Quote of the Day

Posted on July 25, 2010 by David McKee

“Today we are in a disaster because we didn’t do what Kenny Guinn had spent months researching and tried to pass. I remember he’d go into meetings with his clipboard saying ‘We’re going to have huge deficits if we don’t pass this’ and today we have a $2.5 billion deficit.” — Jan Jones, senior vice president of Harrah’s Entertainment, on the late Gov. Guinn and his futile attempt to pass a gross-receipts tax. Jones ran against Guinn in the 1998 gubernatorial race. (Guinn won.)

Posted in Economy, Harrah's, history, Politics | 1 Comment

Adelson fires Sands China CEO; Kenny Guinn, 1936-2010

Posted on July 23, 2010 by David McKee

It’s getting rather slippery on the tiled floors of Venelazzo and its Macao offshoots, what will the frequent bloodbaths that are becoming a hallmark of Sheldon Adelson‘s reign as creator and CEO of Las Vegas Sands. The victim sent over the Bridge of Sighs was Sands China CEO Steve Jacobs. His fated was as good as sealed when Adelson publicly rebuked him for suggesting that Sands China would be the vehicle for Adelson’s planned entry into Japan. (The Diet hasn’t approved casino gambling yet but Sheldon’s not one to let such small details trip up his plan for global domination.) Such a remark would be a nice way of juicing Sands China stock on the Hong Kong bourse but it also smacked of insubordination … and Adelson is never one to allow his underlings — except for court favorite and COO Michael A. Leven — to deviate from the party line.

Leven, better known as The $2 Million Man, now gets to earn his salary (higher than that of Harrah’s Entertainment CEO Gary Loveman and equal to that of MGM Resorts International CEO Jim Murren) by adding Jacobs’ duties to his existing portfolio while Adelson searches for a replacement. We won’t blame any blue-ribbon casino executives if they look upon a posting to Sands China as a mixed blessing.

“Adelson said this change to the management team would have no material impact on the company’s operations in Macau or its ability to complete the Sheraton/Shangri-La/Traders … development currently under construction there,” a dogal herald proclaimed from atop the Venelazzo Campanile. (OK, I totally made the heraldic scene up.) J.P. Morgan analysts agreed — up to a point. They expect construction to proceed smoothly but opined that “the stock will likely pull back on perceived continued management strife and the fact that most investors believe that Steve was doing a solid job in managing costs, growing mass and direct [VIP] share, and working on the redevelopment of sites 5 and 6.” As for Jacobs, expect him to crop up with one of Sands’ overseas competitors, whose executive ranks will soon be thickly stocked with Adelson castoffs.

From a metaphorical demise we move to real and very sad one. Former Nevada Gov. (and current MGM Resorts International board member) Kenny Guinn fell from the roof of his home and died yesterday, the cause yet unknown. In typically unassuming Guinn fashion, he was working cleaning his roof himself even though he could easily have afforded to farm out the task. An official motorcade will escort the ex-governor’s body through Las Vegas, with the funeral yet to be scheduled. The Las Vegas Sun has a large Guinn photo gallery as well as numerous tributes like these. (Coverage in The Newspaper That Must Not Be Cited is barely adequate by comparison.) He was that rare creature, a politician who always took the high road.

The man who literally wrote the book on Kenny Guinn, Jon Ralston, summarizes Guinn as Continue reading →

Posted in Current, Economy, Harrah's, history, International, Macau, MGM Mirage, Midnight Jim Gibbons, Monte Carlo fire, Politics, Regulation, Sheldon Adelson, Sports, Station Casinos, Taxes, The Strip, Wall Street | 3 Comments

Quote of the Day

Posted on July 23, 2010 by David McKee

“I think we can say we’re definitely not interested [in Station Casinos] … We’re not really aware The Rio is for sale.” — Penn National Gaming CFO William Clifford during what must have been a very confusing conference call. You think you can say you’re definitely not interested, sir? You’re not really aware? When do you plan to be sure you’re definitely uninterested and actually aware? Sheesh!

