Now this is different …

Posted on March 29, 2010 by David McKee

Conventional wisdom in Las Vegas held that big fights drove big business. But who ever heard of a marquee boxing match being offered as a loss leader. That’s how MGM Mirage is promoting “The Rivals: Hopkins vs. Jones.” I’m not up to date on the sweet science, so these guys could be a couple of tomato cans for all I know. But it’s interesting to see the company offering comped fight tickets to justify room rates that would otherwise be deemed exorbitant. Is the match driving business — to other hotels? Is it a dud at the box office, leaving MGM with a lot of overpriced room inventory that has to be moved? If the bout were luring customers, per the old-school model, would MGM be having to paper the house in this fashion?

Posted in CityCenter, Current, Economy, Entertainment, MGM Mirage, Sports, The Strip, Tourism | 4 Comments

Quote of the Day

Posted on March 29, 2010 by David McKee

“At Bellagio, MGM is offering no promotions.” — from this week’s J.P. Morgan “LV Strip Room Rate Survey” … and from every week’s such survey seemingly since time immemorial, making Bellagio the only MGM Mirage Strip hotel of which this can be said.

Posted in Current, Economy, MGM Mirage, The Strip, Tourism | 3 Comments

Dept. of Wishful Thinking

Posted on March 26, 2010 by David McKee

Whatever became of Elad Properties‘ metaresort-sized Plaza project, built upon the ruins of the New Frontier? Reed Construction Data Project Research claims it’s on. Never mind that Elad’s not put so much as a shovel into the ground … or that the budget for the seven-tower “failsino” is listed by RCD at a preposterously inadequate $1 billion.

If Elad provided that data, it’s not the only casino developer who’s been snorting Continue reading →

Posted in Current, Economy, Environment, Gary Goett, Harrah's, M Resort, Massachusetts, Mississippi, New York, Phil Ruffin, Plaza, Racinos, The Strip, Tribal | Comments Off on Dept. of Wishful Thinking

Quote of the Day

Posted on March 26, 2010 by David McKee

“Ever since banks lent all that money to Columbia Sussex to buy my hotel, my paycheck is smaller, I don’t qualify for health insurance anymore, and my co-workers are laid off.” — Baltimore Sheraton laundress Mary Lee Hinant. Her hotel is one of eight which are the subject of a Unite-Here and AFL-CIO boycott. Five of the eight boycotted hotels were part of a $1.1 billion acquisition which shortly preceded Columbia Sussex’s doomed purchase of Aztar Corp., parent of the Tropicana Las Vegas.

Posted in Columbia Sussex, Current, Labor, Maryland, Tropicana Entertainment, Wall Street | Comments Off on Quote of the Day

Quote of the Day

Posted on March 25, 2010 by David McKee

Resorts World“The environment, the crowd and the merchandise is on par with Florida. In the Singapore context, this service is very good. There are always common complaints in Singapore about lousy, rock-bottom service, but these people make a difference.” — “Vijay,” commenting on Resorts World Sentosa and its amusement park.

Posted in Genting, Singapore, Tourism | Comments Off on Quote of the Day

A clarification, a continuation & a poll

Posted on March 25, 2010 by David McKee

Firstly, in defense of both LVA and our research department, they’ve been following the subject of resort fees since the June 16, 2007 Question of the Day. These past couple of weeks we’ve been trying to get a handle on the evolving (read: amorphous) resort-fee policy at MGM Mirage — with diminishing amounts of cooperation.

Reader comments are still mysteriously being shunted Continue reading →

Posted in Cirque du Soleil, Current, Dining, Economy, Encore, Entertainment, Harrah's, MGM Mirage, Steve Wynn, Technology, The Strip, Tourism | 1 Comment

Mystery solved (sorta)

Posted on March 24, 2010 by David McKee

It would seem that all your comments, dear readers, have been getting shunted straight into “Spam” without so much as a by-your-leave to me as to whether they should be approved, edited, moderated or whatever. I’ve liberated approximately messages from the spam folder and –boy! — has the resort-fee practice ($14.99 extra to stay at Palace Station? Ludicrous.) really kicked over a hornet’s nest. I hope a few well-placed casino executives are reading what you’ve written.

