Quote of the Day

Posted on April 4, 2011 by David McKee

“Celebrity Apprentice is widely regarded as terrible and cheesy programming, but, actually, it has its moments. I recently saw an episode in which a former top model had a serious discussion with a fellow competitor about whether this was the 20th century or the 21st. You can’t get stuff like that on Mad Men.” — New York Times columnist Gail Collins on Donald Trump‘s Sunday-night sitcom. In other news, the mystery of Trump’s coiffure is finally unwoven.

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If you don’t look like this …

Posted on April 1, 2011 by David McKee

… don’t even think about trying to book a hotel room on the Strip or in Downtown. Las Vegas doesn’t want you, although you might be permitted to stay out on the Boulder Strip or someplace really out of sight … like Aliante Station (which sits on the absolute northern edge of development, next door to miles and miles of empty desert — and that’s no exaggeration). In fact, I hear the TSA is going to start enforcing a two-tattoo minimum on passengers deplaning at McCarran International Airport. If they find one tramp-stamp or fewer (thanks to that new X-ray screening technology) they’re gonna pack your hide straight on back to Anytown, U.S.A.

Happy April 1, everyone!

Posted in Boulder Strip, Current, Regulation, Station Casinos, The Strip, Tourism, Transportation | 1 Comment

The North Strip Story and Salvation Plan

Posted on April 1, 2011 by David McKee

Guest blogger Jeff in OKC returns, his previous dispatch on Downtown’s Western Casino having proven a smash hit; its fans included Western manager Anthony Santo himself. During his latest visit, he concentrated upon the north end of the Las Vegas Strip, an area whose (dubious) future has been much in the news of late …

Over at Two Way Hard Three, Dr. David G. Schwartz gives an excellent blog post about the Riviera‘s revenue decline over the past five years and how it relates to much of the North Strip’s woes. My version of the North Strip consists of the Riviera, Circus Circus, Slots-A-Fun, Las Vegas Hilton, Sahara and Stratosphere, as well as any unfinished or undeveloped sites (Fontainebleau being the most obvious example).

Although the North Strip casinos have posted losses and stakeholders have also lost some — if not all — of their investments, those losses combined are less than the individual amounts that will not be repaid by South Strip operators MGM Resorts International, Harrah’s/Caesars Entertainment and former Tropicana Las Vegas owner Coumbia Sussex. The Cosmopolitan of Las Vegas will not repay its development cost to Deutsche Bank of the reported $3.9 billion in the next 25 years, or the true $5.9 billion in 35 years plus. The North Strip operators are just like Continue reading →

Posted in Alex Yemenidjian, Boyd Gaming, Cloverfield monster, Colony Capital, Columbia Sussex, Cosmopolitan, Current, Economy, Entertainment, Fontainebleau, Goldman Sachs, Harrah's, MGM Mirage, Steve Wynn, The Strip, Transportation, Tropicana Entertainment, Wall Street | 10 Comments

Making life easier, Deutsche Bank-style

Posted on April 1, 2011 by David McKee

As I posted yesterday, Deutsche Bank has decided to simply waive $756 million it owes … well, basically to itself for building The Cosmopolitan of Las Vegas, reducing the tab (on paper) from $4.1 billion to $3.3 billion. Wouldn’t our lives be easier if we could simply raise or lower our own break-even point by mere decree? For instance, my recent ankle sprain has left me with a $125 bill from the orthopedist. Were I Deutsche Bank, I would reply that I’m taking an 18% “writedown” on the bill and sending $102.50 instead. I’m sure they’ll understand. And if you apply this logic to your car payments and mortgage, I’m confident you’ll face no consequences whatsover! At least not if you’re a major Wall Street institution … or Caesars Entertainment, for that matter.

Posted in Cosmopolitan, Current, Harrah's, Wall Street | 1 Comment

Quote of the Day

Posted on April 1, 2011 by David McKee

“This place has all the class of a 7-Eleven combined with the excitement of a Keno parlor and the desperation of a sports book. In other words, I loved it.” — VegasTripping.com‘s Chuckmonster on the Primm Lotto Store, just a short stroll across the parking lot (and California–Nevada state line) from a fine outlet mall and two Herbst Gaming casinos.

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Programming note …

Posted on April 1, 2011 by David McKee

As of now, the S&G “Comments” feature is working again. It mysteriously conked out last week, although it took me several days to cotton onto the problem. I just figured nobody was reading my shit. (The two scenarios are not, of course, mutually exclusive.) However, if you feel the urge, you can now comment away to your heart’s content. You’re weren’t planning to do anything else on the first weekend of baseball season, right?

