Hail, Caesars; Some roads lead to Foxwoods; Bluhm disappoints

Posted on July 18, 2013 by David McKee

It’s not every day that Caesars Entertainment CEO Gary Loveman has a good idea. But when he does, it’s a real brainwave. Such has proven to be the case with Caesars’ purchase of social-gaming Web firm Playtika. The latter has blown past wildly overhyped Zynga to become the leader in its field. Seems that Farmville and Mafia Wars were no match for Slotomania or Bingo Blitz. The market could hit $2 billion this year. That’s peanuts compared to tribal gaming alone, but the growth arc is amazingly steep. Caesars gambled on Playtika when it was still a risky venture, then doubled down by purchasing a content provider, Buffalo Studios. This makes up somewhat for the company’s inability to Continue reading →

Posted in Hard Rock International, Harrah's, IGT, Illinois, Internet gambling, Macau, Maryland, Massachusetts, MGM Mirage, Neil Bluhm, Pansy Ho, Penn National, Pennsylvania, Politics, Regulation, Stanley Ho, Station Casinos, Taxes, The Mob, Transportation, Tribal | Comments Off on Hail, Caesars; Some roads lead to Foxwoods; Bluhm disappoints

Quote of the Day

Posted on July 18, 2013 by David McKee

“[Internet-gaming analysts] believe that federal politicians are happy to play the pro-gambling crowd off of the anti-gambling crowd (and vice versa) in order to reap the reward of federal lobbying money. It’s something of a sport in Washington, and veterans of Congress are quite adept at it.” — Churchill Downs‘ Bluff newsletter, on the “false hope” being dangled before gullible gaming companies by Rep. Joe Barton (R-TX).

Posted in Current, Horseracing, Internet gambling, Politics | 2 Comments

What’s next, Gavin Isaacs?; Pinnacle’s big borrow

Posted on July 18, 2013 by David McKee

This week’s announcement of a $1.4 billion takeover of Shufflemaster, er, SHFL Entertainment is another reminder of the casino industry’s monkey-see/monkey-do tendencies. Scientific Games gobbled up WMS Industries, so Bally had to do something, right? At least this buyout was somewhat better received on Wall Street. The resulting greater diversity of products and global presence (particularly in Australia and Asia) was a positive for J.P. Morgan analyst Joseph Greff. It also considerably strengthens Bally’s position vis-a-vis offering table games and ancillary products. “Social issues (like SHFL’s CEO staying beyond closing) are unclear,” he added. Former Bally COO Gavin Isaacs, now the CEO of SHFL, could return to Bally as an underling. Awwwwkward.

But Wall Street‘s reaction was generally favorable. At a purchase price that was 24% above the previous close, it remains to be seen if Continue reading →

Posted in Oklahoma, Texas, Tribal | 4 Comments

Springfield: MGM wins again; Barton: Congressman or con artist?

Posted on July 17, 2013 by David McKee

As predicted, voter turnout was low but a victory is a victory, and MGM Resorts International went home a winner yesterday. Springfield voters ratified an agreement between MGM and the city, 58% to 42%. Scarcely had the last vote been counted when “MGM executives were already on the phones with Mayors, Town Managers and heads of regional organizations in the surrounding communities,” according to a company press release. Both Hard Rock International and Mohegan Sun could find themselves outgunned now that MGM is going region-wide: The lion spent $1 million on Springfield alone, so you can imagine what kind of cash it could deploy against West Springfield and Palmer referendums. (It’s not shaping up to be a good week for Massachusetts aspirants Foxwoods Resort Casino and Mohegan Sun: The former lost a big tax case and both casinos saw lower slot win — down 12% and Foxwoods and 8% at Mohegan Sun — although F-Woods CEO Scott “Woody” Butera (right) was ready with Continue reading →

Posted in Atlantic City, Current, Donald Trump, Economy, Environment, Harrah's, Harry Reid, International, Internet gambling, Massachusetts, MGM Mirage, Politics, Racinos, Regulation, Revel, Sheldon Adelson, Steve Wynn, Taxes, Tribal | 1 Comment

