Quote of the Day

Posted on October 27, 2009 by David McKee

Younger Wynn “The environment in China is much more free than here. Do they feel they are being deprived of their human rights? No.”  — Steve Wynn, doing his best Sheldon Adelson impersonation.

Posted in Current, International, Macau, Politics, Sheldon Adelson, Steve Wynn | 2 Comments

Adieu F-bleau, hello Hollywood?

Posted on October 26, 2009 by David McKee

fontainebleau-resort

Look what just fell into the S&G mailbag:

Beginning January 1, 2010 Penn National Gaming will partner with RPM Advertising to develop and execute a brand identity for Hollywood Casinos.  The full service assignment will incorporate research, brand development, media planning/buying, creative execution, production services and direct marketing.  Penn National, one of the top five gaming companies in the world, owns and operates seven Hollywood Casinos across the country including facilities in Aurora, IL; Bangor, ME; Baton Rouge, LA;  Grantville, PA; Lawrenceburg, IN; Bay St. Louis MS; and Tunica, MS.

Forgive me if I have a coughing spasm after reading Penn National describe itself as “one of the top five gaming companies in the world.” I suppose it would depend on your definition of “top” (number of facilities and/or employees, market cap, etc.) but in an industry that contains MGM Mirage, Harrah’s Entertainment, Wynn Resorts, Las Vegas Sands, Boyd Gaming, Station Casinos and even woebegone Trump Entertainment Resorts, the best Penn could hope for in terms of name recognition would be eighth place. (Enter RPM, stage right.)

As for the marketing alliance, given the timing of the belated decision to try and unify the brand, it looks like Penn is going to try and do a Harrah’s in reverse: acquire a Strip property (Fontainebleau) and then create a company-wide brand-loyalty program to incentivize customers to visit its shiny new megaresort.

Sounds a bit cart-before-horse to me but, after today’s bulletin, it’s no stretch of the imagination to suggest that F-bleau could soon become Hollywood Las Vegas or some close variant thereof. At least in terms of brand equity, it would represent a step or two up from F’bleau, whose name recognition factor is now entirely negative.

Green shoot? Weekday room rates for early December at Vdara have nudged upward to $145/night (from $129) according to J.P. Morgan analysts.

cheryl-burke_t400What’s wrong with this picture? (Well, there’s nothing wrong with that one.) The media night for Wayne Newton‘s new Tropicana show, Once Before I Go (could we have that in writing?) looks more like a Dancing with the Stars tour stop. In addition to former contestants Sabrina Bryan and Jennie Garth, four DWTS regulars — including Cheryl Burke (left) and Kym “Tina Sparkle” Johnson — will be on hand.

Except for Ms. Johnson, who’s presumably in town to rehearse current partner Donny Osmond, the quartet is available because they’ve all been eliminated. (For instance, Alec Mazo helped Olympic swimmer Natalie Coughlin dance her way to a premature exit.)

Trouble is, they’ll be in the audience and the Wayner will be onstage. Wouldn’t you prefer it the other way around? And since Newton is strictly a short-term proposition for the Trop (six months and out), would it be too much to hope for a Vegas offshoot of DWTS as his successor?

Posted in Alex Yemenidjian, Boyd Gaming, CityCenter, Current, Donald Trump, Economy, Entertainment, Fontainebleau, Harrah's, Marketing, MGM Mirage, Penn National, Sheldon Adelson, Station Casinos, Steve Wynn, The Strip, TV | 1 Comment

Ya think?

Posted on October 26, 2009 by David McKee

From the latest news bulletin "blasted" by the Las Vegas Review-Journal:

"Las Vegas police are investigating a shooting on Sahara Avenue near Nellis Boulevard in which a man was struck in the head by gunfire today.

"Police spokesman Ramon Denby said the man appeared to be seriously injured."

No kidding.

Posted in Boulder Strip, Current | Comments Off on Ya think?

Quote of the Day

Posted on October 26, 2009 by David McKee


Moral: A posh accent may make you sound smart but does not confer actual knowledge upon you.

Posted in Current | Comments Off on Quote of the Day

Quote of the Day

Posted on October 26, 2009 by David McKee

"If C.C. Sabathia starts game one of the World Series, the Yankees will know they have won tonight." — Fox Sports baseball analyst Tim McCarver, sinking to bathyspheric depths of belaboring the obvious, early in Sunday's game six of the ALCS. (The Yankees won and it probably won't take until Wednesday night for them to realize it.)

