Buyers and potential sellers

Posted on December 9, 2013 by David McKee

Spend a few minutes this morning with Revel Resort CEO Scott Kreeger, even if some of his answers are exquisitely vague.

Having been checkmated by voters in Milford, Massachusetts, is no discouragement to Penn National Gaming parent company Gaming & Leisure Properties Inc. Casino Queen(We’re going to have to do something about that name.) It bought and leased back independently owned East St. Louis riverboat Casino Queen for a premium price. $140 million may not seem like much but it’s 10X cash flow, well above industry average. That tells you something about how much Penn wants Continue reading →

Posted in Atlantic City, Hard Rock International, Harrah's, Illinois, Indiana, Iowa, Massachusetts, Ohio, Penn National, Pinnacle Entertainment, Revel | Comments Off on Buyers and potential sellers

AGA goes MTV

Posted on December 9, 2013 by David McKee

Further distinguishing his presidency as a 21st century one, American Gaming Association President Geoff Freeman is taking his case to social media. “There’s no way to sugarcoat it,” he writes. “Some people view our industry as a necessary evil rather than a mainstream entertainment business … local leaders often view us merely as a source of revenue instead of a partner and catalyst for growth.” The filmlet above is described by Freeman as the “opening salvo” in the reinvention of the AGA as “an aggressive and unabashed champion of our industry.” In other words, it’s Freeman’s AGA now and he’ll be doing things differently.

Posted in Current, TV | Comments Off on AGA goes MTV

Fizz-le

Posted on December 9, 2013 by David McKee

Caesars imageCaesars Palace has no shortage of excellent dining and drinking venues. A recent walk-through drove that point home. So I suppose it’s entitled to have a turkey amidst the cornucopia and Fizz is it. We visited last week and will probably never cross its threshold. So let’s see what the problems are. One is a claustrophobic space. Paradoxically, the heavy use of mirrors only reinforces the feeling of being squeezed in, rather than

Continue reading →

Posted in Current, Entertainment, Harrah's, The Strip | Comments Off on Fizz-le

Adelson’s bogus poll & other fun with numbers

Posted on December 6, 2013 by David McKee

Sheldon ATo hear Sheldon Adelson tell it, 70% of Americans share his die-hard opposition to Internet gambling. He even bought a poll from The Tarrance Group to prove its point. Unfortunately for the Sultan of Sands, the monarch has no clothes. Online Poker Report, using Google Consumer Surveys, conducted a large opinion sampling of its own. The results are about what you’d expect. Fervent opposition to Internet poker is found among 29% of respondents, strong support among 19% — and the plurality, 34%, occupy the middle ground. Unlike Tarrance Group, OPR is making its methodology available as well. Tarrance used a larger sample but cherry-picked four states to poll … two of which (Virginia and Kentucky) don’t even have casino gambling. The questions were also framed in such a way as to elicit a negative response, a tactic known as “push polling.” The purpose of the poll was to further Adelson’s agenda: It had to produce a desired outcome. What are the chances Adelson would pay for a poll that didn’t say what he wanted?

Columnist Jason Kirk remorselessly strips Adelson of the op-ed fig leaf behind which the mogul attempts to cloak his Continue reading →

Posted in Alabama, Atlantic City, Cretins, Economy, Greenwood Racing, Harrah's, Internet gambling, Kentucky, Massachusetts, MGM Mirage, Pennsylvania, Regulation, Sheldon Adelson, Taxes, Technology, Tribal | 1 Comment

Quote of the Day

Posted on December 6, 2013 by David McKee

“Early studies have shown they may only look at gambling as a brief diversion and look at it just that way: as gambling, not gaming. Gaming to millennials is playing a video game such as ‘Call of Duty.'” — a casino marketing challenge, as outlined by Generational Imperative founder Chuck Underwood and summarized by Las Vegas Review-Journal reporter Laura Carroll.

