Pathbreaker

Posted on February 6, 2014 by David McKee

 

Las Vegas‘ history is incomplete without any mention of Paul Revere Williams, the pathbreaking ‘architect to the stars’ who designed some of Sin City’s most iconic non-casino buildings.

Posted in Architecture, history, The Strip | Comments Off on Pathbreaker

Foxwoods on the clock; Japan, land of opportunity

Posted on February 6, 2014 by David McKee

Scott_ButeraFoxwoods Massachusetts has most of what it needs: money, civic support, a name brand. But it doesn’t have a site. Foxwoods and Fall River have given themselves 30 days to remedy that, a tight timespan, further complicated by the likelihood that they’ll have to negotiate with multiple property owners in order to compile a footprint big enough for “a 140,000-square-foot gambling floor, approximately 20 restaurants, a 350-room hotel, a ‘name-brand’ shopping mall, an entertainment arena, a convention center and spa.” That’s a pretty tall order and would be even in Las Vegas. Factor in the number of pieces of land CEO Scott “Woody” Butera has to cobble together and one doesn’t envy him his job.

“Lackluster” was one word used to describe casino performance in Maryland, which had one of its poorest recent months of the table game era. It’s worse than it looks because Continue reading →

Posted in Cordish Co., Foxwoods, Japan, Maryland, Massachusetts, Pennsylvania, Problem gambling | Comments Off on Foxwoods on the clock; Japan, land of opportunity

Penn gets frostbite; Virginia passes up gambling

Posted on February 6, 2014 by David McKee

hollywood kansasCaught between harsh weather and a tighter competitive squeeze, Penn National Gaming posted 4Q13 revenues that were 13% down from last year. The $645 million loss drew a surprisingly muted reaction from gaming analysts. The company is already drastically reducing revenue and EBITDA expectations for 1Q14. Rent charged to Penn’s REIT parent, Gaming & Leisure Properties, pretty much sank the company’s fourth quarter, with other, aforementioned factors applying the coup de grace. Some of the loss was attributable to stock-based compensation, a bit of self-dealing that Penn could do very well without right now.

Penn execs talked up new projects, including two Ohio racinos and a tribal casino near San Diego, as well as the completion of the overhaul of Casino Hollywood St. Louis (formerly Harrah’s Maryland Heights). If chosen for a slot parlor in Massachusetts, Penn predicts it can have a temporary facility up by midsummer or soon afterward. Debt was low, at Continue reading →

Posted in California, Louisiana, Macau, Missouri, Ohio, Penn National, Politics, Problem gambling, Racinos, Sheldon Adelson, Stanley Ho, Steve Wynn, Taxes, Wall Street | Comments Off on Penn gets frostbite; Virginia passes up gambling

Through a looking glass, brightly

Posted on February 6, 2014 by David McKee

So much for my crystal ball. Two projects that I openly doubted are now close to fruition and a third is showing fitful signs of life. (Another, Howard Bulloch‘s Ferris wheel, appears to be being SLS Las Vegas Exteriordismantled.) Yesterday, SLS Las Vegas announced Labor Day Weekend as its opening date. The cost of the project is holding steady at $415 million, leading me to speculate that the most rearward of the hotels won’t on line at opening. That’s OK. There will plenty else to see and do. Sam Nazarian‘s SBE Entertainment will run all the amenities, enabling SBE to capture revenue across the food, entertainment and gambling platforms. (There’s still no sign of Nazarian having applied for a gaming license but the presence of Wynn Resorts veteran Rob Oseland hardly suggests that the casino will be outsourced, as it was in the Nazarian/Sahara era.)

