Flake-ing out over tribal gambling

Posted on July 29, 2014 by David McKee

It must be nice to have two U.S. senators at your beck and call. That’s the case for tribal opponents of the Tohono O’odham Nation casino proposal. Sens. John McCain and Jeff Flake (R-AZ) are introducing a United_States_Capitol_west_frontbill that would make it illegal for a tribe (read: Tohono O’odham) to have a casino on land not contiguous with a pre-existing reservation. You might expect to ask what the tribe is expected to do with the once-arable land that was literally wiped out by Painted Rock Dam on a regular basis. In 1986, Congress allowed the Tohono O’odham to sell the ruined 9,800 acres and seek land elsewhere.

“Elsewhere” turned out to be a chunk of acreage that juts into Glendale. Other tribes didn’t see it coming because the Tohono O’odham used a front — Rainier Resources — to compile Continue reading →

Posted in Arizona, Politics, Regulation, Tribal | Comments Off on Flake-ing out over tribal gambling

Hawkeye State showdown

Posted on July 28, 2014 by David McKee

That Iowa Racing & Gaming Commission keeps going from the frying pan to the fire. Former Linn County attorney Gene Kopecky is suing the regulatory body for an unfair restraint of trade. His action is prompted Cedar Crossingby the denial of a license in Cedar Rapids due to fears of canibalization. That’s outside the IRGC’s purview, argues Kopecky, who contends that licenses are granted for an individual county not a specific site (a tenuous argument in this site-specific case). “Following possible appeals, the decision would not throw out the IRGC’s rejection of the Cedar Rapids casino project, but Kopecky hopes it would spur a group to re-apply.”

The IRGC did not help its case by promptly following up the Cedar Rapids denial with Continue reading →

Posted in Iowa, Penn National, Regulation, Warner Gaming | Comments Off on Hawkeye State showdown

Would you let this man rob your casino?

Posted on July 28, 2014 by David McKee

ChahineDespite 14 arrests for cheating at a couple dozen Las Vegas casinos, the Nevada Gaming Control Board never saw fit to nominate hall-of-fame cardshap Jubreal Chahine for inclusion in the Black Book, not even after it publicly characterized him as “a frequent cheater.” Chahine must have thought he had some guardian angel looking out for him. His favored forms of trickery involve jiggery-pokery with chips, like past-posting, where you slip a bet onto the felt after the cards have been dealt or the dice have stopped rolling. (Doesn’t that douchey look just scream “suspicious”?)

“It doesn’t take a whole lot of sleight-of-hand ability. But it does take guts,” Worldwide Gaming Consulting President George Joseph told the New York Times. Whether because he bet small or Continue reading →

Posted in Cretins, Greenwood Racing, MGM Mirage, Neil Bluhm, Pennsylvania, Regulation, Sheldon Adelson, The Strip | Comments Off on Would you let this man rob your casino?

Enormous changes at the last minute

Posted on July 28, 2014 by David McKee

sweeney_colorAfter years of hand-wringing about the future of Atlantic City, there is a sudden imperative to do something about the seaside resort. It’s gone from a leadership vacuum to possibly having too many chefs in the kitchen. State Senate President Stephen Sweeney (D, left) is proposing the creation of a private-sector version of the CRDA to channel money from theoretical Meadowlands and Jersey City casinos. (“I just don’t want to give money to government, because I know what they do with it.”) From the point of view of Sweeney and others, Gov. Chris Christie‘s five-year grace period for Atlantic City but the sudden collapse of the casino market there calls for extraordinary measures.

Even Christie seems to be softening towards elements of Sweeney’s scheme, saying, “any expansion of gaming to other parts of the state would have to have, as an element to that plan, Continue reading →

Posted in Atlantic City, Carl Icahn, Churchill Downs, Economy, Hard Rock International, Harrah's, Mississippi, Penn National, Revel, Tilman Fertitta, Trump Entertainment Resorts | Comments Off on Enormous changes at the last minute

Pinnacle pestered; Penn profits; Pokies pilloried

Posted on July 25, 2014 by David McKee

Orange Capital, calling itself “unsatisfied,” has renewed its pestering of Pinnacle Entertainment to convert itself into a REIT. Orange claims that share value could be increased 60% to 90%. Unfortunately for Pinnacle customers, REITs are required to return 90% of taxable earnings to shareholders, which could have a deleterious effect on Pinnacle’s casinos, known for their quality.

