Rio: The final frontier?

Although I was hoping to keep this under wraps a few more days, reader Jeff_in_OKC connected all the dots this afternoon, so I’ll have to scoop myself. Here goes …

At last week’s annual Star Trek Convention, the program contained a full-page announcement that next year the STC is leaving the Las Vegas Hilton and engaging its warp drive all the way over to The Rio. However, the casino’s media page has nothing on the subject. A Google News search for “star trek convention rio” produced all of nothing, as did “star trek convention las vegas rio.” Star Trek blogs were of little help. Two calls to Harrah’s Entertainment and one to convention producer Creation Entertainment have also proven fruitless to date.

So let me float this theory: Continue reading

Posted in Colony Capital, Current, Economy, Election, Entertainment, Harrah's, The Strip, World Series of Poker | 8 Comments

New shakeup at Melco; Adelson goes tropical

Those of you for whom Melco Crown Entertainment has been a bumpy ride are about to experience additional turbulence. CFO Simon Dewhurst has stepped down and MPEL board has — rather late in the day — decided “to find a CFO with more of a gaming operating background (versus Mr. Dewhurst’s capital markets background, which may be less relevant to a company with less development related financing needs),” according to a J.P. Morgan investor alert.

It’s part of a bigger “management churn” at MPEL, which is reorganizing in a more vertically integrated manner, instead of stovepiping each of its properties. For instance, Altira President Ted Chan is now co-COO, responsible for gaming. He’ll be splitting duties with former City of Dreams (above) consultant Nick Naples, having defected from all-but-defunct Studio City. City of Dreams President Greg Hawkins is out, period, and Melco is going to scour the casino industry for a new CFO. (Gentlemen, please update your resumes.) On the surface, all these moves look like sensible ones, so let’s hope they pan out.

Elsewhere on Macao, the opening date for Venetian Oriental (aka Sites 5 and 6) on the Cotai Strip™ has been Continue reading

Posted in Architecture, Current, International, James Packer, Lawrence Ho, Macau, Melco Crown Entertainment, Sheldon Adelson, Singapore, Wall Street | 3 Comments

Quote of the Day

“Blogging is tedious and dumb, and leads to fully formed ideas.” — from the new mock-trailer, Twit Network.

Posted in Current, Technology | 1 Comment

The Summer of Love(man)

It may be hard to believe in retrospect, but at the time of Harrah’s Entertainment‘s LBO, some analysts thought it would be partly amortized by selling off the company’s regional properties. That prompted me to write something to the effect that it would be like “saving” a tree by severing its roots. Harrah’s has not only not pulled back from its Mid-America base, it continues to expand thereupon.

Today comes word that a casino-management deal with Dan Gilbert‘s Rock Ventures has been signed. This would put Harrah’s at the helm of casinos in both Cincinnati and Cleveland, at the price of a “significant” (but unquantified) monetary investment. Or Harrah’s equity stake may be thriftily achieved by throwing its Thisteldown Racetrack into the deal in lieu of cash.

A significant redesign of Gilbert’s original concept for Cincy (above) may also be on the drawing boards, metaphorically speaking. It’s speculated that the Caesars and/or Harrah’s or Horseshoe brand will be emblazoned upon the finished product.

They darn well oughta be: Those are strong brands and Continue reading

Posted in Atlantic City, Australia, Current, Detroit, Dining, Economy, Entertainment, Harrah's, history, Horseracing, Kansas, Marketing, Ohio, Racinos, Regulation, Station Casinos, Taxes, Tourism, Tribal, Wall Street | 2 Comments

12 best things about the Station bankruptcy auction

1. Don’t have to keep “OpCo,” “PropCo” and “LandCo” straight anymore.

2. No casinos placed in receivership or shut down.

3. No more having to spell-check whether it’s Judge “Greg” or “Gregg” Zive. (It’s the latter, in case you were wondering.)

4. Nobody has to rebrand Texas Station and Santa Fe Station “Texas Town” and “Santa Fe Coast” or whatever.

5. A windfall for an army of law firms ($18 million in billings and counting). It’s good to see somebody prospering in this economy.

