Keeping up with the Joneses

Posted on February 17, 2014 by David McKee

GreektownGreektownLong a money pit for the Saulte Ste. Marie Tribe of Chippewa Indians, the Greektown Casino in downtown Detroit is now owner Dan Gilbert‘s problem. A smoky warren of gambling spaces, the original layout is a clusterf**k that warrants Greektown’s eternal last-place status in the market. Gilbert is setting out to change that, including a revamp of the casino floor, to the tune of $150 million. It’ll be a two-year project, which means continued near-term losses for the casino, which finished $31 million in the red last year. Gilbert concedes it will lose money this year and after that … ? Still, anything that simplifies the property’s layout and upgrades its slot product has to be counted as a A Good Thing. Halfway across the country, Bally’s Atlantic City is trying something very similar (at a fraction of the cost) and ditching the old Wild Wild West branding formula.

MGM Springfield President Michael Mathis finds his current post a refreshing break from overseas MGM postings to South Korea and Japan. The stakes aren’t as big but Mathis contends that Continue reading →

Posted in Architecture, Atlantic City, CityCenter, Dan Gilbert, Detroit, International, Massachusetts, MGM Mirage, Mississippi, Problem gambling, Revel, Rhode Island, Sports | Comments Off on Keeping up with the Joneses

Hard Rock OK’d; Tribal casinos’ power plays; Caesars’ astute move

Posted on February 17, 2014 by David McKee

Instead of being left to rot, Hard Rock Hotel & Casino Sioux City will be permitted to resume construction, with a view toward a late-summer opening. That good news was handed down from the Polk County District Court bench. If Penn National Gaming‘s Argosy Hard Rock Sioux CitySioux City had its way, the HRH Sioux City would be in limbo until a lawsuit had been thoroughly adjudicated. Deeming HRH an “indispensable party,” the presiding judge opined that “The effect on SCE’s gaming license from a temporary stay is significant, if not drastic. It would very likely lose its financing. It would lose millions of dollars already spent. The project would likely come to a halt.” It would also default on a Credit Suisse loan, contended HRH prexy Bill Warner, while Penn argued that Warner knew Continue reading →

Posted in Florida, Foxwoods, Genting, Harrah's, Internet gambling, Iowa, Massachusetts, Mohegan Sun, Penn National, Regulation, Rhode Island, Tribal, Wall Street, Warner Gaming | 1 Comment

Quote of the Day

Posted on February 17, 2014 by David McKee

“There was such a home, a personal feeling toward these casinos that were on the Strip like the Silver Slipper, the Dunes, the Sahara—all these places that Sahara_Hotel_Casinoyou grew up with—these were all places that we had. This was our history, and they were getting demolished, just torn down and destroyed. Then they started putting in playgrounds by the poker machines and it became this family entertainment thing, which has changed. Now it’s become this mega-resort spa and all this other sh*t. But, it was changing Las Vegas. It changed all of Vegas. When all those places opened up, I feel like a lot of us locals just kept getting pushed off to the side, like we’re just here to be staff—to accommodate.” — playwright Ernie Curcio, on his new play, Corner of Hacienda, which premiered last weekend.

Posted in history, Sahara, The Strip | Comments Off on Quote of the Day

Discontent in Beantown; Sands, Day 4

Posted on February 14, 2014 by David McKee

martinjwalsh-headshotBoston Mayor Martin J. Walsh (right) wants the awarding of a Beantown-area casino put off … mainly so he’ll have more time to cadge and scheme his way into “host community” status, where the big money is to be found. Steve Wynn‘s Everett site directly abuts the Boston city line and Suffolk Downs, where Mohegan Sun would set up business, is split between East Boston and Revere. As the Boston Globe reports, both projects have been configured in such a way as to spill into Boston and give the city veto power.

