An open letter from Fred Frazzetta

Most of you, I’m certain, remember Fred Frazzetta, a heroic Nevadan who essentially sacrificed his career to blow the whistle on Harrah’s Entertainment‘s cavalier attitude toward building regulations (and, one might add, customer safety). He sent S&G the following, in response to a Suzette Parmley profile of Don Marrandino, who’s now BMOC for Harrah’s Atlantic City and Pennsylvania casinos and racinos.

“I caught your article regarding Don Marrandino, and I wanted to take the time to fill you in on a few things that took place while Mr. Marrandino was President of both the Flamingo Hotel & Harrah’s Hotel & Casino in Las Vegas … things I am sure that neither Don or Harrah’s want to talk about.

“Have you followed the plight of Harrah’s and their now well documented illegal remodels in Las Vegas? I am the whistleblower, Fred Frazzetta and I want the world to know what Harrah’s Entertainment Inc. did because their numerous criminal acts were willful. Harrah’s illegally remodeled multiple properties here in Las Vegas without permits being pulled as required, and therefore no inspections. Every room that Harrah’s touched was found to be unsafe for the public to stay in, and we are talking about thousands of rooms. To add insult to injury Harrah’s also exposed their construction workers, hotel employees & hotel guests to Continue reading

Posted in Atlantic City, Current, Harrah's, Pennsylvania, The Strip | 6 Comments

Quote of the Day

Wall-streetWall Street analysts upgraded the prospects of two Las Vegas-based casino operators based on the companies’ holdings in Macau. Simultaneously, Macau media reported gaming revenue in the Chinese gambling market jumped 48 percent in December.” — Howard Stutz, of the Las Vegas Review-Journal. Uhhhh … isn’t that lead putting the cart before the horse?

Posted in Macau, Sheldon Adelson, Steve Wynn, Wall Street | Comments Off on Quote of the Day

Penn vs. Columbus, Round II

Opponents of Penn National Gaming‘s Arena District site in Columbus are refining their message to sound less NIMBY-ish and Penn is hinting at (limited) flexibility on its part.

Posted in Current, Ohio, Penn National | 1 Comment

Hail Caesars!

DSCN0456

We saw this sign during an overnight stay at the Augustus Tower, several months back. If more casino venues implemented rules like these, Las Vegas would be a little easier on the eyes.

Don’t forget to vote in our newest LVA poll. The current one solicits your opinion of the coupons in the 2010 Member Rewards Book. (I still call it the Pocketbook of Values. Habits are hard to break at my age.)

Feline update: The younger of my boys, Mr. Bit, appears to have an abcessed tooth. Having had those myself, I would imagine the little furball is in a world of hurt. I’m still reeling from the cost of Shadow‘s cremation and Fasolt‘s renal treatments, but Mr. Bit will be slated for some veterinary TLC just as soon as I finish this post.

Posted in Animals, Harrah's, Pets, The Strip | 1 Comment

Random Downtown observations

goldengate-logoOn the way back from a fine dinner at the Bay City Diner (good food, better service, plus the $2.99 shrimp cocktail), a few off-the-cuff observations were made. A) Damn few people Downtown, even for midweek. B) The Plaza may have reopened its Aqua Pit restaurant. (People were observed dining there, at least.) This merits further investigation. C) The Golden Nugget spent $150 million on its Rush Tower and, judging by the outside, $149.9 million of that was for the interior. The Rush Tower exterior is the hotel equivalent of a brown paper bag, breaching new frontiers of visual ennui.* D) The guys who serve the (scrumptious) frozen bananas at Mermaids are mighty tough-looking hombres. You wouldn’t want to rankle them, methinks. No visit to Downtown is complete without a look-in at Mermaids, although the frozen bananas are a sometime thing: It took me three visits to finally obtain this Vegas delicacy.

* — They must serve a mighty weak cuppa joe at the Golden Nugget’s Starbucks. Of three people on its veranda, one was fast asleep and two others looked to be on their way to the Land of Nod.

On the way home, we very, very nearly accidentally T-boned a U-Haul truck at Sahara Avenue and the Strip. Seems that the truck’s occupants, a moronic trio of gentlemen, had a pressing desire to park their rig at the World’s Largest Gift Shop. This occasioned an unsignaled right-hand turn from the far-left lane, clear across the southbound breadth of Las Vegas Boulevard. Only a miracle — and our driver’s quick reflexes — prevented a near-certain multi-car pileup. The irony is that the U-Haulers deranged, improvisatory maneuver was only slightly more reckless than is the norm on Vegas Valley roadways.

