Long siege on the Strip

Posted on January 22, 2014 by David McKee

In one of the more improbable but optimistic auguries the North Strip has seen, a private equity fund is trying to pry land away from Archon Corp. For the past 10 months, Esplanade Capital has been laying siege to Archon, bombarding it with press releases and trawling for disgruntled shareholders.

Sue LowdenLast March, Esplanade offered $17.50/share — a 62% markup — for Archon stock. No sale. The offer was upped again in June. Nothing doing. Earlier this month, Esplanade made a $19.25/share offer, a bid that it shared with the media by means of a letter to Archon Secretary Sue Lowden. (Remember her?) Its motivation? “The rapidly approaching sale of the Gaithersburg Maryland property for $76.3 million expected to close no later than April 30, 2014.” Esplanade is also swooning over the goofy All Net Arena & Resort proposed for Archon’s old Wet ‘n Wild acreage. Esplanade boasts of a silent partner “who has built an impeccable track record of several billion dollars worth of real estate acquisitions, restructurings, and recapitalizations over the past three decades.” Further escalating Continue reading →

Posted in Archon Corp., The Strip, Wall Street | 1 Comment

Seeking bargains in Japan, Delaware

Posted on January 22, 2014 by David McKee

Osaka‘s government is entertaining proposals for a $5 billion casino, to be Japan-flagbuilt on landfill — hoping to get ahead of the curve should the federal government approve legalized gambling. “We’d need global casino-operators’ involvement and expertise as the business is new to Japan,” said Osaka Prefecture Governor Ichiro Matsui. To that end, MGM Resorts International, Genting Group and Caesars Entertainment are among the supplicants who have made their way to the Land of the Rising Sun. (Caesars has 10 years of governmental courtship upon which to draw and potential equity partners who include Konami Corp.)

Matsui hopes to have the whole shebang up and running by 2020, in time for the Continue reading →

Posted in Delaware, Genting, Harrah's, Japan, Macau, MGM Mirage, Racinos, Taxes | Comments Off on Seeking bargains in Japan, Delaware

Quote of the Day

Posted on January 22, 2014 by David McKee

Geoff_Freeman“Whether they be illegal offshore websites operating right now, whether they be Internet sweepstakes cafes … If you want to be in the gaming business, there’s one way to do it, and that’s the regulated way, and we’re certainly going to be going after those who are doing it in a way that doesn’t protect the interests of consumers or communities.” — American Gaming Association President Geoff Freeman, in a lengthy and nuanced interview on the subject of Internet gambling.

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Case Bets: Massachusetts, Biloxi, Betcoin and Cosmo

Posted on January 22, 2014 by David McKee

In a TV interview, Massachusetts Gaming Commission Chairman Stephen Crosby tipped his hand, indicating that approval of MGM Springfield is far more likely than not. However, the MGC might be making some demands of its own, above and beyond what has been negotiated with Springfield and its surrounding communities. A decision on MGM Springfield will be made on May 31 at the latest, although that feels like an eternity. For once, I think I know how an MGM executive feels.


Demolition has commenced on one of Gary Loveman‘s lesser follies, the $700 million Biloxi megaresort that was to have been branded Continue reading →

Posted in Cirque du Soleil, Cosmopolitan, Derek Stevens, Downtown, Entertainment, Harrah's, Massachusetts, MGM Mirage, Mississippi, New York, Regulation, Taxes, Technology, The Strip | Comments Off on Case Bets: Massachusetts, Biloxi, Betcoin and Cosmo

Iowa: Gone to the dogs

Posted on January 21, 2014 by David McKee

It looks like the handwriting is on the wall for dog racing in Iowa. It’s a deplorable sport that brings in negligible revenue: an ancient curiosity kept alive by casino revenue. Dog tracks can’t even get the support of city fathers in Council Bluffs or Dubuque. The two tracks grossed a measly $6 million last year, numbers that would spell doom for any other sort of gaming facility.