6. No need to fret about the anti-trust implications Continue reading

Posted in Boyd Gaming, Colony Capital, Current, Station Casinos, Taxes, The Strip, Tourism | 4 Comments

Sign of the Times

Visit msnbc.com for breaking news, world news, and news about the economy

An indescribable scene in Atlanta — must-viewing for casino executives who think recovery is just around the corner.

Posted in Current, Economy | 1 Comment

Massachusetts: On and On and On

Oy vey!

Posted in Current, Economy, Massachusetts, Politics, Taxes | Comments Off on Massachusetts: On and On and On

Underwater at the Westin

If you’re having to go hat in hand to the bank to ask for a renegotiated home loan, take comfort in the thought that you’re hardly alone. Even plutocrats like Columbia Sussex CEO William J. Yung are having to plead for new loan terms, lest an asset like the Westin Casuarina fall into receivership (second item). Then again, if you’re in the market for a bargain, the WesCas’s 2009 cash flow of $7.9 million implies a resale value of anywhere from $55 to $79 million (or 7-10X EBITDA). The hotel-casino is encumbered to the tune of $150 million (19X EBITDA) and four months in arrears on its mortgage. Considering that Yung is offloading hotels at fire-sale prices, it wouldn’t hurt Harrah’s Entertainment, Boyd Gaming or perhaps even reconstituted Station Casinos to pitch him a lowball offer.

Strippers in your pocket. If you don’t feel like carrying a bulky text — or an e-book on your iPad — to a strip club, take heart. Arnold Snyder‘s Topless Vegas is now available in handy pocket-sized format. It’s definitely a more user-friendly version, as you navigate your way from one “gentlemens’ club” to the next. Even if shipping is included, you’re getting the skinny on eight nudie clubs and 20 topless bars at a price of $0.40 cents per titty bar. Besides, at this size, you only need one hand to read it.

Posted in Boyd Gaming, Columbia Sussex, Current, Economy, Entertainment, Harrah's, Station Casinos, The Strip, Wall Street | 2 Comments

Ameristar up for grabs

Having been in “stay the course” mode ever since the death of company founder Craig H. Neilsen, locals giant Ameristar Casinos is putting itself on the block. According to the New York Post, the company has hired an investment bank to explore a potential sale. J.P. Morgan analyst Joseph Greff, in an investor bulletin, notes that Ameristar “already has among the highest property level EBITDA margins in the industry and runs a tight ship,” leaving little room for improvement beyond removing duplications of effort at the corporate level.

Greff’s first thought as to a potential acquirer was the same as mine: Boyd Gaming. Its run at Station Casinos having proven futile, Boyd’s got a line of credit burning a hole in its pocket — more than enough borrowing capacity to purchase both the MGM Resorts International-owned half of Borgata and still have some “mad money” left over. True, Boyd ventured into the Kansas City market a long time and failed ignominiously. However, Ameristar’s K.C. riverboat is the top performer in the market and its sister vessel in St. Charles does pretty impressive numbers, too. Boyd would gain a valuable hedge against vagaries in the Las Vegas locals market. Because of the strong performance of most of Ameristar’s Midwestern properties, the purchase would quickly pay for itself.

Penn National Gaming, Pinnacle Entertainment and (perhaps) Harrah’s Entertainment can be safely ruled out because Continue reading

Posted in Ameristar, Atlantic City, Boyd Gaming, Current, Harrah's, Illinois, Indiana, Iowa, MGM Mirage, Missouri, Penn National, Pinnacle Entertainment, Regulation, Station Casinos, Wall Street | 1 Comment

An inspector calls

“You’re the hub right now, kid.” Thus spake a Los Angeles-based private investigator who’s hot on the trail of some possible malfeasance in the real estate world. It involves a couple of characters who were persons of interest in a caper I covered four years ago for the Las Vegas Business Press— not to be confused with its castrated, present-day counterpart  — and had completely forgotten until today. It involved an attempt to raise money over the Internet to buy the Sahara (no, seriously) and turned out to be masterminded by two-time loser Ronald J. Goldberg from a prison cell in New York. I even heard from a woman who claimed to have set up conference calls between Goldberg and potential dupes investors.