Posted in Baseball, Current, New York, Sports, TV | Comments Off on Quote of the Day

Quote of the Day

Posted on October 23, 2009 by David McKee

“Steve Wynn was the worst offender on that score. Last year, he used his aircraft for a $1 million of personal travel, which Wynn [Resorts] shareholders paid for. To do $1 million worth of travel, I worked it out that you’d have to fly to Hawaii and back every week for a year to rack that kind of a cost up.” — investor activist Eric Jackson, founder of Ironfire Capital, on the subject excessive perks in the casino industry.

Posted in Current, Economy, Steve Wynn, Transportation, Wall Street | Comments Off on Quote of the Day

Programming notes

Posted on October 23, 2009 by David McKee

The time has come, the walrus said, to switch over to WordPress, so regularly scheduled S&G mirth and merriment will be temporarily suspended whilst we learn the new setup. My apologies for the temporary lack of service.

Secondly, thanks to those of you who have been e-mailing Question of the Day suggestions. However …
… the keeper of the QoDs, Webmistress Jessica, requests that you fine ladies and gentlemen use the regular question-submission form (found here) rather than employing S&G as a back channel. I apologize if this causes any inconvenience or hard feelings, but that's the word from upstairs.

Well, actually, it's from downstairs — but you know what I mean. Anyway, I'd like to keep the people who sign my paychecks happy, so I'd be much obliged if you'd do as the lady requests. Are we OK?

Posted in Current, Technology | Comments Off on Programming notes

From the mailbag #9

Posted on October 22, 2009 by David McKee

One reader asks, regarding senatorial aspirant Sue Lowden‘s esteemed Pioneer Hotel & Gambling Hall:

I’m confused (as usual, but…) – Isn’t the Pioneer NOT a gambling hall now, its shell hosting an ABC convenience store & various other small shops?
I don’t remember if I ever patronized the place when it was a casino, but its stores are in a good location for the Downtown tourist crowd; the ABC Store is especially popular with our Hawaiian friends. That’s good for sales taxes, right?

As for the Vegas Club, please don’t vaporize it yet: We’re going to stay there at the end of the month, mainly because it’s free for me – and a separate free room for a friend of mine – allowing him to attend the Speedway races for that much less money.

You’re thinking of the Pioneer on Fremont Street, while Ms. Lowden’s establishment is down in Laughlin. And it very much has gambling. As for dematerialization, S&G did not nominate the Vegas Club for that dubious honor but suggested that, as long as Sen. Harry Reid‘s people are threatening to “vaporize” Ms. Lowden that they make themselves useful and turn their phasers on her grind joint, which is regarded as a bottom-feeder even by Laughlin standards.

The Vegas Club is very much on people’s minds, as another reader asks:

How is it possible that TV series VEGA$ starring Robert Urich came out on DVD on October 20 and I saw nothing in the Las Vegas media celebrating the occasion. I saw an ad in Newsweek. They couldn’t get something with Wayne F. Newton at the Tropicana or Phyllis Davis and Judy Landers in front of the Plaza or the Las Vegas Club? Sad, sad, sad.

Vega$Ah, a Phyllis Davis shout-out. You’re speaking our language. And, yes, that VEGA$ release really snuck by, didn’t it? In a classic case of the blind following the blind, local TV stations take their cues from the newspapers. The various Greenspun-owned organs have been slashing staff at a fearsome rate, so it’s understandable that they’d miss it.

As for the Las Vegas Review-Journal, suffice it to say that staffers there, up to and including head cheese Thomas Mitchell, had to be told that the Moulin Rouge was burning down because — even though it was happening across the street — they work in a penetentiary-like building with no windows to the outside world (architecture as institutional metaphor).

So it’s not the least bit surprising that our insular and rapidly declining local media would totally blow this one. As for Mayor Oscar Goodman, he had a previous commitment in London, but still … no proclamation? No declaration that Oct. 2009 was hereby “VEGA$ Day”? Another missed opportunity for some free ink.

Posted in Alex Yemenidjian, Archon Corp., Downtown, Entertainment, Harry Reid, Laughlin, Oscar Goodman, Tamares Group, Tourism, TV | Comments Off on From the mailbag #9

Quote of the Day

Posted on October 22, 2009 by David McKee

"For some people, just being a woman is a pre-existing condition." — Dr. Nancy Snyderman on the subject of HMOs and their propensity to cover Viagra … but not in-vitro fertilization or birth control pills.

