Quote of the Day

Posted on October 24, 2013 by David McKee

gansevoort-lv-exterior-rendering-4_3_rx512_c680x510“Interesting time for joke-telling, given the fact this deal fell through because of a Gansevoort partner being tied to Russian organized crime. But, hey, what’s a little underworld connection between friends.” — Vital Vegas, commenting on Gansevoort Hotel Group‘s official — and oddly lighthearted — announcement of its divorce from Caesars Entertainment.

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Slots and torts; Menominee don’t quit; Caesars scapegoats Suffolk

Posted on October 24, 2013 by David McKee

Geoff_FreemanIf you’ve probably seen, if there’s anything the manufacturing sector of the gaming industry likes to do better than make new slot games is to sue one another for patent infringement. The fun may be coming to an end. Rep. Bob Goodlatte (R-VA) has introduced legislation intended to deter patent litigation. It already enjoys the endorsement of American Gaming Association President Geoff Freeman (left), who’s clearly going to be a more high-profile figure than was Frank Fahrenkopf. What’s in the bill? Losing litigants would have to pay court costs — a big deterrent right there. Vendors could also take on the defense of third-party customers who get sued for using Brand X. So-called “low quality patents” would be nixed, broadening rules already applied to the financial-services industry, and all the parties standing to benefit from a patent would have to be disclosed. Google and Yahoo are in favor of the bill but Microsoft and Apple are against it. It will interesting to see where gaming’s tech players fall in line.

The Menominee Tribe keeps trying for that casino compact in Wisconsin and its promises are getting richer and richer. Now it would pay the state 7.5% of gross revenue, so that the Potowatomi and Ho-Chunk tribes could pay less — and offset revenue declines suffered by 0ther tribes. That could get pretty expensive. In return for Continue reading →

Posted in International, Internet gambling, Massachusetts, Regulation, Station Casinos, Taxes, Technology, Tribal, Wisconsin | Comments Off on Slots and torts; Menominee don’t quit; Caesars scapegoats Suffolk

Has Sheldon Adelson lost it?

Posted on October 23, 2013 by David McKee

Sheldon pashaLast night, Sheldon Adelson went to mind-boggling extremes and into the realm of the sort of rhetoric one associates with some of the worse regimes of modern history, advocating a unilateral, first-strike, nuclear attack on Iran. “Then you say, ‘See! The next one is in the middle of Tehran. So, we mean business,” he (or that thing on the back of his head) crowed. “‘You pick up your cell phone and you call somewhere in Nebraska and you say, ‘OK let it go.’ So there’s an atomic weapon, goes over ballistic missiles, the middle of the desert, that doesn’t hurt a soul.”

(At least Sheldon has the foresight to spare potential customers of Venetian Tehran.)

Executives at Las Vegas Sands weren’t long to see that Continue reading →

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Caesars tries to change the subject; Penn makes its case

Posted on October 23, 2013 by David McKee

Loveman speaksAs Caesars Entertainment skulks away from Massachusetts, tail between legs, a campaign of manufactured outrage continues to be mounted on its behalf. At its baseline is an attempt to minimize the reasons why the Massachusetts Gaming Commission was poised to drop-kick Caesars. Ken Adams parrots the agreed-upon narrative in a new column. To hear people from Gary Loveman to Adams tell it, it was a capricious decision made on the basis of a gossip column item about the suddenly infamous Arik Kislin, nothing more.

It’s quite a bit more, as John L. Smith explains, than a boldfaced item amidst society chatter. Kislin was a problem waiting to happen and Caesars was too arrogant to see otherwise. But then there’s Continue reading →

Posted in Harrah's, Horseracing, Internet gambling, Maryland, Massachusetts, MGM Mirage, Penn National, Problem gambling, Regulation, Stanley Ho, The Mob | Comments Off on Caesars tries to change the subject; Penn makes its case

Parx: Pay as you go; Muted rapture in California

Posted on October 23, 2013 by David McKee

Parx Raynham 1Parx Casino in Raynham, Massachusetts, will cost $277 million. Parx has $231 million in the kitty. How does the company propose to make ends meet? It will erect a temporary slot facility while the permanent one is built. This temporary slot parlor will have to generate $46 million, so that Parx numbers pencil out and possibly to cover any cost overruns.

And then there were two. Only tail-dragging Revel Resort and the Atlantic Club Hotel have now failed to sign up with an Internet gambling provider. Even Atlantic City‘s worst-performing casino, Continue reading →

Posted in Atlantic City, California, Encore, Internet gambling, Massachusetts, Racinos, Revel, Station Casinos, Tribal, Trump Entertainment Resorts | Comments Off on Parx: Pay as you go; Muted rapture in California

One scandal in 141 seconds

Posted on October 23, 2013 by David McKee

For those of you who want to catch up quickly on the Florida dragnet that snared dozens of Internet betting parlors in a scandal, here’s a one-shot primer.

