What would Dr. King say?

Posted on January 16, 2012 by David McKee

Nothing good, I’m thinking. But we’ll never know, so instead let us turn to a different pulpit, that of Stephen Colbert …

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Meet Virginia McDowell, Part I

Posted on January 13, 2012 by David McKee

What are your plans for Nemacolin Woodlands Resort, in Pennsylvania? We’re still waiting for the appeal process to wind its way through the courts. The original plan called for to build on an existing facility on the Nemacolin property, which was originally built as a Cabelas-type and which the Hardy family had turned into kind of a Dave & Buster’s. It was the perfect size and layout for a gaming facility. It would give us the ability, upon approval, to go in there and relatively quickly do a build-out because it’s in an existing building. Our timetable is about nine months once we start construction and we’re really just waiting for the go-ahead from the state.

So Isle is not going to be getting into resort operations? No, the reason why it’s a wonderful opportunity for both parties is the Hardy family, in addition to operating Nemacolin, also own and operate 84 Lumber across the United States. they are an entrepreneurial family who, traditionally, has done these type of projects themselves. I believe we are the first outside company they’ve ever actually partnered with and it was because they realize they did not have the very specific expertise to do a gaming project. So when they were looking for a partner that looked at the world the same way they did, both ethically and culturally, it was a great coming together. The Hardys will continue to operate the Nemacolin Resort. We would operate the casino. We get to build a flagship Lady Luck [and] in addition, it gives us the ability to send our database – and we have over a million customers that are active – to this magnificent, five-diamond resort. So it’s a great strategic partnership.

What are the criteria for reentering the Las Vegas market? We don’t talk specifically about what we’ve looked at. We were selected to [potentially] manage the PropCo assets [during the Station Casinos bankruptcy], a couple of years ago, and became licensed in the state, so we do have the ability to enter the market, if we see the right opportunity. We see that we are more a locals operator than a Strip operator, so we would be looking more for opportunities off the Strip and it could be where we could add value. If it was a property that we felt our customers want to visit, if it was for the right price or something we may manage, Continue reading →

Posted in Downtown, Economy, Entertainment, Florida, G2E, Iowa, Isle of Capri, Marketing, Missouri, Pennsylvania, Station Casinos, Taxes, Technology, Texas, Tourism, Tribal | 3 Comments

Wynn & Okada: The bromance sours

Posted on January 13, 2012 by David McKee

Today’s Wall Street Journal confirms yesterday’s S&G tea-leaf reading that Kazuo Okada was being a naughty boy, bruiting about possible Wynn Resorts involvement in the Philippines, even showing “designs similar to iconic Wynn casinos, according to people familiar with the matter.” (Belated pushback by Wynn spokespeople seems to have reversed a stock slide on Wall Street, with WYNN only down 2% at the end of yesterday’s trading.) In a similar vein, Asian players who can’t afford a sojourn at Bellagio can gamble at cheapie knockoff Winn Casino in Bavet, Cambodia. You just have to look past all that Third World poverty mucking up the foreground.

Posted in Architecture, Current, International, Macau, Steve Wynn, The Strip, Wall Street | Comments Off on Wynn & Okada: The bromance sours

Quote of the Day

Posted on January 13, 2012 by David McKee

“I know there’s a perception in life that people who become financially successful do so by climbing up the broken backs of people whose backs they break, but I never climbed up on anybody’s broken back.” — Sheldon Adelson‘s apologia pro vita sua. In other matters Adelsonian, his $5 million venture into movie distribution may get shelved after it received the Washington Post’s not-so-coveted ‘four-Pinocchios‘ rating.