Despite much skepticism and opprobrium, Nazarian is making good on a public promise that followed the Sahara’s closing. Further down the Strip, Caesars Entertainment has been Continue reading →

Posted in Alex Yemenidjian, Cannery Casino Resorts, Entertainment, Hard Rock Hotel, Harrah's, MGM Mirage, Planet Hollywood, Sahara, Sam Nazarian, The Strip, Tilman Fertitta, Tourism, Transportation | Comments Off on Through a looking glass, brightly

“Million Dollar” hokum

Posted on February 5, 2014 by David McKee

Judging by the sea of happy, AARP-eligible faces behind us (on a Sunday night, too), Harrah’s Las Vegas has a long-term winner in Broadway pickup Million Dollar Quartet. The crowd dug the music, the period outfits, the liberal artistic license and seemed willing to forgive the glaring anachronisms. (The recording booth features tape machines from several different decades and no producer worth his salt would roll session tape at low-fidelity 3.75 inches per second.) The plot is a tissue — of the Kleenex sort — derived from an historic gathering of Elvis Presley, Johnny Cash, Carl Perkins and Jerry Lee Lewis at the studios of Sun Records. There’s a fifth vocalist, a girlfriend of Presley’s, who’s there just to be The Girl, sing “Fever” and cause erotic tensions among the menfolk.

The dialogue features lines like, “Elvis just called; he’s up the street.” Yes, it’s that bad. Only a shrugged, laconic “I’ve been everywhere” from Cash, when asked to account for his whereabout, acknowledges the Continue reading →

Posted in Entertainment, Harrah's, history | Comments Off on “Million Dollar” hokum

Penn, Parx fold in Maryland; Home rule in N.Y.?

Posted on February 5, 2014 by David McKee

bs-md-greenwood-protest-20131216-001In a rare moment of grace, Penn National Gaming agreed not to sue Prince George’s County over the award of a Maryland casino project to MGM Resorts International. (As expected, Greenwood Racing also signed away its prerogative to litigate.) Perhaps the fact that Penn’s Rosecroft Raceway proposal got not one vote had something to do with the decision. With the stroke of a pen, the two companies regained an aggregate $46.5 million in licensing fees. And they can go back to jockeying over who gets a slot parlor in Massachusetts and a casino in Philadelphia. Greenwood and Penn are butting heads wherever there’s a battlefront, seems like.

Taking a page from Massachusetts, lawmakers in New York State are floating the idea of  Continue reading →

Posted in Cantor Gaming, Economy, Greenwood Racing, Macau, Maryland, MGM Mirage, New Hampshire, New York, Penn National, Problem gambling, Regulation, Sports | Comments Off on Penn, Parx fold in Maryland; Home rule in N.Y.?

Sheldon Adelson vs. the world

Posted on February 5, 2014 by David McKee

A fissure has opened within Big Gaming. Sheldon Adelson‘s efforts to push anti-Internet-casino legislation will be officially opposed by an industry lobby Sheldon_Adelson dye jobthat includes MGM Resorts International. Both MGM and the American Gaming Association are constituents of the Coalition for Consumer & Online Protection. Described as a collection of “commercial casinos, equipment manufacturers, Indian tribes and technology companies,” the CCOP argues that unlicensed, black-market Internet gambling is more legally and morally hazardous than its legalized counterpart. The AGA, MGM, etc., have been gearing up for this for some time, having done polling last month.

Channeling memories of World War II, Adelson’s own lobby responded Continue reading →

Posted in Economy, Election, Florida, Genting, Internet gambling, MGM Mirage, Politics, Sheldon Adelson, Tribal | Comments Off on Sheldon Adelson vs. the world

A cautionary tale

Posted on February 5, 2014 by David McKee

Many people think tribal casinos are a panacea, a ‘license to print money.’ They should read the sad story of the defunct Santa Ysabel Casino. It was damned by many factors, including a poor location, small size and an opening that unfortunately coincided with wildfires in the area. But mainly it was a $50 million debt load that brought the property down. Tribal chairman Virgil Perez tried to shift the blame to “an intransigent county government unwilling to renegotiate its financial agreement with the tribe in the face of economic hardship.” He might have Continue reading →

Posted in Arizona, California, Tribal | Comments Off on A cautionary tale

The many faces of Steve Wynn

Posted on February 4, 2014 by David McKee

It’s great sport following the tortuous circumlocutions through which Wynn Resorts is putting itself, trying to square its varying positions on Internet gambling. El Steve declared himself against it in an interview with Jon Ralston, although he game himself a little wiggle room, too. Then it emerged that Wynn Resorts had been granted an online-casino license in New Jersey. Awkward.

