“Run away! Run away!”

Posted on May 18, 2010 by David McKee

“We know there’s going to be drug sales and prostitution and that you can’t stop all of it,” is the rallying cry of the Nevada Gaming Control Board‘s top enforcer, Jerry Markling, basically running up the white flag even before pool season has kicked into high gear (giving one optimal chances of observing that migratory fauna, the wild douchebag, in his natural habitat). If the powder-puff regulatory approach outlined by Markling and his bosses was working as well as they say, why then do so many problems — as portrayed in Liz Benston‘s story — persist? The Sun‘s piece paints the NGCB as Continue reading →

Posted in Entertainment, Missouri, Pinnacle Entertainment, Regulation, The Strip | 1 Comment

“Trailer Stations” a-comin’!

Posted on May 18, 2010 by David McKee

If you’ve ever wanted to play in one of those eight-hour, slots-in-a-trailer casinos that United Coin sets up to help Company X preserve the gambling entitlement underlying a closed building or a vacant piece of land, here’s your chance. Three “Trailer Stations” (a Howard Stutz coinage) will be held this summer. One June 8, if you can find the former Skinny Dugan’s Pub, out on 4127 W. Charleston Blvd., United Coin will be there, slots in tow. Then 15-16 days later, depending on the approval of the City of Las Vegas, United will roll its slot trailer over to the remnants of Moulin Rouge, where hope springs eternal. Then, in late July, United is scheduled to drop anchor at the former site of the Queen of Hearts motel, where once stood the seediest and most unlamented slot route in downtown.

Plan those Vegas vacations now!

Posted in Downtown, Slot routes, Tourism | 2 Comments

Quote of the Day

Posted on May 17, 2010 by David McKee

“I recall a conversation with a prominent gaming executive when he was asked to support [then-Rep. Jim] Gibbons four years ago. He wondered why the state’s power elite would anoint someone who was quietly embarrassing in D.C. amid 435 members and give him the chance to be loudly embarrassing in the state’s most important and high-profile job. Good question.” — Jon Ralston on Midnight Jim’s hopeless deficit in the polls (not likely to be helped by the revelation that Gibbons left major policy decisions to a top campaign donor), making him a couple of weeks shy of becoming a lame-duck governor.

Posted in Current, Election, Midnight Jim Gibbons, Politics | Comments Off on Quote of the Day

Andy Rooney is an @$$

Posted on May 17, 2010 by David McKee

Actually, I had a more sphincter-specific adjective in mind. I tuned the nasty old fart out years ago, when he approving noted the spread of AIDS. The CBS-TV in-house crackpot hasn’t stopped rejoicing in human misery since then. Here are some gems from last Sunday’s “You kids get off of my lawn” jeremiad:

“I have good news for you tonight. According to an American Gaming Association report, revenue from casino gambling fell by almost two billion dollars last year. A lot of people are out of work and it turns out that when people are unemployed, they gamble less. You’d think they might gamble more but they don’t. There’s some good things about everything, I guess …

“There’s only so much money in the world and if it’s lost at a gambling table, it’s money that isn’t spent on things America makes. I mean who’s best for this country — a machinist at an automobile plant in Detroit or a blackjack dealer in Las Vegas?”

They’re either of them better for this country than you, Mr. Rooney.

Posted in Current, Detroit, Economy, The Strip, TV | 2 Comments

Trop tour!

Posted on May 17, 2010 by David McKee

I’ll be spending late Wednesday with a hardhat atop my noggin, as I get a tour of the ongoing makeover at the Tropicana Las Vegas. The two big, outdoor signs have already been replaced, the marquee (left) is getting a new look and a sports book is going into one of the low-rise motel wings. (Anything would be an improvement on the seedy cubbyhole that was the Trop’s old excuse for a sports book.) The Tiffany Theater is enjoying a reprieve whilst Paul Rodriguez plays an extended engagement there … and not a moment too soon, as the Trop only has the de rigeur “naughty hypnosis” show in the way of entertainment now.

Expect a fuller report and — with luck — some photos later this week.

Posted in Alex Yemenidjian, Current, Entertainment, The Strip, Tropicana Entertainment | 4 Comments

Writing today

Posted on May 17, 2010 by David McKee

… on mostly non-S&G projects, so blogorrhea is at a minimum, alas. We’re also trying to work out the kinks in our system that would enable us to get that week-old Atlantic City piece out of the right-hand box without having to delete it altogether, among other technical grumbles.