Caesars: You only buy twice; To Russia with Ho; Land in (dis)trust

Posted on July 12, 2013 by David McKee

Do you already own stock in Caesars Entertainment? Congratulations. Thanks to the Nevada Gaming Control Board, you will have an opportunity to pay a second time for some of Caesars’ assets. Although it hopes to raise $1.2 billion from the public offering, Caesars has pledged so much dough against casino projects in Cleveland and Baltimore, and possible ones in Ontario and Florida, that the money’s as good as spent already. The spinoff will leave the parent company only $19.6 billion in debt, $500 million having been dumped off onto Caesars Growth Partners. As described earlier in these pages, the latter will own a grab-bag consisting of Caesars Interactive, Horseshoe Baltimore and Planet Hollywood. Growth Partners will skim, er, collect management fees from the two casinos. (Getting paid by assets that you own … that’s a mighty neat trick.)

Caesars stock jumped like a kangaroo on the news. But Motley Fool analystTravis Hoium panned this “dilutive offering.” The Street‘s Robert Weinstein also took a wait-and-see attitude, describing Caesars’ balance sheet as emulating “the joy of a seven rolled after establishing your number … Why raise capital to expand into new areas if you can’t produce a profit in your core market?” Today, Hoium came back for a second whack, describing CEO Gary Loveman‘s ploy as a “sucker’s bet … a sweetheart for private equity and a stinker for investors.” If John Q. Stockholder doesn’t buy into Growth Partners, he’s ceding Continue reading →

Posted in Current, Florida, Harrah's, International, Internet gambling, Lawrence Ho, Macau, Maryland, Ohio, Planet Hollywood, Regulation, Tribal, Wall Street | 2 Comments

Barton delivers; Penn takes the initiative

Posted on July 12, 2013 by David McKee

It was a somewhat mixed victory for the casino industry. Rep. Joe Barton (R-TX, left) revived a 2012 initiative, in the form of his Internet Poker Freedom Act, legislation that he’s been promising for a couple of election cycles now. However, contrary to the hopes of Gary Loveman and like-minded members of Big Gaming, Barton doesn’t seek to legalize Internet at the federal level, although there would be a federal set of regulations which individual states could opt into or out. His bill, much narrower in scope than rival legislation by Rep. Peter King (R- N.Y.), would free up individual states to legalize Internet poker without fear of federal interference. Ergo, it’s still a state-by-state issue. However, that very narrowness ought to give King’s bill a better chance at passage. The American Gaming Association kicked off its post-Fahrenkopf era by saying it was “pleased” by the news, but remained exquisitely noncommittal — poker-faced, you might say.

Everybody wins. A federal appellate court in the District of Columbia has tossed out an inane IRS policy whereby Continue reading →

Posted in Architecture, Current, Internet gambling, Isle of Capri, Louisiana, Maryland, Massachusetts, Penn National, Pennsylvania, Politics, Regulation, Station Casinos, Steve Wynn, Taxes, The Strip | 1 Comment

Massachusetts: Bluhm, Penn pounce; Galaxy gets bounced

Posted on July 12, 2013 by David McKee

From the You Read It Here First file, yes, it’s indeed true that Neil Bluhm‘s Rush Street Gaming is descending upon the town of Millbury as its next prospective site for a slot parlor. Bluhm surrogate Greg Carlin says the company is “bullish” on Millbury … just as it was bullish on Worcester a few weeks ago. The operative question is whether Millbury is bullish on Bluhm. The project will be budgeted at an ROI-friendly $200 million. Both Rush Street and Cordish Gaming have received clean bills of health from the Massachusetts Gaming Commission. What would have been surprising is if Penn National Gaming had simply walked away from the Bay State. Not to worry: Penn’s getting into the slot-parlor derby, in Tewksbury, right on New Hampshire‘s threshold, between Lowell and Lawrence. It’s also budgeting $200 million for its slot house. Time is of the essence for all three companies, which have less than Continue reading →

Posted in California, Cordish Co., Current, Harrah's, Massachusetts, Neil Bluhm, New Hampshire, Penn National, Racinos, Regulation, Technology, The Strip, Tribal | 1 Comment

Quote of the Day

Posted on July 12, 2013 by David McKee

“You walk out, slightly numbed by the experience, slightly unfulfilled, longing for a shark, or the simple humanity of a punch to the face.” — Stephen Marche, on the stultifying phenomenon known as the “moviecoaster.”

