Quote of the Day

Posted on October 16, 2013 by David McKee

Liberace slot“Evoking the spirits of Mayor Fiorello H. La Guardia and Gallagher the Comedian, a small group of antigambling activists demolished a defunct slot machine outside the Capitol on Tuesday in the latest attempt to draw attention to the “No” campaign, which is trailing in polls against a more organized and better financed “Yes” side in the fight over Proposal No. 1.” — The New York Times, reporting on a publicity stunt staged by casino opponents in Albany yesterday. If your campaign tactics are being likened to a Gallagher performance it may be time to call it a day.

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Singin’ the blues in Pennsylvania, Louisiana

Posted on October 16, 2013 by David McKee

Even slight improvements in consumer spending weren’t enough to help Pennsylvania. Gross gambling revenue fell 6%. Thanks to strong table play, Sands Bethlehem was able to buck the trend, staying flat for harrahs-chesterSeptember. By contrast, Harrah’s Philadelphia — in a crowded market — got hit hard, posting steep declines both at the slots and tables, down $16.5 million. Other Philadelphia casinos did not suffer nearly so badly, with Parx Casino still dominating the market, down only 2%. Outstate, the Presque Isle racino continued to bleed market share to Ohio, down 14%.

Despite its central location, Penn National Gaming‘s eponymous racino also had a hard month, down 12%. Withstanding new competition from Continue reading →

Posted in Dining, Greenwood Racing, Harrah's, Isle of Capri, Louisiana, Neil Bluhm, Ohio, Penn National, Pennsylvania, Pinnacle Entertainment, Sheldon Adelson, The Strip, Wall Street | Comments Off on Singin’ the blues in Pennsylvania, Louisiana

Meet Tim Wilmott; Go big or go home

Posted on October 15, 2013 by David McKee

Penn National Gaming‘s COO lays out his company’s operating philosophy in potted form.

Margaritaville OKGoing up. One city will get more casino than expected and another one might. In Tulsa, the tribally owned River Spirit Casino will add four hotel floors but, paradoxically, fewer rooms — down from 500 to 483. It’s part of rebranding the property as a  Continue reading →

Posted in Atlantic City, Cordish Co., Harrah's, Massachusetts, Oklahoma, Penn National, Tribal | 1 Comment

Quote of the Day

Posted on October 15, 2013 by David McKee

Dice-in-craps“The critics would prefer the good old days, when the only way to satisfy the urge was to make the expensive journey to Sin City, Nev. Ever since legal gambling began proliferating, they’ve been crying wolf. But in stark contrast to the outcome of the fable, the wolf has failed to appear. The image we get from these advocates is that the more available legal gambling is the more destruction ensues. Given our latent puritanical distrust of harmless pleasures, that may sound eminently plausible, but it isn’t true.” — Steve Chapman of the Chicago Tribune on the latest barrage of anti-gambling propaganda from the Institute of American Values and others.

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Hey, Big Spender

Posted on October 15, 2013 by David McKee

Seal_of_New_York.svgPro-gaming lobbyists outnumbered lawmakers in the last Legislature in New York State — with more than three-dozen entities getting into the action. They’ve also dropped an average of $7.4 million a year on lobbying efforts. That’s not much compared to the $34 million a year spent in Washington, D.C., but it’s still pretty “george.” If the pro-casino measure passes in November the fun begins all over again as interested parties jostle over the four initial licenses. As Common Cause Director Susan Lerner dryly observed, “Albany is extra skilled in creating opportunities for the gambling industry to throw money at it.” In some cases, lobbyists were retained by Casino X simply to keep them away from Casino Y.

For instance, rich uncle Genting Group had five lobbying firms representing it in Albany. Genting is hoping to Continue reading →

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Quote of the Day

Posted on October 14, 2013 by David McKee

The Act

“[W]hat you and I and most decent people consider vulgar, depraved and perverted” — Las Vegas Sands attorney Charles McCrea Jr.’s description of The Act, the sex show inside Palazzo that closed last weekend. Vulgarity? Depravity? Perversion? Aren’t those the three, key selling points of Las Vegas?

