Bad day for Tomato King and Wynn

stevewynnWhile the City of Philadelphia is officially neutral on who should get the last gambling license for the area, it’s not above giving the Pennsylvania Gaming Control Board a not-so-gentle-nudge. At a hearing led by Deputy Mayor Alan Greenberger, two favorites emerged … and a couple of big names suffered major setbacks. City leaders are cool toward Steve Wynn‘s proposed, $900 million casino, mainly because of its close proximity to SugarHouse, which they fear could harm the latter. At the same time, casinos outside the city’s center were frowned upon.

That’s a setback for Cordish Gaming, which could take cold consolation from the fact that Hollywood Philadelphia got an even frostier reception. And, bringing up the rear was Continue reading

Posted in Architecture, Cordish Co., Cosmopolitan, International, Macau, Penn National, Pennsylvania, Regulation, Sheldon Adelson, Singapore, Steve Wynn, Tomato King Procacci, Tourism | Comments Off on Bad day for Tomato King and Wynn

Massachusetts: Victory in Leominster; Mazer makes waves

massachusetts_flagCordish Gaming crushed the opposition in Leominster yesterday, winning approval for a slot parlor with 61% of the vote. The campaign was notable for the personal participation of David Cordish, who went door-to-door to drum up support. The whippet-thin senior citizen pressed the flesh making his casino + Leominster = lower taxes argument. The third time really was the charm for Cordish, having been rejected in two other Massachusetts towns. Opponents, having chased Rush Street Gaming out of Millbury, tried to recycle the same campaign for Leominster, without success.

So now it’s down to Penn National Gaming, longtime adversary Cordish and Parx Casino (in partnership with Raynham Park) for one slot parlor license. Plainridge is on the doorstep of the Providence market but Cordish is a stone’s throw from New Hampshire. Penn may also be too close to resort-contending Milford for the Massachusetts Gaming Commission‘s taste. Given its relative isolation from other casino-seeking cities, Leonminster may just have an ace up its sleeve.

In an attention-getting speech, Harrah’s Atlantic City CEO Rick Mazer is Rick Mazerpreaching the virtues of coexistence. It’s a message that was long overdue. It’s past time that somebody said, “I would encourage you all to … start working together to bring people to Atlantic City and bring it back to what I believe it could be — the dynamic environment, the dynamic town and the natural resources that don’t exist anywhere else, including Las Vegas.” He’s been stumping the Boardwalk with that message and has at least one ally: Borgata Senior Vice President of Operations Joe Lupo. Mazer’s secondary message is for casinos to diversify their product offerings. If Mazer speaks for Caesars Entertainment — and there’s no reason to believe he doesn’t — those four properties plus Borgata make an imposing group of potential collaborators. Whether still others will go along remains to be seen, with the Atlantic Club forever in flux and Tilman Fertitta pulling the chicken switch over at the Golden Nugget. For shame, Tilman, for shame.

In what is described as its most significant gaming investment in a decade, Caesars ordered up 7,000 video poker machines from International Game Technology. It will take a lot more than new VP machines to repair the company’s evil reputation among players of the video sport. How about better paytables and faster point accruals?

Posted in Atlantic City, Boyd Gaming, Colony Capital, Cordish Co., Election, Harrah's, IGT, Massachusetts, Neil Bluhm, New Hampshire, Penn National, Regulation, Rhode Island, Technology, Tilman Fertitta | 1 Comment

Quote of the Day

“The gambling industry now finds itself at El Dorado’s doorstep. And the governor tells us not to worry. He is righteous, and the industry will be carefully regulated.” — the New York Times’ Michael Powell, weighing in with high, Victorian dudgeon against gaming expansion, citing Gov. Andrew Cuomo‘s deplorable oversight of the crony-ridden New York Racing Association.