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Case Bets: Caesars, Ceylon, Cosmo and clubbing

Posted on October 22, 2013 by David McKee

CAESARS-ENTERTAINMENT-LOGOIt’s G-Day plus four and questions continue to mount about Caesars Entertainment‘s partnership with the Gansevoort hotel chain. In particular, what didn’t the company’s compliance not know about Arik Kislin and when did they not know it? Suffolk Downs might be excused for not performing its due diligence but what’s Caesars reason? How couldn’t they have seen this problem coming?

In the meantime, Caesars is making nice with a federal grand jury that is investigating potential improprieties at Caesars Palace. The Financial Crimes Enforcement Network seems to be working its way down the Strip, having exacted a $47 million fine from Continue reading →

Posted in Cosmopolitan, Culinary Union, Entertainment, Harrah's, International, James Packer, Macau, Sheldon Adelson, The Mob, The Strip | Comments Off on Case Bets: Caesars, Ceylon, Cosmo and clubbing

Santa Claus smiles upon Borgata; No reprieve for Suffolk

Posted on October 22, 2013 by David McKee

kris-kringle-and-sidekick-rudolphChristmas came early for Boyd Gaming and Kris Kringle wore the judicial robes of the Tax Court of New Jersey. “A silver lining to Atlantic City‘s fall from grace for casino operators: the tax bills are lighter when the going gets tough,” Seeking Alpha wrote. Borgata had been seeking a writedown in its assessed value to $870 million, but was taxed at $2.26 billion. Yesterday’s ruling means that Boyd is due nearly $49 million in refunds for 2009-10, although whether Atlantic City can pay is an open question. “Devastating” boyd-gaming-200was a well-chosen characterization of the effect on Atlantic City’s finances, especially with Boyd and MGM Resorts International gearing up to revisit their 2011-12 valuations, too. As Deutsche Bank‘s Carlo Santarelli wrote, “Where the money will come from however is anyone’s guess.” He did think the revaluation could retroactively add another $14 million a year to Borgata’s cash flow.

Suffolk Downs didn’t get its wish for a mulligan on the Nov. 5 ballot question that polls East Boston on its preference for a casino (or not). Unsurprisingly, Secretary of State William F. Galvin said that Continue reading →

Posted in Atlantic City, Boyd Gaming, Hard Rock International, Harrah's, Maryland, Massachusetts, MGM Mirage, Mohegan Sun, Neil Bluhm, Penn National, Taxes, Wall Street | 1 Comment

Newton’s ship sinks; A land (of plenty) Down Under

Posted on October 22, 2013 by David McKee

Wayne+NewtonBad things have a way of happening to Wayne Newton‘s property. Most recently, his yacht sank at its Lake Mead berth. This inspired the Las Vegas Review-Journal to lead its story with, “Mr. Las Vegas’ yacht sleeps with the fishes.” His 65-foot houseboat was observed to be down by the stern last Friday and sank within 20 minutes. The news undoubtedly cast a pall over Newton’s Bora Bora vacation. Throw in financial disputes involving his Cadillac and private jet, and Newton just doesn’t have good vehicular karma.

Cairns, the resort capital of the Australian state of Queensland is slumping badly in terms of hotel occupancy. Developer Tony Fung‘s counterintuitive solution is to flood the market with Continue reading →

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Caesars: Fiasco in Boston

Posted on October 21, 2013 by David McKee

suffolk-downs-casino-thumb-520x301-92384jpg-7517a160501587b8Suffolk Downs will be moving forward … without Caesars Entertainment. The track dropped Caesars like a bad habit over the weekend. Caesars tried to make it sound like the decision was its own. Spokesman Stephen Cohen threw a hissy fit, saying the Massachusetts Gaming Commission was “attempting to set standards of suitability that are arbitrary, unreasonable and inconsistent with those that exist in every other gaming jurisdiction.” Now Mr. Cohen, the MGC had long stated that the fiscal health of a company would be a criterion. Business ties to alleged Mob associates (see below) also tend to be frowned upon in most jurisdictions. “It’s going to be very difficult for sophisticated, multi-jurisdictional operators to tolerate the environment this commission has created,” CEO Gary Loveman responded in a characteristically phrased blast of hydrogen, doubtless feeling umbrage over the rejection from his home state. Industry apologist Roger Gros was also quick to play Chicken Little, wailing that  Continue reading →