Posted in Current, Downtown, Economy, Station Casinos, The Strip, Tourism | Comments Off on Mystery solved (sorta)

The Roman empire strikes back

Posted on March 24, 2010 by David McKee

@CaesarsPalace Ask yourself: would a Caesar pay resort fees? Why should you? Twitter follower rates from $100. http://bit.ly/aA2Qcm 4 minutes ago via Seesmic

@ParisVegas Resort fees are a sucker bet. That’s why we don’t charge them. Twitter follower rates from $60, and that means $60. http://bit.ly/9pXdCV

What did I tell ya?

Posted in Current, Economy, Harrah's, The Strip, Tourism | Comments Off on The Roman empire strikes back

Calling all readers

Posted on March 24, 2010 by David McKee

TS_PleaseStandByIt’s been brought to my attention by readers kerr_mudgeon and Jeff in OKC that attempts to post comments to S&G are an exercise in futility. First, I apologize and, secondly, I’ve already alerted IT to the problem. (For whatever reason, pingbacks are working just fine.) However, in the meantime, if you have a copy of your comment or can remember it offhand, e-mail it to me and we’ll do another “From the Mailbag.” It’s not an ideal solution but it’s the best I can think of at the moment.

Again, I apologize for the inconvenience.

Posted in Current, Technology | Comments Off on Calling all readers

Aria wants your business, Las Vegas

Posted on March 24, 2010 by David McKee

From the Twitter feed of Aria: Every Wed night at The Deuce @AriaLV open champagne bar from 10-11pm and half price bottles for #LVlocals! Showing the locals some love!

They’ll probably be hanging out here instead.

Posted in CityCenter, Current, Economy, Entertainment, MGM Mirage, Phil Ruffin, The Strip | 3 Comments

Wishful Thinking 101

Posted on March 24, 2010 by David McKee

DSCN1930“[Applied Analysis principal Jeremy] Aguero says the local economy will start recovering as soon as people across the country start spending money like they used to.” Yes, when they start having easy credit like they used to … which will be when precisely?

Posted in Boulder Strip, Current, Downtown, Economy, North Las Vegas, The Strip | Comments Off on Wishful Thinking 101

Quote of the Day

Posted on March 24, 2010 by David McKee

“The days of $1,000 bottles of liquor and $15,000 cabanas and $500 room rates aren’t coming back. People need to stop talking about when the good times are coming back because they never are. The world returning to 2006 would not be good because we have 50 percent more stuff now. So we’d have to be 50 percent better than we were in 2006.” — Randall Fine, managing director of Fine Point Group and one of the few forward-thinking operators in the industry at present. His company was announced today as the new management group for Mount Airy Casino Resort, in Pennsylvania, which has been coming under competitive pressure from Sands Bethlehem. S&G congratulates Fine Point.

Posted in Economy, Pennsylvania, Sheldon Adelson, The Strip | Comments Off on Quote of the Day

Re$ort fee$: the latest

Posted on March 23, 2010 by David McKee

excalibur-pic2Poor MGM Mirage; it can’t stay out of the news these days. At the moment, our LVA research staff is trying to get the skinny on the spread of “resort fees” through the company’s Strip properties. (Stock analysts love them because they boost room revenues; customers are less enthusiastic.)

From what our researchers have gleaned so far, The Mirage will set you back an extra $15, while Signature at MGM Grand charges $20. The privilege of staying at Excalibur comes with a $9.95 impost and Luxor will cost you $12.95 (perhaps for the thrill of closer proximity to Continue reading →

Posted in Current, Economy, Harrah's, Marketing, MGM Mirage, The Strip, Tourism | 26 Comments

MGM & Stanley Ho: The consequences of desperation

Posted on March 23, 2010 by David McKee

MGM Grand Macau Back1Contrary to the confident prediction of Las Vegas Review-Journal Publisher Sherman Frederick, the ramifications of the report of the New Jersey Division of Gaming Enforcement on the relationship between MGM Mirage, Pansy Ho and father Stanley Ho have been as “explosive” as waterlogged dynamite. Both Las Vegas newspapers yawned and figuratively turned the page, while Nevada Gaming Control Board Chairman Dennis Neilander says, in essence, that if they had to do it all over, the NGCB would arrive at the same conclusion. (One might contend that this is what happens when a company gets so large it can take the regulatory process hostage … but I digress.)

