Quote of the Day

“Clearly, there will be overbuilding and other costly mistakes if the boosterish mania for growth and promotion are not balanced by careful planning in the 1990s.” — historian Eugene Moehring, in his 1989 history of Las Vegas, Resort City in the Sunbelt. (A newer edition carries the narrative forward to the turn of the century.) In its epilogue, Moehring recites a sobering litany of infrastructural improvements that were planned circa 1988 but almost none of which came into being, save for the bankrupt, fragmentary Las Vegas Monorail.

Posted in Downtown, Economy, history, The Strip, Transportation | Comments Off on Quote of the Day

Honey, I forgot the license!

Despite a record of failure, failure and even greater failure, three cronies of Pennsylvania Gov. Ed Rendell still have a chance of holding onto the comatose “Wynnwoods” casino project in Philadelphia. Somehow, Wynnwoods (officially known as Philadelphia Entertainment & Development Partners) managed to limp along for 40 months or so with two of its three central players becoming licensed. Only Comcast Chairman Ed Snider has obtained the necessary approval. In the case of developer Ron Rubin, regulators better get a move on, as Rubin is pushing 80.

When Steve Wynn suddenly dumped his deal with the Snider/Rubin/Lewis Katz menage-a-trois, he cited “internal” issues and made it a priority to stay on good terms with Philly Mayor Michael Nutter. Considering that Wynn isn’t used to being chastised by mayors — however politely — for not doing his homework on a project, Wynn’s conciliatory approach to City Hall meant A) he wants to keep his hand in the game and B) something else really was afoot.

Turns out the sticking point was a pledge Snider/Rubin/Katz made Continue reading

Posted in Economy, Harrah's, Massachusetts, Pennsylvania, Politics, Regulation, Steve Wynn, Tribal, Wall Street | Comments Off on Honey, I forgot the license!

Quote of the Day

“Isn’t that what he always says?” — my wife, a fairly staunch Democrat, reacting to a news clip of President Obama saying, “We are headed in the right direction.”

Posted in Current, Economy | 4 Comments

“Project Linq”

I’m not sure anybody but Gary Loveman could come up with such a preposterous handle as “Project Linq” (alas, not “Linc,” as in Clarence Williams III on the Mod Squad, although that would be pretty cool) for Harrah’s Entertainment‘s street of shops, dead-ending in a Ferris wheel (the Strip view of which will be impaired by the Las Vegas Monorail). It’s said the proposed attraction will be built next year, although Loveman is careful to keep his predictions of Strip recovery less bullish than those of MGM Resorts International‘s Jim Murren.

The Clark County Commission recently scotched three arena proposals — including a Harrah’s joint venture. The CEO says Harrah’s is trying to find a new means of realizing the project, now that taxpayer subsidies aren’t gonna happen. That’s mighty white of him, considering Continue reading

Posted in Archon Corp., Current, Economy, Election, Harrah's, Marketing, Massachusetts, Politics, Sports, Taxes, The Strip, Tourism, Wall Street, World Series of Poker | 6 Comments

Quote of the Day

“Only in Massachusetts would we have a casino bill and try to build a politically correct casino. Have any of you people ever been to a casino, and [do you] understand what it takes for a casino to be successful and to draw people in?” — Massachusetts state Senate Minority Leader Richard R. Tisei, on a smoking ban imposed on Bay State casinos. Several other casino-killing amendments were voted down, including a ludicrous proposal that prospective casinos be approved by all towns and cities in a 15-mile radius. A 20% increase in the casino tax was also fought off.

Posted in Current, Massachusetts, Politics, Taxes | 3 Comments

Cosmo: Blueprint for failure?

Geez, I’ve not been feeling pessimistic about the Dec. 15 debut of the Cosmopolitan … until somebody forwarded me a copy of a Bill Lerner analysis of the property. Now I’m worried.

After walking the place, Lerner found it to be “very nice, typical of new gaming development globally these days from a fit-out perspective. The narrow 8+-acre parcel results in a vertical build, compacting the resort with a different feel given shorter distances between points. The re-engineered plan that moved gaming square footage to street level and retail to mezzanine level is sensible and will be relatively helpful for not-overly-relevant walk-in business. The room product is quite nice with boutique feel and unique with functional balconies.”