Posted in Marketing, Tourism | Comments Off on Quote of the Day

Imbalances of power; Vegas to Israel?

Posted on December 6, 2013 by David McKee

It was another bonny month for Maryland, whose casino revenues grew 55% in November, up to $67 million. It’s not an apples/apples comparison, since neither Rocky Gap Casino nor table games were in play a year ago. Tables were responsible for $21 million of last month’s gross. Maryland Live! alone represented 80% of the total revenue, grossing $53 million. The other dramatic gain was at Hollywood Casino Perryville, up 22% for a $7 million tally.

Rivers Casino DPIt was a not-dissimilar scenario in Illinois, where Rivers Casino alone represents 27% of the state’s $121 million gross. Players may be visiting less (-5%) and spending more (+2%) but they seem to be doing it mostly at Rivers, up 11% last month. Former powerhouse Grand Victoria Elgin suffered a 10% drop and slid behind Harrah’s Joliet ($16 million, -3%) to third place in the state. Penn National Gaming also had a not-so-good month, with an 11% decline aboard Empress Joliet and a 13% dip at redundant Alton Belle. Independent Casino Queen was down but 2% which is tantamount to cause for celebration in the Land of Lincoln.

Needless to say, November was yet another powerhouse month for Continue reading →

Posted in Charity, Cordish Co., Economy, Greenwood Racing, Harrah's, Illinois, Macau, Maryland, Melco Crown Entertainment, MGM Mirage, Neil Bluhm, Penn National, Pets, Sheldon Adelson, Stanley Ho, Steve Wynn | Comments Off on Imbalances of power; Vegas to Israel?

Big coup for Lumiere; Where next, Vegas?

Posted on December 6, 2013 by David McKee

Lumiere-252And Caesars Entertainment‘s March stop on the World Series of Poker is … Lumiere Place?!?!? Yes, a marquee Caesars attraction is being held on Tropicana Entertainment property. The reason is twofold. One, Horseshoe Cleveland isn’t big enough to handle the 2,500-plus players anticipated. Secondly, Caesars has no casino in the St. Louis area, having sold its Maryland Heights property to Penn National Gaming. I’ll bet they’re sorry about that now.

Vegas visitation hit a record level a year ago, but visitors spent $297 less each, on average. What’s the cure for those blues? That was the problem wrestled with by the Nevada Governor’s Conference on Tourism. Brows were undoubtedly knitted out at Continue reading →

Posted in Current, Detroit, Harrah's, Marketing, Missouri, Ohio, Penn National, Station Casinos, Technology, Tropicana Entertainment, World Series of Poker | Comments Off on Big coup for Lumiere; Where next, Vegas?

Casinos on the dole; Conflict in Massachusetts

Posted on December 5, 2013 by David McKee

We’ve come 180 degrees in the evolution of the casino industry in the U.S. State governments once embraced them as what Dover Downs Gaming & Entertainment CEO Denis McGlynn calls a “sin-tax pot of gold.” Now they’re flailing amidst overmuch competition and the same McGlynn is looking for a Delaware bailout, declaring forlornly, “We’d accept anything at this point.” No wonder. Dover Downs and its fellows are laboring under a 43.5% tax rate (!) and a further 10% impost to subsidize the horsey set. It can’t be easy to make your nut when over half your income goes to taxes, and Maryland and Pennsylvania have crashed your party. Tax cuts aren’t on the table yet but various restructurings of Delaware’s revenue split are under discussion, as is a tiered tax structure — like Nevada’s but at a much higher rate. It may not be ideal but it’s progress.