Posted in Hard Rock International, Harrah's, Illinois, Internet gambling, Massachusetts, MGM Mirage, Neil Bluhm, Problem gambling, Regulation, Slot routes, Steve Wynn, Wall Street | 2 Comments

Tragedy on the Strip

Posted on October 21, 2013 by David McKee

Proving that there is no grudge too trivial to be settled by gunplay, a would-be patron of Drai’s allegedly shot two Bally’s Las Vegas security guards and killed a club patron after “demanding a refund because the club wasn’t full.” Vegas being Vegas, gambling resumed soon afterwards.”The safety and security of our guests is our number one priority,” stated Caesars Entertainment, a vow that rings somewhat hollow when armed patrons are roaming its casino floors with impunity. How many shootings and armed robberies have to occur before this realization comes through?

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Breakthrough in Wisconsin; Second chance in Biloxi

Posted on October 20, 2013 by David McKee

DairylandApproval of a Dairyland casino for the Menominee Tribe is still the longest of long shots, but there were faint cracks in the ice after a summit meeting earlier this week. Contrary to earlier reports, participants did a little bit more than simply restate their basic position. Gov. Scott Walker (R) is credited with laying out a “path to approval,” although his demands are unknown.

Menominee Chairman Craig Corn said Walker “just wants Continue reading →

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Quote of the Day

Posted on October 20, 2013 by David McKee

“Glitzier, more expensive casinos aren’t designed to attract troubled gamblers from down the street. Those people will find their way to whatever venue is available.” — the Tulsa World, editorializing on the new, Margaritaville-branded casino being built downtown.

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Sheldon hits paydirt; Culinary Union talks trash

Posted on October 18, 2013 by David McKee

venetian-macao-bridgeofsighIt’s good to be Sheldon Adelson, especially when your company is notching one record-setting month after another. Revenue for 3Q13 rose 32% and net profit shot 79% upwards. Next year, shareholders can look forward to a 60 cent bump in their recurring dividend, which becomes $2/share. Sheldon concentrated on playing Santa Claus and avoided controversial remarks this quarter, even though Strip revenue gains (3%) were modest and Sands Bethlehem was flat. By contrast, Four Seasons Macao leapt 47% and Venetian Macao was up 21%.

adelson_t200J.P. Morgan‘s Joseph Greff was disappointed with the numbers from Marina Bay Sands, writing that comps and promotions “have negatively impacted margins.” Other than that, he was sufficiently impressed to raise his per-share price target for LVS from $75 to $80. Cash flow wasn’t broken out for every Sands property but at $357 million for Venetian Macao and $113 for Four Seasons, Sheldon is recovering his investments at a tidy clip. Even his red-headed stepchild, Sands Bethlehem did about as well as any Pennsylvania casino could, pulling in $123 million during the quarter. If not’s enough for Adelson, what is?

The Cosmopolitan of Las Vegas has usurped Adelson as Target Number One for the Culinary Union. Actually, it’s no longer the Cosmo itself that is the object of the Culinary’s rage but Continue reading →

Posted in Cosmopolitan, Cretins, Culinary Union, Dan Gilbert, Detroit, Harrah's, Macau, Ohio, Pennsylvania, Sheldon Adelson, Singapore, Station Casinos, Wall Street | 3 Comments

What’s Steve Wynn thinking?; Best news of the week

Posted on October 18, 2013 by David McKee

Wynn ForbesIf Steve Wynn is trying to talk himself out of contention in Massachusetts, he’s doing a good job of it. Yesterday, he told the Massachusetts Gaming Commission, “We’re scared to death — not that you won’t pick us, but that you will, and there goes a billion-three or a billion-five.” Well, if he’s that scared, what’s he doing there in the first place? His concern is a seemingly exaggerated fear that he will be licensed and then fined for his dealings in Macao. Wynn wants a free pass on that but it doesn’t look like he’s going to get it. Said one Commission member, “You really have some disdain for investigations and law enforcement. That’s my opinion.” (MGM Resorts International took a considerably more sanguine view of its own probity.)

Hey, Gary Loveman, your Suffolk Downs chances just got a helluva lot better.

It’s ‘All systems go’ for New York State‘s casino referendum. Lawyer Eric Snyder dropped his case against Proposal One yesterday. With three weeks to go before election day, Snyder doesn’t Continue reading →

Posted in ABBA, Alex Yemenidjian, Current, Election, Entertainment, Macau, Massachusetts, MGM Mirage, New York, Regulation, Steve Wynn, The Strip | 2 Comments

The bill that wouldn’t die; Taking a wrecking ball to “Jubilee!”

