From the mailbag #4: California, tech troubles & 'resort fees'

Reader Kerr Mudgeon is less than amused by a recent dig at the cuisine offered by Commerce Casino to California firefighters. He writes: "The firefighters can go to numerous other nearby eateries if they don't like the FREE meals offered by the Commerce Casino — same as paying casino customers can eat at other places if they choose. Sound like 'looking the gift horse in the mouth.'"

Good news from IT: Our "austerity regime" of no photos and no links will, it is promised, be ended today. I can think of several potential blog entries yesterday that went unwritten because no linking capability was available, so this should put some wind back in S&G's sails … although some might say a lack of wind is the least of this blog's problems.

It's absolutely imperative that you read our 9/10/09 Question of the Day. No, I didn't write it. Our hard-working research duo of Jessica & Tanya did. (Also, Steve Friess recently mis-credited me with the Today's News column; that's a J&T Production, too, along with the occasional assist from Anthony Curtis himself.)

Aaaaaaaaannnnyyyyy-way, today's topic (and it's only online for one day) is the pernicious Vegas phenomenon known as the "resort fee." The winner of the Sustained Greed Award goes to longtime gouger Station Casinos. Station's Green Valley Ranch is also the premier resort-fee offender ($25).

Others who provide optional amenities — of varying desirability — in return for the fee include Bellagio ($25), The Mirage ($15), Planet Hollywood ($5) and Gold Coast ($3, which actually buys you quite a lot). The geniuses at Morgans Hotel Group get the Steal the Stripes out of Your Socks Award for charging you $7 for "in-room safe, parking, minibar (but not its contents), bath products, and a plasma TV."

There's a word for that Hard Rock Hotel & Casino practice and the word is "chintzy." As our researchers note, "For hotels to presume to charge guests for amenities that they have no intention of availing themselves of, but cannot avoid, seems a very counter-productive measure that can only generate ill-will."

Kudos to the following fee-eschewing properties: Venetian, Palazzo, Wynn Las Vegas, Encore and anyplace owned by Harrah's Entertainment. Yes, Harrah's. I tip my fedora to you, Gary Loveman.

Posted in Boulder Strip, Boyd Gaming, California, Current, Harrah's, Marketing, MGM Mirage, Morgans Hotel Group, Planet Hollywood, Sheldon Adelson, Station Casinos, Steve Wynn, Technology, The Strip, Tourism | Comments Off on From the mailbag #4: California, tech troubles & 'resort fees'

A one-ton horse

If giant equestrian statuary isn't enough to make you pass up Las Vegas for a vacation in Chandler, Ariz., I don't know what will do the trick.

Not impressed. One reader wasn't bowled over by Commerce Casino's largesse to a group of Bay Area firefighters who are battling nearby blazes. Informed that the firemen were being fed on Commerce's dime, aforesaid reader laconically replied, "Hopefully they're feeding them better than they feed their customers." Ouch!

Posted in Arizona, California, Tourism, Tribal | Comments Off on A one-ton horse

Green $hoots?

There's nothing like the approach of 2010's Global Gaming Expo to make Las Vegas hoteliers rethink their rates. For instance, if you want to stay at that palace of pleasure and plushness, the Plaza downtown, it'll run you $55 a night. Even the somewhat seedier Vegas Club will set you back $52/night.

Elsewhere in downtown, troubled Binion's may not be able to pay its landlords, but that's not stopping it from charging $172.62 during G2E Week. Even the clown house is cheaper: $142 gets you a Circus Circus room. That's a bargain when you consider that Stratosphere wants $164 per night.

As for the dubious privilege of hanging your hat at Imperial Palace, that'll cost you $189, bub. But the nerviest of the bottom feeders has to be Hooters. As of Sept. 4, it wasn't blushing to demand $192 per evening. Trust me when I say Hooters ought to pay you to stay there.

Then again … I know of someone who got six nights at Imperial Palace — during New Year's Eve — for $16.65/night. So, rumors of Las Vegas' imminent recovery are probably premature.

Posted in Downtown, Economy, G2E, Goldman Sachs, Harrah's, MGM Mirage, Tamares Group, The Strip, Tourism | Comments Off on Green $hoots?

