In other news …

Posted on October 7, 2009 by David McKee

I am happy to report that Stella Stevens' Las Vegas Lady did not make it into our "worst Las Vegas-based movie of all time" poll. (As they say in Chicago, vote early and often.) Crazy Girls Undercover, however, was not so lucky.

Posted in Downtown, Movies, The Strip, TV | Comments Off on In other news …

$300 mil for F'bleau?

Posted on October 6, 2009 by David McKee

That’s the latest; namely, that Penn National Gaming will put down less than $300 million as a “stalking horse” bid on Fontainebleau. Penn would also be on the hook for the costs of the project’s bankruptcy proceedings. Potentially getting a Strip resort for less than 10% of its cost sounds like a good deal for Penn … until you think about the hundreds of millions of dollars (possibly as much as $2 billion) that stand between F’bleau and the finish line.

Sue Lowden evidently didn’t get the memo that Mike Ensign is no longer writing fat campaign checks at Mandalay Resort Group. How else to explain the Archon Corp. treasurer’s loud and frequent fealty to Ensign fils, the ethically challenged junior senator from Nevada? Lowden’s proclamations provided an irresistible temptation for Democratic Senatorial Campaign Committee spokesman Ed Schultz, who sniped, “Sue Lowden’s support of John Ensign may have fundraising value to her, but it is a reflection of her own character and fitness for office. She has shown more fidelity to him, than he has shown to his own wife.” (Lowden is gunning for Sen. Harry Reid‘s seat.)

In her capacity at Archon, Lowden could line the younger Ensign up with a dandy post-senatorial job as a casino greeter at her Pioneer Gambling Hall in Laughlin. (As for Lowden, at least she’s off Jon Ralston‘s “Chicken List,” after gracing the Face to Face set. Your turn, Sheldon Adelson. Does Sue Lowden have more huevos than you?)

The perils of Packer. Reeling from a $1 billion loss on his overseas casino misadventures, James Packer and his Crown Ltd. are putting some of their Melbourne land on the block.

Not buying it. Although MGM Mirage CEO Jim Murren may have predicted that CityCenter’s premiere would increase Vegas visitation by 10%, but gaming analysts aren’t having any of it, especially when all the new room capacity is at the high end. Also, it’s remembering that the 1998-2000 roll of megaresort openings and the 2005 debut of Wynn Las Vegas coincided with robust U.S. economies. Andrew Zarnett advises casino bosses to look at current numbers as the new baseline — which sure beats pining for the vertiginous and unsustainable levels of two years ago.

Macanese machinations. Conventional wisdom on the advisability of floating IPOs in Hong Kong continues to seesaw. The Wall Street Journal runs the numbers and finds gaming stocks defying the market’s downward trend. Which is good news for Steve Wynn and possibly even Las Vegas Sands‘ public offering, which is taking forever to reach the launch pad.

Posted in CityCenter, Economy, Fontainebleau, Harry Reid, James Packer, Macau, MGM Mirage, Penn National, Politics, Sheldon Adelson, Steve Wynn, The Strip, Wall Street | Comments Off on $300 mil for F'bleau?

Want your ass kicked?

Posted on October 5, 2009 by David McKee

Then go hang out at Stack. If they don’t like your looks, the in-house goons will be sicced on you. And Las Vegans wonder at the schadenfreude so many people feel with regard to Sin City’s current doldrums.

No magic bullet. Liberalization of casino rules in Colorado will raise considerably less revenue than expected. Whoever made the projections that are now coming up 60% short obviously didn’t take the recession into account.

Opposition grows. An effort by Illinois Gov. Pat Quinn to saturate the state with video gambling devices is encountering widening opposition. Chicago suburbs Evanston and Naperville are among the areas that have nixed the prospect of slot routes.

Don’t like our roads? Mail your thanks to Continue reading →

Posted in Colorado, Dining, Election, Harrah's, Illinois, MGM Mirage, Penn National, Pennsylvania, Sheldon Adelson, South Carolina, Taxes, The Strip, Tourism, Transportation | Comments Off on Want your ass kicked?

From the mailbag #8

Posted on October 5, 2009 by David McKee

“Doesn’t the IOC realise it will be winter in Brazil in August, 2016?” — comment Blackberried in by a reader, regarding the award of the ’16 games to Rio de Janeiro. Y’know, I’d been wondering about that myself. The average August temperature in Rio hovers between 66 and 78 degrees. Not frigid but not exactly torrid, either. Meanwhile, the IOC promises to keep an eagle eye on the betting lines for the Vancouver games in 2010.

From Jeff in OKC, regarding the recent National Coming-Out Day promotions on the Strip: “Casino ads need a gambling reference in their marketing, I found it cute. If I want to offend easily, I would say that ‘Two queens are more fun than a straight’ suggests that straight people are inherently less enjoyable than gay people, and NY-NY doesn’t want my money. I think we can always be offended, if we look hard enough.”