Posted in Current, TV | Comments Off on Quote of the Day

Quote of the Day

Posted on October 21, 2009 by David McKee

Penn National Gaming "has not lost its senses and, [contends] that at the right price and through the right vehicle (and only with a sizable strategic partner who would bring something special to the project, presumably some hotel experience), its involvement in Fountainebleau could make sense.” — quote from Penn's 3Q09 earnings report, according to J.P. Morgan analyst Joseph Greff. This is the first we're hearing about joint-venture F-bleau partners, though.

Posted in Current, Economy, Fontainebleau, Penn National, The Strip, Wall Street | Comments Off on Quote of the Day

Comrade Spam strikes again

Posted on October 21, 2009 by David McKee

I'm buried deep in other projects this week but I wanted to surface long enough to apologize for the recent barrage of spam in our "Comments" threads and e-mail alerts. Judging by some of the URLs involved, it looks like our old nemesis Comrade Spam is back and the Russkie bastard has learned some new tricks. Since he's figured out how to mask his IP address, it may be awhile before we figure out how to block him, but we'll work on it, I promise you that.

Also, at some point S&G will switch to WordPress (which just busted out a new mobile format). That will mean a new look and format (including extra bells and whistles). I'll let you know as soon as we have a firm launch date.

Posted in Current, Technology | Comments Off on Comrade Spam strikes again

Quote of the Day

Posted on October 20, 2009 by David McKee

"I'd like to keep one strip of that airport as an airport. I think it closed prematurely. I think greed went nuts." — Atlantic City mayoral candidate Joseph Polillo (I), on what to do with Bader Field. Incumbent Mayor Lorenzo Langford's idea for the former airport is — wait for it — another casino.

Posted in Atlantic City, Election, Politics, Tourism, Transportation | Comments Off on Quote of the Day

MGM: CityCenter worth $4.88 billion

Posted on October 20, 2009 by David McKee

MGM Mirage has announced that it's writing off approximately $1.3 billion (i.e., taking an "impairment charge") against CityCenter, with $348 million of that chalked up to falling real estate values. (Some $174 million of that will apparently be fobbed off on MGM's partners, bringing MGM's writeoff down to $1.1 billion.) The value of MGM's half-share of the project has been restated at $2.44 billion (a 31% decline). No word yet from Dubai World as to what it thinks its half of CityCenter is worth.

Kirk Kerkorian's Tracinda Corp. shook a rhetorical fist at Wall Street, stating in a press release that there is "substantial unrecognized value in MGM and CityCenter that is not reflected in the market value of MGM’s stock." It's nice to know that even mega-corporations can feel underappreciated.

Bottoming out? Air traffic into and out of Las Vegas was almost flat, year over year, -1.2% in September, helped by passenger-load increases — and I don't mean those hefty people who take up two seats — on nearly every domestic carrier not named US Airways (-26%). Considering that international traffic was -21%, this is augurs well for a return of domestic consumer confidence in Sin City. And, yes, flat is the new "up."

Pennsylvania: Rendell intervenes. Never accuse the Keystone State Lege of acting in haste. The table games bill is still mired in conference committe, prompting Gov. Ed Rendell (D) to wade into the fray. Rendell's magic number for the amount of revenue table games must yield in fees and taxes is $200 million. To get there, the guv believes the tax rate must be 16%. But he's closer to the GOP position, warning that the higher levies favored by Dems would "kill the golden goose" and deprive Little Johnny's school of needed funding. Meanwhile, Rivers Casino continues to disappoint, with the lowest revenue-per-slot in the state.

Finally, a taker! Out of left field, a contender has emerged for the orphaned casino license in Cherokee and Crawford counties in Kansas. You'll recall that it was awarded to Penn National Gaming, seemingly ages ago, but Penn — spooked by nearby tribal competition — all but spat on the license before leaving in a huff.

Enter Ozark Trail Gaming, a consortium of Kansas businessmen, offering to build a $225 million, 900-slot, 30-table casino. After some bad experiences with carpetbagger casino developers trying to dictate terms to the Sunflower State, you have to think the Kansas Lottery Board will look kindly upon this native-son effort.

ColSux loses again. A $41.5 million summary judgment has been slapped on Columbia Sussex for abrogating its purchase of the President riverboat in St. Louis (now the property of ColSux arch-foe Pinnacle Entertainment). Regulators for Missouri didn't like the looks of ColSux and its CEO, William J. Yung III (above). The latter pulled his license application and used that as an excuse to void the President purchase, but a federal district judge wasn't buying it.

