Calamity in Ohio; Adelson under a magnifying glass

Approximately 10 workers suffered injuries yesterday when a partial cave-in occurred during construction of Horseshoe Cincinnati. None of the injuries was life-threatening but one local lawmaker noted that the casino — and others like it — “certainly have been in a hurry,” to make up for time lost while Gov. John Kasich (R) basically held their licenses up for ransom last year. For the moment, the finger of blame is pointing in the direction of majority owner Rock Gaming, which hired the contractors for Horseshoe Cincy. The accident comes five weeks after a similar mishap at Rock’s other joint venture with Caesars Entertainment, their Horseshoe Cleveland, whose parking garage sustained a collapse on Dec. 16. Given the common ownership denominator, it’s fair to ask Continue reading

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Station Casinos: In your face

For a company that bridles at negative press coverage, Station Casinos has a genius for provoking it. Case in point: Its increasingly hysteria-tinged campaign toward the Culinary Union. Up until now, it’s been confined to a series of overwrought, unintentionally amusing, sometimes factually debatable TV spots. Now they’re taking it to a mailbox near you. In the two years that my wife and I have lived at our present address, we have received not one piece of direct mail from Station soliciting our business. Zippo. Squat. Nada. A big, fat zero. Although we continued to patronize its properties, as far as Station was concerned we had ceased to exist.

Until today. Continue reading

Posted in Culinary Union, Current, Economy, Environment, Harrah's, Marketing, Station Casinos, TV | 2 Comments

Illinois: Not cricket; Boyd’s not going to like *this*: Death Ray: The sequel

Hardly had the outlines for a gaming-expansion compromise been leaked from the Illinois governor’s mansion when state Speaker of the House Michael Madigan (D, right) nixed the idea — or at least the prospect of a deal getting done in the current Lege. The new sticking point is the idea of the City of Chicago becoming a casino owner, thereby creating a public/private sector mishmash, or what Chicago-based Madigan more elegantly describes as a “two-tiered system.” He’s got a good point: Chicago would, in essence, be paying taxes to itself. Theoretically, that would give its casino better operating margins than those in the private sector. And that’s just not cricket. Mayor Rahm Emanuel could counter-argue that it’s a wash. The Windy City would have to hire outside management to operate its casino, at least in the short run, thereby outsourcing Continue reading

Posted in Boyd Gaming, CityCenter, Current, Election, Environment, Hawaii, Illinois, Louisiana, Politics, Sheldon Adelson, Taxes, Vdara Death Ray | 3 Comments

When executives attack: The Quickening

OK, you’ve heard the sound bites, read the correspondence, seen the over-the-top tactics. Now Station Casinos and the Culinary Union have to make their case to a higher authority: Jon Ralston.

(Historical footnote: When Ameristar Casinos bought Station out of a sticky wicket in Missouri, Continue reading

Posted in Ameristar, Archon Corp., Boulder Strip, Culinary Union, George Maloof, Missouri, North Las Vegas, Station Casinos, TV | Comments Off on When executives attack: The Quickening

When executives attack; Sheldon’s new beard; Wall Street loves it some MGM

Few YouTube feeds are more prolific and state of the art than that of Station Casinos (although they really ought to think twice about posting cell-phone footage online; it looks rinky-dink). However, what you will not see is an ad campaign airing on Southern Nevada TV stations, railing against the Culinary Union for engaging in — gasp!activism. Unheard of! (Which is not to certain excuse Culinary tactics that sound like harassment to me.) Of the three spots I’ve seen, two feature high-level executives who A) aren’t eligible for union membership anyway and B) are unlikely to see their jobs at risk — although one of the ads depicts a Vice President Of Sales whining that her job is in peril. (Trust me, lady, the rank-and-file will get the chop long before you do. And Station employees who are reliant upon the tender mercies of upper management — and have seen their 401[k] matches stopped during the Colony Capital fiasco — might well like the looks of the Culinary’s pension plan instead.)

The latest line of attack is that the Culinary is trying to stop people from getting married in Vegas! The deuce you say? Why those vile blackguards! Unhand that casino, you footpads!

The last time I looked, there was no shortage of opportunities to tie the knot here. Besides, based on recent history, maybe people should Continue reading

Posted in Atlantic City, Boyd Gaming, Colony Capital, Culinary Union, Current, Election, Florida, Macau, MGM Mirage, Sheldon Adelson, Station Casinos, Texas, TV, Wall Street | 2 Comments

One dynasty meets another

File this under ‘When camp icons collide.’ Yes, that’s Joan Collins, O.B.E. with showgirls from Jubilee! Between the show’s tenure and that of Ms. Collins, those are two careers characterized by unusually long legs — metaphorical and otherwise. Unfortunately, this summit meeting is overshadowed by the forthcoming collaboration of Madonna and Cirque du Soleil, a pairing that promises to bring us the gayest Super Bowl halftime show in living memory.

