Where’s Sheldo?; Stiffed by Aliante?

Posted on November 6, 2012 by David McKee

That’s the question posed today by Esquire‘s Jason Whited, who tries to find the Blofeld-like mastermind. “Anyplace other than Las Vegas,” seems to be the answer. “Political types here and across the country speak of him in almost hushed tones,” writes Whited, “trading rumors and tidbits of his last known whereabouts.” None of the Venelazzo employees he interviews can recall actually seeing Sheldon Adelson on property in recent memory. (By contrast, Steve Wynn is a frequent, almost commonplace sight at Wynncore.) “It’s like he’s a ghost,” says one. But Adelson and his wife just put in a $85 million offer on the White House, and will be back tonight in Sheldon’s early stomping grounds, Boston, to see whether or not the presidency is about to become a wholly owned subsidiary of Las Vegas Sands. Would the race be this close had not Adelson Continue reading →

Posted in Current, Election, Marketing, North Las Vegas, Sheldon Adelson, Station Casinos, Steve Wynn | 6 Comments

Betting on our future; Wretched excess in Maryland; Penn perseveres

Posted on November 6, 2012 by David McKee

While the voters have not yet spoken (although they’re getting an early start here), the betting markets are feeling less restraint. While the amount wagered online on the results of today’s presidential election — $16 million, according to one source — may seem frivolous, if not excessive, it’s a droplet compared to the obscene amounts spent by the candidates and their PACs, those truth-averse pustules accountable to no one. (Disclaimer: I voted for neither of the two Major Leading Brand candidates.)

If Mitt Romney is president-elect tomorrow, punters who wagered with Betfair will be out $25 million, as 78% of the action has been laid in favor of Barack Obama. The incumbent also enjoys favorable odds (a 71.5% chance of victory) at Intrade. However, online bookie Paddy Power could be very red in the face — and in the ledger if Romney bucks the odds and wins. Paddy Power is so confident (overconfident?) in its numbers it has already paid out $650,000 in pro-Obama wagers. Compound that with the $4 payout for every $1 wagered on a Romney victory and Paddy Power could get clocked something fierce. William Hill has been taking five-figure wagers both on the President and his Republican challenger, although the odds again heavily favor the current occupant of 1600 Pennsylvania Ave. Hill’s odds are, however, more inclined (5-2) toward a Romney popular-vote victory.

Alas, if any of you were hoping for a Continue reading →

Posted in Architecture, Cordish Co., Current, Election, Harrah's, Illinois, International, Internet gambling, Iowa, Marketing, Maryland, MGM Mirage, Missouri, Penn National, Politics, Tribal | Comments Off on Betting on our future; Wretched excess in Maryland; Penn perseveres

Quote of the Day

Posted on November 6, 2012 by David McKee

“America might be better off it it dropped bombshells on Gloria Allred and Donald Trump, rather than the other way around.” — Charles C. W. Cooke, on the mercifully almost-over election cycle.

Posted in Dennis Gomes, Donald Trump, Election | 1 Comment

Election Special: Maryland, down to the wire

Posted on November 5, 2012 by David McKee

And now the biggie: Question 7. The quickest way to summarize this is to paraphrase what C.S. Lewis said of Christianity — that slot parlors in Maryland hadn’t been tried and found wanting but were an idea that had been found difficult and not been tried, more or less. Feckless legislators were ready to wave the white flag even before the model they put before voters four years ago had been fully implemented. Now it’s be rejiggered with lower taxes, 1,500 more slots, table games and — just for Prince George’s County — a sixth casino license.

Support for a theoretical version of Question 7 was strong in the early going. Spending by expansion proponents and opponents has been fairly evenly split. But once the question actually made the ballot, poll numbers tightened significantly. Gonzales Research found voters evenly split, with 9% undecided, while a Baltimore Sun poll showed Question 7 trailing badly, with 38% support — in which case Penn National Gaming‘s $35 million campaign war chest will have been money well spent. Like a certain other 2012 race, it’s too close to call, with the electorate carpet-bombed beneath TV ads and robocalls.

