Quote of the Day

“Turns out Newton isn’t the only Wayne in town with shot vocal cords.” — DailyFiasco.com, reporting on Wayne Brady‘s cancellation of all remaining 2009 performances of Making %@it Up at the Venetian. We can’t imagine an under-the-weather Brady sounding worse than a purportedly healthy (but vocally ruined) Wayne Newton.

Posted in Current, Entertainment, Sheldon Adelson, The Strip | Comments Off on Quote of the Day

Trouble in River City

River Place

In a shocking development that’s bound to set tongues a-wagging, Pinnacle Entertainment CEO Dan Lee has “resigned to pursue other business interests” (industry-speak for “Don’t let the doorknob hit you in the butt”). The buzz is that Pinnacle’s strategy was creating friction between Lee and his board, and the former’s intemperate behavior at a St. Louis County Council meeting provided the flashpoint. Lee’s public meltdown clearly made him expendable and Pinnacle has wasted no time in pushing him under the regulatory bus. (The just-barely tenable status of Pinnacle’s Admiral riverboat doubtless contributed immensely to whatever other stresses Lee has been feeling.)

Other factors might have un-endeared Lee to his board: a slow ramp-up of Lumiere Place in St. Louis, for example. Lee was like those of us who gorge themselves at the buffet and regret it afterward. He had another St. Louis-area casino in train — River City (above) — as well as two in Louisiana. And then there was the ongoing embarrassment that was Pinnacle’s Atlantic City project. Lee was too quick to close and demolish the old Sands, and ruffled too many feathers when trying to expand Pinnacle’s Boardwalk footprint.

The eventual mothballing of the A.C. project made it a subject of local ridicule, culminating with the indignity of city fathers mulling the prospect of using it for a parking lot (with the encouragement of Harrah’s Entertainment‘s Atlantic City czar, Don Marrandino) without consulting Pinnacle first. Ironically, for someone who made his name as the Mirage Resorts apostle of fiscal discipline, Lee’s tenure at Pinnacle displayed rashness, a tendency to overspend and/or overplan. Only the suicidal determination of Columbia Sussex to have Aztar Corp. at any cost whatsoever (even to the point of bidding against itself) saved Pinnacle from grossly overpaying for that set of casinos.

Ever-unsentimental, stock pickers rejoiced in the news, rewarding PNK with a runup in its share price. Wall Street speculation has Pinnacle putting both its hard-won Baton Rouge riverboat and its second Lake Charles casino onto the back burner (again). Not only is that a blow to both communities but the timing is cruel, as the two casinos had only just re-emerged from a protracted holding pattern. J.P. Morgan analysts like the idea “which could allow the company to be more of a net free cash flow generator,” although they prefer Pinnacle’s expansion-oriented strategy to Boyd Gaming‘s pursuit of Station Casinos and Penn National Gaming‘s quixotic interest in Fontainebleau.

So the hunt is on for a new CEO and he or she can’t arrive soon enough. Sans Lee, Pinnacle’s fate has been entrusted to interim chairman Richard Goeglein, who helmed (read: bumbled) the famously disastrous opening of the new Aladdin (now Planet Hollywood) as its first CEO. Stepping into Lee’s shoes is casino relic John Giovenco, whose last operational post in the industry was as CFO of Hilton Gaming Corp. … back in 1993. At least some reassurance can be had from the presence of former Boyd CFO Ellis Landau, who’s only a couple of years removed from day-to-day operations.

Pinnacle’s likely criterion for a prospective CEO is said to be someone from a Harrah’s-like, regionally focused operation. As Morgan notes, blackly, “Given a large number of displaced gaming executives, we don’t think there is a shortage of talent out there to replace Mr. Lee.” Names that come to mind just cursorily include Karen Sock, late of Harrah’s (who was to have been entrusted with the Biloxi “Margaritaville” project before that went into a deep freeze), former Hard Rock Biloxi President Joe Billhimer and perhaps even former Caesars Entertainment CEO Wallace Barr, forced out by Harrah’s takeover of that company. Let the games begin!