Posted in Election, Sheldon Adelson, TV | 1 Comment

Living on Vegas time

Posted on January 13, 2012 by David McKee

By way of Ian Sutton‘s Gaming Floor portal comes news that Les Artistes Steakhouse, late of Paris-Las Vegas, is fermé … toujours.  Although the hotel-casino has only been open since September 1999, on Caesars Entertainment‘s in-house blog this constitutes “a long, storied history.” Now, I’m not aware of any legends or special showbiz mystique surrounding Les Artistes but when I hear the phrase “long, storied history,” I immediately think of the Sahara or Golden Gate or, heck, even Circus Circus. I also think of oddball local establishment Continue reading →

Posted in Current, Dining, Entertainment, Hard Rock Hotel, Harrah's, history, Sahara, The Strip, Tribal | 5 Comments

Sheldon Adelson, wuss; MGM pounces; Slipper-y logic; Enter whining

Posted on January 12, 2012 by David McKee

What manner of fool spends $5 million to disseminate a film that he’s never seen and whose content he claims not to endorse? Sheldon Adelson, that’s who. After his latest political favorite got clobbered in the New Hampshire primary, Adelson is having a sudden onset of buyer’s remorse. The Las Vegas Sands CEO dispatched a minion to the Las Vegas Sun‘s Anjeanette Damon to try and spin Adelson’s busted play as an old man’s sentimental gesture “to help a friend who needed it.” “What happens from the time when that contribution lands with that PAC to now, he’s not involved with. He’s not been involved in the strategies and the tactics,” wailed Adelson’s underling.

And if you believe that — hoo boy! Station Casinos has some empty, ex-Castaways land that will make you an instant millionaire. Adelson’s seven-figure largesse, had it come a couple of weeks earlier, might have actually had an effect in Iowa and the Granite State. Instead, it’s like the cavalry riding in after the settlers have been massacred. Adelson’s guy is on the ropes and these disingenuous disavowals are a cover-your-ass move to preserve whatever influence Sheldon still might yield with the eventual nominee.

But let’s say Adelson’s pseudo-quasi-demi-denial is on the level. Sands shareholders better hope to God that the CEO isn’t as careless with their money as he is with his own. In the meantime, if he’d care to sign this blank check, made out to “Cash” …

While Adelson dithers, at least with regards to gaming in Massachusetts, his rivals at MGM Resorts International have no such qualms. Having gone from bearish to bullish on U.S. regional markets, CEO Jim Murren has nabbed 150 acres in tiny Brimfield, which he hopes to develop into $600 million “Rolling Hills Resort.” It’s just down the road from Palmer, which means two things: A) MGM is going for the much-sought-after western region of the state and B) Mohegan Sun‘s Palmer-centric proposal is in big trouble, especially with no development partner on the horizon. A casino might siphon away money from Brimfield’s thrice-a-year antique shows, but that’s a concern for local voters to weigh. The Mohegans were already looking like toast, what with Ameristar Casinos, Penn National Gaming and Hard Rock International (aka the Seminole Tribe) all foraging through rural Massachusetts and now this 800-pound lion shows up.

Of course, MGM is also vulnerable to ‘carpetbagger’ charges, due to its franchise agreement with Foxwoods Resort Casino. Regulators could also take a dim view of its business dealings with Pansy Ho. (Unlike Atlantic City, they can afford to be picky.) Foxwoods says it’s “not objecting” to MGM’s move, which is mighty big of them, Foxwoods being insolvent and all that. Evidently CEO Scott Butera has decided a probable loss of business isn’t worth pissing off MGM. Besides, Butera’s too busy stranding his Continue reading →

Posted in Alex Yemenidjian, Ameristar, Cordish Co., Dan Lee, Donald Trump, Economy, Election, Harrah's, Iowa, Isle of Capri, Jack Binion, Louisiana, Massachusetts, Mississippi, Movies, Neil Bluhm, Penn National, Pennsylvania, Pinnacle Entertainment, Politics, Racinos, Regulation, Sheldon Adelson, Station Casinos, Tourism, Transportation, Tribal, Tropicana Entertainment, TV | Comments Off on Sheldon Adelson, wuss; MGM pounces; Slipper-y logic; Enter whining

Trouble at Wynncore; ‘Phantom’ exorcised

Posted on January 12, 2012 by David McKee

Steve Wynn (no introduction required) and old pal — and major investor — Kazuo Okada are having a falling-out that spilled into the files of the SEC. Okada has lined up heavyweight Las Vegas law firm Lionel Sawyer & Collins to help him compel Wynn Resorts to give him access to corporate records. As someone who owns 20% of WYNN stock (compared to El Steve’s 9%), sits on the board of directors and even has a Wynncore restaurant named after him — though maybe not for much longer — you might say Okada’s got a legitimate beef.