Steve-Wynn-201198-1-402Wynn surrogate Michael Weaver was rushed into the breach with the following explanation: “our plans are on hold until we understand the business opportunity.” That’s somewhat at odds with Wynn’s own contention that geolocation and age-verification technology were bull manure. Further complicating the picture, Howard Stutz‘s sources told him “Wynn does not plan to financially back the effort by [Sheldon Adelson] to halt online gaming legalization in Washington, D.C., or state by state.” So Wynn is opposed — but he’s going to sit this one out?

While Wynn was busy reconsidering its reconsideration, Caesars Interactive — Wynn’s Atlantic City partner — was trying to make sense of it. Wynn had gone from Continue reading →

Posted in Atlantic City, Harrah's, Internet gambling, Macau, Massachusetts, Regulation, Steve Wynn | 1 Comment

Super Blowout

Posted on February 4, 2014 by David McKee

And, no, I don’t mean what happened on the field last Sunday at the Super Bowl. Nevada‘s sports books surpassed last year’s record $99 million handle and it wasn’t even close — $119 million. The nearly $20 million in profit that the books recorded was also a record amount. Since most bettors picked the “under” on the point spread, casinos cleaned up big — a 16.5% profit. They lost on some of the prop bets but that’s the risk in offering such exotic wagers.

Senator-RichterState Sen. Garrett Richter (R, right) isn’t exactly punting on casino expansion in Florida. However, despite opposition from the leaders of both chambers of the Sunshine State’s Legislature, he’s putting forward a bill that would permit destination resorts in Miami-Dade County and Broward County, the casino-friendliest parts of the state. There’s also talk of tidying existing Florida laws which don’t even define horse racing. “It’s not something that we necessarily want to become involved in. But it’s something that circumstances probably require us to do something about,” said state Sen. President Don Gaetz (R) sounding like a man being forcibly dragged into something he’d very much prefer to avoid.

* The Mashpee Wampanoags took a big step toward gaining a casino in Massachusetts when their compact with the state was gazetted by the Bureau of Indian Affairs. However, the tribe still needs to Continue reading →

Posted in Architecture, Election, Florida, Foxwoods, Harrah's, history, Massachusetts, Regulation, Sports, The Strip, Tribal | Comments Off on Super Blowout

Quote of the Day

Posted on February 4, 2014 by David McKee

““We’re talking about something that would turn back the clock on states like New Jersey. I’m stunned that this is a position that any attorney general would take. It essentially endorses a federal power grab to come in and tell states what they can and cannot do.” — Poker Players Alliance Executive Director John Pappas on Sheldon Adelson-backed legislation that would outlaw Internet gambling.

Posted in Atlantic City, Internet gambling, Regulation, Sheldon Adelson | Comments Off on Quote of the Day

The hypocrisy of Steve Wynn

Posted on February 3, 2014 by David McKee

Like a couple of crotchety codgers sitting in their rocking chairs, Steve Wynn has joined Sheldon Adelson in the “You kids get off my lawn” club when it comes to Internet gambling. (Not that he has allowed this to stop his pursuit of a New Jersey license.) In an interview with Jon Ralston, he raised many of the same concerns about underage access to Internet casinos. He’s not quite alarmist, thinking Washington gridlock will solve some of the problem: “They can’t agree on anything, especially something this esoteric.”

In fact, Wynn’s central concern isn’t that Little Johnny will spend the family dry but that federal legitimacy could come with heavy taxation. He also thinks it Wynnscould be co-opted by state lotteries (not a problem for Wynn in Nevada). Wynn also admits to feeling out of his element in cyberspace. “I know how to do that [in bricks and mortar]. But I don’t know how to do that on a 17-inch screen … The big problem I see is I don’t see the government letting us keep the money.” Hmmmm, so because you can’t do it, others shouldn’t have the opportunity? Still, if Wynn and Adelson are so het up about the “narcotic” effect of having access to gambling, perhaps Continue reading →

Posted in Atlantic City, Delaware, Economy, International, Internet gambling, Massachusetts, Pennsylvania, Racinos, Regulation, Revel, Sheldon Adelson, Steve Wynn, Taxes | Comments Off on The hypocrisy of Steve Wynn

Quote of the Day

Posted on February 3, 2014 by David McKee

“Audiences may have had the same reaction I did in my first review of Zarkana. I wrote that the character played by Paul Bisson ‘just seems to be trying so hard to tell us something. As he gesticulates and sings so dramatically, he makes us feel like we can’t help a poor foreign tourist get to Hoover Dam.'” — Mike Weatherford, on the newest (i.e., third) iteration of Zarkana, which is returning from hiatus.

