Crazy from the heat

Posted on August 24, 2013 by David McKee


Nothing seems to bring the crazies out like living in Las Vegas, as these two domestic terrorists prove.

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Quote of the Day

Posted on August 24, 2013 by David McKee

“Hollywood has a way of glamorizing everything up to and including vampires. This is a movie that highlights a part of the Internet that has real downside unless governments act.” — MGM Resorts International spokesman Alan Feldman on the new Justin Timberlake vehicle Runner Runner, set in the demimonde of Internet gambling and not, alas, amongst vampires.

Posted in Internet gambling, MGM Mirage, Movies | Comments Off on Quote of the Day

Atlantic City: Half-full or half-empty?; Crosby tips his hand

Posted on August 23, 2013 by David McKee

It depends on which newspaper you read. The Press of Atlantic City took the half-full route, focusing on the profits made by eight of the city’s dozen casinos. The Associated Press pointed to the narrowing margin of aforesaid gross-operating profitability. No surprise, Borgata was the most profitable of the bunch and Revel Resort the least, the latter widening its 2Q13 losses from the year previous, which wasn’t so hot either. The Tropicana Atlantic City posted the most revenue growth (28%), besting Caesars Atlantic City by a hairsbreadth. Miraculously, both Trump Entertainment Resorts casinos finished in the black, although their profit margins cratered: -73% at Trump Taj Mahal and -98% at Trump Plaza.

Nobody’s losses were even remotely as great as Revel’s -($41 million in the quarter). The resort transferred the pain to its workforce, reneging on 401(k) contributions. Between this and the double talk of its “refunds” of player losses, Revel is the prohibitive frontrunner for Indian Giver of the Year. We understand that Revel is desperately trying to survive but revenue was up 33% last month and this hardly seems like the time to alienate one’s employees.

The sad side of Atlantic City. In a tragic Boardwalk saga, the New York Times has discovered a doleful aspect of Atlantic City‘s casino commuter subculture. Many are Asian immigrants who ride the buses to and from the shore. Some come for the free play but others go for dining coupons that they resell on the black market. Others simply stack some Zs at the slot machines. Still others just go back and forth for something to do. Nor is it only Atlantic City. Sands Bethlehem is a favored destination, daring the wrath of Sheldon Adelson, as are Connecticut‘s tribal casinos. In an inexpressibly sad statement, bus rider Chun-Hae Young said, “The casino is a kind of place that can bleed you dry of everything. It can also save your life when you have nothing.

Play nice, boys. In a possible hint of where he’s leaning, Massachusetts Gaming Commission Chairman Stephen Crosby asked Steve Wynn and Boston Mayor Thomas Menino whether we can’t all get along. From where I sit, Wynn Resorts has conducted itself with dignity while Menino has done everything possible to kneecap its Everett project. Said Crosby, “When you have two parties spatting in public, it makes everything look disorganized or suspect or political.” The man’s right.

[your name here] Don’t get used to that cheesy “Vegas High Roller” name. Penurious Caesars Entertainment is putting naming rights to its Ferris wheel on the block. Look on the bright side: They could always sell them to Joe Francis and call it the “Girls Gone Wild Whirl.” However, given the amount of money Caesars has extracted from the wallet of hapless high rollerTerrance K. Watanabe, “Watanabe’s Wheel” has a nice ring to it.

Unfortunate sentence of the week: “Crown’s Sydney casino project, at the Barangaroo development west of the city’s main business district, was last month moved to the third stage of a state government approval process, beating off competition from an Echo proposal to expand its Star site.” –Now, now, lads. I’m sure we can settle this without resorting to self-abuse.

Posted in Boyd Gaming, Donald Trump, Economy, Foxwoods, Harrah's, International, James Packer, Massachusetts, Mohegan Sun, Pennsylvania, Problem gambling, Regulation, Revel, Sheldon Adelson, Steve Wynn, The Strip | 1 Comment

Quote of the Day

Posted on August 23, 2013 by David McKee

“Bill Harrah absolutely wanted to have the best and nicest facilities. Harrah’s Lake Tahoe was a five-star hotel when I worked for them. The facilities had to be spotless, they had to be clean … and the service had to be impeccable.” — former Harrah’s Entertainment executive Pat Crofts, describing the 1976-1983 era at Harrah’s. It certainly doesn’t sound anything like the experience of staying at a Caesars Entertainment property in the Gary Loveman regime.