Posted in Atlantic City, Boyd Gaming, Columbia Sussex, Current, Economy, Fontainebleau, Harrah's, Louisiana, Missouri, Pinnacle Entertainment, Planet Hollywood, Politics, Regulation, Station Casinos | 8 Comments

Use found for The Harmon

Yes, “Dubai’s Diminuendo,” the “Harmonini,” Baldwin’s Bump, whatever you want to call it, has been given a purpose in life. Strip hotel guests awoke in the wee hours of Saturday morning to behold the following:

Harmon wrap

If nothing else, the truncated Harmon tower, which was to have housed a boutique hotel and 207 condos (before being lopped off at the midway point), turns out to be good for something … being wrapped with a mammoth sign for Cirque du Soleil‘s Viva Elvis. It may not be the highest and best use of the property, which won’t be finished for another year (perhaps never, according to one local journo), but MGM Mirage has got to make the place earn its keep somehow. (Photo by JeffInOKC)

Posted in Architecture, Cirque du Soleil, CityCenter, Current, Entertainment, Marketing, MGM Mirage, The Strip | 1 Comment

Quote of the Day

crissangel-logo“If not exactly humbled by the show’s critical drubbing and lackluster sales, [Criss] Angel, now the butt of jokes by most other Strip comics and magicians, seems less hubristic than he did a year ago. There’s less swagger and no chest-baring (Angel appears to have put on a few pounds). He looks like what he is — a cape-wearing Long Island schlub with a tragic Jennifer Aniston haircut.” — Las Vegas Sun theatre critic Joe Brown, reviewing an apparently un-“fixated” Believe, the Cirque du Soleil vanity project that, against all odds, is limping into its second year at Luxor.

Posted in Cirque du Soleil, Cretins, Entertainment, MGM Mirage, The Strip | Comments Off on Quote of the Day

Best idea of the week … or year

CityCenterFrom our Today’s News feed:

Until now, MGM Mirage exercised a policy of having each property in the group compete with the others, as if they were totally independent competing entities. It was a strategy designed to keep salespeople ‘on their toes,’ but it’s one that new CEO Jim Murren feels has put the company at a competitive disadvantage. Hence, MGM Mirage will now follow the same model that Harrah’s has employed successfully for years, with group sales agents cross-selling rooms, restaurants, and entertainment options throughout the entire group, based on the customer’s needs and preferences.

Bravo! With CityCenter (above) about to plunk thousands of additional rooms and scores of new amenities on the market, it’s high MGM’s casinos began working together rather than against each other. (The old silo-oriented business model never made a lot of sense to me but it seemed to work during pre-depression years.) Kudos to Murren for having the huevos to concede that the old ways weren’t working and it was time to steal a page from the competition. Many another CEO would let his ego get in the way of necessary change.

From Bette to Achmed? According to one rumor making the rounds, Caesars Palace will go drastically down-market when Bette Midler wraps up her show on Jan. 31. Writes an LVA subscriber:

I know know who will replace [Midler] … Jeff Dunham and his great list of puppets! I received in the mail yesterday an offer from Caesars for two free Jeff Dunham tickets for late November. The correspondence says these performances are his inaugural performances, as he is scheduled to take over the Colosseum beginning toward the end of January, for 2010. It’s been years since I have seen anything funnier than Jeff and his puppets, especially Acchhhhhhmed, the Dead Terrorist!  Makes me break up with laughter simply thinking about it!

However, the Las Vegas Review-Journal‘s Mike Weatherford hypothesizes that Dunham will be filling gaps in the Colosseum schedule, as Harrah’s continues to wait for Céline Dion to decide whether she wants to return to The House That Celine Built.

Good for Gibbons. The Silver State is one of the worst in the nation, when it comes to recycling and we’ve got the landfills to prove it. Well, Gov. Jim Gibbons proposes to do something about that and make recycling a top priority for Nevada. It sure beats being “Trash Compactor for California.” It’s a splendid idea and I hope we’re not too far gone budgetarily to pull this thing off.

Wasn’t that clever? The newly ratified Ohio casino industry just got a little bit more incestuous. It’s been revealed that Lakes Entertainment CEO Lyle Berman made a last-minute $4.3 million cash infusion into the pro-casino campaign. The quid pro quo is that Berman gets the option to buy 10% of all four casinos that voters improved. If these cozy, interlocking ownership agreements don’t raise regulatory eyebrows, nothing will. Remember that Berman’s own one-casino proposal was resoundingly rejected by Ohio voters last year, with the help of a media blitz funded by one of his new business partners, Penn National Gaming.