Can one really argue with the proposition that $14 in annual casino subsidies “could be better spent on charitable causes in the communities where the tracks exist, or to make improvements at the adjacent casinos“? Certainly not in the face of vast public indifference to dog racing. State Sen. Pam Jochum (D) certainly has a point when she says, Continue reading →

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A ‘bit’ of progress

Posted on January 21, 2014 by David McKee

You can’t use bitcoin to gamble in Vegas … yet. But Derek Stevens is bitcoin-enabling both the Golden Gate and The D to accept the cyber-currency in selected parts of his properties, starting Jan. 22. Stevens is New Golden Gate.jpgcrediting customer input for impelling him to make the change. For instance, you can use it to pay for your hotel room or for on-property meals at American Coney Island and Joe Vicari’s Andiamo Steak House, not to mention stuff from the schlock shop. But no gambling.  “We would have to have an extremely high level of comfort with virtual currency of this kind in order for that to ever occur,” said Nevada Gaming Control Board Chairman A.G. Burnett. Indeed, Nevada regulators have balked at Continue reading →

Posted in Derek Stevens, Downtown, Economy, Indiana, Macau, New York, Ohio, Racinos, Technology, Tourism | Comments Off on A ‘bit’ of progress

One less brick in the wall

Posted on January 21, 2014 by David McKee

cards-casinoInternet gambling in New Jersey is still wet behind the ears but state Sen. Raymond Lesniak wants to move it to the grown-ups’ table. Specifically, he wants wide-area Internet poker play. Domestic (read: Nevada and New Jersey) and international ones could have a piece of the action, which the Garden State will tax at 17.5%. Any “rakes” on operators from other governments would be recompensed with a New Jersey tax credit. Gov. Chris Christie (R) is thought to favor the idea — which would require negotiating many a compact — in principle, though he’s vetoed previous versions, citing technicalities. This would also be a test case of the Obama administration’s new interpretation of the Federal Wire Act.

Supporters of legal gambling in Georgia are being advised to “hold their breath until next year,” according to Continue reading →

Posted in Atlantic City, Georgia, Internet gambling, Minnesota, Ohio | Comments Off on One less brick in the wall

Just when …

Posted on January 20, 2014 by David McKee

poker-cardYou thought Atlantic City had taken its lumps for January, but here comes an additional indignity. Borgata was forced to cancel part of its Winter Poker Open in mid-tourney. Casino surveillance detected the insinuation of fake chips into the tournament’s chip stacks. Prize money is being held in trust until more is known. Fortunately for players (yes, there is an upside), the scam was detected during the first event, minimizing the potential damage to players’ bankrolls. (Other events were allowed to proceed once the chip stacks had been vetted.)

Somehow, somebody (or a bunch of somebodies), secreted dummy chips into the 20,000-chip stacks they received with their $560 buy-in. “Thus far, Continue reading →

Posted in Atlantic City, Bally Technologies, Macau, MGM Mirage, Sheldon Adelson, Steve Wynn, Technology, Wall Street | Comments Off on Just when …

Winter of discontent

Posted on January 17, 2014 by David McKee

FoxwoodsIt’s been a grim December for regional casino markets. Even Pennsylvania, once a bastion of strength, ended 2013 with a slight year/year decline. In Connecticut, a 15% revenue decline was reported at Foxwoods Resort Casino, with handle off 21%. Mohegan Sun showed less volatility of handle but revenue was 8% down there, too. Foxwoods CEO Scott “Woody” Butera dismissed the numbers as “on par with what our expectations were for December,” in a startling display of candor. The pain is being felt in Hartford, whose share of slot lucre fell from $430 million to $296 million in 2013.