Posted in Cirque du Soleil, Current, Entertainment, MGM Mirage | Comments Off on Quote of the Day

Super Bowl hits Vegas jackpot; Hope for Caesars overseas

Posted on February 3, 2014 by David McKee

Money“It was embarrassing, humiliating and unbearable,” but when the Super Bowl was over, Nevada sports books had cleaned up … except for that safety on the first play from scrimmage, costly for the Denver Broncos and the books alike. Heavy betting in the Broncos’ favor was a boon to the bookies, who very well may have set a record for amounts wagered on (to use a ridiculous Vegas euphemism) “The Big Game.” Betting handle last year nearly hit $99 million and this year’s was 3%-5% higher. Whoever laid 300 grand on the Seattle Seahawks will go home a happy camper, but most of the heavy action was laid in the Broncos’ favor.

Las Vegas‘ equivocal recovery had good news last year, as gambling revenue totaled over $11 billion (well below 2007 levels but Continue reading →

Posted in Aristocrat, Atlantic City, Bally Technologies, Boyd Gaming, Harrah's, International, LVCVA, MGM Mirage, Revel, Sheldon Adelson, Sports, Steve Wynn, The Strip, Tourism | Comments Off on Super Bowl hits Vegas jackpot; Hope for Caesars overseas

Quote of the Day

Posted on February 2, 2014 by David McKee

“[Oliver] Cromwell, who claimed to be acting in God’s interest with the more-or-less indiscriminate slaughter of Catholics, was a puritan. He fervently believed in simple dress, simple speech and an end to the cloying fancies of royalty and monarchs. And he specifically banned gambling, drinking, and sporting events. Failure to abide by his puritan moral code got you severe physical punishment, followed by death. It’s kind of like Caesars has selected the Ayatollah Khomeini as the avatar of their new casino.” — Launce Rake, on Caesars Entertainment‘s daffy new casino brand.

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

Double whammy in Beantown, feeding frenzy in Philly

Posted on January 31, 2014 by David McKee

CrosbyShould casino opponents succeed in getting a repeal of the state’s gambling law onto the November ballot — and win — Massachusetts will lose out on tax revenue it’s booked for the next fiscal year. It may also have to surrender the licensing fees paid by casino applicants. Massachusetts Gaming Commission Chairman Stephen Crosby says refunding those fees would only be the fair thing to do. (Legislators may well disagree.) To do otherwise might be an unconstitutional taking of property. As for any land that casinos have bought … well, they’re probably plain out of luck on that, although perhaps they could counter-sue Repeal the Casino Deal for what they’re out of pocket. And that’s a real concern with casino opposition gaining ground in the polls. Support has waned by eight points.

(In an unrelated story, Crosby has asked for the dismissal of a Continue reading →

Posted in Economy, Election, Indiana, Massachusetts, Neil Bluhm, Pennsylvania, Politics, Racinos, Regulation, Taxes | Comments Off on Double whammy in Beantown, feeding frenzy in Philly

