Quote of the Day

Posted on April 30, 2010 by David McKee

“It is certainly time that we openly recognize that when a limited number of gambling licenses are up for bid, the winners will be the applicants who promise the state the most money, in upfront fees, massive construction projects and continuing jobs.” — gaming-law scholar I. Nelson Rose, on the Missouri Gaming Commission‘s recent attempt to strip the President casino of its license due to financial underperformance. A similar confrontation may loom between Isle of Capri Casinos and the State of Louisiana.

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

Sickness, health & Shakespeare

Posted on April 30, 2010 by David McKee

No sooner was the S&G software restored to working order than Yr. Humble Blogger was laid low by either A) too much indulgence in Harrah’s Entertainment‘s “Buffet of Buffets” or B) my worst fibromyalgia attack in years. Given Vegas’ recent bouts of Jekyll-and-Hyde weather — balmy one day, blustery the next — I suspect it was “B.” I did manage to crawl out of bed long enough to try and help a family member extract something resembling customer service from the Lost & Found department of Paris-Las Vegas, to no avail. (We’ve received better treatment from Hilton Hotels and Best Western, fer crissakes.)

Anyway, I see that a hefty pile of unread articles awaits me — to say nothing of news that transpired while S&G was still on the fritz. This includes the disclosure that Steve Wynn is still Continue reading →

Posted in Current, Dining, Entertainment, Harrah's, Macau, Steve Wynn, The Strip | 1 Comment

Quote of the Day

Posted on April 28, 2010 by David McKee

“What, perhaps you ask, is ‘Gossiness’? Well, nobody exactly knows, except that it is very likely in coming years to be an Urban Dictionary entry synonymous with an act that thinks it can burst on the Vegas scene and expect everyone to revere its awesomeness before it’s actually even bothered to prove its awesomeness.” — Steve Friess, on the attempt to turn a British pop also-ran into an instant Vegas icon (unless you define “Rat Pack” as Justin, Lance and Joey [Fatone, that is]).

Posted in Entertainment, George Maloof, Harrah's, International, The Strip | Comments Off on Quote of the Day

Harrah’s red-headed stepchild

Posted on April 23, 2010 by David McKee

If we (you, me, everybody) had a dollar for ever time we heard a rumor that Harrah’s Entertainment was putting The Rio on the block, we could pool enough moolah to amortize CEO Gary Loveman‘s recent $100,000 pay cut. Our collection plate just got a buck richer today.

This rumor could, however, be the real deal — not least because it comes from Bloomberg reporters Beth Jinks and Jonathan Keehner. It would seem that Harrah’s acquisition of Planet Hollywood has made The Rio redundant and Loveman is trawling for offers. The half-billion-dollar asking price would effectively negate the debt assumption that went into the Planet Ho purchase. However, it also (at 8X EBITDA) presumes an annual Rio cash flow of roughly $63 million, a figure of which I would be skeptical, not least because Harrah’s no longer deigns to break out individual-property results.

The good news is that Starwood Capital Group, which is currently trying to purchase Extended Stay Hotels out of bankruptcy, is one prospective bidder. Starwood’s portfolio emphasizes leisure and hospitality properties.

The bad news is that the other named bidder is — Oh no! — Colony C[r]apital. Now that James Packer is out of the U.S. casino industry, Colony CEO Tom Barrack (still being plucked like a chicken by the wily Fertitta Brothers) inherits Packer’s dubious mantle of being Continue reading →

Posted in Archon Corp., Atlantic City, Current, Economy, George Maloof, Harrah's, International, James Packer, Laughlin, Planet Hollywood, Station Casinos, The Strip, Wall Street | 10 Comments

Quote of the Day

Posted on April 23, 2010 by David McKee

“Guuuuuuuuuuuuyyyyyyyyyyyyy?!?!?!?!?” — friend’s shocked reaction to being vouchsafed the information that elfin Cirque du Soleil founder Guy Laliberté was a former lover of forever-in-the-news (and never in a good way) model Naomi Campbell. Now we know why Laliberté hitched a ride on the International Space Station: In space, no one can hit you with a cell phone.

