IGT on the block; AGA: You love gambling

HartLooking to goose its stock price, International Game Technology has put itself up for sale, according to Reuters. IGT has evidently been able to keep the process top-hush for two months, as it works with Morgan Stanley on constructing a deal. Predictably, IGT stock leapt 15% at the news. However, an emaciated IGT market capitalization (down 31%) could keep prospective buyers away, as might a protracted regulatory-approval process. Still, coming off a 2Q14 drop in profit of 66%, CEO Patti Hart could use some good news.

Private equity firms, meanwhile, could face a financing challenge stemming from a likely lengthy regulatory review, as banks funding a leveraged buyout would not be able to indefinitely hold funds aside for a deal,” quoth Reuters. Continue reading

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Indiana struggles, Ohio flourishes

Customers visited 8% in Indiana and spent 4% less. There were some salutary results. Pinnacle Entertainment‘s Ameristar East Chicago was up 2% and Boyd Gaming‘s Blue Chip saw revenues rise 3%. It was a big month for the racinos, with Hoosier Park reporting 15% higher grosses and Indiana Downs up a whopping 25%.

Other casinos took a whipping. In the north, Majestic Star II was down belterra20%, while casinos in the greater Cincinnati area continued to suffer. Belterra posted an 18.5% decline and low-grossing Rising Star Casino Resort was practically wiped out, 26% off last year’s pace. Penn National Gaming‘s Hollywood Lawrenceburg was hammered, too, down 27%. Even Casino Aztar saw a rare (albeit small) revenue declivity. Caesars Entertainment didn’t have a great month, what with Horseshoe Hammond off its feed (-5%) and some incremental Continue reading

Posted in Ameristar, Boyd Gaming, Dining, Harrah's, Macau, Maryland, MTR Gaming, Ohio, Penn National, Pinnacle Entertainment, Racinos, Regulation, Scientific Games, Shuffle Master, Tropicana Entertainment, Wall Street | Comments Off on Indiana struggles, Ohio flourishes

Quote of the Day

imgresGeronimo couldn’t go to court, but we can. Perhaps now we can finally receive the justice that’s been denied us for so long.” — Fort Sill Apache Tribal Chairman Jeff Haozous, on the tribe’s lawsuit against the National Indian Gaming Commission for closing its casino.

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

New York: Promises and excuses

Sterling-Forest-ResortNew York casino developers are enumerating the economic benefits for their prospective employees. Make no mistake, many of the jobs will be entry-level, minimum-wage employment. Saratoga Casino & Raceway is predicted a 47%/30% split between unskilled and skilled employees, with managerial jobs topping out at $180,000/year. In general, would-be casino owners predict a $30,000-$70,000. Alabama firm Greenetrack is pretty “george,” promising $20/hour salaries. Genting Group has upped the ante to $50,000/year for workers at its proposed Sterling Forest Resort (above). That’s been matched by Caesars Entertainment, which proposes to employee 3,000 souls, what’s more.

This all compares favorably to Continue reading

Posted in Cretins, Economy, Marketing, New York, North Las Vegas, Racinos, Singapore | 1 Comment

Massachusetts casinos in peril

That’s the conclusion of a Suffolk University/Boston Herald poll. It shows support for casinos having fallen to 37%, while opposition has risen to 47% of those surveyed. That’s a dramatic reversal from a February poll by the Herald Wynn Everettwhich showed casinos enjoying 51% support against 37% opposition. Asked “whether it makes sense” to open a casino in Everett or Revere, 55% answered “neither.” Polls should not influence the Supreme Judicial Court in its deliberations about whether a repeal question goes upon the November ballot or not. But they should give casino developers a scare. To the extent that casinos have been making the news lately, it has usually been Continue reading

Posted in Detroit, Election, Horseracing, Illinois, Indiana, Massachusetts, MGM Mirage, Mohegan Sun, Penn National, Steve Wynn | Comments Off on Massachusetts casinos in peril