Posted in Current, Movies | 1 Comment

Missouri misery; Revel inches upward

Posted on July 10, 2013 by David McKee

Sometimes I feel Gary Loveman‘s pain — and that of Anthony Sanfilippo, Virginia McDowell, Peter Carlino … When they look at the kind of numbers states like Missouri are generating, they must want to shake a fist and say, “Gamble, damn you!” At least five years into the Great Recession, Wall Street tells itself comforting bedtime stories of “pent-up demand” while consumers clutch their pocketbooks as tightly as ever, at least when it comes to gambling. On a same-store basis, The State of Misery was well-named last month, down 10%. It’s no wonder that Pinnacle Entertainment‘s Sanfilippo (right) was so quick to put Lumiere Place on the block to placate the Federal Trade Commission: Who wouldn’t trade a casino that grossed $12.5 million (-13%) last month to get one (Ameristar St. Charles, pictured above, down 5% in June) that grossed $22 million instead? Throw in Ameristar Kansas City and its $17 million (-10%) and Pinnacle stands to gain far more than it loses.

It was a terrible month, though, for Penn National Gaming. Not only Continue reading →

Posted in Ameristar, Atlantic City, Boyd Gaming, Colony Capital, Current, Donald Trump, Economy, Harrah's, Illinois, Isle of Capri, MGM Mirage, Missouri, Ohio, Penn National, Pinnacle Entertainment, Revel, Steve Wynn, Wall Street | 3 Comments

“Peepshow” finally poops out

Posted on July 10, 2013 by David McKee

If you still haven’t seen whatever’s left of Planet Hollywood‘s oft-downsized Peepshow, you’d better hurry: The show is closing September 1. Frankly, I’m impressed that it lasted as long as it did — an impressive four years –considering that customers got less and less show for their money (fewer headliners, fewer performers, etc.), as the show was stripped of parts to save money. The final straw was the inability to recruit anyone to fill Coco Austin‘s cup size as the #1 Peep Ho. When you can’t replace aD-lister like Austin, it really is time to pack it in, leaving Caesars Entertainment with yet another chasm to fill in the yawning void that is the Planet Ho showroom, where things like Surf the Musical go to die. I saw it twice — once with Mel B. and Kelly Monaco, once with Holly Madison — and that was once too often.

What happens in Phoenix … a restaurant in Arizona is using Al Pacino‘s name and image. Is the portrayer of Continue reading →

Posted in Arizona, Current, Dining, Entertainment, Harrah's, Movies, Planet Hollywood | Comments Off on “Peepshow” finally poops out

A note of thanks; Going … going … Gore

Posted on July 10, 2013 by David McKee

As many of you know, Mount Charleston, on the distant outskirts of Las Vegas, is being consumed by a huge forest fire. Not only has the blaze threatened Siegel Group‘s Mount Charleston Lodge, it’s also displaced some of the many people who live on the mountain’s slopes. So it’s with gratitude that S&G notes that Cannery Casino Resorts is making hotel rooms available, free of charge, to refugees from the conflagration. Cannery co-owners William Paulos and William Wortman are to be praised for their public spirit. Well done, gentlemen, and thank you.

Here today, Gore tomorrow. Reports of anemic business at Eli Roth’s Goretorium were Continue reading →

Posted in Cannery Casino Resorts, Current, Entertainment, Environment, Louisiana, Pinnacle Entertainment, Taxes, The Strip | 1 Comment

Quote of the Day

Posted on July 10, 2013 by David McKee

“Santa and the Easter bunny are simply the devil in disguise and cable television and the Internet are his playground. The Boy Scouts are his evil minions.” — Kentucky humorist Angela Thomas, in a controversial column that has the Southern Baptist Convention in a hot conniption fit. One can only imagine the antipathy of the Convention toward horseracing, let alone casinos, if it’s sticking its pitchfork into the hapless Easter Bunny. As for the Internet, maybe the Southern Baptists should hook up with noted “social liberal [sic] Sheldon Adelson,” don’t you think?