Okada alleges that “despite several written demands, Wynn Resorts insists on keeping its books and records hidden from its Director’s scrutiny.” His targets of interest include a recent, $135 million donation to the University of Macau, despite Hong Kong resident Okada’s personal opposition, and the use of $30 million he lent Wynn in 2002 “to help advance” the “due diligence” of what eventually became Wynn Macau. According to the SEC filing, Wynn Resorts denied to Okada’s face that he’d ever lent that $30 million to begin with, then backpedaled Continue reading →

Posted in Dining, Entertainment, Harrah's, International, Macau, MGM Mirage, Regulation, Sheldon Adelson, Steve Wynn, Wall Street | 2 Comments

Belated Christmas presents, Midwest edition

Posted on January 11, 2012 by David McKee


To quote Stephen Sondheim, everything’s coming up roses … or close enough, anyway. Last Friday, strong numbers out of Iowa — of a non-caucus ilk — showed the state’s casinos rebounding to the tune of 16% (on a $121 million) gross, fueled by double-digit increases in play. Even after backing out newbie Grand Falls Casino, that’s still good for a same-store comparison of +11.5%. Isle of Capri Casinos had particular reason to smile, its fleet garnering an aggregate increase of 16%. The smaller the vessel, the more spectacular the gains, but let’s not rain too hard on the parade of the two Diamond Jo boats (+31%) or little outfits like Wild Rose Emmetsburg (+17%). December tends to be good for business at Caesars Entertainment‘s Horseshoe-branded racino and thus was the case last month, with a 16% surge.

Faring much less well was Harrah’s Council Bluffs, -5% for the month, -13% for the year and -11% for the 2010, displaying negative comparisons in 23 of the last 24 months. At least Gary Loveman can take solace in the fact that Continue reading →

Posted in Ameristar, Boyd Gaming, Cordish Co., Dan Lee, Don Barden, Donald Trump, Economy, Environment, Harrah's, Illinois, Indiana, Iowa, Isle of Capri, Kentucky, MGM Mirage, Missouri, Neil Bluhm, Ohio, Penn National, Pinnacle Entertainment, Racinos, Taxes, Tropicana Entertainment | 1 Comment

Belated Christmas presents, Part II

Posted on January 11, 2012 by David McKee

If the good news keeps raining down like this, I might have to start using the R-word … as in “recovery.” In November, Nevada‘s $880 million gross was good for a 7% upsurge. The Las Vegas Strip beat the statewide average, up 9%. According to a J.P. Morgan analyst report, those numbers “reflect the continuing strengthening of trends (volume growth in baccarat, tables … and slot), which were likely helped by the solid event calendar for the month.” Analyst Joseph Greff went on to predict December growth of similar proportions, coming off bad prior-year numbers. Greff’s year-ahead scenario calls for slow but steady improvement in ADRs and only slightly higher operating expenses.

A teensy increase in slot handle translated to a 3% increase in casino win (on the Strip, anyway), although the key number is always baccarat. Casinos had their way with baccarat players, winning $89 million (29% up from November 2010). Even non-baccarat table play was strong for the casinos, up 12%. Locals play continues to solidify, save for a, -5% month in the bumpy North Las Vegas market, with both Downtown (+7%) and the Boulder Strip (+12%) on the ascent. Even Reno had a microscopically positive month, unlike Lake Tahoe, displaying its usual seasonal volatility (-7%). Laughlin (right) declined just 2% but has had only one revenue-positive month this year, a 12% bounce last June. They really need some new or dramatically refreshed product down thataways.