Posted in Current, Sports, Technology | 1 Comment

Sheldon Adelson’s court jester yuks it up

Posted on April 1, 2011 by David McKee

Las Vegas Sands-backed mayoral candidate Victor Chaltiel rolled out the following prank ad today … I’m not sure that there’s any percentage in going after the grandmotherly (but hopelessly vague) Carolyn Goodman in the snide fashion that is quickly becoming Chaltiel’s trademark. (The cosmopolitan Chaltiel is almost never heard in his myriad TV spots, probably because of his dense French accent.) In the course of fisking Chaltiel’s and Goodman’s campaign reports, Jon Ralston found “george” donations from Station Casinos flowing Continue reading →

Posted in Archon Corp., Current, Downtown, Election, Florida, Harrah's, International, Laughlin, Macau, MGM Mirage, Minnesota, Mississippi, Politics, Regulation, Sheldon Adelson, Station Casinos, Steve Wynn, Texas, The Strip, TV | 1 Comment

Salvation for Illinois? “Golden Boys” strike again

Posted on March 31, 2011 by David McKee

According to lobbyists for MGM Resorts International‘s Grand Victoria riverboat, the smoking ban in Illinois has stove in casino revenues by 33%. Statewide, the average is -28% since 2008 — costing the state no small amount of tax monies — while nearby Indiana casinos were simply flat during the Great Recession. But rescue may be at hand. The Illinois House of Representatives narrowly voted to lift the prohibition in the Land of Lincoln. Both the state Senate and Gov. Pat Quinn (D) could still block the bill but this is unquestionably the best news Illinois casino owners have received in four years.

Fun fact: Although his anti-gambling stance made him something of a nuisance in Florida, Sen. Marco Rubio (R, left) is the son of casino workers. An S&G reader who was just watching Rubio on TV writes me that Sam’s Town was apparently Mario Rubio‘s place of employment. (The late Mr. Rubio’s son tends to be vague on the matter.) Does this obligate Boyd Gaming to financially support Sen. Rubio’s future endeavors? I’m joking, of course, and I can’t find any Rubio-related donations from Boyd, which owns a jai-alai fronton in Florida that it once hoped to convert into a slot parlor.

Although Sen. Rubio has categorically ruled out a 2012 presidential bid — making him virtually the only American to have done so — he’s coyly vague about his availability for the veepstakes. Was there something about his parents’ employment that inspired Continue reading →

Posted in Boyd Gaming, Current, Economy, Florida, Harrah's, Illinois, Indiana, Internet gambling, MGM Mirage, Politics, Regulation, Sports, Station Casinos, Taxes, Tilman Fertitta, TV | Comments Off on Salvation for Illinois? “Golden Boys” strike again

Florida rejects Adelson; Mixed signals from Cosmo; Station’s quixotic quest

Posted on March 31, 2011 by David McKee

It’s all over — until 2012, anyway — for Sheldon Adelson‘s heavy-handed push to ram a set of “destination resorts” through the Florida Legislature. A poison-pill amendment, attached at the behest of parimutuels, would let existing slot houses go to full Vegas-style casinos. (Under the Indian Gaming Regulatory Act, the same courtesy would have to be extended to Florida’s tribal casinos.) It would also further reduce the rate at which Sunshine State parimutuels are taxed. This was more than casino proponents (heavily lobbied by Wynn Resorts as well as Las Vegas Sands) were prepared to stomach.

Other forms of casino-enabling legislation are on life-support in the bestiality-friendly Lege but even Sands is conceding that its attempt to juice itself into Florida’s first megaresort could take years. Since the Adelson-backed bill would have “sprinkled” five casinos across the state, it meant that projects would also have to be approved at Continue reading →

Posted in Boulder Strip, CityCenter, Cosmopolitan, Current, Economy, Entertainment, Florida, International, Macau, North Las Vegas, Politics, Racinos, Regulation, Sheldon Adelson, Station Casinos, Steve Wynn, The Strip, Tourism, Tribal, Wall Street | Comments Off on Florida rejects Adelson; Mixed signals from Cosmo; Station’s quixotic quest

Woe on the North Strip

Posted on March 31, 2011 by David McKee

Owners of the Riviera and the Las Vegas Hilton published their respective annual reports and it wasn’t a good day for the north end of the Strip, where bargain-priced casinos fight a holding action against the market forces of the Great Recession. The good news for both was that losses in 2010 were narrower than in ’09. The Riv has also managed to shuck a large portion of the long-term debt that was forever a millstone around the late William Westerman‘s neck.

Proximity to the Las Vegas Convention Center has undoubtedly thrown a shovelful of sand under the Hilton’s keel, as ADRs and occupancy remained level, no better but (more importantly) no worse. However, as though to confirm the old saw that conventioneers aren’t gamblers, casino revenue was down 16%, accounting for the entire 2009/2010 revenue discrepancy. Still, it can’t help management that very few recent LVH entertainment offerings have shown any staying power.