Pennsylvania = same s**t, different day: I wish I had a dollar for every time I’ve read a headline like this. Gov. Ed Rendell‘s impatience is wholly understandable, given the snail’s pace at which state House and Senate conferees have proceeded. If there are clear winners amongst the casinos, it’ll be the small “resort” ones. They got a sweetheart provision, in the form of a 20% slot machine increase. Ah, politics as usual.

Posted in Cretins, Current, Downtown, Pennsylvania, Politics, Taxes, The Strip, Tilman Fertitta | 2 Comments

Damsel in distress

Until 2005, when Harrah’s Entertainment devoured Park Place Entertainment, its flagship property in Las Vegas was The Rio. Since then the lady has fallen upon hard times. During the period 2007-09, while Harrah’s CEO Gary Loveman blew hundreds of millions of dollars on the superfluous Octavius Tower over at Caesars Palace, The Rio went begging for so much as a coat of fresh paint. In these pictures, taken this morning, it looks like it’s not seen any external maintenance in the last two-plus years.

DSCN1787ND’s Fuego The Club closed back on June 13, but you wouldn’t know it to look at the Rio marquee …

DSCN1788… nor can anyone be troubled to fix the blanched “o” in “Rio.” This sort of penny-pinching and malign neglect of Harrah’s physical assets was only too predictable back when Loveman steered the company into the arms of Apollo (Mis)Management and Texas Pacific Group, but neither rah-rah Wall Street analysts nor worshipful Nevada regulators dared mention that ugly inevitability.

DSCN1790Seriously, how much would it cost to slap some red paint up there on the parapet? Or to stock the Las Vegas Review-Journal in one’s sundries store? Corporate jets and executive salaries remain sacrosanct but the customer experience is clearly expendable.

DSCN1791I’m not sure if it comes through at this size, but the paint has almost completely worn off some of the vertical beams on The Rio’s west side. Memo to Harrah’s: Instead of treating your former crown jewel (and the current site of the World Series of Poker) like a dump, why don’t you sell it to a company that would give a damn? Penn National Gaming, where are you when we need you?

Posted in Current, Economy, Entertainment, Harrah's, Penn National, Regulation, Wall Street, World Series of Poker | 4 Comments

Douchebag of the Year

This is one of Steve Friess‘ brainchildren, but S&G had a chance to get in on the fun. As they say in Chicago, vote early and often!

Stripper Poll

Who was the biggest douche bag of 2009? (Pick 3)

Charlie Sheen
Criss Angel
Crotch Bomber
Dick Cheney
Donald Trump
Dr. Conrad Murray
Glenn Beck
Hamid Karzai
Harry Reid
Harvey Levin
Joe Biden
Joe Francis
John Ensign
John Mayer
Jon Gosselin
Josh Dunham
Kanye West
Levi Johnston
Lou Dobbs
Mahmoud Ahmadinejad
Mark Sanford
Max Baucus
Perez Hilton
Rep. Charlie Rangel
Rep. Joe “You Lie” Wilson
Richard Heene (Balloon Pop)
Rod Blagojevich
Silvio Berlusconi
Someone ELSE (write in comments)
Spencer Pratt
Tareq Salahi (Mr. W.H. Crasher)
Tiger Woods

Posted in Alaska, Cirque du Soleil, Cretins, Donald Trump, Entertainment, Harry Reid, Illinois, International, MGM Mirage, Politics, Sports, TV | 3 Comments

Case Bets: Mohegan Sun, Alabama, Weidner, Dubai & a big bet on MGM Mirage

Could default or bankruptcy be in the offing for Mohegan Sun? The tribal supercasino’s attempts to get out from under an onerous fee arrangement with Sol Kerzner and Len Wolman are not only facing heavy weather, Mohegan Sun is also coming up short on its debt-servicing requirements. A thinning revenue stream doesn’t portend well, either.

We like this guy. As you know, S&G tries to avoid endorsing specific political candidates. But it’s hard to resist someone who describes the State of Alabama‘s current jihad against electronic bingo as “an almost maniacal tilting at windmills.” That’d be Bill Johnson (R), who has clearly given careful scrutiny to the issue.

Though he scarcely sounds like a casino proponent, Johnson suggests untying the Gordian Knot of Alabamian e-bingo by putting it to a statewide vote. He defines the issue as, “whether we should regulate and tax the gaming that’s already here.” While one might not agree with every component in Johnson’s proposed package of regulations (daily loss limits, for instance), by and large it’s both judicious and a big stride in the right direction.

