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 →

Posted in Atlantic City, Massachusetts, MGM Mirage, New York, Penn National, Problem gambling, Regulation | Comments Off on Clean sweep in Maryland; Clobberin’ time in Albany

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 →

Posted in Boyd Gaming, Cretins, Current, Economy, Reno | Comments Off on End of an era; Boyd needs to do better

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.

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

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

Freeman flunks; Casino insecurity; Between a Hard Rock and a good deed

Posted on October 8, 2013 by David McKee

Geoff-FreemanIt’s a good thing that American Gaming Association President Geoff Freeman hightailed it to Barcelona this week to give a speech. During Global Gaming Expo, his signature achievement was to stake the AGA’s credibility on a Justin Timberlake movie. Freeman didn’t exactly bring sexy back: Runner Runner scared up a paltry $7.6 million at the domestic box office. Americans clearly find the threat of Internet casinos a less-than-compelling topic. It’s also hard to posture about the need for federal regulation when the industry — including fellow scare tacticians MGM Resorts International and Caesars Entertainment — is piling into New Jersey, Nevada and Delaware as fast as it can, looking for i-gaming licenses. (Fiscal relief can’t come a moment too soon for Atlantic City.) Freeman gets an “F” for putting so much faith and credit on Runner Runner. Besides, Congress has better things to do. On second thought …

While in Barcelona, Freeman identified several priorities. These included removing regulatory barriers to “the intersection of digital technology and social media” (read: Internet gambling), to recapture young gamblers who are now spending their money on nightclubs and pool parties. While he’s right to warn against “bad actors” in the digital sphere, he might look closer to home. A disturbing Associated Press story reveals Continue reading →

Posted in Alex Yemenidjian, Atlantic City, Charity, Delaware, Economy, Election, G2E, Hard Rock International, Harrah's, Indiana, Internet gambling, Massachusetts, MGM Mirage, Movies, New York, Penn National, Regulation, Taxes, The Strip, Tourism | Comments Off on Freeman flunks; Casino insecurity; Between a Hard Rock and a good deed

Big fellow on the Strip

Posted on October 8, 2013 by David McKee

I’m definitely feeling the love for MGM Resorts International, for its role in helping to save O.D., a giant sea turtle, by bringing him to Las Vegas. It’s feel-good story that will linger in your heart, whether or not it helps the bottom line. And if you’re coming to Vegas, be sure to check him out at Shark Reef, where the slow and hypnotic swimming of the turtles creates a serenity that’s beyond price.

Posted in Animals, MGM Mirage, The Strip, Tourism | Comments Off on Big fellow on the Strip

Sammy Boy’s long shot

Posted on October 8, 2013 by David McKee

Work continues apace on the conversion of the Sahara into the SLS Las Vegas.  This CBS This Morning piece raises more questions than it answers. For instance, by putting so much emphasis on restaurant, hotel, pool and nightclub revenue streams — and implicitly pooh-poohing gambling — is Sam Nazarian signaling (again) that he won’t apply for a gaming license? On the south side of the Sahara’s hulk, he has printed, “North is the new South.” Keep dreaming, Sam.

Posted in Entertainment, Sahara, Sam Nazarian, The Strip | Comments Off on Sammy Boy’s long shot

Ohio: Murky prospects

Posted on October 7, 2013 by David McKee

ohio_plate_08Casino gambling in Ohio last month generated $91 million — an 81% increase on last year. But, when you look same-store results, there was a lot of robbing Peter to pay Paul. Penn National Gaming‘s Hollywood Casino Columbus, Caesars Entertainment‘s Horseshoe Cincinatti and its Thistledown Racetrack racino weren’t around a year ago. So, what the data tells us that they’re paradoxically creating many new players but also skimming Continue reading →

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Quote of the Day

Posted on October 7, 2013 by David McKee

hotram-327-08“MGM [Resorts International] might have made a shrewd move disentangling themselves as there isn’t much other than the casino there right now. With all the other projects kicking off in Asia I doubt if it will become a class destination in its own right for many years to come, if ever.” — GamingFloor.com‘s Ian Sutton, reacting to truly depressing imagery from the Ho Tram Strip in Vietnam. It looks like Tunica, circa 1995.