Optimism in Macao, euphoria at CityCenter

Relaxation of stringent visa restrictions from Guangdong Province came a full four months sooner than expected, starting Sept. 1. Now, residents will be able to visit Macao once a month instead of quarterly. While this has prompted J.P. Morgan to raise its price target on Las Vegas Sands stock, analysts also fret that Sands may overreact and go pedal to the metal on its unfinished Cotai Strip™ hotels.

Those same analysts are bullish on the manufacturing sector, though. They think casinos will be more willing to reinvest in the slot base as 2009 draws to a close. Also, the onward march of casino expansion means more jurisdictions and facilities to whom IGT, Bally and WMS can peddle their products. They're 'meh' on regional casino operators like Penn National, Ameristar Casinos and Pinnacle Entertainment, due to flattish performance. (Penn could catch a break in Kansas, though I still think Cordish Gaming has that sewn up.)

But that's a rave notice compared to the long face Morgan analysts pull when pondering Boyd Gaming's prospects. They cite the slow-to-recover, promo-driven locals-casino market in Las Vegas ("trickle-down" economics of the worst sort); Atlantic City's critical condition — "the best-case scenario here is that [Borgata] would do less bad" than most of A.C. — those blah regional metrics and new competition for the Blue Chip riverboat in Indiana, which had been looking like 2009's feel-good story.

Intriguingly, the prospect of a Strip acquistion is floated in lieu of a 'stalking horse' bid for floundering Station Casinos. Boyd's still got enough unused borrowing capacity it could even swing an acquisition of The Mirage (with money to spare), not to mention some of the lower-hanging fruit, which now includes Planet Hollywood. But if the J.P. Morgan guys are gun-shy concerning Boyd …

They're over the moon about MGM Mirage's CityCenter: "we are increasingly under the belief that City Center will be a new must-see property for both domestic and international gamers/travelers that should drive solid visitation volumes to the Strip in 2010. We were impressed with the massive 18m-square-foot complex … a new type of high-end product for the Strip that should garner increased trips. It has a very contemporary feel that is different than anything else on the Strip, with lots of natural light and high ceilings, interesting room product and, for a massive property, ease of getting around from one 'neighborhood' to the next."

More good news comes in the form of a press release from Commerce Casino (in Commerce, Calif.), which rolled out the welcome mat for a group of undoubtedly weary firefighters. A strike force of 30 Bay Area-based firemen is being housed in the casino's hotel, with the casino comping all meals and picking up most of the hotel tab. Let's hope that such civic-mindedness spreads through the industry like — if you'll forgive the analogy — wildfire.

In case it matters, "super-starlet" (yes, that's the official term) Holly Madison has been given a 12-month contract extension at Peepshow, so she's obviously earning her pay. Also, I've heard through the grapevine that she and incoming Aubrey O'Day do not get along, so the timing of the Madison announcement should make clear who's got the upper implant in this situation.

Posted in Ameristar, Architecture, Atlantic City, Bally Technologies, Boulder Strip, Boyd Gaming, California, CityCenter, Cordish Co., Current, Economy, Entertainment, IGT, Indiana, Kansas, Macau, MGM Mirage, Penn National, Pinnacle Entertainment, Planet Hollywood, Sheldon Adelson, Station Casinos, Technology, The Strip, Wall Street, WMS Industries | Comments Off on Optimism in Macao, euphoria at CityCenter

'Peepshow''s little Hitler problem

Congratulations (not!) to the producers of Peepshow, whose rent-a-headliner stratagem has finally blown up in their faces. They're replacing a Jew (Shoshana Bean) with a fan of the leadership abilities of — I kid you not — Adolf Hitler. Oh, and she's a googly-eyed admirer of Fidel Castro, who — among other offenses against humanity — ran the casino industry out of Cuba.

Of course, this town has a tycoon or two known for cozying up to the authoritarian regime of Singapore and the downright despotic one in Peking. So perhaps Ms. O'Day's pathetic excuse for a brain will just be a 48-hour story … but that's what we thought about Sen. John Ensign's escapades, at least until Mike Ensign's role as payola daddy came into play.

(Thanks to Richard Abowitz for the heads-up on this one.)

A reader informs me that the site LasVegasDowntownNews.com appears to be defunct. I couldn't get it to load either and blogger Jeff Burbank's output was sporadic at the best of times. Has this site gone the way of all flesh? If anybody has the skinny on this, please let S&G know.

"Oh shit!" headline of the day: Seen at Huffington Post, "Harry Reid to take the wheel on health care." That's like finding out the one family member who's certifiably incapable of navigating the driveway is going to pilot the family car up Mount Charleston.

