Revel’s mixed reviews; All systems ‘go’ in Massachusetts

That controversial “You Can’t Lose” promotion being fielded by Revel Resort is a hit with players even as it’s been panned by pundits. “Whoa, Smarty Jones. Not so fast,” cracked one.) The complexity of the deal is even being credited with a $10 million bump in revenue at Borgata. Revel is being dinged for doling out the credits in 5% dosages, which have to be played every week or you can kiss your free play sayonara. Since you have to sign up for Continue reading

Posted in Atlantic City, Boyd Gaming, Cordish Co., Illinois, International, Marketing, Massachusetts, Mohegan Sun, Neil Bluhm, Penn National, Revel, Sheldon Adelson, Taxes | 2 Comments

Hope for Caesars; Dopes at Boyd

Perhaps the best thing yet to happen for Caesars Entertainment‘s Suffolk Downs project was a gift from the Massachusetts Gaming Commission. The latter’s chairman, Stephen Crosby, said that surrounding-community agreements would play an important role in choosing which operator gets the green light. Boston Mayor Thomas Menino has made it clear he would rather perform unnatural acts than allow Steve Wynn to build a casino in neighboring Everett. So if Menino (and his successor) can keep playing the How the Grinch Stole Everett, Caesars’ chances improve significantly. Mind you, Menino’s administration has hedged its bets by holding back-channel negotiations with Wynn’s peeps, though both sides appear far apart.

Closer to home, dramatic progress has been made on Caesars’ Linq Ferris wheel (aka, “The Vegas High Roller,” yuk yuk). Contrary to published reports — including my own — it is crystal clear that the wheel will permit riders a dramatic view of the Las Vegas Strip as they approach the apogee of their ride. You’ll still have to spend 15 minutes, with no bathroom break, looking at the backside of the Westin Casuarina and a bunch of nearby slums, but at least 15 minutes of your journey should afford some quality viewing. One hopes that Caesars will price the High Roller within the reach of casual tourists because it’s difficult to imagine it making its nut strictly on party rentals.

Caesars is also moving fast on Horseshoe Baltimore. Construction is reported to be ahead of schedule, although it’s still eight to 11 months shy of opening. Having $20 billion of debt nipping at your heels definitely provides motivation to get things done.

Despite not being zoned for gambling, Caesars’ Macao golf course is evidently drawing several bidders, with Pearl Dynasty Investments Ltd. emerging as the winner. It’s one of the few contexts in which selling the land at $2.5 million per acre (a 24% markdown) can be counted as a “win.” Union Gaming Research Macau analyst Grant Govertsen speculates that the government will want most of the land to be used for residential development, something that comes at a premium in the enclave. Whatever the case, it’s good riddance to a bad investment.

Steamy weather. A torrid July in the United Kingdom has meant limp business for the Rank Group‘s 55 casinos and also for Ladbrokes‘ gambling operations. This doesn’t bode well either for London Clubs International, the European millstone around Caesars’ neck. What? You mean you wouldn’t want to own a couple of casinos in Egypt right about now?

You can’t cure stupid. But perhaps Boyd Gaming employees at IP Biloxi could have tried a bit harder rather than serving drinks to a brain-damaged patron. If they didn’t get the hint the first time he fell out of his chair, maybe the second fall should have given them a clue before he drank himself to death. Luckily, a Mississippi court has tossed a $75 million lawsuit and absolved Boyd of liability.

Posted in Boyd Gaming, Current, Entertainment, Harrah's, International, Macau, Maryland, Mississippi, The Strip | Comments Off on Hope for Caesars; Dopes at Boyd

Quote of the Day

“The casinos in Ohio are in giving free play a serious test run.  In July, some of the casinos gave away as much as 30 percent of casino “win” in free play  … Those marketing wars are just beginning; over the next few years the competition between casinos in Connecticut, Delaware, Indiana, Maryland, Massachusetts, New Jersey, New York, Ohio, Pennsylvania and West Virginia is going to intensify.” — columnist Ken Adams. Ya think?

