Quote of the Day

Posted on February 26, 2014 by David McKee

““As it moves forward, there’ll be no shortage of bad blood, sniping and hired guns. It’ll get ugly because the stakes are so high. People have already spent millions of their own money.” — John D. Sabini, former chairman of the New York State Racing & Wagering Board, on casino rivalries in the Catskills region, where Penn National Gaming and Cordish Gaming projects threaten to cut the jugular artery between New York City and Sullivan and Ulster counties.

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Florida: Go big or go home

Posted on February 25, 2014 by David McKee

It’s casino expansion time again in Florida, where a major change of the status quo has been unveiled in the state Senate. Pending local approval, Miami-Dade County would get one megaresort (minimum investment: $2 billion) and Broward County would get another (ditto). That’s about as close as Sheldon Adelson will probably come to his desired ‘line of death,’ er, ‘zone of exclusivity.’ Outside those two counties, dog and horse tracks would be eligible for slot machines.

Will_WeatherfordLeaving aside the bill’s chances in the upper house, it faces a considerable obstacle in the lower chamber, where casino opponent and House Speaker Will Weatherford (R, right) has placed several preconditions on gaming expansion, not the least of which is a renegotiation of the existing compact with the Seminole Tribe — something Gov. Rick Scott (R) probably won’t do one nanosecond before he absolutely must. Scott is also said to look with disfavor upon the Senate’s proposal to create a Department of Gaming Control. Its gubernatorial appointees would dole out casino licenses, among other duties, but Scott apparently wants that remit to stay within his office. The three senatorial bills also contain some animal-friendly provisions. Dog tracks could hold fewer events per year but would have to report injuries suffered by greyhounds. The loudest howl of protest could be heard from Orlando-based activist John Sowinski. “It’s Continue reading →

Posted in Boyd Gaming, Current, Donald Trump, Florida, Genting, Politics, Racinos, Regulation, Sheldon Adelson, Tribal | Comments Off on Florida: Go big or go home

Penn, Cordish ready to rumble in Massachusetts, New York

Posted on February 25, 2014 by David McKee

Mohegan RevereIt seems just yesterday that applicants for slot parlor licensees were kicking the tires in Massachusetts and that Suffolk Downs threw its hat into the racino ring. And here we are today, with the Massachusetts Gaming Commission beginning deliberations on the one slot-parlor license it will issue and with Revere holding a decisive vote on the Downs. The latter election will be decided by the ladies of Revere, pundits tell us. That’s not good news for the Downs or for would-be racino operator Mohegan Sun. In statewide polling, women hold casinos in disfavor. It also has an above-average number of registered Democrats, which is believed to compound the difficulty.

Pro-casino lobbyist Kathi-Anne Reinstein is considered a serious player in the outcome. Her “support could help swing Continue reading →

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Nugget strikes gold; Hailing Caesars

Posted on February 25, 2014 by David McKee

Golden Nugget ACOne casino’s misery is another’s good fortune. The Golden Nugget in Atlantic City says it’s being swamped with new business ever since Caesars Entertainment and Tropicana Entertainment conspired to the euthanize the Atlantic Club. According to General Manager Tom Pohlman, “Our volumes have just gone through the roof. Fridays and Saturdays are stronger than the volumes we see in the summer.” (Hopefully this means Tilman Fertitta will rethink his plans to sell the Nugget.) To that end, it’s holding a job fair, thereby throwing a life raft to at least some of the former Atlantic Club workforce.