Posted in Current, Downtown, Entertainment, International, Macau, Marketing, Planet Hollywood, Politics, Singapore, Technology | Comments Off on 'Peepshow''s little Hitler problem

Many thanks …

 … to everyone who wrote in and overwhelmed us with messages of condolence regarding the late Shadow. Time doesn't permit writing individual replies to each and every one of you, although you have touched my heart deeply. So thanks go out to Steve Kallis (and I would imagine the Humane Society thanks you, too), Jeff in OKC, Jason the poolman, Richard Abowitz, arm53, detroit1051, Frank P., William Heckel (check out his Web site), Jinx (ditto), Aaron, Jim and smudger.

The apartment still seems very empty without Shadow's graceful — if sometimes surprisingly obstreperous — presence. Her brother, Mr. Bit, needs a lot of comforting. Fasolt is pretty much the same as ever.

Eventually the painful memories will recede and the good ones will take their place. Right now it's difficult to visualize Shadow other than as I last saw her, lying on the veterinarian's table, emaciated and misshapen, with her stomach bloated by the tumor. Her eyes seemed to say, "Let me go," but you're never adequately prepared for when they bring her back with a catheter sticking from her forearm, let alone for when you have to tell the vet it's OK to administer the lethal injection.

However, Shadow was in the extremely ethical hands of Mountain Vista Animal Hospital, one of Las Vegas' greatest assets. They could have strung me along with false hope and thereby milked my bank account dry, but they were most candid about the gravity of the situation. Thanks to them, Shadow's suffering was relatively brief. I hope I'm so fortunate when it's my turn to shuffle off this mortal coil.

In the meantime, it's a little difficult to give a rat's patootie about what's happening in the casino industry. I'm sure you understand why.

Besides … the fallout from last week's blog meltdown continues to descend. Our linking capabilities are temporarily kaput and the photo library has vanished. Hence the somewhat gray and bare-bones look of S&G these days. Darn, and I have this great screencap of Edward Quartermain looking for all the world like Sheldon Adelson

Posted in Animals, Current, Pets, Sheldon Adelson, Technology | Comments Off on Many thanks …

Shadow, 1993-2009

Jennifer & I just said goodbye to a faithful friend of 13 years, Shadow. A slim, sleek Norwegian Forest Cat, she came into my life on a fine autumn afternoon in 1996. I was still recovering from a broken engagement and, while taking a walk, came across a yard sale being conducted by a woman who was moving to Brazil. There, up for sale, was a beautiful blue-gray cat who was the spitting image of Buddy, my ex-fiancée's adorable Norwegian (who I missed far more than I did my ex).

As it turned out, Shadow also had an obstreperous brother, Bit (later promoted to Mr. Bit). Although I was only looking for one cat, I didn't have the heart to break brother and sister up, and took both. Shadow was well named, as she was invisible in darkness — causing her to get tripped over and stepped on far more times than I'd care to admit — and had the alarming habit of diving at your feet, an accident waiting to happen.

Unlike her brother, Shadow took to her new living situation at once. The only problem was the resultant friction between senior cat Fasolt and Shadow, which would never be resolved. They'd spend the next 13 years spatting. A couple of years after Shadow and Mr. Bit joined our family, job prospects in Minneapolis had dried up but multiple opportunities presented themselves in Las Vegas. So, in January 1999, my brother Vincent drove Shadow and Mr. Bit cross-country, while I flew Fasolt to Las Vegas. The climate seemed to agree with them — to say nothing of the profusion of juicy birds who dwelt nearby. Mr. Bit did, however, take several days to emerge from his hiding place in the kitchen cupboard.

Fast-forward a decade, and Shadow was showing signs of decrepitude and weight loss. (She was always lighter than air, but still … ) Her movements became stiffer, her lethargy more pronounced and she became reclusive. At first, I chalked this up to advancing age but eventually, she gave up on using the litter box, too. A number of medical tests failed to detect anything wrong.

As late as last Tuesday, Shadow was running about the apartment, having an episode of the 'nighttime crazies.' But, by Friday her belly was alarmingly bloated while the rest of her was emaciated and rail-thin. A visit to the vet brought the dreaded news: Shadow had a buildup of fluid in her abdomen and, beneath that, a tumor. Even a best-case scenario involving surgery and chemotherapy would only buy her a few more months on Earth. She was whimpering from the pain and the spark of her personality was all but extinguished.