From kerr_mudgeon, on the growing possibility that Las Vegas Mayor Oscar Goodman will tilt at the 2010 gubernatorial race: “I don’t think he’ll run because the odds are less than 50% in his favor as a non-partisan + he’d not want to disrupt his family by taking a job in Carson [City] – BUT if he runs and wins, he’ll start pushing immediately to move the state capital to Las Vegas (maybe to take over one of the partly-built Strip complexes in/near bankruptcy).”

It’s not the worst idea I’ve heard. Nor is this …

Singapore is building an expansion of its ocean-liner terminal, enabling it to berth four cruisers at a time. The good news for Las Vegas Sands and Genting Bhd is, obviously, that this means more potential customers for their ultra-megaresorts. The not-so-good news is that the new berths won’t be ready until late 2011, by which point both casino-based resort will have been open nearly two years.

Everybody’s got a private equity fund these days, like the 21-year-old owner of a Persian restaurant in Maryland. Youthful Artin Afsharjavan claims he’s got the scratch to buy Trump Entertainment Resorts, prompting Trump CEO Mark Juliano to reply, “Show me the money.”

Hey, if some kid wants to throw as much as $500 million into acquiring five (mostly) bottom-of-the-barrel Atlantic City casinos, including Resorts Atlantic City and the A.C. Hilton, I’d like to see the color of his money, too. If it’s for real, TER and the others ought to pluck the guy clean. You don’t get a pigeon like this every day.

Posted in Atlantic City, Colony Capital, Current, Donald Trump, Election, International, Marketing, MGM Mirage, Oscar Goodman, Sheldon Adelson, Singapore | 1 Comment

Quote of the Day

Posted on October 5, 2009 by David McKee

"One of the reasons why we chose this mansion, instead of having something at one of the casinos, was because we wanted to match the glamour of a Playboy/Hugh Hefner party." — ex-Bunny Lois Sablich, explaining why a reunion of former Playboy Hotel & Casino employees snubbed current Atlantic City casinos in favor of a stately home nearby.

Posted in Atlantic City | Comments Off on Quote of the Day

Macao's blockbuster month

Posted on October 2, 2009 by David McKee

A flurry of good news to end the week, starting in Macao:

September, the first month affected by a relaxation of severe visa restrictions imposed on the mainland, saw a 53% jump in Macanese gambling revenues. In terms of market share, Stanley Ho opened a big lead on Sheldon Adelson, 30% to 20%, with Melco Crown Entertainment close behind with 16%. The remainder of the market was divvied between Wynn Resorts (14%), MGM Mirage (10%) and Galaxy Entertainment (8%).

Is Melco’s City of Dreams (above) eating into nearby Venetian Macao‘s business? On the surface, it certainly looks plausible. Given the immensity of the facilities he’s building on the Cotai Strip™, Adelson ought to be getting more bang for his pataca.

Vegas hearts gays. Earlier today, I was asked to reflect on my nearly 11 years in Las Vegas. It’s been full of surprising twists of fate — who ever thought Steve Wynn would be forced out of the Mirage brand he’d created, just for starters?

But I sure as heck never imagined I’d open my e-mail box at work and find the following casino promotions, all keyed to National Coming Out Day (Oct. 3):

“Two Queens Beat a Straight” (New York-New York)

… or the slightly more innocuous …

“COME OUT and Celebrate at Luxor“

(Luxor was smart and didn’t offer Criss F. Angel tickets as part of the, uh, package)

In the Vegas of even a few years ago, “Boys’ Night Out Package at Excalibur” would have had more of a frat-party connotation. MGM Grand plays it safe with a “His or Her Getaway” which sounds like a generic singles-oriented deal. Even so, we’re actually seeing progress from the days when Vegas marketed itself as a synonym for a very debauched and jaundiced vision of male heterosexuality.

There’s nothing like a depression to make this a party town of equal-opportunity decadence. After all, LGBT dollars spend just as fast as straight ones.

$545 a night. That’s what Mandarin Oriental is asking. If you read the fine print, you’ll note that (through March 31), if you buy a room night at that rate, you’ll get a comped night, too. Which makes the effective rate $272 and change. By current standards, that’s still steep … but maybe staying in a 392-room hotel instead of a 4,000-room behemoth is an intangible added value. What do you think?

Posted in CityCenter, Current, Economy, Entertainment, James Packer, Lawrence Ho, Macau, Marketing, Melco Crown Entertainment, MGM Mirage, Sheldon Adelson, Stanley Ho, Steve Wynn, The Strip, Tourism | Comments Off on Macao's blockbuster month

Scarlett saved?!? & other Case Bets

Posted on October 1, 2009 by David McKee

Splendid news, lads (and lasses). Scarlett, Princess of Magic may return to the Riviera in nine months or a year … that is to say, whenever the economy eventually rebounds. This comes straight from Riv management.

Of course, there's a good chance the Riv itself won't be around in nine months or so. It's miracle it's stayed out of Chapter 11 as long as it has. Then again, President William Westerman has an enviable track record when it comes to beating the odds. People were writing him off 11 years ago and he's still here.