Posted in Cretins, Current, Internet gambling, Kentucky, Sheldon Adelson | Comments Off on Quote of the Day

Massachusetts: It’s where the action might be; Where there’s smoke, there’s Sheldon

Posted on July 9, 2013 by David McKee

Update/Correction: I’m reliably informed that dog racing (see below) is illegal in Massachusetts and will remain so, praise be. Also, Neil Bluhm is now wooing Millbury for a slot-parlor site. Except for Raynham Park, all slot-parlor applicants are under the gun. If they don’t negotiate ‘host community’ agreements by early August, they’ll miss the Oct. 4 cutoff date for submitting voter-approved agreements. Confusing much?

Somebody thought better of literally floating a trial balloon to demonstrate the height of Mohegan Sun‘s projected hotel tower in Palmer. The Mohegans balked at the $20,000 cost of clearing a path through the woods and then cutting down trees to create a launch pad. I’m not making any of this up, by the way. As the Springfield Republican reports, Linda Leduc, Palmer’s town planner, thought that ‘conducting such a test without a site plan indicating building location, landscaping, lighting and other details “is very misleading.“‘ I mean, could anybody back in Vegas have imagined the incredible hulk that is Fontainebleau if its builders had simply hung a weather balloon at a height approximating the top of the building?

Would-be slot-parlor owners and their potential host cities have been showing a distinct lack of urgency about cutting deals, even though Continue reading →

Posted in Animals, Architecture, Colony Capital, Cordish Co., Current, Economy, Environment, history, International, Isle of Capri, Louisiana, Massachusetts, MGM Mirage, Mississippi, Neil Bluhm, Oklahoma, Politics, Racinos, Regulation, Sheldon Adelson, Tribal | 1 Comment

Indiana: Half-full or half-empty?; ‘Priscilla’ faints

Posted on July 9, 2013 by David McKee

That’s the operative question after a contrariwise June in Indiana. The state’s casinos saw 17% less foot traffic, but those fewer players were spending more (up 6%). Even so, the Hoosier State’s racinos, casinos and riverboats were down 12% for the month, worse than Wall Street expected. Most of that big slurping sound came from the south end of the state, where Horseshoe Cincinnati cleaned out its Indiana competitors well and good.

Even Horseshoe Southern Indiana (left) felt the effect of competition from its Cincy sister, off 10% from last year. But the big hurt was put on Penn National Gaming‘s Hollywood Lawrenceburg, down 35%, Pinnacle Entertainment‘s Belterra (-35%) and privately owned Grand Victoria (-21%). Perhaps some of this business will trickle back once the curiosity-seekers have had their fill of Cincinnati. More likely, though, Continue reading →

Posted in Architecture, Cordish Co., Current, Dining, Economy, Entertainment, Harrah's, MGM Mirage, Penn National, Pinnacle Entertainment, Racinos, Sheldon Adelson, The Strip, Wall Street | 2 Comments

Quote of the Day

Posted on July 8, 2013 by David McKee

“In March, 26 year-old Xiao Ye Bai began serving a life term for stabbing a man to death in a crowded karaoke bar near the Strip. Prosecutors said Bai was a martial-arts trained enforcer for the Taiwan-based triad United Bamboo, sent to collect a $10,000 gambling debt.” — as Las Vegas casinos vie to import high rollers from the Pacific Rim, some of Macao‘s darker elements are establishing a foothold on the Strip, too — one of several revelations in a far-reaching, new Associated Press/Huffington Post story.

Posted in Current, Macau, The Mob, The Strip | Comments Off on Quote of the Day

Gold strike in Maryland; Ghost train; ‘Sell’ order on Sands; Wynn cleared

Posted on July 8, 2013 by David McKee

That elastic band which is American consumers’ gambling budget may have tightened in Illinois and gone slack in Ohio, but it’s expanding nicely in Maryland, now that table games are part of the mix. Sayeth the Maryland Lottery, revenues for fiscal year 2013 were 14% above expectations. It’s also a 57% year/year increase … although the latter figure also includes new gambling product that wasn’t available a year ago (i.e., Rocky Gap Casino Resort).

