SLS makes a believer

Posted on April 10, 2014 by David McKee

It took a while but SLS Las Vegas has made a believer of me. The hotel crossed the Rubicon this past Tuesday when it began taking reservations. It also trotted out a handsome new Web site, one which gives an idea of the market positioning SBE is going to attempt: stressing newness while drenching the customer in nostalgic mentions of the Rat Pack, Judy Garland and The Beatles. August 25 is the day when the rubber meets the road at SLS and rooms are priced to move ($109 midweek and $139 on weekends, subject to certain conditions). It’s nice to know that the SLS folks haven’t drunk their own bathwater. They’ve targeted the Vegas tourist’s weakest spot: His wallet.

To say SLS offers variety is something of an understatment: There are Continue reading →

Posted in Architecture, history, Reno, Sahara, Sam Nazarian, The Strip | 1 Comment

Tropicana Bethlehem?; One acre and a casino

Posted on April 10, 2014 by David McKee

bethlehemLas Vegas Sands‘ waving of the white flag over its Sands Bethlehem casino may have finally yielded a buyer. Having stated publicly, however, that $1 billion was the asking price may have limited Sands flexibility to negotiate (not to mention potentially chasing off viable suitors). Also, the rumored buyer is Tropicana Entertainment and its owner, Carl Icahn, doesn’t like to spend big. Sands Bethlehem’s interim president, Douglas Niethold, is on such a short leash he can’t tell the mayor of Bethlehem whether Sands has had talks with anybody, period.

Fears in Bethlehem extend beyond wild rumors of snakes on Continue reading →

Posted in Alabama, Cannery Casino Resorts, Carl Icahn, Current, Florida, New Hampshire, Pennsylvania, Sheldon Adelson, South Carolina, Tribal, Tropicana Entertainment | 1 Comment

Quote of the Day

Posted on April 10, 2014 by David McKee

“If we believe so much in the humane treatment of animals, why don’t we realize this industry is dead?” — state Rep. Tom Lee (R) of Florida, on the continuation of greyhound racing in his state.

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

… and it’s Pinnacle; The allure of slot routes

Posted on April 10, 2014 by David McKee

Noonan Lane casinoE23, the Albany-area casino proposal, has lifted the curtain on its managing partner and it’s Pinnacle Entertainment. Not to belittle the project but the presence of Pinnacle gives E23 real heft. Community organizer Marlon Anderson called it “a game changer for the city of Albany.” Pinnacle was selected from by developer David Flaum from among 10 supplicants for the project. Other than Genting Group, Pinnacle is the only heavyweight casino operator to commit to an upstate casino project and we submit that the Albany government not look this gift horse in the mouth.

Motor CityDetroit players stayed home (or played in Ohio) last month, as Motown casino revenues slipped 7%. No surprise, Greektown Casino-Hotel had the worst of it, off 10%. MGM Grand Detroit slid 7% but remained comfortably at the head of the pack. Grossing $43 million to Continue reading →

Posted in Dan Gilbert, Detroit, Illinois, MGM Mirage, New York, Pinnacle Entertainment, Slot routes | 1 Comment

Caesars: ‘Iceberg, debt ahead!’

Posted on April 9, 2014 by David McKee

Gary_loveman_Cropped_fmtCiting a “negative” outlook for Caesars Entertainment, bond-ratings agency Standard & Poor’s downgraded its ranking of the company yesterday. Caesars liquidity, analyst Melissa Long opined, was insufficient to meet $3.5 billion in debt maturities that come due next year, nor would sales of casino properties to subsidiary Caesars Growth Partners, raise enough cash. Wrote Long, “The downgrade reflects our expectation that Caesars’ capital structure is unsustainable. The amount of cash the company will burn in 2014 and 2015 creates conditions under which we believe a restructuring of some form is increasingly likely over the near term, absent an unanticipated significantly favorable change in operating performance.”