Ameristar East ChicagoIt’s not like Pinnacle is on its uppers. Net revenue in the most recent quarter grew 108%, thanks to the absorption of Ameristar Casinos and to some recent cost-saving measures. (Not enough to stave off a $2.3 million loss, though.) “While so far trends are looking better than the second quarter, the change has not been meaningful,” said Continue reading →

Posted in Ameristar, Atlantic City, Australia, Indiana, Louisiana, Missouri, Ohio, Penn National, Pinnacle Entertainment, Problem gambling, Racinos, Tropicana Entertainment, Wall Street | Comments Off on Pinnacle pestered; Penn profits; Pokies pilloried

Regulators to Walsh: Not so fast, friend

Posted on July 25, 2014 by David McKee

WalshBoston Mayor Martin Walsh isn’t getting off the hook so easily. He tried to fob the negotiation of a mitigation agreement with Wynn Resorts off on the Massachusetts Gaming Commission. The latter said ‘not so fast’ and ordered the city back to the bargaining table. And if that doesn’t work, the MGC will appoint an independent arbiter to cut the Gordian knot. “The city’s basically, without telling us why, said they’re … just abandoning that [Charlestown] section of the city,” explained Commissioner James McHugh. “We have some obligation to protect it. At the same time, we’ve got to maintain our neutrality.”

While somewhat craven, Walsh’s refusal to go to arbitration and risk the 50-50 chance of being stuck with the Wynn offer is understandable. While (010914 Everett, Ma) Renderings for the proposed Wynn Casino in Everett.Mohegan Sun is offering an extra-george $30 million upfront and $18 million a year, Wynn has only put $6 million and $2.6 million, respectively, on the table. There’s no comparison, so one can see why Walsh would fear to be stuck with the Wynn offer, if that were the case — especially if Continue reading →

Posted in Economy, Genting, Harrah's, Illinois, International, Massachusetts, Mississippi, Mohegan Sun, Regulation, Steve Wynn, Wall Street | Comments Off on Regulators to Walsh: Not so fast, friend

Great month for the Strip, for Louisiana not so much

Posted on July 25, 2014 by David McKee

Dice-in-crapsBuoyed by heavy baccarat play, the Las Vegas Strip registered a 22.5% gain in June. The house played very lucky, too, with win up a staggering 155%. At the other end of the gaming spectrum, those slots must have been pretty tight, as casinos won 9% more on 13% less coin-in (with a day of May weekend revenue thrown in). Baccarat carried the rest of the table games, which were 2% down despite 6% higher drop. Strip gaming revenues are up over 3% for the year so far. June’s numbers shot past Deutsche Bank analyst Carlo Santarelli‘s projections for the Strip, which were ‘only’ a 10% gain.

It was mostly good news elsewhere. Downtown Las Vegas was up 12% and North Las Vegas 23%. The Boulder Strip gained Continue reading →

Posted in Atlantic City, Boyd Gaming, Churchill Hill, Downtown, Economy, Harrah's, Isle of Capri, Lake Tahoe, Laughlin, Louisiana, North Las Vegas, Penn National, Pinnacle Entertainment, Racinos, Reno, The Strip, Tropicana Entertainment | 1 Comment

Quote of the Day

Posted on July 24, 2014 by David McKee

Posted in Dan Gilbert, Sports, TV | 1 Comment

Penny pinchers; Tribal warfare in New Mexico; Who’s tops in Macao?

Posted on July 24, 2014 by David McKee

slot machineAlthough the hold on penny slots in Illinois casinos is grotesquely higher than that for quarter slots/video poker, the imaginary value of penny machines makes them by far the most popular genre in the state. Punters dropped $41 million into penny slots, compared to $14 million into far looser quarter machines. Most “george” of the casinos surveyed was Penn National Gaming‘s Hollywood Joliet, which returned 95% on quarter slots/VP versus only 87% on penny machines. The penny hold was incrementally the highest at Rivers Casino (13%+), while the quarter machines aboard Grand Victoria were the least generous.