The sale price of the Claridge Hotel remains a deep, dark mystery, however. It must have been embarrassingly low …

In a display of questionable taste, Continue reading →

Posted in Architecture, Atlantic City, Cordish Co., Delaware, Downtown, Economy, Harrah's, Internet gambling, Maryland, MGM Mirage, Taxes, The Strip, Tilman Fertitta, Tropicana Entertainment | 1 Comment

Across the Pacific

Posted on February 25, 2014 by David McKee

murren_t198Rash or merely aggressive? That’s the question now that MGM Resorts International CEO Jim Murren has vowed to match Las Vegas Sands‘ Japanese investments dollar for dollar — as much as $10 billion. “We will overinvest early on to ensure, as we have done everywhere else, that we have properties that are built to last and that would stand additional competition,” Murren said. He was speaking at a conference sponsored by CLSA Asia-Pacific Markets, which estimates Japan to be a $40 billion/year casino treasure trove. As in Macao, Murren is more tractable to joint ventures than is Sheldon Adelson. The former sees MGM as owning 51% of its Japanese enterprise, much like MGM Grand Paradise in Macao. Caesars Entertainment has been downright promiscuous in its search for local partners, talking to 30 different companies. Be careful you don’t give away the store, Caesars (much as it did to get into Ohio and Maryland).

OsakaWynn Resorts also put in an appearance, with President Matt Maddox striking a note of caution. “The opportunity is very good, but you have to be careful in throwing out billions and billions of dollars without really understanding what the goals are of the city,” he said. It’s noteworthy that, while all its rivals are focused on Tokyo and Osaka (right), Caesars has Continue reading →

Posted in Harrah's, history, Japan, Macau, Maryland, MGM Mirage, Ohio, Sheldon Adelson, Steve Wynn, Wall Street | Comments Off on Across the Pacific

Of India and Indians

Posted on February 24, 2014 by David McKee

Taj_Mahal_2012Nevada tourism officials are looking beyond China and toward India. It’s country of 50 million passports and Lt. Gov. Brian Krolicki would like to capture more of them and more of the 600,000 Indians who visited the U.S. last year. “Our research shows that Indian travelers want a destination with shopping, fine cuisine, entertainment, culture, adventure and beauty, and Nevada has all of that and more,” Krolicki told the Las Vegas Sun. Nevada’s tourism office in China is celebrating its 10th anniversary and it was a boon to the Strip. A Vegas-tourism presence in New Dehli or some other Indian metropolis merely makes sense.

In a somewhat convoluted ruling, Gov. Steve Beshear‘s slow-moving crusade against Continue reading →

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Quote of the Day

Posted on February 24, 2014 by David McKee

“Unfortunately with this big influx of cash, [gaming] has tended to create a monoculture of economic development. The main economic development was always in gaming.” — Oneida/Menominee blogger Leah Sue Dodge, commenting on the vast economic disparity among Wisconsin‘s gambling-enabled tribes.

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Kansas City story

Posted on February 24, 2014 by David McKee

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Wild, wild East

Posted on February 24, 2014 by David McKee

maryland-liveIn the absence of a strong regulatory apparatus, Maryland Live, at Arundel Mills, is taking matters into its own hands. A 200-strong security force and a Batcave of surveillance technology search for the slightest nuance of untoward conduct. “A number of known cheaters came in and tried to take advantage of us, because we were a new operation,” says General Manager Rob Norton. The casino’s response has been remorseless. Card counters are 86’d and the number of people in Maryland Live’s “Black Book” runs into the hundreds. Considering all the redundancies and backstops built into the Cordish Gaming property, you’d have to be crazy to consider trying to cheat it … by many do, often in simpleminded ways. There’s even been a ripple effect, with crime falling in the immediate area, too — contrary to the picture gaming opponents enjoy painting.

Which isn’t to say that casino patrons don’t Continue reading →

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Hey, big spenders

Posted on February 21, 2014 by David McKee

MGM Resorts International has only just handing in its plans for National Harbor, near Washington, D.C., and already the tin cups are rattling. The project doesn’t sound half-fancy: “a MGM MD 2300-suite glass-tower hotel, 3,600 slot machines, 140 gaming tables, a concert theater, several restaurants, a spa, and high-end stores. The resort will have about 4,700 parking spaces.” No wonder that local groups are acting as though MGM is made of money. “Residents and community leaders say they want improvements made to busy Oxon Hill Road and Indian Head Highway. Others have discussed pressing MGM to invest in low-income and distressed neighborhoods near National Harbor and in the county school system.” Excuse me but isn’t much of that the responsibility of local government — and why aren’t they doing something about it?