Fractious Bostonian Charles Lightbody is accused of being behind an anti-casino campaign in Revere, including large drops of anti-casino literature and direct-mail propaganda. Unions at Suffolk Downs are alleging a Continue reading →

Posted in Dining, Illinois, Massachusetts, MGM Mirage, Mississippi, Mohegan Sun, Pennsylvania, Sheldon Adelson, Slot routes, Steve Wynn | 1 Comment

Casinos behaving badly

Posted on February 14, 2014 by David McKee

Reno‘s Peppermill Casino is going to be $1 million lighter in the wallet, after it ‘fessed up to spying on other casinos’ proprietary data. Peppermill web1_jackpot-key_3analyst Ryan Tors was caught at the Grand Sierra using a tool known as a reset key to unlock the secrets of rival casinos’ slot machines. He ” was able to learn certain diagnostic information about the slot machine, such as play history, hold percentages, event logs and game configuration.” Peppermill management has admitted that it condoned and encouraged Tors’ malfeasance, and now will get a spanking.

Tors was lucky. He’d been snooping on competitors’ slots since 2011 and was only busted recently. The key gets its name from its use to Continue reading →

Posted in Atlantic City, Dan Gilbert, Harrah's, Ohio, Regulation, Reno, Revel, Technology | Comments Off on Casinos behaving badly

A Ho no-show; Adelson omnipresent; Revel to close?

Posted on February 13, 2014 by David McKee

Dr-HoThere was apparently no Stanley Ho sighting at the Cotai Strip groundbreaking of Sociedade de Jogos de Macau‘s $3.9 billion Lisboa Palace. Ho is 92 and well into his dotage, so a public appearance would have come as a surprise. The project’s $3.9 billion cost had been pushed about $650 million upward by intensified construction and labor costs. When finished, Lisboa Palace will have 1,200 slots, 700 tables and 2,500 hotel rooms spread across three towers. What is most newsworthy is the means whereby Lisboa got the needed 2.2 billion square feet it needs: In a breathtaking bit of self dealing, it bought the land from SJM Executive Director Angela Leong. Slated to open in 2017, this will be SJM’s first attempt at a Las Vegas-style megaresort. It will be interesting to see if Leong can compete with the Yankee operators on what is (metaphorically) their own turf.

One of the latter, Penn National Gaming, is already looking past Macao to Vietnam, which has a young and growing middle class. The pilot project there, Van Don Casino, is budgeted at a dizzying $7.5 billion, big money even by Continue reading →

Posted in Foxwoods, Genting, Hard Rock International, Harrah's, Internet gambling, Macau, Penn National, Pennsylvania, Politics, Revel, Sheldon Adelson, Stanley Ho, Technology, Vietnam | 1 Comment

Battle of Sands widens

Posted on February 13, 2014 by David McKee

Sheldon pashaLas Vegas Sands‘ Web sites remain “under maintenance,” as the company reels from a vast and invasive cyber-attack. In addition to the FBI, the Secret Service has taken an interest in the matter. The assault is a boon for third-party sites, because online bookings can’t be made directly with Sands for the time being. (It’s a foul wind indeed that doesn’t blow somebody some benefit.) If credit-card records were stolen, Sands won’t say, which is a disservice to the company’s customer base. It’s possible that Sands itself doesn’t know, depending on the amount of damage to “certain core operating systems,” as spokesman Ron Reese called them. That damage is so extensive and so thorough that Continue reading →

Posted in Architecture, Internet gambling, Massachusetts, MGM Mirage, Politics, Problem gambling, Sheldon Adelson, The Strip | Comments Off on Battle of Sands widens

Quote of the Day

Posted on February 13, 2014 by David McKee

“At the end of the day, they are the true job creators.” — entrepreneur Nick Hanauer on poor and middle-class Americans.

Posted in Economy | Comments Off on Quote of the Day

Time running for Atlantic City; Adelson’s scurrility

Posted on February 12, 2014 by David McKee

After a quarterly hiatus, it seems time to start covering Atlantic City again. The headline item is a $9.5 million gross from Internet gambling. At that rate, online gambling isn’t going to be a game-changer and, indeed, the Boardwalk was down 9% last month — not counting Internet play. There was 6% less table play and 8% less slot handle. Borgata bucked the tide, its gross revenue ($48 million) up 2.5% and table revenue increasing 15%.

