Revel to close, barring a miracle; Gaughan memorialized

Posted on June 19, 2014 by David McKee

revel-get-it-all-back-600That’s the message coming from top Revel Resort brass, who sent a letter to casino employees cautioning them that — unless the property can be sold by Aug. 18 — they all may be out of jobs: “If Revel is unable to complete such a sale promptly, Revel expects to close its entire facility.” That would make Revel, next to Fontainebleau, the biggest megaflop in casino history.

Revel’s owners, who obtained in a debt-for-equity swap, appear to be trying to shop it around for $300 million — at a time when Atlantic City casinos are going for Continue reading →

Posted in Atlantic City, Downtown, Economy, Fontainebleau, Hard Rock International, Harrah's, history, Massachusetts, Tribal | 1 Comment

Mohegan Sun: It’s us or nobody; Tunica blues

Posted on June 19, 2014 by David McKee

Eastern Massachusetts voters would rather have a Mohegan Sun casino than a Wynn Resorts one. So claims a poll paid for by Mohegan Sun … so draw your own conclusions. It also shows casino-law repeal only getting 35% of the vote. But “[if] voters get their second choice for a casino in the Boston area, they will likely be much more open to repealing the law altogether,” warns pollster Chris Anderson, of Anderson Robbins Research. The whole thing sounds like some weird form of Mohegan Sun blackmail to get its Suffolk Downs racino approved. It also relies on a pretty small sampling — 412 voters — so take the results cum grano salis. Continue reading →

Posted in Delaware, Economy, Election, Harrah's, Massachusetts, Mississippi, Mohegan Sun, Politics, Steve Wynn, Taxes | Comments Off on Mohegan Sun: It’s us or nobody; Tunica blues

Bernhard: Time to get out; Kabuki theater in Japan

Posted on June 19, 2014 by David McKee

BernhardAfter 13 years chairing the Nevada Gaming Commission, it’s quitting time for Pete Bernhard, who’s leaving 10 months before his term expires.
Wasting no time, Gov. Brian Sandoval named Dr. Tony Alamo Jr. to fill Bernhard’s chair and Pat Mulroy to serve out the 10-month vacancy created by Bernhard’s departure. That should be interesting. As tsarina of the Southern Nevada Water Authority for 11 years, Mulroy made many enemies with her take-no-prisoners style.

Ironically, it was Bernhard who replaced Sandoval when the latter stepped down from the NGC and ran for Nevada attorney general. One can’t blame Bernhard for leaving. Continue reading →

Posted in Atlantic City, Boyd Gaming, Harrah's, Internet gambling, Japan, Politics, Regulation, Station Casinos | Comments Off on Bernhard: Time to get out; Kabuki theater in Japan

Quote of the Day

Posted on June 18, 2014 by David McKee

“The good news is that the southern Nevada economy is improving, and at an accelerating rate. The great news is that the growth is widespread across southern Nevada’s industries.” — report from the UNLV Center for Business & Economic Research, predicting a return to pre-recession employment levels by 2016.

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Icebreak in Japan; Discouragement in New York

Posted on June 18, 2014 by David McKee

Shinzo AbeLeaving scant room for error, Japan‘s parliament is scheduled to begin debating casino legalization today. “We have to remind ourselves that this is just the start, and until we see gambling become legal, we must keep up our efforts,” said lobbyist Toru Mihara. The first stage of the process is to legalize casinos by the end of the fall emergency session, the second to pass an accompanying regulatory framework. Prime Minister Shinzo Abe‘s goal is not modest: to double Japanese tourism by 2020. Casino gambling plays an important role in that scenario, “the main feature of my growth strategy,” as he said during a recent Singapore junket.

(Abe’s government has recently hedged that bet. “Integrated resorts are expected to contribute to bolstering tourism, regional activity and industry, but they also require consideration of policy measures to prevent crime, maintain safety, ensure healthy development of youngsters and prevent addiction” reads a government document obtained by Reuters.) Continue reading →

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Getting it up in Philadelphia

Posted on June 18, 2014 by David McKee

SkyspireJoseph “Tomato King” Procacci‘s proposed LoSo Entertainment Center, would-be home to Casino Revolution (2,400 slots, 105 tables) has “initiated discussions” with U.S. Thrill Rides about building a 615-foot observation tower as part of the project. That’d be 10 feet taller than the Seattle Space Needle. Aside from the incongruity of the idea, U.S. Thrill Rides has no track record of actually erecting these things. It proposed one for the Tropicana Las Vegas but that turned out to be a one-day story.

