, Economy, Election, Kansas, Massachusetts, MGM Mirage, Penn National, Phil Ruffin, Racinos, Taxes, Tribal | Comments Off on MGM’s urban renewal; Ruffin rides again

Tribal warfare; Happy ending in Pittsburgh

Posted on August 4, 2014 by David McKee

FlagCongress is fiddling around the edges of the Indian Gaming Regulatory Act but, for all the talk of reform, only ‘reservation shopping’ seems to be a real subject of concern. This political bogeyman is cited whenever a tribe wants to take off-reservation land into trust for casino purposes. However, it’s an exaggerated worry.  As Bureau of Indian Affairs chief Kevin Washburn told the Senate Committee on Indian Affairs, “Of the over 1,700 successful trust acquisitions processed since the beginning of Continue reading →

Posted in Arizona, Don Barden, Pennsylvania, Politics, Tribal | Comments Off on Tribal warfare; Happy ending in Pittsburgh

Packer returns

Posted on August 4, 2014 by David McKee

packerJames Packer is back. Undoubtedly encouraged by the recent groundswell of development on the Las Vegas Strip, he’s bought the New Frontier site for a casino development that will be underwritten by the Oaktree Capital Management hedge fund. Construction is to begin late next year, with the goal of finishing by 2018. The project will be overseen former Steve Wynn sidekick Andrew Pascal, whose former boss happens to work across the street. In the abstract it looks solid. It’s that Packer brings so much troubled karma with him: He invested heavily in the U.S. casino industry at its financial peak and got wiped out, to the tune of $1.85 billion. (He only just settled a lawsuit with Fontainebleau lenders two months ago.) Every deal Continue reading →

Posted in Atlantic City, Australia, Cosmopolitan, Fontainebleau, Harrah's, International, James Packer, Japan, Macau, Revel, Steve Wynn, Taxes, The Strip, Trump Entertainment Resorts, Wall Street | Comments Off on Packer returns

When titans wed; Cupidity at Revel

Posted on August 1, 2014 by David McKee

Just when you thought the manufacturing sector had engaged in enough consolidation that it would take a pause to pay down debt (or at least scientific-games-corp-logoburp) comes a mega-consolidation. International Game Technology‘s two biggest rivals will become one. Ronald Perelman‘s Scientific Games is scarfing up Bally Technologies for $3.3 billion plus $1.8 billion in debt assumption. That’s a lot of nickels. The $83.30/share acquisition price is a 38% premium to where the stock was trading and should be a big enough markup to scare off other would-be buyers … although, Continue reading →

Posted in Atlantic City, Bally Technologies, Cretins, GTECH, IGT, Regulation, Revel, Shuffle Master, Wall Street, WMS Industries | 1 Comment

Shakeup at Downtown Grand

Posted on July 31, 2014 by David McKee

I’ll be staying at the Downtown Grand this weekend and it looks like I won’t be the only novitiate. Ownership has installed a new management team, too, casting a wide net. CFO Marie Ramsey comes over from the Downtown GrandTropicana Las Vegas, and is an alumnus of Station Casinos and MGM Resorts International. Casino financial analyst Jeffrey Rabinowitz held the same position at wildly successful Maryland Live! Also new to his role at the Grand is veteran director of table games Ken Mumby, latterly veep of casino operations at Planet Hollywood. Lastly, the Grand has looked to someone with locals expertise to be the new director of marketing and picked Anthony Bender, late of the Riviera and American Casino & Entertainment‘s properties.

Given not only the size and timing of the shakeup but the positions affected one can only conclude that Continue reading →

Posted in Boyd Gaming, Cordish Co., Current, Delaware, Downtown, Harrah's, history, MGM Mirage, New York, Racinos, Riviera, Sheldon Adelson, Station Casinos, The Strip | Comments Off on Shakeup at Downtown Grand

Illiterate and accused; Revel: Rewarding failure

Posted on July 31, 2014 by David McKee

People who state their career goal as “trynna get rich” should probably be arrested for crimes against the English language. In the case of Izyiah Plummer (right), though, the charges are much more grave: the July 21 armed Caesars robbersrobbery of Caesars Atlantic City. The butter-fingered perpetrators grabbed three cash boxes but dropped one, lowering their take to $181,200. Plummer, a fired security guard at the casino, was allegedly the de facto inside man. The menu of charges includes robbery, aggravated assault, weapons offenses and receiving stolen property.

Four accused accomplices have also been arrested in connection with the smash-and-grab raid. One is a Tropicana Casino & Resort convention attendant. Another is a cashier at Harrah’s Resort. I’ll bet those casinos are feeling Continue reading →

Posted in Atlantic City, Harrah's, Herbst Gaming, Internet gambling, Louisiana, Maryland, Planet Hollywood, Revel, The Strip, Tropicana Entertainment, Wall Street | Comments Off on Illiterate and accused; Revel: Rewarding failure

Clouds over Macao

Posted on July 30, 2014 by David McKee

HotelLisboaForbes‘ Muhammad Cohen has been reading the latest tea leaves from the world’s gambling capital and doesn’t like what he sees: a 1H14 revenue increase of 13% (“heady for anywhere but Macau“) but a sequential decline from 1Q to 2Q14 of 11%. VIP play has, as a percentage of the total, been on the decline for four quarters now. “Union Gaming analysts in Macau Grant Govertsen and Felicity Chiang attribute VIP softness to China’s anti-corruption campaign. The corruption investigation into China’s former internal security chief Zhou Yongkang, announced Wednesday, adds to the cautious mood among VIP players and promoters.”