Ah, the good old days. Remember when the Gold Spike was hands-down the scariest casino in Las Vegas? The Siegel Group has done a splendid job of spiffing the place up but a reminder of the Spike's dodgy not-so-distant past came in the form of a guilty verdict in a Nov. 17, 2008 shooting. According to the Pulitzer Prize-winning Las Vegas Sun, the attempted murder was a "grizzly homicide." Does that mean the assailant was firearm-proficient bear?

Now that autumn is here, get out and enjoy Lake Mead while you still can.

Investors may be tiring of endless debt swaps and postponements. A proposed 64-cents-on-the-dollar (at 10% interest) issuance of MGM Mirage debt laid an egg. When it took out $12 billion-plus, due next June, MGM must have been either high as a kite on CityCenter cash-flow projections when it agreed to that deadline or assumed that, when push came to shove, it'd just rejigger its debt load anyway.

A wise colleague of mine once said in re Donald Trump, "All he ever does is restructure his debt because that's all he can do!" That has now become the modus operandi of the casino industry at large — except for Mr. Cash-and-Carry, Phil Ruffin. So I guess Trump can legitimately claim to have been ahead of his time.

Penn hearts F'bleau. Well, sorta. Penn National Gaming has acknowledged that it's been sniffing around bankrupt Fontainebleau but cites several disincentives to a deal. Penn's CFO even called F'bleau worthless (and few in town would give him an argument at this point). Penn's publicly stated criteria for a Las Vegas acquisition have included that it be affordable and unencumbered. F'bleau is neither. So if Penn can't make liens and litigants go away, perhaps it can trash-talk F'bleau's price down so far that completion-related headaches become grudgingly acceptable.

Posted in Donald Trump, Downtown, Economy, Entertainment, Environment, Fontainebleau, Penn National, Phil Ruffin, Riviera, The Strip, Tourism | Comments Off on Scarlett saved?!? & other Case Bets

Case Bets: P'mousse, Wynn vs. Francis, Natole, etc.

Posted on October 1, 2009 by David McKee

Tucked away around the corner from the Sahara is local institution Pamplemousse. While there wasn't room for describing the massive crudité basket or the alleged "Mob booth," hopefully this chronicle captures some of the preserved-in-amber ambience of P'mousse.

Steve Wynn, house hunter. What could the casino mogul want with a mansion in Bel Air? Well, if it belongs to celeb-stiff Joe Francis, seizing the house could bring Wynn Resorts one large step closer to settling Francis' $2.9 million gambling debts.

Just for the record, casino treasurer Sue Lowden has officially elbowed her way into the crowded field of potential GOP challengers to Sen. Harry Reid (D-NV). S&G is looking for a replay of 1996's bruising clash between then-state Sen. Lowden and the Culinary Union.

In the wake of the Great Trop Show Massacre comes word from multiple sources that impressionist Rich Natole won't be venue-less for long. Could be he doesn't even have to leave the intersection of Tropicana Ave. and the Strip.

Mommie Queerest. At the risk of praising with faint damns, if you like this sort of thing then this is the sort of thing you'll like. Does the general public have even a dim recollection of Joan Crawford anymore?

Posted in Alex Yemenidjian, Dining, Election, Entertainment, Harry Reid, Steve Wynn, The Strip | Comments Off on Case Bets: P'mousse, Wynn vs. Francis, Natole, etc.

Trop, Sands purges continue

Posted on September 30, 2009 by David McKee

It’s official: “Pit Bull of Comedy” Bobby Slayton has snarled his last at the Tropicana Las Vegas. Thus endeth a brief, inauspicious reign by Anthony Cools over the Trop’s upstairs showroom. A well-placed source advises LVA that Beatles tribute show Penny Lane was pulled after EMI hit it with a cease-and-desist letter. In any event, it left as invisibly as it arrived.

Trop CEO Alex Yemenidjian still has three shows he inherited from predecessor Scott Butera but it’s pretty clear that he’s going to put his own stamp on the property. As for Cools, well, he’ll always have O’Shea’s.

Movement at Cosmo. Buried in the Review-Journal (six items deep) is the news that the Cosmopolitan has landed former Station Casinos executive Marshall Andrew asits CIO. Deutsche Bank looks serious about making that September ’10 opening date. Will the economy have improved sufficiently to have absorbed most of the CityCenter rooms and the Planet Hollywood Westgate ones by then (and maybe, but not very likely, Fontainebleau)? Boyd Gaming is betting otherwise. The Echelon cranes have been seen coming down, marking an additional hiatus in the project, which reportedly will not be resumed until 2012.

There’s quite a debate going on at the Las Vegas Sun on the rise and fall of themed resorts on the Strip. Surf over, check it out, maybe weigh in, if the spirit moves you.

Posted in Alex Yemenidjian, Architecture, Boyd Gaming, CityCenter, Cosmopolitan, Economy, Entertainment, Fontainebleau, George Maloof, Harrah's, MGM Mirage, Planet Hollywood, Station Casinos, The Strip, Tropicana Entertainment | Comments Off on Trop, Sands purges continue

Adelson's rescuer?