We said our farewells as the last moments of Shadow's life ebbed away. Many tears were shed. Her body is gone, soon to be cremated, but her spirit will live in our hearts and minds and souls forever, for she is part of us in a way that death cannot sunder. Still … I will miss feeling her sleeping across my feet or knees when I'm sick in bed … chasing the dot of the laser pointer … sliding across the linoleum in pursuit of a runaway twist-tie … yelling at me when her dinner wasn't promptly served … sulking if her water did not have ice cubes in it, per her preference … dipping her right paw in aforesaid water and licking it off (making the water dirty for everyone else, but little did she care) … burrowing her forehead into my wrist as though to say "Thank you," when dinner was served … reclining regally in the nearest patch of sun … and, perhaps most of all, "helping" her Daddy work by curling up in his lap at the computer desk.

At least once, I came back to find her sitting on the keyboard, as though to say, "No more Internet, Dad!"

Thanks for reminding me of what is important, Shadow. We will never stop missing you.

Posted in Animals, Current, Pets | Comments Off on Shadow, 1993-2009

From the mailbag #3

Reader Kerr_Mudgeon writes, re the case of a Columbia Sussex executive who was the victim of age discrimination:

She was 67 years old, for gosh sake! She should have taken her token (socialist) Social Security checks and gone on (fascist) Medicare, then waited for the inevitable pounding on her door by a (union) thug from (communist) ACORN who insisted on reading her (nonexistent) rights from the Death Book prior to making an appointment for her to stand before the (mandatory) Death Panel which would have assigned her to the most efficient (statist) queue for her to Take The Pill in order to eliminate Obama's $multi-trillion budget deficit – even though he's intentionally destroying the US economy in order to make himself Dictator of the World because he hates everybody and everything that is good = American (of which he is not one). As a matter of fact, if Jesus's will were in effect in this wicked world, she would not have been able to file her vicious law suit, because Tort Reform would have stopped any shady Trial Lawyers from taking her frivolous case!!!

Reader Jinx asks if I really thought X Burlesque was "awful." No, "awful" would be Anthony Cools' Ooh-la-la, thankfully deceased, although Cools threatens periodically to bring it back somewhere else (read: Tropicana). However, the only specifics I can remember of X were that it was hosted by the late Pudgy on the night I saw it and that the dancers were some of the most "augmented" I've seen on the Strip. At least Crazy Girls has two or three memorable numbers and a comfier showroom.

"Tired and boring," though, is the perfect description of Crazy Horse Paris. It's a depersonalization of the female form, like getting trapped in a Helmut Newton photo album. I don't think the astrology segment is in there anymore or, if it is, it's become thoroughly forgettable.

Thanks to reader Jeff in OKC for his shout-out to one of the truly great ladies of the silver screen, Stella Stevens. They don't make dames like her anymore (Christina Hendricks of Mad Men excepted) and, for your pleasure, here's the opening of Las Vegas Lady — a festival of vintage Glitter Gulch neon.

Posted in Columbia Sussex, Downtown, Entertainment, Movies, TV | Comments Off on From the mailbag #3

"Viva Elvis"

Yes, Viva Elvis will be the long-awaited, enshrouded-in-secrecy title of the Cirque du Soleil show scheduled to debut this December at CityCenter.* Wow, they must have had to really burn the midnight oil in Montreal to come up with that one … Speaking of name changes, Scarlett and her Seductive Ladies of Magic (at the Riviera) is now Abra-Ca-Sexy. Well, it’s catchier … The wheels continue to fall off the Riviera train: An Evening with Dean and Friends has closed, as has the dinner buffet (again) … Lost in the bankruptcy tumult at the Greek Isles was the opening of a new show. Its cumbersome title is Chinaman: A Rock & Roll Comedy Experience. Moving right along … By the time you read this, Rockstar: The Tribute should have reopened at the Harmon Theater after a disastrously short stint at the Wyrick Entertainment Complex (aka, “the Venue of Death”) in Planet Hollywood. However, the Harmon has given it as much advance publicity as an IRS raid on a Vegas nightclub, so that’s not a promising start … In like manner, Beatles tribute Penny Lane tiptoed into the Tropicana without so much as a ‘by your leave’ … Back at Planet Ho, Tony ‘n Tina’s Wedding evidently isn’t performing up to expectations. Ticket prices have been reduced 13%-30%, although they’re still steep ($63-$143) … It looks like Deutsche Bank is going to wait a spell and open the Cosmopolitan in Sept.-Oct. 2010. Which, given that the Strip’s been strangling on a glut of high-end rooms, is probably the wisest course of action. Wall Street’s former Holy Grail, “another wave of megaresort openings,” has become a phrase to be dreaded.