BoardwalkThe Atlantic Club went out with a horrid gurgle, only grossing $4 million. Revel grew revenue 23%, up to $10 million. That’s still less than the Showboat ($11 million, -17%), which Caesars Entertainment has been shopping around. The rest of the Caesars quartet performed as follows: Harrah’s Marina ($26 million, -4%), Caesars Atlantic City ($18 million, -23%) and Bally’s ($15 million, -16%). With numbers like those, the last thing Caesars would seem to need is more exposure in the Atlantic City. Revel is trending upward and the Showboat has seen better days, if that makes the bidding war for Revel any more sensible.

Just when you felt Trump Plaza couldn’t sink any lower it fell another Continue reading →

Posted in Boyd Gaming, Current, Economy, Harrah's, Internet gambling, Mohegan Sun, Penn National, Sheldon Adelson, Tilman Fertitta, Tropicana Entertainment, Trump Entertainment Resorts | 2 Comments

Market8 endorsed; Web casinos raided; Gridlock in Kentucky, Florida

Posted on February 12, 2014 by David McKee

Market8Market8 is emerging as the frontrunner in the competition for a Philadelphia casino license. Three area politicians have come forward in support of Ken Goldenberg‘s project, which will be run by Mohegan Sun. As part of a joint communique, First District Councilman Mark Squilla said, “We have an unprecedented opportunity with this remaining casino license to transform East Market Street in a way that no other development can.” City government has already made its preference for a downtown project known, so Squilla and his colleagues have provided further grist for that mill. If location weighs as heavily with the Pennsylvania Gaming Control Board, then it’s between Bart Blatstein‘s The Provence and Market8, end of story.

Market8’s design, which would inoculate pedestrians from gambling by putting the casino on the second floor must be part of the project’s appeal. Whatever the case, it’s got city fathers talking Continue reading →

Posted in Florida, Internet gambling, Kentucky, Mohegan Sun, Pennsylvania, Politics, Regulation, Tribal | Comments Off on Market8 endorsed; Web casinos raided; Gridlock in Kentucky, Florida

Pinnacle beats The Street; MGM goes electric

Posted on February 12, 2014 by David McKee

Pinnacle Entertainment did a brilliant job of managing Wall Street‘s expectations, its cash flow coming in $5 million above analysts’ consensus, Pinnacledriven by lower operating expenses. J.P. Morgan‘s Joseph Greff called the results “better than feared,” which tells you how The Street is feeling about regional gambling markets these days. Pinnacle saved $26 million simply by eliminating redundancies in its takeover of Ameristar Casinos and promised more to come. Projects such as a River City expansion and the Belterra Park racino in Ohio remain on course.

Revenues rose moderately (17%) in the South and enormously (114%) in the Midwest as Pinnacle absorbed Ameristar’s revenue streams, which include Continue reading →

Posted in Ameristar, Environment, Foxwoods, International, Internet gambling, Maryland, Massachusetts, MGM Mirage, Missouri, Ohio, Pinnacle Entertainment, Transportation, Tribal, Wall Street | Comments Off on Pinnacle beats The Street; MGM goes electric

2/11

Posted on February 12, 2014 by David McKee

sands_cyber_attack1Sheldon Adelson is not an easy man to like, let alone defend. (His attacks upon the First Amendment have seen to that.) But, upon further reflection, the Feb. 11 assault on his corporate Web sites causes one to reluctantly take sides with a very truculent individual. The cyber-attacks on Las Vegas Sands‘ various Web sites convey dangerous undertones that have nothing to do with Adelson’s current bete noire, Internet gambling. The site for Sands Casino Resort in Bethlehem, Pennsylvania, was hijacked, several others were rendered inoperative and employee data was Continue reading →

Posted in Current, Internet gambling, Pennsylvania, Politics, Sheldon Adelson | 2 Comments

PR Wars: Caesars vs. Caesars

Posted on February 11, 2014 by David McKee

caesars_palace_expansionIt’s restructuring time again at Caesars Entertainment, but which Caesars? According to a Bloomberg interview with RBC Capital Markets analyst John Kempf, subsidiary Caesars Entertainment Operating Co. would trade second-lien debt for cash (of which Caesars maintains it has plenty) and stock, plus the issuance of new debt. Caesars stock and high-yield debt stumbled on the news, which Kempf characterized as something “coming sooner rather than later.” Lazard Ltd. had been retained by Caesars to restructure its finances, Debtwire had reported.