Posted on September 30, 2009 by David McKee

Meet Wilbur Ross. He’s an investor of all trades with an appetite for distressed assets. And he’s turning his sights to the casino industry. In particular, he’s drawn a bead on “companies [who] are also looking at selling assets in the Chinese gambling enclave of Macau to support struggling operations in Las Vegas.”

That means either Las Vegas Sands or MGM Mirage, and it’s old news that Sheldon Adelson has been peddling a couple of retail malls and the non-casino aspects of Sands Macao (above). MGM is attempting a reboot (successful so far) of MGM Grand Macau but still might come up short on completion money for CityCenter, especially if condo prices have to be reduced. And it doesn’t take a rocket scientist to figure out that one Macanese casino beats any number of hotel rooms or retail outlets.

Un-Trumped? Thwarted Trump Marina suitor Richard Fields is making another run at the property, which he’s been trying to buy since Homer was a pup. Better still for him, he could get it for as little as $75 million. However, he’s got dark-horse competition from a Maryland-based private equity fund that’s making a play for all three of the Trump Entertainment Resorts casinos.

Notorious for mainly hanging its corporate shingle in tax-haven Green Valley, would-be casino operator Empire Resorts is not only re-headquartered in New York State, it’s got new partners. Some of them bring checkered pasts to the table.

Also, Empire’s hopes hinge upon the current administration reversing an especially paternalistic ruling from the George W. Bush years: namely, that casino sites must be within commuting distance of the tribal owners’ — in this case the St. Regis Mohawks — reservations. If economic self-sufficiency is the endgame of federal/policy, Uncle Sam needs to loosen the apron strings.

Unready for some football. The unceremonious scrapping of Monday Night Football events at The Cannery is explained. Magic word: clearance. Columnist John Katsilometes also notes that the second weekend of Zowie Bowie‘s Vintage Vegas was better than the first. Which would mean it’s graduated from “bad” to “mediocre.”

New England moralists are apparently OK with slot machines in Rhode Island, so long as they’re covered by the fig leaf of mandatory greyhound racing. At least the slot players have a chance of actually catching the rabbit, metaphorically speaking. Animal cruelty is bad enough but when it’s enshrined in state law it’s even more objectionable, if such a thing is possible.

Posted in Animals, Atlantic City, Cannery Casino Resorts, CityCenter, Donald Trump, Entertainment, Horseracing, Macau, MGM Mirage, New York, Sheldon Adelson, Sports, Tribal, TV, Wall Street | Comments Off on Adelson's rescuer?

From the mailbag #7

Posted on September 30, 2009 by David McKee

Presumably foiled once again by the Comment-Eating Server, reader kerr_mudgeon writes:

From the article about the A.C. contract settlement: "In his praise of the deal, Don Marrandino, the Eastern Division president of Harrah's, appeared to refer indirectly to tortured negotiations with the United Auto Workers involving dealers, which have degenerated into a costly, bitter fight that is scaring away customers.

Two and a half years after the union won representation elections at four Atlantic City casinos, it has yet to sign a contract with any of them.
"Harrah's is proud of its record as a responsible union partner as further evidenced by this contract which was developed and agreed to in just a few short weeks and without disruption to the business and employees," he said."