However, I do think there is a serious new contender for the Best Bloody Mary in Vegas, although in this case it would be the “Bloody Harry” at Nove. It’s served with a Slim Jim, a piece of bacon and a vegetable (no olive, unfortunately). In fact, the bacon on the Nove brunch table is some of the meatiest to be had in town and the restaurant puts out a buffet spread that manages to be diverse and creative without becoming overwhelming (although, in truth, we did overeat just a bit).

The excellence of the food could not be spoiled even by a sextet of douchebags at the next table. One of them had clearly seen way too many episodes of Burn Notice, judging by his attire. Downstairs, some dude was wandering back and forth carrying a skateboard. Seriously, who brings a skateboard into a casino — and what would you do with it there?

The “Question of the Day” hopper is filling up. Look for one soon on the most recent “Trailer Station” as well as one that’s going to require me to grill every major hotel company in town about their anti-bedbug procedures. They’re gonna love me when I ring ’em up with that query.

Posted in Current, Dining, George Maloof, Station Casinos, The Strip | Comments Off on Writing today

Quote of the Day

Posted on May 17, 2010 by David McKee

“Mark Manendo, 42, has never married and has lived with his mother for long periods of time.” — Assemblywoman Kathy McClain (D-NV) lobbing a creaky old form of sexual innuendo against her opponent in the primary. Judging by the locution, McClain’s formative influence was back numbers of Hollywood Confidential. Another of her accusations against Manendo — “has been unemployed for significant periods” — would put him in a lot of good company right now.

Posted in Current, Economy, Election, Politics | 3 Comments

More X Train hype

Posted on May 16, 2010 by David McKee

Those folks behind the X Train have managed to snag some teevee time and the more they talk, the more their project sounds like empty hype: a lot of fancy promises upfront but little indication of from whence the startup capital is coming. I fear they’re banking heavily on the gambling car, which is to feature slots, roulette, 21 and “games that have something to do with a felt-covered table.” (Like … pool?) Since the live play would confined to the last (or first, depending on your direction) 90 minutes of the tribe, that’s a slim reed from which to hang the X Train’s appeal.

Posted in California, Current, Tourism, Transportation | 3 Comments

LV Hilton sagging

Posted on May 14, 2010 by David McKee

Tom Barrack‘s Colony C[r]apital may be running yet another casino into the ground. The Las Vegas Hilton reported earnings late today, swinging $5 million year/year from a profit to a loss. Food and beverage sales were steady but hotel rooms brought in 9% less. Throw in dreadful performance (-17%) by the casino floor and you’ve got the makings of a $6.5 million (-11%) net revenue declivity. Given Barrack’s tendency to overleverage his casino properties, this is a extremely worrisome portent for The House That Kirk Built.

Posted in Colony Capital, Economy, The Strip, Wall Street | 2 Comments

“The American consumer is toast”

Posted on May 14, 2010 by David McKee

If you think MGM Mirage CEO Jim Murren sounds apocalyptic when he forecasts no major development on the Las Vegas Strip until circa 2020 (heck, Carl Icahn may keep Fontainebleau on ice until 2015) then get a load of this glum analysis. Twelve trillion bucks in lost wealth sure ain’t chump change and goes a long way toward explaining why the casino industry has hit a wall — and hard — after 17 years of growth. What’s amazing is not that the casino industry finally reached its saturation point in the U.S. (overseas is quite a different story, as you know) but that it took as long as it did.

(Steve Friess‘ analysis of the Vegas economy is somewhat cheerier, although we both agree CityCenter has been virtually a non-event. And, wow, has Randy Black cratered the Mesquite market or what?)

A strong Singapore opening didn’t do any favors for Genting Bhd, which bled red ink as though from a severed artery, despite the infusion of Resorts World Sentosa (left). If the Reuters dispatch is correct, Las Vegas Sands CEO Sheldon Adelson has revised his bold — dare one say, “rash”? — prediction of a $1 billion in annual profit from Marina Bay Sands down to a billion bucks of cash flow (and $120 million of that will go to the tax man) … quite a Continue reading →

Posted in Atlantic City, Carl Icahn, CityCenter, Columbia Sussex, Current, Economy, Fontainebleau, Genting, Harrah's, Herbst Gaming, Mesquite, MGM Mirage, Neil Bluhm, Pennsylvania, Racinos, Regulation, Sheldon Adelson, Singapore, Technology, The Strip, Tribal, Tropicana Entertainment | 3 Comments

“Maudlin’s Eleven”

Posted on May 14, 2010 by David McKee

Since the recent inclusion of an SCTV clip went over so well (the troupe really had the old Vegas sensibility down cold), another S&G film festival seemed in order. In this case, it’s the complete Maudlin’s Eleven. For some bizarre reason, the second half of this filmlet played in tight rotation in syndication but Part One was rarer than hen’s teeth … so much so that certain SCTV fans wondered if the first part even existed. Thanks to the marvel of YouTube, S&G can now present the integral, satiric delight that is Maudlin’s Eleven. John Candy‘s sycophantic/miserable “laugh” as William B. Williams is a particular thing of beauty.