However, the Cosmo’s pricing strategy — i.e., in the Wynncore range — seems totally counterintuitive, given both Continue reading

Posted in Architecture, CityCenter, Cosmopolitan, Current, Economy, Marketing, MGM Mirage, Planet Hollywood, The Strip, Wall Street | 5 Comments

Quote of the Day

“Let’s face it … Macau is a small city and its government is more like the town council of any moderately large town in other parts of the world, so it is time to strip out all the hype and overblown stories of Macau being a world-class city, as a hub for MICE, or as a truly significant player as a portal between East and West; that is simply noise. Setting aside the casinos and resorts, much of Macau is a grimy, polluted, third-rate, poky, over-populated backwater, and a sense of realism must pervade the chief executive’s pronouncements and actions to improve Macau.” — Prof. Keith Morrison of the Macau University of Science and Technology.

Posted in Current, Election, International, Macau | Comments Off on Quote of the Day

Meltdown at Hooters

Too many Las Vegas shows are afflicted with a lack of spontaneity (the Celine Dion/Franco Dragone snoozer A New Day was the worst offender in my experience). No such worries where Hooters Casino Hotel headliner Todd Paul is concerned. Last night, Paul cut his set short after 45 minutes. Frustrated with a small, unresponsive crowd and with gags that didn’t “play,” Paul made no effort to hide his vexation and basically walked off in mid-show when an audience member refused to join him onstage.

Wow. You don’t see that every night on the Strip. Hooters has renovated a second-story ballroom into an “Iowa” showroom. Although the discreet entrance could easily be mistaken for Continue reading

Posted in Current, Entertainment, Harrah's, MGM Mirage, Regulation, The Strip | 1 Comment

“Lies, damned lies and statistics”

Former Nevada journalist Mark Twain popularized this quote, believed to have originated with Charles Wentworth Dilke. (I know: “Who?!?!?“) One rarely sees an object demonstration of what Dilke — and Twain — meant, but this gem literally fell into my “in” box this morning and was too amusing to keep to myself:

Posted in Current, Minnesota | 1 Comment

Cosmo sets a date

Dec. 15 is the Cosmopolitan‘s date with destiny. That’s when it begins rolling out its room inventory and casino product. That doesn’t sound very exciting, does it? It’s hard to get worked up about a place so grammatically challenged it invites us to come and “game” in its casino. It’s “gambling,” Deutsche Bank. Stop being so damn squeamish.

One of the nice things, though, about being owned by a bank is that even if you’re still $1.1 billion away from completion (after billions have already been sunk into the Cosmo), resort CEO John Unwin is still rolling in liquidity. Even though Deutsche Bank is “only” into the former Ian Bruce Eichner megaresort for $2.1 billion, the anemic performance of Continue reading

Posted in CityCenter, Cosmopolitan, Current, Economy, Entertainment, Genting, International, Sheldon Adelson, Singapore, The Strip, Tourism, Wall Street | 1 Comment

Aqueduct: Then there were three

As the contentious racino contract for Aqueduct Racetrack is rebid, the field has narrowed to three suitors, all of whom are in enviable cash positions. Penn National Gaming‘s bankroll has taken on Holy Grail status, Genting Bhd has a money-spinner in the form of Resorts World Sentosa and Hard Rock International is a fancy name for “Seminole Tribe,” which dominates the Florida casino market.

A discarded plan for revamping Aqueduct Racetrack, one of several to bite the dust.

Penn’s relative ubiquity in the Mid-Atlantic region will probably be used as a club for beating up on CEO Peter Carlino‘s bid. However, if Harrah’s Entertainment can have four casinos in Atlantic City, a racino in Pennsylvania, and possibly a racino and two management deals in Ohio, Penn’s smaller string of East Coast properties shouldn’t be held against it. It’s also (still) the only track operator in the hunt, experience which ought to count for something.

The Seminoles are under a regulatory cloud at the moment (and could, worst-case scenario,  Continue reading

Posted in Atlantic City, California, Columbia Sussex, Cordish Co., Current, Election, Florida, Genting, Harrah's, history, Lake Tahoe, Maryland, Massachusetts, New York, Ohio, Penn National, Pennsylvania, Politics, Problem gambling, Racinos, Regulation, Reno, Taxes, Tribal | 1 Comment

Brad Garrett: Enter at your own risk; Bargains & magnanimity

First, the good news. After going null for two with Paul Rodriguez (PR nightmare) and Wayne Newton (artistic disaster), the Tropicana Las Vegas appears to have swatted an 0-2 pitch into the bleachers. Brad Garrett‘s eponymous comedy club is a hit, a palpable hit — as Shakespeare‘s Osric would say. Garrett works the room gregariously beforehand and the audience (at least last night’s) comes primed for a good time. Warm-up is provided by a singer/pianist who does spirited Billy Joel covers and a better-than-average Frank Sinatra impersonation. (Matt Goss could take pointers from him.)

