Quote of the Day

Posted on September 20, 2013 by David McKee

“Las Vegas Sands, which owns the Venetian, is aware of the tourist grumblings. After all, it’s Sin City, where adults are supposed to be able to regress to a boozy infancy, with every need and desire accommodated.” — Hannah Dreier, of The Associated Press, on visitors’ disappointment that Venetian canals have been drained for repair.

Posted in Sheldon Adelson, The Strip, Tourism | Comments Off on Quote of the Day

(Almost) Everybody wins in Louisiana

Posted on September 19, 2013 by David McKee

First the good news: Louisiana was up 14% last month. Now the less-good news: Take away the two new riverboats and the market was up 1%. L’Auberge Baton Rouge and Margaritaville, in Shreveport, were getting the job done, in essence, especially the former: Revenues in the Baton Rouge marketplace were up 59%. Margaritaville‘s rising tide ($11.6 million, third-best in the market) failed to lift all boats, as the Shreveport/Bossier City area fell 10%. Lake Charles was up 7%, as was New Orleans. Pinnacle Entertainment‘s Boomtown Boosier felt the effect of Margaritaville, off 18%, far, far worse than J.P. Morgan analyst Joseph Greff projected.

Sam’s Town took a 17% hit, while reliable Continue reading →

Posted in Boyd Gaming, Economy, Louisiana, Penn National, Pinnacle Entertainment, Wall Street | Comments Off on (Almost) Everybody wins in Louisiana

Japan’s in; Chaperoned at Caesars; D.C. gridlock strikes again

Posted on September 19, 2013 by David McKee

A pro-casino group of lawmakers plans to introduce gambling-enabling legislation in the upcoming session of the Japanese Diet. Steve Wynn was quick to plunk $4 billion-plus on the table, while MGM Resorts International promises unspecified “billions.” It’s like a gold rush and we’ve already heard from crusty old prospector Sheldon Adelson, who always knows where the money is. Casino moguls look at the Japan market and get positively pie-eyed, so great are the revenue possibilities (including drawing off some of the cream of the Chinese market).

Then it’s a question of finding name-brand Japanese companies to go in with them as joint-venture partners. Heck, even Continue reading →

Posted in Harrah's, Japan, Massachusetts, Melco Crown Entertainment, MGM Mirage, Ohio, Sheldon Adelson, Stanley Ho, Steve Wynn, Tribal | Comments Off on Japan’s in; Chaperoned at Caesars; D.C. gridlock strikes again

Caesars: Borrowing time

Posted on September 19, 2013 by David McKee

“Caesars Entertainment Corporation (CZR) is a highly overvalued gaming, hotel, and entertainment company with deteriorating fundamentals on all levels in a highly competitive environment.” — Aaron Zander, Seeking Alpha.

It’s that moment we’ve all been waiting for, the one where Caesars Entertainment explains how it intends to pay down at least some of its $23.5 billion in debt. The answer? Borrow more money. Near-term debt will be exchanged for long-term notes, to the tune of $4.85 billion. Both the Octavius Tower at Caesars Palace and The Linq will be pledged against the new debt. Poor Linq: Not even Continue reading →

Posted in International, Massachusetts, New York, Taxes, Wall Street, World Series of Poker | Comments Off on Caesars: Borrowing time

Quote of the Day

Posted on September 19, 2013 by David McKee

“Really? Really? Caesars thinks they can do a billion dollars a year? Well. Hmm. If you look at some of the revenues from 2005, ‘06, ‘07, you can find a few individual properties generating those kinds of revenues. Today? Not happening.” — WhiteSand Gaming CEO Sal Scheri on Caesars Entertainment‘s revenue projections for Suffolk Downs, in Boston.

Posted in Economy, Harrah's, Massachusetts | Comments Off on Quote of the Day

Setback for New Jersey; Doom for Mathis; Tribal magic

Posted on September 17, 2013 by David McKee

Federal judges gave the boot to the Garden State’s attempt to enter the mega-lucrative sports betting market. A subset of the Third Circuit of the U.S. Court of Appeals upheld a reading of the Professional & Amateur Sports Betting Act that would make New Jersey‘s legalization of sports wagers illegal. This sets up a grudge match before the entire appellate court and, quite likely, an appeal to the U.S. Supreme Court.