Posted in Genting, Horseracing, New York, Racinos, Regulation | Comments Off on Quote of the Day

Penn, Boyd take the hot seat

Continuing its series of “fireside chats,” Deutsche Bank‘s Carlo Santarelli met with Penn National Gaming executives. They reported that high-end play was pretty much normal but that small-fry players (who represent a quarter of their penn-national-gamingdatabase) are wagering less these days. As for struggling Hollywood Columbus, Penn is taking the long view, saying it faced a similar situation in Kansas City and it could be look at a three-to-five-year ramp up of business. Internet cafe users in Ohio overlap about 10% of Penn’s player base and a ballot initiative to keep the cafes legal has a poor Continue reading

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Wall Street comes to the Strip, meets the big boys

Investment firms like J.P. Morgan and Deutsche Bank have been sending emissaries to Las Vegas this week, to meet with all the major gaming firms during Global Gaming Expo. Since the latter is being held at Sands Expo Center, perhaps we should start there.

Venetian Macao foyerDeutsche Bank had Las Vegas Sands COO Michael Leven and President of Global Gaming Operations Rob Goldstein over for a “fireside chat.” They waxed positive on Macao and revealed that their The Parisian megaresort will be priced lower than Venetian Macao (left), in a play for the mass-market punters. But, in Singapore (where Sheldon Adelson is itching for more hotel rooms), Sands thinks it can wring another $5 million/day out of Marina Bay Sands, particularly through “optimization” of its three hotel towers. “Some of the highest convention bookings in number” on the Las Vegas front are not translating into higher ADRs — unlike those at MGM Resorts International — and our economy appears precariously balanced upon Asian play, estimated to be one-third of the total. Speaking of which, Leven and Goldstein said they are more optimistic than ever before of the chances for casino legalization in Japan.

The aforementioned MGM sent CFO Dan D’Arrigo to sit aside Deutsche Bank’s embers and chat up Continue reading

Posted in Current, Economy, G2E, Isle of Capri, Japan, Macau, Marketing, Massachusetts, MGM Mirage, Missouri, Pennsylvania, Sheldon Adelson, Singapore, Steve Wynn, The Strip, Tourism, Wall Street | Comments Off on Wall Street comes to the Strip, meets the big boys

New look for IGT; Bally thinks small; Why see Britney?

web1_WEB-IGT-LOGOThere’s a new logo in town and it belongs to International Game Technology. That futuristic type you see is emblematic of the slot-machine company’s ongoing reinvention of itself into an online-gaming provider. The firm may be rolling out new machines this week themed around Avatar (available early next year), Bridesmaids and Jurassic Park, but CEO Patti Hart has made no secret of where she thinks the future of IGT lies. The company made sure to have its new logo prominently on display when Wall Street analysts were given advance tours of the IGT booth — always the focal point of Continue reading

Posted in Bally Technologies, Entertainment, IGT, Illinois, Internet gambling, Scientific Games, Shuffle Master, Slot routes, The Strip, Wall Street, WMS Industries | Comments Off on New look for IGT; Bally thinks small; Why see Britney?

N.Y. GOP boss ixnays casinos

Cox“This is not real economic development,” puts New York State Republican Party Chairman Ed Cox, declaring his opposition to the pro-casino question on the Nov. 5 ballot. He buttressed his anti-casino stance by declaring gambling to be “a bust” in Atlantic City (a bust, it should be noted, the generates several billions dollars a year). While this might seem like a worrisome turn of events, Cox has gone off the reservation. A number of solons in his party support the new casinos and some are giving him a hard time for coming out against them. A subtler, more complex problem for the referendum is a lawsuit that would upend Gov. Andrew Cuomo‘s accord with the Oneida Indian Nation. Simply put, the towns of Vernon and Verona object to the taking of 25,000 acres of land into trust. This would, they argue, devastate their revenue base. The suit would also overturn a Nov. 5 victory. It argues that by creating regulations prior to legalization, Cuomo has put the cart before the horse. This looks like a considerably more serious threat to casino expansion than does Cox’s dyspeptic rhetoric.