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Wackiest casino promotion ever

Posted on August 22, 2013 by David McKee

This Muscogee Creek Casino spot speaks for itself, although I have to say it’s a lot more fun than the casino commercials that are run in Las Vegas (“Table games! Rewards!” Zzzzzzzzz …)

Posted in Marketing, Oklahoma, Tribal, TV | Comments Off on Wackiest casino promotion ever

Troubling trend in Mississippi; Caesars pleads poverty

Posted on August 22, 2013 by David McKee

Evidence of casino saturation in the U.S. (and economic malaise) continues to mount. Following a 6% dropoff in Mississippi casino revenues for July, the Biloxi Sun-Herald‘s Mary Perez was moved to examine a larger trend. Here’s what she found in terms of July winnings at the Bayou State’s Gulf Coast casinos:

2008: $249 million

2009: $225 million

2010: $224 million

2011: $211 million

2012: $205 million

2013: $192 million

That’s a 22% fall if Continue reading →

Posted in Current, Economy, Harrah's, Louisiana, Mississippi, Reno | 1 Comment

Wynn hearts Atlantic City; A pointless election

Posted on August 22, 2013 by David McKee

Update: Penn National Gaming has been tipped as a potential buyer for disqualified Plainridge Racecourse. The city has already scheduled a Sept. 10 vote on a slot parlor, so Penn would have less than three weeks to negotiate the essential host-community agreement. As town administrator Joseph Fernandes says, “It has been a pretty intense roller coaster.”

Steve Wynn just can’t get over Atlantic City. He’s been in (Golden Nugget), out, in again (the abortive Le Jardin), out again and even made a courtesy call a few years ago, presumably sussing out properties in A.C. Now he wants a New Jersey online-gaming license, which necessitates one of two things. Either he partners with an existing casino or he buys one. The down-at-heels Atlantic Club (the former Golden Nugget) is on the market and who knows how Revel Resort would respond to a purchase offer … although it would seem a little rich for Wynn’s blood, especially when he’s committing close to a billion dollars to the Philadelphia market. No, more likely is that Wynn Interactive simply partners with one of the two, although Revel would be an affiliation more in keeping with the Wynn brand.

Cordish Cos. came a step closer to having a slot parlor in Leominster, Massachusetts. It was cleared for a special zoning permit, which paves the way for a Sept. 24 up-or-down vote on the casino. The $200 million project is banking on its distance from the state’s three other casino regions to put its proposal over the top with the Massachusetts Gaming Commission. The latter finds itself in a pickle regarding Tewskbury. Voters there rejected the zoning change requested by Penn National Gaming, 39% to 61% … but still may have to vote on the casino itself next Sept. 21.

Trouble is, nobody foresaw this scenario to the extent of writing into state law how a special election should be canceled. Penn, quickly striking its tent, supports scrapping the plebiscite and the MGC would like to do it, too. For now, it looks as though Tewksbury burghers will have to go through with an utterly meaningless vote. And if Penn turns its sites toward southeastern Massachusetts, it has until Sept. 30 to strike a host-community agreement, will be able to build a much bigger facility and faces no competition worth mentioning. It sure beats trying to hammer out a new slot-parlor HCA in a new town inside of week.

After dithering for years, the legislature in Florida finally got around to outlawing Internet cafe-casinos. Now, unfortunately, the gray market that sprung up prior to the state’s action may have precedents that open a loophole and further sap the viability of brick-and-mortar casinos in the Sunshine State.

Posted in Atlantic City, Colony Capital, Cordish Co., Current, Election, Florida, Internet gambling, Massachusetts, Penn National, Pennsylvania, Regulation, Revel, Steve Wynn | 2 Comments

Better late than never in A.C.