Ready for some good news? The most remarkable dancer of the late, lamented Sin City Kitties, Koree Kurkowski, is now part of the ensemble of Bite. The show is kitsch to the nth degree but it’s entertaining in its own so-bad-it’s-good fashion. The Stratosphere casino floor was pretty dead for a Friday night last weekend, but Bite was definitely packing them in. It’s not as good as Sin City Bad Girls (at the Las Vegas Hilton) but way better than forgettable X Burlesque (at the Flamingo).

* — the Viva Elvis revelation was let slip during last weekend’s Michael Jackson festival at The Palms. I learned of it after being invited — on 75 minutes’ notice — to co-host an episode of Steve FriessThe Strip Podcast, in which I am teased for being “obsessed” with Carmen Electra. I’ll link to the edited version once it’s available, so you can hear me date myself with a Barbi Benton shout-out.

Posted in Alex Yemenidjian, Cirque du Soleil, CityCenter, Cosmopolitan, Current, Economy, Entertainment, George Maloof, Goldman Sachs, Harrah's, Marketing, MGM Mirage, Planet Hollywood, Riviera, The Strip, Wall Street | Comments Off on "Viva Elvis"

No more "free" play?; Sahara sleaze; Donny & Tina; Criss F. Angel

In a decision that could have wide-ranging implications, Foxwoods Casino Resort and Mohegan Sun have been ordered to count (and pay taxes on) “free play” coupons as though they were revenue. This isn’t a sock-it-to-the-players move like the one the Hawaii Legislature just pulled, taxing any money won at a casino (even if it’s lost right back and then some). However, the ramifications for consumers if free-play coupons are targeted for taxation are discouraging. Play ’em while you’ve got ’em.

That stale “sleeping giant” analogy has been dusted off (and I use that verb advisedly) for some pimpery of the Sahara. On the glass half-full side, classy and romantic dinner spot House of Lords has been revived. It used to be a perfect place to take your Special Someone and hopefully will remain so. It’s just off the main casino floor — the most Moorish-themed part of the Sahara and the best “retro” experience to be had in town. (Almost everything else of newer vintage is bland grind-joint crud that needs to go.)

As for the empty half of the glass, that’d be the news that owner Sam Nazarian continues to go downmarket with a vengeance. Because nothing says “classic Vegas” like a tattoo parlor and a biker convention. Worse still, the tramp-stamp place will be in the otherwise elegant main lobby, with extended weekend tattoo-ing times … since you never know when you want to do something you’ll regret the rest of your life.

This “desert jewel rich with history and nostalgia” will continue that tradition with “a wet wife-beater contest, bikini tricycle races, a bourbon paired beef dinner with leatherwear fashion show, and an all-you-can-eat beer fest BBQ with one lucky rider winning a 2009 Harley Davidson Cross Bones bike.” It’s probably just a matter of time before Nazarian converts the big rear parking lot to a trailer park, too. That’s Sam Nazarian for you: “class” with a capital “K.”

“Tina Sparkle,” flanked by Donny Osmond (evidently still in his pajamas) and Marie, who’s looking damn fine from here.

It’s old news that Donny Osmond is going to be on the next season of Dancing with the Stars, but I hadn’t known he was going to be paired with Aussie Kym Johnson. The latter is known to my Better Half and I as “Tina Sparkle” (it’s a Strictly Ballroom thing), which would make for great DWTS levity next season, except …

… for the soul-crushing news that the gorgeous and talented Cheryl Burke has been twinned with the repulsive (and potentially prison-bound) Tom DeLay, one of “Casino Jack” Abramoff‘s band of Beltway scoundrels. (Was scum-tastic sleazemeister Rod Blagojevich not available?) Bad luck for Cheryl, good news for DeLay because Ms. Burke could be matched with a tree stump and get aforesaid stump into the final three. If she could carry a woodpile like Cristian de la Fuente to the finale, DeLay should be easy lifting. It looks like he’s got the requisite arboreal quality.