One judge dissented in the ruling and a spokesman for Gov. Chris Christie (R) seized on it as though searching for a pony amidst the manure. “In the dissent, the judge agrees with New Jersey’s central argument — that the law is unconstitutional since it prevents sports betting in New Jersey against the wishes of its own elected officials and citizens. This makes the issue all the more appropriate to be decided by the U.S. Supreme Court.”

And that’s probably what will happen, even if the ‘decision’ is not to hear the case and give the Third Circuit the last word.

Also going before the courts is Florida‘s gray-market, Internet-gambling industry, which the Legislature somewhat Continue reading →

Posted in Atlantic City, Florida, Internet gambling, Oklahoma, Regulation, Tribal | Comments Off on Setback for New Jersey; Doom for Mathis; Tribal magic

Making the grade

Posted on September 17, 2013 by David McKee

Congratulations to the following casino industry figures for making it onto the Forbes 400 …

#11: Las Vegas Sands CEO Sheldon Adelson. He’s richer than you are.

#18: Fontainebleau owner Carl Icahn

#27: Scientific Games lead owner Ron Perelman

#36: Casino investor John Paulson

#118: Kirk Kerkorian, no introduction needed

#134: Donald Trump, spokesmodel for Continue reading →

Posted in Carl Icahn, Donald Trump, Fontainebleau, MGM Mirage, Phil Ruffin, Scientific Games, Sheldon Adelson, Station Casinos, Steve Wynn, Tilman Fertitta, Wall Street | Comments Off on Making the grade

This is a joke, right?

Posted on September 17, 2013 by David McKee

Joseph “Tomato King” Procacci‘s casino bid in Philadelphia is fast becoming the clown car at the circus. Every time he opens its door, a zillion putty-nosed faces come tumbling out. His newest gambit has been to announce a vast theme park, with everything from water sports to ziplines, with golf, dining and shopping thrown in, too. It’s a little bit of everything and not a lot of anything, from the looks of it. He does remember that he’s applying for a casino, right? (You have to look hard to find the hotel which presumably anchors the development.)

The something-for-everything proposal is described as being on a “family friendly mission,” which really make you wonder. It’s like the Tomato King wanted to build an amusement park and tacked on a casino as an afterthought. So-called LoSo Entertainment Center (not too catchy, IMO) would take 10 years to build and add $432 million to the casino tab. City officials might flip for Procacci’s notion, since they want whichever casino they approve to provide extraneous economic stimulus to the surrounding area. It’s debatable whether that’s what casinos do but the Tomato King’s certainly determined to make a three-ring circus of the process.

Trump Plaza may be stinking up the Boardwalk with its abysmal financial performance. But that doesn’t mean it will be allowed to cut the hours it provides tables games, Continue reading →

Posted in Atlantic City, Donald Trump, Economy, Foxwoods, Mohegan Sun, Pennsylvania, Regulation, Tomato King Procacci | Comments Off on This is a joke, right?

Dangerous complacency in New York

Posted on September 16, 2013 by David McKee

Casino advocates and New York State Gov. Andrew Cuomo (D) are making a risky wager regarding November’s ballot question that would dramatically expand gambling in upstate New York. They’re playing it cool, keeping most of their chips off the table. Cuomo is feigning neutrality on the issue rather than using the bully pulpit of his office to advocate for what is, after all, his baby. Although the casino question enjoys a large plurality of support, backers should look to Hard Rock International‘s recent ejection from West Springfield, Massachusetts, and think twice about chilling out.

