Goa, Goa, Gone & other Case Bets

Posted on January 2, 2014 by David McKee

Officials in Goa, a former Portugese protectorate off the western coast of India are so worried about gambling that they’re barring locals from entering Goa’s casinos. Considering what a sorry bunch of hulks to the Goanese casino fleet is, the politicians may be doing the locals a favor.

GuardianA thoroughly heterodox character, Atlantic City‘s new mayor, Don Guardian could be described as a rebel with a cause. “I’m an openly gay, white Republican Roman Catholic. I’m a good man, and I make good decisions. I bring that to the job,” says Guardian, whose Franciscan ideas including giving idle land free to the indigent, with the eventual intent of bringing it back onto tax rolls eventually. At first blush, it looks like the Boardwalk made the right choice.

While the erstwhile Margaritaville Biloxi is being demolished for Continue reading →

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Macao rules

Posted on January 2, 2014 by David McKee

Sands CotaiToday’s big story is pretty obvious: The 19% year-over-year revenue growth of Macao, which posted $45 billion in gross gaming dollars. (2012’s increase was similarly dramatic.) Analysts offer a somewhat cloudy picture for next year. No, there will be no megaresort openings but there will be improved infrastructure to bring more punters and their families to the world’s gambling capitol. Macao finished out the year strongly, with Deutsche Bank analyst Carlo Santarelli‘s 13% projected increase far exceeded. Macanese casinos grew revenue by 20% after the third quarter and 24% in the fourth. And don’t forget Macao’s single-month high last October. This bodes well for Continue reading →

Posted in Economy, Macau, Melco Crown Entertainment, MGM Mirage, Sheldon Adelson, Steve Wynn, Wall Street | Comments Off on Macao rules

Quote of the Day

Posted on January 2, 2014 by David McKee

Abboud“This is our Joe Camel moment … It could very well be the demise of our industry” — Las Vegas Sands Vice President of Government Affairs Andrew Abboud wringing his hands in opposition to Internet gambling at a recent congressional hearing.

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Test time in Massachusetts; Penn, PokerStars fight over scraps

Posted on January 2, 2014 by David McKee

Move over, Tolstoy: MGM Resorts International has submitted its formal application for a Massachusetts casino … and it’s 7,000 pages long. The Massachusetts Gaming Commission had better clear its calendar. But that’s nothing compared to 16,034-page Mohegan Tribal Gaming Authority pitch for Suffolk Downs. Hoping to impress with its characteristic flair, Wynn Resorts submitted “more than 18,000 pages in leather-covered, gold-embossed notebooks and flash drives. The shipment to the commission weighed more than 440 pounds.” Gives a whole new meaning to ‘heavy reading,’ no? For their part, applicants had to fill out Continue reading →

Posted in Atlantic City, CityCenter, Colony Capital, Hard Rock International, Harrah's, Massachusetts, MGM Mirage, Mohegan Sun, Penn National, Regulation, Steve Wynn, Tropicana Entertainment | Comments Off on Test time in Massachusetts; Penn, PokerStars fight over scraps

Nevada finishing year strong; Christie’s choler

Posted on December 31, 2013 by David McKee

casino-chipsWith a little help from one extra weekend day, Nevada gross gaming revenues shot upward 12% statewide in November and 23% on the Strip. Baccarat players lost their shirts, with the house winning 94% more than the previous year. Less play and looser hold meant less win for the house at slots (-4%) but non-baccarat table win rose 34%. However, what was sauce for the Strip was not so for outlying jurisdictions. Downtown Vegas was off by a point, Laughlin fell 14%, but Reno was up 17% and the Carson Valley area rose 7%. Locals were keeping their purses tight: The Boulder Strip dropped 9% and North Las Vegas fell 14%. Looking ahead, room rates on the Strip are estimated to be 14% higher in the first quarter of next year.

If so, we end 2013 with Continue reading →

Posted in Atlantic City, Boulder Strip, Cordish Co., Current, Downtown, Economy, Harrah's, Laughlin, Maryland, Massachusetts, MGM Mirage, North Las Vegas, Penn National, Regulation, Reno, Steve Wynn, The Strip, Tilman Fertitta, Trump Entertainment Resorts | 2 Comments

Britney: It sucks, bitch

Posted on December 31, 2013 by David McKee

A ways back, when Gary Loveman was all Q-crazy, I pointed out that the letter ‘X’ also carries a high Scrabble value. Little did I suspect that the Aladdin britney-spearsTheater for the Performing Arts would become “the AXIS.” Programming will be done by Live Nation, giving the vendor simultaneous control of MGM Grand Arena and Mandalay Bay Event Center. Ironically, Caesars Entertainments‘ new Britney Spears headliner show would fare better in those steeply raked venues. Unless you’re planning to spend the whole of the Spears spectacle on your feet, being a dancing fool, you’re unlikely to see the damned thing, which the New York Times termed “listless,” among other endearments.