Harrahs NolaStatewide, Louisiana was off 4% from last year — worse when measured on a same-store basis, allowing for Margaritaville in Shreveport. The only riverboats showing more-than-incremental gains were Pinnacle Entertainment‘s two L’Auberge-branded ones. Among those having a Continue reading →

Posted in Boyd Gaming, Economy, Foxwoods, Harrah's, Louisiana, Marketing, Mohegan Sun, Penn National, Pennsylvania, Pinnacle Entertainment, Politics, Sheldon Adelson, Sports, Taxes, The Mob, The Strip, Tourism | Comments Off on Winter of discontent

Quote of the Day

Posted on January 17, 2014 by David McKee

“Tribal gaming authorities will take the first steps into the online gaming industry in 2014. They owe it to their memberships to examine this opportunity for the sake of sovereignty and self-sufficiency. We have the right to enter into the industry and, more important, we cannot afford to be left behind as gaming evolves and expands from the casino floor or bingo hall and onto players’ computers, tablets and smartphones.” — Jeff Voyles, CEO of Inter-Tribal Online Gaming Alliance, urging a swift tribal entry into Internet wagering.

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Case Bets: Atlantic City, Wisconsin & Illinois

Posted on January 17, 2014 by David McKee

Transparency in gaming sustained a couple of blows this week. A proposed ‘black book’ to keep felons out of Illinois slot routes was blocked by legislative forces this week. The excuse given was that the Illinois Gaming Board was acting too quickly. The not-so-fine hand of state Rep. Lou Lang (D) helped smother this baby in its crib.

For transparency and depth of reportage, nobody’s monthly casino reports match those of New Jersey. However, in what looks suspiciously like an economy measure, the reports are being gutted. This will be a great setback to Continue reading →

Posted in Atlantic City, Cordish Co., Harrah's, Illinois, Politics, Regulation, Tilman Fertitta, Tribal, Tropicana Entertainment, Wisconsin | Comments Off on Case Bets: Atlantic City, Wisconsin & Illinois

What’s in a brand?

Posted on January 17, 2014 by David McKee

Quite a lot, especially if it’s Wynn Resorts.

Posted in Marketing, Steve Wynn, The Strip | Comments Off on What’s in a brand?

The Sky is limited

Posted on January 15, 2014 by David McKee

Non-aboriginals like myself all too often stereotype Native American casinos as generators of instant wealth. Not so. Take the San Carlos Apache Nation, which operates successful Apache Gold Casino Resort near Globe, Ariz. The lucre from Apache Gold hasn’t been sufficient to lift the tribe out of a poverty-level economy, not even with a golf course and a Best Western Hotel.

apacheskycasinoSo the San Carlos Nation is trying a second casino — as well as spending $10 million to spiff up the new one. But they’re also moving ahead with the Apache Sky Casino, destined for the “Copper Corridor,” described as a sparsely populated highway through small mining towns. It won’t be on the highway but Continue reading →

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Quote of the Day

Posted on January 15, 2014 by David McKee

“Hearing over and over and over again that my job was not a quality job, that my job didn’t matter or that I didn’t matter really became very personal.” — Saratoga Springs Casino & Raceway Director of Entertainment Kathleen Anderson, lashing out — along with several of her colleagues — at local anti-casino activists.

Posted in Economy, New York, Racinos | Comments Off on Quote of the Day

Online gambling is …

Posted on January 15, 2014 by David McKee

Internet casino… a success, according to Seeking Alpha. On the other hand, Telsey Advisor Group projects New Jersey to flop, eventually only grossing $90 million, not the half-billion envisioned by some. Bloomberg Businessweek reports “mildly disappointing” numbers and that Internet wagering will have to double its pace to keep casinos from posting an eighth year of revenue declines in 2014. Still others advocate a wait-and-see attitude. Nonetheless, Gov. Chris Christie (R) needs a 20X increase in play or he’ll have egg on his face at year’s end. He predicts $1.2 billion, compared to Bloomberg Industries‘ $425 million projection — and even the latter may well be a stretch.

Brand names made a difference, with Continue reading →

Posted in Atlantic City, Boyd Gaming, Economy, Harrah's, Internet gambling, Pennsylvania, Problem gambling, Revel, Tourism, Trump Entertainment Resorts | Comments Off on Online gambling is …

A tale of two cities

Posted on January 15, 2014 by David McKee

On Jan. 21, at 9 p.m., Bloomberg Television will be airing this documentary. Based on the trailer, I’m not impressed, as it yokes together an Atlantic City betting spree with unrelated — and hardly new — scenes of Las Vegas‘ economic wipeout, which is becoming very old news indeed. But you might enjoy it and it’s chock-a-block with big names from the casino industry, including Gary Loveman and Bill Boyd.

