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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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 →

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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