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

Sheldon Adelson, sacred monster; New Jersey ‘Net

Posted on April 2, 2014 by David McKee

Sheldon_AdelsonIn case you hadn’t heard, Sheldon Adelson is a pretty rich fella. A run-up in Las Vegas Sands stock over the last two days has put $2.1 billion extra in his pocket. This, inevitably, has sparked further discussion of his political influence, especially as the Supreme Court continues to loosen the limits on campaign donations. That’s music to every politician who wishes he had Adelson’s ear. Personally, I hope most of them have more self-respect than Ohio Gov. John Kasich (R), who groveled last weekend, “Hey, listen, Sheldon, thanks for inviting me. I don’t travel to these things much, but this was one that I thought was really, really important. God bless you for what you do.” More power to Adelson if he can provoke that manner of sycophancy.

Success only seems to encourage Adelson’s boorish manners. Govs. Scott Walker and Chris Christie got snubbed outright, and Adelson sicced his goon squad Continue reading →

Posted in Atlantic City, Internet gambling, Politics, Regulation, Sheldon Adelson, Taxes, The Strip, Wall Street | Comments Off on Sheldon Adelson, sacred monster; New Jersey ‘Net

Saratoga screw-up

Posted on April 2, 2014 by David McKee

Saratoga winterIn its haste to make a statement on gambling, Saratoga Springs may have cut the legs right out from under Saratoga Casino & Raceway. Rules for application, released yesterday, say that “a prospective casino operator must have a resolution of support passed by the legislative body from the host community … an applicant failing to have local support won’t even be reviewed.” State Gaming Commission Acting Executive Director Rob Williams added, “If [support] is not evidenced, your application will not be received.”

So much for the notion of the Saratoga Springs City Council that, by unanimously voting against expansion of gambling at the raceway (which has 1,700 VLTs) they’d be improving their bargaining position. But Mayor Joanne Yepsen remained in hard-ass mode, stating, Continue reading →

Posted in Entertainment, New York, Planet Hollywood, Racinos, Regulation, The Strip | Comments Off on Saratoga screw-up

Mississippi casino dream deferred; Empire State on schedule

Posted on April 1, 2014 by David McKee

Scarlet Pearl 2

Update: Rotate Black failed to make the cutoff date for Hemingway Casino (below), meaning the property will go back on the market, Rotate Black never having paid for its option. It is still contemplated as a future casino site.

D’Ibreville, Mississippi has been waiting two decades for a casino and it’s going to have to wait a spell longer. The men behind the Scarlet Pearl Casino project missed their deadline to close a deal and there’s no hope of an extension. Instead, they have to start over from Day One. Regulations for developing an onshore casino have changed and Scarlet Pearl has to meet a newer, higher set of criteria, as would Hemingway Casino, (below) in Gulfport, which was in peril of missing its deadline today.

Hemingway CasinoAt least Scarlet Pearl doesn’t have to upsize its project. It has the mandated 300 hotel rooms and necessary square footage. Hemingway Casino could be going back to the drawing board, as it has only 205 hotel rooms and 35,000 square feet of gaming space, not the newly required 40,000. In Scarlet Pearl’s case, developer Rotate Black had missed several previous deadlines, causing the Mississippi Gaming Commission to run Continue reading →

Posted in Current, Mississippi, New York, Regulation | Comments Off on Mississippi casino dream deferred; Empire State on schedule

The best of Las Vegas; Neil Bluhm returns

Posted on April 1, 2014 by David McKee

USA Today logoAlthough I can’t imagine that too many of our readers are strangers to Las Vegas, perhaps there are a few. In that case, USA Today found somebody — well, me — to offer some helpful tips. For instance, here’s the family friendly version of Vegas. If you are a first-timer, these are the must-sees. For foodies, naming just 10 places to eat is very limiting, but you can’t go wrong with these. Say you’re a little more familiar with Las Vegas but crave a romantic getaway. Try anyplace on this list. And if you’re of a hipster bent, you can’t go wrong with this list. Enjoy!