Caesars charged with default; LVH on the block again

CAESARS-ENTERTAINMENT-LOGOIt was bound to happen sooner or later: Holders of second-lien bonds ($3.7 billion worth) have charged Caesars Entertainment with default. They cited the offloading of Caesars New Orleans and other high-value properties, as well as the removal of guarantees on Caesars Entertainment Operating Co.’s debt, undercutting the negotiating power of second-lien creditors. More than 50% of the second-lien holders are said to support the action. According to Bloomberg News, Caesars “said the asset transfers followed a rigorous, independent process designed to provide liquidity crucial to its business.”

lovemanFaced with an involuntary bankruptcy filing or even foreclosure, beleaguered CEO Gary Loveman wasn’t taking it lying down. “We will not allow our company, our employees and the communities in which we operate to be held hostage by a minority of holders whose interests are contrary to the long-term health of the company,” he ranted in an SEC filing.

Five investment firms are said to Continue reading

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Toppling dominoes in New York; Secret plan in St. Louis

Just like that, the E23 casino project near Albany is toast. But David Flaum won’t be asking for his $1 million back: He and partner Global FlaumGaming Solutions have their eyes on Rensselaer now. GGS blamed the demise of E23 on “significant land development constraints that limit our ability to deliver a destination gaming resort.” (Only 17 acres were developable.) Flaum and his partners are now proposing a casino of unspecified size at DeLaet’s Landing, a mixed-use development where Penn National Gaming and Cordish Gaming recently declined to pursue their own joint venture.

Rensselaer Mayor Dan Dwyer had hinted that another casino developer might be in waiting and he was as good as his word. Now the city council must ratify the Flaum/GGS proposal, which means that Continue reading

Posted in Cordish Co., Harrah's, Maryland, Missouri, New York, Penn National, Pinnacle Entertainment, Racinos, Tribal, Tropicana Entertainment | Comments Off on Toppling dominoes in New York; Secret plan in St. Louis

A gentleman and a scholar

There are some blog entries one would rather not write. This is one of those occasions. Gentlemanly attorney Robert Faiss, who literally wrote the book on casino regulation in Nevada, died yesterday at age 79. In in an irony he would surely appreciate, Bob left this vale of tears in Boulder City, the one place in Nevada where gaming is prohibited.

Bob FaissBob was always a good interview and was an early supporter of my work, so I am doubly saddened by his death, even if our paths diverged in recent years. Like me, he was a Midwesterner transplanted to Las Vegas, where (unlike me) he flourished as a student (and, improbably enough, a cheerleader), a journalist and a political advisor to Gov. Grant Sawyer (“The best man I ever knew”) and aide to LBJ himself. In his law practice, he represented both the American Gaming Association and the Nevada Resort Association — rarefied air, to be sure, but Bob remained a down-to-earth person.

“Bob was always superbly prepared, very precise, very persuasive,” said former Gov. Richard Bryan (who shares many of Faiss’ positive attributes). “I will remember Bob as someone who displayed the most extraordinary sense of humility of virtually anyone I’ve known in this or any industry,” added MGM Resorts International CEO James Murren. Continue reading

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May challenging for Iowa, disastrous for Illinois

At present, the Iowa Racing & Gaming Commission is mulling whether to put a casino in relatively isolated (see video) Jefferson. While HET Council Bluffsthey’re weighing that Wild Rose Entertainment project, here’s something else to ponder: The latest set of revenue numbers out of the Hawkeye State. It dropped 2%, with Penn Sioux City really phoning it in, down 15%. Horseshoe Casino slipped 7% but recently improved Harrah’s Council Bluffs rose 19%. Pinnacle Entertainment had a modestly better month (up 1%) at Ameristar Council Bluffs. Although it slid a percentage point, Prairie Meadows racetrack was the top grosser of May (which had one more weekend day this year), checking in at $16 million.