– Is Harrah's equally proud that, after 2 1/2 years, it can't negotiate a first contract with the other union?
~~~
As for the hotels' prices for sheets, towels, etc., other posters' comments are correct: these are long-standing inflated charges intended to deter theft by room guests – and yes, I read of cases where guests stole the (unusable) TV remotes… and even the pictures on the walls.*

(By the way, I bought a $10 3-cup coffee maker at Walgreen's Drugstore, downtown LV, on my last trip to use in my room; I'll buy another next trip.)
There is a new revenue stream that David alludes to: High-end resorts selling robes, mattresses, wine glasses, etc. to hotel guests who appreciate the supposed superior quality of those goods – and are willing to pay inflated prices to own them.

* — Editor's note: The pictures in the hotel rooms at Casino X were the only things looked to be worth stealing — but they weren't for sale.

Give that man a blue ribbon: State Senate President David Williams of Kentucky may not be a friend of racinos but he hit the nail on the head recently. In a multi-point statement outlining his opposition to slots at Bluegrass State tracks, he said that horseracing was beset by "endemic" problems. He's the first public official that S&G can recall stating an overdue truth: that the ailments afflicting the horsey set can be temporarily soothed by slot revenues, but not cured.

Posted in Atlantic City, Downtown, Economy, Harrah's, Horseracing, Kentucky, Labor | Comments Off on From the mailbag #7

Adelson's rescuer?

Posted on September 30, 2009 by David McKee

Meet Wilbur Ross. He’s an investor of all trades with an appetite for distressed assets. And he’s turning his sights to the casino industry. In particular, he’s drawn a bead on “companies [who] are also looking at selling assets in the Chinese gambling enclave of Macau to support struggling operations in Las Vegas.”

That means either Las Vegas Sands or MGM Mirage, and it’s old news that Sheldon Adelson has been peddling a couple of retail malls and the non-casino aspects of Sands Macao (above). MGM is attempting a reboot (successful so far) of MGM Grand Macau but still might come up short on completion money for CityCenter, especially if condo prices have to be reduced. And it doesn’t take a rocket scientist to figure out that one Macanese casino beats any number of hotel rooms or retail outlets.

Un-Trumped? Thwarted Trump Marina suitor Richard Fields is making another run at the property, which he’s been trying to buy since Homer was a pup. Better still for him, he could get it for as little as $75 million. However, he’s got dark-horse competition from a Maryland-based private equity fund that’s making a play for all three of the Trump Entertainment Resorts casinos.

Notorious for mainly hanging its corporate shingle in tax-haven Green Valley, would-be casino operator Empire Resorts is not only re-headquartered in New York State, it’s got new partners. Some of them bring checkered pasts to the table.

Also, Empire’s hopes hinge upon the current administration reversing an especially paternalistic ruling from the George W. Bush years: namely, that casino sites must be within commuting distance of the tribal owners’ — in this case the St. Regis Mohawks — reservations. If economic self-sufficiency is the endgame of federal/policy, Uncle Sam needs to loosen the apron strings.

Unready for some football. The unceremonious scrapping of Monday Night Football events at The Cannery is explained. Magic word: clearance. Columnist John Katsilometes also notes that the second weekend of Zowie Bowie‘s Vintage Vegas was better than the first. Which would mean it’s graduated from “bad” to “mediocre.”

New England moralists are apparently OK with slot machines in Rhode Island, so long as they’re covered by the fig leaf of mandatory greyhound racing. At least the slot players have a chance of actually catching the rabbit, metaphorically speaking. Animal cruelty is bad enough but when it’s enshrined in state law it’s even more objectionable, if such a thing is possible.

Posted in Animals, Atlantic City, Cannery Casino Resorts, CityCenter, Donald Trump, Entertainment, Horseracing, Macau, MGM Mirage, New York, Sheldon Adelson, Sports, Tribal, TV, Wall Street | Comments Off on Adelson's rescuer?

Case Bets: Wynn in Macao, "Peepshow" strips down

Posted on September 29, 2009 by David McKee

• Steve Wynn is accelerating his timetable for developing on the Cotai Strip™. If Wynn continues to learn from his early miscalculations (and I see no reason to expect otherwise), a gaming-centric Wynn Resorts property on Cotai is a far better bet than Sheldon Adelson's retail- and hotel-heavy business model.

• While the unpredictable Aubrey O'Day is the ostensible focus of this Peepshow update, she's not the main point of interest. Rather, it's the spate of cheesparing moves made by BASE Entertainment.

The show's band has been thrown overboard and the cast has been reduced, requiring some performers to double in other roles. This explains the disappearance of Katie Webber, a strong vocalist whose big number has now been reassigned to Ms. O'Day. At some point, I'm going to be obliged to revisit Peepshow but I can tell you right now I'm not looking forward to it.

• Despite Sen. Harry Reid's juice job on the Sig Rogich Victorville Flyer (aka Desert Xpress), backers of an alternative maglev project are fighting back. Given that the most difficult part of the SoCal-to-Vegas drive is past once you reach Victorville, why anybody would park their car in the broiling sun and hop aboard Sig's Choo-Choo to Nowhere remains a mystery.

Posted in California, Economy, Entertainment, Harry Reid, Macau, Planet Hollywood, Sheldon Adelson, Steve Wynn, Technology, The Strip, Tourism, Transportation | Comments Off on Case Bets: Wynn in Macao, "Peepshow" strips down

Buy our casino, please!