Does Criss Angel have compromising photos of high-ranking MGM Mirage executives? The company’s “branding” him now, evidently having convinced itself that Believe is beyond wonderful … and never mind that 11-year-old O regularly outdistances Believe in ticket sales by several country miles. Having sunk $85 million into this Cirque du Soleil turkey, MGM is evidently going to stick with it until the last dancing rabbit is hung.

Posted in Cirque du Soleil, Current, Dining, Entertainment, Harrah's, Illinois, MGM Mirage, Sahara, Taxes, The Strip, Tribal, TV | Comments Off on No more "free" play?; Sahara sleaze; Donny & Tina; Criss F. Angel

The Yung & the heartless

Our good buddies at Columbia Sussex, who still maintain toeholds in the Las Vegas and Lake Tahoe markets, continue to make friends in time-honored fashion. For instance, with dicta like:

“Fire the old lady in sales.” (A more detailed version of the story is here.)

Yup, sounds like the ColSux we know and love. No matter how outstanding Charlotte Thomas‘ performance was, she committed the unspeakable crimes of earning a living wage and, worse still, being old. Now, it’s a well-established fact that ColSux owner and CEO William J. Yung III is no spring chicken himself. I wonder how he’d feel if the bankers who underwrote his multibillion-dollar buying spree in 2006 said, “Fire the old duffer in the executive suite”?

Companies that fire talented people — like a woman of a certain age who doubled sales — just to save a few grand on the bottom line and have some more-nubile faces around the office deserve to fail. And, with that kind of thinking, they inevitably will.

(If nothing else, this saga will give one a renewed appreciation of why Faust, given the choice of sundry temptations, chose to be young again. Bill Yung probably had his name on a “cut sheet.”)

Posted in Columbia Sussex, Current, Ohio | Comments Off on The Yung & the heartless

Stat of the Day

Beloved by critics and bloggers, Encore is proving to be something of a millstone around the neck of Wynn Resorts. Average daily rates at 'Wynncore' are down 39% for the year to date, compared to a "mere" -25% at neighboring archival PalazzoVenetian. Unlike Wynn, however, Las Vegas Sands does not seek to be King of the Price Point.

Wholesale revision of Encore is in the works after only eight months, which if nothing else proves that Steve Wynn is at least tacitly willing to admit that it's time for Plan B. If his nightclub expansion translates into the imminent demise of Switch, tant pis. That gimmick-driven restaurant has been Encore's inarguable flop. Possible loss of the conservatory-like atrium would be a more serious worry: Without it, Encore would become a considerably darker and more claustrophobic casino — as though it weren't having foot-traffic problems already.

Posted in Dining, Economy, Encore, Entertainment, Sheldon Adelson, Steve Wynn, The Strip | Comments Off on Stat of the Day

Electra-fying news bulletin

You asked, MGM Mirage listened. No, they’re not offering free rooms at CityCenter but something much better: a 20-performance return engagement by Carmen Electra, who will put some spice back into Crazy Horse Paris in October. At $75 a seat, that sounds like a good deal to me. Make your travel plans now.

Don’t you wish all news coming out of Vegas was this good?

Posted in CityCenter, Current, Entertainment, MGM Mirage, The Strip | Comments Off on Electra-fying news bulletin

Quote of the Day

“It’s a bit disappointing to see that after months of work they come up with a new strategy which is a bit like the old strategy.” — Fortis Investment Partners fund manager Theo Maas on Aristocrat Leisure, which continues to flounder. The company recently wrote down its stake in fading PokerTek, primary supplier of robo-poker technology.

Posted in Australia, Technology | Comments Off on Quote of the Day

Pinnacle meets karma

Plans by Pinnacle Entertainment to move its President riverboat upriver just hit a big snag. Taking the view that the President’s license is portable, Pinnacle hoped to use either the vessel itself or the license to jimmy open a new market niche along the Mississippi River.

Seems the Missouri Gaming Commission doesn’t hold with Pinnacle’s logic. Move the ship, they say, and it’s open season on that 13th (and last) license in the Show-Me State. Right now, Pinnacle’s keeping the President operational as a charity case — thereby preserving the license — but the Coast Guard is likely to shut her down in 10 months, so decrepit is the vessel.

Not that I wish ill for Pinnacle, one of the classier outfits in the industry, but this here is what’s called “karma.” Both Pinnacle and Ameristar Casinos pushed hard for legislation last year that uncapped the state’s loss limits in return for capping the number of licensees. It was an anti-competitive move that was inveighed against in these pages.