Posted in Current, Harrah's, Penn National, Station Casinos, Wall Street | 3 Comments

Chris Christie, rock star

Posted on July 22, 2010 by David McKee

New Jersey‘s outspoken governor lays down some righteous grooves at Meadowlands, including telling the horsey set what it needs to hear: “I don’t have the money to be subsidizing failure.”

Gov. Chris Christie on New Jersey horseracing: this industry has to be able to sustain itself

He has a rather romanticized notion of Nevada‘s regulatory capabilities, though, which haven’t been expanded since the opening of The Mirage:

Gov. Chris Christie calls for Atlantic City to become ‘Las Vegas East’

He also expounds on the white — or in this case, white and blue — elephant aptly termed Xanadu (evoking roller-skates, disco and Olivia Newton-John):

Gov. Chris Christie: I’m not ready to give up on Xanadu yet

And guess who owns Xanadu? Who would bet everything it has on a three-legged horse? Yes, the worst company in gaming: Continue reading →

Posted in Atlantic City, Colony Capital, Columbia Sussex, Current, Economy, Entertainment, Goldman Sachs, Horseracing, Movies, Politics, Racinos, Regulation, Sheldon Adelson, Station Casinos, Taxes, Technology, Tourism, Wall Street | 3 Comments

Quote of the Day

Posted on July 22, 2010 by David McKee

“The commission’s vision for revitalizing Atlantic City is encouraging. One thing we know is we can no longer use Band-Aid approaches in an attempt to heal a city suffering with a gaping wound.” — state Sen. Jeff Van Drew (D), reacting to Gov. Chris Christie‘s wide-reaching overhaul, a bombshell so big it actually pushed Steve Wynn‘s earnings forecast onto the back burner. Now if Christie could just lure Wynn back to Atlantic City …

Posted in Atlantic City, Current, Economy, Encore, Politics, Steve Wynn, Wall Street | Comments Off on Quote of the Day

The great Hilton showroom massacre (and other light news)

Posted on July 22, 2010 by David McKee

In true Colony Capital fashion, the Las Vegas Hilton continues to shed parts like a rattletrap car. Our LVA research team reports that Shimmer Cabaret fixtures Voices (“Starring the beautiful and talented Lani Misalucha“) and Sin City Bad Girls have been pink-slipped. Bad Girls, the best topless show on the Strip, runs through Sunday. Misfortune-beset Elvis Presley impersonator Trent Carlini has also been shown the door. This means that except for magician Steve Dacri, the LVH has no regular shows — just intermittent appearances by comedians Mark Curry and Andrew Dice Clay. I had the misfortune to experience the latter during his brief Riviera stint, the most egregiously phoned-in performance I’ve seen in Vegas.

Wayne Brady returns: The multifaceted entertainer has shaken up the format of his Making %@it Up at Venelazzo, dropping the song-and-dance elements as well as anything else of a scripted nature. His band has been reduced to two players, as well, and the set has been stripped down to a minimum. Audience-participation shtick is all front-loaded onto the first half of the show with the remainder given over to rapid-fire interactions between Brady and sidekick Jonathan Mangum. The piece de résistance is a set of celebrity-impersonation improvisations based on audience requests. On the night we attended, these included Creed grimacing through a ballad entitled “Goodbye, Gay Boys” and Tina Turner shaking it to “All Men Are Liars.” Vegas entertainers like to invoke the Rat Pack but Wayne Brady is one of the very, very few who could actually run with that crowd.