Neil Bluhm‘s Rush Street Gaming is tiptoeing back into Massachusetts (perhaps neil-bluhmhere), where opportunity still exists in the southeast region. However, its interest comes with conditions. It wants “Region C” applicants to have their land costs exempted from the $500 million minimum investment set by the state. It also wants the application deadline pushed back to year’s end. Bluhm’s reasons include the contention that Region C won’t support more than $500 million — especially if a (non-taxpaying) tribal casino opens in the area. The developer doesn’t want to spend more than $375 million or $400 million on a Region C casino (which would also have competition from a Penn National Gaming slot parlor in Plainville).

Land, interest payments, mitigation costs and infrastructural improvements, Bluhm argues, should all count toward the total cost, which otherwise would near $700 million: “it needs to fit the size of the project to the size and risks of the market.” Loosening the rules, Bluhm’s lawyer says, will produce Continue reading →

Posted in Dining, Downtown, Entertainment, Massachusetts, Neil Bluhm, Penn National, Regulation, The Strip, Tribal | Comments Off on The best of Las Vegas; Neil Bluhm returns

High rolling

Posted on April 1, 2014 by David McKee

Las Vegas has its newest icon and the local media are duly wowed. The Review-Journal hauled out a stock of familiar superlatives — “stylish … trendy … hip.” The Las Vegas Sun wasn’t much more restrained. Then there was passenger Gary Simonson, from Minnesota, who was moved to channel

Continue reading →

Posted in Current, Dining, Entertainment, Harrah's, The Strip | Comments Off on High rolling

Monkey wrench for MGM; Klondike on the brink; Cheater’s justice

Posted on April 1, 2014 by David McKee

Remember that fast track that MGM National Harbor was on? Yes, forget about it. Politicians in Prince George’s County want to codify it into legislation that MGM MGM MD 2Resorts International meet certain benchmarks of local hiring and minority contracting. (The company’s excellent reputation on those fronts is clearly not good enough for some.) This throws a monkey wrench into MGM’s plans for a quick start to construction. No permits can be pulled until the county council says OK. MGM National Harbor President Lorenzo Creighton had hoped to start work this month, but first he must wait for the legislation to be voted out of committee and go before the full council. Claiming to be supportive, Councilor Mary Lehman nonetheless said, “But let’s be clear: We haven’t seen a penny yet.”

In order to keep the project on deadline, Creighton has to have permits in hand by June. He’s made verbal commitments to hire 50% of his workforce from within Prince George’s County and to keep 65% Continue reading →

Posted in Alabama, Boulder Strip, Maryland, MGM Mirage, New York, Singapore | Comments Off on Monkey wrench for MGM; Klondike on the brink; Cheater’s justice

Gentlemen, place your bids

Posted on March 31, 2014 by David McKee

Empire Resorts casinoToday, New York State starts taking bids on the four casinos it will soon be licensing upstate. At yet, there is no mechanism in place for determining licensing fees or whether the surrounding communities want the casinos or not. In the latter case, New York might do well to take a page from Massachusetts‘ book: Give both sides a month or two to make their case, then have the resident city vote the casino up or down. It beats having locations imposed by a five-member board in Albany. The Catskills area is regarded as the frontrunner. Would-be Nevele savior Michael Treanor hopes the $1 million application fee “will weed some people out” and there are a few projects that look like they have more hope than money. (Ironically, Treanor’s is one of those.)

Like Treanor and Genting Group beard Empire Resorts (above), few of the applicants are Continue reading →

Posted in Dining, Entertainment, Genting, Harrah's, Massachusetts, New York, Regulation, The Strip, Transportation | Comments Off on Gentlemen, place your bids

O little metropolis of Bethlehem; MGM on the move

Posted on March 31, 2014 by David McKee

Indiscriminate dissemination by Sands Bethlehem of $45 free-play slot cards is having some interesting effects on Bethlehem itself. It’s brought about an influx of largely Chinese-American players but not all are there to play. Some pay $15 for a round-trip bus ticket, sell their card to players for $40 and pocket the rest in lieu of income. For all those for whom going to Bethlehem is a way of life, there are many others for whom it’s a means of living.