In hindsight, might it have been better for a post-LBO Caesars to have hunkered down and concentrated on optimizing its existing properties? CEO Gary Loveman‘s expansion strategy is obviously not rescuing the company for the predicament in which he placed it. Caesars can’t expand fast enough to stay ahead of the debt collector, it would seem. And the prospect of Caesars Growth Partners borrowing money to pay for the assets that Caesars Entertainment is offloading gives the whole charade Continue reading →

Posted in Atlantic City, Harrah's, Revel, Wall Street | Comments Off on Caesars: ‘Iceberg, debt ahead!’

Belaboring the obvious; Ohio’s growing pains

Posted on April 8, 2014 by David McKee

What is being hailed as a major breakthrough in problem-gambling treatment rests upon some observations that don’t seem to be particularly novel. Disordered gambling is being brainblamed on the insula area of the brain, crucial to forming emotions. So far, so good. But researchers then said, “‘near-misses’ seem to encourage further play, even though they are no different from any other loss. In a random sequence like tossing a coin, a run of one event (heads) makes people think the other outcome (tails) is due next; this is known as the ‘gambler’s fallacy’.” No s&!t, Sherlock. Spend any time at all around slot players and you’ll make that observation.

Strangely, your damage to your insula is thought to protect you from compulsive-gambling behavior. Only the study group with insula impairment was immune to the thought pattern described above. Reported Dr. Luke Clarke, of the University of Cambridge, Continue reading →

Posted in Atlantic City, Boyd Gaming, Cordish Co., Dining, Hard Rock International, Harrah's, Maryland, Ohio, Penn National, Problem gambling, Racinos, Regulation, Technology | Comments Off on Belaboring the obvious; Ohio’s growing pains

Tribal power; A new contender in Japan

Posted on April 8, 2014 by David McKee

Talking Stick Resort may have only 752 slot machines and 51 blackjack tables but it’s powered an economic bonanza in the Scottsdale, Arizona desert. It’s the focal point of two baseball spring-training facilities (Arizona Diamondbacks and Colorado Rockies), a 36-hole golf course and 1.1 million square feet of retail. The Las Vegas Review-Journal sent Howard Stutz down there recently for some recon and his reaction was that it “makes CityCenter look like a strip mall.”
In addition to Talking Stick, the Salt River-Pima Indian Community is also drawing gaming revenue from its Casino Arizona. The latter fields 911 slots and a 1,000-seat bingo hall. Arizona tribes’ tendency is not to concentrate their gaming capacity all in one spot but to pepper it around major metro areas (Phoenix, Tucson). The state seems ambivalent about the phenomenon. Arizona Department of Gaming Assistant Director Rick Medina says “we want the tribes to do what they can in terms of economic development” but, in the next breath he’s fretting about controlling the pace of gaming expansion:  Continue reading →

Posted in Arizona, Baseball, CityCenter, Election, Harrah's, Japan, Melco Crown Entertainment, Nebraska, Racinos, Tribal | Comments Off on Tribal power; A new contender in Japan

East Coast Case Bets

Posted on April 8, 2014 by David McKee

GaetzAlthough talks have been conducted in deep secrecy, a few details of Seminole Tribe compact negotiations have been vouchsafed the public. The tribe is telling the state “don’t push us on this,” reminding it that the Bureau of Indian Affairs can strike down any usurious terms — as we saw it do to Massachusetts not long ago. On the other hand, state Sen. Don Gaetz (R, left) says of Florida Gov. Rick Scott‘s people, “Anybody who goes to the negotiating table needs to come away with at least as much as he came to the table with, if not more.”

Democrats in the state House could cause trouble by demanding, once the compact is unveiled, that it contains a wider array of games for parimutuels in South Florida. Whether a compact can be finished and put through the legislative process before adjournment is an open question — although pessimism is Continue reading →

Posted in Cordish Co., Harrah's, Maryland, Massachusetts, MGM Mirage, Mohegan Sun, Penn National, Politics, Racinos, Taxes, Tropicana Entertainment | 1 Comment

New York: It’s getting crowded; Gold at sea

Posted on April 7, 2014 by David McKee

Binghamton CasinoAdd another casino project to the hotly contested Southern Tier. Former (unsuccessful) Reno casino operators Ally and Amin Visram have unveiled Binghamton Casino, which from the outside looks more like a monastery than a casino. Hey, anything’s better than a big box of slots. The Visrams own two large parcels in the Binghamton area but haven’t which one to put the casino on yet. Although having a hotel is mandatory under the state’s gaming-enabling legislation, the Visrams can get around that by putting guests up at their Holiday Inn Arena and shuttling them to the casino by van. ($25 million is being earmarked for a Phase II hotel.)

