A fistful of intangibles

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

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.

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Bounty at Sands, Caesars

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

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Now everybody wants it

CircuitsLike a Smith College student ‘experimenting’ with same-sex dalliance, the Massachusetts Lottery wants experimental online gambling, with a view toward possible for-money play somewhere down the road. “[I]in the interests of preserving and protecting the Lottery, we simply want to ensure that we have a solid understanding of the technology and logistics of online gaming should this market space become more competitive” ran the official explanation. “If we do not start to prepare for the future generation of lottery players we’ll find ourselves with a smaller player base.”

The Lottery would theoretically go ‘live’ with Internet gambling when the state’s casinos open, escalating the warfare for customers’ gambling dollars. A bill to authorize for-money online-lottery play has already been introduced in the state Senate. It has the support of the state treasury’s Online Products Task Force. Even if online gambling has been an early disappointment in Delaware and New Jersey, look for other states to start nibbling at the apple … as Bulgaria is already doing.

Like his Macao rival, Sheldon AdelsonLui Che-woo has no use for Galaxy Cotai 2Galaxy Cotai 2
retirement. The 84-year-old oligarch of Galaxy Entertainment is planning massive expansion on his home turf and now has his eyes on the U.S. It would be a logical extension of a real estate empire that includes 13 Yankee hotels already. He’s a man who thinks big: He’s spending $2.6 billion on the second phase of his Cotai Strip expansion and $7.75 billion on Phases III and IV.

The slightly eccentric (he wears hats indoors) Che-woo is keeping mum on his American plans. He has committed an aggregate $5.2 billion to Taiwan and Japan, should casinos be legalized in either country. After posting a $1 billion-plus profit last year, Galaxy would be well-equipped to go shopping in the U.S., where casinos are a buyers’ market. Perhaps Carl Icahn has finally found someone who will rid him of Fontainebleau. It’s worth the price of a phone call.

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Showdown over Philadelphia

Philly at nightWe need to offer something more than a casino,” said Pennsylvania Gaming Control Board member Gregory Fajt at yesterday’s hearings, at which The Provence and Hollywood Casino made their cases. The Provence promised to be something and Hollywood, almost defiantly, offered more of the same … or maybe less. Convenience, convenience and convenience were its selling points. In “every market across the country, what comes back is convenience,” said Penn National Gaming COO Jay Snowden. With an attitude like that, Penn is probably out of the running already.

If it wasn’t, then CEO Tim Wilmott stuck his foot squarely in his mouth. “We don’t want to end up like Revel,” he said, by way of defending his company’s multi-phase development strategy. Using such a notorious failure by way of an example suggests a borderline pessimistic attitude toward the Philadelphia market.  And do you remember that promise Continue reading

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Revel: Has Loveman gone insane?; East St. Louis gets the shaft

You’d think Caesars Entertainment had its hands full with four active casinos in Atlantic City and the defunct Atlantic Club Hotel. But no, CEO Gary lovemanLoveman is reported to be considering a bid for $2.6 billion Revel Resort, which Caesars could get for a fraction of its face value. (It is unknown whether Loveman was also being fitted for a straitjacket.) Leave aside the fact that Revel has problems that Caesars could do very well without. New Jersey law bans “undue economic concentration” among casino operators. By adding mammoth Revel to its portfolio, to say nothing of mothballed Atlantic Club, how could Caesars not be flouting that route?

True, Total Rewards could be used to boost customer counts at Revel, but a lot of that business would be borrowed (or Continue reading

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Another thousand slot machines

Penn National Gaming — sort of a “favorite son” candidate for a Philadelphia casino — is first up in presentations to the Pennsylvania Gaming Control Board for the fifth Philly-area casino license. Bart Blatstein‘s and Isle of Capri Casinos‘ $700 million The Provence plays the afternoon session, with other contenders to be heard from Wednesday and Thursday. Blatstein is painting one of the rosier pictures of cannibalization, predicting that 50% of The Provence’s business will come from other casinos.

Spectrum Gaming Group, which conducted the study on The Provence’s behalf, foresees Market8, Live!Philadelphia and Casino Revolution MARKET9taking about two-thirds of their business from other casinos, while 70% of Hollywood Casino‘s revenue would be siphoned from rival casinos. Of course, since Blatstein commissioned the study from Spectrum, you can argue that it found what he wanted it to find. Market8 (left) retorts that only 22% of its revenue would be “long pig,” compared to 31% cannibal fare at The Provence. Consulting firm PFK produced a reverse analysis of Spectrum, contending that any of the south Philadelphia casinos would generate 65% new revenue. Casino Revolution boasts it will produce 83% new revenue … the sort of pie-in-the-sky talk we’ve grown accustomed to Continue reading

Posted in Cordish Co., Economy, Greenwood Racing, Isle of Capri, Penn National, Pennsylvania, Regulation, Tomato King Procacci | 2 Comments

Foxwoods shows persistence & other Case Bets

Foxwoods Massachusetts is back and going all in with a proposal for a $750 million facility in Fall River. This means there is finally a heavyweight Bordencontender for the southeastern regional license — albeit a company that voters tossed out on its ear in Milford. But perhaps the home town of Lizzie Borden will be more hospitable. The big announcement is expected next week. Unlike New Bedford rival KG Urban Enterprises, Foxwoods does not yet have a site.  The electorate is believed to be tractable and the city is in a highly strategic location, poised between Boston and Providence. Happily for Foxwoods, since it already paid an application for Milford it doesn’t have to pony up another 400 grand to get back in the action. The Fall River initiative is wholly Foxwoods’ — but City Hall is turning a receptive ear to the project.