Goldberg appears to have fallen off the map, but some of the other players in the Great Sahara Boondoggle of ’06 have come back under investigative scrutiny. One is alleged Sahara Towers figurehead Clifford Perlman, who once got run out of Continue reading

Posted in Donald Trump, MGM Mirage, Regulation, Sahara, The Mob, The Strip | 2 Comments

Atlantic City: It could be worse

Considering that table games were up and running in Delaware and gradually rolling out in Pennsylvania, it comes as a pleasant surprise to see that Atlantic City was only down 5% in July. Frankly, I was expecting much worse, especially after a massive power outage hit two casinos. As in much, much worse. As in, “Would the last person leaving Atlantic City please turn out the lights?” Since some of the 2008-09 comparisons for July and August were apocalyptic, single-digit declines in 2010 may even be construed as a form of moral victory. The $364 million haul was the year’s best and would have sufficed for third-best last year.

Actually, compared to some really dreadful table-game numbers in June (-16%), last month’s -4% gross revenue decline is not so bad. The casinos played lucky, too, as drop was -6%. Looser slots, however, couldn’t stem lower play and even lower revenues (-5%). S&G wasn’t the only one pleasantly surprised by a July that was merely disappointing rather than outright awful. J.P. Morgan expected a 10% revenue fall at Borgata but that resort was off last year’s pace only by -1%. A bad month at the tables (-13%) was ameliorated by a really good one at the slots (+6%). You could tally the revenues of the potentially confiscated Atlantic City Hilton (+2%; $19 million), Resorts International (-19%, $16 million), Trump Plaza (-17%, $15 million), and Biggest Loser Trump Marina (-13%, $14 million) and come out only $100K ahead of Borgata solamente.

The good news is that Continue reading

Posted in Atlantic City, Boyd Gaming, Carl Icahn, Colony Capital, Columbia Sussex, Current, Donald Trump, Economy, Entertainment, Harrah's, Horseracing, Macau, Marketing, MGM Mirage, New York, Pansy Ho, Pennsylvania, Politics, Racinos, Regulation, Technology, Tourism, Tropicana Entertainment, Wall Street | 4 Comments

Quote of the Day

Since I am the king of the pie in the sky ideas. I have another brilliant one for you. Set up an interview with Anthony Santo, the new face of the Tamares [Group] upgrades, and you and I can record it for our first podcast. Also, we can do the first walk through and report on the Western Casino that anyone can remember. I have it in my mind that the Western can achieve Trailer Station type status, if we promote it properly.” — reader Jeff_in_OKC, waxing whimsical to take our minds — and his — off the intemperate weather cloaking the U.S. Incidentally, word through the grapevine confirms S&G’s hunch that obtaining the well-regarded Santo is an enormous coup for Tamares.

Posted in Downtown, Tamares Group | 3 Comments

Wasted … and the 77% solution

Not even the cachet of Carey Hart and occasional appearances by Pink were enough to keep Wasted Space going. The Hard Rock Hotel is calling it quits on the club, bumping it in favor of a race and sports book. Not coincidentally, the HRH had just inked a pact with Cantor Gaming to bring the latter’s mobile-gambling application to the Hard Rock for sports-wagering purposes. Even less coincidentally, CEO Joseph Magliarditi came to the Hard Rock from M Resort, which was Cantor’s second client in Las Vegas (the first being Las Vegas Sands). Incidentally, the Palms was tinkering with a rival application made by a small company but it never seems to have gotten off the ground.

Although handheld gambling has been a dud, when it comes to supplanting slot and table-game play, it’s been a home run with sports bettors. I’m sure Morgans Hotel Group and its co-owners will also be able to “own” more of the sports book revenue, even after Cantor takes it cut, than they were hosting Wasted Space. Combine this with a rumor that the Hard Rock’s poker room is downsizing and we could be looking at a fundamental restructuring of the Hard Rock’s business model. Given the property’s struggles in the post-Peter Morton era, it’s an idea that’s past due.

