Fertitta breaks ranks; Roll them bones

Posted on May 19, 2014 by David McKee

fertitta_webGolden Nugget owner Tilman Fertitta, 56, may be a Baby Boomer himself, but he’s not satisfied with his Boomer-centric clientele. As he told the Southern Gaming Summit, “One of my scariest things that is young people do not play slot machines.” He sees them drawn to mobile gaming instead. “Those people are playing social games right now. They’re not really seeing casinos as appealing,” rejoined Credit Suisse analyst Joel Simkins.

Not to put too fine a point on it, Fertitta sees his core customer demographic dying out. What to do? Part of the problem is that younger slot players don’t want to ‘reset to zero’ every time they sit down at a slot game. They want some component that tracks and rewards their cumulative play.  Continue reading →

Posted in Downtown, Geoff Freeman, Massachusetts, Sheldon Adelson, Steve Wynn, Technology, Tilman Fertitta | 2 Comments

Quote of the Day

Posted on May 19, 2014 by David McKee

“That’s up to my tribe as to what they choose to do. There are so many other ways to do economic development rather than just a casino. Now, don’t get me wrong, a casino is the fastest, most-efficient, money-making way.” — Mishewal Wappo Tribe of Alexander Valley Chairman Scott Gabaldon, on opposition by local winemakers to the possibility of a casino, should his band achieve federal recognition.

Posted in California, Environment, Tourism, Tribal | Comments Off on Quote of the Day

Cuomo’s gamble and other Case Bets

Posted on May 19, 2014 by David McKee

Andrew_CuomoNew York Gov. Andrew Cuomo (D, right) promised constituents that casino gambling would “fundamentally change the trajectory of the Catskills.” But will it? Or will his administration cut the promised economic recovery off at the knees by favoring one of five Orange County proposals? Empire Resorts‘ Charles Degliomini protested, “When you look at the kind of bright, shining city Orange County is versus what Sullivan County is, clearly the need is in Sullivan County.”

Since Empire Resorts is a stalking horse of Genting Americas, which covets a location closer to New York City, we might Continue reading →

Posted in Cannery Casino Resorts, Economy, Foxwoods, Genting, Harrah's, Iowa, Massachusetts, New York, Pennsylvania | Comments Off on Cuomo’s gamble and other Case Bets

Cosmo: Now comes the hard part

Posted on May 19, 2014 by David McKee

714_Cosmopolitan_John_Unwin_061_RTCosmopolitan of Las Vegas CEO John Unwin is crowing in triumph over Blackstone Real Estate Partners VII‘s staggeringly lavish purchase of the megaresort over which he presides. “This marks the beginning of the next chapter for The Cosmopolitan of Las Vegas … It is a testament to our unique approach to the Las Vegas market.”

Revisionist history was also running amuck at owner Deutsche Bank, which claimed to have made “a small profit” on the $3.9 billion Godzilla, which it sold for $1.7 billion. The property has lost $440 million operationally, too. J.P. Morgan analyst Joseph Greff‘s statement that “We also think this announcement speaks to a historically smart real estate buyer making a statement on the length of the Las Vegas Strip recovery, also a positive,” simply beggars credibility. But we agree with UBS gaming analyst Srihari Rajagopalan that Continue reading →

Posted in Boyd Gaming, Cosmopolitan, Economy, Harrah's, James Packer, Japan, Melco Crown Entertainment, MGM Mirage, Penn National, Politics, Regulation, Sheldon Adelson, Steve Wynn, Wall Street | 1 Comment

Shooting at Palms; Palace coup at Bally

Posted on May 16, 2014 by David McKee

palms-picLas Vegas‘ gradual devolution took another step last night when a man was mortally wounded in a Fantasy Tower suite at the Palms. Actually, we’re fortunate there weren’t more fatalities, as 40 to 50 partygoers were on the scene. Despite the presence of so many potential witnesses, Las Vegas Metro doesn’t have a suspect and is still investigating. Remember, you’re not dressed for a party in Vegas unless you’re packing heat.