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Scott Walker, optimist; Having it both ways in Kentucky

Posted on October 14, 2013 by David McKee

Wisconsin Gov. Scott Walker (R) must have an upbeat disposition. He’s going to try and get representatives of all of the state’s gambling-enabled scott-walker1tribes in a room this week. The subject, of course, is the Menominee Tribe‘s Dairyland proposal, which has drawn the ire of an influential minority of aforesaid tribes. Considering that Walker wants a unanimous consensus on the Menominee proposal and that other tribes would have to give up gambling positions to achieve the “no net increase” that Walker says he wants … well, he’s got to be an optimist to attempt to “like to see a win-win.” But give him credit for trying. Walker hasn’t vetoed the Menominee proposal outright and hasn’t put all the onus on the tribes to make it happen or not, as previously appeared would be the case.

“Gambling is just never going to recover. They’re kidding themselves if they think it is. You don’t go from a monopoly to competition and make the same rate of return.” So said  Continue reading →

Posted in Delaware, Economy, Kentucky, Racinos, Sports, Taxes, Tribal, Wisconsin | Comments Off on Scott Walker, optimist; Having it both ways in Kentucky

Quote of the Day

Posted on October 14, 2013 by David McKee

“I had a migraine the whole last week when I was trying to assess this. It’s really disturbing when it’s all just because of politics. They’re taking families’ livelihoods away.” — Yurok Tribe Vice Chairwoman Susan Marsten on the federal government shutdown’s effect among Native American bands. As Reuters reported, “While some tribes have used income from casinos to defray the cuts and others have leveraged assets not in federal trust to borrow needed cash, those less fortunate have been left to take the suspension in government services on the chin.”

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Mississippi’s plight and other Case Bets

Posted on October 14, 2013 by David McKee

At the risk of sounding apocalyptic, the best years of the Mississippi MS state sealcasino industry may be behind it. This year’s revenue is projected to top out at $2.15 million, well below 2007’s all-time peak of $2.9 million. Admissions were 3.7 million fewer in the 2Q13 than in 2Q07. Rival attractions in Arkansas, Louisiana and even as distant as Oklahoma are draining off business. Casinos that go downhill, like the DiamondJacks riverboat in Vicksburg, can’t count on buyers to rescue them from their troubles. (The DiamondJacks fleet lost a potential buyer after the facilities were deemed “woeful.) So now there’s Vegas-like talk about diversifying the amenities on offer, in hopes of bringing back customers. Gaming’s been around in that part of the country for a couple of decades and customers may need new reasons to spend, aside from gambling. If Mississippi casinos need ideas, they could look to tribal casinos for inspiration.

Case bets … Casino detractors are always pooh-poohing the effects of Continue reading →

Posted in Detroit, Economy, Mississippi, Regulation, Taxes, The Strip | 1 Comment

Clean sweep in Maryland; Clobberin’ time in Albany

Posted on October 11, 2013 by David McKee

Not unsurprisingly, MGM Resorts International, Penn National Gaming and Greenwood Racing (owner of Philadelphia‘s Parx Casino) received the unanimous benediction of the Maryland Lottery & Gaming Control Commission this week. Since Penn already operates in the Free State, its approval could, of course, be taken for Pansy_granted. MGM was pretty thoroughly vetted and its approval was conditional on the company having no further contact with ex-board member and electronic snoop Terry Christensen. That should be easy to do. Since Maryland has reviewed MGM’s dealings with Pansy Ho (left) and deemed them moot, this — along with the Christensen stipulation — should remove any unease about MGM getting licensed in Massachusetts and forgiven in New Jersey. CEO Jim Murren had to be pretty happy about that: Think of all that Borgata revenue, piling up in trust, tantalizingly out of reach.

Greenwood’s approval was also probationary. Chairman Robert Green has to sever ties with convicted felon Continue reading →

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End of an era; Boyd needs to do better

Posted on October 11, 2013 by David McKee

JN NuggetFamily owned casinos continue to become a thing of the past. Latest casualty: John Ascuaga’s Nugget, an icon of the Reno-Sparks market. The Ascuagas are giving way to out-of-state owner Husky Finance and operator Global Gaming & Hospitality, whose principals include the respected Carlton Geer. In a doleful statement, CEO Michonne Ascuaga said it was “the best possible scenario … The new owners have the financial resources needed to invest in the property and allow it, and its 1,300 employees, to prosper in the years ahead.”