Cirque du Scuttlebutt. Unconfirmed rumblings from under the big top have Michael Jackson The Immortal rerouted Continue reading

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Gilbert’s Dixie deal; Linq begins; Musical chairs at Penn

Dan Gilbert‘s descent upon the Baltimore market, in tandem with Caesars Entertainment, isn’t exactly news but the revelation that it will operate under the Harrah’s imprimatur (relegated to tertiary status by Caesars CEO Gary Loveman) certainly is. Gilbert’s undergraduate career as a bookie at Michigan State University might also throw a monkey wrench into the works, although Crain’s Detroit Business reminds us that ex-Spartan’s lawyers were able to negotiate a sweetheart deal that “relaxed” Maryland regulations sufficiently for the Quicken Loans founder to wriggle through.

Since the Cleveland Cavaliers owner (right) has long since paid his debt to society and had the conviction expunged from his records, the fact that it still could have barred him from casino development in Maryland shows that the rules were too tight from the start. However, the timing of the ‘relaxation’ — coming last month, when the Baltimore slot-parlor license had gone unclaimed for three years and Gilbert was the only rescuer on the horizon — strongly suggests that a mix of pragmatism and desperation prompted the clemency Rock Gaming‘s boss received. Gaming policy in Maryland remains an expedient hodgepodge, not a logical framework.

Closer to Caesars HQ, if you’re fond of taking the back way into the Flamingo/O’Shea’s/Imperial Palace/Harrah’s Las Vegas cluster, avoiding Strip traffic, you can forget about it. As of today, those little back streets that bear the names Audrie, Ida and Winnick will be closed. Yes, construction is actually starting on Project Linq, Caesars’ half-billion wager that two of its gamier Strip casinos can be remade as a warren of mid-market retail and dining, effectively ridding Continue reading

Posted in Current, Genting, Harrah's, M Resort, Maryland, Neil Bluhm, New York, Penn National, Pennsylvania, Racinos, Regulation, Sheldon Adelson, South Carolina, The Strip, Tourism, Tribal | Comments Off on Gilbert’s Dixie deal; Linq begins; Musical chairs at Penn

Miller Time in Maryland; The sorrows of Marrandino

No question about it, THE gaming-industry story of 2011 was both an economic and political one: How the Great Recession has essentially broken the back of anti-gambling resistance in the corridors of American power. We can see it up and down the East Coast and throughout the Bible Belt. For instance, if Maryland has casino licenses it can’t give away, that’s because voters approved a confiscatory tax rate in 2008. Finding few takers (and having seen only one slot parlor and one racino open since ’08), lawmakers are trying to claw back some of what the electorate imposed. State senate President Thomas V. “Mike” Miller (D) is offering an incredibly “george” deal in return for adding a sixth slot parlor in Prince George’s County. The enticements include table games — with all proceeds being kept by the operator — as well as a lowering of the state’s dizzying 67% tax rate, possibly to 60%. Even so, Cordish Gaming, currently Continue reading

Posted in Atlantic City, Boyd Gaming, Cordish Co., Current, Dan Lee, Economy, Entertainment, Harrah's, Louisiana, Maryland, MGM Mirage, Pinnacle Entertainment, Politics, Taxes, Tropicana Entertainment | Comments Off on Miller Time in Maryland; The sorrows of Marrandino

Illinois: They shoot horses, don’t they?; Friday film festival

Score another round for Illinois Gov. Pat Quinn (D): By threatening a drawn-out negotiation process that would put casino expansion hard up against election season — with lawmakers facing the terra incognita of redrawn districts — he may have forced everyone to meet him halfway. That’s the early read on a compromise deal emerging from the governor’s mansion, brokered between Quinn and Chicago Mayor Rahm Emanuel — and hammered out on the noggins of emissaries of the horseracing and casino industries. The horsey set isn’t ready to back off its demand for racinos but it appears that legislators are preparing to dismount and Continue reading

Posted in Economy, Election, Environment, Harrah's, Horseracing, Illinois, Internet gambling, Missouri, Ohio, Penn National, Politics, Racinos, Regulation, Rhode Island, Taxes, Tribal | Comments Off on Illinois: They shoot horses, don’t they?; Friday film festival

Florida: How much is too much?; Sheldon Adelson, ventriloquist

Those $2 billion megaresorts mooted for Florida will have a much easier time making their nut if state Rep. Erik Fresen (R, left) holds sway. In an attempt to woo recalcitrant conservatives, Fresen is proposing various restraints on gambling’s growth in the Sunshine State. By contrast, a bill forwarded by state Sen. Ellyn Bogdanoff (R, below) looks like an all-out jailbreak. She’d permit: continued operation — under state oversight — 0f Internet-café or maquinitas-parlor casinos, leave all existing parimutuels eligible for slot machines and (with an assist from the state’s Supreme Court) throw the whole state open to megaresort development. There’d still only be three but they wouldn’t be saturated in one area.