Watch out, Strip! “Legit” theatre is camping out on your back porch. Just ’round the corner from Trump International and Fashion Show Mall lies the Erotic Heritage Museum, which is sponsoring a series of full-length plays. First up is A Midsummer Night’s Dream, which prompted this passionately ambivalent response — from Yr. Humble Blogger. Another local critic complained of insufficient nudity, although I counted Continue reading →

Posted in CityCenter, Colony Capital, Current, Donald Trump, Entertainment, Environment, Marketing, MGM Mirage, Riviera, Sheldon Adelson, The Strip, Tourism | Comments Off on The great Hilton showroom massacre (and other light news)

Atlantic City: Christie’s coup d’etat

Posted on July 21, 2010 by David McKee

Last week, I tried to work up a piece entitled, “Atlantic City, R.I.P.” After all, the Boardwalk had just come off a catastrophic June, impacted by table games in Delaware. Since table games were in process of sweeping Pennsylvania, from west to east, the demise of Atlantic City as a major casino capitol seemed a mere formality. Still, it was too damn depressing an obituary to tackle.

However, neither I nor practically anybody else figured on the massive spanner flung into the works by Gov. Chris Christie (R-N.J.) late yesterday. In one of the most breathtaking examples of government intervention one can recall offhand, Christie proposes to Continue reading →

Posted in Atlantic City, Colony Capital, Columbia Sussex, Current, Donald Trump, Economy, Entertainment, Harrah's, history, Horseracing, International, Internet gambling, Macau, Marketing, MGM Mirage, Midnight Jim Gibbons, Penn National, Pennsylvania, Pinnacle Entertainment, Politics, Racinos, Regulation, Stanley Ho, Taxes, The Mob, Tourism | 6 Comments

Quote of the Day

Posted on July 20, 2010 by David McKee

“The numbers speak for themselves. We’re down over [25%] over the past two years. And I hear some people in town say, “Well, don’t panic” … well, when do we panic?” — state Sen. James Whelan, former mayor of Atlantic City, deploring the lack of an urgent response to the city’s declining fortunes.

Posted in Atlantic City, Current, Economy | Comments Off on Quote of the Day

Louisiana treads (oily) water

Posted on July 20, 2010 by David McKee

It’s a rare day when one can report that a casino market was down year/year but did better than expected. If you were looking for serious Deepwater Horizon spillover into June’s casino numbers, you’d be surprised. Statewide, casinos were -4.5% with Baton Rouge the hardest-hit market (-6%) and New Orleans (-2%) the least. That said, June was the weakest month of 2010 and the most anemic since November of last year, with a $185 million haul.

Amelia Belle actually posted a microscopic revenue increase whilst Pinnacle Entertainment‘s flagship L’Auberge du Lac sustained a mere 1% decline. For the first time this year, it outgrossed Harrah’s New Orleans (-5%, $25.5 million). Now that’s news.

Across Lake Charles, Isle of Capri Casinos‘ vessel is sinking fast, Continue reading →

Posted in Ameristar, Boyd Gaming, Current, Dining, Economy, Environment, Harrah's, Harry Reid, Louisiana, M Resort, MGM Mirage, Penn National, Pinnacle Entertainment, Politics, Racinos, Steve Wynn, The Strip, Wall Street | Comments Off on Louisiana treads (oily) water

What’s that smell at Red Rock?

Posted on July 20, 2010 by David McKee

No, it’s not the ethical stench of the Station Casinos‘ LBO/bankruptcy/reorganization process. It’s the hazmat situation brought on by the careless handling of chemicals. Chlorine was pumped into an acid tank, causing respiratory irritation, a few hospitalizations — a no doubt a couple of personal-injury lawsuits. Good going, Station.

Speaking of lawsuits, one just hit the Cosmopolitan. A handful of condo buyers allege that their units are being cannibalized for hotel rooms. Nothing doing, says Cosmo management.