As for high rollers, they’re the beneficiaries of a new, high-limit slot area at Winn Wynn Las Vegas, announced today … although it was rolled out last Dec. 21. Yup, you have to be an early riser to Continue reading →

Posted in Architecture, Boulder Strip, CityCenter, Colony Capital, Current, Detroit, Downtown, Economy, Goldman Sachs, Lake Tahoe, Laughlin, MGM Mirage, North Las Vegas, Reno, Steve Wynn, The Strip, Tourism, Wall Street | 1 Comment

It was 10 years ago today …

Posted on January 11, 2012 by David McKee

Martial law, American-style, enters its second hit decade today and our seaside resort on the balmy shores of Cuba‘s scenic Guantanamo Bay (now under new management) still has vacancies, I understand. Due process is such a drag, isn’t it?

Posted in history, International | 1 Comment

Quote of the Day

Posted on January 11, 2012 by David McKee

“My point is, we should go full speed ahead.” — fiscally reckless Illinois state Rep. Lou Lang, pimping exponential casino expansion. Say, isn’t that what the captain of the R.M.S. Titanic said? Or maybe it was a Japanese kamikaze pilot …

Posted in Economy, Illinois, Politics | 3 Comments

Belated Christmas presents

Posted on January 10, 2012 by David McKee

Good news is busting out all over, starting in the unlikeliest place … Atlantic City. Ye Olde Boardwalk was up 4% last month, its first revenue-positive month in 15 quarters. Even a 10% fall in table drop couldn’t put a damper on things, thanks to higher slot drop (7%) and hold, as well as strong table hold percentages.

Leading the victory parade was Borgata, which blew past analysts’ expectations on the strength of boffo table revenue (+37%), grossing $56 million or a 19% increase from last year. Resorts Atlantic City continues its Comeback Kid saga with a 23% increase, for $11 million. Except for Bally’s Wild Wild West (-3%, right), all the Caesars Entertainment properties showed heartwarming little upticks, while Tropicana Atlantic City and Trump Taj Mahal exactly repeated their year-previous performance. The Golden Nugget (-1%) may have finally — we hope — bottomed out at an even $10 million, while only Atlantic City Hilton (-6%) and Trump Plaza (-15%) c0ntinue to tank. The latter grossed a measly $8.5 million. Given the cost of running a modern-day casino, how much longer can Trump Entertainment Resorts afford to Continue reading →

Posted in Atlantic City, Boyd Gaming, Colony Capital, Current, Dennis Gomes, Donald Trump, Economy, Election, Genting, Harrah's, Horseracing, Illinois, Neil Bluhm, New York, Pennsylvania, Politics, Racinos, Sheldon Adelson, Tilman Fertitta, Tribal, Tropicana Entertainment, Wall Street | 1 Comment

Sunshine State sap

Posted on January 10, 2012 by David McKee

Backers of Florida casinos, working under the rubric of Associated Industries of Florida, evidently take voters down there for simpletons. Their ‘See Spot Run’ pitch for casino-based destination resorts describes something that sounds very much like Venelazzo or Wynncore, then has the brass to declare, “Destination Resorts [sic] are a new concept unlike anything currently in existence on U.S. soil.”

HA! We’ve had them in Vegas ever since Steve Wynn opened The Mirage, lo, these 23 years ago, Atlantic City got into that game less than a decade back with Borgata, and let’s not forget Foxwoods and Mohegan Sun. Adding insult to untruth, AIF offers this supposedly pacifying verbiage: “gaming facilities would be limited to no more than 10 percent of the resorts’ total square footage.”

Oh please, stop! I can’t take the hilarity anymore! The gargantuan casino-based resorts of Singapore cap gaming square footage at 6%. Hunter Hillegas ran some numbers for us and came up with 5.5% for Venetian Macao (nobody’s idea of a boutique property) and a seemingly puny 2.5% for Bellagio. Allowing for all the variables involved between one casino and another (does or doesn’t the parking garage count?), MGM Resorts International gave us figures that computed to a massive-for-Vegas Continue reading →

Posted in Architecture, Atlantic City, Boyd Gaming, Florida, history, Macau, Marketing, MGM Mirage, Politics, Sheldon Adelson, Singapore, Steve Wynn, The Strip, Tourism, Tribal | Comments Off on Sunshine State sap