Bogdanoff’s basically serving up a combination platter of disincentives for major development, with one substantial goodie (geographic diversity) for dessert. Fresen’s bill is the mirror opposite but it holds out two juicy carrots for Continue reading

Posted in Economy, Election, Florida, Fontainebleau, Genting, International, Internet gambling, Isle of Capri, Macau, Politics, Racinos, Sheldon Adelson, Tourism | 1 Comment

Quote of the Day

“Anxiety is the handmaiden of creativity.” — legendary animator and really cool dude Chuck Jones (1912-2002). Today, Circus Circus opened The Chuck Jones Experience, an interactive museum devoted to Jones and the veritable cosmos of characters to which his pencil gave life. Put it at the top of your “must-see” list the next time you come to Vegas.

Posted in Current, Entertainment, history, MGM Mirage, Movies, The Strip, Tourism, TV | 1 Comment

Aquedud?; Trump, chump

I apologize for feeding you some incorrect info earlier when I erroneously stated that the Philadelphia market lost business (apparently to Atlantic City) last month. Nope, Santa Claus was good to every casino in the Keystone State, although he could have been a little more generous to Harrah’s Chester Downs, which “only” got an additional 2% in its stocking.

If you knew nothing about table games, you could probably guess their volatility just by looking at the wacky variances across Pennsylvania, from Mount Airy‘s -6% to Sands Bethlehem‘s +72% (+88% for the quarter but up “merely” 21% for the entire year). Others who played exceptionally lucky were the dealers at Parx Casino (48%) and Mohegan Sun at Pocono Downs (32%), although only Parx and a strong-finishing Sands topped the $100 million mark in table revenue ($116 million and $106 million in 2011, respectively), with everyone else far below. At the slots, teething newborn SugarHouse bit off big chunks of Parx’s business (-5% for the year) and Harrah’s, too (-10%). Does anybody still think Philly needs a fifth casino?

That ‘clang’ you hear is the sound of Resorts World New York artillery shells bouncing off the steel plates of Sands Bethlehem, which not only continues to withstand Aqueduct‘s barrage but wins the Most Improved category for 2011, up 32%. Its $67 million in 4Q11 slot revenues came up microscopically short of Joseph Greff‘s estimate and exceeded Carlo Santarelli‘s, proving definitively that Genting‘s VLTs are no match for Sheldon Adelson‘s one-armed bandits (or those of the Mohegans, up 10% across the same time frame). Those numbers should improve further when the long-promised event center opens in May, a modest 36 months behind schedule. As for the history museum that Adelson rashly promised Bethlehem burghers, I’ve not seen it mentioned in years and it’s presumably safe to pencil in its completion date as “Never.”

At least one Ohio TV station has taken a deep swig of the Caesars Entertainment Kool-Aid and regurgitated the same old Gary Loveman spin: Continue reading

Posted in Atlantic City, Charity, Current, Donald Trump, Economy, Election, Genting, Harrah's, Jack Binion, Neil Bluhm, New York, Pennsylvania, Sheldon Adelson, Sports, Tribal, TV, Wall Street | Comments Off on Aquedud?; Trump, chump

Meet Virginia McDowell, Part II: Tales of Trump

In terms of turning around Isle’s financial performance, do you feel the full 180 degrees have been achieved yet? We’ve had a couple off different priorities over the last few years, as far as our strategic initiatives. One was to become a stronger operating company and we’ve made a tremendous amount of progress. One was — particularly during the Great Recession — to create experiences of values for our customers. We’ve very, very engaged with our customer base, not only through social media but through constant, ongoing research projects where we talk to our customers all the time. Rather than assume what is important to your database, we get out and talk to them at least two times a year, in many cases more than that. [We] ask them to rank what is most important, both in terms of the gaming experience and our employees, and then ask us to rank us on performance. To the extent that there’s a gap between what the customer is telling us is important and our delivery, it gives us a blueprint to improve our operations and we work on that.