Ms. Spears’ vocals were so heavily reprocessed that she might as well have Continue reading →

Posted in Architecture, Cosmopolitan, Entertainment, Harrah's, MGM Mirage, The Strip | 1 Comment

Overexuberance in New Jersey, generosity in Maryland

Posted on December 27, 2013 by David McKee

GovChristie.380New Jersey Gov. Chris Christie (R) is setting himself up for a fall with his blue-sky projections of Internet-gambling revenue. Eilers Research has projected that it will take two or three years for gambling revenue to reach $227 million … well short of what Christie has been predicting. The flow-through to state tax coffers would be $34 million. Two other studies peg it at $39 million and yet another expects only $31 million. Christie, however, expects to book $160 million by June — an aggressive projection, to say the least. The Eilers dossier looked at all 50 states and crunched “existing land-based gaming revenue trends, propensity to gamble, and what forms of online gaming will likely be permitted within each state.” It expects that it will take seven years to get the U.S. market to $2 billion in revenue. Far more aggressively, various Wall Street firms Continue reading →

Posted in Atlantic City, Economy, Goldman Sachs, Harrah's, history, Illinois, Internet gambling, Macau, Maryland, Massachusetts, Regulation, Slot routes, Taxes, The Mob, The Strip, Wall Street | Comments Off on Overexuberance in New Jersey, generosity in Maryland

Case Bets: Britney, Bally, Sheldon & O’Shea’s

Posted on December 27, 2013 by David McKee

Tonight’s a big night for Planet Hollywood, as it debuts its new, Britney Spears headliner show. However, judging from public disinterest in Spears’ recent TV special, Caesars Entertainment may be drawing to a weak hand.

“Bally Technologies Inc. received some coal in its Christmas stocking this Bally_logo1year,” writes Chris Sieroty of the Las Vegas Review-Journal. The slot manufacturer is alleged to have taken a cavalier attitude toward registering its employees with the state. Registrations have been anywhere from 2.5 months to 10 years (!) behind the curve. The problem isn’t widespread, comprising 28 registrations, but that’s probably not insignificant enough to keep Bally out of the penalty box. It’s a rerun of a 2008 scenario, in which Continue reading →

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Optimism in Boston; Sands is #1

Posted on December 26, 2013 by David McKee

What are the chances that Suffolk Downs could become the most profitable casino in the Western Hemisphere? Not good, you’d think, but Mohegan Tribal Gaming Authority is willing to bet on it. If annual revenue reaches Suffolk Downs 2$1 billion, then Revere gets $40 million in tax dollars. That’s the icing on the cake of an elaborate revenue-sharing scheme. Revere gets $1 million if Suffolk Downs grosses so much as $850,000,001 in Years One through Three. Distributions increase on a sliding scale during the first seven years, maxing out at $30 million in year seven (unless Suffolk Downs grosses in excess of $900 million).

It’s an elaborate and hard-to-resist Continue reading →

Posted in Bally Technologies, Churchill Hill, Massachusetts, MGM Mirage, Mohegan Sun, New York, Reno, Sheldon Adelson, Steve Wynn, Taxes, Wall Street | Comments Off on Optimism in Boston; Sands is #1

Kentucky: Let’s try this again; The smell of money

Posted on December 26, 2013 by David McKee

SteveBeshear_190x266There will be yet another push for casino gambling in the Kentucky Legislature, with hopes of getting a constitutional amendment on the 2014 ballot. The move has bipartisan sponsorship. Dan Seum (R) is carrying the ball in the state Senate and Larry Clark (D) is pushing for it in the lower house. As drafted by Seum, the bill would simply permit seven casinos (Clark wants eight). Locations would be set in other, as-yet-unwritten legislation. Horsemen will be beneficiaries of the casino bill, to the tune of 10% of taxed revenues.