Posted in Atlantic City, Boyd Gaming, Economy, Harrah's, MGM Mirage, Steve Wynn, TV | Comments Off on A tale of two cities

Quote of the Day

Posted on January 14, 2014 by David McKee

“Bringing in slot machines “would create much-needed jobs in Bridgeport and continue to improve on Bridgeport’s exciting nightlife, while bringing new tax revenue to our city,” [Mayor] Bill Finch said. — from a hearing on expanded gambling in Connecticut. Is that the first time the words “exciting,” “nightlife” and “Bridgeport” have been heard in the same sentence?

Posted in Current | 1 Comment

Vive la difference; Early ‘Net bets from Jersey; 99 years or bust

Posted on January 14, 2014 by David McKee

Since before its opening, The Cosmopolitan of Las Vegas has marketed itself to “the curious class,” and you’ll certainly be intrigued — and perhaps a bit befuddled — by its newest ad, which seems to be promoting a new brand of champagne. (Actually, it’s a speakeasy.) That isn’t meant as a knock on the try-anything marketing strategies attempted by The Cosmo. God knows it’s difficult to differentiate oneself in Sin City. The casino, writes Chris Sieroty of the Las Vegas Review-Journal, is “introducing carve-out ads in Esquire and Vanity Fair as well as offering mints and coupons on United flights and running ads in movie theaters.”

That cryptic vibe is very deliberate and while some in my age group (like me) won’t groove to it, the success of Continue reading →

Posted in Atlantic City, Australia, Cosmopolitan, Entertainment, Internet gambling, James Packer, Marketing, The Strip | 1 Comment

They burn the Monte Carlo, don’t they?; Cantor gets slammed

Posted on January 14, 2014 by David McKee

Yes, there’s been another fire at the Monte Carlo. This one was confined to the Double Barrel Saloon and there was only one injury, most importantly. That place has some rough luck, doesn’t it?

AmaitisIt doesn’t matter what Cantor Gaming CEO Lee Amaitis (left) knew or when he knew it. He should have known that director of risk management (ha!) Michael Colbert was accepting unlawful bets. That lack of due diligence will cost Cantor (now CT Technology) a record $5.5 million in Nevada fines. Without admitting to almost any culpability, Cantor conceded that the Nevada Gaming Control Board could cook its goose, if need be. And regulators had good reason to drop Thor’s Hammer on Cantor, considering that online poker is in its legal infancy, casinos would like to follow suit with online sports betting and everybody’s got to prove they are more virtuous than Caesar’s wife. As NGCB Chairman A.G. Burnett put it, Continue reading →

Posted in Bally Technologies, Cantor Gaming, Current, Horseracing, MGM Mirage, Monte Carlo fire, Regulation, The Strip | Comments Off on They burn the Monte Carlo, don’t they?; Cantor gets slammed

Viva Macao; Battling for dollars in Maine

Posted on January 14, 2014 by David McKee

Wynn Macau 2Hard as it may be to believe, Macao is on track to gross $77 million in 2017. That leaves Las Vegas hopelessly in the dust as a gambling destination, especially with non-gaming amenities taking up a bigger share of the tourist dollar. If you want to get a piece of the Macanese action, investment advisers offering varying counsel, though they seem to prefer a company that hedges its Asian risks with a U.S. presence (i.e., not Melco Crown Entertainment).

The Motley Fool‘s Jayson Derrick likes MGM Resorts International. He notes that it has consistently outperformed the S&P 500 whenever the U.S. economy has hit a trough. He characterizes Macao as a Continue reading →

Posted in Churchill Downs, Economy, Entertainment, Macau, Maine, Melco Crown Entertainment, MGM Mirage, Penn National, Sheldon Adelson, Steve Wynn, The Strip | Comments Off on Viva Macao; Battling for dollars in Maine