To read a truly in-depth précis — if that’s not a contradiction in terms — of the DGE’s findings, one has to cross the ocean and Continue reading →

Posted in Atlantic City, Boyd Gaming, International, Macau, MGM Mirage, Pansy Ho, Regulation, Stanley Ho, Wall Street | 1 Comment

Case Bets: Maryland, Foxwoods, problem gambling

Posted on March 23, 2010 by David McKee

It’s not even been 18 months since Maryland voters gave their assent to slot houses — a time in which the state has to erect a regulatory apparatus, vet applicants, and then wait for the latter to get up and running. That’s not good enough for some Annapolis lawmakers who are flying into a full-blown panic. The anticipated tax dollars aren’t flowing in as soon as (unrealistically) expect, so the illogical response by the Legislature is to call for more forms of gambling, stat. Geez, you guys, your state’s never done this before. Give the process a little time to work. You’re still on pace to blow past Kansas — and even though New York authorized a major gambling expansion in 2001, the Empire State has implemented it at a crawl.

It’s unclear whether the pitch to add table games to the racino/slot parlor mix is an attempt to keep up with the Joneses (i.e., Pennsylvania) or a concession to good-faith applicants like Continue reading →

Posted in Cordish Co., Current, Economy, Kansas, Marketing, Maryland, MGM Mirage, New York, Penn National, Pennsylvania, Politics, Problem gambling, Racinos, Regulation, Taxes, Tribal | 1 Comment

Quote of the Day

Posted on March 23, 2010 by David McKee

Icahn pensive“There’s a misperception out there that we bust up companies. Or that I believe that all people on boards are bad. It’s just that, in some cases, the C.E.O.’s are so wrong.” — Tropicana Entertainment owner Carl Icahn, in a rare interview with the New York Times. Icahn’s former casino company has fallen on hard times under the ownership of Goldman Sachs. ROI is 4.5% and Goldman’s $1.3 billion purchase price would — if paid today — represent a 22X cash-flow multiple. In other words, Icahn took Goldman to the cleaners.

Posted in Atlantic City, Carl Icahn, Current, Downtown, Goldman Sachs, Tropicana Entertainment, Wall Street | 2 Comments

Snakes in a casino

Posted on March 22, 2010 by David McKee

Beach club 3

For those of you curious about the progress of Wynn Resorts‘ makeover of Encore‘s atrium into Encore Beach Club and accompanying nightclub Surrender, a source close to Steve Wynn‘s design shop leaked a few renderings to VegasTripping.com. If giant snakes and leopard-print carpeting are your thing, Surrender should Continue reading →

Posted in Architecture, Encore, Entertainment, Steve Wynn, The Strip | 2 Comments

Tipping the scales

Posted on March 22, 2010 by David McKee

chet-culver-1There’s a Nobel Prize in Economics (or something) for whomever can figure out how to disentangle gambling from politics. Case in point: Iowa, where Gov. Chet Culver (D, left) has a heavy thumb on the scales of regulation. Culver’s made it amply clear that he wants four new casinos, economics be damned. Since he can sack members of the Iowa Racing & Gaming Commission at will, what are the odds he’ll get his wish? In fact, were Culver’s logic — “If communities vote in favor of gaming, then they should be given the opportunity to build one.” — carried to its logical conclusion, Iowa could give Nevada a run for its money in Continue reading →

Posted in Herbst Gaming, Iowa, Politics, Regulation | Comments Off on Tipping the scales

Tragedy in Vegas

Posted on March 22, 2010 by David McKee

There’s need everywhere you look nowadays but if you’re an S&G reader in the Las Vegas area and have blankets or animal cages to spare, Gilcrease Nature Sanctuary could use them in the wake of a devastating fire. If you’re heading up to scenic Mount Charleston, it’s just southeast of Kyle Canyon Road, the lower of the two entries to the park.

Posted in Animals, Charity, Current, North Las Vegas | Comments Off on Tragedy in Vegas

Quote of the Day

Posted on March 22, 2010 by David McKee

MACAU-HO/“For two days in a row, the [American Gaming Association] Internet site that aggregates gaming industry stories has totally ignored all of the stories about the [New Jersey Division of Gaming Enforcement] report on the relationship between MGM Mirage and the [Stanley] Ho family. That’s approximately what I expected from this dreadful trade association, but I’m still amazed when I see it.” — e-mail received last Friday from an S&G reader. Dr. Ho was the recipient of a “Vision Award” at the AGA’s most recent G2E Asia.

Posted in Atlantic City, Current, G2E, Macau, MGM Mirage, Pansy Ho, Regulation, Stanley Ho | Comments Off on Quote of the Day