Posted in International, MGM Mirage | 1 Comment

Illinois’ blues; G2E revisited; Ohio, one year later

Posted on October 7, 2013 by David McKee

Illinois‘ casinos got kicked in the pants last month, as revenues and foot traffic were down 9% each. The lone bright spot was Caesars Entertainment, which beat expectations, up 1%. True, Harrah’s Metropolis was off 22% but strong numbers at Harrah’s Joliet (up 14%) pushed the company’s numbers into the “plus” column. Despite being by far the highest grossing casino in the Land of Lincoln — $35 million — Rivers Casino slipped 13%. Penn National Gaming had a terrible month at all its properties: -11.5% at Alton Belle, 15% at Empress Joliet and -13% at Hollywood Aurora. Wrote J.P. Morgan’s Joseph Greff, “these results are generally reflective of the well-known softness in the lower-end regional gaming consumer.”

It gives one an idea how little is expected from Illinois that Boyd Gaming‘s Par-A-Dice slid 5% and still beat analyst expectations. In any event, operators need to find out what Harrah’s Joliet was doing last month and give it a try themselves.

G2E redux. Miss Global Gaming Expo? The Las Vegas Review-Journal‘s Howard Stutz makes you feel Continue reading →

Posted in Boyd Gaming, Economy, G2E, Harrah's, Illinois, New York, Ohio, Penn National | Comments Off on Illinois’ blues; G2E revisited; Ohio, one year later

How Caesars does it

Posted on October 7, 2013 by David McKee

thequad_rendering_091712While we think the idea of a bake sale to reduce Caesars Entertainment‘s $23.5 billion debt is satirical, you never know. It wouldn’t be the most cockamamie idea ever to emerge from Gary Loveman‘s office. We asked one of our sources how Caesars is able to juggle so much debt and the reply, in part, ran as follows:

Each of these financings were able to be accomplished for different reasons, but the key is rooted in CZR’s multi-box structure (OpCo, PropCo, Parent). They can sell assets across the different boxes, swap assets, or even write an asset down to Continue reading →

Posted in Charity, Harrah's, Missouri, The Strip, Wall Street | 1 Comment

Learning to love the Boardwalk again

Posted on October 4, 2013 by David McKee

atlantic-city-hilton-casino-resortIn a surprising — but not unwelcome — turn of events two Philadelphia casino investors are looking at getting into Atlantic City. It’s amazing the effect legalized Internet betting can have. Business partners George Miller and Kevin Flynn own 0.5% of Harrah’s Philadelphia, but they’re shopping on the Boardwalk these days. Naturally, the Atlantic Club Hotel ranks highest among the probable candidates for a purchase but Miller says he’s looking “all over the place.”

We already know that Tilman Fertitta has quickly soured on the Golden Nugget Atlantic City and is talking Continue reading →

Posted in Architecture, Atlantic City, Boyd Gaming, Colony Capital, Current, Dining, Donald Trump, Hard Rock Hotel, Harrah's, Internet gambling, Pennsylvania, The Strip, Tilman Fertitta | 2 Comments

What did Lee Amaitis know and when did he know it?

Posted on October 4, 2013 by David McKee

AmaitisAccording to the Wall Street Journal, the founder of Cantor Gaming — Lee Amaitis (left) — is under federal scrutiny for an alleged role in illegal sports wagering. Already one Cantor exec, Michael Cantor, has copped a plea for facilitated the movement of unlawful wagers from Queens to Las Vegas. As the WSJ explains, ” Prosecutors said wagers from a small number of high-stakes bettors left Cantor exposed to large potential losses. To offset the risk from those big bets, Mr. Colbert allegedly sought other bets that would cancel out the large wagers,” write WSJ reporters.

“Brooklyn Bruiser” Amaitis is just part of a wider federal probe, supposedly, after Cantor investigated itself and Continue reading →

Posted in Alex Yemenidjian, Cantor Gaming, Entertainment, Massachusetts, Penn National, Regulation, The Strip | Comments Off on What did Lee Amaitis know and when did he know it?