In news that broke late yesterday, Bally Technologies has ousted CEO Ramesh Srinivasan, effective May 23, in favor of once and future CEO Richard Haddrill. No reason was given for the change, which comes at a time when Bally was doing particularly well, making the move all the more surprising. Haddrill will retain his seat on the board while Srinivasan will relinquish his. Srinivasan was seen as a protege of Haddrill and the two had a business relationship that went back many years.

(The press release contained a paragraph of Continue reading →

Posted in Bally Technologies, Palms | Comments Off on Shooting at Palms; Palace coup at Bally

Shamelessness at Suffolk Downs

Posted on May 15, 2014 by David McKee

suffolk downsIn a ludicrous reversal, the owners of Suffolk Downs offered to end horseracing at the track if the Massachusetts Gaming Commission would, pretty please with cream on top, give them a casino license. Up to that point, Suffolk Downs has been threatening to shut down racing if it doesn’t get licensed and made the continued splendor of the sport of kings central to its pitch. “We would not let racing or any other activity on the remainder of Suffolk Downs’ land get in the way of a successful gaming establishment . . . in Revere,” wrote track attorney Charles Baker. “Baker’s comments to state regulators appeared to undercut the track’s longstanding argument that building a casino at the track was the only way to stave off its closure,” reported the Boston Globe.

It would appear that Massachusetts Gaming Commisssion attorneys ferreted out a clause in the agreement between Suffolk Downs and Mohegan Sun which would enable Continue reading →

Posted in Atlantic City, Boyd Gaming, California, Cretins, Horseracing, Massachusetts, MGM Mirage, Mohegan Sun, Regulation, Vdara Death Ray, World Series of Poker | Comments Off on Shamelessness at Suffolk Downs

Japan fever

Posted on May 15, 2014 by David McKee

japan_flag_01-300x300As the window slowly closes on casino legalization during the current session of the Japanese Diet, a fever seems to be overtaking the casino industry. Normally reasonable people are suddenly hyper-exaggerating their projections for gambling in the Land of the Rising Sun. Bloomberg News quotes MGM Resorts International CEO Jim Murren to the effect that MGM could make more money in Japan than in Macao. That’s difficult to envisage, but fair enough. However, gaming-analyst projections of a $10 million/year Japanese gaming market — the previous consensus — have gone out the window and giddily sky-high. CLSA Ltd. is projecting $40 million by 2025.

Murren’s not prepared to wait that long, saying, “In Japan, the market has potential of being $20 to $40 billion and there would be far fewer integrated resorts than in Macau.” Really? So soon? Former Japan Tourism Agency boss Hiroshi Mizohata predicts that visitation, sparked by casinos, will triple by 2030. Continue reading →

Posted in Harrah's, Japan, Louisiana, MGM Mirage, Pinnacle Entertainment, Rhode Island, Sheldon Adelson, Steve Wynn, Tribal, Wall Street | Comments Off on Japan fever

Cosmo sold!

Posted on May 15, 2014 by David McKee

Cosmo askewDeutsche Bank had to take a heckuva haircut but it finally rid itself of The Cosmopolitan Las Vegas for $1.7 billion and change. The buyer is private equity fund Blackstone Group, which paid a staggering 16.7X cash flow for this white elephant. “As part of our Strategy 2015+, the bank is committed to reducing its non-core legacy positions in a capital efficient manner which benefits shareholders,” said Deutsche Bank executive Pius Sprenger. A minority investor in Caesars Entertainment, Blackstone has never waded waist-deep into gambling like this. The immediate reaction from JP Morgan analyst Joseph Greff was “We … think this announcement speaks to a historically smart real estate buyer making a statement on the length of the LV Strip recovery, also a

Continue reading →

Posted in Cosmopolitan, Foxwoods, Massachusetts, Regulation, The Strip, Wall Street | 3 Comments

Full House’s busted flush; GLPI’s big play

Posted on May 14, 2014 by David McKee

Full HouseIn further evidence of saturation in the gaming industry (if more were needed), Full House Resorts wants to be released from a commitment to buy Fitzgerald’s Casino, in Tunica. Seems that Full House can’t find banks who’ll underwrite the deal. Caesars Entertainment‘s recent decision to close Harrah’s Tunica cannot have helped Full House salt away the sale. Like everyone in the industry, Full House cited the “bad weather” excuse to explain away a 60% drop in cash flow during 1Q14. If Fitzgerald’s lets Full House CEO Andre Hilliou off the hook, the latter can concentrate on finishing an $18 million hotel for its Tunica-area property, Silver Slipper Casino. Considering that the Fitzgerald’s purchase was made in March and terminated in May, one wonders about how thoroughly Full House thought this through.