All too inevitably, the financials warned of the Hilton’s dubious ability to remain “a going concern,” thanks in part to $292 million in debt with which it has been lumbered by Continue reading →

Posted in Colony Capital, Colorado, Current, Economy, Goldman Sachs, International, MGM Mirage, Ohio, Riviera, Sahara, Sheldon Adelson, The Strip, Tourism, Wall Street | Comments Off on Woe on the North Strip

“In the beginning was The Mob …”

Posted on March 30, 2011 by David McKee

Following several delays and even more advance hoopla, the Las Vegas Mob Experience is open. And it’s, as my wife said, “a mob scene” (pun intended). At last night’s grand gala, a PR guy was overheard saying that — for most media events — 20% of those people who RSVP actually show up. For the LVME, it was 50%. If you’ve been to Disneyland and waited to get on a ride, you’ll know what it was like queuing up for the Mob Experience.

Actually, if Walt Disney had ever decided to create a Mafia theme park, it’d be like the LVME, only bigger … and a lot better. Even by Vegas standards, what was unveiled at the Tropicana last night is cheesy. It’ll be popular, it’ll make a ton of money — but it’s 90% schlock. Its subtext is that The Mob were basically a decent bunch of family men (pun unintended) who broke a few laws on the side, “created” Las Vegas, rested on the seventh day and were generally preferable to the corporations who run the Strip nowadays. Well, OK, that last contention might have some validity. Given the choice between Moe Dalitz and Gary Loveman, for instance, there’s a lot of people in this town who’d rather work for Moe.

Not incidentally, I didn’t see any Dalitz-themed exhibits and that would be a major oversight for a supposedly Continue reading →

Posted in Current, Dining, Downtown, Entertainment, Harrah's, history, MGM Mirage, Movies, Oscar Goodman, The Mob, The Strip, Tourism, Transportation, TV | 3 Comments

New Jersey rides the Four Horsemen

Posted on March 30, 2011 by David McKee

… of online gambling. So writes IAM Corp. CEO Peter Karroll,  S&G‘s newest guest blogger. To wit:

Recently in New Jersey, Gov. Chris Christie vetoed the legalization of online gaming, pointing to the prospect of backroom gambling shops popping up all over the state, combined with undefined protection for problem gamblers. It appears Gov. Christie has not consulted with an online-gaming expert because if he did, he would understand that the customer doesn’t want to drive to a casino or backroom to play: He wants to sit on the couch in his pajamas, drinking a glass of wine, enjoying a few hours of poker or casino in the comfort of his own home. “Backroom gambling” is Prohibition Era language and it’s funny hearing it in 2011. Christie is not the only person who does not understand how the Internet works. The majority of casino operators seem to be mentally restricted by the invisible border of the State of New Jersey.

Question: Why have so few land-based casinos created online-gambling sites? For the life of me I can’t get an answer that makes any sense. With the exception of many United Kingdom betting shops and Harrah’s Entertainment in Las Vegas, there are very few Continue reading →

Posted in Atlantic City, Current, International, Internet gambling, Marketing, Problem gambling, Regulation | Comments Off on New Jersey rides the Four Horsemen

Quote of the Day

Posted on March 30, 2011 by David McKee

“When Wikipedia is kicking your ass factually, maybe you need to look at how you train your employees.” — Dr. David G. Schwartz, on the Las Vegas Mob Experience, now officially open (after many fits and starts) at the Tropicana.

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Quote of the Day

Posted on March 29, 2011 by David McKee

“I don’t take him seriously even as a guy who runs casinos.” — Bill Maher on the subject of Donald J. Trump, on tonight’s edition of Hardball.

Posted in Atlantic City, Donald Trump, Election, TV | Comments Off on Quote of the Day

Wynn makes the hit parade

Posted on March 28, 2011 by David McKee

For sanity’s sake, let’s turn from a buffoon (Donald Trump) to a serious individual. Namely, Steve Wynn, who’s been named to Barrons‘ list of the world’s 30 best CEOs. He’s up there surrounded by the likes of Warren Buffett, Jeff Bezos and Steve Jobs … and without another casino CEO anywhere in sight. I’ll bet Sheldon Adelson‘s minions are tiptoeing around their boss extra-quietly this week. At least Sheldon could derive solace from a “Buy” rating from Robin Farley, not one of Wall Street‘s Kool-Aid drinkers.