Posted on August 21, 2013 by David McKee

Under the leadership of the Atlantic City Alliance, the Boardwalk is finally getting its act together. (Makes you feel like a proud papa, doesn’t it?) Now through 2016, the ACA will offer $1 million in annual subsidies to conventions. The convos have to be first-timers in Atlantic City and must put at least 1,000 bodies in hotel beds. It’s a big step in the right direction for a city that used to prize gamblers over conventioneers. Considering the capacity of properties like Borgata and Revel Resort, it’s high time A.C. capitalized upon it. Kudos also to the Casino Reinvestment Development Agency for earmarking 300 thousand clams to support relocation of the Garden State Film Festival. Associated for a decade with Asbury Park, the fest found itself homeless. Enter the CRDA. It also extended a small subsidy to the Downbeach Film Festival. Feeling generous, the CRDA also allocated $130K to bring back the Atlantic City Ballet, which hasn’t been based in A.C. in 15 years. Good moves all around, guys. Bravo.

Who won and who lost in 2Q13? Rick Velotta has the answers in an excellent wrap-up. He covers every major player on the field and provides a handy layman’s guide of the importance of Macao to the health of Las Vegas. This is highly recommended reading. To the southeast, Florida punters are making Hiahleah Park Casino a speedy hit.

Posted in Atlantic City, Boyd Gaming, Current, Economy, Florida, Macau, Racinos, Revel, Tourism | 1 Comment

Another reason to hate Allegiant; Fertitta gets an “F”

Posted on August 21, 2013 by David McKee

That airline that charges you for checking bags, then floated the idea of charging you for not checking bags has found yet another way to screw its customers, as a planeload of them discovered last weekend in Las Vegas. Yes, it’s Allegiant, the carrier where the passenger is just a dollar sign.

Business has been booming at the Golden Nugget this week. During a brief visit, I saw heavy (in number, regardless of dollar amount) table game play, as the Nugget was awash in a sea of customers. Back when Landry’s Restaurants was a publicly traded company, Tilman Ferititta drew a disproportionate amount of his revenue from the Vegas and Laughlin Nuggets. Now that he’s in Atlantic City and Biloxi that can only be more so. His marketing secrets would be the envy of some of the long-suffering casinos on the Strip. The pool area, however, was a real scuzzbucket, one of the skankiest in town, Indeed, I have never seen so many tattoos in one place as at the Nugget. (Is it a prerequisite for admission?) And Continue reading →

Posted in Atlantic City, Downtown, Laughlin, Mississippi, Tilman Fertitta, Tourism, Transportation | 4 Comments

Penn loses yet again; Weirdest story of the year

Posted on August 21, 2013 by David McKee

In a stunning setback, voters in Tewksbury, Massachusetts, have decided they don’t want any part of a Penn National Gaming slot parlor. By a very wide margin, they nixed the project, thereby reducing the field of competitors to three: Raynham Park, Cordish Gaming and Rush Street Gaming. It’s not been a good year for Penn, if we go back to its electoral defeat in Maryland last November. It’s subsequently had its Sioux City license taken away (or not renewed, more precisely) and been passed over for the Springfield, Mass., casino contract that went to MGM Resorts International. Penn says it will abide by the will of the Tewksbury electorate, which is mighty big of them: It’s not like CEO Peter Carlino (left) has much choice in the matter. The people have spoken and Carlino lost. If he can find another host community by Sept. 1, Penn could still get into Massachusetts, but the prospect is looking bleak, unless … he makes a play for the southeastern region, where no operator of consequence has bid.

Can you believe that a construction executive based in Boston would be unaware his company did work for Foxwoods Resort Casino and Mohegan Sun. That’s the fish story an anti-casino Beantown mayoral candidate would have you swallow. Suffolk Downs workers accuse Peter Walczak of wanting to have it both ways and it doesn’t look like he’s got a leg to stand on, despite his protestations to the contrary.