Halfway across the country, Continue reading →

Posted in Iowa, Massachusetts, MGM Mirage, Penn National, Taxes, The Strip, Tribal, Wall Street | Comments Off on Casinos on the dole; Conflict in Massachusetts

Rising sun; Falling Poster; Crosby gets funky

Posted on December 5, 2013 by David McKee

Japan‘s ruling Liberal Democratic Party has been stymied in introducing pro-casino legislation in the Diet, thanks to grumbling, naysaying Buddhist coalition partners. But other parties have been building a casino coalition. Japan-flagAccording to The Straits Times, a “cross-party group of Japanese lawmakers submitted a bill to parliament on Thursday aimed at legalising casino gambling in the country.” The coalition in question turns out to be the minority New Komeito party and the nationalist Japan Restoration Party. The LDP has signed off on the result. Since the current parliamentary session ends on Friday, there’s no hope of actually tackling the bill until the Diet reconvenes in the new year.

Like Caesars’ wife, Nevada casino executives have to be above even the appearance of impropriety. Some occasionally have a little ‘splaining to do, but rarely as much as Continue reading →

Posted in Current, Internet gambling, Japan, Massachusetts, Politics, Regulation, Slot routes | Comments Off on Rising sun; Falling Poster; Crosby gets funky

Quote of the Day

Posted on December 5, 2013 by David McKee

“How can I enjoy my Christmas when I know that somewhere a little Jewish boy isn’t being forced to sing ‘Oh Little Town of Bethlehem’?” — Jon Stewart, on the so-called ‘war on Christmas.‘

Posted in Current, TV | Comments Off on Quote of the Day

As the Trop turns …

Posted on December 4, 2013 by David McKee

TROPICANA VIEW 1B_LO 042010While I was out of town, Alex Yemenidjian sprang another big-ass remake of the Tropicana Las Vegas upon local media. Now, most of A-Yem’s big, shiny ideas have had tragically short lives. (Anyone remember Bagatelle Beach Club? Wayne Newton: Once Before I Go? The Jamie Gold poker room? Brad Garrett‘s comedy club? Even the Mob Attraction has defected.) The latest reinvention is to impose a two-story shopping mall on the Trop’s facade, wrapping around and extending the Strip-facing facade. This will, among other things, necessitate Continue reading →

Posted in Alex Yemenidjian, Architecture, Entertainment, Sahara, Sam Nazarian | 1 Comment

Most happy fella; Whither the Western?

Posted on December 4, 2013 by David McKee

Lawrence Ho 2If you added Melco Crown Entertainment to your portfolio of stocks, you’ve got a right to be feeling smart right about now. U.S.-traded shares of the stock are up 111% over the course of 2013. Weaker-than-expected high roller play has burned the company. But it’s got an ace up it sleeve in the form of new governmental policies from Peking that will occasion “this influx of affluent middle-class Chinese visitation coming to that area.” according to Craig-Hallum Capital Group analyst Bryan Maher.

Melco is accordingly shifting its sights toward high-value players, a niche below junket-led VIPs, and toward mass-market play … a natural fit for City of Dreams and forthcoming Studio City.

The other half of the Melco Crown dynamic duo, Continue reading →

Posted in Downtown, International, James Packer, Lawrence Ho, Melco Crown Entertainment, Tourism | 1 Comment

Caesars’ big bazaar; Psychic powers in Massachusetts; When is a profit not a profit?

Posted on December 4, 2013 by David McKee

Linq is shaping up handsomely and its Ferris wheel just had its last gondola added yesterday. So, if we can put Caesars Entertainment‘s debt problems BALLYSHOPSaside for a second, the company is doing very nicely in the capex department, where once it seemed ambivalent about investing. The next step might seem counterintuitive, being so close to Linq, but it’s to be a bazaar at Bally’s. About the closest one can come to criticizing it would be to say that 150 restaurants, bars and stores is a sensory overload — even by Vegas standards.

The venues will range from 150 square feet to 2,000 such. Seen from overhead, they sport a brilliantly variegated, tiled look. Also, the moving walkway which transports you into Bally’s through oversized fallopian tubes will Continue reading →

Posted in Delaware, Harrah's, International, Iowa, Isle of Capri, Louisiana, Massachusetts, Racinos, Regulation, The Strip, Wall Street | Comments Off on Caesars’ big bazaar; Psychic powers in Massachusetts; When is a profit not a profit?

