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

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

Burton Cohen, 1923-2014

1995_cohenOne of Las Vegas’ least pretentious and most beloved casino executives died yesterday when Burton Cohen expired at the age of 90. He kept his hand in until the end, serving on the MGM Resorts International board of directors. His manifold tours of duty included three as president of the Desert Inn. There, he brought the concept of the concierge to Las Vegas. Today we take it for granted. Former colleagues are lauding him for his kindness, knowledge and straightforward manner. He’s also said to have a deceptively sneaky humor. “He had no peers in his combination of charm and wit. As recently as a few weeks ago he had me rolling in laughter. He was as spry and active as someone half his age,” former Nevada governor Bob Miller told the Las Vegas Review-Journal. “Las Vegas changed in many ways in his nearly 50 years here but Burton’s insight was always relevant.”

Noting Vegas’ propensity for implosions, Cohen remarked, “Testimonial to my managerial ability … I’ve left a sea of destruction.” A few Cohen-managed casinos survive, including Circus Circus, which he helped Jay Sarno open. (Cohen sure must have had some stories about that.) Sheldon Adelson may claim to be a “mensch” (as he recently did) but Cohen was the real item. The one time I had the privilege of interviewing him, I was impressed by Cohen’s generosity with his time, his unassuming nature and his fondness for the showbiz figures he brought to Vegas, including Michael Bennett, whose production of A Chorus Line played the Desert Inn (I think). Thankfully, the University of Nevada-Las Vegas has preserved Cohen’s story in his own words. Continue reading

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Loveman’s latest dice throw; Delicate talks in Boston

Lovemans big diceIn one of 2014’s least surprising stories, Caesars Entertainment has had to restructure debt. It will replace $1 billion in near-term indebtedness with $1.75 billion in longer-term notes. Bond analysts have been predicting this move for a long time, even as Caesars demurred. Also, the company will liquidate 5% of its equity to institutional investors to help make ends meet. When Texas Pacific Group and Apollo Management are done with Caesars, it’s going to be worth a lot less than what they paid for it.

Wall Street was reassured by the news, with Caesars 8% up in after-hours trading. Now CEO Gary Loveman must find a way to push 2016-17 maturities Continue reading

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Adelson: I’m nice, really; Casinos go to pot

Sheldon AThree hundred people turned out yesterday at UNLV to hear Sheldon Adelson hold a rap session with the kids about the evils of online gambling. Adelson’s animus, it turns out, was his father’s propensity to gamble his money away at Boston-area racetracks. So why isn’t Adelson trying to get horseracing banned? (Or slot routes or tribal casinos … ?) I know, I know: Stop trying to make sense of it. Where you see a cell phone or a computer, Sheldon sees a little casino. “I am in favor of it as a form of entertainment. But I am not in favor of it exploiting the world’s most vulnerable people,” he said, adding with deliberate irony, “I know I am a Republican and I am not supposed to be socially sensitive, but I am very socially sensitive.” It’s not clear whether anybody asked Adelson to elaborate on his belief in the mystical powers of brick-and-mortar casinos to deter disordered gamblers.

“The integrated resort is my contribution to the industry,” Adelson said, referring to Venetian Macao. Again, he didn’t explain why casino megaresorts like MGM Grand, which preceded his arrival on the scene didn’t qualify. (Oh, and Sheldon: You look so cute when you make those air-quote gestures.)

COO Michael Leven was also on hand to address the student body. He told reporters Continue reading

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Station vs. Dotty’s: He said, he said; A perfect confluence in Vegas

So, did Station Casinos bid for its gadfly, the Dotty’s chain of slot parlors or didn’t it? Dotty’s owner Craig Estey is alleging a Feb. 5, 2013 meeting at which Station made a play for the station1dozens of demi-casinos which it has long held are illegal under Nevada law. Station CFO Marc Falcone allegedly offered 7X cash flow for the little grind joints, whose storefront-business model has been the bane of Station’s existence. But, conceding that “preliminary business meetings” had been held with Dotty’s, Station President Steve Cavallaro has denied that any “formal” offer was made. He also says no extensive examination of Dotty’s documents was conducted. He does confirm that Falcone returned from a meeting with Estey, bearing the industry-standard 7X EBITDA number and Cavarallo rejected it as to high.