It’s a ballot question that enjoys bipartisan support but has split the industry in a high-cost battle, with MGM Resorts International and Caesars Entertainment foremost among that aye-sayers,* while bitter foes of yore like Penn and Cordish Gaming — whose Arundel Mills casino has been crushing the competition and represents a $550 million investment — find themselves allied in common cause and voicing public opposition. Gov. Martin O’Malley (D, right) has long since thrown in his lot with MGM against Cordish (as have labor unions), making casino expansion his top summer priority, to the extent of calling a special session to get it done. Unlike Cordish, Penn’s hurting plenty, trying to drastically downsize its slot floor at Hollywood Casino Perryville. It’s also been trying to leverage a second casino license for itself at Rosecroft Raceway, so MGM’s presence is particularly unwelcome.

Of five planned slot parlors, only three have Continue reading →

Posted in Architecture, Cordish Co., Current, Economy, Election, Harrah's, Internet gambling, Maryland, Massachusetts, MGM Mirage, Penn National, Politics, Racinos, Regulation, Taxes, TV, West Virginia | 4 Comments

Quote of the Day

Posted on November 5, 2012 by David McKee

“The American dream used to be within reach of the middle class. Now it’s on offer only to an elite.” — Stockton, California housing developer Carol Ornelas. If you think what’s going on in the European economy “could not happen here” this might change your mind.

Posted in California, Current, Economy | Comments Off on Quote of the Day

Atlantic City open for business

Posted on November 2, 2012 by David McKee

Actually, a few hardy souls — like fearless restaurateur Montgomery Dahm, who was semper fidelis to his fellow citizens — never closed. Add Tun Tavern to your list of must-see stops when you visit Atlantic City. Ditto Ducktown Tavern & Liquors, which hung tough in the face of Hurricane Sandy. However, although casino owners have may have privately chafed, the State of New Jersey proceeded methodically before giving gamblers the “all-clear.” While the casinos rode out the storm safely, the remainder of the city has been badly pummeled.

Yesterday, Gov. Chris Christie (R) held off, wanting assurances that the water was potable and understandably feeling leery to turn the slot machines back on while Atlantic City residents remained in the dark. Early this morning, Christie gave Continue reading →

Posted in Atlantic City, Boyd Gaming, Current, Dining, Economy, Election, Environment, Florida, Racinos, Revel, Tilman Fertitta, Tourism, Transportation, Tribal, Tropicana Entertainment, Wall Street | 2 Comments

Third-quarter blahs: Ameristar, Boyd, MGM; Crackdown in Alabama

Posted on November 2, 2012 by David McKee

While nobody quite matched the $221 million loss posted by Caesars Entertainment, the gaming industry didn’t lack for underachievers in 3Q12, thanks largely to softness in domestic casino markets. Ameristar Casinos reported a $16 million profit, despite a 2% revenue decline. Slightly improved performance in Colorado was offset by new competition in Kansas City (-7%) and the road-construction issues to that continue to bedevil Ameristar East Chicago (-8.5%).

J.P. Morgan analyst Joseph Greff praised Ameristar’s ability to generate cash flow (“yields among the strongest in the sector”) but advised caution in “no-to-slow-growth” markets such as those which are Ameristar’s bread and butter. His colleague at Deutsche Bank, Carlo Santarelli, applauded Ameristar’s cost-control methods but also worried that Continue reading →

Posted in Alabama, Ameristar, Atlantic City, Boyd Gaming, CityCenter, Colorado, Current, Detroit, Downtown, Environment, Harrah's, Hawaii, Illinois, Iowa, Kansas, Louisiana, Macau, Marketing, Massachusetts, MGM Mirage, Mississippi, Missouri, Ohio, Penn National, Steve Wynn, The Strip | Comments Off on Third-quarter blahs: Ameristar, Boyd, MGM; Crackdown in Alabama

Have you seen this man?; Bluhm comes to Beantown

Posted on November 1, 2012 by David McKee

Anyone remember Gov. Steve Beshear (D)? For the five years, he’s been spinning his wheels, trying to get gambling expanded in Kentucky past horse racing. When Beshear ran for reelection last year, his GOP opponent, then-state Senate President David Williams claimed he’d support only slightly less gambling than Beshear. Turns out that Williams just funning us, having reverted to obstructionism in the upper house. Beshear removed that obstacle by plunking Williams into an open seat on the bench, but approval of the necessary constitutional amendment is far from a done deal. However, if a revision of the Bluegrass State’s tax code creates a revenue shortfall, Beshear’s finally got some stick to go with his carrot.