Quote of the Day

Posted on December 4, 2013 by David McKee

“On non-Indian lands, you have a thousand ways to stop a casino that you don’t want. Why do you need the abrogation of sovereign immunity?” — U.S. Supreme Court Justice Ruth Bader Ginsburg, questioning the State of Michigan‘s lawsuit against an off-reservation casino owned by the Bay Mills Indian Community.

Posted in Regulation, Tribal | Comments Off on Quote of the Day

Dancing at the Downs; Sheldon Adelson, Luddite

Posted on December 3, 2013 by David McKee

suffolk downsSuffolk Downs isn’t going to have to perform the limbo to bring its casino project into zoning conformity but some fancy footwork will be required. Instead of one structure, there will have to be two. Non-gaming amenities will be clustered in one on the East Boston side of the city line. Another, holding all the casino goodies, will be on the Revere side, hugging one end of the racing oval. Suffolk Downs and Mohegan Sun will operate the respective halves. This new arrangement still needs the blessing of the Massachusetts Gaming Commission but that seems like a fairly safe bet at this juncture.

Virginia state flagIf the marriage of casinos and Massachusetts has sometimes seemed like a shotgun wedding, we are dealing with a fairly conservative culture in that respect. The difficulties experienced in Massachusetts give you some idea why similar efforts have failed in Virginia, a state steeped in anti-gambling ethos. Voters across the Potomac River in Maryland have few qualms about casinos but Virginia, under the thumb of the Religious Right, isn’t having any of that godless gambling, by golly. Caesars Entertainment and International Game Technology have stopped trying to penetrate Virginia and if they’ve given up, you know it’s a lost cause.

Las Vegas Sands Chairman and CEO Adelson waves as he arrives for Sands China's annual general meeting in Hong KongSpeaking of lost causes, Sheldon Adelson remounted his anti-Internet steed this week. We learned a number of things, including that Continue reading →

Posted in Bally Technologies, Current, Harrah's, IGT, Internet gambling, Massachusetts, Mohegan Sun, Regulation, Sam Nazarian, Sheldon Adelson, Technology | Comments Off on Dancing at the Downs; Sheldon Adelson, Luddite

Online gambling a hit in New Jersey; Crackdown in Singapre

Posted on December 3, 2013 by David McKee

GovChristie.380Despite some small fits and starts, New Jersey was able to roll out Internet gambling to eager Garden State citizens and with no major issues. Moody’s Investor Service predicted $250 million-$500 million in revenues during the first year, while Gov. Chris Christie (R) rashly forecast $1 billion in revenue by next July. Bottom line, Christie needs it to succeed on that scale in order for his budget to balance. Online gambling revenues have to fit a predetermined result.

But, whereas players in Nevada and Delaware have tipped their toes into Internet-gambling waters, New Jersey punters have dived right in. By yesterday, the number of accounts created had topped 51,350 (mind you, New Jersey has many more sites than Nevada). Six casinos have launched 12 sites among them, while glitch-prone Golden Nugget is holding off for a week. While Steve Wynn is waxing cautious, Jim Murren and Gary Loveman are full speed ahead, and Sheldon Adelson is crabbily yelling, “You kids get off my lawn!” With respect to online poker, Wynn insinuated that Adelson is spitting into the wind … especially when Nevada‘s two senators are pushing for Continue reading →

Posted in Atlantic City, Harrah's, Internet gambling, MGM Mirage, Sheldon Adelson, Singapore, Steve Wynn, Tilman Fertitta | Comments Off on Online gambling a hit in New Jersey; Crackdown in Singapre

Quote of the Day

Posted on December 3, 2013 by David McKee

Wynn tux“I have been bombarded by my colleagues about the Internet. Like Mt. Everest, it looms on the horizon, blotting out the sun. I fail to see the business opportunity myself. So what I do is, I hook up with my colleagues: I smother my own confusion and prejudice and benefit from it. That’s the only rational thing to do.” — Steve Wynn, on Internet gambling.