In other words, the Ascuagas are tapped out. Husky and Global promise an immediate capex infusion of Continue reading →

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Yard sale at Caesars; Disney vs. Genting; New boss at Revel

Posted on October 11, 2013 by David McKee

“It’s a lot of crap.” That’s the verdict of one auctioneer, sussing out the surplus merchandise on view at The Rio, site of a big surplus-inventory sale pigby Caesars Entertainment. One doesn’t even have to be there to bid. You could get everything from a 2003 Mercedes-Benz (!?!) to boxes of perfume, saving your wife from ever having to buy any again. These sales are standard industry practice but we like the symbolism of Gary Loveman‘s company offloading a bunch of tired merchandise to scare up some quick cash. Besides, you never know when a six-foot, gold pig might come in handy. It’d be a real conversation-starter. Be the first on the block! Impress your friends!

Labor discontent is mounting in Macao. Residents object to croupiers being recruited from the mainland. One protest already Continue reading →

Posted in Atlantic City, Florida, Genting, Harrah's, Macau, Politics, Revel, Station Casinos, Tribal | Comments Off on Yard sale at Caesars; Disney vs. Genting; New boss at Revel

Atlantic City: It’s that time again

Posted on October 10, 2013 by David McKee

Since the next two months of 2013 involve comparisons to Hurricane Sandy, they won’t really count as measurements of Atlantic City‘s Borgatafinancial health. So here’s a last look-in for a while now. The market as a whole dropped 13% with Borgata, at -6.5%, splitting the difference. Table game revenue dropped 19% while slot win was 11% down, on substantially lower drop and coin-in. With the exception of table hold, Borgata outperformed the market in every single metric of importance.

The Atlantic Club Hotel eked out a small increase (4%) and was the sole casino to do so. A 28% plunge at low-grossing Trump Plaza wasn’t a surprise but a 28.5% dive at Continue reading →

Posted in Boyd Gaming, Colony Capital, Donald Trump, Harrah's, Mohegan Sun, Revel, Wall Street | 2 Comments

Casino explosion in the Far East

Posted on October 10, 2013 by David McKee

Gaming-casinoNow that they’ve seen what Macao and Singapore can do with casino resorts, practically everyone else in the Pacific Rim wants in. Gaming is already big business in the Philippines, but Lawrence Ho and others like him are convinced they can rival or surpass Singapore — where Marina Bay Sands has pulled decisively ahead of Resorts World Sentosa — for the #2 spot in the region. That would require tripling the archipelago’s gambling output, but Ho is confident that megaresorts like his in-progress City of Dreams Manila will do the trick.

They’d be looking at a much stiffer tax burden — potentially 35% — than they face in Singapore, but that doesn’t seem to represent much of a Continue reading →

Posted in Economy, Genting, Harrah's, International, James Packer, Lawrence Ho, Macau, Melco Crown Entertainment, MGM Mirage, Sheldon Adelson, Singapore | Comments Off on Casino explosion in the Far East

New life for EuroVegas?; Trailer Station rides again;

Posted on October 10, 2013 by David McKee

Shelly AdelsonSheldon Adelson may have charmed out a back-door exemption to Spain‘s antismoking policy. The national government is drafting legislation that would give provinces wiggle room where the ban is concerned. Which means that Madrid could go ahead and give Adelson the latitude upon which his $22 billion EuroVegas is predicated. Closer to home, Adelson’s legal team is trying to stave off the reinstatement of a defamation claim against the mogul.