In keeping with its diversity commitment, MGM has hired a minority-owned architectural firm and Continue reading →

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Sheldon’s boys; Tough questions for the industry

Posted on February 21, 2014 by David McKee

Improbably, Sheldon Adelson has found two U.S. senators to carry water for him on Capitol Hill as he tries to stem the tide of Internet gambling. Both Sen. Dean Heller (R) and Sen. Harry Reid (D) are working to reinstate the ancient Wire Act, which used to be the regulatory bullwark against which Internet-gaming hopes were dashed. However, they want to do it with a twist, leaving an exception for poker on the grounds that it is a game of skill not chance. Heller told the Las Vegas Review-Journal, “to have the wild wild West as an empire of gambling for the country would have some serious social implications. And I think that’s what [Adelson is] concerned with.”

Heller paints a picture of “devastation of bricks and mortar” if Internet gambling continues to flourish. “They’re corporate entities. They’ve got Continue reading →

Posted in Culinary Union, Harrah's, Harry Reid, Illinois, Internet gambling, Massachusetts, MGM Mirage, Politics, Problem gambling, Regulation, Sheldon Adelson, Technology | Comments Off on Sheldon’s boys; Tough questions for the industry

Case Bets: GLPI, Macao, Louisiana, Ely

Posted on February 21, 2014 by David McKee

CowpokeGaming & Leisure Properties, parent company of Penn National Gaming, held its first conference and discussed what Deutsche Bank‘s Carlo Santarelli, in a Freudian slip, called “key tenants [sic] of the … bull case.” We’re already seeing how GLPI intends to operate, 61 days into business. It’s closed its acquisition of the Casino Queen in East St. Louis, leased it back to ownership at $14 million a year and lent its new tenants $43 million. “For our part, we continue to believe that GLPI’s strategy is sound,” wrote J.P. Morgan analyst Joseph Greff. “We believe the pertinent question for investors is at what pace and size will the acquisitions occur, which of course remains to be seen.” Yes, considering the aggressive noises made by GLPI prior to its going into business, there’s much that remains to be seen.

If the Macao government is really going to shorten casino concessions on the major operators it’s got a damned funny way of showing it. In a move intended to shovel business toward the big casinos Continue reading →

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A vote for Leominster; Lopsided race at Suffolk Downs

Posted on February 20, 2014 by David McKee

Describing Leominster as “highly self-contained,” Innovation Group has recommended it for Massachusetts‘ lone slot license. While it may have been independently commissioned by the North Central Massachusetts Chamber of Commerce, the contents of the study will be mohegan005music to the ears of Cordish Gaming, prospective developer of the $215 million casino. Not only would cannibalization be minimized, tax receipts are projected as being $93 million higher than Penn National Gaming‘s project in Plainridge and $300 million greater than the Raynham Parx racino that Greenwood Racing is pursuing. The last number seems to ‘bake in’ the assumption that a Mashpee Wampanoag casino will be approved in Taunton, next door to Raynham. “Given the locations of the proposed resort license applications, our research demonstrates that the Leominster facility represents a more effective distribution of the Category 2 license,” concluded Innovation Group CEO Steven Rittvo. We can probably expect comparable studies on behalf of Parx and Penn to fly over the transom soon.