Posted in Marketing, Ohio | Comments Off on Quote of the Day

Pinnacle’s done deal; Collateral damage from Ho Tram

Federal Trade Commission approval removed the last obstacle to Pinnacle Entertainment‘s takeover of Ameristar Casinos. The acquisition closed straightaway. Pinnacle informed investors that it expects to have a Lumiere Place sale done by autumn, meeting the last of the FTC covenants on the deal. However, cagey buyers may want to hold back: If it can’t unload Lumiere Place, Pinnacle would have to put the considerably more lucrative Ameristar St. Charles out on the market. Deutsche Bank analyst Carlo Santarelli likes today’s news, particularly because — with Ameristar’s Lake Charles property already sold to Tilman Fertitta — Pinnacle can start deleveraging yesterday. He also thinks the company can realize greater savings in terms of savings than it is leading investors to expect. Between obtaining a plump, juicy conquest and acting with lightning swiftness to make it happen, Pinnacle’s Anthony Sanfilippo has made a strong case for being gaming’s CEO of the year.

Victory in Massachusetts. By a crushing, 86% majority, Raynham Park raceway won approval of its host-community agreement. More people voted for the casino than Continue reading

Posted in Ameristar, Current, Election, International, Louisiana, Marketing, Massachusetts, MGM Mirage, Missouri, Pinnacle Entertainment, Racinos, Regulation, Tilman Fertitta, Wall Street | 1 Comment

Massachusetts: Small problem for Wynn, big trouble for MGM, Plainridge

Boston still has 10 weeks to reach terms with Suffolk Downs on a billion-dollar racino. That may explain Caesars Entertainment‘s apparent lack of urgency in reaching a host-community agreement. Beantown Mayor Thomas Menino‘s administration seems to be expending considerably more energy trying to thread a loophole whereby it could kill Wynn Resorts‘ project in adjoining Everett. Since public support for Suffolk Downs has been considerably more lukewarm than that for Steve Wynn‘s sales pitch, it would be far easier for Menino to stop Wynn than to push the Suffolk Downs package on its own merits. The latter has until Halloween to cut a deal with Menino and is taking its own sweet time. Boston officialdom may be raising the pressure publicly but the longer Caesars runs out the clock, the more Boston has to take what it’s given.

Even if Suffolk Downs prevails at the ballot box — as it probably will — the Massachusetts Gaming Commission has the final say. So why not try to kneecap Wynn before he gets that far? If you think it’s ugly now, just wait until Menino tries to cock-block Wynn and the whole magilla winds up in court. Now that will be butt-ugly.

MGM Resorts International‘s proposal — out in West Springfieldcould get tripped up in an unexpected way: Its relationship with former director and convicted felon Terry Christenson. Just when MGM’s entry into Massachusetts and Maryland, and re-entry into Atlantic City, seemed all but certain it could be thwarted by ex parte communications between Christenson and the casino giant. The former’s conduit to MGM was the since-expunged Gary Jacobs. However, MGM had a habit of living dangerously during the late Terrence Lanni‘s tenure, a tendency that continues to haunt it to this day. This is likeliest to be an issue with Massachusetts regulators, who are more persnickety than their colleagues to the south. Even so, Free State rival Penn National Gaming must be gloating something fierce.

So desperateand I mean desperate — to bring a slot parlor to Plainridge Racecourse that they’re willing to sell it. Now, whether the Massachusetts Gaming Commission would be willing to waive the Oct. 4 deadline for background checks is a good question. What’s sauce for Plainridge, which flunked state scrutiny, ought to be sauce for every other slot parlor. To do otherwise would penalize companies like Rush Street Gaming and Cordish Gaming who have kept their noses clean. Had Plainridge not been blissfully ignorant of a skim by former boss Gary Piontkowski it wouldn’t be in such a pickle now.