WP WeidnerWeidner everywhere. The former Sheldon Adelson mouthpiece (left) and current Las Vegas Sands scapegoat is being floated as a possible successor to Dan Lee at Pinnacle Entertainment. But if Lee was a loose cannon, Weidner is an out-of-control Sherman tank.

S&G confines itself to one prediction, contingent upon Carl Icahn gaining ownership of insolvent Fontainebleau. We figure Icahn has sussed out the immediate competition and will finish F-bleau in stages, repositioning it as a resort for the $30-$49/night crowd. That’d write finis to the Sahara and Riviera, and could kneecap Circus Circus in the bargain. Just a surmise, based on Icahn’s history as a Vegas operator.

C-CenterHe’s a believer. While many are skittish about CityCenter‘s impact, T. Rowe Price Porfolio Manager Joe Fath has placed a $277 million bet on MGM Mirage‘s prospects for success. He points to a slew of macroeconomic indicators that tell him Americans are ready to spend more and (in an echo of remarks made by Adelson) are willing to pay for luxury — or a fair approximation thereof. Fath also bucks conventional wisdom by saying now is the time to increase ADRs (although the market itself will be the ultimate arbiter of that).

What gives Fath particular credibility is that he was a skeptic regarding both the Station Casinos and Harrah’s Entertainment LBOs, two spectacular busts. As he points out, unlike those two companies, MGM actually had something to show for its $8.5 billion leap of faith that was CityCenter. Harrah’s and Station have … debt and lots of it. While Las Vegas Sands hasn’t gone bankrupt, per Fath’s prediction, it’s far from out of the woods.

Dubai 1990

Where are we? The Vegas Strip in 1975 or Dubai circa 1990?

Donning my CityLife fedora, I look at the fatal attraction between Dubai and Las Vegas, two enclaves of “growth pays for itself” thinking with more in common than a dearth of water. I also catch up with FAYM founder Hal Weller, one of a slew of individuals and and groups that are making Vegas a better place.

Best of the year. None of them played the Strip, I regret to say, but here are the 10 best Vegas shows of 2009. With three “bests,” it was a banner year for Las Vegas Little Theatre, just a few blocks from Venelazzo and just around the corner from LVA HQ. Check out its current season at www.lvlt.org.

Posted in Alabama, Carl Icahn, Charity, CityCenter, Current, Dubai, Economy, Election, Entertainment, Fontainebleau, Harrah's, MGM Mirage, Pinnacle Entertainment, Politics, Riviera, Sahara, Sheldon Adelson, Station Casinos, Taxes, Technology, The Strip, Tribal, Wall Street | 1 Comment

Quote of the Day

tropicana“It’s a New Day at Tropicana Las Vegas.” — signature line on official Tropicana e-mails. Translation: William J. Yung III has left the building.

Posted in Alex Yemenidjian, Columbia Sussex, The Strip | Comments Off on Quote of the Day

Macao’s big bounce

Dr Ho

Why is this man smiling?

Gambling revenue in Macao jumped a whopping 48% last month, as customers left $1.4 billion in casino coffers. No surprise, Stanley Ho‘s casinos continued to maintain their 30% market share, followed by Sands China at 23%. Fighting for a distant third were Wynn Macau (15%), Melco Crown Entertainment (12%) and Galaxy Entertainment (11.5%). Recent gains by MGM Grand appear to have eroded, as the joint venture with Pansy Ho didn’t quite reach the 9% mark. Analysts at J.P. Morgan had only expected 30% growth … prompting one to wonder if this geyser of cash from Mainland China will spur Peking to tighten the monetary pipeline again.

Casino executives like Sheldon Adelson and ex-sidekick William Weidner, who liked to disparage Nevada’s economy and idolize China’s, ought to have given more thought to the Chinese’s government’s ability — and willingness — to micromanage the Macanese economy like a kitchen stove. Unlike, Las Vegas, upward surges in Macao’s casino business are always accompanied by the fretful prospect of another intervention by the not-so-invisible hand of the “control economy.”

Posted in Current, James Packer, Lawrence Ho, Melco Crown Entertainment, MGM Mirage, Pansy Ho, Politics, Sheldon Adelson, Stanley Ho, Steve Wynn | Comments Off on Macao’s big bounce

Stanley Ho vs. MGM Mirage

Whose casino would you rather visit …

Stanley Ho‘s Oceanus at Jai Alai or …

MGM Mirage‘s CityCenter? I’ll bet you’ve never heard a megaresort described as a “campus” before. True, CityCenter has Henry Moore and Maya Lin among its roster of artists. But does it have a glove worn by Michael Jackson? Or Stanley Ho’s giant truffle?