In the arms race for a casino (above) at Suffolk Downs, opponents are being decisively outspent by Mohegan Sun, which has poured $417,000 into the campaign. The opposing coalition is Continue reading →

Posted in Cordish Co., Economy, Election, Greenwood Racing, Massachusetts, Mohegan Sun, Penn National | 1 Comment

Macao: Who’s the boss?; Iowa racing, gone to the dogs

Posted on February 20, 2014 by David McKee

wynn_macaoJim Murren, Steve Wynn and Sheldon Adelson may find themselves held hostage to the temper of Sino-American relationships, if chatter from Chinese sources holds true. It’s being put about that casino concessions could be shortened to five years. Stocks of U.S. casino companies with Macao operations suffered from the report in the Hong Kong Economic Journal. “License holders may also be required to invest more in the non-gaming business to help diversify Macau’s economy during the interim review,” the report ran. When reached for comment, Secretary for Economy & Finance Francis Tam was mum, other than saying that caps on table-game growth would remain in place at 3% per year.

I don’t put much stock (pun unintended) in this report. The glacial pace of project approval in Macao means that it takes Continue reading →

Posted in Animals, Harrah's, Internet gambling, Iowa, Macau, MGM Mirage, Racinos, Regulation, Sheldon Adelson, Steve Wynn | Comments Off on Macao: Who’s the boss?; Iowa racing, gone to the dogs

And then there were three; Atlantic City under pressure again

Posted on February 20, 2014 by David McKee

cashbetNevada gaming authorities will have to start reporting the Silver State’s online-gambling revenue now that South Point has entered the lists under its Real Gaming banner. (We won’t get the numbers until late March.) The site ” is offering tournament play and cash games across multiple platforms, including PC and Mac computers, smartphones and tablet computers.” The true significance, however, is that now there are three Web casinos, the Nevada Gaming Control Board will have to start releasing revenue numbers for online play, giving us some insight to the appeal of Internet poker in the state and with players who create accounts here so that they can play when they visit. Real Gaming and Station Casinos‘ Ultimate Poker are quits for brand equity, so one expects WSOP.com to dominate the market.

As predictable as the sunrise, Democratic legislators in New Jersey and sounding the gong for casino gambling at the Meadowlands. (But would it have the entertainment value of Continue reading →

Posted in Atlantic City, Boyd Gaming, Election, Entertainment, Florida, Harrah's, Internet gambling, Michael Gaughan, Regulation, Station Casinos, The Strip, Tribal | Comments Off on And then there were three; Atlantic City under pressure again

MGM impresses Wall Street

Posted on February 19, 2014 by David McKee

MGM Resorts International didn’t meet Wall Street‘s consensus for the last quarter of 2013, losing eight cents a share instead of earning $0.07 EPS. But analysts were in a forgiving mood. After MGM Grand Macauall, the company had lost $2.50 a share just a year ago. Not even cost escalation on MGM Cotai (now $2.9 billion) could dampen what CEO Jim Murren called “our best operating performance since the recession.” Deutsche Bank‘s Carlo Santarelli was moved to significantly upgrade his earnings projections for the next two years, writing, “Macau estimates, given meaningfully stronger mass results, drive the bulk of our upward revisions … As for the LV Strip, the key differentiator in the MGM story in our view, we expect the bulk of the mix driven RevPAR gains will be recognized in the 1Q14. While the cadence of business remains healthy, it appears as though the majority of the … convention room night mix improvement in 2014 will occur in the 1Q14.” Macao also drove better-than-expected cash-flow numbers.

In the last quarter of 2013, Bellagio ($299 million, -8.5%) and MGM Grand ($250 million, -9%) were slightly down while Mandalay Bay ($197 million) increased a whopping Continue reading →

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Sands: Hacked and heckled

Posted on February 19, 2014 by David McKee

If Sheldon Adelson hasn’t come to regret his ‘nuke Iran‘ rant he may soon do so. While Las Vegas Sands struggles to make its Web sites fully functional again, Adelson’s cyber-tormentors are youtube_screentaking a victory lap. A “Zhao Anderson” posted an 11-minute video to YouTube, emblazoned with taunts and showing proprietary company data of the most sensitive nature. Also, Sands officials are having to admit that the damage was worse than customers and media were initially led to believe. “We have now determined that the hackers reached at least some of the company’s internal drives in the U.S. containing some office productivity information made up largely of documents and spreadsheets,” conceded spokesman Ron Reese. “We … are continuing to investigate what, if any, customer or additional employee data may have been compromised as part of the hacking.” In other words, Sands doesn’t know how bad the damage is. If Adelson isn’t chilled by that, he ought to be.