Wynn is but one of several would-be casino barons who are showering favors upon the City of Brotherly Love. His company has been the benefactor of various local charities while Joseph “Tomato King” Procacci has been planting trees. That’s all well and good but Bart Blatstein may have the best ground game, showing the flag at 35 community meetings. Once again, opponents seem in disarray. Also, the city has had several years to get acclimated to casino/community partnerships and many people like the largesse that comes with them. This time, the role of Lady Bountiful is being played by Penn National, which is promising two-thirds of its cash flow to local schools. I don’t know if that’s a prudent or even a profitable way to run a casino but that’s Penn’s worry and not mine.

One of the knocks on the casino industry — and rightly so — is that it sucks in retail and restaurant spending that might otherwise be done in the immediate area. Kudos to the proponents of Market8, in Philly. It’s crafting a loyalty program wherein repeat customers “could cash in points at surrounding restaurants, retailers, entertainment venues, museums, tourist attractions and parking lots.” It’s worked for operator Mohegan Sun at Pocono Downs and it’s the kind of community outreach of which casinos could hardly do too much.

Meanwhile, in California

Posted in Atlantic City, California, Cordish Co., Current, Harrah's, Marketing, Maryland, Massachusetts, Neil Bluhm, Penn National, Pennsylvania, Politics, Racinos, Regulation, Steve Wynn, Tomato King Procacci, Tribal | Comments Off on Massachusetts: Small problem for Wynn, big trouble for MGM, Plainridge

Murren disses Adelson; Caesars bows out of Macao; Clerical choler

Maybe because he’s rich he thinks people care about what he has to say. It’s obvious we know Las Vegas better than he does.” With those wordsMGM Resorts International CEO Jim Murren laid a surprisingly blunt smackdown on Las Vegas Sands CEO Sheldon Adelson. The latter, in a recent hissy fit, had accused of MGM and Caesars Entertainment of buying “the [tourist] business by reducing the price” on their hotel rooms. Adelson, whose rhetoric often flirts with paranoia, might as well have dusted off an old line and groused that, “It’s a conspiracy to steal money from me!”

Suffice it to say that Murren has thousands upon thousands of rooms of his own to fill, and probably doesn’t lie awake nights worry about how to improve the ADRs charged by the Sultan of Sands. “We know the market here … We provide the most jobs, the most tax revenues and the most community support,” zinged Murren. If he didn’t come right out and call Adelson an out-of-touch old geezer, he came close enough. Coming off a surprisingly strong quarter, Murren has bragging rights, while Adelson is sulking about disappointing results in 2Q13, hence his titanic sulk.

Forget about Macao. That’s the implicit message from Caesars, which unloaded its overseas albatross, its $578 million golf course in Macao. In doing so, CEO Gary Loveman is taking a bath, since the resale price was $438 million. And, in a truly shocking move, he’s going to use the assets to retire debt. Caesars? Pay down debt? Unheard of! Normally you’d expect him to pledge the money against some harebrained scheme, like building a multi-billion-dollar racino in Florida. (Loveman probably should have lost his job for Continue reading

Posted in Current, Florida, Harrah's, James Packer, Lawrence Ho, Macau, Massachusetts, MGM Mirage, Problem gambling, Sheldon Adelson, Stanley Ho, Steve Wynn, The Strip, Wall Street | 3 Comments

Quote of the Day

“The level of detail here goes into such things as regulations on roulette balls.” — Massachusetts Gaming Commissioner James McHugh on policies being formulated in the Bay State.

Posted in Massachusetts, Regulation | Comments Off on Quote of the Day

Saturday night in Vegas

This weekend brought a quartet of UFOs to our fair city. Paging Area 51

Posted in Current | Comments Off on Saturday night in Vegas

Quote of the Day

“I think the Macau government has made it very clear that it will treat every junket application in a fair and equitable way. So if anybody gets a licence I don’t see any problem for any of the concessionaires to allow a junket operator which is approved by the Macau government to operate.” — Sociedade de Jogos de Macau CEO Ambrose So, talking completely around the question of what happens if Triad member and Stanley Ho pal Wan Kuok “Broken Tooth” Koi buys into a VIP-junket operation.