Scarcely a week passes that we don’t hear about how vexed Steve Wynn is with all the empty land and unfinished projects surrounding Wynncore. Perhaps he might take a minute to what it’s like for his neighbors in northwest Las Vegas to have to stare at a big, fenced-off empty lot — a little residential project that El Steve began on a grand scale, then abandoned. The subject of Wynn’s wasted space came up in conversation recently with City Councilwoman Lois Tarkanian, who theorizes that Wynn bought the area with the intention of building a master-planned set of homes for his descendants. Now it’s the Alta Drive version of El Ad Properties‘ comatose Plaza project for the old New Frontier site.

Posted in California, CityCenter, Current, Economy, Entertainment, Environment, Harrah's, Marketing, MGM Mirage, Ohio, Penn National, Plaza, Steve Wynn | 2 Comments

Greek Isles, buy a clue

greek_isles_hotel_casinoIf anybody’s holding a vote on Las Vegas’ dullest casino Web site, surely the runaway winner will be that for the Greek Isles. It’s so boring, so unimaginative, so Midwest riverboat casino of 12 years ago that it practically yawns in your face. Take, if you must, the page for resident magician Antonio Casanova. (Yes, he’s supposedly a descendant of that Casanova.)

Notice anything missing? Like maybe ticket prices? Show times? Seriously, Greek Isles, if you ever want to be known as something other than the casino equivalent of the walking dead, you’ll need to put in a smidgen of effort. Did you pay for that site? I have friends who create better Web pages just for fun. Yes, making sport of the Greek Isles is like tripping a dwarf, but somebody’s got to do it.

Posted in Entertainment, Technology, The Strip | 3 Comments

Quote of the Day

“It appears the U.S. gaming pie is not getting bigger, and the slices continue to get smaller.” — Moody’s analyst Keith Foley on the impact of Ohio casinos on an already-shrinking revenue base. Southern Indiana looks to get hit especially hard.

Posted in Current, Economy, Indiana, Ohio, Wall Street | 1 Comment

The evils of bingo; Wynn’s Aqueduct exit

oasis-hotelAmerica’s sixth-largest casino is in rural Alabama and it commands hotel prices comparable to CityCenter. Its 6,400 Class II devices mean that VictoryLand (above) is one gargantuan e-bingo hall. Due to the state’s patchwork set of laws, e-bingo is legal in Alabama except where it isn’t. Gov. Bob Riley, a former beneficiary of Jack Abramoff‘s sleazy dealings, is trying to leverage county-specific court rulings into a statewide fatwa.

Ron SparksRiley opponents on both sides of next year’s gubernatorial race — including Agriculture Commissioner Ron Sparks (left)– are moving toward the position that Alabama should legitimize, tax and regulate e-bingo or at least put it to a vote of the people. Would-be Riley successor Judge Roy “Ten Commandments” Moore is all for exorcising this demonic bingo from the state, so the governor’s got one of the best minds of the Dark Ages in his corner, at least.

Did Harrah’s Entertainment sabotage two riverboats on Lake Charles? So claims the plaintiff in an antitrust suit. The U.S. Court of Appeals, fifth circuit, was unpersuaded and heaved the case overboard.

Speaking of Harrah’s, a dog track it covets in Rhode Island has gone to ’round-the-clock casino gambling. The locals aren’t going to like this one little bit but once lawmakers predicated their budget on squeezing another few million out of Twin River, the fix was in. The expanded schedule, of course, makes Twin Rivers’ license that much more desirable.

One Isle less. A former Isle of Capri casino in the Bahamas changes hands this week, closing yet another chapter in Isle’s ill-fated courtship of the international casino market.

Singapore’s casinos are still months from opening but that’s not stopping the government. It’s already working hard to discourage casino patronage. All the more reason for boundless optimism, no?

Steve Wynn’s abrupt departure from the bidding over Aqueduct Park may have less to do with the $200 million upfront fee than with irascibility brought on by neighborhood activists and gubernatorial whims. It’s a net loss for New York, as Wynn Resorts was one of the most financially shipshape applicants and the candidate least likely to stint on quality.