Here’s a howdy-do, as they say in the collected works of Gilbert & Sullivan. A new, anti-gambling movie, Continue reading →

Posted in Animals, Current, Election, Foxwoods, Internet gambling, Massachusetts, MGM Mirage, Mohegan Sun, Movies, Penn National, Politics | 1 Comment

Case Bets: Walker’s wager; “e” on the QT; Blue no more

Posted on August 20, 2013 by David McKee

One of the nation’s largest tribal casinos, Potowatomi Bingo, in Milwaukee, has been caught by the economic malaise that is dogging so many of the nation’s casinos. Although Potowatomi defied the Great Recession, peaking in 2009 and rebounding after a 2010 dip, its FY13 revenues are down again. It also has to worry about prospective competition from Kenosha, Beloit and Lafayette County. The administration of Gov. Scott Walker (R, right) has an interesting — if disingenuous — policy toward tribal-casino expansion. Walker retains veto power over any off-reservation agreements with the Bureau of Indian Affairs. However, all 11 gaming-enabled tribes in Wisconsin also have to sign off on them. What, I ask you, is the likelihood that 11 tribes are going to say, “Sure, bring on some new competition, man”? Not bloody likely. That way, Walker keeps his hands clean and lets the tribes do the dirty work for him. It’s almost fiendishly clever.

Discourage alcohol sales in the vicinity of the Fremont Street Experience? If the FSE were denuded of drunkards, would Continue reading →

Posted in Boulder Strip, Cosmopolitan, Dining, Downtown, Economy, North Las Vegas, Politics, The Strip, Tribal | 2 Comments

Quote of the Day

Posted on August 20, 2013 by David McKee

“You still have a consumer that is very careful about their spending. Many markets are seeing a point of saturation. Some new casinos are not growing the market — they’re just cannibalizing the existing market.” — Fitch Ratings analyst Michael Paladino on flat-to-downward trends in the non-Vegas casino industry.

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Boston briefs: Caesars gets the vote out, etc.

Posted on August 19, 2013 by David McKee

In the face of iffy local support for its Suffolk Downs project, Caesars Entertainment has surrogates going door to door in East Boston, selling voters on the proposal’s virtues. Given the Latino majority among Easties, that’s where Caesars is targeting its efforts. Don’t sell Caesars’ chances short: A similar get-out-the-vote among company employees helped Sen. Harry Reid (D-NV) crush the casinophobic Sharron Angle back in 2010.


Tewksbury voters, meanwhile, are expressing a certain degree of surprise at the sudden manifestation of Continue reading →

Posted in Atlantic City, Donald Trump, Hard Rock International, Harrah's, Harry Reid, Massachusetts, Mohegan Sun, Penn National, Politics, Tourism, Transportation | 3 Comments

St. Louis: Pinnacle out, Icahn in; Cosmo’s death wish

Posted on August 19, 2013 by David McKee

After fielding several offers, Pinnacle Entertainment has liquidated Lumiere Place Casino and its affiliated Four Seasons hotel to … Carl Icahn. Uncle Carl spent $260 million to close the deal. Considering that the book value of Lumiere Place is $401.5 million, you could say he got a bargain. He certainly Pinnacle where he wanted it, since it was under Federal Trade Commission-imposed duress to sell the property and soon. Icahn called it a “judicious acquistion.” However, as Deutsche Bank analyst Carlo Santarelli writes, “we believe the actual multiple to the buyer is likely a tad higher than the implied 7.5x [cash flow].” Since the industry average for this sort of transaction is seven times EBITDA, did Icahn overpay for Lumiere — a disappointing performer already? How unlike him. As for his counterpart, Pinnacle Entertainment CEO Anthony Sanfilippo, given the assets he gains from Ameristar Casinos by forfeiting Lumiere Place, he’s achieving addition by subtraction on a significant scale.

Does the Cosmopolitan have a death wish? You’d think so, given that Continue reading →

Posted in Ameristar, Cantor Gaming, Carl Icahn, Cosmopolitan, Culinary Union, Missouri, Pinnacle Entertainment, Regulation, Sheldon Adelson, The Strip, Wall Street | 2 Comments

Quote of the Day

Posted on August 17, 2013 by David McKee

“The U.S. market is getting to the point where it’s robbing Peter to pay Paul. From the bank’s perspective, it’s ‘if you merge, then you’re just taking money from yourself.’” — the University of Nevada-Reno’s Institute for the Study of Gambling & Commercial Gaming‘s Mark Nichols on the prospects for future consolidation in the casino industry.