“I don’t harbor false hopes, but I’m encouraged that for the first time we’re getting some very meaningful conversations from both sides of the aisle in both houses,” said Gov. Steve Beshear (D, right), who’s been trying to sell the Bluegrass state on casino gambling since 2007.

A growth period in Las Vegas air traffic flattened out in November, ending four months of gains. The problem seems to lie, in part, in Continue reading →

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Quote of the Day

Posted on December 26, 2013 by David McKee

“I think it’s the only place that’s going to have the Chicago Bears at one end and Beyonce at the other end, and an arena in both places. It’s a unique place — it’s not like Kansas City. It can support more than one event.” — aspiring arena developer Jackie Robinson, on the Las Vegas Strip.

Posted in Entertainment, Sports, The Strip | 2 Comments

Merry Christmas to all …

Posted on December 24, 2013 by David McKee

And we were there! Miraculously, we were able to score fourth-row tickets to this very special TV taping at the Venetian (which went incognito on the TV telecast, masquerading as a Broadway theater). Kelly Clarkson is the cat’s pajamas.

Posted in Entertainment, TV | 1 Comment

Mohegan Sun scolded; Atlantic Club’s death throes

Posted on December 24, 2013 by David McKee

City fathers in Palmer, Massachusetts, have had a sudden falling-out with Mohegan Tribal Gaming Authority. They’ve accused Mohegan Sun of deliberately tanking the Nov. 5 election through “a deliberate pattern of delay Mohegan Palmer nightand mismanagement.” As such, they’ll be joining the raft of groups trying to block a new Mohegan Sun/Suffolk Downs alliance in Revere. The deal Mohegan Sun has cut with Revere is sweet: $33 million down, $25 million-$30 million per year. It’s difficult to imagine the supportive Revere electorate suddenly executing a volte-face and rejecting such terms.

The new casino will have 4,000 slots, 100 table games and poker. That is, if Continue reading →

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SLS to get oddball neighbor?

Posted on December 24, 2013 by David McKee

Everybody’s entitled to a dream, however implausible. Back when Christopher Milam was plotting to build the Silver State Arena on the former Wet ‘n Wild site, we had a lot of problems with Milam’s concept. However, it seems the essence of simplicity and realism compared to what local businessman Jackie Robinson is pitching for the same site. It’s another classic example of a project that’s driven by fear, so it tries to be everything to everybody.

Robinson wants to build a 22,000-seat arena that could house major-league sports. So far, so good. However, he wants to incorporate a spa, nightclub, a LasVegasArena_Exteriorwedding chapel and possibly hotel rooms. What a freakish agglomeration of things to throw together. The notion is as cumbersome as the name: All Net Arena & Resort. (“Honey, let’s stay at the All Net!”) “Robinson has ties to the NBA and has interest in bringing a team to Las Vegas,” reports the Las Vegas Sun, but does the NBA have an interest in bringing a team here? That’s the operative question. Robinson’s plans also call for a retractable Continue reading →

Posted in Architecture, Archon Corp., Sam Nazarian, Sports, The Strip | 2 Comments

Adelson undeterred; Winners and losers

Posted on December 23, 2013 by David McKee

I’m not sure which part of this story is more alarming: That Affinity Gaming was the victim of a widespread identity-theft scheme for seven months … or that the company didn’t disclose it until late this year. It certainly makes me think twice about spending money on Affinity’s premises.

Adelson portraitNot one to be discouraged, Sheldon Adelson is taking his EuroVegas concept on the road and shopping it from Athens to Milan (to say nothing of Rome, Paris and elsewhere). It’s unclear from his remarks, but Adelson may have marketing the idea of doing it in onesies and twosies — as was the case in Singapore — rather than trying to carpet-bomb one metropolis with 12 casinos. However, he’s also peddling the integrated-resort concept in Japan, South Korea, Thailand and Taiwan — maybe on Matsu — so he’s got enough to keep himself occupied for the next few years, until New York City or Miami Beach comes into play.

Adelson is a villain to some but a person who should be a heroine to all of us is Continue reading →

Posted in Affinity Gaming, Atlantic City, California, Dan Gilbert, Detroit, Environment, Florida, Harrah's, Horseracing, International, Internet gambling, Japan, Macau, New York, Ohio, Penn National, Problem gambling, Sheldon Adelson, Singapore, Stanley Ho | Comments Off on Adelson undeterred; Winners and losers

Quote of the Day

Posted on December 23, 2013 by David McKee

MGM MD 1“This can be the most commercially successful resort outside of Las Vegas, from a profit standpoint.” — MGM Resorts International CEO James Murren, on the company’s winning bid at National Harbor, on the doorstep of Washington, D.C.

