China: Hands off Hainan

Hainan ocean viewChina dealt a severe blow to the hopes of Big Gaming this week, declaring the island of Hainan off-limits for gambling. “We cannot at all allow Hainan to operate casinos,” declared resident Communist Party strongman Luo Baoming. This cannot have been well received in the offices of Caesars Entertainment, which hoped to open a Hainan resort this year, or to MGM Resorts International, which already runs MGM Grand Sanya on Hainan’s scenic shores. How big a prize is Hainan? It’s home to a seemingly unimaginable 200 hotels and “has been a huge draw for domestic tourists with more than 22 million overnight stays registered in Hainan in the first eight months of 2013.” MGM and Caesars must be feeling like slot players whose big jackpot was just invalidated.

In a late-breaking story, the U.S. Department of Agriculture has put Dirk Arthur’s Wild Magic — which plays Harrah’s Reno and Harrah’s Laughlin — on notice for animal cruelty. According to The Associated Press, the show received a citation in December and formal warning a month later. Arthur’s been cited “for Continue reading

Posted in Animals, Architecture, Charity, Harrah's, Illinois, International, Kansas, Macau, MGM Mirage, Phil Ruffin, Sports, Stanley Ho | 1 Comment

Quote of the Day

Bloomfield“Don’t bring me a slot machine and tell me it’s a horse.” — Nebraska state Sen. Dave Bloomfield, stating his opposition to VLT “instant racing” at Cornhusker State racetracks.

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Boyd: Japan or bust

Japan-flagWell, they weren’t that dramatic about it. But Boyd Gaming executives surprised Wall Street analysts by announcing their interest in having a Japanese casino. For all the ongoing success of Borgata, we still think of Boyd as a small-casino company, getting by on locals play and Hawaiian tourists. “We’re much larger today than we were in early the early 2000s,” said CEO Keith Smith, who added that it was too early to talk about financing. Small wonder, with $178 million cash on hand against $4.5 billion in debt. Downtown business improved last quarter while Las Vegas locals business remained on a flat trajectory. (“Relatively OK,” said JP Morgan analyst Joseph Greff.) However, Boyd has improved cash flow for four quarters in a row.

A $1 billion writedown on the abandoned Echelon project pushed Boyd to a 4Q13 loss. The company also did the responsible thing, retiring an aggregate $585 million in debt and interest. We like seeing that kind of probity in the gaming biz.

SLS Las Vegas was thrown a lifeline this week. It entered a Continue reading

Posted in Boyd Gaming, Downtown, Iowa, Marketing, MGM Mirage, New York, Penn National, Problem gambling, Racinos, Regulation, Sahara, Sam Nazarian, The Strip | 1 Comment

Building better mousetraps

Mohegan RevereWere I Steve Wynn, I would be feeling somewhat discouraged by my prospects in Massachusetts. Just look at what happened to Cordish Gaming. Its Leominster slot-parlor proposal got high marks, but was ultimately passed over because Penn National Gaming‘s rival project in Plainville would incorporate horse racing. If, as appears to be the case, the Massachusetts Gaming Commission is in the tank for horseracing, Suffolk Downs will ace Wynn just by showing up.

Further aiding Suffolk Downs’ cause is a marketing program by Mohegan Sun. It is recruiting local businesses at a furious clip for a program where player points can be redeemed at area businesses — “garages, print shops, insurance agents, beauty suppliers, hair salons, markets, local chambers of commerce” — reaching as far as Salem. Wynn has its own gift-voucher program for Everett and Malden, but the breadth and comprehensiveness of Mohegan Sun’s effort may have him beat. The promise to Continue reading

Posted in Atlantic City, Cordish Co., Entertainment, Horseracing, Marketing, Massachusetts, Mohegan Sun, Penn National, Reno, Steve Wynn, Technology, Transportation, Warner Gaming | Comments Off on Building better mousetraps

Vegas: Behind the standoff; Sands: Another one bites the dust

ObamaAs the Culinary Union heads toward a March 20 strike vote, the culprit behind its stalemate with over a dozen casinos has been identified as the Affordable Care Act. “The biggest hurdle to reaching settlements in Vegas is the new costs imposed on our health plan by Obamacare,” said an unusually blunt D. Taylor, president of Unite-Here. “Even though the president and Congress promised we could keep our health plan, the reality is, unless the law is fixed, that won’t be true.” Simply put, health plans obtained through collective bargaining don’t qualify for ACA subsidies. So far, MGM Resorts International, Caesars Entertainment and the Tropicana Resort & Casino have come to terms but many other on-the-fringe properties like the Riviera and the Stratosphere have not.