Fortunately for the industry, Full House’s face-plant was overshadowed by a big purchase in Pennsylvania. Removing a major competitor from the game board, Continue reading →

Posted in Cannery Casino Resorts, Dan Gilbert, Detroit, Harrah's, LVCVA, Marketing, MGM Mirage, Mississippi, Penn National, Racinos, Wall Street | Comments Off on Full House’s busted flush; GLPI’s big play

Good news from Atlantic City; F-blew: This is the end

Posted on May 14, 2014 by David McKee

OK, so the Boardwalk was down 2% last month but, on a same-store basis (i.e., minus Atlantic Club), business was up 3%, given a shove over the top by $11 million in online-casino caesars-atlantic-cityrevenue, which is looking like a difference maker, if not the Holy Grail of gambling. Borgata, up 13%, played lucky at tables and slots alike. The table-hold gods also looked with favor upon Caesars Atlantic City, up 17% in revenues. Unfortunately for Caesars Entertainment‘s four-pack of Atlantic City casinos, all the rest were revenue-negative: -12% at Bally’s, -10% at Harrah’s and -20% at Showboat. (No prizes for guessing which one Gary Loveman is likeliest to close.) Trump Plaza scraped the bottom again, grossing $4.4 million for a 26% decline.

Up-and-comers were Revel (55%; $12.5 million) and Golden Nugget (40%, $13 million). Posting smaller — but still encouraging — increases were Continue reading →

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Churchill Downs, Fontainebleau, Harrah's, Mohegan Sun, New York, Pennsylvania, Tropicana Entertainment, Trump Entertainment Resorts, Wall Street | 2 Comments

New York: The rush is on; Baloney in Philly

Posted on May 13, 2014 by David McKee

Seal_of_New_York.svgNew York State has come out with its required minimum casino investments, which range from $70 million to $350 million, although the reality is a complicated formula too tortuous to unravel here, laden with ‘ifs,’ ‘ands’ and ‘buts.’ (The $350 million, top-tier rate only applies to Orange County and Dutchess County, near New York City, with most mandatory investments being much lower.) Throw in licensing fees, land costs, etc. and the top-line cost could be more like $472 million. Saratoga Casino & Raceway spokeswoman Rita Cox was praiseful of the numbers, saying they show “a lot of thought and consideration.” Caesars Entertainment has already way overshot the minimum, pledging $750 million for an Orange County casino. Now we sit back and see who drops out, finding the action too rich for their blood. One that’s definitely ‘in’ is Genting Group, which got the green light from the Tuxedo Town Board last night.

Pennsylvania‘s Legislature commissioned a study of whether a second casino in urban Philadelphia would saturate the market. Those charged with conducting came back with Continue reading →

Posted in Downtown, Economy, Genting, Harrah's, Internet gambling, New York, Pennsylvania, Shuffle Master, Technology, Tribal | Comments Off on New York: The rush is on; Baloney in Philly

Happy anniversary for Adelson; Penn’s legal woes

Posted on May 13, 2014 by David McKee

Sands MacaoSmashed entrance doors, overburdened and broken escalators, and 40,000 customers … it was all in a day’s work when Sands Macao opened — can it really be 10 years ago next week? Time flies when you’re Sheldon Adelson. Although Stanley Ho vented some private, xenophobic remarks about Adelson, publicly he told reporters something very prophetic. “The cake is going to be bigger and bigger, and we all could have a share,” he said — and he was right. Adelson’s accomplishments included taking the aura of sleaze off Macao, upgrading customers’ expectations of a casino property and elevating the importance of the mass-market player. Or, as legislator Jose Maria Pereira Coutinho puts it, “Sands brought us a different way of gaming. It brought color, cultural exchange and an example for other operators of a path for doing something different.” Continue reading →