Positive and negative results at various Isle of Capri Casinos-branded properties canceled Continue reading

Posted in Ameristar, Boyd Gaming, Current, Economy, Harrah's, Illinois, Iowa, Isle of Capri, MGM Mirage, Neil Bluhm, Penn National, Pinnacle Entertainment, Regulation, Slot routes | Comments Off on May challenging for Iowa, disastrous for Illinois

Adelson winning one-sided war

Sheldon pashaIf it appears that Sheldon Adelson is rolling to victory in his jihad against Internet gambling, it’s primarily because his opposition has gone belly-up. First, MGM Resorts International CEO Jim Murren called the battle “a fight we cannot win,” then American Gaming Association President Geoff Freeman waved the white flag. Now Caesars Entertainment is shopping a bill around Capitol Hill whereby it would surrender its Internet casinos in return for being allowed to keep Internet poker. That’s weak.

Meanwhile, Adelson continues ramping up Continue reading

Posted in California, Florida, Geoff Freeman, Harrah's, Indiana, International, Internet gambling, MGM Mirage, Politics, Sheldon Adelson, South Carolina, Texas, Tribal | Comments Off on Adelson winning one-sided war

Quote of the Day

slot machine“Not only are they getting a lot of knowledge that’s not available anywhere else, they’re getting patent work done for free; they’re getting mathematical analysis done for free—they are getting to a point which most inventors never get to. And they’re getting there in a really fast-paced environment. We can kick doors open.” — UNLV Gaming Innovation Program director Mark Yoseloff on the revenue-sharing relationship between the university and the slot companies who purchase games invented there, like Domino Dragon. 

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May in Macao; Brave new slots

Galaxy CotaiGiven “softer than expected” numbers out of Macao, expect Wall Street analysts to dial down their expectations for the balance of the year. Gaming revenues rose ‘only’ 9% instead of the expected double digits and there was a surprise leader in VIP table share: Galaxy Entertainment, although Stanley Ho‘s casinos played luckier, holding 28% of VIP play to Galaxy’s 26%. In mass-market play, Las Vegas Sands was far and away the leader, with 32% of market share. In overall market share, Sands eked out a .1% victory over Sociedade de Jogos de Macau.

Hanging in their pretty impressively was MGM Grand Paradise, whose market-share numbers almost matched those of Continue reading

Posted in Bally Technologies, Boulder Strip, Macau, Melco Crown Entertainment, MGM Mirage, Regulation, Sheldon Adelson, Stanley Ho, Station Casinos, Steve Wynn, Technology, Wall Street | Comments Off on May in Macao; Brave new slots

Abboud: Sinners repent!; Loveman’s orphan

AbboudSounding like anti-casino zealot, Las Vegas Sands Senior Vice President of Government Relations & Community Development Andy Abboud had a dire message for Pennsylvania lawmakers: “Gambling was never supposed to be everywhere. It’s not an entitlement; it’s a vice. It needs to be doled out to the public in a very careful way.” Later, he tipped his hand toward the reason for Sands (and Sheldon Adelson‘s) adamant opposition. Said Abboud, “the [profit] modeling never came back as anything other than marginal. [It’s a] small opportunity, but with a tremendous liability.”

“To us, it is just such a fundamentally stupid idea to go down this path,” added Abboud, raising the far-fetched specter of class-action suits that would ‘doom’ the casino industry.
Continue reading

Posted in Cannery Casino Resorts, Economy, Election, Harrah's, Harry Reid, Japan, Neil Bluhm, Pennsylvania, Politics, Sheldon Adelson | Comments Off on Abboud: Sinners repent!; Loveman’s orphan

Tilting the odds; The week of bad taste

Slot playerSlot machines, we’re constantly being told, just aren’t on with the younger generation. Weaned on video games, millennials want something more skill-based. Insert Coins owner Christopher LaPorte aims to give them what they want. For the unfamiliar, Insert Coins is a nightclub in Downtown themed around video games. Featuring bottle service and premium booths, it is reliable flypaper for douchebags.