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Curtains for Atlantic Club; Foxwoods rides again

Posted on December 23, 2013 by David McKee

hilton-atlantic-city-casino-hotelIn a curious bankruptcy-court resolution, the Atlantic Club Hotel was sold to two buyers. Tropicana Entertainment — probably getting the better part of the deal — paid $8.4 million for the gambling equipment and player database. Caesars Entertainment spent $15 million for the hotel furnishings. It will simply close the place and pay to mothball it. Strange as it may seem, Caesars does have the cash on hand for this superficially frivolous purchase, despite all its troubles on Wall Street.

Atlantic Club waitress Pat VanWoeart was in deep denial, saying, “We knew someone would buy us, but we just didn’t expect someone would buy us to cut out the competition, because we are Continue reading →

Posted in Atlantic City, CityCenter, Colony Capital, Foxwoods, Harrah's, Massachusetts, Regulation, Steve Wynn, The Strip, Tribal, Tropicana Entertainment, Wall Street, Wisconsin | Comments Off on Curtains for Atlantic Club; Foxwoods rides again

Is Loveman insane?

Posted on December 20, 2013 by David McKee

There are two bids on the table for Colony Capital‘s grind-joint Atlantic Club Hotel and one of them is from — wait for it — Caesars Entertainment. Now you’re lovemansaying to yourself, “Hey, David, isn’t Caesars in the process of selling the Claridge Hotel?” Why it sure is, so why it suddenly wants more rooms after recently wanting fewer defies ready explanation. As for gaming positions, Caesars plans to remove them. Why Caesars is suddenly hot for this charity case? A bid from Tropicana Entertainment is also supposedly reposing in the bankruptcy court’s “in” box, by the way.

The real losers in this are the casino’s employees, all of whom will be without jobs as of an especially lucky Jan. 13. If they’re fortunate, Continue reading →

Posted in Atlantic City, Colony Capital, Current, Harrah's, history, Tropicana Entertainment | 4 Comments

Revel to be sold?; Ryan weighs in on Menominee

Posted on December 20, 2013 by David McKee

Revel.jpgColor me stupid but I figured that, with a new marketing team in place, to say nothing of a new CEO, Revel Resort was going to stay its new course awhile. Turns out the property was dickering with prospective buyers as far back as June. Talks are close to fruition, the New York Post reports, with Hard Rock International to purchase Revel. It makes sense. Hard Rock scrapped its own build-it-from-scratch casino plans in Atlantic City earlier this year. But purchasing Revel, Hard Rock can get a lot more casino — and potentially for far less money.  “Hard Rock, if it reaches a deal to buy the 1,399-room Revel in the next several weeks, will likely shut it down for a renovation and a Hard Rock re-flagging , according to a source close to the matter,” reports Josh Kosman. So much for the work of Fine Point Group and current CEO Scott Kreeger. Someday, somebody is going to have a business plan for Revel and stick to it. As for now, it’s a Chinese fire drill. Is it any wonder the place has had so many troubles?

Hard Rock’s interest in Revel may be a stalking horse: Continue reading →

Posted in Atlantic City, Current, Hard Rock International, Maryland, MGM Mirage, New York, Politics, Racinos, Revel, Tribal, Wisconsin | 2 Comments

And it’s … MGM

Posted on December 20, 2013 by David McKee

MGM MD 2This news is so hot off the wires Howard Stutz has only had time to tweet it but Prince George’s County has chosen MGM Resorts International for its new casino license. Pleas by Greenwood Racing for an extension had been brushed off. If the $952 million MGM property is half as impressive in the flesh as it is in renderings, it should be something. Prince George’s County allied itself with the cream of the industry in its choice. Penn National Gaming, meanwhile, has to figure out what it’s going to do with Rosecroft Raceway, an infelicitous acquisition.

Meanwhile, in Massachusetts, MGM is inching toward a finding of suitability, the first big step toward licensure. Difficulty in obtaining surrounding-community agreements may require binding arbitration and push the final selection back into March.

Posted in Current, Greenwood Racing, Maryland, Massachusetts, MGM Mirage, Penn National, Regulation | 2 Comments