Posted in Iowa, Japan, Macau, Massachusetts, Neil Bluhm, Penn National, Racinos, Regulation, Sheldon Adelson, Stanley Ho, Taxes | Comments Off on Happy anniversary for Adelson; Penn’s legal woes

Wynn’s albatross; Culinary gets wrist slapped

Posted on May 13, 2014 by David McKee

Younger WynnSteve Wynn‘s Everett casino project is getting pinned down by fire from several directions. Boston City Attorney Thomas Frongillo argues that a sale to Wynn Resorts by FBT Everett Realty LLC should be voided because the latter concealed an ownership stake held by convicted felon Charles Lightbody. “They shouldn’t be entitled to earn a penny of profit on this, not one red cent, for what they’ve done,” he told the Massachusetts Gaming Commission. Ex-state inspector general Gregory Sullivan calls l’affaire Lightbody “a plaguing, dark problem for the commission … a serious concern.” “A group of people attempted to hide a disqualifying factor from you so that they could make a handsome profit,” testified Frongillo.

Thrown on the defensive, commissioner Bruce Stebbins says “I appreciate the city of Boston’s concerns about the suitability of the current property owners.” Colleage Gayle Cameron concurs that she’s “concerned about the land deal, but I do look at that as a separate matter.” Still, given the lack of clear resolution, one feels the momentum slipping from Wynn’s grasp and toward Mohegan Sun, which appears likely to negotiate a surrounding-community agreement with Boston. Continue reading →

Posted in Culinary Union, Environment, Harrah's, Indiana, Massachusetts, Mohegan Sun, Regulation, Steve Wynn | 2 Comments

Quote of the Day

Posted on May 13, 2014 by David McKee

Charlie Brown“Like Lucy does with Charlie Brown, the Legislature keeps promising Floridians an overhaul of gambling in the state — then pulls the ball away.” — James L. Rosica, on the latest session of futility in Tallahassee.

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

MGM National Harbor: Icon or overkill? You decide

Posted on May 9, 2014 by David McKee

MGM Resorts International‘s National Harbor project literally hasn’t gotten off the drawing board and yet it’s already stirring controversy. The beef mainly involves five oversized LED screens, the largest of which would be 60 by 100 feet. MGM has similar signage at CityCenter and they’re like weapons of mass messaging, not at all subtle. (It is Las Vegas, after all.)

MGM MD 1In this case: “The county prohibits outdoor advertising such as the electronic billboards, and the amount of signage planned at the casino is 10 times what’s typically allowed under the county’s zoning regulations, planners said.” Queried Prince George’s County Planning Commission member John P. Shoaff, “I am not certain that five are necessary.” “It’s like beauty: It’s in the eye of the beholder,” countered fellow commissioner Dorothy Bailey. MGM surrogate Arthur Horne held the winning card, arguing that “it’s part of the overall design … and it’s something they believe is important to the aesthetics and the operation of the building.” Continue reading →

Posted in Architecture, Environment, Harrah's, Internet gambling, Maryland, MGM Mirage, Ohio, Penn National, Politics, Regulation, Sheldon Adelson, Technology | 1 Comment

Boston gets bounced; Packer K.O.’s Sri Lanka; Cohen’s good deed

Posted on May 9, 2014 by David McKee

massachusetts-quarterIt could all wind up in court, further prolonging Wynn Resorts‘ and Mohegan Sun‘s agony, but for now Boston is a surrounding community. The Massachusetts Gaming Commission unanimously struck down Mayor Martin J. Walsh‘s demand for host-community status. Wynn was quick to extend an olive branch, saying it looked forward to talks over mitigation terms.