Posted on September 29, 2009 by David McKee

Any well-furnished casino that doesn’t try to monetize its fine appointments is missing a revenue opportunity. However, it’s one thing to covet the lovely furnishings of, say, the Sky Lofts at MGM Grand. It’s quite another to check into a hotel room in a struggling Nevada market (hint: think blood-red aluminum siding) and see the following:

“Take A Little Something Home With You”

… followed by a list of prices for virtually everything that isn’t nailed down. At the high end, you could pay $175 for a bed spread or $100 for a phone, while hand towels ($10), washcloths and pillow cases ($5) occupied the bargain end of the spectrum.

In between, you could drop $45 for a Lilliputian coffee maker or $25 for the TV remote. Since the TV was not for sale and remotes tend to be brand- and model-specific, you wonder who’d be fool enough to spring for that last item.

Not only is Casino X clearly desperate for anything on which it can turn a buck, it also has rather inflated ideas of the value of its appurtances. I can see paying $175 for an Encore bedspread, but Steve Wynn doesn’t operate out in the sticks, if you get my drift. Oh, and Casino X might want to think about staffing up its players’ club and check-in windows, if the length of the lines at both is a telling metric.

Harrahs’ new BMOC. The incoming president of Harrah’s Entertainment‘s Flamingo-centered bloc of casinos departs Indiana to rave reviews. Philanthropic, community-oriented and socially aware, Rick Mazer sounds like just what the doctor ordered for Vegas — to say nothing of being someone upon whom we should keep close tabs.

Justice delayed. Employees of Station Casinos who may (or may not) have been short-changed in their paychecks, will just have to bloody well wait for their day in court, if Clark County District Court grants Station’s request for “breathing room.” Station is pleading hardship due to its current bankruptcy. Since the company has no one but itself to blame for being in Chapter 11, it’s difficult to muster sympathy. But perhaps the judge will be of a more forgiving nature.

Don Marrandino’s first coup. The newly installed boss of Harrah’s Atlantic City casino quartet inks a new labor pact with Unite-Here. That was a piece of cake. Now, about those dealer-contract talks with the UAW …

Meanwhile, back in Gary Loveman’s ‘hood … You know those on-again, off-again Massachusetts casinos? Well, they’re “off.” Again. Not that there’s any reason to rush, especially as the repeated delays lend additional borrowed time to struggling Foxwoods Resort Casino and Mohegan Sun.

Posted in Atlantic City, Economy, Harrah's, Marketing, Massachusetts, MGM Mirage, Station Casinos, Steve Wynn, The Strip, Tribal | Comments Off on Buy our casino, please!

Masters of the Obvious II

Posted on September 29, 2009 by David McKee

Regarding the punting of casinos from Penghu, the great minds of Wall Street put on their thinking caps and came up with the following, as paraphrased by the Las Vegas Review-Journal: "analysts said the vote could be a viewed as a positive indicator for Macau's gaming market, eliminating a source of competition."

Gee, ya think?

Actually, Union Gaming Group's Bill Lerner adds a dash of sanity, rating the Taiwanese market as "marginal" and raising the hitherto-unasked question: Just what's the likelihood Peking would allow Chinese citizens to start hopping planes and ferries to Taiwan, to fritter away Mainland currency?

Too bad, though, for Navegante Gaming Group founder Larry J. Woolf, who bet heavily on Penghu and lost at the ballot box. Having taken the proactive (or rash, according to one's perspective) step of cobbling together beachfront acreage, Woolf has the unenviable choice of trying to sell it — in which case, he's dealing from a weak hand — or trying to make lemonade by building a non-casino resort. That way, he can at least bide his time until the '12 elections come around.

Even before the wheels started coming off the casino industry in earnest, there were portents that it was reaching a saturation point in the U.S. It was inevitable. New jurisdictions were steadily opening, established ones became thicker with competition and the average American's income hasn't been rising at a level that would keep pace with galloping casino growth.

There's only so much discretionary income to go around and the industry was bound to hit the wall. The current depression merely accelerated and amplified the resultant "Thud!"

One casualty of this collision is Rivers Casino in Pittsburgh, whose slot revenues are running 22% below projections. That's causing Standard & Poor's to hint darkly at default, maybe even bankruptcy. Despite being in a prime market, Rivers Casino is performing seventh among Pennsylvania's nine casinos, which means fifth-place Sands Bethlehem has to be upgraded from "flop" to "mild underachiever."

One can't really blame current Rivers ownership. It inherited the $800 million (!) project after original owner Don Barden ran way over budget, then ran dry. However, it's a good thing the local property-tax assessor is currently undervaluing the Rivers site because Neil Bluhm (who breaks ground in Philadelphia next week) needs those extra $$ far worse than we thought.

Posted in Don Barden, Economy, International, Macau, Neil Bluhm, Pennsylvania, Sheldon Adelson, Wall Street | Comments Off on Masters of the Obvious II

Hell no, they won't; Penghu punk'd; Barbarians at the gates (again)

Posted on September 28, 2009 by David McKee

Pay taxes, that is. Two Indiana racinos are pushing back against a tax rate that averages 38%. Considering that the two tracks — one run by Cordish Gaming — are the newbies on the Hoosier State scene, one could fairly ask them, “Didn’t you know what you were getting into?” As the article notes, neither Harrah’s Entertainment and Boyd Gaming — both which recently heavily reinvested in Indiana — aren’t whining about their tax rates.