“The main thing that we want to do is put the casino here where I believe it will put the City of Binghamton on the map,” said Ally Visram, although I think we can agree that Continue reading →

Posted in Florida, New York, Racinos, Reno | Comments Off on New York: It’s getting crowded; Gold at sea

The son also rises; Tight squeeze in Macao

Posted on April 7, 2014 by David McKee


Add James Packer to the list of casino moguls with their eyes on Japan. He’s prepared to commit $5 billion to a resort project in the Land of the Rising Sun. Officials in South Korea, unlike their Japanese brethren, aren’t waiting for a big event like the 2020 Olympics to get casino-mania. They’re already talking about a major gambling expansion in their country. Caesars Entertainment and Lippo Group recently received a preliminary license to develop a resort on Yeonjong Island, near Inchon, and at least four other areas are in play, often using landfill sites.

Some economists are skeptical about the whole thing. Caesars may have grabbed one of the few viable sites, according to Hyundai Research Institute senior boffin Kim Pil-soo. Similar views are heard from Korea Leisure Industry Institute President Seo Chun-beom. Reasons cited for a cautious approach include Continue reading →

Posted in Atlantic City, Economy, Environment, Harrah's, Internet gambling, James Packer, Japan, Macau, Pennsylvania | Comments Off on The son also rises; Tight squeeze in Macao

Penn tanks in Illinois, Bluhm ascends; The casino transfer that wasn’t

Posted on April 7, 2014 by David McKee

alton belleThere were two clear winners in Illinois last month and one big loser — Penn National Gaming. Performing worse than expected,  Penn had double-digit declines at all four of its casinos: Empress Joliet (-14%), Hollywood Aurora (-14%), Alton Belle (16%) and parent GLPI‘s new acquisition Casino Queen (-14%). In contrast to these listing ships, Harrah’s Joliet sailed on an even keel, posting flat revenues from last year. And Neil Bluhm‘s Rivers Casino in Des Plaines was 4% up. Boyd Gaming‘s Par-A-Dice slipped 10% and the bloom is definitely off the rose for Casino Rock Island (-14%). I won’t belabor what these comparisons mean for Illinois’ casino industry. Responsible lawmakers should be able to look at the numbers and reach a responsible conclusion. Whether they can is the $139 million (statewide gaming gross) question.

Thanks a lot. That’s probably what some Massachusetts lawmakers are thinking about Boston Mayor Martin J. Walsh. His bigfooting of the casino-licensing process Continue reading →

Posted in Boyd Gaming, Dan Gilbert, Detroit, Harrah's, Horseracing, Lake Tahoe, Massachusetts, Neil Bluhm, Penn National, Regulation, Taxes | 1 Comment

Quote of the Day

Posted on April 7, 2014 by David McKee

“That slogan was the worst thing that ever happened to the front-line staff at casinos. Tourists think that everything is off the table. They think that they have free rein to drink until they’re falling down stupid and it’s OK to do anything they want because we won’t say anything. … We’ve been spit on and cussed at!” — Transport Workers Union 721 veep and former dealer Cynthia Falls, from an outstanding feature by Ed Komenda on the eleventh anniversary of the “What happens here, stays here” slogan.

Posted in Marketing, Transportation | 1 Comment

Big trouble for Little Caesars

Posted on April 4, 2014 by David McKee

A second group of dissident debtors has shown up to spoil Caesars Entertainment‘s spinoff of high-value assets to Caesars Growth Properties (aka Little Caesars). The $2.2 billion purchase, incidentally, means that Little Caesars — which is majority owned by Big Caesars — has to go to the banks for another $1.3 billion. But hey, who’s counting at this point?

