Macao casino revenue grew ‘only’ 7% last month, which is bad … if you were thinking monthly, large double-digit increases (21% over the past five months) were a sustainable norm. “This is decent,” J.P. Morgan analyst Joseph Greff said of the $3.3 billion May gross, a near-record amount. For the remainder of the year and through 2013, Greff projects growth in the low double-digits. The softness of the Sands Cotai Central opening — “slower than expected” was how Deutsche Bank‘s Carlo Santarelli characterized its performance — may have retarded the May numbers and Greff doesn’t expect any serious “Oomph” (my term, not his) from Sheldon Adelson‘s newest pleasure palace until later this summer, when Phase II opens.
“Growth was going to have to slow at some point,” Greff writes of the market cool-off, noting that Galaxy Cotai opened to boffo biz a year ago, further dampening Continue reading →
How confident was MTR Gaming that it held a winning hand in the Ohio courts? Pretty darn confident, from the looks of things. It’s also quite impressive how quickly they whipped together that $152 million racino space at Scioto Downs — a lot faster than some Las Vegas locals casinos I could name. Let the Class II gambling begin … tomorrow. And it’s just the first of a wave of at least two, possibly three racinos descending upon the Akron area
Shares of Caesars Entertainment sank today on the news that CFO Jonathan Halkyard has quit, taking an equivalent position at NV Energy. Although the latter’s financial outlook is far rosier, with scant long-term debt, its revenue base ($611 million last quarter) is a fraction of Caesars’, making it difficult to characterize Halkyard’s leap as even a lateral move. But perhaps he got tired of staving off disaster at Caesars, where debt outnumbers cash flow 9.5 to 1. The company’s survival hinges upon opening as many new markets as possible before the jaws of debt maturity snap shut, even if it means pursuing low-yield projects like a Baltimore casino. Ditto Massachusetts, where Suffolk Downs owner Richard Fields has hung a prohibitive, $1 billion budget on a Caesars racino, jumping off the deep end and dragging Gary Loveman with him.
(Update: Perhaps the pithiest comment on l’affaire Halkyard came from Las Vegas Review-Journal reader “Long Time Nevadan” who wrote: “[NV Energy’s current CFO] makes about $862,000 plus benefits. Mr. Halkyard should be at least matching that number. Beauty about his new job is that his new business has a captive audience. No need to worry about weak demand for hotel rooms or declines in gaming wins. In this new job, the customers aren’t going anywhere.” An obviously miffed Caesars press release offered no congratulations, merely grumbling that Halkyard would “pursue an opportunity outside of the gaming industry.”)
Loveman will be a little busier now, having to add the CFO portfolio to his roster of titles as CEO, chairman of the board, president and Continue reading →
You might call it “UFC Smackdown”: Police were summoned to Wynncore in the pre-dawn hours of last Saturday to break up the proverbial “domestic disturbance.” Former Playboy model and current UFC ring girl Arianny Celeste (néeArianna Lopez) and boyfriend Praveen Chandra (who, whatever else he may be guilty of, is culpable of having the ‘douchebag’ look down pat) went 15 rounds with each other. Just the thing by which you want to be awakened at 4:30 a.m., no? If UFC owners Frank (III) & Lorenzo Fertitta were chagrined that one of their highest-profile employees was passing over Station Casinos‘ hotels in favor of a Wynn Resorts property, that sentiment surely turned to relief as soon as they realized that the ensuing PR problem is Marilyn Winn-Spiegel‘s headache and not theirs.
Ka-ching! Hotels and other businesses in Atlantic City are reporting “extraordinary” revenue increases over Memorial Day weekend. For instance, room revs at Resorts Atlantic City leapt 50%(!). Strangely, the opening of Revelgets only a parenthetical mention, although its opening festivities — four Beyoncé concerts included — would have been an obvious tourist draw.
“There aren’t any new customers out there. Gaming is an aged community … Anyone who has ever wanted to try a casino has tried a casino.” — veteran casino consultant Mike Meczka, expressing sentiments that will depress the s**t out of the industry and which underscore the importance of diversifying into Internet play. I’ve been privileged to know Mike a long time and don’t take his views lightly.