Adelson: Whining our future; The online deluge

Posted on January 9, 2012 by David McKee

Apparently there’s no avoiding what has become the story of the day: Sheldon Adelson‘s $5 million dowry to presidential aspirant Newt Gingrich. It’s a gift that comes with a substantial pre-nup; if Gingrich falters in South Carolina, American Crossroads and Crossroads GPS (past nemeses of Sen. Harry Reid [D-NV]) will pull the purse strings taut and probably go shopping for another blushing bride. That’s a scenario which is more likely than not, for one simple reason: Adelson has a craptacular track record when it comes to backing winning candidates. Most of his Cinderellas turn into pumpkins on or (often) well before Election Night. Personally, I’d expect the sanctimonious Adelson (see below) to support “an authoritarian, sexist douche” — as a Ron Paul supporter characterized an opposing candidate — but one neocon is as good as another, I guess. Either way, he’s bankrolling a movie (clips available here) depicting Mitt Romney as the Tom Barrack of politics, a man who turns to ashes every business he touches.

Depending on your perspective, Adelson’s line of attack against Romney is about time or merely too late to do any damage. Sheldon and his Crossroads crew plan to hammer Romney on his background in … wait for it … private equity. Now, those are two words tantamount to profanity in Continue reading →

Posted in Alex Yemenidjian, Atlantic City, Boyd Gaming, Colony Capital, Current, Economy, Election, Florida, George Maloof, Harrah's, Harry Reid, Hooters, International, Internet gambling, Marketing, Massachusetts, MGM Mirage, Pennsylvania, Politics, Regulation, Sheldon Adelson, South Carolina, The Strip, Wall Street | 4 Comments

Birthday wishes and congratulations

Posted on January 9, 2012 by David McKee

OK, so we’re six months early but this year marks the 50th anniversary of the Eldorado, which opened in downtown Henderson on July 1, 1962. Locals casinos wouldn’t become an industry unto themselves for years yet but the Eldorado and nearby Jokers Wild are said to hold a special place in Boyd Gaming Chairman Bill Boyd‘s affections. Jokers Wild got something of a reprieve, thanks to the recession: Boyd Gaming had been expanding its property holdings around the casino, in anticipation of major residential development just across the street.

A variety of factors, including the economy, put paid to that mega-homestead plan, leaving the Jokers Wild intact for the foreseeable future. Anyway, if you’ve not made the drive Continue reading →

Posted in Boulder Strip, Boyd Gaming, history, MGM Mirage, Problem gambling, Station Casinos | 1 Comment

Quote of the Day

Posted on January 6, 2012 by David McKee

“Caesars [Entertainment] has comped me to a few meals, sent me show tickets, and invited me to slot tournaments. The company’s still convinced I want to ride a bus down to Laughlin and stay there for a few days, too, so obviously their data mining and psychographics are impeccable.” — Dr. David G. Schwartz of UNLV, not exactly a Laughlin kind of guy, comparing recent marketing efforts by Strip casinos. A bottom-of-page comment on Cosmopolitan of Las Vegas by Chuck Monster is pricelessly insightful.

Posted in Cosmopolitan, Harrah's, Laughlin, Marketing, The Strip, Tourism | Comments Off on Quote of the Day

Hans Klok, come back!

Posted on January 6, 2012 by David McKee

Sometimes one experiences an experience so awful that its sheer awfulness is awfully far beyond the power of words to describe. That’s what happened last night at the premiere of Vegas Magic Theatre at Gold Coast. (How bad was it? The only person yukking it up was professional pushover Robin Leach.) Before an audience that included Bill Boyd, Lance Burton, Mike Weatherford and Siegfried Fischbacher, VMT bombed … horribly. The warmest applause went to Burton, when he was acknowledged from the stage, probably because we all wished he were performing instead. (Siegfried milked his [slightly smaller] ovation shamelessly.) If you absolutely must see it — and you’d probably have to be a severe masochist, if that’s the case — do so quickly, because VMT won’t be long for this world.