Watch out, Macao. Better commissions for VIP junket operators are likely to result in an increase of Singapore visitation by travelers from China (who already comprise 17% of the Singaporean tourist base, if one includes Taiwan). Protestations by Las Vegas Sands to the contrary, it may indeed find itself siphoning off some its Macao business to ramp up Marina Bay Sands. In fact, a spokesman for the latter says, “With its growing middle class population, China is an attractive market for us. We consciously cater to the needs of Chinese guests.”That’s not an inherent policy contradiction because … Continue reading →

Posted in Cosmopolitan, Current, Environment, International, Macau, Marketing, Regulation, Sheldon Adelson, Singapore, Station Casinos, The Strip, Tilman Fertitta, Tourism | 1 Comment

Galaviz hearts Singapore — with caution

Posted on July 19, 2010 by David McKee

Analysts continue to do a 180 from their cautious outlook on Singapore five years ago. Among those raining plaudits on the early performance of the city-state’s two megaresorts is Jonathan Galaviz of Galaviz & Co. He estimates that Singapore will be a $2.5 billion market by the end of next year, with Marina Bay Sands (above) raking in $1.5 billion and the rest going to Resorts World Sentosa. Since those are projected gross revenues, it’s premature to say what how much of that will translate into profitability. (“A lot,” obviously.) Marina Bay gets Galaviz’s nod partly for its central location and also for superior accessibility.

In a research note, the analyst suggests taking a “cautious and prudent” tack toward estimates of a $4 billion/year market. He points to a real estate bubble in China that could easily collapse, Continue reading →

Posted in Current, Economy, Genting, International, Regulation, Sheldon Adelson, Singapore, Tourism, Wall Street | 1 Comment

Recovery? Not in the cards

Posted on July 19, 2010 by David McKee

Month after month of discouraging data from around the country makes it clear that any recovery in the casino industry is a long way off, perhaps years. Heck, just getting back to 2007 levels of prosperity doesn’t take into account the expansion that occurred in the intervening years. (And if you think Cosmopolitan is going to lift all boats, I’ll have whatever you’re drinking.)

Month after month, two disparate trends mark Las Vegas tourism and gambling data. More people are coming back but they’re spending quite a bit less. The CEOs of MGM Resorts International and Las Vegas Sands tell us that convention traffic on the way back up, with recovery projected for 2011. Since they’ve got access to data we don’t, let’s take them at their word. The bread-and-butter gambler, however, Continue reading →

Posted in CityCenter, Cosmopolitan, Current, Economy, Encore, Entertainment, Harrah's, Massachusetts, MGM Mirage, Morgans Hotel Group, Politics, Problem gambling, Racinos, Regulation, Sheldon Adelson, Steve Wynn, The Strip, Tourism, Tribal | 7 Comments

Next victim: Westin Casuarina?

Posted on July 19, 2010 by David McKee

Here’s a story that seems to have slipped past all of us. On March 31, the Westin Casuarina was placed on “Imminent Default” status by Fitch Ratings. The property was running at 61.5% occupany, with ADRs of $119 and 61.55 respectively, as of a year ago. Other Las Vegas Strip hotels have done far, far worse but they’re usually not laboring under the overweight jockey that is owner Columbia Sussex‘s portfolio of expiring loans. Part of the reason ColSux is trying to spin 14 hotels off to Clearwater Hotel Trust is that it had a $215 million loan due July 1, and a $1.1. billion one that comes due on Oct. 12 and has run out of extensions.

The latter was undertaken to finance a 14-hotel Wyndham acquisition during the easy-credit years of 2005-07. During ColSux’s stewardship, occupancy fell Continue reading →

Posted in Columbia Sussex, Economy, Harrah's, Lake Tahoe, The Strip, Tourism, Tropicana Entertainment, Wall Street | 3 Comments

Quote of the Day

Posted on July 19, 2010 by David McKee

“[Las Vegas Review-Journal Editor Thomas] Mitchell told me Friday that I was cherry-picking stories to paint a negative picture of a paper he insisted plays it ‘fair and down the middle.’ I asked the editor whether his reporters might be getting a mixed message — with his unusual practice of writing so pointedly for one candidate. He responded: ‘It’s a blog.’ Maybe that meant his words didn’t count the same, seeing as they appeared only online. Is that what he meant? I tried to ask, but Mitchell had had enough. He hung up.” — another demonstration of the boorish, close-minded attitude that has made Mitchell’s paper the worst major (?) metropolitan daily in the U.S.