“[Donald] Trump is a small man who has big thoughts about himself, a vulgar attentionophile who cares not what damage he causes or whom he might hurt so long as he is in the spotlight … his hardly veiled racism consigns Trump to a category of unconscionable scoundrels and power-hungry demagogues who must be denounced, scorned and vilified.” — Jon Ralston, on the Trump Crazy Train, which made a whistle-stop at his Vegas edifice complex, Trump International, last night. It’s no surprise to read in today’s papers that an opportunist like Sheldon Adelson was cozying up to this casino-industry washout but I thought Steve Wynn had higher standards.
That’s the LVA office nickname for jukebox tuner Surf The Musical, currently in rehearsal at Planet Hollywood. As many as 35 Beach Boys songs have been laid end-to-end to create a midget version of a Broadway musical. The show’s creators have skipped the full-scale, B’way phase and leapt straight to a 90-minute, intermissionless “tab” show, per discredited Vegas custom. Although Smurf, er, Surf is still being fine-tuned, its production team literally begged for publicity at last night’s media preview, so I figure they deserve what’s coming … Continue reading →
Citizens of Toledo put on their best wife-beater and queued up for opening day at Penn National Gaming‘s brand-new Hollywood Casino Toledo. Sure, Revel had Beyoncé but H’wood Toledo had … Jamie Farr (plus ABBA impersonators). So there, Atlantic City! That’ll show ’em, huh? And, to put an appropriately festive tone on the occasion, Mayor Mike Bell made an ill-phrased remark about the casino’s role toward the “final solution” of restoring the city’s economy. But seriously folks … Penn looks like it’s lived up to the advance hype. The opening-day turnout of 7,500 (or 100% of capacity) was 50% in excess of what Horseshoe Cleveland was ready to accommodate on opening night and Penn’s permanent facility in Toledo looks more impressive (or less Continue reading →
So the big, official, grand, this-time-we-really-mean-it opening of Revel Resort & Casino came and went … and all the media has been talking about is Beyoncé and how bootylicious she looks so soon after giving birth. (Seven-plus pages of YouTube videos, too, and scarcely a clip of anything else on the Revel premises.) The good news for both Atlantic City and Revel is that the new megaresort is inspiring favorable comparisons to the Las Vegas Strip, which is a message the Boardwalk desperately needs to hear right now.
In the The Press of Atlantic City, the morning-after Revel story is that the Cosmopolitan style “Gambling? What gambling?” marketing strategy of CEO Kevin DeSanctishas been shelved. Parking is suddenly free and comps — lots of them — are now the order of the day. Peddling $2.4 billion Revel as a resort (especially in cold-weather months) was a risky strategy and give DeSanctis credit for being quick to realize he wasn’t playing a winning hand. He’s spinning it as something that was in the cards all along, simply delayed by two months of technical glitcherie … all the more reason to wonder why he chose to open Revel with so many bells and whistles untested. But it looks as though, thankfully, he just might get a second chance to make a first impression.
We like entertainment director Mitch Gorshin‘s outside-the-box thinking … but the Don Draper-on-vacation outfit isn’t working, man.
Some of DeSanctis’ casino-floor enhancements are slightly ‘WTF?’, possibly reminiscent of Circus Circus during the Jay Sarno era, but give him credit for trying something different:
That must be hella distracting if you’re trying to play digital blackjack (notice how heavily Revel has invested in it), but that’s probably the idea. Anyway, it will be literally months before Revel’s true impact is known.
Reality check. In a no-brainer that’s years overdue, Harrah’s Chester Downs was recently rebranded as Harrah’s Philadelphia. Although the Downs is closer to downtown Philadelphia than is market leader Parx Casino, the “Chester” moniker does make it sound like Harrah’s is out in the sticks someplace. At the risk of some bruised feelings in the City of Chester, the racino now has a stronger moniker, which execs hope will translate into stronger play.