If advocates have a war chest upon which they’re sitting, opponents have little money but considerable Continue reading →

Posted in Boyd Gaming, Current, Election, Foxwoods, Hard Rock International, Harrah's, Massachusetts, MGM Mirage, Politics, Sheldon Adelson | Comments Off on Dangerous complacency in New York

Gomes out, Adelson in, Japan on the fence

Posted on September 16, 2013 by David McKee

Take a good look at that flapper-era costume. It’s not long for Resorts Atlantic City. Now that the Mohegan Gaming Authority has well and truly taken the reins of the property, the late Dennis Gomes‘ Prohibition Era theming is on the way to the tipping bin. The ascendant, new influence is Jimmy Buffett. The success of his Margaritaville retrofit has been such a boost to Resorts’ financials (averaging 9% up over the last months) that one can expect the Margaritaville theme to be extended throughout the rest of Resorts A.C. Loyal “parrotheads” from up and down the Eastern Seaboard have been flocking to Resorts and bringing their “hedonistic tendencies” with them. In other words, it’s a party crowd. Between owner Morris Bailey‘s $70 million capex investment in Resorts and the Mohegans’ ability to cross-market it with Mohegan Sun and Pocono Downs, Resorts appears to have found a winning combination.

Who’s the boss? While Las Vegas Sands CEO Sheldon Adelson may be degenerating from peripheral neuritis, his hand is still steady enough to snare the Las Vegas Business Press‘ accolade as the top power-broker in Vegas. “For him, it seems to be about maintaining power, making sure that everyone knows he’s boss and that he can make things happen when and how he wants,” assesses Shannon Monnat, assistant professor of sociology at Penn State University. Which is a nice way of saying the Sultan of Sands doesn’t play well with others. Despite kowtowing to Adelson’s rather crass political donations, the LVBP feature also acknowledges their Continue reading →

Posted in Atlantic City, Dennis Gomes, International, Louisiana, Marketing, Mohegan Sun, Sheldon Adelson, Wall Street | Comments Off on Gomes out, Adelson in, Japan on the fence

Better times are here

Posted on September 16, 2013 by David McKee

Las Vegas remains lumbered with journalistic dinosaur Sherman Frederick, a grumbling, blogging old fussbudget who predicts doom and gloom as he tucks into his stewed prunes every morning. I’ve never run across anybody who rooted against their home town so vigorously. There’s no economic indicator that Squirmin’ Sherman doesn’t take as a sign of calamity. I’m afraid I have to lay some good news on him.

Yes, casino revenues are disappointing this year, tracking flat with 2012. However, the Strip continues to reinvent itself around other revenue sources. The baby-sized Treasure Island mall is proceeding apace, as is The Linq. “A property really can’t compete for the upscale visitor if it doesn’t have shopping. High-end retail is really what’s propelling the growth in taxable sales in Las Vegas,” reports UNLV Center for Business & Economic Development Director Steven Brown. He adds that shoppers aren’t migratory. If they’re staying at Encore, say, they’re not Continue reading →

Posted in CityCenter, Current, Economy, Entertainment, G2E, Hard Rock Hotel, Harrah's, International, MGM Mirage, Morgans Hotel Group, Phil Ruffin, The Mob, The Strip | 1 Comment

Trouble in another paradise; Sheldon’s sex shoppe

Posted on September 14, 2013 by David McKee

Overruling Massachusetts Attorney General Martha Coakley (D), a Bay State court has issued an injunction allow signature-gatherers to keep collecting voters’ John Hancocks on a petition to repeal 2011’s casino-enabling legislation. Considering the land purchases, to say nothing of the upfront fees casino developers have had to pay, we agree with Coakley that a repeal would be an unfair “taking.” It could also economically disastrous, what with casino legalization back on the table in New Hampshire and expansion of gambling at Twin Rivers, in Rhode Island, drawing heavily from the Boston market. Now Bishop Douglas Fisher has thrown his crozier into the ring, restating opposition to casino development in western Massachusetts. We know Fisher is doing what’s right by his conscience but can’t share his apocalyptic scenario.

To the east, Beantown mayoral candidates are using Steve Wynn as a piñata. State Rep. Martin J. Walsh simply wants more money for Charlestown. Opponent Daniel F. Conley wants it stopped outright, although he apparently supports close-to-home Suffolk Downs. Splitting the difference is City Councilor John R. Connolly, who would try to stop the Everett project if Wynn doesn’t pony up big bucks for Boston. Now that outgoing Mayor Thomas Menino has shifted his stance to a Wynn-tolerant one, the onus is on Wynn Resorts to get a deal done before, say, Conley or Connolly can get into office and mess it up.