But the racinos have a point. In states where the number of casinos is artificially capped by the Legislature, solons become the custodians of the industry’s economic future, like it or not. And it only stands to reason that if the market is going be diluted, tax relief is in order. Considering that same-store revenues in Indiana have been nothing but down since the racinos opened, some push-back on the tax front was probably inevitable.

Hell no, they won’t either. Allow casinos in Penghu, that is. Voters on the Taiwanese island voted against gambling expansion there, putting the issue off-limits for three years. The notion of planting mega-million-dollar casinos in remote, hard-to-reach parts of Taiwan never made that much sense to S&G, but big industry players like Sheldon Adelson and Gary Loveman have kicked Taiwanese tires in the recent past.

Did Adelson and Steve Wynn mistime their leap into the Hong Kong stock market? One Wall Street Journal columnist thinks so. Bad timing isn’t the exclusive province of the public sector, though: A Washington State tribe borrowed $375 million on the strength [sic] of revenue forecasts that proved grossly over-optimistic. Percentage-wise, neither Harrah’s nor Station Casinos missed the mark this badly.

Bob Stupak, R.I.P. The penultimate Vegas maverick is gone, having spent much of the last decade as a recluse. One especially thorough obit contains a quote by former Klondike owner John Woodrum that ought to be engraved on Stupak’s gravestone (or at the base of that now-vanished Stupak statue): “If ever there was a guy beyond the rim of reality, there was Bob. But somehow he made reality happen.”

Just what we don’t need. They’re baaaaack. Never mind the smoking wreckage they’ve made of Harrah’s and Station, private-equity firms are rooting amidst the flotsam, looking to extend their morbid clamp on the casino industry. Leading the pack is Leon Black‘s inaptly named Apollo Management. Both indirectly (Planet Hollywood by way of Harrah’s) and directly (Cosmopolitan, Fontainebleau), Black is reported to be scarfing up what few independent properties remain, raising the prospect of a Total Rewards oligopoly stretching from just above CityCenter to the southern frontier of the The Mirage.

There are also a few bottom-feeders in play. Hooters hardly seems worth buying unless Onex Corp. wants to do a tear-down and extend the Tropicana Las Vegas eastward. Current ownership of the Riviera is tapped out but the place still has prospects as a fixer-upper (not something that fits with Apollo’s sack-and-pillage business model). If non-bottom-feeder Green Valley Ranch is really on the bubble of insolvency, then Penn National Gaming ought to quit chasing F’bleau, and try to drive a wedge betwixt Station and its Greenspun family partners. Penn would stand to inherit a beautiful property with far fewer problems than Big Bleau.

Posted in Alex Yemenidjian, Boyd Gaming, CityCenter, Cordish Co., Cosmopolitan, Fontainebleau, Harrah's, Horseracing, Indiana, International, MGM Mirage, Penn National, Riviera, Sheldon Adelson, Station Casinos, Steve Wynn, Taxes, The Strip, Tribal, Wall Street | Comments Off on Hell no, they won't; Penghu punk'd; Barbarians at the gates (again)

Quote of the Day

Posted on September 25, 2009 by David McKee

"With his ruddy nose, droopy eyes and imposing belly, the mayor might not be much of a looker, but the middle-aged woman behind the counter blushes, and tattooed men jump up from their brown leather armchairs and grin like schoolboys. 'Hey Oscar,' yells one of them. 'Where’s your martini? Where are the showgirls?'" — from a Times Online profile of Las Vegas Mayor Oscar Goodman and his impolitic utterances. Goodman is about to make his first-ever visit to London. Those Brits won't know what hit them.

Posted in Downtown, Economy, International, Oscar Goodman, Tourism | Comments Off on Quote of the Day

ColSux gets smacked (again)

Posted on September 25, 2009 by David McKee

In case you've wondered whether Columbia Sussex's endgame in its interminably protracted — and often preposterous — negotiations with the Culinary Union was to provoke a strike at the Tropicana Las Vegas, the company's actions elsewhere leave little doubt. (I have it on good authority that ColSux had drawn up plans to drive the Culinary out, in the great Margaret Elardi/Paul Lowden tradition.)

Now those anti-union chickens have come home to roost. The 13,000-member Alaska chapter of the National Education Association has ripped up its contract with ColSux's Anchorage Hilton and calling for boycotts of all 71 ColSux-owned hotels. That'd include …

… Las Vegas' own Westin Casuarina.

What a stroke of luck. At a time when Strip hotels are mostly just muddling through in terms of occupancy and convention bookings, William J. Yung III goes and pisses off one of the U.S.'s leading unions. Less bidness for him — and more for everybody else!

Thanks, Bill. Keep up the good work. We could use non-casino hoteliers with your infallible reverse-Midas Touch. Would you alienate a few other major convention-holding bodies (especially ones who might like to convene in Vegas) while you're at it? It would really help your competitors speed up this economic-recovery thing.

Posted in Alaska, Columbia Sussex, Economy, Labor, The Strip | Comments Off on ColSux gets smacked (again)

Crime doesn't pay; Wyden wimps out

Posted on September 25, 2009 by David McKee

Five dimes worth of damage, $40,000 bail — and all to wrest a measly two grand from some vending machines at Harrah’s Atlantic City. That’s the losing bet made by two security guards. Couple this with the floormen who destroyed their careers for a comparably picayune sum of money they allegedly scammed from Planet Hollywood, and we’re seeing a level of desperation in casino crime the likes of which I can’t recall.