(Thanks to Ian Sutton, of GamingFloor.com, for the inspired juxtaposition. His site also features a video clip of Sheldon Adelson‘s latest “progress” report on Marina Bay Sands. Symbolically, the clip doesn’t play — it just loads interminably.)

Posted in Architecture, Macau, Mesquite, Sheldon Adelson, Singapore, Stanley Ho, The Strip | 3 Comments

Mutiny!

PBPrincess02

One of the dirty little secrets of the “cruise to nowhere” business is that these vessels are crewed with seamen imported from foreign countries. (Americans, despite being citizens of one of the preeminent seafaring nations, apparently aren’t good enough.) So what happens when — as is sometimes the case — one of these gambling ships is beached by bankruptcy? The imported crew is stranded aboard the vessel.

Allegedly owed $180,000 in back pay, the crew mutinied and refused to take the Palm Beach Princess (the former Finnish liner Llamatar, launched in 1964) out to sea. Now, with the ship idled, Continue reading

Posted in Architecture, Boyd Gaming, CityCenter, Current, Economy, Florida, Harrah's, International, MGM Mirage, Ohio, Penn National, Planet Hollywood, Regulation, Riviera, Sahara, Station Casinos, The Strip | Comments Off on Mutiny!

Quote of the Day

McClintock“The question is should they be used indiscriminately on little children and grandmothers … There’s no practical distinction between a full body scan and being pulled into a side room and being ordered to strip your clothing.” — Rep. Tom McClintock (R-CA), on X-ray scanners. Guess which airport is one of the TSA’s six “primary” sites for these see-all devices? That’s right … McCarran International Airport in Las Vegas. Happy New Year!

Posted in Tourism, Transportation | 1 Comment

Party Pooper of the Year

It seems that 2009 can’t slink quietly away without one more Bible Belt prude attempting to rain on gamblers’ parade. The spoilsport in question is South Carolina Attorney General Henry McMaster, who is appealing a ruling that poker is more a game of skill than chance. If Mr. McMaster were to watch even modest amount of televised poker, the need for skill would be obvious. Seems that Palmetto State solons have decreed gambling to be Evil and that applies — if Mr. McMaster gets his way, to a friendly game of poker at your dining room table. From trying to dictate what card games we can play at home to subjecting airplane passengers to degrading X-ray scans, governmental intrusion in the name of our “best interests” has gone way too far.

Posted in Cretins, Politics, Regulation, South Carolina | 1 Comment

Going … going … Gaughan

Having been handed a virtual monopoly on the Mesquite casino market by Nevada regulators, blowhard Randy Black proceeded to run it and his company into the ground. So he entered prepackaged bankruptcy this week and proclaimed victory. And why not? He gets to remain CEO and his primary sidekicks are allowed to keep their jobs, too. “I’m not selling and I am not going anywhere,” he gloats. This does not inspire confidence in Reorganized Black Gaming (yes, that’s what it’s called).

But he has to surrender 90% of the company, with secured creditors getting both cash and equity in the deal. Subordinated debtors have to choose between either the dough or the stock. Either way, they’re getting pennies on the dollar — taking a 72% haircut. Also, the deal broker turns out to be a certain Michael Gaughan. So while Randy Black gets to keep his office, his title and (presumably) his face on TV, it sounds for all the world as though the fate of the Mesquite market is now in the hands of the man behind South Point. If so, that’s a very good thing.

Thank you, dear readers, for the positive holiday wishes you sent to Fasolt, my gargantuan kitty and steadfast pal of nearly 15 years standing. Today, as the gloaming stretched over Las Vegas, I composed S&G Twitter bulletins with Fasolt in my lap and his step-brother, Mr. Bit, sleeping between the keyboard and the computer screen. Life doesn’t get much better than that.

Posted in Animals, Economy, Mesquite, Michael Gaughan, Pets | Comments Off on Going … going … Gaughan

Keep your hands off my slag heap!

If you look up “urban blight,” you’re liable to find images like these, which show the area in which Penn National Gaming wants to build its Columbus, Ohio casino. At present, the casino to be is but a bunch of rubble alongside a rail line — but neighbors are going all NIMBY on Penn. Their solicitude rings a mite hollow, given that they’re only to eager to palm off the casino on somebody else’s neighborhood … somebody whose objections might be just as valid. At least the wasteland Penn presently covets isn’t likely to put slot machines and youngsters into close contact, whereas the neighborhood group would perfectly happy to plunk the casino down at a shopping mall. Like that’s gonna go over real well.