Ameristar and Pinnacle tried to lock up what was an open territory. Now, with the President’s license skittering about the field like a wet football, Pinnacle’s going to find itself having to grapple with the very competitors it thought it had excluded from the game. Which is as it should be.

There can be only one. Two casino proposals from Cordish Gaming and Penn National have been forwarded to the Kansas Lottery Gaming Facility Review Board (Uff da!) for final arbitration, Remember that the last time we went through this, Penn got a whopping zero votes (probably due to a series of peevish public pronouncements), but then Cordish wanted to resubmit its project in smaller form.

This time around, Penn execs have been playing well with others, rather than trying to dictate the process. They’re promising a three-phase, $564 million casino-resort (subject to certain economic conditions). Cordish is choosing to under-promise, committing only to a $390 million casino, at least until bluer skies return. Partnership with the Kansas Speedway still gives Cordish an edge (as does the Hard Rock brand) … but the Kansas-casino process has been long, tortuous and filled with reversals of fortune. (Mike Ensign, anyone?)

Speaking of Kansas … shoo-in Foxwoods has announced that it’s restructuring its debt and enlisting outside assistance, yet another victim of ill-timed expansion. Small wonder Foxwoods and Lakes Entertainment decided to pool their pennies on Chisholm Creek Casino (above) rather than duke it out for the Wichita market.

Compromise is near. Down in Florida, that is. A formula too complicated to summarize here would bring the Seminole Tribe and the Sunshine State’s Lege into agreement. (The Seminoles took one look at the compact fashioned by the Lege last spring and spat it out like bad food.) In return for accepting some restrictions on game offerings at some casinos, the Seminoles get a complete exemption from paying taxes to the state — if private-sector gambling spreads beyond Broward and Miami-Dade counties. And if existing non-tribal casinos get, say, blackjack the Seminoles’ obligation to the state is halved.

So tell me, why does Sheldon Adelson seriously think Florida is a potential growth market?

Posted in Ameristar, Cordish Co., Florida, Kansas, Missouri, Penn National, Pinnacle Entertainment, Regulation, Sheldon Adelson, Tribal | Comments Off on Pinnacle meets karma

Meet the new Trop boss …

 … largely the same as the old boss. Tropicana Entertainment's diligent efforts to get back into the Tropicana Atlantic City have finally paid off. Thus (nearly) ends a prolonged interregnum during which no clearly superior alternativves emerged. Well … there was an extended flirtation with Cordish Gaming but butterfingered trustee Justice Gary Stein fumbled that away.

Since Carl Icahn's stealthy buy-up of TropEnt stock extinguished Columbia Sussex CEO William J. Yung III's ownership rights, the era of Attila the Yung has finally ended. Also, getting Stein out and private ownership back in is a transition that can't happen soon enough.

On the downside, Trop property prexy Mark Giannantonio (a Yung appointee) remains at the helm. Also, TropEnt CEO Scott Butera and his lieutenants did an undistinguished job of running the Tropicana Las Vegas before selling it to Onex Corp. They still have a lot to prove in Atlantic City.

Posted in Atlantic City, Carl Icahn, Columbia Sussex, Cordish Co., Current, Regulation, The Strip, Tropicana Entertainment | Comments Off on Meet the new Trop boss …

Cro-Magnon economics; Packer play?; Harrah's boycotted

Still snowed under with non-S&G commitments, but here’s a brief dispatch. First, with apologies to Woody Allen

“The federal stimulus package is so bad”

“Yes, and such small portions.”

That’s the sum and substance of this diatribe, penned by the old biddies over at the Las Vegas Review-Journal. The federal stimulus dollars which the R-J opposed (as did its man-crush, Gov. Jim Gibbons) aren’t trickling down in sufficient numbers for the editorialists’ liking.

Ergo, 13% unemployment and a housing market that’s “years away” from recovery are things from which Uncle Sam is meant to rescue us. Yes, and never mind that the real culprit is the overreliance of Nevada on a service economy, plus insane overexuberance in the real estate sector — two phenomena for which the R-J has never had a discouraging word.