Las Vegas companies getting in on tribal gambling might seem like bigfooting — were it not for the fact that tribes welcome it. Why? Continue reading

Posted in California, Election, Foxwoods, Harrah's, Horseracing, Internet gambling, Marketing, Massachusetts, Ohio, Racinos, Texas, Tribal | 1 Comment

Momentum builds in Japan

japan_flag_01-300x300We’ve been hearing about the U.S. casino companies that want to build megaresorts in Japan, as that company gears up for the 2020 Olympic Games. That’s all well and good. But major forces in Japanese industry are putting some elbow grease into the effort. Convenience store chain Lawson and brewer Suntory have lent their support. “The group will work closely with lawmakers in support of the bill, make policy recommendations in collaboration with local governments and companies, and advocate for legalization to the public, [former Japan Tourism Agency director Toshiro] Mizohata said.” Suntory executive veep Shingo Torii and Lawsons CEO Takeshi Niinami will be among the pro-casino voices.

U.S. casino companies find themselves in the unaccustomed position of being supporting players, but don’t count them out … especially with a potentially $15 billion market at stake.“Foreign investment is viewed as essential to success in the two major cities, and hence we suspect Continue reading

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No fun in Florida; Playing it safe in Illinois; Big flush at Borgata

rick-scottGov. Rick Scott (R, left) doesn’t want any gambling-expansion talk cluttering up his reelection bid, spoiling the fun for the rest of us. So no racinos, Naples or Palm Beach, no new gambling offerings, Seminole Tribes, and no destination resorts, Genting Group or Las Vegas Sands. There’s some vague talk about “tightening loopholes.” The legislature is in no mood to play either, except for Senate Gaming Committee Chairman Garrett Richter (R). He’s crafting a bill that would have goodies for Naples, Palm Beach and Miami and cut back greyhound racing … but few seem to believe he will succeed. The price of legislative assent would be to put any future changes in gambling law up to a statewide vote, otherwise known as a death sentence.

An unlikely alliance of the Seminole Tribe and Disney Corp. is opposing any change in the state’s compact with the tribe, some provisions of which expire Continue reading

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Quote of the Day

Live Philly“It is irrelevant to us . . . that other applicants have projected, or that they have used exceedingly aggressive assumptions. Our policy is to tell it like it is, not to embellish numbers.” — Cordish Gaming Managing Partner Joe Weinberg, defending his company’s conservative $203 million slot-revenue projection against the flashier $363 million predicted by Market8, in Philadelphia.

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D-Day in Philly; Al Sharpton’s casino-boss buddy; Angst in Maine

It’s death-grapple time in Philadelphia, where five competing proposals will be aired for the final time before the Pennsylvania Gaming Control Board. Even a supporter of casino expansion in the city, like Jeffries LLC‘s John Maxwell, concedes there will be dilution of the market. “Obviously the existing guys will not be as profitable as they are now, but we still think they will be quite profitable.” With support like that, who needs opposition?

Centrally located and currently nothing more than a parking lot, Ken Goldenberg‘s $500 million Market8 has emerged as the favorite. Unfortunate Blatsteinproximity to schools and houses of worship appears to have made Bart Blatstein‘s (left) $700 million The Provence almost as much an outside contender as Joseph “Tomato King” Procacci‘s $428 million Casino Revolution. Well outside of downtown — and possibly way out of contention for that reason — are the Hollywood Philadelphia casino being pushed by Penn National Gaming and the Philadelphia Live! one backed both by Penn nemesis Continue reading

Posted in Alabama, Churchill Downs, Cordish Co., Cosmopolitan, Entertainment, Greenwood Racing, Maine, New York, Penn National, Pennsylvania, The Strip, Tomato King Procacci, Tourism, Tribal | Comments Off on D-Day in Philly; Al Sharpton’s casino-boss buddy; Angst in Maine

Getting serious in Massachusetts; i-Flop in Delaware

CoakleyA drive to repeal Massachusetts‘ casino-enabling legislation has got Bay State operators-to-be taking it very seriously. They’ve filed with the state Supreme Court to have it stricken from the state ballot. (The state’s attorney general, Martha Coakley, pictured, has already ruled it an unconstitutional taking of property but the courts have been unsympathetic.) They’re fighting on two fronts, trying to fend off the bluenoses while also striving for the approval of the Massachusetts Gaming Commission. If the prudes win, $280 million in license fees will be forfeit and the casinos’ Massachusetts courtship will be an expensive exercise in futility. “It would be a gamble” says one pundit, and that’s rather an understatement for a change.