You might say Garrett is doing turnaway business, save for the fact that nobody’s being turned away. Last night’s show was grossly Continue reading

Posted in Alex Yemenidjian, Architecture, Current, Detroit, Economy, Entertainment, Marketing, Movies, Regulation, Reno, The Strip, Tourism, Wayne F. Newton | 1 Comment

Quote of the Day

“‘Champagne wishes and caviar dreams’: Sounds kind of faggy, don’t you think?” — Brad Garrett, at the Tropicana Las Vegas last night, in reference to local blogger Robin Leach (who was in the audience).

Posted in Alex Yemenidjian, Current, Entertainment, The Strip, TV | Comments Off on Quote of the Day

Dick Cheney, casino headliner

It’s no joke. The ex-veep is part of a new entertainment regime at the Atlantic City Hilton. After nearly mismanaging the property into extinction, owner Colony Capital has given President Michael Frawley $20 million, which Frawley’s plowing into a new Kerry Simon restaurant, fewer — but newer — slots, a “daylife” area and, yes, barnstorming old politicians (Bill Clinton is also among those announced).

Given how much money the A.C. Hilton continues to lose, Colony may have waited too long to rejuvenate what had become a grind joint. However, if the old gal goes down it won’t be without a fight. S&G salutes Colony and Frawley for doing right by her.

Posted in Atlantic City, Colony Capital, Dining, Economy, Entertainment, Marketing, Politics | 5 Comments

Penn’s door prize: toxic waste!

Penn National Gaming got a little something extra when it bought an old General Motors site for its Columbus, Ohio casino: 81 sites’ worth of toxic waste, so much sludge it takes 3,000 pages to catalog. Penn didn’t have to — pardon the pun — come clean about this, but it did.

Now Penn faces the not-inconsiderable task of Continue reading

Posted in Colony Capital, Current, Detroit, Election, Entertainment, Environment, Harrah's, Massachusetts, MGM Mirage, Ohio, Penn National, Politics, Racinos, Regulation, Sahara, Technology, The Strip, Tribal, TV | 3 Comments

Quote of the Day

“You say you’re honoring the chips? I say honor the employees.” — unidentified, unemployed President Casino worker, one of several accusing Pinnacle Entertainment of leaving them high and dry. Pinnacle has published a detailed rebuttal of the workers’ accusations.

Posted in Economy, Missouri, Pinnacle Entertainment, Regulation | Comments Off on Quote of the Day

The casino Angle

Nevada senatorial aspirant Sharron Angle got off to an odd start a few weeks back by warning balefully of “unwarranted influence” from the casino industry. (Which is, after all, one of the Silver State’s two primary sources of revenue.) Then she literally said it’s “not my job” to bring employment back. See ya!

However, this didn’t prevent Ms. Angle from shedding a few crocodile tears for those casinos whose money is too Continue reading

Posted in Current, Economy, Election, Harry Reid, Politics, Sports, Station Casinos, Taxes, The Strip | 6 Comments

Still catching up in Margaritaville

Eight days of vacation have left me deep in the hole, research-wise, so I hope you’ll forgive the slender output of recent days whilst I plough through dozens — if not a hundred or more — of unread news stories, analyst reports, etc. In the meantime …

… the tragicomic fable of Harrah’s Margaritaville continues, with scant hope Continue reading

Posted in Current, Economy, Harrah's, Mississippi, Sheldon Adelson, The Strip, Wall Street | Comments Off on Still catching up in Margaritaville

Quote of the Day

“People ask me: What are you going to do to develop jobs in our state? Well that’s not my job as a U.S. senator, to bring industry to this state. That’s the lieutenant governor’s job. That’s your state senators and assemblyman’s job. That’s your secretary of state’s job, to make a climate in this state that says, ‘Y’all come.'” — U.S. senate candidate Sharron Angle, out on the hustings in Nevada.

Posted in Economy, Election | 4 Comments

That giant flushing sound …

… you hear coming from the offices of Texas Pacific Group is a 46% writedown of its equity stake in Harrah’s Entertainment. As detailed in the Financial Times (registration req’d), $1.4 billion has turned into $759 million at the stroke of a pen. Which is another way of saying all those Harrah’s shares for which TPG paid $90 apiece have lost roughly half their value.

Of course, it’s no sweat for TPG. It’s not CEO David Bonderman‘s money, it’s other people’s diñero. (Besides, the boorish Bonderman‘s busy fighting alongside co-bungler Leon Black of Apollo Management to keep his tax bill down.) While Harrah’s CEO Gary Loveman has been coyly hinting at Continue reading

Posted in Current, Economy, Harrah's, James Packer, TV, Wall Street | 1 Comment