Posted in Macau, Regulation, Stanley Ho, The Mob | Comments Off on Quote of the Day

July in A.C.: Borgata, Revel triumphant; Cosmo: The right amount of ‘Why?’

Last month was good for Atlantic City in the sense that revenue was only 4% off last year’s pace. The upper-tier properties fared exceptionally, with Borgata ascending 19%, driven by a two-third increase in table win, and Revel, fueled by its “You Can’t Lose” promotion, up 33%. At $23 million, Revel was firmly in the middle of the pack, no longer helping to bring up the rear. It’s obviously not impinging on Revel’s business, but some of the middle-market properties were hurt, particularly Tropicana Atlantic City (-26%), Showboat (-19%), Bally’s Wild Wild West (-14%, right) and Harrah’s Marina (-11%). Resorts Atlantic City actually posted a 6% increase, besting all the other middle- and low-end casinos. And would the last person to leave Trump Plaza (-25%, $8 million) please turn off the lights?

Cosmo query: We’ve received a Question of the Day submission about the poor performance of the Cosmopolitan‘s casino floor, so I’m Continue reading

Posted in Atlantic City, Boyd Gaming, Cosmopolitan, Current, Donald Trump, Economy, Harrah's, Marketing, Mohegan Sun, Revel, The Strip, Tropicana Entertainment | 2 Comments

Mother’s Days

My mother, Rev. Linda Maloney (seen here with the best mascot in all of sports) is in town for the next 36 hours, so I’ll be powering down S&G for a day or so. Never having seen Hoover Dam up close, that will be high on our agenda, along with Stones in his Pockets at McMullan’s Irish Pub. In the meantime, as they say in The Hunger Games (wretched movie — good book, I’m told), may the odds be ever in your favor — especially in 6/5 blackjack.

Posted in Current, Entertainment, Tourism | Comments Off on Mother’s Days

MGM’s half-full glass

Today it was MGM Resorts International‘s turn to do the “We didn’t lose as much money as last year” thing. The size of the decrease, at least, was impressive and MGM China produced its best numbers ever. The company’s performance inspired Deutsche Bank analyst Carlo Santarelli to quote John Malkovich in Rounders: “He beat me, fair and square. Pay that man his money.” MGM beat Wall Street‘s metrics in every important category, except for performance in Detroit, Tunica and Biloxi. On the Las Vegas Strip, 2Q13 gambling revenues were up 7% and room monies increased 5%. And Jim Murren will be a very old man when CityCenter (3% ROI) finally pays off.

Overall, we think these results are better than Continue reading

Posted in CityCenter, Current, Detroit, Economy, Harrah's, Macau, Mississippi, The Strip, Wall Street | 1 Comment

Quote of the Day

“It’s not a bar. It’s a gaming facility.” — James Hockenyos, on why his proposed, four-drink-maximum bar with a slot route in Auburn, Illinois, would not really be a bar. Well, I’m certainly glad we’ve got that cleared up.

Posted in Current, Illinois, Slot routes | Comments Off on Quote of the Day

When you’ve sunk this low …; Mazer returns

When skepticism turns to outright ridicule, the writing is often on the wall for such a folie de grandeur as Howard Bulloch‘s SkyVue wheel … or rather the two, totemic poles that are we are ever likely to see of the project. The Vital Vegas blog, in a canny satire, has filmed a phony promotional spot that stars SkyVue mascot Tiny the Tumbleweed. (Tiny is, of course, as credible as all of SkyVue’s projected timelines.) Of the many good lines, one of my favorites is: Continue reading

Posted in Atlantic City, Current, Downtown, Economy, Harrah's, The Strip | Comments Off on When you’ve sunk this low …; Mazer returns

Massachusetts: First one bites the dust

Turns out the Massachusetts Gaming Commission was damn serious about financial probity being grounds for disqualification. In a ruling on Plainridge Racecourse, it deemed that owner Ourway Realty displayed “a culture of fear and concealment pervasive in the operations,” including former CEO Gary Piontkowski‘s habit of siphoning money from the count room. (Can’t we just call it a “skim”?) The Commission went on to say that Plainridge could not provide “clear and convincing evidence as to business practices that will likely lead to a successful gaming operation.” Plainridge was also faulted for its tardiness in ousting Piontkowski, then replacing him with someone inexperienced in gaming.