City of Dreams. Voters in Ohio haven’t approved casinos in any form yet, but that’s not stopping Cleveland Cavaliers owner Dan Gilbert, who’s already had a design executed. Gilbert has lined up critical support by promising to forego hotel rooms and restaurants (though he’s left himself a little wiggle room there).

But don’t be fooled: Phil Satre used the same Trojan Horse strategy to get an onshore casino in the heart of New Orleans. A few bankruptcies and legislative showdowns later, Harrah’s N.O. has a hotel and a couple of restaurants. (Like it or not, Satre was brilliant.) I’ll be so not surprised if Gilbert gets his casino, then discovers the numbers don’t pencil out at a 33% tax rate, and starts waffling on his non-aggression pact with hoteliers and restaurateurs.

Damn that vox populi! Seems that Harrah’s Entertainment had a bit of contractual noblesse oblige written into its pact to purchase Thistledown Racetrack. If the issue of racinos has to be put to a vote of the people, all bets — so to speak — are off. Which means that Harrah’s can take its $89 million and skedaddle, leaving bankrupt Magna Entertainment holding the bag. For the moment though, Harrah’s is playing the issue down, saying talk of a pullout is “premature” and hasn’t been given much thought.

Even Las Vegas Sands appears to be feeling disappointed with early results from Sands Bethlehem. A massive, 2,000-slot expansion, slated for November, has been scaled back by 88%. Even so, Pennsylvania casinos are busy planning for the addition of table games (although the Lege hasn’t approved it yet). The price of table games will probably be higher (18% tax + $15 million upfront) than casinos want, but at least they’ve been successful in battling back an expansion-sapping 34% tax rate on tables. For slots, they still have to pay a usurious 55%, one of the worst rates in the nation.

But if Sands wants to maximize its drawing power, it might want to think about finishing the hotel and other amenities that got shoved onto the back burner when Sheldon Adelson‘s coffers began to run dry. At least Sands has gotten a temporary reprieve from sliding to sixth place because — even with financing in place — Neil Bluhm is taking a go-slow approach to his $355 million Philadelphia casino, out of deference to historical preservations. (Funny how Bluhm can build a Philly casino complex for half of what Adelson blew on his unfinished Bethlehem resort.)

Fortune favors the bold, which means it won’t smile upon Sen. Ron Wyden (D-OR), who apparently caved to pressure from increasingly useless and counterproductive Sen. Harry Reid (D-NV). It looks like Hapless Harry is behind Wyden’s craven withdrawal of an amendment that would have taxed Internet gambling to help pay for health care reform.

Incidentally, an amendment that would have authorized $100 billion to close the infamous Medicare “doughnut hole” was voted down yesterday. Jeez, those ‘Net-bet taxes could have come in handy as an alternative means of plugging the hole. (Oh, and fuck you too, Max Baucus.)

And that goes double for you, stock-picker Jim Cramer, whose spam rips through our LVA filters like Japanese torpedoes through the hull of the U.S.S. Oklahoma. It makes me sorry I ever said anything nice about you, Jimbo.

Posted in Atlantic City, Harrah's, Harry Reid, Horseracing, Internet gambling, Louisiana, Neil Bluhm, Ohio, Oklahoma, Pennsylvania, Planet Hollywood, Politics, Sheldon Adelson, Technology, Wall Street | Comments Off on Crime doesn't pay; Wyden wimps out

Big Trop shakeup

Posted on September 24, 2009 by David McKee

During his absent-minded interregnum as Tropicana Las Vegas CEO Scott Butera nearly denuded the casino of on-property entertainment. Only the hasty re-signing of Xtreme Magic left the Trop with a show in the house. Over time, Butera’s people added a slew of second- and third-tier acts.

“Too much,” said some. Those “some” would appear to include new CEO Alex Yemenidjian. Virtually unpublicized Beatles tribute act Penny Lane? Gone. Impressionist Rich Natole? Going soon. Bobby Slayton? Going a little later, perhaps. (Anthony Cools‘ track record as a producer is looking dire.) Although I’ve heard good things about the new venue created for Soprano’s Last Supper and Hypnosis Unleashed, apparently they will be relocated elsewhere within the Trop.

To no one’s surprise, Dirk Arthur will yield the prime-time slot (where he was, in all honesty, a placeholder) to incoming Wayne Newton. The Wayner will keep the Tiffany Theater warm until a Trop-owned show replaces Newton’s morbidly titled Once Before I Go.

The Harmon Theater‘s ill-publicized Tickled Pink has also closed and it sounds as though that place is experiencing cash-flow problems. Normally, I’d be sanguine that departing acts would soon find new homes elsewhere in town. However, in these desperate times, entertainment has been one of the first items on the chopping block, so the evicted performers can probably use all the positive vibes they can get.

Casino explosion in Ohio? Not only will Buckeye State voters get to say “aye” or “nay” to Gov. Ted Strickland‘s creation of racinos, the state could get as many as 11 gambling venues — not the seven Strickland envisions. Another ballot measure (pushed by Penn National Gaming) would authorize four casinos in four major Ohio cities. Minimum capital investment will be $250 million and the tax rate would be set at — Ouch! — 33%. Somehow, I doubt that will scare anybody away.

And they’re off! Congratulations to Ocean Downs, the first racino approved in Maryland. By June, reels should be spinning on the first 200 of an eventual 800 slots, to be fully phased in within 11 months.

Posted in Alex Yemenidjian, Current, Entertainment, Horseracing, Maryland, Ohio, Penn National, The Strip, Tropicana Entertainment | Comments Off on Big Trop shakeup