Taylor blames the Obama administration for the impasse and is threatening retribution come November. If it’s bad for Culinary employees it’s worse for Continue reading

Posted in Culinary Union, Harrah's, Massachusetts, MGM Mirage, Pennsylvania, Politics, Riviera, Sheldon Adelson, Steve Wynn, The Strip | 1 Comment

Empire State scramble; Stalemate in Kentucky; Too cozy in Ohio?

GearanCasino expansion continues to speed along in New York State, where college president Mark Gearan (right) has been formally installed as New York State Gaming Commission chairman, filling out the five-member body. Prior to taking office, he was presented with some bedtime reading by legislator Liz Krueger (D): the 317-page Inspector General’s report on the scandal-plagued initial award of the Aqueduct Race Track casino license (which was subsequently rebid and became Resorts World New York). Cautioned to focus upon the potential economic impact of his decisions, Gearan agreed that “is a key driver. I respect that.” Those words don’t resonate favorably for Cordish Gaming and Penn National Gaming, whose attempts at obtaining a Woodbury casino have drawn loud cries of protest from Sullivan and Ulster counties. Ulster County Executive Mike Hein has thrown his support to the Nevele Resort project, Continue reading

Posted in Cordish Co., Downtown, Entertainment, Horseracing, Kentucky, New York, Ohio, Penn National, Politics, Racinos, Regulation, Technology, The Strip | Comments Off on Empire State scramble; Stalemate in Kentucky; Too cozy in Ohio?

Tribal casinos good for your health? Bet on it

“Reservation shopping” used to be Us versus Them language, as the private sector sought to hold back tribal casinos. Now it’s been added to the arsenal of tribe-on-tribe verbal violence. Writes the New York Times, “casino-owning Indian tribes have emerged as some of the most powerful and dogged opponents of new Indian casinos.”

Groups like the North Fork Band of Mono Indians, in California, or the Menominee Tribe, in Wisconsin, live in conditions of grinding poverty. Between successful lobbying and a sympathetic administration in the White House, they’re making the most headway in years in terms of getting off-reservation land taken into trust for eventual casino development. That chaps casino-owning tribes like the Chukchansi Indians something fierce. The latter has a strong Wall Street ally in Brigade Capital Management. They’re not going to let Continue reading

Posted in Arizona, California, Environment, Politics, Tribal, Wayne F. Newton, Wisconsin | Comments Off on Tribal casinos good for your health? Bet on it

More slots for the Sunshine State; Sheldon’s big payday

Maria Sachs A 453-page casino-enabling bill in the Florida state Senate just got a bit longer when Sen. Maria Sachs added language that would enable six additional counties (Palm Beach, Gadsden, Washington, Lee, Hamilton and Brevard) to have slots at their parimutuels. All the affected counties have approved slots in nonbinding referendums. Sachs hopes to recaptured revenue that’s migrating to parimutuels in Broward County, such as Isle Casino & Racing, in Pompano Beach. The existing bill already contains several enticements for the industry, including a less-punitive tax rate (15%, down from 35%) and full Class-III gambling for the private sector … which would put the latter one up on the Seminole Tribe, which lacks certain table games. No word on how that might complicate Gov. Rick Scott‘s newly announced compact talks with the Seminoles.

Meanwhile, House Speaker Will Weatherford is regarding the Senate’s efforts with imperial detachment, proposing that any further change in gambling be subject to constitutional amendment.