It’s a well-established Las Vegas Sands tradition to hit people below the belt but Judge Michael Cherry didn’t sound to sympathetic to the arguments of ex-Sands China CEO Steven Jacobs. This is the latest twist in a zany Continue reading →

Posted in Current, Downtown, Environment, Hard Rock International, International, Macau, Sheldon Adelson, Station Casinos, Tribal, Wisconsin | Comments Off on New life for EuroVegas?; Trailer Station rides again;

And the winner is … Borgata; Black eased out; Kudos to Sands

Posted on October 10, 2013 by David McKee

Leading the field, Borgata received New Jersey‘s first Internet-gambling license and will begin test play on Nov. 21. Congratulations to Boyd Gaming and partner bwin.party for having their ducks in a row. Understated Borgata prexy Tom Ballance, “It’s always nice to be first in the queue.” Now it’s a question of leveraging Borgata’s stellar brand equity into the digital domain. Just because you have a great casino floor, there’s no guarantee that’s going to translate into a comparable online experience.
He’s outta here. The face of Mesquite’s gaming industry, Randy Black, has — what’s the term? — “retired” from Mesquite Gaming, which is controlled by Continue reading →

Posted in Atlantic City, Boyd Gaming, Current, Internet gambling, Massachusetts, Mesquite, Michael Gaughan, Pennsylvania, Sheldon Adelson, Tribal | Comments Off on And the winner is … Borgata; Black eased out; Kudos to Sands

Indiana: Worse than expected?

Posted on October 9, 2013 by David McKee

belterraDespite per-patron spending that was up 7% last month, a 16% falloff in admissions more than negated it. Depending on whether one counts tax-deductible free play or not, Indiana was anywhere from 9.5% to 11% down last month. Tight consumer spending unquestionably played a role but Horseshoe Cincinnati merrily played havoc with revenues in southern Indiana. Penn National Gaming‘s Hollywood Lawrenceburg plunged 36%. (Yikes!) Pinnacle Entertainment’s Belterra slid 19%, to just under $10 million. Wall Street analysts were divided as to whether the results were better or worse than expected. Caesars Entertainment properties held firm, with Continue reading →

Posted in Boyd Gaming, Economy, Harrah's, Indiana, Ohio, Penn National, Pinnacle Entertainment, Racinos, Wall Street | 1 Comment

Quote of the Day

Posted on October 9, 2013 by David McKee

“People just can’t believe the government can be as immature as they seem to be acting right now. We’re just hoping that adults get into the room and get something done.” — MGM Resorts International CEO Jim Murren, during a Bloomberg TV interview.

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Florida: Clear as mud; MGM lands Lakers

Posted on October 9, 2013 by David McKee

So, the Florida Lege commissioned this $400,000 study of casino expansion and nobody can agree on what it means. Spectrum Genting MiamiGaming Group, which performed the survey, is having to explain why it projected so much more revenue when Genting Group was planning a super-casino (pictured) in Miami. (Answer: Genting was planning to market heavily to international players.) What solons are learning — undoubtedly to their chagrin — is that the economic effects are now seen as “moderate” and largely derived from Florida citizens, not tourists. Spectrum forecasts one scenario whereby the industry would gross $5.4 billion a year — a tad higher than Atlantic City at its zenith, which seems reasonable. However, that’s predicated upon a wide-open gambling expansion not only at the state’s parimutuels but also into Orlando. (Like that’s gonna happen.) This plan for six resort casinos and an unspecified number of racinos would lift Florida into sixth place in the U.S. in terms of casino product. The Occam’s Razor Prize goes to Continue reading →

Posted in Atlantic City, Delaware, Economy, Florida, Genting, MGM Mirage, Politics, Racinos, Sports, The Strip, Tribal | Comments Off on Florida: Clear as mud; MGM lands Lakers

Game time in Massachusetts;

Posted on October 8, 2013 by David McKee

PlainridgeThree casino firms got ready to rumble yesterday, as the Massachusetts Gaming Commission heard pitches from all slot parlor applicants. It was a day characterized as filled with “glitzy renderings and plenty of big promises … soaring music, testimonials, and pictures of good-looking people enjoying a good time at a casino.” More germane was what each company offered to bring to the table. Penn National Gaming‘s deal with Plainridge Racecourse would make it “the last line of defense” between Massachusetts gamblers and Twin Rivers racino across the border. Penn also promised to keep harness racing alive in the Bay State and touted its Doug Flutie affiliation, including periodic rights to display Flutie’s Heisman Trophy. Raynham Park developers offered to create a “soft landing place” for harness racing if they got the slots license. They also promised Continue reading →

Posted in Cordish Co., Maryland, New York, Penn National, Regulation, Taxes, Tribal, West Virginia | 2 Comments