* “The terms requested by the Pueblo of Pojoaque are characteristic of its reckless and unreasonable approach to negotiations. These terms raise serious questions about Continue reading →

Posted in Election, Illinois, Macau, Melco Crown Entertainment, MGM Mirage, Neil Bluhm, Penn National, Sheldon Adelson, Stanley Ho, Steve Wynn, Technology, Tribal | 1 Comment

Has tribal gaming peaked?

Posted on July 24, 2014 by David McKee

WashburnThat’s the import of remarks by Assistant Secretary for Indian Affairs Kevin Washburn, testifying before a Senate committee. Not only have revenues plateaued in the $26 billion-$28 billion range, they’ve essentially been the same since 2007. Meanwhile, private-sector gambling is outstripping tribal revenue growth, hitting $38 million last year.

“No great economic resource lasts forever,” summarized Washburn, head of the Bureau of Indian Affairs and a member of the Chickasaw Tribe of Oklahoma — which has more than a few gaming irons in the fire. He admitted to a certain bias: “Commercial gaming goes to enrich Continue reading →

Posted in Horseracing, Kentucky, Regulation, Technology, Texas, Tribal | Comments Off on Has tribal gaming peaked?

Glimmers of hope on the Boardwalk

Posted on July 24, 2014 by David McKee

Every morning, Atlantic City Mayor Don Guardian (R) rides his bicycle along the Boardwalk. This morning, Guardian must have felt he was carrying a heavier burden than usual. Although Hizzoner has maintained that Atlantic City will come out on the other side of a series of casino closings stronger than before, that didn’t play with Moody’s Investor Service. Blowing off arguments that the Atlantic City market needs to downsize in order to survive, Moody’s lowered the Boardwalk’s credit rating to junk level, Baa2 or “speculative.”

Wrote Moody’s analysts Vito Galluccio and Julie Beglin, “These [weakened fundamentals] result from ongoing casino revenue declines, expected near-term casino closures, and the impact of sizable casino tax appeals, all of which has stemmed from increased competition from casinos in neighboring states.” The prospective unemployment that will result from the Showboat, Trump Plaza and Revel closings is truly staggering: According to Bloomberg, 6,248 Atlantic citizens will be going on the dole.  Continue reading →

Posted in Atlantic City, Economy, Harrah's, Mississippi, Politics, Regulation, Revel, Trump Entertainment Resorts, Wall Street | Comments Off on Glimmers of hope on the Boardwalk

Adelson goes soft on Communism; Wynn befriends oysters

Posted on July 23, 2014 by David McKee

Sheldon Adelson may play the tough guy at home but he’s a pushover in Macao. Rather than anger his Communist overlords, Adelson apologized for a labor march that just so happened to be held outside Venetian Macao. The protest was organized to call for 10% pay raises and more promotions of dealers to supervisors.

Venetian Macao foyer“Some people at Sands China are working as dealer supervisors but only getting dealer salaries. Our issue is only with Sands,” said organizer Kelvin Leong. The protest group, Forefront of the Macao Gaming, appears to have marshaled considerably more than the 200 protesters estimated by police (such wild discrepancies in reporting are nothing new). However, its demands rang a bit hollow since it didn’t have Sands China membership numbers and nobody knew if Adelson’s employees were actually participating in the protest or signed a 5,000-signatory petition that was delivered to Sands management.

Since employers in Macao can be sanctioned by their bosses without having any legal recourse, Sands workers would do well to Continue reading →

Posted in Environment, Harrah's, Macau, Massachusetts, Regulation, Sheldon Adelson, Steve Wynn | 1 Comment

Megaflop at the Trop

Posted on July 23, 2014 by David McKee

Whatever the hold Mamma Mia! exerted over Las Vegas audiences, it’s gone — and so will be the show, closing Aug. 3 after an abortive, three-month run. It doesn’t figure: A previous incarnation at Mandalay Bay (which Mandalay Resort Group and later MGM Resorts International were able to market to multiple properties) lasted for six-plus years. The version which (re)opened at the Tropicana Las Vegas was lacking some of the bells and whistles — and some of the dialogue — of the Mandalay Bay version, making it look a bit tatty and cheap.