Posted in Economy, Wall Street | 2 Comments

Gather ye dividends while ye may

Posted on August 16, 2013 by David McKee

Bally Technologies almost hit the $1 billion mark in revenue ($997 million) during the last fiscal year, which earns it our congratulations. Good work, folks. “We made enormous progress in many different ways, including continued growth in wide-area progressive units, record gaming operations revenue, (and) significant success in new markets like Canada, Illinois, and South Africa,” CEO Ramesh Srinivasan told investors. The management-systems division was the main driver, increasing its revenue by 32%. Bally’s $0.95/share profit in 4Q13 was just slightly above Wall Street’s reputation. It comes at a good time, because Continue reading →

Posted in Bally Technologies, California, Illinois, International, Regulation, Shuffle Master, Tribal, Wall Street | Comments Off on Gather ye dividends while ye may

Rising son goes to Land of Rising Sun; The man who would be emperor

Posted on August 16, 2013 by David McKee

After a calamitous and incoherent venture into the U.S. gaming industry, James Packer has stuck pretty close to the markets he knows best: Australia and Macao. But he’s feeling his oats again, looking toward Manila, Sri Lanka (which I still think of as Ceylon) and the big sashimi, Japan. This puts Packer somewhat at cross-purposes with business partner Lawrence Ho, who is targeting the Japanese market via a project in Vladivostok. But there’s no substitute for going straight to the source. Packer says, “If Japan comes on it will be the second-biggest gaming market in the world. It has 100 million people who are all mad gamblers but they are all doing it through horse racing and pachinko.” Early estimates of the Japanese market forecast annual revenues of $10 billion. Packer’s got two Aussie casinos and a third (Studio City) in Macao underway, so Japan remains a long-term prospect for the time being.

Haven’t heard of casino mogul Enrique Razon? You will. He’s Continue reading →

Posted in Genting, International, James Packer, Lawrence Ho, Macau, Melco Crown Entertainment, Regulation, Stanley Ho | Comments Off on Rising son goes to Land of Rising Sun; The man who would be emperor

This land is their land; Tight money in Pennsylvania

Posted on August 16, 2013 by David McKee

Tribal casinos aren’t just for reservations anymore and it’s becoming a coast-to-coast phenomenon. California legislators already approved one off-reservation casino, to be managed by Station Casinos. The Enterprise Rancheria of the Estom Yumeka Maidu would like to be second. They appear to have a good location but face strong opposition. Local voters don’t support the project. Also, casino opponent Cheryl Schmit has a point when Continue reading →

Posted in California, Current, Economy, Foxwoods, Harrah's, history, Massachusetts, Mohegan Sun, Neil Bluhm, Ohio, Penn National, Pennsylvania, Politics, Regulation, Sheldon Adelson, Station Casinos, Tribal, Wall Street | 1 Comment

Quote of the Day

Posted on August 16, 2013 by David McKee

“It reminds me of the unicycle from The Prisoner.” — my wife, commenting on the progress of the Linq‘s Ferris wheel. Hmmmm. Does this mean that Linq is The Village and Gary Loveman is the new Number Two? I mean, he keeps asking for “information” … sort of like Total Rewards, y’know?

Posted in Harrah's, The Strip, TV | Comments Off on Quote of the Day

Coming soon to a Sioux City near you

Posted on August 15, 2013 by David McKee

Don’t scoff: This is serious excitement by Iowa standards, enough to justify relocating the Milwaukee Wiener Shop. Virtually the only unhappy camper is Penn National Gaming, which had its Sioux City license taken away. Contractor Conlon Construction must be no stranger to suffering, though. According to the Sioux City Journal, its previous credits include the “Diamond Job [sic] Casino.” That must be the casino where nobody wins, not even the house.

Posted in Architecture, Current, Hard Rock International, Iowa, Penn National | 1 Comment