This is detailed in a superb, in-depth piece by Matt Assad and Pamela Lehman of The Morning Call. Sands Bethlehem’s workforce boasts a strong Continue reading →

Posted in Marketing, Maryland, Massachusetts, MGM Mirage, Mohegan Sun, Pennsylvania, Regulation, Sheldon Adelson, Steve Wynn, Taxes, Transportation | Comments Off on O little metropolis of Bethlehem; MGM on the move

(Economic) climate change in New Jersey, Nevada and Iowa

Posted on March 31, 2014 by David McKee

online-gambling-lawsJobs are coming back to Atlantic City … well, at least a trickle. In a month, casino operators will be required to have their Internet-gambling personnel on site in New Jersey. We’re not talking about large numbers of staff — Caesars Entertainment estimates it will start with 47 employees — but it’s something. Meanwhile state Sens. Raymond Lesniak (D) and James Whelan (D) are pushing a bill which would incentivize offshore casino operators to base their operations in New Jersey. They would, however, be forbidden to offer online play in the U.S. Whelan’s floated some pie-in-the-sky job numbers in support of his legislation (10,000-15,000 for starters) but that doesn’t make it a bad idea. Just don’t oversell it. We’re already seeing the effects of that on Atlantic City’s Internet-gaming numbers, which are suffering the aftereffects of hype.

Spurred by “tangible” economic recovery, operators in the Lake Tahoe–Sparks area are putting in $160 million worth of renovations at five different properties. The lucky casinos are Continue reading →

Posted in Affinity Gaming, Atlantic City, Colorado, Economy, Harrah's, Internet gambling, Iowa, Isle of Capri | 1 Comment

Murren on Japan; Blatstein’s big buy

Posted on March 31, 2014 by David McKee

murren_t198It’s still a long haul until casinos are legalized in Japan, let alone built, but MGM Resorts International CEO Jim Murren is waxing confident. He notes that Japan’s tourism is expected to grow 100% by 2020 and another 50% by 2030 — propitious conditions for a casino resort. He says “networking into what’s most important, the beauty of Japan, will drive that growth.” In what may be a tacit dig at Sheldon Adelson, he says, “I was constantly struck by the natural beauty of the country and the friendliness and warmth of the Japanese people. In some people’s eyes, everything should be in the resort. I think that’s a mistake. The casino resort should be integrated within the community and nation and encourage visitors to explore and see what’s so great about the country.”

He also takes a position that could be potentially contentious but is consistent with MGM’s reputation as an agent of possible social change: Murren would like to see more Continue reading →

Posted in California, Foxwoods, Harrah's, Internet gambling, Japan, MGM Mirage, Mississippi, Pennsylvania, The Mob, Tourism | Comments Off on Murren on Japan; Blatstein’s big buy

Okada thwarted again; Granite State stalemate

Posted on March 30, 2014 by David McKee

Okada 2Kazuo Okada‘s Universal Entertainment Corp. has pulled out of a deal to develop a $2 billion casino megaresort in the Philippines. Universal isn’t talking but jilted partner Century Properties Group is less reticent. Planning to contest the divorce, it says Universal wanted to infringe upon Century’s exclusive rights to develop the luxury retail and residential property at Manila Bay Resorts. Century had been acting as a sort of “beard” for Universal and Okada-owned Aruze USA, which held over 40% of the land for the project — in contravention of Philippine law. Universal sold 36% of its Eagle I Landholdings to Universal and another 24% was sold to First Paramount Holdings 888 to ameliorate Okada’s ownership issues.