Caesars wouldn’t talk to Bloomberg but ” a person familiar with the matter but not authorized by the company to speak on its behalf” spun an alternate-universe scenario to the Las Vegas Review-Journal. According to this version of events, Continue reading →

Posted in Harrah's, Internet gambling, Maryland, Planet Hollywood, Revel, Wall Street | Comments Off on PR Wars: Caesars vs. Caesars

Sheldon Adelson, bogeyman

Posted on February 11, 2014 by David McKee

Update: Somebody returned the favor by hacking into Las Vegas Sands‘ Web sites, taking out several home pages and posting inflammatory imagery. “The sites also featured a list of confidential employee information and Social Security numbers,” reported the Las Vegas Sun. Details of the cyber-attack continue to emerge.

Sheldon Adelson‘s newest panic tactic began airing yesterday. It’s so derriere-garde in its Red Scare methods, you expect the announcer to yell, “The Russkies are coming!” Ironically, by stressing the convenience of Internet gambling the TV spot makes it look that much more appealing. Las Vegas Sands‘ own internal money controls have drawn federal scrutiny, so Mr. Glass House is Continue reading →

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Massachusetts slams Mohegans, Foxwoods; Mohegan slams Wynn

Posted on February 11, 2014 by David McKee

CoakleyFollowing a stinging expose of Mohegan Sun and Foxwoods Resort Casino‘s habit of placing liens on the homes of casino debtors. Massachusetts Attorney General Martha Coakley was moved to action. She is urging the Massachusetts Gaming Commission to prohibit the “deeply concerning” practice in the Bay State. “This story highlights the need for a robust set of consumer protection regulations before these establishments begin operations,” Coakley wrote of the Boston Globe‘s scoop. The timing of the revelations couldn’t be worse for the Mohegan Tribal Gaming Authority, whose casino application is currently before the MGC. (Foxwoods’ Fall River project is in a very nascent stage.)

For its part, the commission has yet to write the rules under which credit is extended. Mohegan Sun, which was sufficiently stung to write a defensive letter to the Globe, issued a public statement, telling Coakley, “We have always indicated our willingness to work with the Gaming Commission within whatever regulatory framework they establish.” So they’ll still come after your house unless the MGC explicitly prohibits it. For her part, Coakley believes that taking away this debt-collection tactic may compel casinos to be more circumspect in extending credit. That would be no bad thing, since it was the two casinos’ own imprudence in issuing markers that got them into the home-lien business.

Mohegan Sun, for its part, is busy trying to Continue reading →

Posted in Environment, Foxwoods, Massachusetts, Mohegan Sun, New York, Regulation, Steve Wynn, Taxes | 1 Comment

Macao’s incredible jackpot; Execs on the move

Posted on February 11, 2014 by David McKee

Grand-LisboaIf you think the emergence of Macao as the gambling capital of the world has been amazing, you ain’t seen nothin’ yet. That’s the essence of a new report from Nomura Securities. It predicts that the Macao market has the potential to double, reaching $80 billion a year. I repeat, $80 billion a year. Why? In part because so many Chinese have yet to visit the enclave. As pundit Shuli Ren writes, “in an under-penetrated market, supply drives growth. As more casinos become available in Macau, the pie will expand with a multiple effect.” Nomura calculates that Macao has a very low penetration rate and that last year’s visitation numbers could increase twelvefold before the market reaches maturation. That’s 217 million Chinese (and others) having a fiddle in Macao’s casinos. Consider this: Continue reading →

Posted in Affinity Gaming, Colorado, Harrah's, IGT, Internet gambling, Macau, Melco Crown Entertainment, Sheldon Adelson, Stanley Ho, Wall Street | Comments Off on Macao’s incredible jackpot; Execs on the move

Quote of the Day

Posted on February 11, 2014 by David McKee

“They’re not building casinos in Dover or Wellesley.” — Stop Predatory Gambling Foundation Executive Director Les Bernal taking an oblique pot shot at Wellesley resident Gary Loveman.