“PHL Local‘s officers believe that adding the Skyspire to LoSo and its proposed casino would arguably make their site the city of Philadelphia‘s most popular visitor attraction.” Arguably not. Philly is home to a little thing called the Liberty Bell, after all. Continue reading →

Posted in Architecture, Atlantic City, Harrah's, Maryland, Massachusetts, Pennsylvania, Politics, Tomato King Procacci, Tourism | 1 Comment

Atlantic City courts the LGBT dollar; Indiana casinos court anybody’s dollar

Posted on June 17, 2014 by David McKee

caesars-atlantic-cityFormerly a gay getaway, Atlantic City lost its LGBT-friendly image when the casinos came in 1978, or so the history goes. “When the casinos came, people were quick to bulldoze whatever they had to sell for millions, and we lost all of that. But it’s nice to have it coming back now,” says Mayor Don Guardian Ironically, now Guardian and other civic boosters are going after the gay dollar to get Atlantic City out of its doldrums. Currently it’s viewed as one of the more gay-hostile tourist destinations on the East Coast. Guardian hopes to reverse that with a bevy of gay-friendly actions, including raising the rainbow flag over a beach near Bally’s Wild Wild West (inarguably the campiest-themed casino in town).

Since gambling is a relatively low priority-activity with Atlantic City’s existing gay clientele, the city will emphasize Continue reading →

Posted in Atlantic City, Boyd Gaming, Harrah's, Illinois, Kansas, Marketing, Ohio, Penn National, Pinnacle Entertainment, Racinos, Sam Nazarian, Slot routes, Taxes, The Strip, Tribal | Comments Off on Atlantic City courts the LGBT dollar; Indiana casinos court anybody’s dollar

N.Y.: Another one bites the dust

Posted on June 17, 2014 by David McKee

Foxwoods GrossingersOrange County in New York State could get a casino by default, as Catskills-area projects continue to fall by the wayside. The latest one to drop out is Foxwood Resort Casino‘s joint-venture bid to redevelop the old Grossinger’s Hotel site. Foxwoods says the Orange County proposals (including one from Caesars Entertainment) caused funding to dry up for Foxwoods: “We always approached this project by assuming that there would be two casinos in the Catskills, but what we didn’t plan for, and cannot compete with, is a casino project in Orange County. Such a location would siphon off the business and guests we projected would come to Grossingers.”

Already Len Wolman‘s rival Trading Cove Associates abandoned a Sullivan County effort. The Nevele project in Ulster County is still in the running (alth0ugh it is issuing a Nevele-or-Orange ultimatum to the state), as are two Continue reading →

Posted in Foxwoods, Genting, Harrah's, Massachusetts, MGM Mirage, Mohegan Sun, New York, Tribal | Comments Off on N.Y.: Another one bites the dust

Hot pursuit for IGT; Players leave good deal on table

Posted on June 17, 2014 by David McKee

It’s a feeding frenzy for International Game Technology. Among
those who were quick to pounce on rumors of a sale were lottery king Gtech, Caesars Entertainment co-owner Apollo Management, Ron web1_WEB-IGT-LOGOPerelman-controlled MacAndrews & Forbes Inc. and Carlyle Group, with the former going so far as to say it was actually in negotiations. A MacAndrews purchase would tie together IGT, Scientific Games and the former WMS Industries, giving Perelman a formidable hold on the manufacturing sector. Since Gtech’s specialty is lotteries, IGT would greatly diversify its portfolio. Spendthrift Apollo probably wouldn’t know what to do with IGT except cripple it with debt.

IGT, for its part, said little more than that it was evaluating its options. It tried to play down all the excitement as just business as usual. Some, however, interpreted the “broad range of strategic options” explorations as tantamount to hanging a “for sale” sign on the company. Noting management’s recent struggles, Credit Suisse analyst Joel Simkins wrote, “With that in mind, we understand why a fatigued management team and board may look for an exit in light of a more arduous turnaround.” Continue reading →

Posted in Atlantic City, California, Cosmopolitan, Harrah's, IGT, Internet gambling, Scientific Games, Tilman Fertitta, Tribal, Wall Street | Comments Off on Hot pursuit for IGT; Players leave good deal on table

Quote of the Day

Posted on June 17, 2014 by David McKee

Iowa seal“It amazes me that they keep pushing, but you’re always going to have investors that want more casinos and the government people will say hurray, hurray more tax money. They’re going to drain the local economy.” — UNLV professor of public policy William Thompson, on the Iowa Racing & Gaming Commission‘s approval of Wild Rose Jefferson casino. Confronted with evidence of 7% cannibalization of Prairie Meadows Racetrack, IRGC Chairman Jeff Lamberti airily proclaimed the racino “will be just fine.”