Posted in Current, Election | 2 Comments

Veer-ing toward completion

Posted on July 16, 2010 by David McKee

With completion of Harmon Hotels having vanished into the mists of Time, the opening of Veer Towers effectively represents the end of CityCenter‘s rollout. (If and when the Harmon opens as something other than an office tower — one mooted use — it will be a sotto voce coda to what was meant to have been a grand urban symphony.) Closing on 17% of your units doesn’t sound all that impressive, until you consider how much more sluggishly other condo towers have been selling.

Now-MGM Resorts International expects to close on two-thirds of Veer’s inventory. Perhaps more interesting is that, despite talk in the real estate community of the Strip being a magnet for overseas condo customers, 65% of those buying into Veer are from Nevada or California. Chalk it — the foreign phantom, that is — up as one more truckload of the B.S. that fueled the condo bubble. The place looks great but, given the history of other CityCenter components, the jury is still out on functionality.

If it seems as though both Penn National Gaming and SL Green designed their Aqueduct Race Track bids to fail, there’s at least one reason why they may felt brinkmanship was in order. Some of you have probably been following the emerging saga of the Shinnecock tribe. The band isn’t Continue reading →

Posted in CityCenter, Current, Economy, Entertainment, Genting, MGM Mirage, New York, Penn National, Racinos, Regulation, Station Casinos, The Strip, Tribal | 2 Comments

Sigma Derby, anyone?; No welcome mat for Wynn

Posted on July 16, 2010 by David McKee

Now from an unpleasant topic to a pleasant one: The oddball casino games that we like to play. For instance, I know we have a few fans of Sigma Derby in the house and MGM Grand obliges us by keeping a frayed, old iteration of the game on its casino floor. But what about others? Desert Companion, the KNPR-FM magazine, wants to do a story about funky and hard-to-find games that nonetheless enjoy a cult following — or at least a few die-hard adherents.

I can’t offer any compensation other than an acknowledgment and free copies of the magazine, but if you have Vegas-located games that you’d like to see brought to wider attention, just weigh in on the “Comments” thread or e-mail me at [email protected]. I promise to go out and play on your behalf. (Think of it as creating our virtual version of the Pinball Hall of Fame, one of the greatest value propositions in all of Vegas.)

Wynn Beantown, Day 2: Maybe it’s the current heat in Massachusetts, but Gov. Deval Patrick (D) and some legislative allies think you can have racinos without slots. If that kind of goofy — or Continue reading →

Posted in Boulder Strip, Downtown, Entertainment, Horseracing, Massachusetts, Politics, Racinos, Regulation, Steve Wynn, Technology, The Strip | 5 Comments

CityCenter: Stop the madness!

Posted on July 16, 2010 by David McKee

Just when I thought I was out of the Sharron Angle vs. CityCenter insanity, they pull me back in. As I feared, the mythical “CityCenter bailout” has become a meme in that echo chamber of misinformation and urban mythology, cable news. On a previous occasion, Neil Cavuto got schooled by Anthony Curtis when he tried to make a bunch of half-assed gambling analogies involving the economy. This time, he’s done his homework … although the result is more like Dr. Cavuto, Therapist, trying to “talk down” a delusional patient for whom a “bailout” is whatever she chooses it to mean at any given moment.

The tragic irony (for Angle, anyway) is that she could marshal some serious arguments — if she actually knew what she was talking about. For instance, why does one intervene on behalf of CityCenter but not Continue reading →

Posted in CityCenter, Cosmopolitan, Current, Election, Fontainebleau, Harry Reid, MGM Mirage, Taxes, The Strip, TV, Wall Street | 9 Comments

Your questions, answered

Posted on July 16, 2010 by David McKee

Paul Shanahan writes (in part): I think Fontainebleau would have looked much better if it was around 500 feet high instead of being close to 730 feet. It looks bulky and just kind of bizarre down there at the north end of the Strip.