The former President owners were also suing ColSux for jacking up parking rates for casino patrons by 560% (no, that is not a typo), a truly Yungian move. If poetic justice were served in this case, the court would award the ship to ColSux. Since the President's days on the water are numbered and Yung will licensed in Missouri only in his wildest dreams, trying to dispose of that near-worthless asset might be the aptest punishment of all.

Posted in CityCenter, Columbia Sussex, Current, Economy, Kansas, MGM Mirage, Missouri, Neil Bluhm, Penn National, Pennsylvania, Pinnacle Entertainment, Politics, Regulation, Taxes, Tourism, Transportation, Wall Street | Comments Off on MGM: CityCenter worth $4.88 billion

Goliath, computer nerd; Lowden Trek: The Wrath of Reid

Posted on October 20, 2009 by David McKee

As some may recall, the saga of Goliath, the LVA rescue kitten, had a happy ending. Not only has he found a new, loving home but the hyperactive little fellow (whose new owners renamed him "Murderface") has developed an interest in technology:

"Robin said he’s obsessed with the computer — he’ll shimmy up her leg or the back of the chair, then either perch on her shoulder or sit in front of the monitor and bat at the cursor on screen."

Since my two cats only acknowledge computers to the extent of sitting either A) on the mouse pad or B) in front of the screen, effectively blocking it, Goliath would appear to be part of that younger, techno-savvy generation.

Sue Lowden = Klingons? The senatorial candidacy of Archon Corp. Treasurer Sue Lowden is evidently being taken quite seriously by Sen. Harry Reid. So much so that Reid's office has threatened to "vaporize" Lowden, prompting some musings on the proper response to phaser fire. If Reid wanted to do Nevadans a service, shouldn't he instead vaporize Lowden's Pioneer Gambling Hall, a grind joint that's been likened to the barren, depressing, post-2004 Vegas Club downtown?

Posted in Animals, Downtown, Election, Harry Reid, Laughlin, Pets, Politics, Tamares Group | Comments Off on Goliath, computer nerd; Lowden Trek: The Wrath of Reid

Eight Vegas shows reviewed

Posted on October 19, 2009 by David McKee

As promised, Mike Shackleford's WizardOfVegas.com site has launched. It took a while to get the bugs worked out, hence my review of Scarlett & her Seductive Ladies of Magic didn't appear until after the show had closed. However, to the best of my knowledge, you can not only read about but still see all of the following …

• Amazed

• Anthony Cools

• Gordie Brown

• Marriage Can Be Murder

• Matsuri

• Sin City Bad Girls

• V – The Ultimate Variety Show

Sample line: "Yes, Marriage can be murder … and so is the food." Enjoy! 

Posted in Colony Capital, Dining, Don Barden, Downtown, Entertainment, Harrah's, Planet Hollywood, Riviera, The Strip, Tilman Fertitta, Tourism | Comments Off on Eight Vegas shows reviewed

Ohio slots slip sliding away?

Posted on October 19, 2009 by David McKee

A sample conducted by the tag team of TruthPac and Strategic Polling finds support for the Ohio casino initiative backed by Penn National Gaming polling below 50%. Casinos still have a slight edge (48%/43%, with 8% undecided) … so in theory the ballot measure should squeak through, so long as the undecideds split down the middle.

If, however, “likely voters” means so-called “values voters,” then Issue 3 could be in serious trouble. Only 30% of Democrats polled were against putting casinos in Toledo, Cincinnati, Columbus and Cleveland — but 58% of Republicans gave it the thumbs-down. It should be noted, though, that a Dayton Daily News poll released three weeks ago had Issue 3 winning in a 59%/38% wipeout.

From the mailbag: An East Coast reader writes, “I live in Washington, D.C. Only a tiny 1%-2% of the D.C. television market is in West Virginia, yet I’m surprised to be seeing several TV ads to legalize table games in Charlestown, West Virginia — home of a racino (I’ve never been there). I hadn’t even known that was on the ballot. Anyway, if they are buying D.C. TV for a Jefferson County, W.V. issue, they sure are spending boatloads of money — not too surprising, I guess.”

Well, this did come as a bit of a surprise to me … but it makes sense in retrospect. Not in terms of influencing votes: However, with table games an inevitability in Pennsylvania, a push for casinos in Ohio, slot parlors (slowly) ramping up in Maryland, etc., the advertising blitz is probably a means of preparing ground for after the election. Should table games be voted in, D.C.-area gamblers will know Charlestown has them and may think twice about driving to Pennsylvania and points northeast.