Posted in Entertainment, Movies, The Strip, TV | 1 Comment

This just in …

Posted on May 13, 2010 by David McKee

Casino regulators in Iowa have dealt a sweeping rebuff to Gov. Chet Culver (D). While the Hawkeye State’s Racing & Gaming Commission gave its nod to a casino targeted primarily at the South Dakota market, it backhanded three other proposals. Cannibalization of the state’s already-saturated casino market was the primary motive for voting down proposals from Ottumwa, Fort Dodge and Tama (some of Yr. Humble Blogger’s old stomping grounds). Commissioners also made it clear they wouldn’t entertain new proposals until at least 2013 … plenty of time for Iowa to revert to a “growth” market, depending on larger economic forces.

The three vetoed projects faced an uphill battle even before Culver (left) blundered into the fray. In an unprecedented (in my experience) instance of executive meddling in matters regulatory, Culver put not just a thumb on the scales of policy but a big, meaty fist. He endorsed all four casino proposals even before the IRGC had finished its due diligence and, given that the governor can sack commissioners not only at will but without reason, there was more than an idle threat behind his intervention. For his gross interference, Culver is now the subject of a political-corruption inquiry. Couldn’t happen to a nicer guy.

Once too often. When the Las Vegas Hilton didn’t extend — for whatever reasons — Menopause The Musical, MGM Mirage made an astute decision to pick it up. It’s obviously been a success Continue reading →

Posted in Colony Capital, Current, Economy, Entertainment, Iowa, MGM Mirage, Politics, Regulation, The Strip | Comments Off on This just in …

CityCenter, political football *du jour*

Posted on May 13, 2010 by David McKee


Now that the all-too-inevitable “Who screwed up CityCenter?” unpleasantness between MGM Mirage and Perini Building has escalated into full-blown litigation and subcontractors fend for themselves, Sen. Harry Reid (D-NV) has been caught in the crossfire. His main rival, Archon Corp. Secretary-Treasurer Sue Lowden, is letting fly, while Gov. Jim Gibbons (R) sees it as an opportunity to remain relevant. But honestly, who thinks that MGM CEO Jim Murren is going to sit down with Perini and let Midnight Jim play King Solomon (especially now that Murren has switched MGM’s support from Gibbons to Clark County Commission Chairman Rory Reid [D])? It’s laughable. Besides, whoever heard of a lawsuit being dismissed in favor of binding gubernatorial arbitration?

Posted in Archon Corp., CityCenter, Current, Election, Harry Reid, MGM Mirage, Politics, The Strip | Comments Off on CityCenter, political football *du jour*

Quote of the Day

Posted on May 13, 2010 by David McKee

“The original Lisboa project marks a rare occasion that SJM subscribed to the build-it-and-they-will-come theory of development that drives most of its rivals. The tactic usually involves spending borrowed money like a drunken sailor in an attempt to lead the market where the developer hopes it will go, rather than following the market.” — Macau Business correspondent Muhammad Cohen, extolling the business models of Stanley Ho, particularly his low-cost ($194 million) Oceanus project.

Posted in Macau, Marketing, Stanley Ho | Comments Off on Quote of the Day

Resorts World lifts Marina Bay Sands

Posted on May 13, 2010 by David McKee

Strongly early numbers and performance from Genting‘s Resorts World Sentosa metaresort are fueling bullish sentiment regarding Las Vegas Sands‘ $5.7 billion Marina Bay Sands megalith (above), part of a multi-pronged tourism push. Sentosa did $243 million in revenue and $79 million in cash flow during its first quarter (which would point toward a first-year return on investment of 6.5%). Those initial results were inspiring enough for J.P. Morgan to estimate of Sands’ Singaporean gross gambling revenue to $2.1 billion in 2012, ramping up from a predicted $1.7 billion market share next year. Morgan also pegs Sands’ Singapore cash flow in ’12 at $900 million, or a 16% ROI. While short of CEO Sheldon Adelson‘s ultra-bullish prediction of $1 billion in annual profit, that’d be a return Wall Street hasn’t seen from the gaming sector since, oh, about 1998, when Vegas megaresort budgets began to routinely exceed the billion-dollar mark.