A ways back, I read some industry tout predicting that Continue reading

Posted in Arizona, Atlantic City, Environment, Florida, International, Isle of Capri, Macau, Politics, Racinos, Regulation, Revel, Sheldon Adelson, Steve Wynn, Taxes, Transportation, Tribal | 1 Comment

Scott makes his move; Sudden death in New Hampshire

Just when it looked like the casino train was going to leave the station without him, Florida Gov. Rick Scott (R) has opened compact renegotiations with the Seminole Tribe. The latter would Rick_Scott1like to keep blackjack and baccarat, Scott would surely like to keep the $234 million the Seminoles guarantee the state every year. Is he willing to take less in return for allowing Vegas-style casinos for the private sector or would he preserve Seminole exclusivity in return for more money? None of the above, perhaps? Scott’s not talking. One suggestion is that Scott might split the baby by preserving the Seminoles’ Class III status in Tampa but allow greater private-sector competition in Broward and Miami-Dade counties. He’s on a couple of leashes, having taken $250,000 from Sheldon Adelson and twice that from the Seminoles. However, the Seminole Tribe “looks forward to a positive outcome” and its payments to the state hit the $1 billion mark a year ahead of schedule. So does Scott risk the bird in the hand for the two (Genting Group and Las Vegas Sands) lurking in the bush? The state-tribal relationship in Florida is a delicate formula that seems to be working well for all concerned. Scott will need to proceed with caution.

Well, that was quick. Just when it looked like casino gambling was within a few votes of passage in New Hampshire‘s House of Representatives, the House Ways & Means Committee shot it down. Considering the ongoing march toward Continue reading

Posted in Atlantic City, Boyd Gaming, Florida, Genting, MGM Mirage, New Hampshire, New York, Racinos, Regulation, Revel, Sheldon Adelson, Tribal | Comments Off on Scott makes his move; Sudden death in New Hampshire

Genting’s dog-and-pony show; Ohio, Year One

Back when it was still Echelon, the axiom about the skeleton on the North Strip was that no one Resorts World LV-2would start building anything nearby until Boyd Gaming resumed work. Perhaps the industry got tired of waiting. SLS Las Vegas, which seemed for so long a sham, is increasingly a reality way up at the north end of the Strip. Caesars Entertainment has a whole beehive of projects — Quad, Linq, the Vegas High Roller, The Cromwell going at mid-Strip. And now Genting Group is getting in on the action with Resorts World Las Vegas, which could cost anywhere from $2 billion to $7 billion. Was Genting inspired by recent consumer trends or by SLS owner Sam Nazarian‘s risk-taking, go-it-alone attitude?

Either way, Genting was able to get no less a personage than Continue reading

Posted in Boyd Gaming, Economy, Genting, Harrah's, Ohio, Regulation, Sam Nazarian, The Strip | Comments Off on Genting’s dog-and-pony show; Ohio, Year One

Case Bets: Sands, Galaxy Gaming, Penn and Churchill Downs

sands_cyber_attack1Every time Las Vegas Sands releases more information about the hacking of its Web sites, the news just gets worse. Now it turns out that whoever was behind the assault conducted a smash-and-grab raid of personal data. The potential for identity theft is scary indeed. If there’s any upside, it’s that this aspect of the banditry was confined to Sands Bethlehem (as best anyone knows). However, some private corporate data may have been destroyed completely. The extent of the damage is still immeasurable. Sands has been pretty tight-lipped about the whole matter, so Ron Reese‘s most recent statement (“We continue to work diligently with law enforcement officials and internal and external forensic IT experts to recover damaged data, Continue reading

Posted in Arizona, California, Churchill Downs, Iowa, Maine, Penn National, Pennsylvania, Regulation, Sheldon Adelson, Technology, Warner Gaming | Comments Off on Case Bets: Sands, Galaxy Gaming, Penn and Churchill Downs

Caesars sells … to itself

Our friends Big Caesars and Little Caesars are back in the news again. Caesars Growth Partners (Little Caesars) has agreed to spend $2.2 billion to obtain Bally’s Las Vegas, The IMG-20130507-00006Cromwell, The Quad and Harrah’s New Orleans. The price includes $185 million of debt assumption and $223 million in capex costs, leaving $1.8 billion in cash, ostensibly to retire debt — of which there is still $21 billion, worrisome to bond markets. Writes Big Caesars, “These actions are part of ongoing efforts to address Caesars Entertainment Operating Company, Inc.’s … overall capital structure and position that subsidiary of Caesars Entertainment … to enhance equity value.” There were also several clouds of self-congratulatory verbiage from CEO Gary Loveman, of which the only straightforward remark was, “Today’s asset sales mark an important step in our ongoing efforts to repair [Caesars Entertainment’s] balance sheet.”