If you’re Steve Wynn and you get your license in May, what do you do while waiting for the outcome of a November referendum? The repeal drive will have a Continue reading

Posted in Cannery Casino Resorts, Delaware, Election, Illinois, Internet gambling, Massachusetts, Mohegan Sun, Penn National, Regulation, Slot routes | Comments Off on Getting serious in Massachusetts; i-Flop in Delaware

All stories lead to Massachusetts

MGM Springfield 3Since it faces no competition in western Massachusetts, it was mostly theater when MGM Resorts International CEO James Murren presented the project to the Massachusetts Gaming Commission. The latter will have months in which to mull the enormous volume of supporting documentation and the values of the project. But Murren’s testimony was mainly for show, although it allowed him to make the point that, with 19 points of ingress and egress, MGM Springfield would allow patrons to reach amenities without being marched through the casino floor. Now comes the tantalizing suspense of waiting to see whose applications are accepted and whose are not.

Internet gambling is still in its legal infancy but that’s not deterring state Sens. James Whelan and Raymond Lesniak. They want New Jersey to enter into interstate and international compacts to open Continue reading

Posted in Atlantic City, Boyd Gaming, California, Harrah's, International, Internet gambling, Massachusetts, MGM Mirage, Pennsylvania, Taxes, Tribal | Comments Off on All stories lead to Massachusetts

IGT disappoints, GOP hesitates

International Game Technology reported 1Q14 results that were great, if you read the Las Vegas Review-Journal,  and disappointing if you read Wall Street analysts. Profits were up 21% — but revenue growth slowed to 2%. Social gaming was credited with much of what revenue increase there was. Investors were also warned that the cost of the DoubleDown purchase would begin to be felt.

WeidmannBoardDomestic sales of machines grew but 7%, not impressive when compared to interactive revenue (up 41%) or DoubleDown Casino, soaring 57%. Visitation to the site is also up 17% from a year ago, as punters visited more often and played more. However, DoubleDown founders Greg Enell and Cooper DuBois have up and left IGT, causing even more agita among analysts, although they may have been merely serving out non-compete agreements. A company spokesman tried to Continue reading

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Quote of the Day

“As we look ahead in 2014, we see limited reasons for near-term optimism for a rebound in regional gaming markets given continued bouts of severe weather and the tepid economic recovery, which has been even more muted in the regional customer demographic.” — Deutsche Bank analyst Carlo Santarelli, in a note to investors.

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Wynnside Wynncore

wynn 02_t178If you’re registered on the guestbook at Wynn Las Vegas or Encore you are an invitee to “our new Wynn Insider program. As a Wynn Insider you will be the first to receive information about our resort and you’ll have access to exclusive offers.” An initial newsletter is promised soon. Wynn Resorts is also making a bevy of “rate promises” for members of Wynn Insiders, such as no booking fees and personally tailored resort experiences, not to mention “no hidden fees.”

Meanwhile, the tearing up and relandscaping of Bally’s Las Vegas proceeds at a furious pace. Whatever one things of The Quad, Linq, Casino X (the currently nameless ex-Bill’s Gamblin’ Hall) or the Ferris wheel, Caesars Entertainment has brought them to fruition with great alacrity.

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Quote of the Day

Singapore_MB_Sands_5_“After a 2011 survey showed an increasing proportion of low-income gamblers playing with ever-larger sums, [Singapore] decided to prohibit entry by the unemployed, people on welfare and people who have filed for bankruptcy protection.” — the New York Times, carrying its anti-gambling crusade throughout the Pacific Rim and Asia.

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Palmetto State stalemate; Wynn strikes again

south_carolina_flagBack in 2005, the State of South Carolina, bowing to the inevitable, legalized cruise-to-nowhere gambling ships that operate out of Palmetto State ports. Now the Catwaba Indian Nation hopes to leverage that legislation into VLTs for itself. The state says that the law is moot, since the gambling takes place outside state waters. Rejoins tribal attorney Billy Wilkins, “The question is what was authorized, not where it was authorized.” The Catawbas’ case was rejected at the appellate level in 2012, so it’s been pursued to the state Supreme Court.

The tribe is also pursuing a casino across the state line, in North Carolina. Its Supreme Court case rests upon one of Continue reading

Posted in Atlantic City, Churchill Downs, Harrah's, Horseracing, Internet gambling, Kentucky, South Carolina, The Strip, Tribal | Comments Off on Palmetto State stalemate; Wynn strikes again

The importance of being Steve Wynn

steve-wynnHow can you pitch a multi-billion-dollar casino in largely extemporaneous fashion, bereft of glossy renderings or a video fly-through. By being Steve Wynn, that’s how. His pitch to the Massachusetts Gaming Commission seems to have been less about touting the virtues of his own casino proposal but shredding rival Mohegan Sun/Suffolk Downs. Which he pretty much did. “If Wynn Resorts is selected, we have only one interest, this casino in Massachusetts. We don’t give a damn about Connecticut,” he remarked. He also made a good point when he noted that Suffolk Downs’ plan to silo its hotel, gambling and retail operations presented a “coordination nightmare.”

Mohegan Sun had emphasized its “old-fashioned New England know-how and New England values” which also had the unintended consequence of reminding everyone of its New England proximity to Continue reading

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