Posted in Ohio, Penn National, Politics | 2 Comments

Case Bets: Casino Jack, Harrah’s, Trump, Recovery?

It’s another sad chapter, in the tattered and disgraceful saga of Sun Cruz Casinos. As you recall, this now-idled cruises-to-nowhere fleet was briefly owned by Jack Abramoff, by dint of a tiny bit of fraud. That’s one of the many crimes that landed Abramoff a well-deserved cell in the federal pen. Unfortunately, the removal of his douchebaggy taint has failed to improve Sun Cruz’s fortunes.

It should be a snap for Harrah’s Entertainment to pick up Planet Hollywood if it keeps holding rummage sales. The next one is tentatively slated for May, so book your rooms now.

Although he gets to continue suing various and sundry Pennsylvanians for denying him a gambling concession, it’s not total victory for Donald Trump. The obstreperous Trump has been enjoined from thwarting development of SugarHouse and the interminably delayed Foxwoods project. Philadelphia has lost years and countless millions, due to its inability to build its two allocated casinos in a timely fashion. The removal of a Trump-shaped obstacle, while hardly a decisive victory, is cause for relief nonetheless.


Higher ADRs
and sold-out hotels mark an auspicious beginning to 2010. Locals properties are doing especially well — particularly those with proximity to the California drive-in market. (Not so good for Aliante Station and Red Rock Resort, sitting out there on the far northern periphery.) Although LVA‘s research department found the Flamingo to be an early sellout for for New Year’s Eve, the R-J says rooms are still to be had — and relatively affordable, too. No surprise that Caesars Palace and Bellagio are in heavy demand, but I suspect aggressive discounting and incentive packages have a lot to do with Aria being at capacity.

If one views the all-time-highs of 2007 as an aberration and not an entitlement, you could even make the argument that Vegas is back to something resembling normal — allowing for the recent dilution of the market with Aria, Vdara and Mandarin Oriental. Unfortunately, Consumer Electronics Show week, usually a tower of economic strength (I’ve heard of CES attendees having to stay as far out as Laughlin, God help them) is more like a kick in the ass … and not in a good way. We win some, we lose some.

Posted in Current, Donald Trump, Economy, Florida, Harrah's, Laughlin, MGM Mirage, Neil Bluhm, Pennsylvania, Planet Hollywood, Station Casinos, The Mob, The Strip, Tribal | Comments Off on Case Bets: Casino Jack, Harrah’s, Trump, Recovery?

Quote of the Day

“After cutting salaries and curtailing benefits for employees across the board, Mohegan Sun proceeded with a $44.9 million renovation of its Winter Entrance and an adjacent parking garage …” — from a year-end wrapup of Connecticut‘s casino-revenue woes.

Posted in Economy, Tribal | Comments Off on Quote of the Day

Good news, bad news

Analysts at J.P. Morgan report that rates for mid-January (1/17-23) are +7% from the same period last year, mostly on the strength of better midweek ADRs. Unfortunately, this increase comes against a prior-year period when rates tumbled 38% … but you’ve got to start somewhere.

Harrah’s Entertainment (+25%) and Las Vegas Sands (+19%) are the big winners in the ADR race. Looking ahead, the first quarter of 2010 looks soft or, at best, flat. However, if that means our long slalom has finally bottomed out, that’s an overdue piece of good news.

Posted in Current, Economy, Harrah's, Sheldon Adelson, Wall Street | Comments Off on Good news, bad news

Back on the air

After a Yuletide hiatus occasioned by the need to relocate S&G‘s offsite base of operations (meaning that I can now boast of a bedroom window with a view of the Tropicana), I’m back and scrambling to catch up. My new home office has bars on the window and I’m writing this as I listen to Johnny Cash at San Quentin. Hmmmm …

(Let’s hope Cirque du Soleil never gets its clown mitts on the Johnny Cash catalog. Imagine the musical emasculation that would result.)

Moving the accumulation of 11 years in Las Vegas (including a pile of books by Vegas-centric authors Lee Barnes and David Kranes) has been no small enterprise. Anyway, I’d better make a go of this journalism thing because, after spending yesterday wiping baseboards and mirrors I realize that I’d be a complete failure as a janitor.

But while the Significant Other and I were schlepping boxes in and out of storage, the governor of Nevada had nothing better to do than this. Oy vey!

Posted in Alex Yemenidjian, Cirque du Soleil, Current | 2 Comments