The important words here seem to be “formal” and “extensive.” Cavallaro has a fiduciary duty to look at anything that might improve the value of Station. Scarfing up the Continue reading

Posted in Affinity Gaming, Economy, Entertainment, Station Casinos, Technology, Tourism | 1 Comment

Sin City Serenade; Empire State frenzy

las-vegas-monorailIt’s probably between Dallas and Las Vegas for the 2016 Republican convention. Quite a study in contrasts (except for the summer heat). Social-issues conservatives are coming out hard against Sin City, surprise, surprise. Never mind casinos: 64 pages of ads for escort services in the Yellow Pages gave them plenty of ammo. While local political shaman Billy Vassiliadis is right that opponents of Vegas are working off an outdated image of the city, it’s not changed entirely beyond recognition. Imagine the cultural shock when Bible Belters venture onto the Strip and have to run a gamut of porn-slappers.

In pragmatic terms, it should be hard to make a case against Vegas. Republican National Committee Chairman Rence Priebus enumerated the criteria as: Continue reading

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Affleck banned from HRH; Sands Bethlehem reprieved

You can do all manner of despicable things in a casino if you’re a high roller … but count one lousy card and you’re toast, mister. That’s the message being sent by Warner Gaming after it banned Ben Affleck from the Hard Rock Hotel & Casino “for life.” Leaving aside the ludicrous verbal overkill, aren’t celebrities winning big supposed to be valuable advertising? Besides, there’s nothing remotely in the neighborhood of cheating if you’re counting cards — just using mathematical skills to achieve an advantage. The execs at Warner had the choice of having sweating an advantage player or recapturing their lost “where the stars play” image … and decided to make the tightwad move. There’s no way the Hard Rock comes out of this ahead in the court of public opinion.

Sands BethlehemLas Vegas Sands has taken the “for sale” sign off Sands Bethlehem. It’s promising new investment in the property and has appointed a new president, former Marina Bay Sands senior veep Mark Juliano. The latter’s probably better known from his tenure as CEO of Trump Entertainment Resorts or prexy of Caesars Atlantic City. So, needless to say, he knows the competition. Sheldon Adelson‘s desire to be shot of Sands Bethlehem never made much sense, as Continue reading

Posted in Harrah's, Macau, Pennsylvania, Sheldon Adelson, Singapore, Technology, Trump Entertainment Resorts, Warner Gaming | 1 Comment

Shadow boxing in Boston; Rejected again in New Hampshire

There’s been yet another delay — only a week — in Boston‘s quixotic pursuit of host-community status for Wynn Resorts‘ and Mohegan Sun‘s Hub-area projects. The Massachusetts Gaming Commission obliged Boston Mayor Martin J. Walsh with postponement on Beantown’s application until May 8. Walsh’s people said they needed to look at “review new information which may be forthcoming from the applicants.” (Walsh downplayed it as “odds and ends.”) Or not. According to Wynn Resorts, no “substantive discussions” had been held with the Walsh administration for the past three weeks. Ditto the Mohegans: “We had a series of good meetings with [Walsh] and his team and felt we made progress. Nothing changed.”

Gov. Deval Patrick took the unusual step of intervening in the kefuffle, hinting that the three principal parties (Boston, Wynn, Mohegan Sun) might be on the threshold of an agreement. This prompted Everett Mayor Carlo DeMaria to fume, Continue reading

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Wynn speaks … and speaks

Wynn ForbesWith a dustup with George Clooney still making headlines and a quarterly reporting emerging, Steve Wynn could be expected to be in an expansive mood. He did not disappoint. Ironically, Wynn’s comments about people who “live in a very strange bubble of their own. They are molly-coddled they are highly privileged. We are talking about successful artists,” could apply very well to Steve himself. Wynn’s had his share of out-of-touch moments in the past, such as telling dealers that if losing $10,000 in tips a year affected their living standard they weren’t managing their money right. But enough of that.

(In one of Wynn’s Bloomberg sound bites his attempt to invoke Alexis de Toqueville goes sadly awry when he has de Toqueville opining in 1909 — 50 years after de Toqueville’s death … although how many other casino owners would reach for a classical reference?)