True, Mamma Mia! must be a bit of hard sell when anybody can go down to Redbox and rent the DVD. But that’s not the whole story. It’s Continue reading →

Posted in ABBA, Alex Yemenidjian, Downtown, Entertainment, MGM Mirage, Movies, The Strip | Comments Off on Megaflop at the Trop

Gaming industry gets mixed notices

Posted on July 23, 2014 by David McKee

American Gaming Association data on the health of the casino
industry continues to be parceled out. Today we learned that Louisiana has 2.2X as many casino employees as Ohio but they make 2.7X as much. ohio_plate_08Mind you, the Buckeye State’s industry is still growing (the report does not account for a racino that opened during the survey) and there’s a learning curve: “casino and racino officials have said employees quit because they can’t adjust to working in a business that never closes, [while] other employees have been promoted or moved to properties in other states.” Louisiana ranks fourth in wages paid, while Ohio comes in at 12th place, right in the middle of the pack. The state will probably move still further up the totem pole when racinos in Dayton and Youngstown open later this year.

* New York State‘s casino-siting board has until Labor Day to practice its Continue reading →

Posted in Economy, IGT, International, Internet gambling, Louisiana, Ohio, Racinos, Wall Street | Comments Off on Gaming industry gets mixed notices

Forced to gamble?; SugarHouse goes big

Posted on July 23, 2014 by David McKee

Trump_Plaza_lrNew Jersey‘s Casino Control Commission has been accused of overzealousness in the past (think MGM Resorts International and Pansy Ho). But now some overzealotry is what local politicians want. In a bizarre and probably unconstitutional move, they want the NJCCC to force, yes force, the Showboat and Trump Plaza to stay open an additional four months. State Sen. James Whelan told The Press of Atlantic City “the longer the better, because first of all, it would keep people working, and secondly, it would maximize the possibility of someone [interested in buying the property] having enough time to do their due diligence.”

S&G is all for keeping casino employees at their jobs, especially at the Showboat, whose operating profit was — according to Continue reading →

Posted in Atlantic City, Economy, Harrah's, MGM Mirage, Neil Bluhm, Pansy Ho, Pennsylvania, Regulation, Trump Entertainment Resorts | Comments Off on Forced to gamble?; SugarHouse goes big

Power play in Vegas; Positive talk in Pennsylvania

Posted on July 22, 2014 by David McKee

Jason Ader, a former hot-shot casino industry analyst turned wealthy hedge fund managerLas Vegas Sands and Bwin shareholder, and all-around string-puller Jason Ader is committing 350 million of (other people’s) dollars to bringing a Major League Soccer franchise to Las Vegas. Much of the investment would be realized through the EB-5 visa program. (How many Chinese can an MLS team support?) A goodly chunk of the rest would be raised through taxpayer subsidies. “We would be looking for a tax concession. The question is how much? It would need a subsidy,” Ader told the Las Vegas Review-Journal. Ader has offered to chip in some of his own capital, though it’s unclear at this point how much.

Trouble is, Las Vegas has already signed off on a development deal between Cordish Cos. and and Findlay Sports & Entertainment. The Findlay plan is scheduled to be announced on Aug. 6. On one point Mayor Carolyn Goodman is in sync with Ader: Continue reading →

Posted in Downtown, Harrah's, International, Internet gambling, Ohio, Pennsylvania, Regulation, Sports, Tribal | Comments Off on Power play in Vegas; Positive talk in Pennsylvania

Caesars gains a hot tub, Biloxi loses a casino

Posted on July 22, 2014 by David McKee

7_21_14_d_nobu_tub_kabik-116You live in Las Vegas long enough, you think you’ve seen everything. Then somebody uses a helicopter to airlift a big-ass jacuzzi (technically an “onsen tub”) onto the terrace of the Nobu Tower at Caesars Palace, where it will grace the high-roller Nobu Villa. The tub was evidently too cumbrous for a crane — or maybe Caesars Entertainment just wanted to make a statement. No expense spared! Color me impresssed