Reese says “said the company did not know about the additional incursions” into employee data and a map of the company’s internal networks “until it started investigating the video,” according to The Associated Press. Continue reading →

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Wranglers find new home; Riding El Loco

Posted on February 19, 2014 by David McKee

plaza-picHaving been turfed out of The Orleans, the Las Vegas Wranglers hockey team has been bereft of a home. But they’ve paired up with Tamares Gaming in an unusual move. The Wranglers — rink, stands, zamboni and all — will play in a 3,500-seat, fabric arena atop the Plaza Hotel. This will mean cannibalizing some tennis and basketball courts, but the supporting structure has been deemed solid enough, having been designed for parking. (A nearby swimming pool will be spared.) Tamares will also contribute the fifth floor of its south tower, destined for locker rooms and “medical space.” The team and casino will split F&B revenue. In an ominous note for fans, the Wranglers are going to “reevaluate” ticket prices for next season.

Wranglers President Billy Johnson calls the whole thing “funky” and that it is. He’s also Continue reading →

Posted in Bally Technologies, Boyd Gaming, Downtown, Entertainment, MGM Mirage, New York, Racinos, Sports, Tamares Group, Technology, The Strip | Comments Off on Wranglers find new home; Riding El Loco

Venetian restored; Mobile gaming ascendant

Posted on February 18, 2014 by David McKee

Sheldon_AdelsonOne of the 19th century’s greatest minds was dragged kicking and screaming back into the 21st century when Las Vegas Sands fully restored its Web sites. No more horse-and-buggy rides or reading by candlelight for Sheldon Adelson. It’s back to the present. The ongoing mystery over who struck at Sands’ Internet presence testifies both to the number of Adelson’s enemies but — in this interest — their persistence. “Cybersecurity experts say it could have taken several months for so-called hacktivists to complete an attack on Sands’ networks,” wrote The Associated Press‘ Hannah Dreier, in a chilling sentence. Whoever’s got it in for Sheldon, they’re patient — and they struck deeper than ever previously thought.

It’s too soon for Sands to take a victory lap. Employee e-mail is still down and it’s unknown what (or how much) sensitive customer information was snagged. After undergoing the cyber equivalent of Continue reading →

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Shilling for Adelson; Saturation comes to Pennsylvania

Posted on February 18, 2014 by David McKee

After the 9/11 attacks, New York State then-Gov. George Pataki (R) was only to push casinos through as a form of economic stimulus. Now he’s a sock puppet for Sheldon Adelson, preaching the evils of Internet casinos. He’s been parroting the two main talking points of Adelson’s jihad: terrorism and money laundering. In illogical Adelson fashion, Pataki reiterated that choosing to go to a casino to gamble is somehow a morally superior, “conscious” activity. Pataki, like Adelson, favors the dubious “solution” of sticking our heads in the sand and pretending Internet gambling will just go away. (Their naive faith in the restraining power of the physical casino is touchingly childlike and practically religious.)

Pennsylvania casinos hit the wall hard last month, with steep declines in business at many of them. An increase in table revenue at Sands Bethlehem ($35 million, gross) kept that property to Continue reading →

Posted in Cannery Casino Resorts, Greenwood Racing, Harrah's, Isle of Capri, Massachusetts, MGM Mirage, Neil Bluhm, Penn National, Pennsylvania, Politics, Problem gambling, Sheldon Adelson | Comments Off on Shilling for Adelson; Saturation comes to Pennsylvania