For all his love of Macao, Wynn say that he was “feeling good about Las Vegas, better than I had in the past … I see Las Vegas getting a footing that it hasn’t in the past.” This despite Continue reading

Posted in Architecture, CityCenter, Dining, Economy, Entertainment, International, Japan, Macau, Steve Wynn, Wall Street | 1 Comment

Quote of the Day

“A question of cannibalization in Macau is brushed aside as [Steve] Wynn relates the story of The Three Little Pigs to the industry. Naturally, Wynn Resorts has the casinos built of brick.” — Seeking Alpha, from a summary of the Wynn Resorts first-quarter earnings call.

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Tight squeeze in New Jersey

BorgataBoyd Gaming posted its 1Q14 results today and Borgata racked up a $3 million operating loss due to the rollout of Internet gambling. That number might be smaller if credit card companies weren’t throttling payment-processing on the games. The average amount of successful transactions runs between 42% and 46%. Not even favorable guidance from the U.S. Department of Justice has eased the steely resistance of credit card companies. At the high end of that spectrum is MasterCard, with a 73% approval rate. (Visa, not so much.) American Express and Discover won’t process any I-gaming transactions, in part because Continue reading

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Selective outrage at Mandalay Bay; Tough call in Delaware

Mandalay-Bay-picMandalay Bay, which hosts Los Angeles Clippers pre-season play, and which advertises during Clippers games is out of the picture … for now. Although the NBA has banned unspeakably vile Clippers owner Donald Sterling from the league, Mandalay Bay is joining the lengthening list of companies that have suspended their relationship with the team (but not terminated it). This holds out the possibility for a redeemed Clippers organization to someday brandish the MBay logo again, although one has to ask what took the casino so long to act. Its move would be more impressive if Continue reading

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Vegas: A return to the halcyon years? It looks that way

DSCN1272Las Vegas recorded its highest visitation numbers of all time last March, helping to drive gambling revenue 8% upward. We had 3.7 million tourists, 4% than the previous year. Despite fewer conventions, a 20.5% leap in convention attendance (with the ConExpo-Con/Agg accounting for a fifth of the total) helped drive the numbers. Hotel executives were quick to pounce, raising ADRs 21%, to $133.92 — highest since April 2008 — as occupancy hit 92%. (Occupancy metrics were higher than last year in every respect.) All these numbers have the Las Vegas Convention & Visitors Authority excited that this might be the year Vegas reaches or surpasses 40 million tourists. Only drive-in traffic was down, off 3% from last year.

Fortune favored the house, with baccarat revenue up 40% (on flat handle) and craps winnings up 36%. Mesquite continues to decline (-9%) but nearly every other Continue reading

Posted in Downtown, Economy, Harrah's, Lake Tahoe, Laughlin, Mesquite, MGM Mirage, North Las Vegas, Ohio, Pennsylvania, Reno, Sam Nazarian, Tourism, Wall Street | 1 Comment

Pinnacle, GLPI impress The Street; Parx beats Pennsylvania

Wall-streetDespite soft performance in its regional markets, Pinnacle Entertainment impressed an analyst or two by exceeding revenue expectations for the past quarter. Pinnacle’s cash flow was $3 million above Wall Street estimates, a feat attributed to fiscal discipline and improved margins. The company’s priorities have been — and will continue to be — reducing debt, increasing efficiency and absorbing Ameristar Casinos into the Pinnacle fold. No REITmania for those guys. J.P. Morgan analyst Joseph Greff called the results “particularly impressive given the broad weakness in regional revenues and competition faced in certain markets (Belterra, Bossier City).”

Deutsche Bank analyst Carlo Santarelli was also impressed, calling Pinnacle’s numbers “rather surprising.” He added that “better than expected” performance in the South made up for weakness in the Midwest.

Pinnacle is implementing an automated hotel-management program at all its Continue reading

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Scott deal a dud?; Storm on Capitol Hill

Rick_Scott1Slim and none appear to be Florida Gov. Rick Scott‘s choices for a special session next month to ratify a casino compact with the Seminole Tribe. Legislators who note that the current compact doesn’t sunset until next year wonder what’s the rush. Others fear that Scott has given away the store — an impression not helped by the deep secrecy in which negotiations have been cloaked. State Democrats, kept in the dark, wonder why they should do anything to help the GOP governor. And private-sector casino interests don’t see any goodies forthcoming for them. Sheldon Adelson has turned off the Scott cash spigot, as has Donald Trump. Solons fear that South Florida megaresorts are off the table, as it parimutuel expansion. They also fret that not only will the Seminoles keep blackjack, their game repertory will expand to include craps and roulette. (Of course, if destination casinos were legalized with those games, the Seminoles would have to be given them, too.) What looked like bold initiative has turned into an embarrassing gubernatorial face-plant.