Posted in Alabama, Cretins, Current, Economy, Harrah's, International, Isle of Capri, Louisiana, New York, Pinnacle Entertainment, Politics, Racinos, Singapore, Steve Wynn, Taxes | 1 Comment

Wynncore: the best revenge

Screen shot 2009-11-02 at 9.32.07 PMIf Wynn Resorts legal beagle Kevin Tourek didn’t make a complete fool of himself with his self-aggrandizing cease-and-desist letter to VegasTripping.com, then VT.com owner Chuck Monster finishes the job with a lengthy and subtly humorous rebuttal. In a lightly ironic smackdown of Mr. Tourek, Mr. Monster offers him the Wynncore.com domain name for the princely sum of $22.95 — but only if Steve Wynn personally signs the check. The next logical step in this farce will be for Wynn Resorts to start haggling over the price.

Of course, in terms of Tourek’s time and the cost of his keen legal acumen, Wynn has already splurged far more than that domain ever could be worth. I’m sure the shareholders are grateful that this is how their money is being spent.

CityCenter kills quarter. The big writedown of CityCenter‘s value singlehandedly turned MGM Mirage‘s 3Q09 from a profit to a loss. Not even a 21% decline in room revenue had such a drastic effect. It seems like just yesterday that hotel rooms were a loss leader. Not anymore and probably never again. The megaresort trend took care of that.

The Borscht Belt is back thanks to the casino industry. Not that I’d travel up to the Poconos (or even across the street) to hear Frank Sinatra Jr. But many do and who am I to argue with what floats their boat?

Lily Tomlin comes to town, playing the Strip for the first time ever. Unfortunately, we lacked space for more than the merest smattering of Tomlinesque reminiscences. That’s something that may have to be redressed in Web-only form.

Posted in CityCenter, Current, Encore, Entertainment, MGM Mirage, Pennsylvania, Steve Wynn, Technology, Tourism, Wall Street | 1 Comment

Much ado about something?

Vive le Roi! After much coy hugger-mugger, Cirque du Soleil has just announced the name of its Aria show is … wait for it, people … Viva Elvis. (I cannot decide if the uninspired logo, which looks like a Ronco LP cover, is simply lame or somebody’s notion of irony.) Mon dieu! Quelle choc … mais non! It’s not like Steve Friess didn’t break this story on The Strip Podcast weeks and weeks ago.

bette-picElvis in, Bette out. You’ve got three months left to see Bette Midler in The Showgirl Must Go On. This Vegas revue to end them all rings down the final curtain on Jan. 31. Speculation has her going to Wynncore but it doesn’t sound that way to me.

If you’re not an S&G subscriber, you may have missed an eyebrow-raising story that subscriber Toland posted in the “Comments” section (and which another reader forwarded me privately). It seems that Pinnacle Entertainment CEO Dan Lee let his understandable desire to dominate the St. Louis market get the better of him Tuesday night. If the St. Louis County Council votes in favor of a rival project’s rezoning request — which it did — it’s one more nail in the coffin of Lee’s plans to ship the Admiral up to the Chain of Rocks Bridge, drop anchor there and protect the northern flank of his St. Louis market.

Intemperate behavior like that which is being alleged isn’t going to help his cause, either, although with the matter now in the hands of the courts, the Tuesday-night melodrama could easily wind up being much ado about nothing. In any event, it doesn’t square with the calm and circumspect image Lee has cultivated for, lo, these many years.

Posted in Cirque du Soleil, CityCenter, Current, Encore, Entertainment, Harrah's, Missouri, Pinnacle Entertainment, Regulation, Steve Wynn, The Strip | 1 Comment

“It’s a bargain hunter’s paradise”

CityCenter 5

So sayeth our own Anthony Curtis, toward the end of a superb MSNBC analysis of the impending impact of CityCenter. Other industry moguls, including Sheldon Adelson and Steve Wynn, take a cautious but hopeful view. Even the normally optimistic Bill Lerner of Union Gaming Group tempers MGM Mirage CEO Jim Murren‘s euphoria just a bit, projecting 5% visitation growth next year, as opposed to Murren’s 10% prediction.