One must also note that Cordish Gaming‘s Maryland Live is carrying the industry, representing 77% of last month’s take. But Rocky Gap is getting the best bang for the buck on table games: It may have grossed but $4.7 million last month, but it was almost evenly divided between slots and (lower-taxed) taxed tables. Cordish didn’t fare so badly, drawing 30% of its revenue from tables. Penn National Gaming‘s Hollywood Perryville managed to make the least of its new tables, which generated Continue reading →

Posted in California, Cordish Co., Current, Economy, Macau, Maryland, Massachusetts, North Las Vegas, Penn National, Pennsylvania, Sheldon Adelson, Steve Wynn, Tourism, Transportation, Wall Street | Comments Off on Gold strike in Maryland; Ghost train; ‘Sell’ order on Sands; Wynn cleared

This is your brain on B.S.

Posted on July 8, 2013 by David McKee

Sheldon Adelson would have you believe that $100 million-$200 million in potential Las Vegas Sands revenue means nothing to him. And if you believe that, boy, do I have a bridge in Brooklyn to sell you. (He’s probably more apt to run you over in his motorized scooter if you drop a nickel on the carpet.) Fortunately, Continue reading →

Posted in Internet gambling, Macau, Sheldon Adelson, Singapore | Comments Off on This is your brain on B.S.

Revel gets forgiveness; Illinois gets hammered

Posted on July 8, 2013 by David McKee

You’ve heard about the “Gamblers Wanted” marketing campaign at Revel that refunds slot refunds over $100 — if you’re a member of the players’ club. There’s another catch: You don’t get a cash refund but additional free play, doled forth in small, weekly installments. I have to say that Randall Fine is fiendishly clever to have dreamt this up. Best of all, it actually seems to be achieving its objective of bringing the bread-and-butter gamblers to Revel.

In the meantime, CEO Jeffrey Hartmann utters one of the greatest understatements of the 21st century, when he says of Continue reading →

Posted in Atlantic City, Current, Donald Trump, Economy, Harrah's, Illinois, Marketing, MGM Mirage, Missouri, Neil Bluhm, Ohio, Penn National, Politics, Revel, Slot routes | 1 Comment

Accord in Kentucky; Atlantic City on the move; James Packer’s comeback

Posted on July 5, 2013 by David McKee

But there are still some stirrings of activity on the casino front. For starters, Bwin.Party has agreed to fork over $15 million to Kentucky. According to the company the payment “resolves the only remaining litigation … that stems from our pre-UIGEA U.S. activities.” Although he’s been a failure at bringing terrestrial casinos to Kentucky, Gov. Steve Beshear (D, right) has a good track record of extracting settlements from Internet casinos. More significantly, this settlement is expected to clear the path for Bwin.Party to start offering online gambling in Nevada and New Jersey. That’s pretty significant since its partners are a couple of little outfits called MGM Resorts International and Boyd Gaming. You may have heard of them. Earlier this week, PokerStars ditched the Atlantic Club in favor of Resorts Atlantic City, although it might continue its quixotic quest to wrest the Atlantic Club from Colony Capital, no matter how badly Colony suddenly doesn’t want to sell.

Nevada has “Trailer Stations” but now Atlantic City has a “pop-up” casino. Coming soon to a city near you (if you live on the East Coast), it’s a 40′ by 14′ by 10′, 6.5-ton, two-story, mock casino where you can play simulated table games, get a brief massage, spin platters and see Continue reading →

Posted in Atlantic City, Boyd Gaming, California, Cirque du Soleil, Colony Capital, Current, Entertainment, International, Internet gambling, James Packer, Kentucky, MGM Mirage, Regulation, Station Casinos, Taxes, The Strip, Tribal | Comments Off on Accord in Kentucky; Atlantic City on the move; James Packer’s comeback

It’s douchebag season in Vegas

Posted on July 3, 2013 by David McKee

Siegel Group‘s off-street boutique hotel Rumor wants you to know that if you want to hang out with classy people … go someplace else. Doesn’t this make you glad you’re too old for this kind of shit anymore? Yes, DWMs (douchebags with money) are a vital component of the Las Vegas economy, but the year-round/all-day frat-house party atmosphere gets a bit wearisome at times.

Posted in Current, Tourism | 1 Comment