loveman“[U]nnamed parties who assert that they are lenders” are alleging an improper transfer of assets. They also accuse Big Caesars of selling those properties for ‘inadequate consideration’ and that the parent company was insolvent at the time. The plaintiffs identify themselves only as holders of $1.85 billion in first-lien debt with Big Caesars. His thumb ever on the detonator, CEO Gary Loveman‘s response was to threaten to blow everything up: “termination of the Transactions, that could cause Continue reading →

Posted in Harrah's, Maryland, Planet Hollywood, The Strip, Wall Street | Comments Off on Big trouble for Little Caesars

In defense of Sheldon Adelson

Posted on April 4, 2014 by David McKee

Sheldon AA disclaimer: I tend to agree with Jeffrey Compton that Sheldon Adelson‘s “actions seem nothing but ego-driven overkill.” And by getting into bed with Bible Belt religious conservatives — to whom any form of gambling, not just on the Internet, is anathema — he’s entering dangerous territory. Does he think it’s necessary to destroy the village in order to save it? However, I think Compton assigns too much destructive potential to both Sheldon’s jihad against progress and GOP speechwriter David Frum‘s recent jeremiad on Las Vegas. Could Sheldon “bring down the entire industry like – wait for it – a house of cards”? I very much doubt it. Gambling is a states’ rights issue, it’s become deeply embedded in the fabric of our society and it’s here to stay, barring some totalitarian nightmare. And, after reading Frum’s column described as “overwrought … one of the nastiest anti-Las Vegas (and anti-gaming) commentaries I have read in a very long time,” I was almost disappointed to find the piece relatively mild.

Frum is relevant, in case you were wondering, because he was a speaker at last weekend’s Adelsonmania at Las Vegas Sands. While Frum might accused of schadenfreude, his analysis of Las Vegas’ fall and slow rise tracks with Continue reading →

Posted in Economy, history, Internet gambling, Iowa, Isle of Capri, Macau, Politics, Regulation, Sheldon Adelson, The Strip, Wall Street | Comments Off on In defense of Sheldon Adelson

Case Bets

Posted on April 4, 2014 by David McKee

pinnacle_logo_lrIn a risky play, the Missouri Senate voted upon and passed to the General Assembly a bill that would boost Show-Me State casinos’ ability to extend credit. Mind you, all the risk is on the casino. It could lend as much as $10,000 to “qualifying, sober patrons” but the loans will be unsecured. Play at Missouri casinos has been in the doldrums, so perhaps industry leaders think this will bring the punters back. The legislation is the brainchild of Pinnacle Entertainment Executive Vice President of Government Relations & Public Affairs Troy Stremming. Since Stremming is one of the most durable and effective political actors in the industry, we like his chances of shepherding this bill to passage.

Transparency rules in Delaware and New Jersey mean that the Internal Revenue Service knows just how much you’re making from Internet gambling. (Nevada has Continue reading →

Posted in Alabama, Economy, Genting, Internet gambling, Mississippi, Missouri, New York, Pinnacle Entertainment, Racinos, Taxes | Comments Off on Case Bets

Massachusetts: Hurry up and wait

Posted on April 4, 2014 by David McKee

CrosbyThat’s the message from the Massachusetts Gaming Commission, which has pushed its decision on the Everett and Revere casino proposals into August, to humor Boston Mayor Martin J. Walsh. The MGC will hold a May 1 meeting on Walsh’s attempt to bigfoot the casino-award process. Sounding like a babysitting uncle tyrannized by a peevish toddler, MGC Chairman Stephen Crosby (left) said, “We’re bending over backward to give the city a very fair opportunity … and compromising a lot of other parties. I think it’s the right thing to do, but a big price is being paid by a lot of people to try and accommodate the city.”

In other words, if Walsh pitches a fit, everyone else should ‘bend over backward’ to humor him. The choice of an August deadline is presumably Continue reading →

Posted in Florida, Internet gambling, Massachusetts, Mohegan Sun, Racinos, Regulation, Steve Wynn, Tribal | 1 Comment

Requiem for megaresorts?; Deferred deadline in Massachusetts

Posted on April 3, 2014 by David McKee

WaterlogueIs the megaresort era over? It had a pretty good run, from 1989 until the Great Recession. That’s a solid two decades. There are still one or two megaresort projects still out there, notably Genting Group‘s Resorts World Las Vegas. But they feel like anachronisms. Now the buzzword is “boutique” and small-is-beautiful is the mantra. The most truly boutique-y are The Cromwell, with its 188 rooms, and the 181-room Nobu Tower at Caesars Palace. (Whoever thought we’d equate Caesars Entertainment with intimate settings?)