LaPorte is proposing that Nevada make it legal to network popular video games with slot platforms, enabling younger players to get the best of both worlds. I see nothing wrong with this except that casino executives are unlikely to be thrilled with it. Just what they fear: Continue reading

Posted in Downtown, Election, Marketing, Regulation, Sam Nazarian, Technology | 2 Comments

Quote of the Day

“The debate is heating up just as state Comptroller Thomas DiNapoli says most gamblers at the new casinos will be area residents, not out-of-state tourists, and a large resort casino in Mississippi closes as gambling revenues fall.” — Albany Business Review reporter Michael DeMasi on the state of affairs in New York State.

Posted in Economy, Harrah's, Mississippi, New York | 1 Comment

GOP candidates back casino-repeal question

Top-of-the ticket Republican candidates for governor in Massachusetts have lined up behind the proposed repeal of the state’s casino law. Charlie Baker is only in favor of putting it on the ballot but Tea Party candidate Mark Fisher would go the whole way and repeal gambling in Massachusetts, if it were up to him. ““I’m still chewing on that. But I do think it belongs before the voters,” Baker told a reporter.

Fisher’s stance is surprising in the respect that Continue reading

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Hot air in Iowa, strong talk in Singapore

Despite the decisive, if not vehement rejection of his casino bid, Cedar Rapids Mayor Ron Corbett wants another bite of the apple. Why? Because it would a smoke-free casino, which Gov. Terry Branstad (R) supports. It’s Corbett who’s blowing smoke here, sticking to discredited figures of the havoc a Cedar Rapids casino would have on its immediate competitors.

Who was that masked man anyway? If you were sunbathing at Marina Bay Sands last week, you might have had a surprise sighting of Continue reading

Posted in California, Environment, Genting, Iowa, Japan, Sheldon Adelson, Singapore, Station Casinos, Tribal | Comments Off on Hot air in Iowa, strong talk in Singapore

Mohegan Sun liberated; Low blows struck in New York

mthe-shops-at-mohegan-sunCome year’s end, Mohegan Sun will be free of its management agreement with Trading Cove Associates. Liberty comes at a dear price: $900 million, or 5% of 15 years’ revenue. “If not for the Great Recession’s effect on Mohegan Sun’s revenues – growing competition in the Northeast is another culprit – the payments would likely have cleared the billion-dollar mark,” reports The Day. The Mohegans could have been rid of Trading Cove 11 years ago — at the price of 40% of gaming net revenues. As it is, tribal council chairman Kevin Brown doesn’t care to revisit the past: “I don’t feel it appropriate to comment on a decision made nearly 15 years ago,” he told a reporter.

Former tribal chairman Roland Harris, architect of the relinquishment agreement stood by his 1999 actions and said he’d Continue reading

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Casinos battle an ebb tide; Loveman rebuffed

HarrahsTunicaExteriorToday marks the date that the casino industry officially became too large for the country to support, symbolized by the closing of Harrah’s Tunica. “There’s gambling everywhere. If you just want to gamble, you don’t have to go very far to do it.” So said Mississippi Gaming Commission Executive Director Allen Godfrey, perhaps with a touch of rue. In five years, April revenues in Tunica have fallen 29%.

At least Caesars Entertainment has been able to cushion the immediate blow by placing 350 employees at other properties, although that still leaves 900 at loose ends. For instance, 66-year-old worker Jimmy Adams offered this heartbreaking plaint:  Continue reading

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Case Bets for a Monday morning

bazaar_shops1Because Vegas is starved for retail along the Strip (ha!), Caesars Entertainment has been beavering away busily on Grand Bazaar Shops, in front of Bally’s Las Vegas. Vital Vegas has been sussing out the progress of the mall and it’s not as bad-looking as feared. No, not at all. It’s worse. Decide for yourself.

* If you’re of the persuasion that the Las Vegas Strip has become hopelessly douchey, you’re in good company. Penn Jillette and Anthony Bourdain share your feelings. And, just in time to prove Continue reading

Posted in Architecture, Atlantic City, Culinary Union, Derek Stevens, Entertainment, Foxwoods, Harrah's, Internet gambling, Mohegan Sun, Revel, The Strip | Comments Off on Case Bets for a Monday morning