Marrandino returns; Crime and casinos

Posted on July 18, 2014 by David McKee

tahoe hard rock rendering-It’s hard to say which is the more intriguing aspect of the announced reinvention of Lake Tahoe‘s Horizon Casino Resort. Is it the adoption of the Hard Rock brand or the re-emergence of Don Marrandino as the man who’s going to lead the Horizon into this new era? It’s a comedown for Marrandino, last spotted as tribune for Caesars Entertainment‘s East Coast properties, but a catch for owners Neva One to land so much casino acumen in one person. It’s also a comeback for Marrandino, who served three years (2001-03) as president of the Hard Rock Hotel & Casino in Las Vegas, back during Continue reading →

Posted in Atlantic City, Columbia Sussex, Harrah's, Lake Tahoe, Pennsylvania, Taxes, Warner Gaming | 1 Comment

Reversal in Phoenix; Flame out

Posted on July 17, 2014 by David McKee

So noxious to some in the Phoenix area is the idea of a Tohono O’odham Nation casino that Arizona‘s congressional delegation has actually tried to get a special law passed to stop it. For five and a half years, the Tohono O’odham have persisted in their quest, with few allies outside the Interior Department, and victory finally appears to be at hand. The city council of Glendale has repealed its 2009 anti-casino stance, suddenly leaving casino opponents without one of their strongest bulwarks.

WestValleyThe disputed land, which lies outside Glendale but juts into its boundary line, was declared reservation land in 2009, making it eligible for casino development. The State of Arizona tried to argue that the Tohono O’odham agreed to a casino moratorium but that argument was tossed out of federal court. With Glendale now officially siding with the tribe — and against Continue reading →

Posted in Arizona, Current, Dining, Downtown, Environment, Politics, Tribal, Westgate LV | Comments Off on Reversal in Phoenix; Flame out

Paradox at Sands

Posted on July 17, 2014 by David McKee

Sands-Cotai-CentralOnly in Macao could Sheldon Adelson report a 27% increase in profit and have it be called disappointing. For the first time in four years, Macanese action dropped last month, down 4%. Dollars to doughnuts, those missing patacas will turn up in the robust sports-betting sphere, which was expected to record heavy World Cup wagering. Las Vegas Sands was george enough to roll out a new bonus program for its employees but pushed them under the bus by partly blaming aforesaid bonuses for the lower-than-expected numbers. (Even so, industry-watchers expect Sands’ bonuses to force the other Macao concessionaires to follow suit or lose employees to Sheldon.)

Waving off competition, “Adelson, speaking on a conference call on Wednesday, attributed a 6 percent drop in VIP revenues due to factors including tighter liquidity conditions in China and the lucrative junket system, a slowdown in the country’s real estate market and caution due to an ongoing anti-corruption campaign.” Continue reading →

Posted in Macau, MGM Mirage, Sheldon Adelson, Singapore, Sports, The Strip, Wall Street | Comments Off on Paradox at Sands

Take my casino, please; Nail-biter in Iowa

Posted on July 17, 2014 by David McKee

Rather than accept three potential casino closings as a fait accompli, Unite-Here is out beating the bushes for potential buyers. Given, the Showboat ACcasinos aren’t Unite-Here’s to sell but there’s no law that says the union can’t play matchmaker. “We want the world to know that we’re looking for partners, not saviors or messiahs. We will work with them,” spake local president Robert McDevitt, which is a fancy way of saying that wage and benefit concessions are on the table, as an enticement.

“The union plans to contact potential buyers for the casinos, saying they can be profitably run if bought at a low enough price,” reports The Associated Press. Of course, price is something over which the union exerts no control. Caesars Entertainment CEO Gary Loveman has to get his bondholders the best price he can for the Showboat. And what Trump Entertainment Resorts is willing to sell Trump Plaza for and what creditor Carl Icahn will allow it to accept could be two very different things. We know Hard Rock International has been circling Revel for a while but how much is it disposed to offer at the bankruptcy auction? Or does Caesars covet it and is using the Showboat closure to screen itself from antitrust action? Continue reading →

Posted in Atlantic City, Carl Icahn, Columbia Sussex, GTECH, Hard Rock International, Harrah's, IGT, Internet gambling, Iowa, Penn National, Regulation, Revel, Technology, Tropicana Entertainment, Trump Entertainment Resorts | 1 Comment

Russian roulette in Boston

Posted on July 16, 2014 by David McKee

Due to Boston Mayor Martin Walsh‘s refusal to go to arbitration with Wynn Resorts, the Massachusetts Gaming Commission finds itself in (010914 Everett, Ma) Renderings for the proposed Wynn Casino in Everett.an unexpected role. It’s mulling other surrounding-community agreements from around the state and trying to measure the economic impact of a Steve Wynn casino on Boston. The irascible Walsh is playing a high-risk game here: The commission could decide that he’s opted out of surrounding-community status, in which case Boston won’t get beans from Wynn. It probably won’t come to that but it’s a real possibility.