Wynn’s other big, domestic-policy initiative, a casino in Philadelphia is encountering a Continue reading →

Posted in Current, Entertainment, Massachusetts, New Hampshire, Pennsylvania, Politics, Regulation, Rhode Island, Sheldon Adelson, Steve Wynn, The Strip | Comments Off on Trouble in another paradise; Sheldon’s sex shoppe

Trouble in paradise; Eight isn’t enough

Posted on September 14, 2013 by David McKee

That rising clamor you hear along the Strip isn’t just from weekend picketers at The Cosmopolitan of Las Vegas. No, the Culinary Union has significantly ratcheted up the rhetoric against Strip operators MGM Resorts International and Caesars Entertainment, and against Downtown behemoth Boyd Gaming. Having gone two and a half months without a contract, the union is losing patience, as is Bartenders Local 165, and they’re taking their fight to Wall Street. It’s difficult to say who’s to blame for the glacial pace of negotiations. Some ideas — like an alleged proposal by Caesars to index wage increases to its Las Vegas performance — appear to have been dead on arrival. Seriously, do you want the millstone of Caesars’ financial results around the neck of your salary?

Caesars’ labor practices — including increasing the quota of to be cleaned per shift — have been roiling the labor waters along the Boardwalk. The use of downloadable-slot technology is blamed for a fragmentation of service on the casino floor … and for increasingly inebriated patrons, who can order a drink at the push of a button. One cocktail waitress claims to have been punched in the face with a customer who was in their cups.

Over in Wisconsin, eight tribes have signaled their support for the Menominee Kenosha Gaming Authority. The Oneidas remain on the fence and Continue reading →

Posted in Atlantic City, Boyd Gaming, Current, Harrah's, MGM Mirage, Tribal, Wisconsin | Comments Off on Trouble in paradise; Eight isn’t enough

Motivated in Massachusetts; Naked at Horseshoe

Posted on September 12, 2013 by David McKee

If there’s anything to be learned from this week’s Hard Rock International face-plant in West Springfield, it’s not to take anything for granted. HRI made the mistake of believing its own poll, indeed, venerating it like holy writ, and got a rude surprise last Tuesday. Evidently determined not to make the same mistake, somebody — OK, Michael Kaplan — is launching a grass roots, pro-casino campaign in Milford. “The more I speak to people, the more I’ve found there is overwhelming support for the casino,” said Kaplan, who supports Foxwoods Massachusetts. He somewhat contradicts himself by saying, Continue reading →

Posted in Dining, Foxwoods, Hard Rock International, Harrah's, Louisiana, Massachusetts, Regulation, The Strip, Tribal | Comments Off on Motivated in Massachusetts; Naked at Horseshoe

Next Stop: Sri Lanka; Terra incognita

Posted on September 12, 2013 by David McKee

Launching a pre-emptive strike on the Indian subcontinent, the government of Sri Lanka has gone into casino gambling in a big way. It’s approved a $350 million “mixed development” (that’s what casino-hotels are called over there) by James Packer‘s Crown Ltd. The 400-room resort contemplated by Packer could get pricier still. However, it enjoys lakefront siting and an astoundingly “george” deal whereby all hotel taxes are waived for 10 years. And, once the tax holiday expires, the rate will still be 50% of that to which other Sri Lanka hotels are subject, for another 15 years.

Despite a much larger budget ($650 million and rising), John Keells Holdings had to settle Continue reading →

Posted in Bally Technologies, IGT, International, Internet gambling, James Packer, Phil Ruffin, Regulation, Scientific Games, Taxes, Wall Street | Comments Off on Next Stop: Sri Lanka; Terra incognita

Quote of the Day

Posted on September 12, 2013 by David McKee

“It’s still a $3 billion market. It’s still a lot. Not as big as it used to be, but sizable.”– Rick Mazer, newly approved to run Harrah’s Marina, where a new convention center is being built. Parent company Caesars Entertainment continues to pursue a fragmented leadership strategy in Atlantic City, where Kevin Ortzman oversees three of the four Caesars properties.