Posted in Cirque du Soleil, Current | Comments Off on Quote of the Day

Ozzy has left the building

Posted on April 22, 2010 by David McKee

Rock-based revues and tribute shows are biting the dust left and right, according to our LVA research staff. As the Riviera (whose workforce has been allegedly reduced by 60%) creeps toward the grave, Masters of Rock preceded it last Saturday, banging its last head. Over at Palace Station, Rock n’ Roll 2 Soul expired a fortnight back, making room for another imitation Coasters show. (Score: doo-wop 1, rock 0.) And, after being booted from the Wyrick Entertainment Complex (which itself has died and been resurrected as an extension of the V Theatre), Rockstar: The Tribute was announced for — and scrapped by — both the Riv and the Harmon Theatre, probably making it the only Vegas show to have the invidious distinction of closing before it ever opened … at least twice.

Posted in Current, Economy, Entertainment, Planet Hollywood, Riviera, Station Casinos, The Strip | 1 Comment

Archonomics: Poultry in motion

Posted on April 22, 2010 by David McKee

All of cyberspace has been agog with Archon Corp. Treasurer Sue Lowden‘s chickens for health care proposal. Normally we’d chalk up this kind of Green Acres-inspired policy to spring fever and leave it at that — were it not for the fact that Lowden is ostensibly a key executive of a local (albeit obscure) casino company. Does her vision of a chicken-based economy reflect the quality of thought that prevails within the Archon boardroom? Yesterday, whilst stymied by messed-up blog software, S&G mused via Twitter on the implications of “chickenomics” if applied to how Archon does business …

• So if Joe’s HVAC Service is owed $90K by Archon Corp., would Treasurer Lowden pay with chicken dinners, free-play coupons, buffet comps?

• Anybody know where I can get ahold of some chickens to barter for hotel room @ Pioneer Gambling Hall in scenic Laughlin?

• Just remember: If the Pioneer charges you $35/night to stay there, try & haggle it down to $25 or even $15. That oughta work like a charm.

• How many chickens would [developer] Jim Rhodes have accepted in lieu of … Red Rock [Canyon] acreage? Could be new metric of LV land valuation.

• The origins of chicken-based economic theory

• S&G estimates chickens worth +20% dead than alive. All future Archon Corp. transactions to be calculated in poultry value as well as $$.

According to one of the more conservative estimates, chicken by the pound was trending toward Continue reading →

Posted in Animals, Archon Corp., Economy, Election, The Strip | 4 Comments

Steve Wynn may take his ball …

Posted on April 22, 2010 by David McKee

… and move to Macao. Or so he says. Given Steve Wynn‘s long track record of thinking aloud, I’d assign a low probability to this trial-balloon idea. Besides, in the U.S. the mogul can pop off at the government without any fear of official reprimand. Were a China-residing Wynn to lash out at Peking the way he’s done at Washington, a sharp rap across the knuckles could be his fate — or perhaps Continue reading →

Posted in CityCenter, Economy, International, Macau, MGM Mirage, Sheldon Adelson, Steve Wynn, The Strip, TV | 1 Comment

Quote of the Day

Posted on April 22, 2010 by David McKee

Wynn on Fox“It’s retribution, and it’s an incredibly bad business decision because there is so much brand equity wrapped up in that Mirage name. Kirk Kerkorian would not have bought those resorts were it not for all the value and mystique that Steve Wynn created.”– Yr. Humble Blogger, ripping the proposed re-flagging of MGM Mirage as “MGM Resorts International.” Please forgive the self-quotation: This decision by MGM is so insanely bad it cannot be flayed often enough. Besides, between the cost of rebranding everything with the new moniker (right down to the stationery) and the lost equity value of the Mirage name, this is tantamount to setting tens — if not hundreds — of millions of dollars on fire.