Mohegan Sun* Caught between the hammer of Resorts World New York and the anvil of Twin River Casino in Rhode Island, the tribal casinos of Connecticut had another rough go of it last month. Slot handle was down 5% at Foxwoods Resort Casino and revenue was off 13% (which implies players were taking Foxwoods to the cleaners).
Drop and revenue were down 10% alike at Mohegan Sun (above). The latter’s CEO, Continue reading →

Posted in Atlantic City, Delaware, Foxwoods, Genting, International, Internet gambling, Massachusetts, MGM Mirage, Mohegan Sun, New York, Regulation, Rhode Island, Steve Wynn | Comments Off on Russian roulette in Boston

Goodbye IGT, hello Gtech

Posted on July 16, 2014 by David McKee

Early this morning, International Game Technology announced it had been acquired by Gtech, an Italian company specializing in lotteries. The terms of the deal include the assumption of $1.7 billion in debt and web1_WEB-IGT-LOGOthe payment of $4.7 billion in cash. Gtech stockholders will get one share of the merged entity for every Gtech share they own. IGT shareholders, by contrast, will receive $13.69 per share plus 0.2 shares in holding company NewCo. Although registered in the United Kingdom, NewCo will maintain satellite headquarters in Rome and Las Vegas, and maintain its Gtech name. “With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape,” announced Gtech CEO Marco Sala.

The sale price is an 18% premium to last night’s close but a 46% markup from where IGT was trading when it announced it was looking for a buyer, last June 6. J.P. Morgan analyst Joseph Greff doesn’t see a bidding war on the horizon Continue reading →

Posted in Bally Technologies, Current, Economy, GTECH, IGT, Scientific Games, Shuffle Master, Wall Street, WMS Industries | Comments Off on Goodbye IGT, hello Gtech

The perils of Penn

Posted on July 15, 2014 by David McKee

Argosy Sioux City continues to lurch from crisis to crisis. In the latest twist, Judge Elizabeth Ovrom gave with one hand but took away with Argosy Bellethe other. In order that the casino can appeal its closure order from the Iowa Racing & Gaming Commission, the Argosy got another week-long reprieve. This gives it time to take the April 17 order to the Iowa Supreme Court for a  last-ditch appeal. However, she won’t lift the closing notice: “Allowing the Argosy Casino to remain open would be prolonging the inevitable.”

July 21 is D-Day for Argosy, when it either closes or enjoys a reprieve from the Supremes. Owner Penn National Gaming is also pursuing a petition for judicial review, recently dismissed without prejudice, of the entire Penn/IRGC conflict. If the court takes up that matter, it buys not weeks but Continue reading →

Posted in Charity, Iowa, Macau, MGM Mirage, Penn National, Regulation, Sheldon Adelson | Comments Off on The perils of Penn

Terra incognita

Posted on July 15, 2014 by David McKee

Boldly going where no tribe has gone before, the  Iipay Nation of Santa Ysabel is days from launching PrivateTable.com. In the Iipay Nation’s Internet casinoviewpoint, tribal sovereignty overrides California law, permitting it to go it alone as an i-poker provider. The idea is to limit players to ones within California boundaries, so PrivateTable must have a lot of confidence in its geolocation software.

Poker is permissible as a Class II game under the Indian Gaming Regulatory Act and the Iipay Nation is counting on this loophole being big enough for its online games to slip through. Also, i-poker isn’t specifically forbidden in California, another loophole the Iipay will be exploiting. (The site will be poker-only, to avoid having to make a compact with the state.) The physical servers will be across the country, in the Mohawk Territory of Kahnawake. Punters will be able to pay either by credit card or Bitcoin.

* In a less-controversial development, the El Cortez has Continue reading →

Posted in California, Downtown, Internet gambling, Regulation, Slot routes, Station Casinos, Tribal | Comments Off on Terra incognita

No-Wynn situation in Boston

Posted on July 15, 2014 by David McKee

To hear Boston Mayor Martin Walsh tell it, there’s no point in further negotiations with Wynn Resorts. He also claims that insufficient information has been put on the table for an arbitrator to make a decision. Steve Wynn’s offers, he says, are chump change — 600 grand a year and some loans, much, much less than what he was promised by Mohegan Sun. Ergo, he’s invoking an obscure power of the Massachusetts Gaming Commission and demanding that it hash out the terms of a Boston/Wynn deal itself.