They say it’s spinach and they say to hell with it. Or words to that effect. Kansas casino arbitrators are losing enthusiasm for the resorts proposed by Penn National Gaming and Lakes Entertainment, respectively. In a “If you can’t beat them, join them” move, Penn bought Cordish Gaming out of the Kansas Speedway casino proposal and Lakes merged with some of its Wichita-area rivals. But with only two bids on the table for two licenses, the Kansas Lottery Board is underwhelmed and may go back to Square One. For the third time.

The impasse continues. A farcical attempt to bring slots to the greater Baltimore area continues to be a clash of the obstinate vs. the stubborn. A latest attempt to cut the Gordian Knot appears to be going nowhere. Ann Arundel County is in serious danger of frittering a major economic boost away.

Apropos of nothing, last night’s season opener of V was fairly awesome. I’m just sayin’. But only four episodes and then a long hiatus? Gimme a break, ABC! Or are you copying the SciFi, er, SyFy Channel playbook. Yeah, them’s some winning moves. (Not.)

Posted in CityCenter, Cordish Co., Economy, Kansas, Maryland, MGM Mirage, Penn National, Regulation, Sheldon Adelson, Steve Wynn, Tourism, TV, Wall Street | 2 Comments

Wynn bails on N.Y.

As they come into the backstretch on the bidding for a racino at New York‘s Aqueduct Racetrack, one contender has pulled out of the race: Steve Wynn. Did he balk at the $200 million upfront fee? Penn National Gaming basically set the ante and now Gov. David Paterson wants its rivals to match it. Even without Wynn in the running, the Aqueduct steeplechase still features a field of thoroughbreds, including MGM Mirage and Harrah’s Entertainment, plus a couple of up-and-comers.

Among the latter is the Seminole Tribe. Will Empire State politicos take sides in an intra-Florida dispute (where, in a related story, parimutuel casino operators find themselves with an unlikely new threat: Miami International Airport)?

Try, try again. Who says the recession hasn’t been good for Golden Nugget owner Tilman Fertitta? A falling market has enabled him to knock $6.25/share off his LBO offer for Landry’s Restaurants. A tidy $1.2 billion nets him sole control of two casinos and a plethora of restaurants.

OB-BB375_Macau__20080221142644

If Peking is curbing access by its citizens to Macao, the effects have yet to be felt. October revenue jumped 42% year/year and 18% from September. While Venetian Macao lost market share, that was more than offset by growth at Sands Macao (above, up 13%) and especially at newbie Four Seasons Macao & Plaza Casino (38%), driving a huge revenue increase. The latter opened considerable daylight between Sands (24% market share) and Wynn Macau (12%), although Stanley Ho remains #1 in the region.

Posted in Current, Downtown, Economy, Florida, Harrah's, Macau, MGM Mirage, New York, Racinos, Regulation, Sheldon Adelson, Stanley Ho, Steve Wynn, Tilman Fertitta, Transportation, Tribal, Wall Street | Comments Off on Wynn bails on N.Y.

From the Twitter feed

@VegasFunFacts: “McCarran Airport was named after former NV Sen. Pat McCarran, known for his anti-communism and for lobbying fed funds and projects for NV.”

(Translation: Choke on it, China-loving, guvmint-bashing Steve Wynn.)

@jccarcamo: “Republicans on a special committee considering the Seminole gaming compact have pronounced it all but dead. Meanwhile, some of them, including previous anti-gamers, now want to allow full-fledged commercial casinos in counties that approve them.”

(Translation: Since the state GOP would rather dictate to the Seminoles than negotiate with them, it’s decided to blow off $150 million or so in annual revenues and maybe, possibly find it elsewhere. A potentially huge setback for Gov. Charlie Crist.)

@davidbadash: “Jesse Ventura on CNN on civil rights: ‘If you put it up to the vote of the people, we’d have slavery again.’ Scary!”

(Translation: Jesse still hasn’t learned to mince words, God bless him.)

@GreenVegas: “The temperature in Las Vegas is due to hit 85 degrees this afternoon, which would make it the warmest Nov. 4 in 33 years.”

(Translation: Maybe you should have packed those swim trunks, after all.)

Photo bonus (via Steve Friess): Is Bellagio now the forlorn little stepsister to shiny new CityCenter?