During the Great Recession, although customer spending decreased our visitation actually increased. So at a time when leisure dollars were very precious to our customers, we were clearly giving them an experience that was of value to them, even though they didn’t have as much to invest with us. We have, because of the economic issues, instituted profit-enhancement exercises, which has helped us decrease our expenses and improved our margins at most of our properties, and we’ve also paid down a significant amount of debt since this management team joined the company [in 2007]. There are a lot of things that are moving in the right direction. Operating in what we are referring to as “the new normal” means that Continue reading

Posted in Atlantic City, Boyd Gaming, Donald Trump, Economy, Election, Harrah's, history, Iowa, Isle of Capri, Kentucky, Marketing, Missouri, Tourism, Wall Street | 3 Comments

Another domino wobbles; Western, R.I.P.; Fighting over pocket change?

Add South Carolina to the list of states that could be suddenly taking a more favorable view of casino gambling. What the United Keetowa Band of Cherokee Indians is pitching have to be compacted with Gov. Nikki Haley (R, right). We’ve seen in Florida what a long and hellish process getting a compact can be. Of course, if the state proves intransigent, the Keetowa can make a Hail Mary pass to the Interior Department, in D.C. But that’s a desperate resort, usually brandished as a threat when intrastate negotiations have dragged on for years. It’s a bit amusing to see Palmetto State TV anchors reeling with shock at the notion of a “huge” 400-room hotel-casino, something that would pass in Vegas almost without notice. Also, as far as the construction requiring “years” of effort, recent startups in Kansas and Ohio put the lie to that notion. Here’s hoping that Gov. Haley is at least willing to listen to what the Keetowa are offering.

After 42 years of business, the Western Hotel & Casino has joined the graveyard of defunct Vegas gambling palaces. The old grind joint — a casino so rough even Anthony Curtis hesitated to set foot there — quietly ceased operations yesterday, without fanfare. It was the ultimate in a series of cutbacks (motel rooms closed, shorter hours) by Tamares Group, which blundered into downtown Las Vegas in 2004 and hasn’t seem to have figured the place out yet. In a Las Vegas Review-Journal piece, Hubble Smith reports that Tamares will announce its new plan for the site later this week. I’m thinking it involves Continue reading

Posted in Atlantic City, California, Downtown, history, Internet gambling, Iowa, Kansas, Missouri, Ohio, Penn National, Politics, Regulation, South Carolina, Tamares Group, Tribal | 2 Comments

Quote of the Day

“To see Vegas through the eyes of a CES attendee is to stare into the loudest, brightest, most colour-saturated nook of hell. With 200,000 people — mainly men — crowded into an area just a few miles square, the city becomes one big lumbering, sweaty mass of ill-fitting suits, bluetooth headsets and shwag.” — Paul Carr, newly relocated to downtown Las Vegas, having his first, culture-shocking encounter with the Consumer Electronics Show, lifeblood of Sin City’s convention industry.

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Train robbery in D.C.

As the online-gambling gravy train begins leaving in the station, members of Congress are making one last attempt to derail it. After all, once New Jersey, Illinois, California, the District of Columbia and so forth set up shop as havens for Internet poker and other games of chance, the hundreds of millions of dollars in tax revenue that once dangled within Capitol Hill‘s grasp will be gone, baby, gone. According to Politico.com, “Supporters of a federal bill say states aren’t equipped to handle the complexities of Internet gambling, and Congress needs to step in,” a condescending viewpoint that sounds suspiciously like it came straight from the mouth of a certain Gary Loveman or one of his flunkies.

Bottom line, the newfound panic among congressmen and senators who have been hitherto sucking their thumbs could produce an ugly constitutional wrangle. Congress may attempt to rush through a law aimed at superseding individual states’ rights — basically mugging them and taking away any online-gambling monies that states thought were in their grasp. Against this one must weigh the extreme difficulty the current Congress faces even in agreeing whether or not the sun rose this morning. Its list of legislative accomplishments is slight and fast action has not been its specialty. Perhaps out of misguided deference to Sen. Harry Reid (D-NV), Nevada continues to take its cues from Washington, D.C., although one wonders how long that forbearance will once other states get their i-gaming apparatus up and running.

However, to say that this is an issue “that resonates with” Old Sixty Votes (as lobbyist Mark Hichar does) is really a hoot. Reid got blindsided Continue reading

Posted in California, Columbia Sussex, Cordish Co., Current, Harrah's, Harry Reid, Illinois, Indiana, Internet gambling, Politics, Problem gambling, Racinos, Regulation, Taxes, Tropicana Entertainment | Comments Off on Train robbery in D.C.

What would Dr. King say?

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

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

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

“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