Pulling a reverse of what Revel’s doing, Harrah’s Philly is remaking itself as more resort, less grind joint. Executive Director Kevin O’Toole may not find an 18% decline in slot revenue over four years “any sort of alarming” development, since it’s been more than countered by table-game win. But the name change strongly suggests that others higher up in Caesars Entertainment are less sanguine. With SugarHouse Casino continuing to gain (up 11% last month), the Valley Forge casino starting to make its presence felt — $6 million in its first month — Parx Casino was down 3% in April and Harrah’s was -10%. If ever there was a time to reposition Harrah’s, this is it.
Moving numbers. When I toured the Riviera, the dollar figure for potential reinvestment in the property was around $20 million. According to the Las Vegas Sun, it’s moved up to $35 million, maybe $50 million. A good thing, too, because every time I go back I’m pleasantly surprised by the continuing improvement — but much remains to be done. (The insides of the elevator cars look like something out of the slums.) So ownership’s increased commitment, if it is indeed that, is to be applauded, as is the Riv’s hit-’em-where-they-ain’t marketing strategy vis-a-vis its competitors. And while it might be merely “a question” for CEO Andy Choy and the rest of us whether Sam Nazarian will be able to reopen the Sahara by mid-2014, when it comes to Echelon and Fontainebleau, that same timeline is wishful thinking. The Riv’s going to have become a draw in and of itself because outside help is probably a good six or seven years away.
“But one thing that it’s always about — is how lucky we are to be Americans, to have the comfort of knowing that regardless of where our soldiers are or what we are doing, our families live secure, peaceful, and relatively safe lives. Free from the dangers and issues of everyday war, of being in the wrong place at the wrong time. Of driving down the road to take your children to school and getting hit by an Improvised Explosive Device, or having to watch a death squad kill someone’s family in the market square in retribution for a family member voting for the wrong party or flying the wrong flag. Of having a sniper fire at you as you try to get water from the only well that has safe drinking water.” — Col. Jordan S. Chroman (U.S. Army), on the meaning of Memorial Day, as compiled by Christine Faria, vice president for operations and communications at Raving Consulting.
“The cost of appearing with this bloviating ignoramus is obvious it seems to me. Donald Trump is redundant evidence that if your net worth is high enough, your IQ can be very low and you can still intrude into American politics.” — George F. Will, on the return of the mendacious casino figurehead to the campaign trail.
That Aquinnah Wampanoag Tribe effort to obtain the coveted southeastern Massachusetts casino license is quickly being exposed as a thing of smoke and mirrors. Sure, the tribe can get a Class II casino on Martha’s Vineyard — it’s a done deal — but the real money’s in Class III. (The Class II VLT parlor is being defensively described as a “boutique casino.”) Where the money isn’t is in the Aquinnah band’s bank account. They’ve been placing their hopes on hyper-obscureKMD Consulting Services, which just came up empty in Kenosha. KMD prexy Kevin Dwyer termed his parting with the Menominee Tribe “amicable” and said KMD was focusing on other casino projects (read: Massachusetts). However, a tribal source told the Milwaukee Journal Sentinel that KMD Continue reading →
Here’s a chuckle as you head into the Memorial Day weekend: Horseshoe Bossier City‘s Riverdome was on the receiving end of an online diss from Kelly Clarkson. During her Stronger tour, the rocker evidently wasn’t too impressed with the sprung structure that serves as a concert hall, captioning her pose (left), “Coming to a yurt near you …” However, the Riverdome probably wasn’t as underwhelming as the supposedly state-of-the-art Palms, evidently the one casino venue on the tour that couldn’t manage to put up the projection scrim for the opening number, “Dark Side.” Like the imminent (but date-unspecified) closing of Garduño’s, it’s one more indication that George Maloof has Continue reading →
“[C]oming through the back door, a two-headed monster of slot machines and mega-jackpots, both online, a monster … may completely overtake the conventional gaming industry. The lotteries, without any additional legislation or oversight, can offer, online, both slots and other casino games and those very, very large game-changing jackpots. A casino company has to invest hundreds of millions, if not billions, of dollars to build a competitive casino; lotteries do not. Lotteries will have access to every home and have the latest and best gaming products to offer. If casinos eventually get online, they will be months or years behind the lotteries. And when the casinos finally do go online, they will be more tightly regulated and taxed than the lotteries; it will be very difficult for casinos to keep up. … Did anyone know they were opening the back door to online gambling and inviting the lotteries to come inside and claim the best spot at the table?” — CDC Gaming Reports analyst Ken Adams, taking a very bleak view of brick-and-mortar casino companies’ prospects if Internet gambling is legalized in the U.S.