* In what we’re assured is not the start of a trend, Biloxi‘s newest casino, Margaritaville, is taking a night train to the Big Adios. Mississippi Gaming Commission Executive Director Allen Godfrey was in PR damage-control mode. “I think it probably was more of an instance that, coming out of the gate, they struggled a little bit to find their niche. All along the Gulf Coast, there are hotels going up, hotel renovations,” he said. Continue reading →

Posted in Harrah's, Mississippi, Regulation, The Strip, Tilman Fertitta | 2 Comments

Boardwalk despair; Comings and goings on the Strip

Posted on July 22, 2014 by David McKee

It’s a dark day when you find yourself in agreement with Donald Trump, but such is the case with the famous Atlantic City boarding house owned by Vera Coking. Eight years ago, when he wanted to expand Trump Plaza, The Donald offered $1.9 million at least — more, he claims. When that didn’t work, he sicced the Casino Reinvestment & Development Authority on Ms. Coking. They went the eminent-domain route, offering $251,000. Ms. Coking’s position was eminently reasonable: It was her property and she didn’t want to sell it. She even was taken to court and emerged victorious.

However, by taking a completely admirable — if impractical — position, Ms. Coking has cost herself a big payday. Her boarding house is finally trump deskgoing on auction, with a starting price of $199,000. Its owner might be lucky to get that much. It has already gone from $5 million to $1 million to a fifth of that amount. “It’s mostly pawnshops, cash-for-gold places, a bar, a couple of liquor stores. We did get a call from some Chinese investors, and one guy wants to do a pharmacy,” Auction Advisors‘ Oren Klein reports of the potential buyers. However, neither  Continue reading →

Posted in Atlantic City, Donald Trump, Entertainment, Harrah's, Sam Nazarian, The Strip, Trump Entertainment Resorts | 1 Comment

Argosy saved … for now

Posted on July 21, 2014 by David McKee

Not only has the Iowa Supreme Court not ruled on Judge Elizabeth Ovrom‘s ruling to close Argosy Sioux City, it hasn’t decided whether penn-national-gamingor not to hear the case. However, it still has kept the Penn National Gaming riverboat on life support. It could just be a matter of days — or one of months. All depends on whether the high court chooses to hear Penn’s appeal of the Iowa Racing & Gaming Commission‘s closing order. Considering that it has been allowed to keep the Argosy open for a year unlicensed under a clause called “operation of law,” Penn’s fate could have been far worse than its current predicament would indicate.

* Kudos to the surveillance staff at Sands Bethlehem. They spotted and helped Pennsylvania state police arrest alleged casino cheat Jubreal Chahine, wanted by Continue reading →

Posted in Foxwoods, Greenwood Racing, Iowa, Massachusetts, Penn National, Pennsylvania, Regulation, Sheldon Adelson, Tribal | Comments Off on Argosy saved … for now

Thinking the unthinkable

Posted on July 21, 2014 by David McKee

Could Nevada casino floors go genuinely smoke-free? That’s the idea floated by Deutsche Bank analyst Andrew Zarnett. Although Nevada
smokingvoters have exempted casino floors from smoking bans, Zarnett thinks that state of affairs could change by 2016 or so, at the casino industry’s behest. He cites the example of Macao, which — mirabile dictu — is going smoke-free in October? It’s one of those “Only Nixon could go to China” moments (to borrow a famous Vulcan saying) that will increase pressure on Big Gaming by clean-air advocates. At present, there’s no better way to pick up some second-hand fumes than, say, traveling one of Palazzo‘s ludicrous “smoke-free corrdiors” — as though smoke respects an invisible line in the sky.

There’s peril in the idea, of course. Illinois‘ gaming revenues dove 21% in 2007 (a boom year elsewhere) when a smoking ban was imposed. Delaware‘s 2002 ban was followed by Continue reading →

Posted in Delaware, Economy, Environment, Florida, Illinois, Macau, Mississippi, Sheldon Adelson, The Strip, Transportation | 2 Comments