While one could cite Wynn’s prudence and fiscal conservatism even at the height of the Vegas bubble, Barrons focuses instead on Wynn Resorts‘ disproportionately strong performance in Macao, where it generated $893 million in Continue reading →

Posted in CityCenter, Current, Genting, International, Internet gambling, Macau, MGM Mirage, Regulation, Sheldon Adelson, Singapore, Steve Wynn, Wall Street | Comments Off on Wynn makes the hit parade

Crazy, party of one

Posted on March 28, 2011 by David McKee

It’s been years — if not decades — since Donald Trump was taken seriously. Why should his publicity-stunt “presidential campaign” be any different? If Winston Churchill had nothing to offer his countrymen but blood, toil, tears and sweet, Trump has naught but xenophobia, paranoia, racism and religious bigotry. More pertinently, Trump’s strenuous verbal shadow-boxing looks like a high-visibility diversion to distract the “family values” crowd from his ongoing involvement in — horrors! — the casino industry. (Simply accepting donations from Sheldon Adelson has proven fatal to congressional candidates in the Bible Belt.) If Trump actually takes his one-ring circus on the primary trail (and I’m certain he won’t), expect gaudy stock footage of Trump’s three (four, if you count extinct Trump World’s Fair) to be splashed across every attack ad aimed in his direction. In the meantime, I’m sure Trump’s doing a great job of ginning up ratings for his Sunday-night NBC-TV comedy show.

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Quote of the Day

Posted on March 27, 2011 by David McKee

“Complaining about high gasoline prices in a free-market economy is a bit like doing the proverbial at the wind.” — Richard Quest on CNN‘s Your Money, last Saturday.

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Sahara Sam: Will he or won’t he?

Posted on March 25, 2011 by David McKee

An MGM Resorts International press release hailing the new SBE/M life partnership holds out a slim reed of hope that predictions Sahara Hotel & Casino owner Sam Nazarian will redevelop the site are more than just additional vaporware. (The Sahara was “two years away” from redevelopment … four years ago. Search the Las Vegas Review-Journal archives if you wish to track the typhoon of hype that accompanied SBE’s early months at the Sahara. Nazarian was such a Chatty Cathy and raised such lofty expectations that disappointment was predestined.)

If you’re enrolled in Nazarian’s “Preferred Partners” or “Founder” or “VIP” loyalty programs, you now “have exclusive access, benefits and privileges that span each company’s portfolio of award-winning resort, hotel, casino, restaurant, spa and nightlife brands [and] enjoy benefits, rewards and privileged insider access to incomparable accommodations, restaurants, nightlife, shopping, shows, gaming and spas within 15 MGM Resorts destinations nationwide.”

It’s a two-way street, as you’ve noticed. The M life member pool can be flowed into the SBE body of hotels and clubs. Thus, in theory, Nazarian could raid MGM’s player base to monetize a re-do of the Sahara site. However … unless MGM CEO Jim Murren either has a secret codicil whereby MGM would be paid to manage “SLSahara” (let’s call it) or has the credit line and appetite for a joint venture at the north end of the Strip, I don’t see it happening. As for the players, once they’ve seen Paris-Las Vegas — from a comfy terrace at Bellagio, that is — how are you going to keep them down on the SLS farm? (Or rather, herd them back to the lonely North Strip?) And Murren is much too smart to let Sahara Sam Continue reading →

Posted in Alex Yemenidjian, Animals, CityCenter, Current, Florida, Harrah's, Marketing, MGM Mirage, Sahara, The Strip, Tourism | 1 Comment

Courting the curious

Posted on March 25, 2011 by David McKee

This is the fifth in a six-video series that The Cosmopolitan has been running on cable TV. But not on the usual casino-friendly channels like ESPN. No, the Cosmo has targeted the Sundance Channel and IFC for these spots. People who get up early to watch arcana like River Red or live in anticipation of the next Wes Anderson opus are definitely off the beaten path as go-to customers for casino resorts. So credit Cosmo for thinking differently. While Wynncore and CityCenter openly pine for the affluent set, Cosmo CEO John Unwin and his crew are positioning themselves for the haute-bourgeois niche, the upper middle class (or those of us who might like to indulge in an economic fantasy). It’s innovative and let’s hope it works … as it seems to be.

Posted in CityCenter, Cosmopolitan, Current, Dining, Election, Entertainment, Marketing, MGM Mirage, Steve Wynn, The Strip, TV | Comments Off on Courting the curious

Quote of the Day

Posted on March 25, 2011 by David McKee

“But when its control implants are damaged during a training experiment, the beast escapes to Puerto Vallarta, Mexico for a taste of sun, sand, bikini babes, jet-skiers, spring breakers and beyond.” — And that’s a problem because … ? If anybody sees Sharktopus, perhaps you could give him directions to Rehab.

On the subject of strange creatures … Continue reading →

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