Agreed. And if you think F-bleau looks bad from the Strip, you should see it from several miles’ distance (assuming that you haven’t already) — it’s, if anything, even more obtrusive when viewed from as far away as Black Mountain in Henderson. Talk about sticking out like a sore thumb. It’s not just the height but the obesity of the F-bleau structure that’s problematic. Building all the way out to the “pedestrian realm” resulted in a squat, inelegant design, IMO, something for which no amount of height can compensate. But for the worst angle of Big Bleau, go to the Stirling Club. You step out onto the veranda, expecting an upscale vista to go with your surroundings — and find yourself staring at the butt end of the F-bleau garage. As fugly as Harrah’s Las Vegas and South Point are, that monstrosity may take the cake.

Ted Newkirk writes: Steve Wynn and Gary Loveman are aiming for their own areas. They are playing chess with the N.E. United States where they were originally from (does Loveman still live in Boston?).

Loveman still lives in the Wellesley area, so I wonder how he feels about Steve Wynn moving onto his front lawn, as it were. (“Favorite son” Sheldon Adelson‘s intentions have been long known.) Harrah’s Entertainment has not shown its hand Continue reading →

Posted in Architecture, Atlantic City, Current, Donald Trump, Environment, Fontainebleau, Harrah's, Massachusetts, Michael Gaughan, Mississippi, Ohio, Racinos, Sheldon Adelson, Steve Wynn, The Mob | 5 Comments

Wynn: I heart New York

Posted on July 15, 2010 by David McKee

As threatened, Steve Wynn is moving … but not to Macao. The mogul just dropped $24 million on a little pied-a-terre on Central Park South, in the city so nice they named it twice, New York, N.Y. (Corporate HQ, however, remains Las Vegas.)

In an amusing filip, Wynn’s new landlord is El Ad Properties, which is also his neighbor on the Strip. El Ad owns that Continue reading →

Posted in Current, Massachusetts, New York, Phil Ruffin, Plaza, Steve Wynn, TV | 2 Comments

Wynn Beantown?; Adelson likes it rough; “Chico Station,” etc.

Posted on July 15, 2010 by David McKee

“Two can play this game.” That’s the message coming from Steve Wynn. Since his former Philadelphia partners are now playing footsie with Harrah’s Entertainment, Wynn is turning his back on the City of Brotherly Love and shifting his gaze to Boston. He says that a Beantown project is the only thing that could take precedence over further development in Macao. That’s quite a compliment and a Wynn-quality property would be a considerable feather in Boston’s cap and economic sparkplug for the sputtering development where it would be situated.

Wynn’s biggest obstacle — and it’s a considerable hurdle — is Speaker of the House Robert DeLeo (left) who clearly intends to “juice in” Suffolk Downs with a racino deal. A de facto Wynn ally is POTUS pal Gov. Deval Patrick (could this be why the Wynner’s been tamping down the anti-Obama rhetoric of late?) who calls the inclusion of designated racinos a form of “no-bid” contract.

He’s got a good point there. Tracks like Suffolk Downs will be “gifted” with slots outright, whilst Wynn, Las Vegas Sands (staking out a spot in the ‘burbs), Mohegan Sun and others have to jump through hoops for Continue reading →

Posted in Ameristar, Boyd Gaming, Environment, George Maloof, Harrah's, Horseracing, Macau, Marketing, Massachusetts, Missouri, Pennsylvania, Politics, Racinos, Regulation, Sheldon Adelson, Singapore, Sports, Station Casinos, Steve Wynn, Technology, The Strip, Tribal, TV | Comments Off on Wynn Beantown?; Adelson likes it rough; “Chico Station,” etc.