Mistaking one owl for a winter, R-J Publisher Sherm Frederick goes into full doom-and-gloom mode. His can’t-miss economic barometer? A half-full flight into Las Vegas. (From Austin. On a Tuesday.) I’ve been flying into and out of this city for nigh upon 12 years and many’s the half-full flight I’ve taken into McCarran International Airport. It’s a side effect of Las Vegas being so liberally serviced by the major airlines.

Also, Frederick’s half-baked “analysis” reeks of that local entitlement mentality whereby Americans are obligated to spend their money here — during a recession, no less. (Maybe more of them would do so if we didn’t continue to shift our tax burden onto their shoulders.)

We’ve got to take our lumps with the rest of the country and, as I’ve pointed out several times before, Southern Nevada would be weathering the current doldrums much better had it not been for an insanely euphoric attitude in our business community, with its pie-in-the-sky economic models. Harrah’s Entertainment claims that, in the course of its mega-optimistic LBO, it projected a worst-case scenario in which revenue fell 30% and Harrah’s came through just fine.

I don’t believe it. Either that or Gary Loveman needs to sack his number-crunchers and find some ones who use real math.

Trouble at Cannery. Who knew? Things seemed to be going pretty well for them. But President Tom Lettero has been demoted from chief operating officer to CFO. His vacated portfolio will be taken up by Xavier Walsh, from Crown Ltd. Is minority shareholder James Packer flexing some muscle? Or has Cannery Casino Resorts decided that what works for Crown in Australia might be worth trying in Nevada and Pennsylvania?

Harrah’s attempt to play hardball with its dealer unions has caromed off the company’s noggin. The American Federation of Teachers is pulling its convention business from Harrah’s-owned properties until contract negotiations with the dealers at Bally’s Atlantic City and Caesars A.C. You might say that Caesar’s fine Roman nose has been cut off to spite his face,

A provocative question is posed by Dr. David G. Schwartz. If there are fewer slots and table games on Nevada’s casino floors, does this bode an ongoing decrease in casino revenue? Prof. Schwartz is far better educated than am I in these matters … yet it seems that the proposition boils down to More gaming positions = More revenue.

But how many casinos are running at 100% game usage even a small part of the time? Also, with penny slots yielding higher hold percentages than their nickel and quarter brethren, denominations are trumping sheer numbers. Lord knows, people are drawn to those penny machines as though to a spider web because the (perceived) value overrides the (documented) less-favorable pay tables. In any event, Dr. Schwartz’s in-progress study promises to be one of the most interesting casino-related documents emerging this year.

Posted in Atlantic City, Boulder Strip, International, James Packer, Pennsylvania | Comments Off on Cro-Magnon economics; Packer play?; Harrah's boycotted

Goliath finds a home

Goliath sneaks up on erstwhile housemate Piglet.

After a week of foster parenting, we were able to find a good, loving home for Goliath (although it near to broke our hearts to see him go). His new family is set to spoil him rotten and looked like kids on Christmas morning when they finally saw his bandit-masked face. They'd already bought a "kitty condo" and toys for him, and word is that he's become comfortably ensconced in his new abode in nothing flat. The only adjustment problem may be that Goliath's idea of "playtime" is 2 a.m., something with which mere humans may have difficulty coping.

(According to our blogging software, this is officially the 1,500th S&G posting. Who'da thunk it'd ever go the distance?)

Posted in Animals, Current, Pets | 1 Comment

Frank Fertitta Jr., 1938-2009

There's a nice R-J obituary for the Station Casinos patriarch, although you won't find it in Saturday's online edition, inexplicably. You have to go back and root around in the "Breaking News" box from Friday. (By the time the R-J gets "this Internet thing" figured out, it'll have gone out of business.)

Over at the Sun, investigative reporter Jeff German has penned an even more thorough retrospective, with particular emphasis on the late Frank Fertitta Jr.'s philanthropic activities. Considering how many nastygrams have been appended to the R-J valedictory, one is thankful that the Sun elected to disable "Comments" for its obit.

Posted in Charity, Current, Station Casinos | Comments Off on Frank Fertitta Jr., 1938-2009

Quote of the Day

“I have been pleasantly surprised by the tremendous reservoir of good will that exists in our work force … Considering how previous administrators have neglected the property, neglected the operations and neglected the employees, it was very refreshing to find that despite all that neglect so much pride and passion can be harnessed. And regardless of what happened in the past, I am keenly aware that change can be scary for many of our team members. But change also irrigates the human condition.” — Tropicana Las Vegas CEO Alex Yemenidjian, on the future of the property.

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