Posted in Current, MGM Mirage, Steve Wynn, Wall Street | 2 Comments

Face of the Week

Posted on April 16, 2010 by David McKee

DSCN1466aThis haunting visage belongs to Chuck, a Russian Blue who was reader Detroit1051‘s faithful friend for over 14 years. He’s been gone from this earth a couple of years now but lives on in Detroit’s heart and as his Twitter icon. For those of you who were wondering about the cute cat accompanying Detroit’s tweets or who wanted a closer look, here he is. (S&G is not biased against dogs, however; video footage of readers’ canine companions has been posted here in the past. One of our upcoming “Face(s) of the Week is LVA‘s guard iguana, Mojo, a true character.)

Posted in Animals, Pets, Technology | 2 Comments

Quote of the Day

Posted on April 16, 2010 by David McKee

sanfilippo-inside-small“This is new CEO Anthony Sanfilippo’s first major (at least public) decision and one that, in our opinion, shows strong and rational capital allocation decision-making.” — J.P. Morgan analyst Joseph Greff, lauding Pinnacle Entertainment‘s decision to scuttle its Sugarcane Bay project in Lake Charles, Louisiana and surrender the casino license thereto.

Posted in Current, Louisiana, Pinnacle Entertainment, Wall Street | Comments Off on Quote of the Day

Massive defeat for Patrick in Mass.

Posted on April 15, 2010 by David McKee

Lawmakers in Massachusetts ran roughshod over Gov. Deval Patrick (D), overwhelmingly approving a four-racino, two-casino formula the governor opposes. They also resisted the urgings of those who would put the two, $500 million casino resorts out in the boonies, giving racinos a stranglehold on the Boston market. Those resort locations will now be determined by a specially appointed commission. Casino supporters are projecting a $1.1 billion/year industry, although Continue reading →

Posted in Current, Economy, Macau, Massachusetts, Politics, Regulation, Sheldon Adelson, The Mob, Tribal | 2 Comments

Harrah’s robbing Peter to buy Paul

Posted on April 15, 2010 by David McKee

Dr LovemanWhen executives of Harrah’s Entertainment credit “hard-nosed” negotiating tactics for their success is reducing the company’s preposterous debt level, one suspects that threats of default and bankruptcy serve as the rhetorical equivalents of the rubber hose and brass knuckles. It’s certainly worked like a charm. Commercial-mortgage holders are taking 25-30 cents on the dollar and liking it. (“You can get a quarter or you can take your chances in Chapter 11” would constitute a pretty compelling argument, I imagine.) Well, they may not be liking it but they’re taking it.

So, having bartered down its lenders like so many merchants at an Arab bazaar and having floated a $750 million note offering, what is Harrah’s going to do? If you said, Continue reading →

Posted in Archon Corp., Current, Economy, Entertainment, Harrah's, International, Internet gambling, Macau, Mississippi, Planet Hollywood, Politics, Regulation, Riviera, The Strip, Wall Street, World Series of Poker | Comments Off on Harrah’s robbing Peter to buy Paul

Case Bets: St. Louis, Florida & antiques

Posted on April 15, 2010 by David McKee

River PlaceIt was the best of times … almost. Pinnacle Entertainment‘s opening of River City not only propelled a 9% increase in casino revenue in the St. Louis market, it gave the area “its busiest month ever.” While River City’s $15.9 million take was far behind market leader Ameristar Casinos ($24.2 million) that was still good enough for third place, as River City vaulted over almost everyone else — including Pinnacle’s own Lumiere Place. The fact that this was achieved in the depths of the Great Recession makes it doubly impressive.

The “almost” takes the form of the inevitable cannibalization that occurred, spread evenly across the market (although Harrah’s Entertainment‘s riverboat suffered least). This is going to be a compelling argument for Continue reading →

Posted in Ameristar, Boyd Gaming, Current, Economy, Entertainment, Harrah's, Missouri, Pinnacle Entertainment, Politics, Reno, Sheldon Adelson, Tribal, Wall Street | 2 Comments

MGM pre-reports

Posted on April 14, 2010 by David McKee

DSCN1282

Aria: Nice rooms; anybody there?