Performed without pace or rhythm, and running a tortuous 105 minutes, VMT featured an array of performers whose acts were so lame they’d get booed off the stage at a child’s birthday party. The recurrent volunteer-from-the-audience bit was a mortifying disaster. It could be entirely different story next week, as the cast rotates every Thursday. The presenters vow to scour the globe for talent but the opening-night lineup — including itinerant vocalist Jasmine Trias and a host whose coiffure bore an astonishing resemblance to a porcupine’s pelt — looked more like Continue reading →

Posted in Boyd Gaming, Donald Trump, Downtown, Entertainment, Florida, Isle of Capri, The Strip | 1 Comment

The Last Hoot

Posted on January 5, 2012 by David McKee

I’m whaling away on a couple of  non-gaming fronts today but I wanted to at least drop in and say that Hooters Casino Hotel goes on the block next month, so bust open your piggy banks. But seriously … Creditor-in-Chief Canpartners Realty Holding Company IV can plunk down a $178 million credit bid on the place. The chances of anyone topping that with real money? I would rate them at considerably less than zero. Even today’s good news that Hooters has slightly improved its revenue and considerably narrowed its operating deficit (by what means I dare not imagine) underscores the fact that Hooters is a low-grossing casino that loses money.

But perhaps the drooping fortunes of Hooters can be firmed up somehow. One doable — although highly unlikely — scenario is tailor-made for Station Casinos. The latter owns a “floating” license it bought several years back, one that permits it to build a casino sans hotel rooms. Let’s say Station were to either satisfy Canpartners’ actual cash outlay (roughly $50 million) or be jobbed in as a  management company. Hooters (presumably rebranded as Continue reading →

Posted in Alex Yemenidjian, Current, Entertainment, Hooters, Station Casinos, The Strip | Comments Off on The Last Hoot

Vegas’ newest low-roller joint; Is the Lion extinct?; Another classy Sands moment

Posted on January 4, 2012 by David McKee

Move over, Longhorn and Vegas Club. The spirit of Nevada Palace (R.I.P.) hath descended upon the Palms. If recent sackings of Bunny dealers portended a sea change at the former George Maloof property, during my latest visit I practically collided with giant, cardboard signs advertising things like 99¢ midday margaritas and all-you-can-eat specials. Getting a table at Garduño’s, no problem in earlier times, took the better part of half an hour. “Reservations” was the proffered excuse (on a slowish Thursday night) but the rows of empty tables suggested that short-staffing was the likelier cause.

Having applied a less-than-Midas touch to M Resort and the Hard Rock Hotel & Casino, bounced-around Palms prexy Joe Magliarditi is promising bigger and better things for his current property. But, at the moment, “strategy” sounds more like “desperation.” That bold, new look has the appearance of scrimping, saving and ginning up cash flow ASAP. Affordability is always welcome, but don’t tell me you’re an upscale property and give me grind-joint treatment.

Magliarditi serves at the behest of the Palms’ vulture, er, venture-capital owner, Texas Pacific Group — which has done such wonderful things for Continue reading →

Posted in Animals, Current, Dining, Entertainment, George Maloof, Harrah's, Marketing, MGM Mirage, Pennsylvania, Sheldon Adelson, The Strip | 3 Comments

Best new casino-hotel of 1998 …

Posted on January 4, 2012 by David McKee

… goes to the Octavius Tower at Caesars Palace, which opened last month. It’s tucked far enough away from the casino floor to provide some mental lebensraum as well, and it has a dedicated check-in desk. Since it directly overlooks Caesars’ cluster of pools (potentially affording some R-rated views of topless bathers), how much peace of mind — in addition to prurience — Octavius will provide when “daylife” season begins is an open question. Last month’s shakedown cruise was a bit shaky, if you will. Rooms were generously supplied with bottled water and the obligatory ice bucket — but the ice machine on our floor wasn’t operational. Not all of the jets in the bathtub were working, either, and — given the displaced water pressure — activating the whirlpool function was like uncapping a fire hydrant. (Score one for Continue reading →

Posted in Architecture, CityCenter, Donald Trump, Encore, Hard Rock Hotel, Harrah's, Sheldon Adelson, The Strip | 4 Comments