Posted in Current, Election, Marketing, Maryland, Ohio, Racinos | Comments Off on Ohio slots slip sliding away?

A deal @ Vdara

Posted on October 19, 2009 by David McKee

Just as I said, CityCenter is becoming the mid-market epicenter of Las Vegas. Today's mailbag yielded a $129/night offer for Vdara, plus $50 in amenity credits — more evidence of the downward pressure CityCenter is exerting on the Strip. But anything that means greater affordability for John Q. Public is A-OK with S&G. Besides, having bunched as much as 85% of the new room product at the upper end of the market, companies like MGM Mirage were bound to have this come-to-Jesus moment sooner rather than later.

Posted in CityCenter, Current, Economy, Marketing, MGM Mirage, The Strip | Comments Off on A deal @ Vdara

Only in Nevada

Posted on October 16, 2009 by David McKee

To end the week on a note of levity: For the second time this year, both Gov. Jim Gibbons and Lt. Gov. Brian Krolicki got it into their heads to be out of state simultaneously. (One senses that they don't consult each other about scheduling or much of anything else.) Which means that — also for the second time this year — the Silver State was briefly helmed by state Senate President Pro Tempore Mike Schneider. Let's just say that, given this opportunity, Acting Gov. Schneider didn't let it go to waste.

Elsewhere in the Silly File, we find New York-New York holding auditions for a spokesman. They're being politically correct and saying "spokesperson," but considering that aforesaid person is going to be dubbed Vinny "The Man," I have a faint suspicion that members of the gentler sex aren't going to be in the running. The winning candidate must "have the most New York swagger" and be adept at gluttony: Winning a hot dog-eating contest is a prerequisite for would-be Vinnys.

I love New York. Seriously, Manhattan is my favorite place on Earth. (However, it is a poor vantage point from which to write about the casino biz.) Which is why I think promoting its Vegas knockoff through the persona of a dese-dem-dose palooka is a notion so creaky and archaic it needs a walker. Not for nothing has a colleague already dubbed this "the dumbest promotion of the year." I concur.

Jim Murren to the rescue. The CEO of MGM Mirage is going to bat for Sen. Harry Reid. The latter's got the casino moguls (Sheldon Adelson, excepted) in his corner, if nothing else.

Posted in Current, Election, Harry Reid, Marketing, MGM Mirage, New York, Politics, Sheldon Adelson, The Strip | Comments Off on Only in Nevada

Quote of the Day

Posted on October 16, 2009 by David McKee

"I predict a rough winter for Vegas. Swine flu may not be a pandemic, but it may really mess with the casino business. It could make the economic downturn look mild." — a locally based casino-industry expert, in an e-mail to LVA.

Posted in Boulder Strip, Current, Downtown, Economy, The Strip, Tourism | Comments Off on Quote of the Day

Aria drives prices … down

Posted on October 16, 2009 by David McKee

Contrary to repeated assertions by J.P. Morgan, it would appear that MGM Mirage is putting out promotional specials for Bellagio … and very aggressively so. Note however, that Steve Wynn's masterpiece is maintaining its price point and Aria is the one having to come down to meet it.

Also, an unscientific survey of mid-week rates parallel to Aria's opening shows that what the CityCenter flagship is doing is sucking the air out of the rest of the Strip, especially other MGM properties. Even Wynn Las Vegas is down to $159/night that week (quotes were predicated on a three-night stay).

The absolute bargain was Downtown's Golden Gate ($12.71) and unless you count Hooters and fellow bottom-feeder Wild Wild West, the lowest on-Strip price was $21.21 at MGM's Circus Circus. The Sahara ($22.40) and Imperial Palace ($25) were close behind. They were ever-so-slightly outpriced by the Riviera ($27) and Tropicana ($29.33).

As for other properties in the lion's den: Excalibur ($31), Luxor ($48.37), New York-New York ($50), Monte Carlo ($58.62), the Green Monster (aka MGM Grand, $70), Mandalay Bay ($72.55), The Mirage ($76.50), THEhotel ($93.29), Vdara ($109) … with only the Green Monster's Sky Lofts ($600) outpricing Aria.

So, MGM, are you sure this oligopoly business model is the way you want to go? I'm just askin'.

<crickets>

Posted in Alex Yemenidjian, CityCenter, Current, Downtown, Economy, Harrah's, Marketing, MGM Mirage, Riviera, Sahara, Station Casinos, Steve Wynn, The Strip, Tourism | Comments Off on Aria drives prices … down