On a conference call, however, Loveman was still in Big Spender mode, bragging, Continue reading

Posted in Current, Election, Harrah's, Louisiana, Macau, Sheldon Adelson, The Strip, Tribal, Wisconsin | 2 Comments

Quote of the Day

“This demographic has less disposable income and is often saddled with student loans, so gaming is not a priority because they do not have the time or money to be gaming customers.” — casino consultant Mike Meczka on why 21-35-year-olds are not being drawn to gambling.

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Case Bets: Sands, Atlantic City, Maryland, Isle of Capri, Churchill Downs, etc.

Las Vegas Sands lost more top executive talent when Sands Bethworks President Robert DeSalvio handed in his notice. He’ll be at the casino through mid-March but the move seems to have caught Sands off-guard. The latter assured reporters that DeSalvio’s departure had nothing to do with the recent megahack of the Bethlehem casino’s Web site. DeSalvio has turned the casino, an initial underachiever, into one of the Pennsylvania’s top-grossing properties. Such talent will be in demand although the departing president will undoubtedly be bound to some form of non-compete clause.

fertitta_webA mass migration of Atlantic Club players to the Golden Nugget Atlantic City has created a sudden need for employees. That’s why 1,300 wannabe casino workers took a 1-in-26 chance of landing a job at the Tilman Fertitta-owned property. The odds may be shortening. The casino needs 50 dealers and 50 other employees now, and still more will be required when the summer season kicks into gear. Comments by prospective workers were tinged with desperation. “These are all dedicated people and we’re not used to being out of a job. My health benefits are expiring. I need a job and I need it now,” said one. Here’s hoping the Nugget hires as many as possible.

Rocky Gap Casino Resort, in western Maryland, needs more Continue reading

Posted in Atlantic City, Churchill Downs, Cordish Co., Foxwoods, Harrah's, Horseracing, Illinois, International, Isle of Capri, Kentucky, Louisiana, Maryland, Pennsylvania, Sheldon Adelson, Tilman Fertitta, Wall Street | 1 Comment

Nevada in January, by the numbers

venetian-pic

Gross gambling revenue: $884 million (-3%)

Strip gambling revenue: $500 million (-1%)

Baccarat revenue: $82 (-14.5%)

Baccarat drop: +14%

Baccarat hold: 9% (-25%)

Non-baccarat table win: +12%

Strip slot revenues: -4.4%

Super Bowl win: $20 million

Super Bowl hold: 16.5%

Super Bowl handle: +21%

Continue reading

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Massachusetts: Penn wins

Oh, cruel fate. It looked like that Massachusetts slot parlor was in the bag for Cordish Gaming and the city of Leominster. After all, Massachusetts Gaming Commission Chairman Stephen Crosby had rated the project as “very good,” adding, “Thus our analysis suggests that the strategic value of the Leominster location, filling a relatively unserved part of the state and creating a bulwark to a potential Southern New Hampshire facility, has the highest strategic competitive value.”

Plainridge Park CasinoPenn National Gaming’s project in Plainville, meanwhile, was but “sufficient” with “few really distinctive features” other than the continuance of harness racing. Penn had gotten “very good” marks for mitigation efforts, including “integrated responsible gaming practices.” Greenwood Racing‘s proposal for Raynham Park was never seriously in contention, getting merely “sufficient” marks in nearly every major category, and its presentation was faulty for a lack of transparency.