This latest development may get Okada out of the Philippines, which has given him nothing but trouble. However, he’s still got an FBI investigation hanging over his head, regardless Continue reading →

Posted in Delaware, Harrah's, International, Japan, New Hampshire, Politics, Problem gambling, The Strip | Comments Off on Okada thwarted again; Granite State stalemate

Save the whales; Boffo contract in Wisconsin

Posted on March 28, 2014 by David McKee

824 grand. That’s how much online poker revenue Nevada generated in February, the first month in which it has reported such numbers. (Sheldon Adelson‘s fear of Internet poker is like an elephant cowering before a mouse.) Since online play went live, it has brought in $8.5 million.

wynn-picCompared to an epic February 2013, last February was more like business as usual, with revenues falling 20% on the Strip. (Statewide, the slippage was 14%.) Not even a $20 million Super Bowl haul could reverse Las Vegas‘ fortunes. The whales seem to have stayed home, too. Baccarat players wagered 22% less and the casinos got cleaned out, making 41% less gross baccarat revenue than 2013. A low hold percentage also hurt, save at Wynn Resorts and MGM Grand, according to a J.P. Morgan report.

A slight increase in Strip slot play produced 2% growth in revenue but the house played unlucky at table games. Deutsche Bank analyst Carlo Santarelli wrote, “we view this as the one silver lining in the year to date.” 11.5% less play produced Continue reading →

Posted in Boulder Strip, Downtown, Economy, Foxwoods, Internet gambling, Lake Tahoe, Laughlin, Massachusetts, MGM Mirage, North Las Vegas, Sheldon Adelson, Steve Wynn, Tribal, Wall Street, Wisconsin | Comments Off on Save the whales; Boffo contract in Wisconsin

Quote of the Day

Posted on March 28, 2014 by David McKee

“We did not know what to expect, so every penny is a nice surprise. We did not have to fill out 50 forms to get it or hire any new staff members to keep it – it came with no mandates.” — unidentified Ohio school district treasurer, on the revenue received from casino taxes in the Buckeye State.

Posted in Economy, Ohio, Taxes | Comments Off on Quote of the Day

Revel limps forward; Sheldon Adelson’s would-be buddies

Posted on March 28, 2014 by David McKee

President Scott Kreeger is insisting all is well at embattled Revel Resort. On one flank he’s got employees on whose behalf Unite-Here has been pressing for union representation. On the other he has the task of trying to make the casino attractive to potential buyers. Kreeger reiterated his claim that has 20 or 30 companies on the hook. Are there even that many casino operators left in the industry anymore? (Full House Resorts anyone?)

Kreeger told The Associated Press he “hopes to conclude a deal that could take the form of an outright sale of Revel, a strategic alliance with another company or a joint venture among revel_0494two or more companies to operate it.” The last sounds like a rather forlorn hope. But he insists that nobody wants to buy Revel just to shut it down and taken off the market. Frankly, we never thought that anyway. Likely suspect Caesars Entertainment would be more wont to keep Revel open and axe either Showboat or Bally’s Wild Wild West. Lastly, Kreeger is obviously stung by criticisms that he’s using tax dollars to prop up Revel. “The Economic Redevelopment Growth Grant is a public program available to any investor who is willing to commit development dollars within the state and meets the criteria. These tax rebates are available to Revel only Continue reading →

Posted in Atlantic City, Boyd Gaming, Harrah's, Internet gambling, Louisiana, MGM Mirage, Revel, Sheldon Adelson, Texas, Wall Street | Comments Off on Revel limps forward; Sheldon Adelson’s would-be buddies

The Adelson caucus

Posted on March 27, 2014 by David McKee

Dianne_Feinstein,_official_Senate_photo_2Online gambling is officially under attack, with bills having been introduced in both houses of Congress to eradicate the U.S. industry. (This must be one of those occasions when it’s OK to be “anti-business.”) As reported earlier the Senate version has the backing of Sen. Lindsey Graham (R-S.C.) and the House one is the creature of Rep. Jason Chaffetz (R-UT). Each has picked up at least one Democratic ally. Sen. Dianne Feinstein (D-CA, right) has rallied to Graham’s side, while Chaffetz has Rep. Emanuel Cleaver (D-MO), Rep. Tulsi Gabbard (D-HI) and Rep. Jim Matheson (D-UT) among those in his corner.