Posted in Harrah's, Massachusetts | Comments Off on Quote of the Day

Churchill Downs gets singed, casino creditors get burnt

Posted on February 10, 2014 by David McKee

Showboat ACNick Ribis, a contentious figure in the Atlantic City casino scene is at it again. Or so contends a lawsuit by Churchill Downs. The racino company claims it paid Ribis $2.5 million “to develop and operate” Internet gambling on its behalf, that Ribis has acknowledged receiving the dough but refuses to pay it back. You see — and this is where things get interesting — Ribis was supposedly attempting to buy the Showboat casino from Caesars International. Churchill Downs contends that Ribis misled them on the progress of talks which, obviously, never came to fruition. Caesars supposedly broke off negotiations with Ribis, news it conveyed to Churchill Downs on Jan. 3, quoth the lawsuit.

The obvious point of interest is that Caesars would be willing to part with the Showboat while it bought the Atlantic Club Hotel (and closed it) and is now Continue reading →

Posted in Atlantic City, Churchill Downs, Colony Capital, Florida, Foxwoods, Harrah's, Horseracing, Internet gambling, Massachusetts, Mohegan Sun, Racinos, Revel, Sam Nazarian, Tribal | 1 Comment

The Midwest: First the good news …

Posted on February 10, 2014 by David McKee

Casino revenue in the Buckeye State vaulted 56%, as several new racinos came on line. The not such good news is that Ohio casinos are merrily cannibalizing themselves, down 16% on a year/year ohio_plate_08basis. Hollywood Columbus, in particular, continues to struggle, posting a lowly $128/slot/day. The most robust performance was a $17 million gross at Horseshoe Cleveland, but that must be set against a 19.5% reduction in winnings, as customers took their business to nearby racinos. No comparison was available for relatively new Horseshoe Cincinnati but Penn National Gaming properties missed Deutsche Bank estimates. Hollywood Columbus lost 16% of its business and Hollywood Toledo was off 19%. Nearby racino Scioto Downs, by contrast, only missed by 4%. Judging by the carnage that the incursion of racinos has caused, you almost have to wonder if Gov. John Kasich set up his state’s casino industry to fail. It’s certainly a market where supply has far outrun demand.

Both Penn properties missed J.P. Morgan estimates by double-digit margins, partly caused by Continue reading →

Posted in Boyd Gaming, Current, Hard Rock International, Harrah's, Illinois, Indiana, Iowa, Isle of Capri, MGM Mirage, Missouri, Neil Bluhm, Ohio, Penn National, Pinnacle Entertainment, Politics, Racinos, Wall Street | 1 Comment

Intimidation at Aria; Big sell-off at Wynn

Posted on February 10, 2014 by David McKee

SFrances_091129_2686Is Aria getting a little big for its britches? Nevada Gaming Control Board agents say they were harassed at the 4,000-room casino, specifically when trying to monitor the roulette wheel. “The complaint said two state agents who had not identified themselves were watching high rollers play roulette last October when a supervisor told them that the players did not want to be watched and threatened to call security,” reports Bloomberg. Furthermore, the agents report being told that “observation of the roulette wheel is not welcome.” Now, we all know about gamblers getting backed off tables because their play is too strong. But this is one of several incidents where an MGM Resorts International propery has been accused of trying to intimidate regulators. The gravity of such issues usually Continue reading →

Posted in Harrah's, history, Macau, MGM Mirage, New York, Regulation, Steve Wynn | Comments Off on Intimidation at Aria; Big sell-off at Wynn