And I’m Santa Claus. What a bunch of cutups they are at Harrah’s Entertainment. We’re asked to believe that a $52 million writeoff of real estate underlying the abortive Foxwoods Philadelphia project is simply an “accounting determination” that reduces the value of the land to $15 million (a 77% depreciation). Since the sine qua non of any Harrah’s involvement with the revival of Foxwoods Philly was a land-for-equity swap and a “term sheet” for a new development deal is overdue, it’s difficult to believe Harrah’s protestations that nothing is in the works … unless CEO Gary Loveman thinks the whole Ed Snider-led deal is FUBAR, and is getting ready to try and unload the land at — pardon the pun — dirt-cheap prices.

Don’t tell Sharron Angle but not only has CityCenter failed to move the needle on Las Vegas visitation even remotely close to MGM Resorts International CEO Jim Murren‘s downsized prediction of 7%, Continue reading

Posted in Alex Yemenidjian, Architecture, CityCenter, Current, Economy, Entertainment, George Maloof, Harrah's, M Resort, Marketing, MGM Mirage, Midnight Jim Gibbons, Morgans Hotel Group, Pennsylvania, Riviera, Sports, Steve Wynn, Taxes, Technology, The Strip, Tourism, Transportation | 5 Comments

America’s growth market is … Detroit?!?!

Despite being in one of the two hardest-hit regions of America, Detroit has posted casino-revenue gains in five of the last seven months. It’s done this without significant new casino product (unlike Missouri, which is -4% once River City is subtracted) and without new games (unlike Pennsylvania). Given not only the Great Recession but the high unemployment in Michigan, Motown’s three casinos are obviously doing something right.

Well … except maybe Greektown (above), where revenue continues to slip ($30.5 million or -3.5%) as the owners struggle to find new management after a group of former Station Casinos executives (aka Warner Gaming) left G’town in the lurch. Pink-slipping Fine Point Group, which had overseen an impressive turnaround, is really coming back to haunt post-bankruptcy Greektown. MGM Grand Detroit (+5.5%, $50 million*) continues to be the big dog, exceeding analyst projections, while MotorCity is in distant second place at $38 million (but also 5.5% up from last year). When one looks at how anemic the Illinois market has become, the continued reliability of Detroit is one of the best stories in gaming today.

* — Cash flow at MGM Grand Macau was a comparatively puny $19 million for the entire second quarter. It’s not an apples-to-apples comparison but it makes Detroit’s performance no less impressive.

Signs of life are springing up in the vicinity of LVA HQ, the first in Continue reading

Posted in Current, Detroit, Economy, Macau, MGM Mirage, Missouri, Pennsylvania, Station Casinos | 3 Comments

Quote of the Day

“States talk openly of poaching gamblers from their neighboring states and view keeping their own residents’ money within state borders as something akin to a religious duty.”  — Wayne Parry & Stephen Singer of The Associated Press on casino-market cannibalization in the Northeast.

Posted in Current, Economy | 1 Comment

Case Bets: New Jersey; A lucky guy; Genting’s good fortune

Garden State Gov. Chris Christie (R-N.J.) may have excluded sports betting as a new revenue source for the state’s besieged casino industry. As expected, state Sen. Raymond Lesniak (D, left) tuned the governor out and continues to pursue legalization of game wagers, federal law notwithstanding. Companies are lining up pro (Trump Entertainment Resorts) and con (Harrah’s Entertainment), although the entire discussion appears academic at this point. New Jersey has a long and tortured history on this issue, and Lesniak’s not letting go of his attempt to reverse a mistake from 20 years ago without a fight to the finish.

Never assume. Why? Because, for one, it means having to admit you erroneously believed the Atlantic City Hilton had shed CEO Nicholas Ribis. He is, after all, running the repossessed Resorts Atlantic City on behalf of its debtholders and aims to buy it himself. That’s somewhat analogous to, oh, Anthony Santo not only directing casino operations at the Vegas Club for Tamares Gaming but managing Boyd Gaming‘s Main Street Station simultaneously.