Buoyancy in Vegas, contentment at Wynn

Posted on January 31, 2014 by David McKee

Vdara_Hotel_Spa_Exterior_2Despite somewhat less money being dropped on the Las Vegas Strip, revenue was up 13% last December, closing out a strong 4Q13. Statewide, revenue was up 10%, slightly over a billion dollars. Tighter slot hold on the Strip helped fuel a 16% increase and luck definitely favored the house on baccarat, up 32%, pushing Nevada revenues past the $11 billion mark for only the second time in five years. (Locals casinos, however, still had a subpar year.) Slot wagering was at a 23-year low as a percentage of total revenue. Lower table game play conspired to drive revenues down 10.5%. Locals play was down but, aided by tighter holds, revenue grew 13%. (Boyd Gaming‘s properties were up 11%.) North Las Vegas (up 24%) and the Boulder Strip (+15.5%) were particularly impressive, and Downtown grew revenue 13%. Except for eternally volatile Lake Tahoe (-25%) nobody really got wiped out, although revenue in Laughlin slipped 9% from last year. Reno was down less than a point, so congratulations, gentlemen. As for Internet poker, Union Gaming estimates that it generated only $200,000.

Propelled by a 25% increase in Macao revenues, Wynn Resorts beat Wall Street‘s expectations, posting a profit of $2.27/share. (Consensus was $1.74/share.) “The numbers as usual speak for themselves,” said Steve Wynn and truer words were never spoken. He also pronounced himself satisfied with Las Vegas results, which Continue reading →

Posted in Atlantic City, Boulder Strip, Boyd Gaming, Downtown, Economy, Lake Tahoe, Laughlin, Macau, Massachusetts, Mohegan Sun, Racinos, Reno, Steve Wynn, Taxes, The Strip, Tribal, Wall Street | Comments Off on Buoyancy in Vegas, contentment at Wynn

A fistful of intangibles

Posted on January 30, 2014 by David McKee

A produce warehouse and a fistful intangibles. That’s what Joseph “Tomato King” Procacci says will enable him to get his casino proposal up and running Joseph-G-Procacci-and-Dr-Walter-Lomax-Jrsix months ahead of any rival bidder. Touting his ‘juice’ in the community, the Tomato King laid out a two-stage proposal, starting with a quick-and-dirty, 1,500-slot casino. In another year, 900 more slots would be added and, eight months later still, a hotel would follow. (The role model is a seven-stage tribal casino, Silver Reef, in Washington State.) Pennsylvania Gaming Control Board members treated this with warranted skepticism, although PHL Local Gaming countered that only it had the space to expand to 5,000 slots. It also played up its 24-acre, family oriented entertainment annex, with zip lines and driving ranges.

Casino Revolution also has proximity to two interstates working in its favor. However, when faced with the question of cannibalization, Continue reading →

Posted in Architecture, Cordish Co., Cosmopolitan, Greenwood Racing, Massachusetts, Mohegan Sun, Regulation, Tomato King Procacci, Tribal | 1 Comment

Quote of the Day

Posted on January 30, 2014 by David McKee

Slot player“There’s regulations. There’s dogs. There’s integrated resorts. There’s taxes. There’s slots. There’s the compact. There’s decoupling. There’s injury reporting [for greyhounds]. If you take all those pieces of the puzzle, they don’t snap together that easily.” — Florida state Sen. Garrett Richter (R), enumerating the reasons why — after four hearings and a $400,000 study of gambling — legislators are likeliest to do nothing.

Posted in Florida, Politics | Comments Off on Quote of the Day

Bounty at Sands, Caesars

Posted on January 30, 2014 by David McKee

Sands_296096340Yesterday wasn’t a bad day to be Las Vegas Sands, which reported a 19% increase in net revenues. Sands Cotai Central (up 61%) led the parade, which also prominently showcased Venetian Macao (+36%) and Venelazzo (up 25%, driven by a record amount of table game drop). Sands’ Macanese revenue growth (28%) outpaced that of the sector as a whole (24%). Luck frowned upon Marina Bay Sands, down 8%, and Four Seasons Macao & Plaza Casino (-20%). You’d have to be a stock analyst not to like those numbers and, indeed, Wall Street was tossing around terms like “soft” today, with Deutsche Bank‘s Carlo Santarelli blaming the Marina Bay disappointment on “another bout of really poor hold.”

Even so, that was a Pollyanna forecast compared to this gloom-and-scenario for the Macao market, which predicts a massive Continue reading →

Posted in Culinary Union, Current, Harrah's, Macau, Maryland, Sheldon Adelson, Singapore, The Strip, Wall Street | Comments Off on Bounty at Sands, Caesars