Then the votes were counted and — whoa! — Continue reading

Posted in Cordish Co., Greenwood Racing, Horseracing, Illinois, Massachusetts, Penn National, Politics, Racinos, Regulation, Rhode Island, Slot routes, Wall Street | Comments Off on Massachusetts: Penn wins

Quote of the Day

“It’s our opinion that the expansion of regional gaming, whether by commercial or Native American providers, is growing at an increasing and unsustainable pace. We draw a parallel in the growth in regional gaming over the prior five to 10 years as similar to the proliferation and building of shopping malls during the 1970s.” — Union Gaming Analytics, warning against approving two casinos proposed for Iowa, in Cedar Rapids and Jefferson. Similar conclusions are reached by Marquette Advisors.

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

Stupid player tricks & other Case Bets

casino-chipsWhat do you do if the cops try to bust you for having $115K in phony casino chips (allegedly)? Throw them in the nearest body of water, naturally. “Fortunately for police, the chips floated.” Vuong Q. Truong and wife Rosa A. Nguyen supposedly bought $150,000 worth of fake chips over the Internet (for 12 grand) and tried to play them at Maryland Live. They weren’t the only ones, apparently. Another couple is charged with winning $1 chips at a West Virginia casino, altering them and trying to palm them off as $100 Maryland Live chips. Good luck with that. And was the reporter being just a wee bit snarky when Continue reading

Posted in Cordish Co., Cretins, Current, Japan, Lawrence Ho, Macau, Maryland, Melco Crown Entertainment, Mississippi, Penn National, Sheldon Adelson, Stanley Ho | Comments Off on Stupid player tricks & other Case Bets

Brave new world

We’re still months away from the moment of decision, but Las Vegas has improbably emerged as a frontrunner for the 2016 Republican Party convention, that quadrennial ritual in which Sheldon Adelson tries to purchase the next president of these United States. There’s plenty here to offend the party’s sheldon-adelson-cartoontheocratic wing but casino gambling has become so ubiquitous nationally that it shouldn’t be a factor. Even some of the reddest of red states have it. Three Vegas sites have been mulled, including MGM Resorts International‘s yet-to-be-built AEG arena and UNLV‘s Thomas & Mack Center. The former would be a nightmare for the casino corridor, thanks to the security perimeter that will have to be thrown up around the site. The latter would be a nightmare for me because I live roughly a block from the Thomas & Mack and don’t want the Secret Service encamped in my front yard.

Fortunately, boosters are leaning toward the Las Vegas Convention Center. To make it viable, as much as $75 million in upgrades and retrofits will be needed. Fine, you say, Sheldon can Continue reading

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Revere: Mohegan Sun rising in the east; Dose of reality in New Jersey

Election results are in from Revere, where Suffolk Downs and Mohegan Sun are partnering to build a racino. It wasn’t even close. Casino opponents were heavily outspent and, in the end, heavily outvoted, being crushed in a landslide, 63% to 37%. The facts of the case speak so powerfully for themselves that further commentary seems superfluous. Mohegan Sun now goes up against Wynn Resorts and CEO Mitchell Etess couldn’t help taunting Steve Wynn, saying, “We’re going to win this license because our application to Massachusetts is unconditional.” (Wynn wants a tax break and sundry other tweaks.) Revere residents would like a tax break of their own, along with the jobs Mohegan Sun would bring. As for Suffolk Downs, if it continues to harp on its threat to end live racing sans casino, it’s going to sound like economic blackmail.

Parx Raynham 1Today, the Massachusetts Gaming Commission looks at the impact and planned mitigation of three proposed slot parlors. So far, Penn National Gaming‘s Plainville project and Cordish Cos.’ rival proposal for Leominster have been fighting to a draw. Leominster has less competition working in its favor while Plainridge has a denser population base to draw upon. You can judge the three designs for yourself. (To date, Greenwood Racing‘s $220 million Raynham Park proposal is in the ‘also ran’ category.) Continue reading

Posted in Atlantic City, Cordish Co., Current, Economy, Election, Greenwood Racing, Internet gambling, Massachusetts, Mohegan Sun, Penn National, Taxes, Tribal | Comments Off on Revere: Mohegan Sun rising in the east; Dose of reality in New Jersey