Kentucky may get a nudge from Isle of Capri Casinos‘ new, $135 million Cape Girardeau casino. Its opening was overshadowed by stormy events on the East Coast but Isle has a new, signature property that is positioned to draw from both Missouri and Illinois. The immediate target in its sights is the Harrah’s Metropolis riverboat. Meanwhile, Caesars Entertainment execs are busy overseas, touting the value of their $578 million golf course in Macao. Since — Continue reading →

Posted in Current, Illinois, Isle of Capri, Kentucky, Macau, Massachusetts, Missouri, Neil Bluhm, Politics, Racinos, Regulation, Tribal | Comments Off on Have you seen this man?; Bluhm comes to Beantown

No-win situation; October surprise

Posted on November 1, 2012 by David McKee

You might say Mitt Romney was for gambling before he was against it. Both as a 1994 Senate candidate and later as governor, he advocated slot parlors and later VLTs in Massachusetts. (He also proposed to extort $75 million apiece in ‘protection money‘ from gambling facilities in adjoining states.) But, beginning in November 2004, there was an “evolution,” as he’s described it, in Gov. Romney’s views. Gambling was A-OK when the Bay State was running a $3 billion budget deficit but, after booking surpluses, “the social costs associated with gambling are too great,” he sniffed.

This is a concern that was conveniently swept under the rug when Massachusetts was in the red — and theoretically even less able to bear aforementioned “social costs.” Romney’s relatively newfound scruples certainly postdate his Bain Capital tenure. His wholly owned subsidiary, Brookside Capital Investors, took a $29 million flier in stock of Gtech, the world’s leading lottery-system purveyor. At the time, Gtech was dipping a toe into Internet gambling, which Romney now opposes. So the man’s certainly been a “playa” in gaming expansion, but …

In the end, this may be a distinction without a difference. Romney’s rival Continue reading →

Posted in Atlantic City, Cantor Gaming, Current, Election, Harrah's, International, Massachusetts, Regulation, Taxes, Tourism, Tribal, Wall Street | 1 Comment

You can’t cure stupidity

Posted on October 31, 2012 by David McKee

Although I’m sure Tao Beach had its heart in the right place when it crafted this promotion for Breast Cancer Awareness Month, its brain fell clear out its butt. Not only does this public-disservice message appear to have been dreamed up by a bunch of horny frat boys, its target audience seems to be men. Either that or the message to women is meant to read: ‘Losing your life is bad but impairing your sex life is worse.’ We might have minimal standards for what constitutes stupid behavior in Vegas than in most other places, but this knuckle-dragging campaign falls below even our low civic bar. As penance, I suggest that Sheldon Adelson become a spokesmodel for the Hair Club for Men.

Posted in Current, Marketing, Sheldon Adelson, The Strip | 2 Comments

Hurricane Sandy: “It’s going to take years to recover”; ‘Unsafe sex’ at Sands

Posted on October 30, 2012 by David McKee

A natural disaster on the East Coast is fast becoming an industry-wide problem, its effects felt as far afield as Iowa, I kid you not. In light of the total havoc Hurricane Sandy has wrought upon travel, particularly by air, Las Vegas will feel an extra chill in the air, too. It seems nearly frivolous to talk about casinos when people are dead and seawalls are collapsing, but this is a moment of some gravity for the casino biz, and the effects on October revenue in Atlantic City will be dire. However, operators are taking the responsible course of action, regardless of its effect upon their bottom line, although Caesars Entertainment appears to be in a bit of hurry to get the roulette wheels spinning again.

The pleasant surprise was that, despite an eight-foot storm surge that made Atlantic City seem like the second coming of Atlantis and took out a large chunk of the Boardwalk, A.C.’s casinos came through darn near unscathed, according to early reports. (As for the human toll, it could have been a lot worse when you consider that serially useless Mayor Lorenzo Langford [D] was tripping over his shoelaces.) Or maybe not …

It is rather symbolic of the downcast state of Trump Entertainment Resorts that part of lowly Continue reading →

Posted in Atlantic City, Colony Capital, Donald Trump, Economy, Environment, Genting, Harrah's, Iowa, New York, Pennsylvania, Regulation, Sheldon Adelson, The Mob, The Strip, Tilman Fertitta, Tourism, Tribal, Tropicana Entertainment, Wall Street | 1 Comment