Speaking of Adelson, 10 conservative groups opened a verbal can of whup-ass on his Continue reading

Posted in Donald Trump, Florida, Internet gambling, Politics, Sheldon Adelson, Tribal | 1 Comment

Genting courts skeptics; Mohegan Sun wants a refund

Genting Group may be in for some rough sledding in its pursuit of a casino resort in Tuxedo, New York. Genting would demolish Tuxedo Ridge Ski Center and replace it with an extensive, Sterling-Forest-ResortEdwardian-style resort. Skiing would still be part of the mix, along with “snow tubing, toboggan runs, ice skating rinks and other winter activities.” It’s also promised to keep the New York Renaissance Faire going, too. As with all the major players in the Empire State casino derby, Genting is targeting Orange County, much-coveted for its proximity to New York City. However, Tuxedo is an affluent town, not much in need of an economic boost from a casino. Genting is trying to sweeten the pot by offering to build a long-deferred highway interchange, but those kinds of promises didn’t work for would-be casino developers in Massachusetts. Just ask Mohegan Sun and Foxwoods about that.

Mohegan Sun is lashing back at former Bay State partner Northeast Realty over Continue reading

Posted in Election, Genting, International, Lawrence Ho, Massachusetts, Mohegan Sun, New York | 2 Comments

MGM blows away Wall Street expectations

DSCN1282Posting more than double Wall Street‘s consensus of earnings per share ($0.21 rather than $0.09), MGM Resorts International had a good quarter, to say the least. Even CityCenter exceeded expectations by 11%. J.P. Morgan analyst Joseph Greff took it all in stride, although he did not that better-than-expected RevPAR (up 14%) and other non-gaming revenues added to the exceptionally strong performance.

Greff’s Deutsche Bank opposite number, Carlo Santarelli attributed the robustness of the quarter entirely to the Las Vegas Strip. Strip revenue of $1.3 billion (up 7.5%) was driven mainly by Bellagio, Mandalay Bay and MGM Grand. “The lower tier properties were roughly in line with our forecasts,” Santarelli wrote. MGM Grand Detroit was a Continue reading

Posted in Animals, CityCenter, Colorado, Detroit, Downtown, Entertainment, Horseracing, Internet gambling, Iowa, Macau, Massachusetts, MGM Mirage, Regulation, Steve Wynn, The Strip, Wall Street | Comments Off on MGM blows away Wall Street expectations

Quote of the Day

Park 2“These resorts are very inward-facing. They were designed to try to be provocative, to get people inside and have them stay as long as possible. By opening up these resorts, by creating a much more porous environment with outdoor and indoor spaces and experiences, you’re going to attract a lot more people.” — MGM Resorts International CEO Jim Murren on the philosophy underlying The Park, MGM’s latest experiment in New Urbanism.

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Crowded field in New York; Big numbers at Hakkasan

Seal_of_New_York.svgAwash in $22 million in application fees, New York State now enters the next phase: The winnowing of the field either through lack of financing or the formation of alliances. After all, there are property owners with no operating experience and some operators with no place to hang their hats yet. Also, the minimum capital investment has yet to be decided upon and promulgated. That alone could find some candidates to be all hat and no cattle. Then there are mystery applicants like Hudson Valley Gaming and Capital Region Gaming. (They share the same legal representation, we know that much.) Och-Ziff Real Estate and Rolling Hills Entertainment LLP are also homeless for the time being. Nor is the aegis for David Flaum‘s Albany-area casino known at this point.

Saratoga Raceway & Casino‘s satellite project in East Greenbush has already Continue reading

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Quote of the Day

“On several occasions the dispute has spilled over to the trade show floor, with LT Game, a unit of Hong Kong listed Paradise Entertainment, claiming its patent protection extends to exhibiting live dealer multi-game systems in Macau. At G2E Asia in 2012, the companies traded court orders that had SHFL’s displays covered and uncovered more often than a stripper’s bottom.” — Forbes’ Muhammad Cohen on an intellectual-property brawl that threatens to overshadow G2E Asia or possibly get it moved to Japan.

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