Cohen concludes, however, that “the main factor may be simply that the VIP market has matured – all the big money mainland players that want to come to Macau are already coming as frequently as they can, and increases will be more in line with China’s economic growth rather than double or triple that number in recent years.” The opening of new casinos on the Cotai Strip next year — which will require 32,000 new dealers and other employees could spark a mass exodus from existing casinos, with a too-small Macanese population to replace them.

Another problem is rival, overseas jurisdictions with Continue reading →

Posted in Delaware, Economy, Macau, Melco Crown Entertainment, Racinos, Singapore, Taxes, Wall Street | Comments Off on Clouds over Macao

Quote of the Day

Posted on July 30, 2014 by David McKee

Seal_of_New_York.svg“The initial proposal from the developers was that this is going to be a world-class destination resort. Now we all know no one is flying into East Greenbush or Rensselaer County to go gambling. This is not a resort area.” — Save East Greenbush activist Cara Benson on the downsizing of casino projects proposed for the Capital Region of New York State.

Posted in New York | Comments Off on Quote of the Day

Argosy Sioux City: 2003-2014

Posted on July 30, 2014 by David McKee

Better get to Argosy Sioux City by 4:59 p.m. if you want to lay down one final bet. The casino will be closing permanently at 5 p.m., in Argosy Bellecompliance with an Iowa Supreme Court order. The Supremes declined to hear Penn National Gaming‘s appeal of an Iowa Racing & Gaming Commission edict that the casino — which was in noncompliance with a law requiring a local nonprofit partner — be closed. So the slot and roulette wheels will stop spinning, and the dice will no longer bounce across the green felt.

Penn is being pretty “george” to its employees, who will obtain $464,000 in bonuses and $1.7 million in severance pay: “Hourly workers employed for at least a year are eligible for one week’s pay for every year of service, penn-national-gamingup to 52 weeks, while salaried employees can receive two weeks’ pay for every year, according to the court documents.” Since the workforce is becoming unemployed because their workplace went out of business, they’ll also qualify for 39 weeks unemployment from the state. The top 10 “key employees” will split a pot of $286,635 in “close bonuses.” (What a concept: Close a business, collect a bonus!) Continue reading →

Posted in Charity, Horseracing, Iowa, Penn National, Pennsylvania, Regulation, Texas, Warner Gaming | Comments Off on Argosy Sioux City: 2003-2014

Wynn: Most happy fella

Posted on July 30, 2014 by David McKee

We’ve gotten to inured to headlines that say such-and-such a quarter was “rescued by Macao” that I did a double-take today. The lead item on a newsletter was “Wynn Resorts Q2 results boosted by Las Vegas.” It’s Steve-Wynn-201198-1-402nice that the Strip is something other than an afterthought, even if Steve Wynn greeted the news with apparent ingratitude. Atypical Las Vegas Strip levels of staying and dining (up 12.5% from Q213) helped propel earnings 57% upward. “I never had a $50 million in July [in Las Vegas] in my business career, 40 odd years in gaming,” said an apparently astonished Wynn. In spite of all this success, Wynn still managed to miss Wall Street‘s demanding revenue expectations, even if profit overshot analysts’ target. The culprit was a soft June in Macao, where World Cup betting fever sapped casino revenues. Even so, Wynn’s Macanese casinos managed a small quarterly increase of 3%.

The oldest part of Wynn Macau is currently seeing a $60 million renovation, to give the company Continue reading →

Posted in Bally Technologies, IGT, International, Internet gambling, Macau, Scientific Games, Sheldon Adelson, Sports, Steve Wynn, The Strip, Wall Street | Comments Off on Wynn: Most happy fella

Wall Street: Viva Las Vegas

Posted on July 29, 2014 by David McKee

cards-casino“Results could be lackluster, even if more states allow casinos, as is the case in Ohio, which we estimate cannibalized roughly one-third of its revenues from surrounding states.”  So wrote Fitch Ratings Service analyst Michael Paladino, assessing the gaming industry’s national prospects. They’re not good — but there’s a silver lining. Demand in Las Vegas continues to grow — heck, the North Strip is coming back to life — even as regional markets tank. They’re forecast to decline as much as 5% over the next year and a half.

These numbers are putting some truth into the cliche that regional, ‘convenience’ casinos can never compete with Continue reading →

Posted in Economy, Harrah's, history, Mississippi, New York, Ohio, Racinos, The Strip, Wall Street, Westgate LV | Comments Off on Wall Street: Viva Las Vegas