Cosmo: Yes, we have gambling!; Election Special 2: Palm Beach

Posted on October 30, 2012 by David McKee

For the umpteenth time, The Cosmopolitan of Las Vegas has been obliged to go to the media and say, ‘Yes, we not only have gambling but we actually like it, we really do.’ It’s a message that got kicked under the furniture during the run-up year in which the Cosmo promoted itself like a high-end S&M club. The upbeat narrative of CEO John Unwin was somewhat undercut by the lack of enthusiasm exuded by Deutsche Bank spokesdominatrix Mayura Hooper, who sternly told Vegas Inc. that the $3.9 billion hotel was strictly “an investment” — and neither long-term nor strategic, at that. Hooper did everything short of slap a “For sale” sign on the property, which is eking out a 2% ROI for the bank.

Still, the anemic gaming-revenue stream has finally drawn blood: As I expected, upper-level space has been cannibalized to provide more gaming positions, in the form of the high-end Talon Club. (Expect more of this.) Overall revenue was up a third in 1Q12, driven largely by ADRs, which sit around an enviable $257/night. For some historical perspective, when Sheldon Adelson opened The Venetian in 1999, he was routinely able to command $269/night. The Cosmo has another substantial property upgrade in the works, one that will be in line with its marketing position. In the meantime, the customer is king, given that Continue reading →

Posted in Arizona, Cosmopolitan, Current, Dining, Economy, Election, Florida, Isle of Capri, Marketing, Racinos, Sheldon Adelson, Taxes, The Strip, Tourism, Tribal, Wall Street | Comments Off on Cosmo: Yes, we have gambling!; Election Special 2: Palm Beach

Aliante: Alone again, naturally

Posted on October 30, 2012 by David McKee

After a year as a management-only company, Station Casinos is departing the soon-to-be-former (effective Nov. 1) Aliante Station and taking its brand with it. To celebrate the occasion, Virgen Inc. PR firm busted out every font in its computer (really, you should see this thing) to announce that the $662 million mistake on the north beltway is becoming Aliante Hotel + Casino. Well … it could be worse. They could have called it “AHC.”

More to the point, pardon the pun, out goes Boarding Pass and in comes “a brand-new player loyalty program” according to General Manager Terry Downey. Yup, it’s time to Continue reading →

Posted in Ameristar, Economy, Isle of Capri, Marketing, Missouri, North Las Vegas, Pinnacle Entertainment, Station Casinos, Wall Street | 1 Comment

The economy explained, in 394 seconds

Posted on October 30, 2012 by David McKee

Find me one casino company that doesn’t carry long-term debt …. like the -$2.8 billion sitting on the balance sheet of Wynn Resorts, right, Steve?

Posted in Economy, International, Steve Wynn | 1 Comment

A few days at the Riv, Part One

Posted on October 29, 2012 by David McKee

A big S&G ‘thank you’ to generous reader Jeff_in_OKC and his lovely wife Lisa, who shared the following observations from a recent Las Vegas sojourn, with a particular emphasis on the Riviera: Although I will pick some nits, I must say most importantly: THERE ARE GOOD THINGS HAPPENING HERE.

• One night when we visited both elevators in the self-park garage were out of order. This should never be allowed to happen, and casino employees should be posted on every floor to warn guests. People are forgiving and would easily work around it if they are informed up front.
• Many of the small snack bars, coffee kiosks and other small shops were closed at 7:15 PM when we arrived.
• Also, it seems like ALL the ceiling lights are turned off in the Pinball Hall Of Fame area, 24/7. This is short-sighted thinking that is so worried about overhead that it Continue reading →
Posted in Architecture, Dining, Entertainment, Marketing, Riviera, The Strip | 1 Comment

Behind the glamour …

Posted on October 29, 2012 by David McKee

Considering the number of resident spectacles, topless shows and convention gigs that require showgirls galore, you’d think casting directors would be receptive to the female form in all its wonderful variety. You’d think that. However, a former Jubilee! dancer and current freelance showgirl had a quite a different experience when auditioning for a producer whose taste in pulchritude is strange but quite typical, I am told, of the attitude pervading the Las Vegas Strip nowadays. (I’ve heard of women being perversely turned down for Crazy Girls, famous for its array of derrieres, on the grounds that they had too much ‘junk in the trunk.’) To wit:

…  in case any other performers are going through this.
In the past four years I have become a much stronger Continue reading →

Posted in Entertainment, Riviera, The Strip | 2 Comments

Atlantic City and Sandy’s silver lining; Adelson to cop a plea?