After blowing a half-million dollars on lobbying in Massachusetts, cantankerous casino owner Sheldon Adelson took his ball and went home, as reported earlier. Las Vegas Sands‘ rather weak excuse: “[Boston] didn’t synch up with our business model.” Sands fails to elaborate upon the logic whereby Connecticut can support two casinos but Massachusetts only one … theirs. The jet black-haired billionaire’s skittishness may have more to do with Suffolk Downs upping the ante to $1 billion (double the minimum) for its planned racino. Following asset sales in Missouri and South Africa, Suffolk partner Caesars Entertainment ought to have the cash to cover Continue reading →
This just in: It was pretty clear that Sheldon Adelson was cool toward his home state of Massachusetts and he officially called it quits today. His excuse? Three casinos and a slot parlor will “dilute the market.” In other words, no monopoly = no Sheldon. That’s a slight variation on the too-much-competition wheeze he used in Florida. Somehow, I expect the Bay State will find a way to live without him. Besides, if four casinos is too dilutive, how does the sandy-haired Las Vegas Sands CEO explain the recent, runaway success of Sands Bethlehem in a far more crowded market? Its revenues just grow and grow (up 27% in 1Q12), Resorts World New York having not made the slightest dent. Inconsistent much, Shel?
(This is default good news for Caesars Entertainment. It could have been knocked out of the Boston-area box by a strong Sands presentation but homeboy Gary Loveman‘s potential competitors continue to obligingly fall on their swords.)
Apple falls, tree nearby. It looks as though the recent Billboard Music Awards, held at MGM Grand, will be remembered less for anything that transpired during the show than for some not-so-legal slot play by Bobbi Kristina Brown (daughter of the late Whitney Houston). Seems that family just can’t stay out of trouble. The financial penalties for Continue reading →
“Tradition is the illegitimate son of grief. Tradition is a way to honor the unknowable generations that came before, to show them the false respect of unquestioning alliegance [sic]. Slavery was a tradition. Patriarchy was a tradition. There are lots of traditions that decrepit old orders imposed when their ideas lost the shine of truth. Tradition is the stuff of rot, the stuff of a culture living in the past. Tradition is the mummy of the old regime.” — New York Times reader April Fitzcarraldo, on the subject of censorship in “a nation of heretics and revolutionaries” (i.e., ours).
Well, now we know the official pronunciation of Hengquin Island (even the executives at Las Vegas Sands used to be a bit unsure of that): hung-chee. It looks ominously like another attempt at Continue reading →
What took them so long? That has to be the operative question now that Trump Entertainment Resorts owner Marc Lasry and CEO Robert Griffin have belatedly put Trump Plaza Hotel & Casino on the market, at an undisclosed price. (Probably the $35 million that Griffin needs to re-do Trump Taj Mahal.) The timing of the sale may have something to do with Hard Rock International‘s planned mini-casino hitting a snag. Considering the $300 million cost of a ’boutique’ casino in Atlantic City, a fixer-upper like Trump Plaza could come at a tenth of the price, leaving lots of moolah for physical improvements.
Whoever the prospective buyers are, Lasry and Griffin should have taken this course long ago. Instead they chose to Continue reading →
“‘Eleven, the Hard Way’ (1961), about a small town that sends a gambler [Walter Matthau] to Reno to try to win it a return to prosperity after the local mine goes bust, seems like a metaphor for all those states that hope a casino economy can replace their lost manufacturing revenue.” — the New York Times’ Neal Genzlinger, on the cultural prescience of Route 66.
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