On the flip side, Raynham Park got a passing grade from commissioners. That leaves only Continue reading

Posted in Architecture, Colorado, Cordish Co., Current, Environment, M Resort, Massachusetts, Neil Bluhm, Penn National, Phil Ruffin, Regulation | 2 Comments

Tilman’s Golden touch; Dotty’s gets respectable

Tilman Fertitta forked over $45 million to purchase Isle of Capri Biloxi. He is currently putting another $100 million into expansions and upgrades. From the look of things, he shouldn’t have any trouble making his money back. (Interestingly, parts of the casino floor resemble Planet Hollywood.) Like Las Vegas, casinos in Mississippi are experiencing the dismal epiphany that “Gaming isn’t unique anymore — it’s everywhere.” Tack on the triple whammy of Hurricane Katrina, the Great Recession and Deepwater Horizon, and life’s not been too good for the Gulf Coast, which has fallen to eighth place in American gambling markets — quite a comedown.

It’s unlikely that legislators will embrace Internet gaming but at least the Bayou State has rescinded its Dark Ages mentality that Continue reading

Posted in Architecture, Boulder Strip, Current, Downtown, Economy, Environment, Internet gambling, Isle of Capri, Laughlin, Mississippi, Planet Hollywood, Riviera, Tilman Fertitta | 3 Comments

Quote of the Day

I’ve been listening to National Public Radio since 1975 but this Family Guy parody made me laugh until it hurt — then laugh some more. Enjoy.

Posted in TV | Comments Off on Quote of the Day

Cosmo plunges again; Nevada signals surrender

Would somebody please sack the so-called casino management and marketing staff at The Cosmopolitan of Las Vegas. Everything at the Cosmo is improving except the gambling floor, which took a 20% nosedive in 2Q13, to $31 million. Losses were 25% worse than last year, despite a $5.5 million growth in net revenues. As though to confirm that the Cosmo doesn’t have its eye on the (roulette) ball, it released the following, mind-boggling blather: ““We are encouraged by the increases we continue to experience in key areas of our business and pleased that the brand continues to resonate with Las Vegas visitors and locals …” (emphasis added). Both room revenues (up 12%) and F&B continue to Continue reading

Posted in Atlantic City, Colony Capital, Cosmopolitan, Current, Dining, Internet gambling, Macau, MGM Mirage, Regulation, Sheldon Adelson, Singapore, Stanley Ho, Steve Wynn, The Mob, The Strip | 5 Comments

Quote of the Day

China: A backward country with no minimum wage, safety and environmental regulations, civil rights, or workers’ rights … which the United States should start imitating as soon as possible. Not really Communist any more (see Business Friendly).” — very true and very obviously not written by Steve Wynn or Sheldon Adelson.

Posted in Macau, Sheldon Adelson, Steve Wynn | Comments Off on Quote of the Day

What’s new in Sparks?; Tomato King strikes again; Bluhm’s bad luck

Arising from the grave of the Silver Club, the brand-new Bourbon Square Casino was finished just in the nick of time for yesterday’s opening. Owner Nevada Casino Holdings has done well, delivering a “new” casino for just $5 million. It helps that the property’s minimal number of hotel rooms (204) are still dark. If and when they do reopen, it may be as apartments, not overnight lodgings.

Joseph “Tomato King” Procacci is back in the news again, thanks to the Philadelphia Public Record. It thundered, Continue reading

Posted in Boulder Strip, Columbia Sussex, Current, Don Barden, Laughlin, Massachusetts, Neil Bluhm, Penn National, Pennsylvania, Reno, Station Casinos, Steve Wynn, Tomato King Procacci | Comments Off on What’s new in Sparks?; Tomato King strikes again; Bluhm’s bad luck