Posted in CityCenter, Election, Florida, MGM Mirage, Politics, Steve Wynn, Taxes, The Strip, Tourism, Transportation, Tribal | Comments Off on From the Twitter feed

Quote of the Day

“It’s pretty obvious that the Ohio electorate bought into the whole culture of despair that’s going on with the economy.” — casino opponent and Ohio Policy Roundtable member David Zanotti, bewailing last night’s ratification of Class III gambling in the Buckeye State. Scarcely had the votes been counted when Republican legislators announced plans to jam Dan Gilbert and Penn National Gaming up with a 60% tax rate (voters approved a 33% levy).

Posted in Current, Economy, Election, Ohio, Penn National, Politics, Taxes | 1 Comment

Take us on the road

Not only can you subscribe to the RSS feeds for our blogs, we also have mobile applications that can be accessed at jscott.lvablog.mobi or dmckee.lvablog.mobi. Just scan the 2-D barcode to your upper right and you ought to be on your way.

Movable Buffet, R.I.P. One of S&G‘s Seven Essential Web Sites is no more. The demise of Richard Abowitz‘s highly entertaining chronicle of the eccentricities of Sin City is not only a benchmark of Las Vegas’ decline but that of the Los Angeles Times, a great j0urnalistic institution that has suffered one indignity after another since the Chandler family cashed out its ownership.

Posted in Current, Technology | 2 Comments

Meet the new Cincinnati Kid

danielgilbertFor our purposes, the main headline comes from Ohio, where Issue 3 passed amid heavy voter turnout — if not by the wide margin pollsters had forecast. (At least they didn’t screw the pooch like all those pollsters who had the New Jersey gubernatorial race a “tossup” when it wasn’t even close.)

This means that regardless of how the Cleveland Cavaliers‘ season goes, owner Dan Gilbert (left) is last night’s big winner. Now he and Penn National Gaming get to divvy up the Buckeye State betwixt themselves, with Gilbert getting the Cleveland and Cincinnati markets. Penn, meanwhile, has committed $600 million to casino development in Columbus and Toledo, even if the good burghers of Columbus wanted nothing to do with it. (That tune will change when the 33% tax rate starts yielding dividends.) Analysts at J.P. Morgan estimate that Issue 3’s passage will translate into 4,500 new-slot sales for IGT and approximately 2,000 apiece for Bally Gaming and WMS Industries.

The Ohio Supreme Court having run a constitutional cart and horses through Gov. Ted Strickland‘s plan to enable racinos, Buckeye State voters would appear to have delivered the coup de grace. With a Gilbert/Penn duopoly now ratified at the ballot box, Strickland will have some heavy — and perhaps impossible — lifting ahead of him if he’s to further expand gambling in Ohio. And with a distinguished GOP challenger (John Kasich) breathing down his neck, Strickland probably won’t want to spend additional political capital on so divisive an issue. Then again, if Kasich is to deliver the tax cuts and educational improvements he’s promising, he may need to revisit the racino issue himself, a couple of years down the pike.

In New Jersey, Governor-elect Chris Christie (R) is promising tax cuts for everyone. Given that New Jersey’s casino tax rate is the second-lowest in the nation, we’ll see if Christie doesn’t somehow find a way to make an exception there. Or, in lieu of either cutting or raising casino taxes, perhaps Christie will throw his lot in with the horsey set and endorse their annual we-need-racinos whinge (even though horse tracks enjoy a subsidy from the state’s casinos).

If that’s the case, Christie will become The Man Who Killed Atlantic City. He inherits a parlous budgetary and economic situation from Gov. Jon Corzine (D) and will have to pay for all those tax reductions somehow. New Jersey has the nation’s best casino regulatory apparatus, so here’s hoping that Christie’s scissors don’t eviscerate it as he takes his shears to the state budget.

Good luck to Christie if he’s to keep all those plates spinning. You couldn’t pay me to take his new and unenviable job.

Posted in Atlantic City, Bally Technologies, Current, Economy, Election, Horseracing, IGT, Ohio, Penn National, Politics, Racinos, Regulation, Taxes, WMS Industries | 2 Comments

From the mailbag #11

A reader clipped the following from a recent Las Vegas Sands 10-Q. The passage in question refers to a disputed $400,o0o worth of work performed on Venetian President Rob Goldstein‘s pied a terre. No wonder Mr. Goldstein lined up on Sheldon Adelson‘s side of the recent power struggle within Sands — if he’s got a CEO who’s willing to make shareholders eat $400K in personal expenses that were not carried out “in an appropriate manner.” Where can the rest of us find bosses like that?