Gaffe-prone MGC Chairman Stephen Crosby will have to excuse himself at this point, after attending a Kentucky Derby party at Suffolk Downs. (Crosby might do well to consider stepping down altogether.) Mayor Martin J. Walsh‘s argument against Wynn — that it uses a road that runs through Boston proper — would, if taken to its logical extreme, create new “host communities” all over Massachusetts. Suffolk Downs is on slightly Continue reading →

Posted in Animals, California, International, James Packer, Massachusetts, Mohegan Sun, Regulation, Station Casinos, Steve Wynn, Tribal | Comments Off on Boston gets bounced; Packer K.O.’s Sri Lanka; Cohen’s good deed

Loveman utters heresy; Adelson’s sock-puppet theatre

Posted on May 9, 2014 by David McKee

Buried deep in Caesars Entertainments ‘s 1Q14 earnings call was this bombshell from CEO Gary Loveman: “We are looking at all of our options to reduce the cost of doing business here. All the lovemanbusinesses in [Atlantic City] are under tremendous pressure.” That’s not exactly a death sentence for the Showboat but it got people to sit up and take notice. (Why then has Caesars been playing footsie with Revel?) S&G has to give Loveman props for the bravery it took to say that “markets can reach points when no new supply is indeed the right answer. In some cases reducing supply is the right answer. That’s the normal, self-correcting healing that you’d like to see in a market like this,” In the casino industry that’s heresy. To hear most execs — and many Wall Street analysts — tell it, new supply is always the right answer.

Loveman also announced that guarantees were being taken off much of its debt. That’s a move that must have bondholders’ innards in a twist, as the company continues to struggle.

Sheldon Adelson added another big-name minion to his campaign against Internet gambling last month when Continue reading →

Posted in Atlantic City, Cretins, Economy, Florida, Harrah's, Indiana, Louisiana, New Hampshire, Politics, South Carolina, Texas, Wall Street | Comments Off on Loveman utters heresy; Adelson’s sock-puppet theatre

A few minutes with Sheldon Adelson

Posted on May 9, 2014 by David McKee

On Internet gambling:

On his fear of the Vegas High Roller:

“They don’t care about Sheldon Adelson”

COURTESY: Bloomberg News

Posted in Harrah's, International, Macau, Sheldon Adelson, Singapore, The Strip | Comments Off on A few minutes with Sheldon Adelson

Up, up and away … slowly

Posted on May 7, 2014 by David McKee

Linq revisedI’ve been putting off writing about riding the Vegas High Roller. Not because it isn’t a powerful new icon for the Las Vegas Strip (it is). Not because the ride isn’t smooth as silk. (It is.) And not because Caesars Entertainment hasn’t hit a home run with tourists. (It has.) Heck, my wife dislikes gondola rides and she loved it.

No, it’s because my verdict on the Ferris wheel, which one rides in great comfort, are divided. I’ll try to put the ‘cons’ into perspective. The biggest ‘pro,’ obviously, is the view you get from 550 feet aloft, especially if the upward trajectory of your ride, which moves with serenity-inducing near-imperceptible stateliness, coincides with the Bellagio fountain show. Counterintuitively, I would recommend riding the High Roller during daytime, simply because you will see so much more. So my relatively paltry cavils should be taken in that context. In the day you could see eastward to UNLV, to Sunrise Mountain and farther still.

At night, it’s a big black void, so you’re only getting Continue reading →

Posted in Architecture, California, Entertainment, Harrah's, MGM Mirage, The Strip, Tourism, Tribal, Wall Street | Comments Off on Up, up and away … slowly

Genting OK’d for Vegas; James Packer packs a punch

Posted on May 7, 2014 by David McKee

Resorts World LV-2So thirsty is the State of Nevada for new casino investment that it may feel pressure not to look too closely at Genting Berhad, as its license application goes before the Nevada Gaming Control Board. Not that we’ve ever heard or read anything untoward about Genting (save for brief flirtation with Stanley Ho) but Las Vegas really needs this deal to happen. As Howard Stutz puts it, “If there are any issues with the application, they will be minor.” Nothing short of widespread Triad or Yakuza ties, he continues, could derail Resorts World Las Vegas. Stutz does everything short of write, “The fix is in.”

Considering all the cash flow being thrown off by Resorts World Sentosa and Resorts World New York, this is one project where we shouldn’t have to worry about Continue reading →

Posted in Animals, CityCenter, Cosmopolitan, Economy, Entertainment, Genting, International, James Packer, New York, Regulation, Singapore, Stanley Ho, The Strip | Comments Off on Genting OK’d for Vegas; James Packer packs a punch