Go figure. While room rates on the Las Vegas Strip are starting to creep back toward (or, in Steve Wynn‘s case, well past) last year’s levels and gambling revenue remains a cautiously optimistic unreliable barometer, it belatedly occurs to me: How on earth does Continue reading →

Posted in Current, Economy, Genting, Regulation, Sheldon Adelson, Singapore, Steve Wynn, The Strip, Tourism, Wall Street | Comments Off on Resorts World lifts Marina Bay Sands

Quote of the Day

Posted on May 12, 2010 by David McKee

“The gentleman involved in Neonopolis is a wonderful salesman. He has been to the club one time, and he has an amazing skill. I’ve had several meetings with him, and he has a very positive approach and he gets you feeling really good, and you walk out and you’re feeling really good for about two minutes. Then you realize, something just happened but you don’t know what it was, and of course nothing ever happens.” — Downtown Cocktail Room and Emergency Arts owner Michael Cornthwaite, a downtown mover and shaker, on Neonopolis manager Rohit Joshi. Of the likelihood of Joshi resurrecting Star Trek: The Experience, Cornthwaite says, “It’s not going to happen. I would stake my bar on it.”

Posted in Downtown, Entertainment | 1 Comment

Nevada: No recovery yet

Posted on May 11, 2010 by David McKee

“We hit the bottom and are slowly climbing out,” contends Nevada Gaming Control Board analyst Frank Streshley, trying to put the best spin on a flat March. There were definitely some silver linings. Who’da thunk Laughlin (2.5%), Reno (5%) and hard-hit Lake Tahoe (7%) would be growth markets? Or that Mesquite casinos would outgross downtown Las Vegas?

However, the locals markets continue their downward drift, testimony to how hard the average Las Vegas has been hit by the Great Recession. If you get away from the Strip and drive around, the economic toll is staggering, I assure you. The Strip is acting as a life preserver but the good news there is concentrated in Continue reading →

Posted in Boulder Strip, California, CityCenter, Current, Downtown, Economy, Lake Tahoe, Laughlin, LVCVA, Marketing, Mesquite, MGM Mirage, Reno, Sports, The Strip | 10 Comments

Not just another pretty face

Posted on May 11, 2010 by David McKee

Because of the relatively low base salaries drawn by CEOs of major casino companies, they’ve generally been exempt from mass-media scrutiny. However, the ways in which the compensation pot has been sweetened for Las Vegas‘ (or would that be China‘s?) two fiercest rivals has come under the microscopes of Forbes and Morningstar.

Las Vegas Sands CEO Sheldon Adelson is somehow able to justify a $2.45 million security detail, among profuse other goodies. For instance, Sands ponies up $67K of $118K Adelson owes in taxes for use of his own pair of 747s, which he leases out to Sands at Continue reading →

Posted in Current, Entertainment, International, Sheldon Adelson, Steve Wynn, The Strip, Transportation, Wall Street | 2 Comments

Mixed signals along the rivers

Posted on May 11, 2010 by David McKee

Last month’s results from Missouri are as might be expected. The opening of Pinnacle Entertainment‘s River City lifted state revenues overall (6%) but at the price of a fair amount of cannibalization — mainly at other Pinnacle properties, although it swiped play from southern Illinois, too. Lumiere Place surrendered 12% of hard-won business while the doomed President (above) was down 27%. Ameristar Casinos‘ St. Charles riverboat took an -8% hit but Harrah’s Entertainment‘s nearby rival not only felt no damage, it actually gained 2% on the month.

Harrah’s was also the only gainer (+4%) in a flat Kansas City market, though the results there hardly merit detailed breakout. Ameristar continues to be #1 in the K.C. market while Harrah’s has edged it in the St. Louis one. Given the degree to which Pinnacle is competing against itself there, Harrah’s primacy looks safe.

Illinois players may be staying close to home again. A month does not a trend make — but Continue reading →

Posted in Ameristar, Boyd Gaming, Columbia Sussex, Cordish Co., Detroit, Economy, Harrah's, Illinois, Indiana, Missouri, Penn National, Pinnacle Entertainment, Tribal, Tropicana Entertainment, Wall Street | Comments Off on Mixed signals along the rivers

Quote of the Day

Posted on May 11, 2010 by David McKee

“Where financing was hard to come by before, it’s nearly impossible for today.” — Columbia Sussex Executive Vice President Joseph Yung (son of Bill). Yes, it would be … especially when you’re leveraged to the gills like ColSux.

Posted in Columbia Sussex, Current, Economy, Wall Street | Comments Off on Quote of the Day