Posted in Economy, Iowa, Regulation | Comments Off on Quote of the Day

Japan: Promises, promises; Double-standard in Iowa

Posted on June 13, 2014 by David McKee

Democratic Party lawmaker Yosuke Kondo has casino-legalization in Japan legislation wrapped around his pinkie like a piece of string. Prime
kondo_1Minister Shinzo Abe may favor enabling legislation but right now Kondo holds the trump card. The bill is in a committee of which he is one of the two senior directors. As such, he can thwart debate, which hasn’t started yet. For the moment, Kondo is holding it hostage to demands. He wants various government officials, including the chief cabinet secretary, made available for cross-examination on the casino matter.

And the longer Kondo digs in, the less likely it is that casinos will be approved this year. He says his goal is for the bill to receive adequate discussion, which is pretty rich when he’s the one Continue reading →

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Quote of the Day

Posted on June 13, 2014 by David McKee

“We’re probably not getting elected again, any one of us.” — East Greenbush Councilwoman Sue Mangold, after voting to endorse a Saratoga Casino & Gaming/Churchill Downs casino project for the New York town.

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Restarting the clock in Massachusetts; Atlantic City, international destination?

Posted on June 13, 2014 by David McKee

It looks like it’s back to Square One for Massachusetts‘ southeastern region. No host community agreements have been executed. No referendums have been held (with a mid-July deadline looming). And, although the cutoff date has passed, new candidates want to get into the running for a Region C casino.

massachusetts-quarterFaced with this stalemate — and the potential failure to put any casino in the region — the Massachusetts Gaming Commission is contemplating drastic action. For one, it would encourage new bidders. For another, it would revive the application deadline and extend it to March 2015. “Only gambling operators that met last year’s deadline for initial applications or were rejected in one of the state’s other two casino regions can seek the southeast license at this point,” explains The Associated Press.

That would be music to the ears of the Continue reading →

Posted in Atlantic City, Foxwoods, Harrah's, International, Massachusetts, Ohio, Regulation, Tourism, Transportation, Tribal | 1 Comment

Salvation for PokerStars?; Bonanza in Springfield

Posted on June 13, 2014 by David McKee

Despite no longer having any beef with the federal government, PokerStars remains behind the 8-ball in the U.S. of A. Regulators in New Internet casinoJersey frowned on its attempt to affiliate with Atlantic City casinos and it’s banned from Nevada under a five-year ‘bad actor’ clause.  But absolution could be at hand.

Canadian firm and gaming-equipment supplier Amaya Gaming Group has agreed to buy PokerStars for the tidy sum of $4.9 billion. The consortium of banks and funds underwriting the deal includes outgoing Cosmopolitan of Las Vegas owner Deutsche Bank and incoming Cosmo owner Blackstone Group. Small world, huh?

Reportedly, under the terms of the deal — which values PokerStars at Continue reading →

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Atlantic City online: The god that failed?

Posted on June 12, 2014 by David McKee

May brought bad news from the Boardwalk, where online gambling revenue fell to $10.5 million. (It had been $11.4 million the month before, in itself a decline.) Traditional casinos were off 3% on a same-store basis — i.e., subtracting the defunct Atlantic Club from the comparisons. Slot revenue for the city was up despite lower handle. Poor hold translated into a 24% decline in table revenue, however.

Golden Nugget ACBorgata beat the odds, with higher slot handle and table drop. Overall, it was up 5%. Other gainers were the Golden Nugget, up an astonishing 70% for $16 million. Revel was up, too, but not nearly as much as it needed to be: 4%, for $12 million. Much more robust were the numbers at Tropicana Atlantic City, up 21% for $25 million. All the Caesars Entertainment properties posted modest declines (is Continue reading →

Posted in Boyd Gaming, Harrah's, Internet gambling, Morgans Hotel Group, Revel, Tilman Fertitta, Tropicana Entertainment | 2 Comments

Flip-floppery in Iowa; Affleck banned again?

Posted on June 12, 2014 by David McKee

Argosy BelleBarring an emergency injunction, Belle of Sioux City is doomed to shut down on July 1, a federal bankruptcy judge having been deaf to Penn National Gaming‘s pleas. Penn is arguing that the Iowa Racing & Gaming Commission overstepped its authority in both closing down the riverboat and in awarding the license elsewhere. If the closure goes through, even temporarily, Penn argues it will be a death sentence for the casino.