First, the good news: A managerial shakeup at MGM Grand Macau yielded a $54 million swing in operating income, turning what had been a modest loss last year into a considerable profit in 1Q10. Also, MGM Mirage continues to pay down debt, aided by $24 million in deposits that would-be condo buyers forfeited. (Easy come, easy go.) MGM Grand Detroit was a tower of strength, only $47,000 off last year’s pace and, on the Strip, Bellagio‘s cash flow continued to lead all MGM properties by a extremely wide margin.

Now the not-so-good news. All Strip properties were down from last year, with Circus Circus‘ cash flow falling to Continue reading →

Posted in CityCenter, Detroit, Economy, Illinois, Macau, MGM Mirage, Pansy Ho, Stanley Ho, The Strip, Wall Street | 8 Comments

Trump wins, Atlantic City loses

Posted on April 14, 2010 by David McKee

TrumpLong-suffering Atlantic City is going to stuck with one of the heaviest albatrosses around its neck — Donald J. Trump — for the foreseeable future. Das Donald’s $225 million cash offer for what’s left of Trump Entertainment Resorts trumped a $486 million credit bid by archrival Carl Icahn.

Aside from the fact that he’s not Donald Trump, Icahn’s primary selling points were a successful track record in the Las Vegas market and a promise to liquidate all TER debt. However, that would have left bondholders holding the bag, a decisive factor with Judge Judith Wizmur, who awarded the three casinos to Trump and his allies. They’ll still be carrying $334 million in debt — down from $1.7 billion but an onerous burden in the depressed Atlantic City market.

With characteristic modesty, Trump bloviated that Continue reading →

Posted in Atlantic City, Carl Icahn, Donald Trump, Economy, Marketing, Tourism | 6 Comments

New train on the block

Posted on April 14, 2010 by David McKee

While the rival maglev-to-Anaheim and high-speed Las Vegas-to-Victorville train projects duke it out for funding and bragging rights, a third Vegas-to-SoCal project has entered the fray. Las Vegas Railway Express proposes to employ existing infrastructure and trains, reducing by three years — and billions of dollars, one presumes — the timeline for resumption of passenger-rail service into Sin City.

Your baggage will be checked straight to the hotel from the so-called X Train … but it appears you will have to shift for yourself, so that may be a problem with consumers. The Vegas cabbies will love it, though.

The “X” factor, as it were, is the question of whether travelers will consider it worth $99 to Continue reading →

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

Quote of the Day

Posted on April 14, 2010 by David McKee

“Now, there’s an invitation I can’t refuse! Don’t think I want to be one of their freefalling guinea pigs.” — Las Vegan’s response to an invitation to become of one of the first to experience the Stratosphere‘s new 855-foot, 40-mph SkyJump, which debuts next Tuesday. The Auckland, New Zealand, version is depicted above but the Strat’s jump will be 200 feet longer. Hey, after 655 feet, what’s 200 more?

Posted in Current, Entertainment, Goldman Sachs, The Strip, Tourism | 3 Comments

Blast from the past

Posted on April 13, 2010 by David McKee

Ever wonder what the then-Portugese enclave was like before Stanley Ho came along and built a casino empire that would change the visage of Macao irrevocably and beyond recognition, potentially eclipsing Las Vegas itself? Here are some vignettes circa 1960.

Posted in Current, Macau, Stanley Ho | 4 Comments

A “Titanic” offer

Posted on April 13, 2010 by David McKee

Titanic-picThrough Sunday, Luxor is celebrating — if that’s the word — the 98th anniversary of the sinking of the RMS Titanic. For instance, tonight you can swap your exhibit ticket for a free drink or appetizer at (where else?) Tacos & Tequila. You mean, it wasn’t a mariachi band that played hymns as the great ship went to her watery grave?

Slightly more appropriate is the April 16th drawing for free admission to Minus5 Ice Lounge. Where better to commemorate history’s most famous iceberg than by knocking back a free drink at a bar made of frozen H2O?

Posted in Current, Dining, Entertainment, Marketing, MGM Mirage, The Strip | Comments Off on A “Titanic” offer