Posted on October 29, 2012 by David McKee

At the risk of taking Hurricane Sandy too lightly, in some respects the storm — currently on a path straight for Atlantic City — represents a strange blessing in disguise for the Boardwalk. With the city all buttoned up as of 4 p.m. yesterday, the last week of October will be a revenue washout and, depending on the extent of the damage, some of November might be gone with the wind, too. Which means that Atlantic City could get as much as a nine-week “mulligan” on its year-over-year revenue comparisons. Gov. Chris Christie (R) would also be able to take the high moral ground against racino-hungry legislators, shaming them for wanting to kick the Boardwalk while it’s down.

Points for proactivity go to Trump Entertainment Resorts, which shooed its guests out five hours ahead of schedule. And if idiot Continue reading →

Posted in Cretins, Current, Donald Trump, Economy, Election, Environment, Macau, Regulation, Sheldon Adelson, Tribal, Tropicana Entertainment | 1 Comment

High-profile Vegas divorce

Posted on October 26, 2012 by David McKee

This just in … peripatetic chef Carla Pellegrino has just released a statement in which “announces her mutual separation from Tropicana Las Vegas,” after 19 months overseeing its Italian restaurant, Bacio. The Brazilian chef, also late of Rao’s at Caesars Palace, referred to “exciting new opportunities” but mentioned nothing specific than her ongoing relationship with fusion restaurant Bratalian, down in Henderson. Unlike most servings of divorce papers, there was no description of an “amicable” parting, just an illusion to a new Significant Other … whom LVA‘s Research Department identifies as being the new Meatball Shop at South Strip mall Town Square, along with a recurring role on Top Chef: Seattle. The Trop, however, may need to sue for alimony after a recent quarterly loss of $6 million. But seriously … how many of Alex Yemenidjian‘s high-profile business relationships have ended messily … Jamie Gold … Nikki Beach … Paul Rodriguez … now Pellegrino … we’ve long since lost count. (At least he hasn’t, to the best of my knowledge, been sued by Continue reading →

Posted in Alex Yemenidjian, Cantor Gaming, Current, Dining, Internet gambling, M Resort, Penn National, The Strip, TV, Wayne F. Newton | Comments Off on High-profile Vegas divorce

Shadow-puppetry at the Sahara; TropiHilton of LV; Melco goes southerly

Posted on October 26, 2012 by David McKee

“Lightweight” might be a apt term to describe the braintrust forming around the SLS/Sahara project. So would “miscast.” Reporting to casino novice and owner Sam Nazarian, its president will be J.P. Morgan investment banker Sam Bakhshandehpour. His main qualification for the job? Well, according to Howard Stutz, “[he] worked with Nazarian earlier this year to secure $300 million in financing for renovation of the Sahara into the SLS Las Vegas.” Good enough for me! Put that man in charge of a new, un-branded Strip casino!

Actually, it sounds like they should send Mr. Bakhshandehpour down the street to Caesars Entertainment, which could really use help scaring up capital these days. They could call it a swap since …

Caesars was also the last port of call for ex-vice president of corporate marketing Veronica Smiley. She’ll be CMO at SLS, news that will not bring any Continue reading →

Posted in Alex Yemenidjian, Colony Capital, Cosmopolitan, Current, Goldman Sachs, Harrah's, International, James Packer, Lawrence Ho, Marketing, Melco Crown Entertainment, MGM Mirage, Planet Hollywood, Sahara, Steve Wynn, The Strip, Tourism, Wall Street | Comments Off on Shadow-puppetry at the Sahara; TropiHilton of LV; Melco goes southerly

Quote of the Day

Posted on October 26, 2012 by David McKee

“For my part, I have no problem characterizing these corporate-centric super-PACs as treasonous. They are designed to subvert American democracy and turn our country over to the moneyed aristocracy. Their aspirations are apostasy to the notion of democratic governance that our Founders intended. We are now in a free fall toward old-fashioned oligarchy, that noxious thieving, tyrannical, oppressive species of government that America’s original settlers fled Europe to escape.” — Robert F. Kennedy Jr.

Posted in Election, Regulation, Sheldon Adelson | Comments Off on Quote of the Day