Posted in Internet gambling, Steve Wynn | Comments Off on Quote of the Day

Mohegan switches sides in Massachusetts; Ghosts in the machine

Posted on December 3, 2013 by David McKee

Suffolk revisedIt’s not quite official but the Mohegan Tribal Gaming Authority has thrown in its lot with Suffolk Downs, one of the dwindling number of candidates for a Massachusetts casino license (and where a big redesign is well underway). Mohegan Sun wasted no time shaking the dust of Palmer from its soles. The latter recounted the votes from the Nov. 5 plebiscite and the end result was a one-vote increase in the margin whereby Mohegan Sun was defeated. It was a narrow — and potentially foolish — rejection, with only 94 votes separating victory from defeat. It’s now MGM Springfield or nothing. And, judging by the alacrity with which Mohegan Sun was able to whip out a revised rendering of Suffolk Downs (above), they’ve been plotting this move a while now.

In another tale of shifting loyalties, architect Dan Keating was against Market8 Casino in Philadelphia before he was for it. Keating, the lead builder in Steve Wynn‘s bid had slagged Market 8 publicly. Like someone emerging from a Communist re-education camp, Keating Continue reading →

Posted in Architecture, IGT, Massachusetts, MGM Mirage, Mohegan Sun, Pennsylvania, Technology, Wall Street | Comments Off on Mohegan switches sides in Massachusetts; Ghosts in the machine

Hacienda gets the Dotty’s treatment; Mohegan gets the heck out

Posted on November 25, 2013 by David McKee

Hoover Dam LodgeWhen the Dotty’s slot-cafe chain decided to go ‘legit’ by purchasing the Hacienda hotel-casino near Boulder City, it meant some big surprises. For one thing, all employees found themselves without jobs. Dotty’s used the federal WARN Act to pink-slip the entire workforce and make it re-apply for jobs it once held. Table game dealers are right out of luck. All live table games will be replaced with electronic equivalents. While the soon-to-be Hoover Dam Lodge can hold 380 slots, only 150 will be in play during the early stages of a prolonged renovation, which will create a Dotty’s-branded casino within the casino. Dotty’s loyalty program will also be honored at the Hoover Dam Lodge. Too bad management doesn’t feel a similar loyalty to its employees.

Keep dreaming. That’s the memo from Howard Stutz to Sheldon Adelson, regarding the latter’s “new holy war” against Continue reading →

Posted in Internet gambling, Massachusetts, Mohegan Sun, New Hampshire, New York, Regulation, Sheldon Adelson, Slot routes | Comments Off on Hacienda gets the Dotty’s treatment; Mohegan gets the heck out

Changing of the Guard at Bally; Whence Mecca?

Posted on November 25, 2013 by David McKee

Now that the Bally Technologies takeover of Shuffle Entertainment is a done deal, there’s a bit of musical chairs to be played. Senior Vice President for Law & Bally_logo1Government Mark Lerner will be eased out, in favor of Shuffle’s general counsel, Katie Lever. Senior Vice President Adrian Halpenny is also carried over from SHFL, retaining his Australian portfolio and trades his Asian portfolio for that of Europe. Srinivasan Raghavan retains the Asian portfolio, along with those for India and Africa. Roger Snow (table products) is the only remaining senior VP brought in from SHFL, although nine ex-Shuffle execs will occupy ever-so-slightly lower rungs on the ladder, such as Vice President of Marketing Julia Boguslawski. Congratulations ladies and gentlemen. May the odds be ever in your favor.

Ever wonder what happened to Mike Mecca after his swift departure from Planet Hollywood Resort & Casino? He’s thriving as Continue reading →

Posted in Bally Technologies, Downtown, Economy, Macau, Planet Hollywood, Shuffle Master, Tamares Group | Comments Off on Changing of the Guard at Bally; Whence Mecca?