Cuomo has finally broken his silence on casino expansion — but only to the extent of saying “it’s a sophisticated argument” to get voters to vote “aye.” Dare we suggest that not-unintelligent Cuomo is the man to make that argument. “I’ll be working to pass the amendment,” he promises. But why is he not doing so already, especially since he thinks voters will have a “natural, knee-jerk” inclination to vote it down? Get out on the hustings, guv.

Case Bets: Would-be advantage players are finding that their world is shrinking, as more and more casinos share surveillance data … the eight-story Barbary Coast is fast growing into the 11-story Gansevoort Las Vegas. A look-see is vouchsafed Howard Stutz, who writes that Caesars Entertainment is literally building atop some astute forethought by Michael Gaughanit’s Decision Day for Leominster, where Cordish Gaming hopes to build Massachusetts‘ lone slot parlor … meanwhile, to the southeast, KG Urban Entertainment has filed suit to overturn the prefential status accorded the Mashpee Wampanoags, who haven’t bothered to acquire the underlying land for their casino project. Speaking of which, wouldn’t it be better if KG got on the stick with its own project?

Posted in Atlantic City, Cordish Co., Election, Harrah's, Massachusetts, New York, Politics, The Strip, Tribal | Comments Off on N.Y. GOP boss ixnays casinos

Quote of the Day

“With respect to domestic gaming markets, management’s comments were frank. [Pinnacle Entertainment] believes that domestic gaming markets have become saturated and are no longer a novelty for domestic consumers.” — Carlo Santarelli, reporting on an investor presentation by Pinnacle executives.

Posted in Economy, G2E, Pinnacle Entertainment, Wall Street | 1 Comment

All’s well at Pinnacle; Atlantic City’s PR jackpot

So reports J.P. Morgan analyst Joseph Greff, who met with Pinnacle Entertainment pinnacle_logo_lrbrass. The latter characterized their absorption of Ameristar Casinos as “on track.” Part of this is due to five “synergy buckets,” which represent everything from job cuts to more-centralized purchasing power (read: bigger discounts).  Adds Greff:
“Management’s strategy of taking “best practices” from each legacy organization had already begun to take hold, with an early example coming in the form of shifting to ASCA’s centralized accounting structure (which should result in cost savings). Lastly, management has been pleased with the condition of the ASCA properties, and has found no maintenance capex surprises.”

Near-term priorities mainly concern paying off the Continue reading

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Quote of the Day

Echelon_640“The fourth [Manila] project, Resorts World Bayshore, is backed by Genting, a gambling giant with global ambitions (it is also planning to buy an ailing casino in Vegas). — from The Economist. Planning? Genting’s closed the deal. And what’s this “ailing” jazz? When all you’ve acquired is a partial skeleton, the Echelon patient isn’t ailing, it’s dead.

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Another Borgata first; Ohio is “george”; Adelson’s waiting game

In what could be a harbinger of good things for Atlantic City, the final events of the World Poker Tour are being held at Borgata. It’s to promote the legalization of online poker in New Jersey, but anything that brings in flesh-and-blood gamblers is welcome at this point. Since nearly the whole Boardwalk is Internet-affiliated at this point, I expect similar promotional tournaments in the near future, even if none have been announced. As usual, it is Borgata that is at the front of the pack. A lot of people — myself included — were Continue reading

Posted in Atlantic City, Boyd Gaming, Environment, International, Internet gambling, Japan, Ohio, Problem gambling, Sheldon Adelson, Steve Wynn | 2 Comments

Slow going in Massachusetts

If you’ve been following developments in the Bay State, you’ll have noticed casino developers coming right down to the wire in negotiating host community agreements. That leaves them precious little time for Continue reading

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Quote of the Day

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.

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(Almost) Everybody wins in Louisiana

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

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

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

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

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Quote of the Day

“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.

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Setback for New Jersey; Doom for Mathis; Tribal magic

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

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Making the grade

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?

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?