“Under state law, the commission can now decide what, if anything, Boston should receive in annual mitigation payments from Wynn for their project as part of a surrounding community agreement.” I’d not thought of Walsh as a gambler but this appears to be a high-risk gambit. Continue reading →

Posted in Massachusetts, Regulation, Slot routes, Steve Wynn | Comments Off on No-Wynn situation in Boston

Soft landing in A.C.; “Nocturne” put to sleep

Posted on July 14, 2014 by David McKee

Internet-gaming revenue continues to slip in New Jersey, down 9% from May. There are only three players of consequence: Borgata (36.5%), Caesars Atlantic City (27%) and Tropicana Atlantic City (18%). Still, Internet Caesars ACgambling continues to provide a cushion for the resort city, which was down only 6% last month (a same-store comparison was flat). Caesars enjoyed a big bounce at its Atlantic City property, where revenues rose 12%, to $29 million, thanks to heavy table play (up 21%). Borgata ($48 million; -1%) got clocked a bit at the tables, with revenues off 10.5% on a comparable diminution in volume. However, that was offset by nice, tight slots, which won 4% more than last year, despite a slight decline in coin-in.

Results at the four Caesars Entertainment properties were very mixed. Harrah’s Resort ($29.6 million) was only off 2% but a veritable diaspora continues Continue reading →

Posted in Atlantic City, Boyd Gaming, California, Cosmopolitan, Current, Entertainment, Harrah's, Internet gambling, Mohegan Sun, Revel, Sam Nazarian, Steve Wynn, The Strip, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts, Wall Street | Comments Off on Soft landing in A.C.; “Nocturne” put to sleep

N.Y.: We’re poorer than you; Shame at the Plaza

Posted on July 14, 2014 by David McKee

JonesThat casino battle in New York State is evolving into a war of words. At stake is who can prove they’re poorer than the next guy. A study commissioned by the Sullivan County Partnership for Economic Development reached the perverse point of pride that Sullivan had “the lowest percentage of high school and college graduates, lowest median income, highest unemployment rate and worst health out of six counties examined in the study, including Orange and Ulster.”

Called upon to out-poor-mouth this, Caesars Entertainment veep Jan Jones Blackhurst replied that, well, Continue reading →

Posted in Downtown, Economy, Harrah's, New York, Regulation, Tamares Group | 2 Comments

Japan, land of opportunity

Posted on July 14, 2014 by David McKee

GaryLoveman_big“I think it’s a less likely fit for us, because it’s not clear what the complementary set of skills would be in their case,” said Caesars Entertainment CEO Gary Loveman of gray-market pachinko parlors. That being the case, he might be leaning toward getting into, say, Osaka by teaming with a theme-park operator. There he will find Universal Studios Japan and Dutch firm Huis Ten Bosch, both of whom are looking for a partner. Huis Ten Bosch is happy to stay out of casino operation itself and is seeking a lessee. That sounds as though it would suit Caesars to the ground. Continue reading →

Posted in Harrah's, Japan, Macau, MGM Mirage, Regulation, Sheldon Adelson | Comments Off on Japan, land of opportunity

Atlantic City: And then there were nine …

Posted on July 14, 2014 by David McKee

Trump_PlazaScarcely had Gary Loveman opined that a few casinos in Atlantic City needed to close than they began toppling like dominoes — some by his own hand. Headed to the casino graveyard alongside the Atlantic Club and the Showboat is Trump Plaza, whose owners contemplate a mid-September shutdown. Unlike the Showboat, Trump Plaza has been making negligible revenue for nearly as long as we can recall. Like Showboat and Revel, it hasn’t been able to attract buyers. Worse, it hasn’t been able to attract gamblers. Unlike the Showboat closing, this isn’t a rash and questionable decision but more of a

Continue reading →

Posted in Atlantic City, California, Donald Trump, Harrah's, Isle of Capri, Mississippi, Penn National, Tourism, Tropicana Entertainment, Trump Entertainment Resorts, Wall Street | 2 Comments

Quote of the Day

Posted on July 14, 2014 by David McKee

“We have all the ills of it but none of the benefits of it.” — Kentucky gubernatorial candidate Jack Conway (D), on the issue of casino gambling.

Posted in Economy, Election, Kentucky | Comments Off on Quote of the Day

Steve Wynn’s right-hand woman

Posted on July 10, 2014 by David McKee

Considered by many the logical successor to Steve Wynn, his envoy to Macao, Linda Chen, is more spoken of than seen. CNN offers us a rare glimpse of the woman who may well be calling the shots at Wynn Resorts if her current boss ever wearies of his day job.