Perhaps they figure they can subsequently hit up Sheldon Adelson for some re-election money. (One early draft of the bill bore the fingerprints of Las Vegas Sands veep Andy Abboud.) Nevada senators Harry Reid (D) and Dean Heller (R) are trying to split the baby, preserving Internet poker but outlawing everything else. It’s Continue reading →

Posted in Illinois, Internet gambling, Missouri, Pinnacle Entertainment, Politics, Regulation, Sheldon Adelson, Slot routes, Tropicana Entertainment | Comments Off on The Adelson caucus

Walsh: My way or else; Sands Crimea?

Posted on March 27, 2014 by David McKee

WalshMaking yet another overreach, Boston Mayor Martin J. Walsh asserts that the only party which can decide whether Beantown is host community to Wynn Resorts‘ and Mohegan Sun‘s projects is … Boston. The Massachusetts Gaming Commission, he says, has no standing in the matter. He may even be able to find a loophole in the enabling legislation that validates his position. Settlement of such discords “was left completely unresolved in the [enabling] legislation,” says University of Massachusetts-Dartmouth casino boffin Clyde Barrow.

So put those casino plans on hold, because it looks like the Walsh/MGC dispute is headed to court. If he prevails, Walsh could drive off Wynn and Mohegan Sun by asking exorbitant amounts of money. As the Boston Globe reports, “Walsh could demand millions of dollars in compensation from each developer just to Continue reading →

Posted in Alabama, Harrah's, Massachusetts, Mohegan Sun, New York, Regulation, Revel, Steve Wynn, Tribal | 2 Comments

Big trouble at Caesars

Posted on March 27, 2014 by David McKee

In a shocking development, even for those of us who have followed Caesars Entertainment closely, the company is shutting down Harrah’s Tunica (formerly Grand Casino Tunica) on June 2. Regional president John Payne confessed to
Bloomberg News that the casino hadn’t been profitable for some time. As a consequence, 1,300 people will be thrown out of work. “There’s just too much supply in that market,” says Payne and much of it belongs to Caesars, which owns three casinos in Tunica. Caesars even tried selling the property but couldn’t find any takers. (It makes you wonder about market conditions in Atlantic City, where Caesars is even more exposed.)

Malaise in the market is partly to blame. What was a $1.2 billion jurisdiction in 2006 was down to $738 million last year. Interestingly, Full House Resorts just bought into Tunica, but at Continue reading →

Posted in Atlantic City, Harrah's, Mississippi, Regulation, Tourism, Tribal, Wall Street | 1 Comment

You are Number Six

Posted on March 26, 2014 by David McKee

DaylightGen1Say, isn’t that Rover from The Prisoner chilling out with some party animals at a Las Vegas beach, over to the left there? Anyway, since pool-party season is open now, don’t say I didn’t warn you. S&G is grossing you out because we care.

Posted in Entertainment, The Strip, TV | Comments Off on You are Number Six

The long arm of the law

Posted on March 26, 2014 by David McKee

casino_chips1According to a story broken by Reuters, U.S. officials are going to put the onus on casinos to verify where high rollers’ funds are coming from. It could take at least for FinCEN to develop this new law, “likely to require casinos to get more information about certain customers in order to shed light on high-risk transactions such as international wires and large cash deposits, said the sources, who asked not to be named.” It’s described as part of a sea change in the relationship between the U.S. government and the casino industry, one in which the latter will come under might tighter scrutiny.

FinCEN Director Jennifer Shasky Calvery fired a warning shot over the industry’s bow recently when she told assembled executives, “When some casinos say that probing their customers about their activities outside of the casino will drive customers away, I sense that Continue reading →

Posted in Election, Florida, Harrah's, Massachusetts, Mohegan Sun, Penn National, Regulation, Sheldon Adelson, South Carolina | 2 Comments