At the high end of “boutique,” you’ll find 1,100-room THEhotel at Mandalay Bay. It’s scheduled for conversion to the Delano brand this summer. In one important way it’s a purely cosmetic change: Continue reading →

Posted in Foxwoods, Genting, Hard Rock Hotel, Harrah's, IGT, Internet gambling, Massachusetts, MGM Mirage, Morgans Hotel Group, Neil Bluhm, Regulation | Comments Off on Requiem for megaresorts?; Deferred deadline in Massachusetts

Adelson: Crassness and classiness; Could online poker flop?

Posted on April 3, 2014 by David McKee

Last weekend’s GOP kaffeeklatsch, hosted by Sheldon Adelson, was such a self-abasing lap dance by the celebrity attendees that this Andy Borowitz satire doesn’t feel like much of a stretch.

Adelson2_2_12That being said, Adelson is making his presence felt in the philanthropic realm with the formation of Sands Cares. The first million dollars take the form of a donation to Clean the World. The admirable mission of this charity is to recycle waste products — such as used soap and shampoo — into hygiene products for underprivileged countries. Las Vegas Sands has made a lot of money off the Third World so it’s nice to see it giving some of it back. Sands Cares also wrote a five-year, $7 million check to the William F. Harrah College of Hotel Administration at UNLV. Interim UNLV President Don Snyder has really decimated the degree program over there, so the Harrah College could definitely use Sands’ cash, which go toward founding a Center for International Hospitality & Gaming Education.

Said Sands President Michael Leven, “we want to be recognized globally in terms of Continue reading →

Posted in Charity, Internet gambling, Marketing, MGM Mirage, Pennsylvania, Politics, Regulation, Sheldon Adelson, Tilman Fertitta | Comments Off on Adelson: Crassness and classiness; Could online poker flop?

Quote of the Day

Posted on April 3, 2014 by David McKee

Sheldon“When did the guy who makes Donald Trump‘s hair look natural get veto power over every word Republicans say about Israel?” — Jon Stewart, on Sheldon Adelson‘s clout.

Posted in Donald Trump, Sheldon Adelson | Comments Off on Quote of the Day

What’s “incidental” & other Case Bets

Posted on April 2, 2014 by David McKee

When the Clark County Commission went out of its way to define “tavern gaming” in 2011, it went into all sorts of minutiae about kitchens and such. But it neglected to address Dottys.jpgthe elephant in the room: How much gambling is “incidental” to a publican’s business? Commissioner Tom Collins has a radical solution: Cut the allotted number of gaming machines from 15 to five. That would appear to solve the problem but will raise hell with the likes of Golden Gaming (aka P.T.’s) and Dotty’s, even if their existing establishments are grandfathered into the legislation. They want to keep growing and Collins’ proposal would surely kneecap them.

Attorneys for Boston argue that the Massachusetts Gaming Commission has no mohegan005standing to rule on whether Beantown is a host community or not. The commission plans to go ahead and conduct hearings on the issue anyway. Judging by the verbiage coming out of Boston, Mayor Martin J. Walsh is laying the groundwork for a lawsuit, bringing the casino-selection process to a grinding halt. Meanwhile, Mohegan Sun/Suffolk Downs has to redo its environmental impact study, since the Mohegan casino portion of the project now sits squarely on a flood plane. Wynn Resorts contends that this will delay the start of construction (if Suffolk Downs wins), while Mohegan Sun insists it’s on track for a 2014 groundbreaking.

To the southeast, the Massachusetts Gaming Commission is willing to entertain an extension of the July 23 application deadline — but Continue reading →

Posted in Environment, Foxwoods, Golden Gaming, Goldman Sachs, Massachusetts, Mohegan Sun, Regulation, Slot routes, South Carolina, Steve Wynn, The Strip, Tribal | 1 Comment