* As someone who logs a lot of long flights, Chen might want to pack some reading matter, specifically UNLV’s Gaming Law Journal. In its latest issue, Prof. Jorge Godhino of the Continue reading →

Posted in Atlantic City, Harrah's, Macau, Mississippi, Penn National, Regulation, Reno, Steve Wynn, Tilman Fertitta, Transportation | 1 Comment

So long, Sullivan County

Posted on July 10, 2014 by David McKee

New York State’s Gaming Commission has picked the last two Andrew_Cuomomembers of the casino-siting committee and it’s pretty bad news for the Catskills region. Both of the finalists are cronies of Gov. Andrew Cuomo (D), as are the three already-seated members. Remember, it was Cuomo who juiced Orange County into the casino-eligible category. When everyone on the siting panel has ties to Cuomo, what’s the likelihood that Orange County is going to get left out when the goodies start being awarded? Not one casino license has been awarded but the process already stinks.

* The marriage of Resorts Atlantic City and PokerStars could be consummated by autumn. All depends on when Continue reading →

Posted in Atlantic City, Harrah's, Internet gambling, Isle of Capri, Kansas, Missouri, New York, Penn National, Pinnacle Entertainment, Politics, Regulation, Tropicana Entertainment | 1 Comment

Quote of the Day

Posted on July 10, 2014 by David McKee

poker-card“Its purpose is to prevent collusion among poker players. It is the same reason that we prohibited texting and other forms of communication that other players can’t understand or hear or see.” — South Dakota Gaming Commission Executive Director Larry Eliason on the state’s new, English-only rule for players at card games. “The reason we can [do it] is because gaming is a suspect activity. It is not subject to the same protection that other activities are,” explained commission attorney Mike Shaw.

Posted in Regulation, South Dakota | Comments Off on Quote of the Day

SLS: Charming the locals

Posted on July 9, 2014 by David McKee

Posted in Economy, Sam Nazarian, The Strip | Comments Off on SLS: Charming the locals

Too much amount of wrong; Big deal in Boston

Posted on July 9, 2014 by David McKee

Ownership at The Cosmopolitan of Las Vegas has apparently lost its appetite for charmingly off-kilter variety show Vegas Nocturne. The show is vegas_nocturne11not only rumored to be closing at the Cosmo but SLS Las Vegas has been mooted as its new home. However, rumors are in no short supply nominating other new venues. It would be nice if Vegas Nocturne got a second shot somewhere else. The alternative is likely to be more DJs, a species in no short supply on the Las Vegas Strip these days.

Last night, while down at Caesars Palace, I had another gander at The Quad and was nonplussed by how much it’s still Imperial Palace, but with different letters on it. Heck, all the pagoda roofs are still in place. QuadPresumably something will be done about this when it becomes Linq Hotel (although the October deadline for reopening doesn’t give Caesars a lot of time to revise the property — one fears further half-measures). Incidentally, I was amused to read that discarded names for the project included Rendezvous and H.Q. — they sure do love them some Qs at Caesars Entertainment.

* Boston and Mohegan Sun still haven’t inked their surrounding-community pact but some details are beginning to emerge. East Boston mohegan005residents would not only get hiring preference, Eastie will receive $18 million a year for neighborhood improvements. Another $45 million will go toward transportation upgrades. The money, while not as lavish as a deal from the Caesars era of the Suffolk Downs project, will be more concentrated upon East Boston. And if Mohegan profits exceed projections, the city may get more money, too.

Continue reading →

Posted in Architecture, Cosmopolitan, Entertainment, Harrah's, Massachusetts, Mohegan Sun, Sam Nazarian, Steve Wynn, The Strip | Comments Off on Too much amount of wrong; Big deal in Boston

For sale: One casino, slightly used

Posted on July 9, 2014 by David McKee

Having walked into a PR buzzsaw with its announced closure of the Showboat, in Atlantic City, owner Caesars Entertainment is trying Showboat_Atlantic_Cityto salve the wound. “We’re willing to sell if we receive a reasonable offer from a responsible buyer,” said company spokesman Gary Thompson. Of course, the X factors are who Caesars considers “responsible” and what price it deems “reasonable.” As it knows from its sales of the Claridge Hotel and Atlantic Club Hotel, you can’t get much more than pocket change for an Atlantic City casino these days. Nobody’s likely to come in and offer $50 million for the Showboat, so Caesars should probably trim its expectations accordingly.

Thompson added, “We’ve received some expressions of interest from a number of groups [on the heels of the closure notice] and are reviewing them.” Well, that’s good. One of them very well could be Hard Rock International, which can’t get what it deems an affordable price on Revel Casino Hotel but might deem Showboat more within what it’s willing to pay. With closure looming on Aug. 31, Caesars will be under pressure to get a deal done, chop chop.
 Continue reading →

Posted in Atlantic City, Hard Rock International, Harrah's, Macau, New York, Revel, Tourism, Transportation | 1 Comment