In state court, would-be litigants Ho-Chunk Inc. (unsuccessful suitors for the Sioux City license) were rebuffed in their attempt to join Continue reading →

Posted in Detroit, Dining, Downtown, Economy, Harrah's, Iowa, Penn National, Regulation, Steve Wynn, Technology, Warner Gaming | Comments Off on Flip-floppery in Iowa; Affleck banned again?

Adelson: Another one bites the dust

Posted on June 12, 2014 by David McKee

If Sheldon Adelson wants to protect America from underage gambling, bethlehemhe might start at his Sands Bethlehem casino. The casino has racked up $305,000 in fines in five years. Six incidents this year have incited the latest fine: $85,000. Casino staff have a problem keeping underage players out but they seem to be good at catching them once they’ve begun playing (by which point it’s too late). Only Mt. Airy Casino has a worse track record in this respect. By contrast, SugarHouse in Philadelphia only racked up 70 grand in fines.

“In the third and fourth quarter last year, when most of these incidents occurred, we challenged 424,000 persons and turned away nearly 4,800. We do have a robust program. But human beings being human beings, mistakes are made,” said Las Vegas Sands attorney Fred Kraus. Continue reading →

Posted in Atlantic City, Boyd Gaming, Detroit, Economy, Election, International, Internet gambling, Neil Bluhm, Pennsylvania, Politics, Regulation, Sheldon Adelson, Tribal | Comments Off on Adelson: Another one bites the dust

Making MGM Springfield happen; Dinner with Isaacs

Posted on June 12, 2014 by David McKee

MGM Springfield is shaping up as the most architecturally interesting casino project not only in Massachusetts but the nation as a whole, a charming mix of the new and the old. The company had been planning a few nods to Springfield‘s past, preserving the front section of the local armory (the Massachusetts Gaming Commission would like to see the whole building saved). In a similar compromise, MGM intended to keep the facade of the United Electric Co. building, but has been persuaded to recreate its beautifully designed lobby elsewhere on the property. (Currently it’s where the elevator bay would be.) In a more incongruous development, Continue reading →

Posted in Architecture, Detroit, Dubai, history, International, Massachusetts, MGM Mirage, Regulation, Scientific Games, Shuffle Master, Wall Street | Comments Off on Making MGM Springfield happen; Dinner with Isaacs

Adelson: Who asked you?

Posted on June 11, 2014 by David McKee

Sheldon ASheldon Adelson is fast becoming the #1 buttinski in American politics. He’s not from Florida and doesn’t do business there
but that hasn’t stopped him from meddling the state’s electoral process. He’s been seeding an astroturf movement to defeat the use of medicinal marijuana. A constitutional amendment to approve medical pot is on the November ballot and Nanny Sheldon wants to see it go down. Of the Drug Free Florida Committee‘s $2.7 million war chest, $2.5 million comes from the CEO of Las Vegas Sands. Wire services report that “[Sarah] Bascom’s group maintains that the medical marijuana measure has a loophole that will allow people to obtain marijuana for nearly any reason,” even though the Florida Supreme Court has rejected that as a pig in a poke. No doubt we will soon be hearing from Sheldon about marijuana being a “gateway drug” and producing a generation of addicts. Since he’s married to an drug-abuse specialist, Adelson ought to know better. And, as a former addict himself (albeit of the legitimate, prescription kind), Sheldon might want to look to the beam in his eye rather than the mote in Florida’s. Either way, he should stick to doing what he does best — develop high-class casino resorts — and stop telling Americans how to live their lives.

Atlantic City’s budget just sprang another leak. We don’t know how the city is going to make ends meet, considering all the property tax give-backs that the courts are handing down. The latest payday was for Continue reading →

Posted in Atlantic City, Boyd Gaming, Election, Florida, Harrah's, Massachusetts, MGM Mirage, Regulation, Sheldon Adelson, Tropicana Entertainment, Trump Entertainment Resorts | Comments Off on Adelson: Who asked you?

Quote of the Day

Posted on June 11, 2014 by David McKee

Sands Macao“Any hint of bad news from Macau requires the use of defibrillators in casino company boardrooms and investment houses.” — Howard Stutz, on the prospect of a slowdown in Macao’s casino revenues this year.

Posted in Economy, Macau, Wall Street | Comments Off on Quote of the Day