Posted on October 17, 2013 by David McKee

IllinoisIllinois legislators continue to butt their heads against Gov. Pat Quinn‘s opposition to casino expansion (and a terrible gambling economy). Impervious to reality, state Rep. Robert Rita (D) is introducing yet another bill for five casinos and airport slot routes. Democrats in the Lege won’t be satisfied until existing casinos are driven out of business — and maybe not even then. “I want to make sure this thing is done in the right way,” bloviates Rita, when the right thing would be not to do it at all. It’s surreal to see Rita and his colleagues arguing over how they’ll divide theoretical casino revenue at a time when actual gambling winnings continue to decline. Chicago Mayor Rahm Emanuel‘s determination to have his city own a casino outright also continues to put the cat amongst the pigeons.

If it ain’t broke … Some uncredited ‘genius’ at Caesars Entertainment has had the notion of taking Jubilee! and “ushering the show into the contemporary age … putting a modern spin on it” (read: Continue reading →

Posted in Current, Economy, Entertainment, Harrah's, Illinois, Macau, Mississippi, Ohio, Penn National, Politics, Stanley Ho, The Mob, The Strip | Comments Off on The bill that wouldn’t die; Taking a wrecking ball to “Jubilee!”

Atlantic City ‘Net betting gathers speed; Render unto Loveman

Posted on October 17, 2013 by David McKee

Golden Nugget ACThree more casinos have been green-lit to take Internet wagers along the Boardwalk. As you know, Borgata had already been approved. The second license went to the Golden Nugget, which is running its own site, with assistance from Bally Technologies. Needless to say, the Golden Nugget’s resale value just got more than a little bump. Close behind the Pepite d’Or were the two Trump Entertainment Resorts properties. TER is to be applauded for getting on it while Revel Resort and Atlantic Club Hotel continue to dawdle. (I doubt that Atlantic Club owner Tom Barrack would recognize Internet gambling if he fell over it.) They should get with the program. As Dr. David G. Schwartz writes, it’s the beginning of one era … and the end of another.
Caesars Entertainment is the emperor of social gaming, judging by Continue reading →

Posted in Arizona, Atlantic City, Boyd Gaming, Colony Capital, Harrah's, IGT, Internet gambling, Revel, Tilman Fertitta, Tribal, Trump Entertainment Resorts, Wisconsin | 1 Comment

Quote of the Day

Posted on October 17, 2013 by David McKee

[W]e find the results to be somewhat indicative of regional gaming operators beginning to see problems cutting expenses to mitigate top line headwinds. As such, we anticipate concerns surrounding top line regional gaming revenue trends to escalate and believe regional gaming operators are likely to see pressure following today’s release.” — Deutsche Bank analyst Carlo Santarelli, responding to a disappointing third-quarter earnings report from Penn National Gaming.

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Air Loveman; Wiggle room in Macao

Posted on October 16, 2013 by David McKee

Loveman fluffyAnyone who meets Caesars Entertainment Chairman/President/CEO Gary Loveman is likely to be overcome by a strong whiff of self-importance. It’s not just palpable, it’s quantifiable. This week we learned that Caesars had spent lugging Loveman hither and yon, at a cost of $536K, supposedly for “security reasons.” Is Loveman too afraid of his own workforce that he doesn’t dare fly commercial? Or would be rather not mingle with the hoi polloi? I suspect it’s more of the latter than the former. Anyway, Caesars is trying to wriggle out of a $12 million tax bill for its air corps, which is how Loveman’s half-million clams in free rides came to light.

Macao‘s government has denied rumors that it’s going to lift its cap on Chuitable games in the enclave. What are the odds that one or more of the six casino operators started the rumor, perhaps in an effort to stampede Fernando Chui‘s administration? However, the local government is signaling its flexibility on the issue of croupiers from the mainland. Resident croupiers are dead set against it. Secretary for Economy and Finance Francis Tam Pak Yuen has proposed a governmental policy that stops short of an outright ban, leaving the door open for non-resident croupiers down the road.

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Domino Theory

Posted on October 16, 2013 by David McKee

While sledgehammers were pointlessly falling on a slot machine in Albany (see below), a far more important melodrama was playing out nearby. Bankruptcy lawyer Eric Snyder had sought to block Proposal One, on the grounds that its language is too casino-friendly. (It is pretty roseate.) However, he didn’t find a sympathetic ear from acting Supreme Court* Justice Richard Plakin. The latter threw Snyder’s challenge into the circular file, as it were, calling “untimely” and without merit. Snyder promises to appeal.

Snyder had missed an Oct. 1 filing deadline, one of the reasons for Continue reading →

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