ITEM 5 — OTHER MATTERS
Transaction with an Executive Officer
As previously disclosed, during 2008, a subsidiary of the Company performed work at a home owned by Robert G. Goldstein, the Company’s Executive Vice President. Mr. Goldstein believed, and the Company acknowledged, that some of the work was not performed in an appropriate manner. The matter was referred to an independent expert, who concurred about the quality of the work and concluded that Mr. Goldstein should not be obligated to pay the $0.4 million incurred by the Company for costs and overhead on the job. These findings have been accepted by the Company and Mr. Goldstein.
Posted in Sheldon Adelson, Wall Street | 1 Comment

Case Bets: Kansas, Ohio & Singapore

Lyle Berman‘s casino project near Wichita is losing momentum. If you can’t afford to build even a 100-room hotel, times are dire indeed. Union Gaming‘s Bill Lerner makes the counter-argument that some casino is better than no casino. Raving Consulting pans Berman’s project, then gives it a thumbs-up (sort of like those fickle judges on Dancing with the Stars). A hotel of “something like a Hampton Inn quality” doesn’t spell “a true destination resort” to me, but expectations in Kansas have fallen so low they’re nearly prone on the ground by now.

gilbert-casinoj

The suddenly ubiquitous Berman also turns up in connection with the big casino push in Ohio. His own proposal having been voted down last year, Berman now finds himself on the outside looking in. The latest polling data shows Issue 3 (the casino plebiscite) headed for a landslide-sized victory, with 58% in support. The staunchest casino opponents are senior citizens and Republicans are of only modest help, being split right down the middle on Issue 3.

Unfortunately for the opposition, it hasn’t bothered to roll out one of its strongest potential arguments: Namely, by passing Issue 3, Ohioans will enshrine a duopoly (between Penn National Gaming and sports mogul Dan Gilbert) into the state constitution. S&G tends to frown upon that sort of restraint of trade but voters faced with high unemployment numbers are unlikely to overmuch concern themselves with such free-market niceties.

LVSANDS SINGAPORE CASINO

Singapore is banking on its two new casinos to deliver big time — as in growing visitation by seven million people from 2008’s 10 million. They’d better, since Singapore‘s paternalistic government is going out of its way to discourage its own citizenry from gambling. (The annual casino subscriptions mentioned in the article come with an exclusivity clause. So if you sign up with Resorts World Sentosa, you can’t play at Marina Bay Sands [above] for the duration of the year.) One analyst is sufficiently optimistic to predict 30% EBITDA or better. Although Las Vegas Sands frittered away its head start over Genting Bhd (the more established brand name in the region), its sleek $5.4 billion resort may wear better over the long haul over Genting’s cramped and tacky-sounding theme park.

Posted in Current, Genting, Kansas, Ohio, Penn National, Politics, Sheldon Adelson, Singapore, Tourism | 1 Comment

From the worst to the best

Having already polled LVA readers about the worst Vegas-themed movie (Mars Attacks! scored a stunning upset over Showgirls), we’re now going to ask them to choose the best gambling-themed film. So far, the suggested titles are:

The Hustler, its sequel, The Color of Money, Robert Altman‘s California Split, James Toback‘s Dostoevsky-inspired The Gambler, 21 (Kevin Spacey doing his low-rent Satan thing), Maverick, The Sting, The Cincinnati Kid, Casino (Martin Scorcese strikes again), Kaleidoscope (1966), A Big Hand for the Little Lady, Viva Las Vegas, Ocean’s 11 (the Rat Pack one), Rounders and Croupier.

The latter, directed by Mike Hodges and starring Clive Owen in his breakthrough performance, would have my vote … but what have we forgotten? Suggestions, please!

Posted in Movies, The Strip | 3 Comments

Mermaids in Macao

Some lovely footage, mostly for the heck of it, although indicators continue to suggest that Steve Wynn got into the Hong Kong bourse at just the right moment and Sheldon Adelson will miss the tide.

Posted in Economy, Lawrence Ho, Macau, Melco Crown Entertainment, Sheldon Adelson, Stanley Ho, Steve Wynn | Comments Off on Mermaids in Macao