Ribis, who clearly leads a charmed life, was recently posturing onstage alongside former president — and current A.C. Hilton headliner Continue reading

Posted in Atlantic City, Boyd Gaming, Colony Capital, Cordish Co., Current, Donald Trump, Downtown, Economy, Genting, Harrah's, International, Macau, New York, Politics, Racinos, Regulation, Singapore, Sports, Tamares Group, Tourism | 1 Comment

Rising Sun; At Harry’s mercy

It’s not news that Japan has been mulling casino gambling for the umpteenth time. What is news is that the Diet — or rather, the General Assembly of International Sightseeing Industry Development Diet Member Association — has gotten very serious about the subject. The association has released a 68-article “Casino Act” which would create two experimental casinos, with as many as eight more to follow.

Early favorites for the first pair of casinos are — no surprise here — Continue reading

Posted in Current, Election, Harrah's, Harry Reid, International, Internet gambling, MGM Mirage, Minnesota, Politics, Regulation, Sheldon Adelson, Steve Wynn, The Strip, Tribal | 3 Comments

Quote of the Day

Since we didn’t have one yesterday, today there are two, in the form of a de facto debate:

“There is this odd mismatch between countries like Germany that you mention, and Britain, where we have an established church. And yet in America, where there’s absolutely no established church and a very strong constitutional prohibition against an established church, it’s the most religious country this side of the Middle East.” — biologist and atheist Richard Dawkins, interviewed during a recent appearance at South Point. (Amazingly, local news accounts failed to mention where the event took place.)

“And that’s really what’s happening in this country is a violation of the First Commandment. We have become a country entrenched in idolatry, and that idolatry is the dependency upon our government. We’re supposed to depend upon God for our protection and our provision and for our daily bread, not for our government.” — Nevada senate candidate and Christian Reconstructionist Sharron Angle, interviewed by TruNews Christian Radio. (She also recently told a Christian PAC she would “favor laws that restrict the production, sale, and distribution of pornography.” Enjoy those “Girls Gone Wild” videos while you still can!)

Posted in Current, Election, Michael Gaughan | 5 Comments

The great train robbery


Take that, Boyd Gaming, ya varmints!

To paraphrase vile Remington Products CEO Victor Kiam (1926-2001), the Fertitta Brothers liked Station Casinos so much they stole the company. Not only did three Fertitta siblings and an in-law cash out during the LBO to the tune of $495 million, they’ve been able to blow off literally billions of debt, gotten some of their scorched creditors to pony up even more cash, repurchased a gaggle of Station assets at a bargain price and continue to lead gullible Colony Capital CEO Tom Barrack around by the nose (assuming they can pry him away from the collected works of Stephenie Meyer).

Today’s Fertitta victory in bankruptcy court was a predestined conclusion, not least because Station had Judge Gregg Zive eating out of the palm of its hand from the start. Once Boyd Gaming was out of the running, that left a half-dozen rival bidders, all of whom reportedly wanted to cherry-pick from the 11 casinos, tribal management contracts and sundry real estate that were on the auction block. Considering that no “trophy assets” were up for grabs, one can’t blame the Unsuccessful Six for not wanting the dog’s breakfast that remained, mostly little grind joints.

It’s still conceivable that Penn National Gaming might Continue reading

Posted in Boyd Gaming, Current, Penn National, Station Casinos, Wall Street | 7 Comments

Chrome Dome

Last weekend, as I ploughed into a pile of analyst reports, court filings, etc., I came across a Clark County Commission planning report on Christopher Milam, Paul & Sue Lowden‘s proposed Silver State Arena. As you can see, it would be an externally attractive facility and an exponential improvement on the various eyesores Milam has pitched for the old Wet ‘n Wild site in the past.

However, as I read through the document, all I could think was, “This is going to raise hell in the neighborhood” and so it has. Under withering fire, Milam has momentarily rescinded his application, although one wonders if it could ever be amended sufficiently to be A) amenable to nearby residents, B) palatable to subsidy-wary commissioners and C) realistic.

Not everything in Milam’s submission is pie-in-the-sky: At 20,014 seats, Silver State Arena would be one of the larger NBA venues (if — a huge “if” — Milam could land a team). Only the Palace at Auburn Hills, immortalized by a certain Ron Artest Continue reading

Posted in Archon Corp., Baseball, Current, Economy, LVCVA, MGM Mirage, Riviera, Sahara, Sports, Taxes, The Strip, Transportation, TV | 8 Comments