Posted in Atlantic City, Current, Harrah's | 1 Comment

Tilman impresses again; N.Y. nudges casino question

Posted on September 12, 2013 by David McKee

You have to hand it to Tilman Fertitta: He keeps reinvesting in his casino properties, unlike some people we could name. (*cough*Gary Loveman*cough*) Although “high roller” and “Laughlin” seem oxymoronic, that hasn’t stopped Fertitta from dropping a bundle on the three-bedroom Gold Rush Villa, next door to the Golden Nugget. Amenities are described as “floor-to-ceiling windows overlooking the Colorado River, a full kitchen, bar and expansive living area as well as a private garage and courtyard that sets the scene for the perfect relaxing evening or morning cup of coffee.” Laughlin, a string of casinos on a slab of sun-baked, barren earth, has never seemed worth a drive — but Tilman’s got me rethinking that position. Good work.

New York State Gov. Andrew Cuomo (D) has made quite a point of his ostensible neutrality on a constitutional amendment regarding the increase of Continue reading →

Posted in Architecture, Election, Laughlin, New York, Tilman Fertitta | 1 Comment

Massachusetts: One win, one loss, one surrender

Posted on September 11, 2013 by David McKee

In a real shocker, residents of West Springfield rejected Hard Rock International — and $18 million a year. Local media obligingly regurgitated over and over again Hard Rock-sourced poll numbers that showed the casino eking out a narrow win. When the votes were counted, however, the result was the other way around and not close. The opposition was overwhelmingly outspent but zealous, turning out to have the superior “ground game.” Hard Rock bore its humiliation with grace, while lead activist Nathan Bech took a victory lap. Next, he heads to Palmer to try and do to Mohegan Sun what he did to Hard Rock. The Mohegans’ offer is, on a per-capital basis, so incredibly “george,” that he will have a tougher row to hoe there. For its part, Hard Rock could strike at the southeastern region of the state, where the Mashpee Wampanoags look to be as a long a shot as ever.

Bech’s political aspirations are certain to get a boost from yesterday’s vote while Hard Rock CEO James Allen has to ponder Continue reading →

Posted in Current, Hard Rock International, Massachusetts, MGM Mirage, Mohegan Sun, Neil Bluhm, Penn National, Regulation | Comments Off on Massachusetts: One win, one loss, one surrender

Revel resurgent; MGM, Sands to Japan

Posted on September 10, 2013 by David McKee

For all the flack that it’s taken for its misleading “refund” on losses promotion, Revel Resort continues to woo customers back. Its revenues rose 2% in August, pushing the megaresort ahead of Showboat and into the middle tier of Atlantic City casinos. Tropicana Atlantic City fell 18% and Trump Entertainment Resorts underperformed as usual, down 16% in what is ostensibly prime business time. If that’s how they and the Trop do in August, what can we hope for when the cold weather returns? The Caesars Entertainment quartet dropped an average of 9% each, with Harrah’s Marina having the worst of it. Borgata continued to dwarf the market, with $63 million and a 13% gain, while Resorts Atlantic City was another bright spot, up 12%

Sandals on the ground. Sleuths from Las Vegas Sands and MGM Resorts International are among the many who are Continue reading →

Posted in Boyd Gaming, Current, Donald Trump, Harrah's, International, Melco Crown Entertainment, MGM Mirage, Mohegan Sun, Revel, Sheldon Adelson, Stanley Ho, Tropicana Entertainment | 3 Comments

Upturn in Illinois, blindsided in Indiana

Posted on September 10, 2013 by David McKee

Could we finally be seeing “green shoots” in Illinois, up 5% last month? Maybe, although such recovery as there was consisted of the force that is Rivers Casino, up 36%. Penn National Gaming‘s three casinos posted a feeble $29 million, down 7% and undershooting Wall Street‘s expectations. Caesars Entertainment‘s two casinos were, combined, flat year-over-year, for a $27 gross, while Boyd Gaming‘s Par-A-Dice fell 8%, to $9 million. MGM Resorts International‘s Grand Victoria saw a rare but welcome Continue reading →

Posted in Current, Economy, Harrah's, Illinois, Indiana, MGM Mirage, Neil Bluhm, Ohio, Penn National, Pinnacle Entertainment, Racinos, Regulation, Slot routes, Wall Street | Comments Off on Upturn in Illinois, blindsided in Indiana